Niit Limited · NSE:NIITLTD
Niit — Investor Presentation (May 2018)
44 slides from Niit's investor presentation, May 2018
Slide 1: Investor Presentation May 2018
Investor Presentation May 2018
Slide 2: Agenda
Agenda NIIT: Company Overview • Corporate Learning Group • Skills & Careers Group • School Learning Group FY18 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 2475 40 NIITians Countries worldwide www.niit.com
Slide 4: NIIT: Business Structure
NIIT: BUSINESS STRUCTURE CORPORATE LEARNING SKILLS AND 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. 9,044 MILLION Debt 17% Public Promoters 38% 32% Net Other Assets, Equity 15% 83% Fixed FPI MF & FI Investmen Assets, 19% 11% ts*, 58% 27% No of Shares: 166.6 million Capital Employed In Operations– Rs. 2,491 million** www.niit.com *NI
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 and Careers: Our Reach
SKILLS AND CAREERS: OUR REACH India: China: ROW: 227 40 75 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: FY18 Results Update
FY18 RESULTS UPDATE www.niit.com
Slide 17: Environment
ENVIRONMENT • The global economic upswing has become broader and stronger. With financial conditions still supportive, global growth is expected to improve to 3.9 percent rate in both 2018 and 2019. Advanced economies will grow faster than potential over the next two years. However risks are also in
Slide 18: NIIT: Growth Platforms
NIIT: GROWTH PLATFORMS 61% CORPORATE SCHOOLS 32% SKILLS & 7% LEARNING CAREERS MANAGED TRAINING DIGITAL nGURU SERVICES TRANSFORMATION • 39 global MTS • DigiNxt courses added • 317 School contracts customers 1,800+ enrolments vs 392 in Q4 FY17 • Revenue visibility at • Beyond IT contributes • Go forwa
Slide 19: Transition to Ind-AS
TRANSITION TO IND-AS CONCEPTS IMPACT AREAS • Retrospective application of all the standards • Recognition of Revenue basis fair value for unless exempted multiple deliverables • Concept of Substance over Legal form of the • Strategic Sourcing Revenue is recognized on Net arrangement basis • Certain
Slide 20: Q4 FY18: In Perspective
Q4 FY18: IN PERSPECTIVE Overall NIIT • Revenue at INR 2,228 Mn; up 6% YoY; Constant currency Revenue from Go forward Business up 10% YoY • EBITDA at INR 221 Mn (OM of 10%) up 22% YoY; EBITDA margin up 130 bps YoY • PAT at INR 197 Mn in Q4 FY18 vs INR 250 Mn in Q4 FY17 • Continued control on Capex &
Slide 21: FY18: In Perspective
FY18: IN PERSPECTIVE Overall NIIT • Revenue at INR 8,505 Mn; up 1% YoY; Constant currency Revenue from Go forward Business up 6% YoY • EBITDA at INR 746 Mn (OM of 9%) up 11% YoY; EBITDA margin up 80 bps YoY • PAT at INR 625 Mn in FY18 vs INR 409 Mn in FY17; up 53% YoY • Operational ROCE @ 13.9% up 4
Slide 22: Key Financials
KEY FINANCIALS INR Mn Q4 FY18 Q4 FY17 YoY Q3 FY18 QoQ FY'18 FY'17 YoY System wide Revenue 3,151 4,011 -21% 3,405 -7% 13,511 14,213 -5% Net Revenue 2,228 2,094 6% 2,094 6% 8,505 8,452 1% Operating expenses 2,007 1,913 5% 1,910 5% 7,759 7,777 0% EBITDA 221 181 22% 184 20% 746 674 11% EBITDA% 10% 9% 13
Slide 23: Business Mix
BUSINESS MIX Q4 FY18 Q4 FY17 Schools Online Business Growth Schools 8% 1% Corporate 28% 13% Skills & Careers Skills & Careers -16% Skills & Corporate 26% Schools -33% Careers 54% Online 378% 33% Corporate 65% NIIT 6% FY18 FY17 Business Growth Online Schools Online Schools Corporate 14% 0% 7% 1% 10%
Slide 24: Corporate Learning Group
CORPORATE LEARNING GROUP INR Mn Q4 FY18 Q4 FY17 YoY Q3 FY18 QoQ FY'18 FY'17 YoY Net Revenues 1,451 1,134 28% 1,294 12% 5,183 4,534 14% EBITDA 196 153 28% 198 -1% 761 644 18% EBITDA % 14% 13% 5 bps 15% -176 bps 15% 14% 47 bps Q4FY18 • Revenue at INR 1,451 Mn up 28% YoY (up 27% in Constant Currency) •
Slide 25: Skills and Careers Group
SKILLS AND CAREERS GROUP Rs. Mn Q4 FY18 Q4 FY17 YoY Q3 FY18 QoQ FY'18 FY'17 YoY Net Revenues 584 694 -16% 691 -16% 2,669 3,045 -12% EBITDA -3 24 -28 mn 18 -21 mn 36 46 -22% EBITDA % -1% 4% -411 bps 3% -316 bps 1% 2% -16 bps Q4 FY18 • Q4 a relatively weak quarter for SNC; Revenue at INR 584 Mn; • Ind
Slide 26: School Learning Group
SCHOOL LEARNING GROUP INR Mn Q4 FY18 Q4 FY17 YoY Q3 FY18 QoQ FY'18 FY'17 YoY Net Revenues 176 262 -33% 92 90% 593 867 -32% EBITDA 40 32 22% -21 60 mn 15 54 -72% EBITDA % 23% 12% 1015 bps -22% 4482 bps 3% 6% -372 bps Q4 FY18 • Overall revenue impacted due to planned ramp down of government school pro
Slide 27: People
PEOPLE 2,475 2,425 2,433 • Headcount up 8 QoQ and 2,342 down 10 YoY • Includes Eagle headcount 2,262 from Q4’FY18 • Excludes project retainers Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 www.niit.com
Slide 28: Future Direction
Future Direction www.niit.com
Slide 29: Corporate Learning Group: Future Direction
Corporate Learning Group Future Direction www.niit.com
Slide 30: CLG: Corporate Training Spending
CLG: CORPORATE TRAINING SPENDING Source: Bersin By Deloitte, ATD 15% 12% Corporate Training Spend Spending Growth 10% 10% Spending on Training 6% 6% in USA: $90+ Billion Global Training Spend: Continues to Grow 2% $135Bn+ -11% -11% Increasing trend 2007 2008 2009 2010 2011 2012 2013 2014 2015 toward
Slide 31: 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 $218 Mn from existing MTS positioning cont
Slide 32: 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 33: 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 33
Slide 34: Skills and Careers Group: Future Direction
Skills and Careers Group Future Direction www.niit.com
Slide 35: 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 36: 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 37: 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 38: 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 38
Slide 39: 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 40: School Learning Group: Future Direction
School Learning Group Future Direction www.niit.com
Slide 41: 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 42: 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 43: 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 . 600+ 190K Schools Users www.niit.com
Slide 44: You can't spell TRAINING without
You can’t spell TRAINING without www.niit.com www.niit.com