NETSOL Technologies Investor Presentation Najeeb Ghauri, Founder, - - PowerPoint PPT Presentation

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NETSOL Technologies Investor Presentation Najeeb Ghauri, Founder, - - PowerPoint PPT Presentation

NASDAQ: NTWK NETSOL Technologies Investor Presentation Najeeb Ghauri, Founder, Chairman & CEO Roger Almond, CFO July 2018 Jeff Bilbrey, President, North America NASDAQ: NTWK Safe Harbor Statement This presentation may contain forward-


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SLIDE 1

NETSOL Technologies

Investor Presentation

July 2018 Najeeb Ghauri, Founder, Chairman & CEO Roger Almond, CFO Jeff Bilbrey, President, North America

NASDAQ: NTWK

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SLIDE 2

Safe Harbor Statement

This presentation may contain forward-looking statements relating to the development of NETSOL Technologies’ products and services and future operating results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe," "expect," "anticipate," "intend," variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. Any forward-looking statements contained herein speak only as of the date hereof. The Company undertakes no obligation to update or review any forward-looking statements. This presentation may reference non-GAAP measures such as EBITDA. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. The Company uses EBITDA as a measure of the Company’s operating

  • trends. Investors are cautioned that EDITDA is not a measure of liquidity or of financial performance under Generally

Accepted Accounting Principles (GAAP). The EDITDA numbers presented may not be comparable to similarly titled measures reported by other companies. EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in the Company’s SEC filings.

NETSOL TECHNOLOGIES 2

NASDAQ: NTWK

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SLIDE 3

Leading ading provider

  • vider of enterprise

terprise software tware solutions utions serving rving the e globa

  • bal

l leasi asing ng and finan nance ce industry dustry

NETSOL TECHNOLOGIES 3

About NETSOL

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SLIDE 4

Overview

Recogni

  • gnized

zed leade ader in in asset et finance nance and leasi asing ng software are

  • Numerous multi-country implementations

Highl ghly competitiv etitive portfol tfolio of

  • f softwar

are solution utions

  • Leading enterprise software platform serving critical business

functions Past R&D conve verting rting to new licens cense e and servi rvices ces reve venue nue

  • Securing large value projects with average deal size increasing
  • Market endorsement by blue-chip multinationals on next-

generation product, NFS Ascent™ Offsho shore re deliver elivery y model el

  • Talented team of offshore experts builds leverage in model

Global Delivery & Support Centers

7

Global Team of Experts

13 1350 50+

Global Client Base

20 200+ 0+

NASDAQ: NTWK

NETSOL TECHNOLOGIES 4

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SLIDE 5

Auto Fi Finance nce & Le Leasi sing ng Bank k & Asset t Fi Finance ce Equipment ent Fi Finance ce

Our Markets

Strong Relationships with 200+ Clients Across Market Verticals

NASDAQ: NTWK

NETSOL TECHNOLOGIES 5

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SLIDE 6

Years in The Americas

40+

Years in Europe

25+

Years in The APAC

20+

Equipment Finance Technology Finance Asset Finance Auto/Captive Finance Big Ticket Finance Wholesale Finance Bank Owned Lending

$200B+

Portfolio Managed Globally

300+

Successful Implementations

200+

Global Clients

25K+

Users Globally

7K+

Connected Interfaces

100%

Project Success Rate

NETSOL TECHNOLOGIES 6

NASDAQ: NTWK

  • Experienced. Proven.
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SLIDE 7

Web Desktop

mPOS mFI mAU mD mAC

Next Generation Enterprise Solution

7

6 NASDAQ: NTWK

NETSOL TECHNOLOGIES

Our Next-Gen Enterprise Software Solution

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SLIDE 8

Wholesale Finance System

WFS

Loan Origination System

LOS

Contract Management System

CMS

NASDAQ: NTWK

NETSOL TECHNOLOGIES 8

  • Automat

mates es and manage ages s the ent ntire re lifecy cycl cle

  • Powerful

ful floor

  • r plannin

nning g tools

  • Dealer

ler & i invent ntor

  • ry financ

ncing ing

  • Suppor

port for asse set & n non-asset sset base sed d financ ncing ng

  • Web and mobile

le-based ased applica ication tion tha hat t ena nables les rapid pid da data ta capt pture re at the point t of sale

  • Intuit

itiv ive user experie ience nce

  • Flexibl

ible workflow flow manage geme ment nt

  • User-de

define fined d financial ncial products ucts

  • Custom
  • mizable

izable scoring ing models ls

  • Automated

ted decision ision-ma making ing

  • Manage

ages s and mainta tain ins s detailed ailed credit dit con

  • ntra

racts ts thr hroug

  • ughou

hout t the heir r lifecy cycle cle

  • Flexibl

ible service ice base sed d archit hitectur ure

  • Busin

iness ss proce cess ss design signer

  • Comprehe

hensiv nsive contr tract ct manage gement nt

  • Global

l standar ndards ds compliance liance

NFS Ascent: End-to-End Solution

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SLIDE 9

Does not represent all deals. Provided for Illustrative purposes.

$100 million NFS AscentTM contract underway $3 million New NFSTM contract in Indonesia $16 million NFS AscentTM contracts in Asia

NASDAQ: NTWK

Expanding Revenue Base

Long ng-te term rm Contracts tracts Crea eate te St Stable ble Ba Base e to Bu Build ild Upon

NETSOL TECHNOLOGIES 9

$4 million New NFSTM contracts in China

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SLIDE 10

▪ Implementing in 12 countries: Upgrading existing NFS to NFS Ascent and expanding into one new country ▪ Maintenance recognized over 10-year period, increasing with each successful implementation ▪ Services and customization work will likely grow; provides for further potential upside in the contract ▪ In Oct. 2017, secured amended contract for ~$9.1 million in additional future rev. on top of original contract value

Strong endorsement ent from m long-standing client

▪ Provides top-tier reference for NFS Ascent platform’s ability to cater to complex regional requirements ▪ Leveraging endorsement to create strong interest from existing and new clients seeking enhanced competitiveness by migrating to next generation solution suite

*$100 million based on license, maintenance and anticipated services to be rendered to each country

$100 Million Ascent Contract

NASDAQ: NTWK

NETSOL TECHNOLOGIES 10

Largest Contract in NETSOL‘s History

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SLIDE 11

Strong Pipeline Across Geographies

✓ Global presence and local expertise to capture future sales opportunities ✓ Robust client track record to drive new business ✓ U.S. market is a significant new growth

  • pportunity

Land & Expand with New and Existing Customers ✓ Wealth of knowledge applied to future roadmap needs and new upgrade paths in emerging markets ✓ Cost arbitrage gained from capitalizing on delivery through a developing nation with cutting edge resource pool Emerging Market & Homegrown System Updates ✓ Continued support on different solution models ensures flexibility in serving different market segments in varying maturity lifecycles ✓ Leasing and financing growth plays important trend Continued Support of NFS, LeaseSoft and LeasePak ✓ Established upgrade pathway for existing clients to NFS Ascent ✓ Current implementations provide strong reference point for new clients ✓ Large multi-country, multi-million dollar

  • pportunities

Next Generation NFS Ascent™ Solution

Multiple Vectors for Growth and Expansion

NASDAQ: NTWK

NETSOL TECHNOLOGIES 11

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SLIDE 12

$20.4 $32.1 $40.9 $32.4 $10.5 $12.6 $13.7 $14.5 $5.4 $6.3 $10.0 $18.5 $36.3M $51.0M $64.6M $65.4M 2014 2015 2016 2017

License Maintenance Service

Annual Revenue Growth

NASDAQ: NTWK

NETSOL TECHNOLOGIES 12

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SLIDE 13

$8.6 $7.6 $8.9 $10.3 $10.6 $3.6 $3.6 $3.6 $3.7 $3.8 $5.7 $3.3 $0.3 $0.4 $2.6 $17.9M $14.5M $12.8M $14.4M $17.0M Q3-17 Q4-17 Q1-18 Q2-18 Q3-18

Service Maintenance License

Quarterly Performance

NASDAQ: NTWK

NETSOL TECHNOLOGIES 13

Revenue nue

$2.0M $0.9M $1.0M $2.1M $4.3M Q3-17 Q4-17 Q1-18 Q2-18 Q3-18

Non-GAA AAP P Adj. EBITDA

▪ Improving quarterly financial performance ▪ Initiated new productivity and cost reduction initiatives in fiscal Q2-17

  • Total savings now at $6.2 million with

an anticipated reduction of more than $7.0 million through fiscal 2018 ▪ Growing non-GAAP adjusted EBITDA, which is a good proxy for cash earnings ▪ Stabilized cost structure can support a significant more amount of revenue without incremental investment

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Key Highlights

NASDAQ: NTWK

NETSOL TECHNOLOGIES 14

✓ Global opportunities for growth ✓ Capital structure that is attractive to investment today ✓ Offshore delivery builds leverage in model ✓ Improving financial outlook ✓ Numerous multi-country implementations with global companies ✓ Average deal size is growing ✓ Favorable industry trends ✓ Attractive valuation relative to peers

Innovation is in our

  • blueprint. ”
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SLIDE 15

Thank You

NETSOL TECHNOLOGIES 15

Corporate Headquarters

23975 Park Sorrento Suite 250 Calabasas, CA 91302, USA

Website

www.netsoltech.com

Investor Relations Liolios Group, Inc. Matt Glover and Tom Colton 949-574-3860 investors@netsoltech.com

NASDAQ: NTWK