NIIT Limited · NSE:NIITLTD
NIIT — Investor Presentation (February 2010)
28 slides from NIIT's investor presentation, February 2010
Slide 1: Education, Employability, Productivity - February 2010
Education, Employability, Productivity February, 2010 1 Contents • Education, Employability, Productivity - The Challenge • Company Overview • Business Segments – Individual Learning Solutions – School Learning Solutions – Corporate Learning Solutions • Financial Performance • Future Direction • New
Slide 2: India's Demographic Advantage; The Global Talent Shortage
India’s Demographic Advantage: Global Workforce 2020 56 million shortage in the World 46 Million surplus in India Note: Potential surplus is calculated keeping the ratio of working population (age group 15-59) to total population constant. Source: US Census Bureau; BCG analysis Considerable investme
Slide 3: India: Skill Supply Chain
India: Skill Supply Chain Less than 5% of labor force has formal vocational training India Education Spend: Rs. 2.7 Tn (5x) allocated in 11th 5 year plan Source: I Watch Survey, 2007 Issues of relevance, reach, inclusion and quality 5 Education, Employability, Productivity “Growth will get choked ou
Slide 4: NIIT in this environment
NIIT in this environment Has successfully transitioned from an IT training company to a Global Talent Development Corporation One of the largest providers of vocational and professional skills worldwide across various service sectors. Acknowledged market leader in India One of the largest provid
Slide 5: Company Overview: A historical perspective
Company Overview 9 NIIT: A historical perspective CLS Training and IT Services Global Talent business Development Key Company SLS Competencies CAGR >50% + Developed: - Pedagogy ILS - Management of distributed delivery process, Acquisition of EK - Partnerships Launch of IFBI Pioneered & Imperia Franc
Slide 6: Leadership in Global Talent Development
Leadership in Global Talent Development Global Opportunity Set Globalization Demographics Services Led Economy Ageing Work Multi-Sector Population Mobility Growth Potential Personality Individuals Corporates Skills Knowledge Schools Multiple Government Delivery Distributed Formats Global Skills Deli
Slide 7: Market Opportunity and NIIT's Positioning
Market Opportunity and NIIT’s Positioning Segment Market NIIT • 80% of 11m in colleges need training NIIT is the one of the for employment largest professional Individuals $20Bn • Low penetration levels; only 5% of skills development * labor force has at least one certifiable companies in the world
Slide 8: Individual Learning Solutions
Individual Learning Solutions • IT Training • Finance, Banking, Insurance Training (IFBI) • Executive Management Education (Imperia) • BPO, KPO Training (Uniqua) • English Language and Professional Life Skills Development 15 India Employability Training Opportunity Total Working Professionals 16.3m
Slide 9: IT Training
ILS: Demand for Trained Professionals IT-ITES Industry Outlook Public sector banks on recruitment spree PSU banks to hire 30,000 in 2009-10. 4.0 Mn 2.5 Mn 120 2.23 Mn 47 57 FY09 FY11E FY16E Nasscom % employable Growing employable population Qualified Engineers & IT 25% Grads Continuing employabi
Slide 10: ILS-IT: Our reach and partnerships
ILS-IT: Our reach • India : 502 Centers • China: 192 Centers • ROW: 159 Centers 19 ILS-IT: Partnership with Leaders Pillars of Information Technology OPERATING SYSTEMS NETWORKS INFORMATION APPLICATIONS DATABASES STORAGE 20 10
Slide 11: ILS Financial Services Training and Uniqua
ILS – Financial Services and Management Training (FMT) Logos used are trademarks of respective organizations • 20 Centers Partnership with leaders in the industry 21 ILS - Uniqua The latest addition to NIIT‟s offerings • Joint venture between Genpact & NIIT • Operating under the brand name „NIIT Uni
Slide 12: English & Professional Life Skills
English & Professional Life Skills • Market potential – A huge untapped market In India – 11 mn college students • 90% face an “employability gap” • Main reason – Lack of English communication & Professional life skills • Solution – Work with employers to a common acceptable standard – Get potential
Slide 13: Schools: Opportunity Space
Schools: Opportunity Space • Teachers Training - 10 million Teachers • Vocational Education -24x7is an emerging area 3,000 schools Collaboration Portal ERP Math LAB & Science LAB 100,000 schools IT Education Class Room 1 Mn schools 25 SLS: Next 3 years addressable market Sarv Shiksha Abhiyan 600 dis
Slide 14: NIIT SLS reach and eGuru solutions portfolio
NIIT:SLS 8,779,313Students 336,830Teachers 91,394 Nodes 21,461 Hrs of Content 18,125Instructors 14,837 Schools NIIT has the widest reach in the market 27 NIIT eGuru solutions portfolio Interactive Class Room Math Lab Science Lab Quick School (ERP) Web & Multimedia curriculum Shared computing Widest
Slide 15: End-to-End Solution for Schools
21,000+ hours of Content School Mind Champions Academy covering Science, Math, Infra ERP & Digital Arts festival Consultancy Social Studies, English & IT Collaboration FOR Teacher SCHOOLS Development Assessment Solution Lab Staff FOR FOR Geography Solution TEACHERS Lab STUDENTS Class Language Soluti
Slide 16: Corporate Training Market; Our Credentials
Corporate Training Market US Corporate Training Spend CAGR 2% 59 56 Training spend breakup 56 51 51 51 $Bn 2003 2004 2005 2006 2007 2008 Global Training Outsourcing Market 2008 APAC $0.5Bn EMEA $1.4Bn America Global training spend $100Bn+ $3.2Bn * Source: IDC, Bersin & Associates Strong potential fo
Slide 17: Corporate Learning Solutions
Corporate Learning Solutions • 3500+ titles; SAAS model Learning • 3Mn+ learners on Khub Invest • Largest print & eLearning library - High growth Products • Virtual labs now available „in a box‟ - High margin (SAAS) • Field sales force doubled in North America - # 2 position • Partnership with resel
Slide 18: Financial Performance: Current Environment
Financial Performance 35 Current Environment Following a stronger 2nd half of FY‟10, the India GDP growth estimated to be strong at 7.5% to 8.0% next year. Robust Labor market forecast in India with a Net Employment Outlook of +39%, for Q4 FY10 (Up 11% QoQ, and +18% YoY) (Manpower-India) Hirin
Slide 19: 9M'FY10: Consolidated Financials and Results Highlights
9M’FY10: Consolidated Financials 9M'10 9M'09 YoY FY'09 YoY System Wide Revenues 13,209 12,241 8% 16,893 21% Net Revenues 9,045 8,478 7% 11,486 14% Operating Expenses 7,951 7,656 4% 10,300 14% EBITDA 1,094 822 33% 1,186 15% OM 12% 10% 239 bps 10% 4 bps Depreciation 556 456 22% 647 22% Other Income (2
Slide 20: 9M'FY10: Business Highlights and Awards
9M’FY10: Business Highlights • ILS: Strong growth in IMS enrollments 57%. Placements continue to be strong at 29%. Initiated ERP training • SLS: 2711 new schools added including Gujarat order for 1,870 schools and 229 private schools. Improved funnel in private schools; Successful implementation of
Slide 21: Business Mix; ILS-IT Highlights
Business Mix 9M'09 System Wide Revenues 9M'10 ILS - New SLS ILS - New Biz Biz SLS 8% Growth 13% 3% 2% CLS CLS ILS – IT 9% 30% 35% SLS 78% CLS -6% ILS -New Biz -21% ILS - IT 54% ILS - IT 55% EBITDA – Up 33% SLS CLS 10% SLS 16% 18% CLS Growth 24% ILS - IT 12% SLS 65% CLS 531 bps ILS – New Biz (102 Mn)
Slide 22: SLS and CLS Highlights
Rs. Mn 9M'10 9M'09 YoY FY09 YoY Net Revenues 1,679 942 78% 1,383 37% EBITDA 222 134 65% 214 63% EBITDA % 13% 14% -103 bps 15% 246 bps • GSA contributes 80% of revenue- up 98%; non GSA up 27% YOY • Order Intake: Rs.1,909 Mn • Schools added: 2711 (including 229 private schools) • E-guru solutions gain
Slide 23: ILS New Business Highlights; Future Direction
ILS- New Business: Highlights Rs. Mn 9M'10 9M'09 YoY FY09 YoY Net Revenues 204 284 (28%) 334 9% EBITDA (129) (27) - (75) - EBITDA % (63%) (10%) - (23%) - IFBI • Continued addition to Placement partners for IFBI including Religare Financial Services and HDFC Standard Life Insurance, ING Life, Tata AI
Slide 24: Multiple Levers of Growth; IP led Growth
Multiple Levers of Growth for NIIT Expand Coverage • Expanded geographic Grow coverage Horizontally • Expanded • New Verticals and demographic Segments coverage e.g. addressed District Learning Centers • IFBI Increase Depth • (Imperia) • New Delivery • New products Formats • ELT and • New tie ups &
Slide 25: New models to increase reach; Long Term Strategy
New models to increase reach District Learning Centre-Chindwara Then….. Now….. 49 Long Term Strategy • Higher education partnerships ILS • Expansion of product portfolio; expansion in focus geographies • Increase market size by moving down the pyramid (DLC, CLC ) • Growth in Gov‟t Schools; balance r
Slide 26: New Government: Promise of Enrichment of Human Capital
New Government: Promise of Enrichment of Human Capital 51 Emerging Opportunities in Education & Training • Increasing government focus on education sector; keen to improve both quantity and quality of education • ICT@Schools programs being expanded; To cover 180K+ Government schools by FY17 • Rashtr
Slide 27: India Skills Development Opportunity
India Skills Development Opportunity Goal to create 500 million certified and skilled technicians in the country by 2020 Institutional arrangements: • National Council for Skill Development – PMO • National Skill Development Coordination Board – Planning Commission • National Skill Development Corpo
Slide 28: NIIT: Today and Tomorrow
NIIT: Today and Tomorrow • We are today, the market leader with strong credentials and competencies • We have a strong financial track record, and in the past have successfully dealt with market adversities and uncertainties • We have successfully transitioned from an IT Training Company to a Global