Slide 1: Investor Presentation
Investor Presentation December 2024
Slide 2: Safe Harbor Statement
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 actua
Slide 3: NETSOL Technologies
NETSOL TECHNOLOGIES NETSOL Technologies is a global leader in delivering cutting-edge solutions for asset retail, finance, and leasing, empowering automotive and equipment OEMs, as well as financial institutions, across more than 30 countries • Founded in 1996 • IPO’d on the Nasdaq in 1998
Slide 4: Growing Industry
GROWING INDUSTRY $1.47T Global Leasing and Finance Market 2023* 70% The global leasing and finance market is Growth over last decade* broad and expanding with strong growth $3.1T projections* Expected size of Equipment Finance Market by 2032** $9.7% CAGR Expected for the Equipment Finance Market** *
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS • Established leadership positions in APAC and Europe • Longstanding relationships with global industry leaders; sub <5% customer churn • Experiencing strong growth in rapidly developing US digital retail market • Hybrid license and SaaS model increases deal velocity and recurr
Slide 6: Transcend Platform
TRANSCEND PLATFORM The Transcend Platform is an AI-driven unified ecosystem that revolutionizes how assets are sold, financed and leased. Designed to automate and optimize every step - from sales to originations to servicing, Transcend leverages AI and ML to drive predictive insights and smarter dec
Slide 7: Diverse Product Suite
DIVERSE PRODUCT SUITE Revolutionize auto and equipment retail with a • Future-ready technology fully digital, integrated platform that simplifies the entire customer journey. Streamline finance and leasing operations with a comprehensive solution for originations, servicing and wholesale finance. •
Slide 8: North America Expansion Strategy
NORTH AMERICA EXPANSION STRATEGY • Strong pipeline of both licensing and SaaS deals. Transcend Platform is receiving strong demand. • Growing NETSOL brand awareness with tier-1 North American customers. $16M contract with major US automaker announced in July 2024. • Transcend Retail products being i
Slide 9: Three Complementary Revenue Streams
THREE COMPLEMENTARY REVENUE STREAMS Working together to drive predictable results and profitability License Fees SaaS/Recurring Revenue Services Revenue • Historically primary driver of • SaaS based offerings drive • Generated through business revenues consistent, reliable revenue implementation and
Slide 10: Global Presence
GLOBAL PRESENCE APAC Europe North America $9.2M* $2.5M* $2.9M* 63.3% of total 17.1% of total revenues 19.6% of total revenues revenues • Significant market presence • Strong market foothold • Massive growth potential; US is the • Contracts with multiple tier-1 • Contracts with major automotive large
Slide 11: Revenue & Profitability
REVENUE & PROFITABILITY Annual revenue growth as company revitalizes business strategy $64M • FY24 revenue of $61.4 million surpassed the $62M $60M revenue target of $60-$61 million $58M • 48% FY24 gross margin, up from 32% in FY23 $56M $54M • FY24 profitability of $0.06 per share $52M $50M $48M $46
Slide 12: Growth in Recurring Revenue
GROWTH IN RECURRING REVENUE 8.5 8 Sources of Future Revenue Growth 7.5 • Increased investment in digital 7 marketing 6.5 • Investments in AI beginning to monetize 6 • Market and product expansion 5.5 to meet diverse customer needs 5 $ millions Q2' 23 Q3' 23 Q4' 23 Q1' 24 Q2' 24 Q3' 24 Q4' 24 Q1' 25
Slide 13: Strengthened Balance Sheet
STRENGTHENED BALANCE SHEET Cash & Cash Equivalents Working Capital $25M $25,000,000.00 $25M $25,000,000.00 $24M $24,000,000.00 $24M $24,000,000.00 $23M $23,000,000.00 $23M $23,000,000.00 $22M $22,000,000.00 $22M $22,000,000.00 $21M $21,000,000.00 $21M $21,000,000.00 $20M $20,000,000.00 $20M $20,000,
Slide 14: Summary: Strategic Focus for Long-Term Growth
SUMMARY STRATEGIC FOCUS FOR LONG-TERM GROWTH • Expand sales growth via Transcend platform introduction in key markets • Expand leadership position by targeting tier-2 and tier-3 customers in existing markets • Invest in innovation by integrating AI into NETSOL products and business processes to offe
Slide 15: Thank You
Thank You NETSOL Technologies 16000 Ventura Blvd, Suite 770, Encino, CA 91436 +1 818 222 9195 info@netsoltech.com
Slide 16: Appendix
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Slide 17: Improving Financial Results
IMPROVING FINANCIAL RESULTS Consistently Improving Financial Results (in thousands) 1Q25 1Q24 License Fees $1 $1,280 Subscription and Support $8,192 $6,512 Services $6,404 $6,449 Total Net Revenues $14,598 $14,242 Operating Income (loss) $(760) $350 Net Income (loss) $71 $31 Earnings (loss) per shar
Slide 18: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION For the Three Months Ended September 30, 2024 2023 Net Income (loss) attributable to NetSol $ 70,795 $ 30,890 Non-controlling interest 146,914 260,173 Income taxes 229,817 121,895 Depreciation and amortization 365,997 530,786 Interest expense 258,219 276,017 Interest (income)