Slide 1: 3Q Fiscal Year 2008 Earnings Conference Call
NetSol Technologies 3Q Fiscal Year 2008 Earnings Conference Gall May 13, 2008
Slide 2: Safe Harbor Statement
NetSol Technologies Safe Harbor Statement This presentation may contain forward-looking statements relating to the development of NetSol Technologies’ products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties th
Slide 3: Najeeb U. Ghauri, Chairman & Chief Executive Officer
NetSol Technologies Najeeb U. Ghauri Chairman & Chief Executive Officer
Slide 4: Consolidated Financial Highlights
NetSol Technologies Consolidated Financial Highlights Fiscal Third Quarter 2008 + Revenues increased 19% to a record $9.1 million + Gross margin increased to 56% versus 48% in the prior year period * Operating income increased 245% to $1.8 million versus $511 thousand a year ago ¢ GAAP net income in
Slide 5: BestShoring delivers BestSolution
NetSol Technologies BestShoring delivers BestSolution™ * Bestshoring is the evolution of our global business services * BestShoring yields an improved return on investment through globally sourced domain experience as well as localized support to customers * Supported by our global delivery platform
Slide 6: North America
NetSol Technologies NetSol North America « Investing in key North American sales and marketing assets as well as infrastructure to strength and expand North American customer penetration leveraging our BestShoring strategy * Greg Brinton appointed to head of sales * Morgan Rees appointed to senior v
Slide 7: Select Operational Highlights
NetSol Technologies Select Operational Highlights + Won a contract valued at approximately $1.5 million with one of the largest leasing companies in the Middle East + Sold a new LeaseSoft license in China to a major European auto manufacturer, maintaining robust momentum in the Chinese market + Awar
Slide 8: Tina Gilger, Chief Financial Officer
NetSol Technologies Tina Gilger Chief Financial Officer (© 2008 Nero Technologies, Inc. Al rights reserved
Slide 9: Strong Annual Revenue Growth
NetSol Technologies Strong Annual Revenue Growth 29.3 AN US$ Millions Fiscal Fiscal Fiscal Fiscal Fiscal 9 Month YTD 2003 2004 2005 2006 2007 (© 2008 Nero Technologies, Inc. Al rights reserved
Slide 10: Revenue
NetSol Technologies Revenue For the Three Months Ended March 31 2008 2007 % Change Services 4,585,292 3,725,784 fp 23.1% License Fees 2,998,867 2,554,289 JP 17.4% Maintenance Fees 4,482,654 4,335,893 “BP 11.0% Total Revenues 9,066,813 7,615,966 QP 19.1% (© 2008 Nero Technologies, Inc. Al rights rese
Slide 11: Revenue by business
NetSol Technologies Revenue by business Fiscal Third Quarter 2008 License Fees 33% Maintenance Fees 16% (© 2008 NetSol Technologies, Inc.All rights reserved
Slide 12: Quarterly Revenue
NetSol Technologies Quarterly Revenue 10.00 + 9.1 9.00 US$ Millions 4Q 1Q2 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 hain: (© 2008 NetSot Technologies Ine. All rights reserved 42
Slide 13: Gross Margin
NetSol Technologies Gross Margin 70% + 56% 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 hain: (© 2008 NetSot Technologies Ine. All rights reserved 13
Slide 14: Operating Expenses
NetSol Technologies ; Operating Expenses For the Three Months Ended March 31 2008 2007 Change Selling and marketing 898,686 825,856 9% Depreciation & amortization 477,630 483,801 1% Bad debt expense - (231) — -100% Salaries and wages 1,034,784 915,481 13% Professional services (including non-cash co
Slide 15: GAAP Earnings/Loss Per Diluted Share
NetSal Technologies $0.15 5 $0.10 + $0.05 + $0.00 ($0.05) 4 ($0.10) 4 ($0.15) ($0.20) 4 ($0.25) ($0.30) GAAP Earnings/Loss Per Diluted Share $0.09 / 8s Impact of non-cash charges related to the acquisition of [j]| McCue Systems in North America 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2005 2006 2006 2006
Slide 16: EBITDA Per Diluted Share
NetSol Technologies EBITDA Per Diluted Share $0.16 5 $0.13 $0.14 4 $0.12 $0.10 + $0.08 + $0.06 + $0.04 + $0.02 + a | $0.00 T T T i T T T T T ($0.02) ($0.04) ($0.06) 4Q 1Q2 2Q 3Q 4Q 1Q 2Q 3Q2 4Q 1Q 2Q 3Q 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 * Excluding the impact of non-cash ch
Slide 17: Financial Outlook
NetSol Technologies Financial Outlook Management Financial Objectives: Organic annual revenue growth of 25 percent to 30 percent for fiscal year 2008, ending June 30, 2008 Quarterly gross margin within the target range of high 50 percent to 60 percent range Fiscal year 2008 diluted earnings per shar
Slide 18: Questions & Answers
NetSol Technologies BestShoring delivers BestSolution™ Questions & Answers Najeeb U. Ghauri - Chairman & CEO Tina Gilger - CFO Naeem Ghauri - President, Europe & Global Products Mitch Van Wye - COO, NetSol North America
Slide 19: Thank You
NetSol Technologies Thank You To learn more about NetSol Technologies, Inc., Visit www.netsoltek.com CMMI Maturity ihe) (NASDAQ CM: NTWK) (© 2008 Nero Technologies, Inc. Al rights reserved Page 19