Slide 1: Year-End Conference Call
NetSo| | Year-End Conference Call September 12, 2014
Slide 2: Safe Harbor Statement
=. x “i Safe Harbor Statement im netsal as EBITDA. i i taxe: The Company uses The words "believe," "expect," "anticipate," "intend, nerally atic imil i ntify The EDITDA but their ies. EBITDA, hould not bs . Investors are advised uncertainti ict. pred ptan i i herein speak only as of the date hereof.
Slide 3: Fiscal 2014 Results: Agenda
4 Fiscal 2014 Results: Agenda Fiscal 2014 Highlights Building an Engine of Growth NFS Update on Recent C NFS Mobility Overview Financial Review Pipeline Discussion
Slide 4: FY 2014 Highlights
SP vepae P| FY 2014 Highlights ne ° Ayear y eh : at if 1 growth p ig top ¢ Launched NFS Ascent ™ and NFS Mobility ™ v NFSA Li Ni Leasing (Thailand) for nearly a year y car manufacturer fi i i i ility’ network in China D I 1 deli ngin vi dp | 1 keting worldwide v Increased tect | I v Decreased turnov
Slide 5: NFS Ascent: Next Generation Platform for the Asset Finance Industry
ENGINEERED FOR T NEXT GENERATION PLATFORM FOR THE ASSET FI that_meets ustomization ts equir Ascent a aa local e 3 in mul m
Slide 6: Automating the Entire Lease and Finance Cycle
= Automating the Entire Lease and NEWS lAscent ;. Finance Cycle companies . iit deployabl 4 Jenth together . rapid gacy engines ; manage risks v Automate tasks © Business Process Designer v Reengineer business processes fo opp © Dynamic Workflow Manager oO ‘www.NetSoltech.com
Slide 7: A Solutions-Based Model
A Solutions-Based Model NMS More than ue of je + $16 Million NFS Ascent Contract v fi es Value D operations cimeten & le A folio of ly PT contract: * Scheduled to be completed within th i Y First of heduled li Feb 45 , n h $10 million in revenues Five-year hip, includii Fitts 1m Mai e Customization
Slide 8: Enterprise Mobility Solutions
Enterprise Mobility Solutions Collections Field Investigator mAccount
Slide 9: Reshaping Business Models, Empowering Workers, Improving Collaboration
NAGS Reshaping Business Models, Empowering aaa Workers, Improving Collaboration mAccount Point of Sale Field Investigator gm Collections ‘www.NetSoltech.com
Slide 10: NFS mPOS Contract Update
NGS mPOS Contract Update @ town casts : (gt) Collaboration & Organization ” Point of Sale of Sale application simplifies the npr oF fi (Gewsaions ate ©) Offine Mode i manufacturer and y dealer network in China f lreckind process using a mobile device ‘www.NetSoltech.com
Slide 11: Investing in Future Growth
Investing in Future Growth
Slide 12: Building Our Talent Pool
: yg Building Our Talent Pool Technical 100 . ae Accounting 00 General and Admin 700 500: Customer Support ~ Sales 00 300 1m Management 200 100 ° 2012 2013 208 ‘www.NetSoltech.com
Slide 13: Building a State-of-the-Art Tech Campus
_ aa Building a State-of-the-Art Tech campus} | * Lahore Technology Campus computer covered area nail alle 90,000 a uare feet — Two floo: complet chnical staff to support growth “bjectives * Improved IT employee turnover from Imost 20% i I A ‘www.NetSoltech.com
Slide 14: Focusing on the Core Business
S. : : P| Focusing on the Core Business * Sold Vroozi subsidiary v Recorded profit on sale v¥ Agreement includes earn out provision pI! v Impacted depreciation and amortization in the quarter ‘www.NetSoltech.com
Slide 15: Financials
Financials Roger Almond, CFO
Slide 16: FY 2014 Financial Summary
=. aa FY 2014 Financial Summary im the same period last year, lecti Jecline il lie | | Marked b Jod of sienifi ‘ fae b f less license revenue VY Hiring of employees Y Higher One-time charges Sd oti nl joati 4 ab ) It of alignment towards NFS Ascent + Improved collections ‘www.NetSoltech.com 16
Slide 17: Recurring Revenue Base
netsal In§ Millions 2 10 8 4 2 2010 ‘www.NetSoltech.com Total Maintenance Revenue 2011 2012 2013 =. aa Recurring Revenue Base 10.5 95 7:86, 7.87 i : 2014 new customers representing approximately during fiscal year . ith prod during the latter stages of fiscal year i iscal until we are able to licens
Slide 18: Service Revenue
=. aa Service Revenue netsol Total Service Revenue In$ Millions 25 and services provided to new customers as part of the 15 implementation process Also comprised of request 0 / IF i current systems 5 “th decline in Ii the 5 ¢ : fran j 2010 2011 2012 new systems declined ‘www.NetSoltech.com iis i 18
Slide 19: Service Revenue Mix
=. aa Service Revenue Mix FY13 Service Revenue Mix 20% 80% Mimplementaton ml Enhancements, FY14 Service Revenue Mix mi implementaton m Enhancements ‘www.NetSoltech.com ir businesses grow
Slide 20: Investing in Growth
SP se ad Investing in Growth Cost of Revenue: Higher decrease turnover Operating Expenses: demos hires and new business activities ‘www.NetSoltech.com 20
Slide 21: FY 2014 Q4 One-Time Items
S. . aa FY 2014 Q4 One-Time Items One-Time Charges: Bad debt $1.0 Million dl $1.4 Million Loss on disposal of assets $230,000 Share of loss from Atheeb $545,000 ¥ A } had Hh } One-Time Gain: Sale Vroozi $1.9 Million v Eliminated ongoing cash costs ‘www.NetSoltech.com
Slide 22: EBITDA
ra EBITDA netsol ‘Three Months ded Three Months $. $ (7,216,091) 3,148,200 $ (11,356,047) $ 7,863,143 Income Taxes 16,453 443,309 38,28 465,426 Depreciation and amortization 3,861,554 1,454,079 8,730,736 5,221,504 Interest expense 85,407 76,090 255,677 663,967 Interest (income) (74,325) (43,541) (26
Slide 23: Capital Resources
_ ial . P| Capital Resources an $16 2 S14 * Strong cash balance $12 $10 * Highlighted by improved $8 collections $6 a * Manage resources to provide runway to execute 2 growth initiatives 2010 2011 2012 2013 2014 ‘www.NetSoltech.com
Slide 24: Growing NetSol
Growing NetSol
Slide 25: New Business Pipeline
NS New Business Pipeline geting regi opportunity Y Chi j y Highe v cohaultine playing a larger role trend NFS conversions fv . client: running NFS « Upgrades from home-grown legacy systems in = S established markets . New Implementation ‘www.NetSoltech.com
Slide 26: Building References
Ascent NMS Nissan Toyota Large Japanese Bank ‘www.NetSoltech.com Building References ith NFS almost a year referred Vendor f the 7 they do finance business 1 by Q1 2015. ith first ‘i developed over 10 years of business partnership
Slide 27: Key Takeaways
| Key Takeaways \ netsal
Slide 28: Thank You
Thank You