Slide 1: 2Q Fiscal Year 2008 Earnings Conference Call
2Q Fiscal Year 2008 Earnings Conference Call February 13, 2008 Mr. Najeeb U. Ghauri Chairman & Chief Executive Officer Ms. Tina Gilger Chief Financial Officer Maturity Mr. Naeem Ghauri President, Europe & Global Products NASDAQ:NTWK
Slide 2: Safe Harbor Statement
ml ra 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 that could cause
Slide 3: Najeeb U. Ghauri, Chairman & Chief Executive Officer
Najeeb U. Ghauri Chairman & Chief Executive Officer NASDAQ: NTWK www.netsoltek.com
Slide 4: Consolidated Financial Highlights
Consolidated Financial Highlights Fiscal Second Quarter 2008 e Revenues increased 16% to a record $8.4 million ° pei margin increased to 57% versus 50% in the prior year perio e Operating income increased to $1.4 million versus $377 thousand a year ago ¢ GAAP net income increased to a $1.1 million,
Slide 5: NetSol Asia Pacific
NetSol Asia Pacific LeaseSoft ¢ LeaseSoft product won the Asia Pacific ICT Alliance’s award for ‘Best Financial Industry Application for 2007 ¢ Strong LeaseSoft new business pipeline IT Services ¢ Best Export Performance Award for 2006-2007 recognizing the highest export of IT Services from Pakistan
Slide 6: NetSol EMEA
a NetSol EMEA netsol Highlights e New management and sales teams in place and focusing significant resources toward pipeline development across the UK and European region e NetSol EMEA and NetSol APAC align commercial and operational approach to joint ventures such as auto finance implementations ¢
Slide 7: NetSol North America
NetSol North America Highlights NetSol joins Software Magazine's “Software 500” ranking as one of the world's largest software and service providers. — NetSol joins the Software 500 list for the first time this year with a rank of #340 worldwide. NetSol named to Deloitte and Touche’s prestigious Tec
Slide 8: Financial Overview
NASDAQ: NTWK Financial Overview Tina Gilger Chief Financial Officer www.netsoltek.com
Slide 9: Strong Annual Revenue Growth
i | Strong Annual Revenue Growth 29.3 @ 17.1 2 = wn no 2 Fiscal Fiscal Fiscal Fiscal Fiscal 6 Month 2003 2004 2005 2006 2007 YTD NASDAQ: NTWK www.netsoltek.com 9
Slide 10: Revenue
Revenue For the Three Months Ended December 31 2007 2006 % Change License Fees 2,866,807 2,718,795 4p 5.4% Maintenance Fees 1,490,376 1,359,239 fF 9.6% Services 4,049,287 3,149,087 28.6% Total Revenues 8,406,470 7,227,121 @ 163% NASDAQ: NTWK www.netsoltek.com 10
Slide 11: Revenue by business
=. “| re .,| Revenue by business Fiscal Second Quarter 2008 TT Consulting License Fees Services 34% 48% Maintenance Fees 18% NASDAQ: NTWK www.netsoltek.com 1
Slide 12: Quarterly trend chart
4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008
Slide 13: Gross margin quarterly trend
57% 4Q 1Q2 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008
Slide 14: Operating Expenses
Operating Expenses For the Three Months Ended December 31 2007 2006 Change Selling and marketing 1,086,729 762,290 43% Depreciation & amortization 479,904 456,529 5% Bad debt expense 838 51,690 98% Salaries and wages 815,771 1,000,835 -18% Professional services (including non-cash compensation) 129,
Slide 15: GAAP Earnings/Loss Per Diluted Share
GAAP Earnings/Loss Per Diluted Share $0.04 $0.05 4 $0.00 ($0.05) ($0.10)- I ($0.15)4 é Impact of non-cash charges ($0.20) + related to the acquisition of =e McCue Systems in North ($0.25)4 America ($0.30) 4Q 1Q2 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 NASDAQ
Slide 16: EBITDA Per Diluted Share
EBITDA Per Diluted Share $0.14 $0.12 + $0.10 + $0.08 + $0.06 + $0.04 + $0.02 + i ll 0 i ar — $0.07 ($0.02)4 ($0.04)4 ($0.06) 4Q 1Q2 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 * Excluding the impact of non-cash charges related to the acquisition of McCue Systems
Slide 17: Consolidated Balance Sheet Highlights
Consolidated Balance Sheet Highlights For the Three Months Ended December 31 2007 2006 % Change ——————————————————————————————————————————————————————— Cash and cash equivalents 8,543,109 2,707,147 215.6% Accounts receivable 7,787,339 8,305,346 6.2% (net of allowance for doubtful accounts) Revenues
Slide 18: Financial Outlook
LS vs Financial Outlook Management Financial Objectives: e 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 . o0 year 2008 diluted earnings per share within the
Slide 19: Questions & Answers
Questions & Answers Najeeb U. Ghauri - Chairman & Chief Executive Officer Tina Gilger - Chief Financial Officer Naeem Ghauri - President, Europe & Global Products NASDAQ: NTWK www.netsoltek.com 19
Slide 20: NetSol Technologies, Inc. - Thank you
NetSol Technologies, Inc. (NASDAQ CM: NTWK) Thank you To learn more about NetSol Technologies, Inc., CMMIO Visit www.netsoltek.com aturity NASDAQ:NTWK