NIIT Limited · NSE:NIITLTD
NIIT — Q2 FY19 Earnings Presentation
42 slides from NIIT's earnings presentation, November 2018
Slide 1: Investor Presentation November 2018
Investor Presentation November 2018
Slide 2: Agenda
Agenda NIIT: Company Overview • Corporate Learning Group • Skills & Careers Group • School Learning Group Q2 FY19 Results Update Future Direction www.niit.com 2
Slide 3: NIIT: At a Glance
NIIT: AT A GLANCE 3 36 Million Learners Lines of Years of Trained 36 Experience Business in Training GURGAON Headquarters in Gurgaon, India 2611 40 NIITians Countries worldwide www.niit.com
Slide 4: NIIT: Business Structure
NIIT: BUSINESS STRUCTURE CORPORATE LEARNING SKILLS & CAREERS SCHOOL LEARNING GROUP (CLG) GROUP (SNC) GROUP (SLG) Rs. 5,183 Million, 61% Rs. 2,729 Million, 32% Rs. 593 Million, 7% PRODUCTIVITY EMPLOYABILITY ACADEMICS US, Europe India, China India • Managed Training Services • Service Sector Skills •
Slide 5: NIIT: Capital Structure
NIIT: CAPITAL STRUCTURE SHAREHOLDING TOTAL CAPITAL EMPLOYED – RS. 10,014 MILLION Debt 21% Promoters, Public, 41% 32% Net Other Assets, 18% Equity 79% FPI & AIF, Investments*, MF & FI, 12% 54% 16% Fixed Assets, 28% No of Shares: 167 million Capital Employed In Operations– Rs. 3,252 million** www.niit
Slide 6: NIIT: Our Credentials
NIIT: OUR CREDENTIALS 20% higher premiums Technology 20% 1/3 We’ve trained 10M for agents on- enabled over 1/3rd of the IT boarded for a leading 10 M school workforce in Insurance company children India Reduction of learning Skilled over 4 M Trained over 25% expenditures by 25% 4 MN 400K students ov
Slide 7: Awards and Recognition
AWARDS AND RECOGNITION 58 BRANDON 2008 - 2018 TOP 20 COMPANIES HALL AWARDS TOP 20 COMPANIES IN GAMIFICATION, 20 GOLD IN TRAINING CONTENT 20 SILVER OUTSOURCING DEVELOPMENT AND 19 BRONZE IT TRAINING NIIT Nguru RANKED 4TH HIGHEST NIIT received awarded as “Best BEST COMPANY RATED Dataquest ‘Top IT Inter
Slide 8: Business Overview
Business Overview www.niit.com
Slide 9: CLG: Managed Training Services
CLG: MANAGED TRAINING SERVICES CUSTOM CONTENT LEARNING LEARNING AND CURRICULUM DELIVERY ADMINISTRATION DESIGN STRATEGIC LEARNING ADVISORY SOURCING TECHNOLOGY SERVICES 8.75K 500 25 21K 150K 40 2500 130+ Hours of custom programs Full time instructional Localization Services in Hours of custom content
Slide 10: CLG: Marquee Corporate Learning Customers
CLG: MARQUEE CORPORATE LEARNING CUSTOMERS www.niit.com
Slide 11: It's not about training. It's about results.
Running Training Like a Business It’s not about training. It’s about results. 30% 25% 40% 20% 40% NIIT’s application rollout Philips improved global NIIT’s onboarding program 20% increase in average Agents trained by the NIIT training for Shell delivery efficiency by 25% for AON Hewitt has productiv
Slide 12: SNC: Improving Employability in Aspirational Careers
SNC: IMPROVING EMPLOYABILITY IN ASPIRATIONAL CAREERS ASPIRATIONAL » Information Digital Data Science Banking & Management Technology Marketing & Analytics Finance CAREERS Own Partner Inside Online 4 CHANNELS » Brick Brick Campus Channel On Demand E- On Demand Synchronous CR Live Synchronous Learning
Slide 13: Skills & Careers: Our Reach
Skills & Careers: OUR REACH India: International: 196 111 www.niit.com
Slide 14: School Learning: Portfolio and Credentials
SCHOOL LEARNING: PORTFOLIO AND CREDENTIALS 10 Mn + Students 400 k + Teachers 100 k + Nodes 24 k + Hrs of Content NEW 45 k + Instructors 17 k + Schools Cumulative www.niit.com
Slide 15: Grade 10 Examinations
Share of A grade increased from 38% to 46% after nGuru MathLab implementation Impact Study Conducted by Grade 10 Examinations STUDENTS TEACHERS PRINCIPALS % Respondents with positive rating on overall BEFORE AFTER experience with MathLab www.niit.com 15
Slide 16: Q2 FY19 Results Update
Q2 FY19 RESULTS UPDATE www.niit.com
Slide 17: Environment
ENVIRONMENT • Global GDP growth outlook remains robust at 3.7 percent for both 2018 and 2019. However this is 0.2 percentage points lower that previous forecasts reflecting negative effects of trade measures, rising interest rates, geopolitical tensions and rising crude prices • Focus on reforms inc
Slide 18: NIIT: Growth Platforms
NIIT: GROWTH PLATFORMS CORPORATE SKILLS & SCHOOLS 71% 27% 2% LEARNING CAREERS MANAGED TRAINING DIGITAL nGURU SERVICES TRANSFORMATION • 40 global MTS • 1350+ enrolments for • 51 School contracts customers New Career programs • Go forward Focussed • Revenue visibility at • Stackroute delivery for IP l
Slide 19: Q2 FY19: In Perspective
Q2 FY19: IN PERSPECTIVE Overall NIIT • Revenue at INR 2,285 Mn; up 10% YoY; Revenue from Go forward Business up 11% YoY • EBITDA at INR 219 Mn (OM of 10%) up 23% YoY; EBITDA margin up 105 bps YoY • PAT at INR 259 Mn (@ 11%) up 104% YoY; Margin up 526 bps YoY • DSO of 74 days (71 days in Constant cur
Slide 20: Key Financials
KEY FINANCIALS INR Mn Q2 FY19 Q2 FY18 YoY Q1 FY19 QoQ Net Revenue 2,285 2,084 10% 2,143 7% Operating expenses 2,066 1,906 8% 1,953 6% EBITDA 219 178 23% 190 15% EBITDA% 10% 9% 105 bps 9% 73 bps Depreciation 84 104 -19% 93 -10% Net Other Income -53 -55 Rs 2 mn -59 Rs 5 mn Operational PBT 82 18 Rs 63
Slide 21: Business Mix
BUSINESS MIX Q2 FY19 Q2 FY18 Schools Schools Skills & 2% Business Growth Skills & 4% Careers Corporate 28% Careers 27% 35% Skills & Careers -15% Corporate Corporate Schools -45% 61% 71% NIIT 10% Q2 FY19 Q2 FY18 Rest of India Geo Growth Rest of World World India 22% India -22% 8% 7% 31% USA / Europe
Slide 22: Corporate Learning Group
CORPORATE LEARNING GROUP INR Mn Q2 FY19 Q2 FY18 YoY Q1 FY19 QoQ Net Revenues 1,616 1,263 28% 1,506 7% EBITDA 238 196 21% 219 8% EBITDA % 15% 16% -81 bps 15% 15 bps • Revenue at INR 1,616 Mn up 28% YoY • Signed 1 new MTS customer, 3 contract expansions & 1 contract renewal • Selected as the partner o
Slide 23: Skills & Careers Group
Skills & Careers GROUP INR Mn Q2 FY19 Q2 FY18 YoY Q1 FY19 QoQ Net Revenues 617 727 -15% 548 13% EBITDA 10 3 202% -9 203% EBITDA % 2% 0% 112 bps -2% 327 bps • Product mix change and cost rationalization offset impact of operating leverage and cost inflation • StackRoute continues on strong growth mom
Slide 24: School Learning Group
SCHOOL LEARNING GROUP INR Mn Q2 FY19 Q2 FY18 YoY Q1 FY19 QoQ Net Revenues 51 93 -45% 88 -42% EBITDA -28 -21 -32% -20 -41% • Completed execution on all government schools contracts during the quarter. Projects under transition (handover and collections) • Overall revenue impacted due to planned ramp
Slide 25: People
PEOPLE 2,611 2,475 2,489 2,425 2,433 • Headcount up 122 QoQ and up 186 YoY • Includes Eagle headcount from Q4’FY18 • Excludes project retainers Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 www.niit.com
Slide 26: Future Direction
Future Direction www.niit.com
Slide 27: Corporate Learning Group: Future Direction
Corporate Learning Group Future Direction www.niit.com
Slide 28: CLG: Corporate Training Spending
CLG: CORPORATE TRAINING SPENDING Source: Statista.com Bersin By Deloitte, ATD Spending On Training (US) 93.6 Corporate Training Spend 70.6 70.6 Spending on Training 61.8 in USA: $90+ Billion Continues to Grow 55.8 55.4 Global Training Spend: $135Bn+ 2012 2013 2014 2015 2016 2017 Increasing trend tow
Slide 29: CLG: Managed Training Services
CLG: MANAGED TRAINING SERVICES 39 MTS Revenue (Rs Mn*) 4710 Number of MTS Customers 34 31 24 21 28% CAGR 6x in 7 years 14 9 6 852 FY11 FY18 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Increasing Differentiated Revenue Visibility at contribution from competitive $226 Mn from existing MTS positioning cont
Slide 30: CLG: Taking MTS to Next Level of Growth
CLG: TAKING MTS TO NEXT LEVEL OF GROWTH Comprehensive Engagements 3 Domain expertise Accelerate Deal Flow 2 Global delivery capability High Capability and Investments in S&M Service Maturity Productivity Big ticket annuity 1 Contract Expansion with contracts Existing Customers Step up people Improve
Slide 31: CLG: Leveraging Analytics for Creating Customer Value
CLG: LEVERAGING ANALYTICS FOR CREATING CUSTOMER VALUE “I need a one-stop shop to get all my data so that I can make business decisions. My LMS won’t give me this.” Customer Demand NIIT Solution www.niit.com 31
Slide 32: Skills & Careers Group: Future Direction
Skills & Careers Group Future Direction www.niit.com
Slide 33: Digital Transformation: IT Sector
DIGITAL TRANSFORMATION: IT SECTOR Global Technology and Business Services Spend Traditional Tech Global Technology and Business Digital Tech 3% to 4% 4100 Services to Touch USD 4 Trillion by +1400 3550 2025 +30% 80% 35% 60% 2757 -450 to -650 10% -15% -25% 100% 20% Share of Digital Technologies to 15
Slide 34: SNC: Digital Opportunity Landscape
SNC: DIGITAL OPPORTUNITY LANDSCAPE Future is “Digital@Scale” Digital Creators ~400K Digital becoming all pervasive, blurring IT Opportunity industry sector boundaries Market Digital projects more skill intensive than Digital Developers ~4 M people intensive People need continuous reskilling with con
Slide 35: SNC: New Program Portfolio
SNC: NEW PROGRAM PORTFOLIO Expanded Portfolio of Career Programs + JIT Skills for Aspirational Careers Undergraduate / Fresh Graduate Data Science & Analytics Banking Digital Data Accounting Term 1 IT & Finance Mktg Analytics & Analytics Digital Marketing GUIDED PRACTICE Banking Digital Data Account
Slide 36: SNC: Program Design
SNC: PROGRAM DESIGN Project Based Guided Practice, Learning for Business simulations Immediate Practice for knowledge retention and decision making ILT, Perpetual Beta Centralized & plug-play mentoring by components experts www.niit.com Strictly Confidential 36
Slide 37: SNC: Talent Pipeline as a Service
SNC: TALENT PIPELINE AS A SERVICE TPaaS Mandates IT Program Analysts for a top 3 Indian IT Services company Full Stack Developers for a Global Aerospace company • Customer • Sourcing Acquisition Banking Officers for • Training • Relationship B2B a leading Indian Private Bank B2C • Placement Manageme
Slide 38: School Learning Group: Future Direction
School Learning Group Future Direction www.niit.com
Slide 39: SLG: Focus Areas
SLG: FOCUS AREAS Defocussed from Exited capex driven government schools business models in Be a School business private schools Service Private Schools (B2B) Service Govt. No Nationally Dominant Schools (B2B) Player in private schools Large untapped space with opportunity in B2C space comprehensive
Slide 40: SLG: Transformation
SLG: TRANSFORMATION CBSE ICSE 12% ~120K Private Schools 2% IB 0.1% State Assets • High capital intensity Boards • High people 86% In School Service People dependence • Diminished value of IP • Linear, non-scalable IP B2B Business • IP driven Cloud IP Remote Service • Asset light • Technology intensi
Slide 41: SLG: Practice Plus
SLG: PRACTICE PLUS Practice Plus helps educators understand where students are currently in their learning path and what they need to learn next . 1000+ 4.1 Lac Schools Users www.niit.com
Slide 42: You can't spell TRAINING without
You can’t spell TRAINING without www.niit.com www.niit.com