NIIT Limited · NSE:NIITLTD
NIIT — Investor Presentation (June 2008)
29 slides from NIIT's investor presentation, June 2008
Slide 1: Education, Employability, Productivity
Education, Employability, Productivity June 2008 1 Contents • The Environment • Company Overview • Employability – Individual Learning Solutions • Education – School Learning Solutions • Productivity – Corporate Learning Solutions • Summary 2 1
Slide 2: The Global Talent Shortage
Environment 3 The Global Talent Shortage Huge gaps in talent demand and supply in all sectors of the economy Increasing Globalization – Work mobility Changing Demographics – Ageing population Services led economy – New skill sets Talent Gap at the top; Skills Deficit at the bottom 4 2
Slide 3: The Indian Scenario
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 4: India: Skill Supply Chain
India: Skill Supply Chain Only 5% of labor force has formal vocational training India Education Spend: Rs. 3 Tn (5x) allocated in 11th 5 year plan Source: I Watch Survey, 2007 Issues of relevance, reach, inclusion and quality 7 Education, Employability, Productivity “Growth will get choked out if sk
Slide 5: 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 providers
Slide 6: Company Overview
Company Overview 11 NIIT: Market leader with strong credentials Only Education Company in India to feature amongst “BCG 50 Local Dynamos” • Dataquest “Top Training Company” in India award since its inception • Avaya Global Connect award for Customer Responsiveness for three successive years • Among
Slide 7: NIIT: Servicing the full labor supply chain
NIIT: Servicing the full labor supply chain Corporate School Learning Individual Learning Learning Solutions Solutions Solutions Target Audience School children Young adults Working professionals Value Proposition Academics Employability Productivity Customer School Individual Corporate • IT Trainin
Slide 8: NIIT's growth in the last 3 years
NIIT’s growth in the last 3 years 12,000 22% CAGR Revenue 10,068 10,000 7,951 8,000 6,749 6,000 4,000 2,000 - FY06 FY07 FY08 31% CAGR 37% CAGR 1100 1036 800 EBITDA 756 1000 900 700 PAT 774 800 600 547 700 + 13 % + 43 603 500 % 600 401 500 400 400 300 300 200 200 FY06 FY07 FY08 FY06 FY07 FY08 Acceler
Slide 9: FY08 Business Highlights
FY 08: Across the Board Improvement • ROCE improves from 13% in FY07 to 16% in FY08 • DSO at 74 days on FY08 revenues vs. 101 days in Mar’07 • Overall Debt reduced from Rs. 2698 Mn to Rs. 2057 Mn Improved Capital Efficiency 17 FY08 Business Highlights IT Training continued high growth; Revenue up 31
Slide 10: Capital Structure
Capital Structure Total Capital employed – Rs. 6092Mn No of Shares - 164.7 Mn Sources of Funds Face Value – Rs. 2 per share UnsecuredEquity 5% Debt Outstanding ESOPs – 1.45Mn 4% Shareholding Pattern Secured Debt 30% March 2008 Reserves 61% Public 20% Promoters 30% DMF & FIs 6% Application of funds C
Slide 11: India Employability Training Opportunity
India Employability Training Opportunity Total Working Professionals 16.3m 19m Working Pros Target 2m 2.0m Non- Tech Tech Grads Graduates 0.4m Grads 2.9m 3.3m Non-Tech Tech Students Students Students 11.0m 9.8m 1.2m Currently addressed 400k; 40x opportunity 21 Multiple Levers of Growth for NIIT Expa
Slide 12: ILS - IT Training
ILS - IT TRAINING 23 IT Training • Individuals, 16-25 years • Career, Career-edge and Skills Upgrade courses • For Engineers, Science / Arts /Commerce graduates, Working Professionals • Instructor-led, supplemented by e-learning • India. China. Developing World Improving Individual Employability in
Slide 13: IT Industry is Expected to Sustain Robust Growth
IT Industry is Expected to Sustain Robust Growth Worldwide IT services Spend India IT-ITES revenues 60 525 556 588 40.3 467 495 Domestic Exports 23.6 13-15 12.8 11.5 7.7 6.7 $Bn 1.9 4 2.6 3.9 2006 2007 2008 2009E 2010E 2000 2002 2004 2006 2008 2010 CAGR 6% CAGR 29% 3,589 IT Manpower Requirement (000
Slide 14: FY'08 Highlights ILS
FY’08 Highlights Rs. Mn FY 08 FY 07 %G (YoY) System wide revenues 7,119 5,655 26% Net Revenues 3,241 2,470 31% EBITDA 664 434 53% EBITDA % 21 % 18 % 291 bps SWR Geo Mix: India 66%, China 17%, ROW Enrollments 17% Overall + 25% India Revenues grow 37% YoY (Volume 20% India Career +24% Mix 7 % & Price
Slide 15: Partnership with Leaders; NIIT in China
Partnership with Leaders Pillars of Information Technology OPERATING SYSTEMS NETWORKS INFORMATION APPLICATIONS DATABASES STORAGE 29 NIIT: In China •171 centers •Ultra modern center in Shanghai •New center in Wuxi Software Park •>35% enrolment growth •“Best IT Training Company of the Year Award” 30 1
Slide 16: NIIT: Rest of the World; Future Strategy
NIIT: Rest of the World •160 centers •Vietnam, Nigeria, Botswana •Latin American Centers of Excellence •25% enrolment growth Continued expansion. Increasing recognitions 31 Future Strategy India New Products leveraging Technology Partnerships – e.g. CISCO, EMC, CompTIA for Infrastructure Management
Slide 17: ILS - FMT: Size of the opportunity
ILS - FMT 33 FMT: Size of the opportunity • Market addressed by FMT estimated as approx Rs 12 Bn, growing at 30% p.a. • Requirement of 160,000 persons in FY09, going up to 260,000 persons by FY11. Manpower Needs Foreig n & Pvt Bank s 76000 80000 70000 60000 45000 50000 32000 40000 22652 30000 20000
Slide 18: FMT: FY08 Highlights
FMT: FY08 Highlights Added 7 new centers to reach 22 centers in 19 cities Over 10,000 students trained during FY08 • IFBI: – IFBI gains universal acceptance among banking community with 3000+ fresh employees added to the industry during last fiscal – General Insurance programs launched with ICICI Lo
Slide 19: FMT Future Strategy; English & Professional Life Skills
FMT – Future Strategy • Increase geographical coverage : more centres • Coverage of other customer segments : more program offerings, other flexible formats • Alliances : more partners • More cost-effective customer acquisition 37 English & Professional Life Skills • Alliance with ETS for TOEIC test
Slide 20: English & Professional life skills; NIPE
English & Professional life skills Common Test existing Train to get acceptable employees employees to standard with against the given achieve standard employers standard Train potential Define employees to recruitment qualify standards 39 NIIT Institute of Process Excellence (NIPE) The latest addit
Slide 21: School Learning Solutions
School Learning Solutions 41 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 42 21
Slide 22: Next 3 years addressable opportunity
Next 3 years addressable opportunity Sarv Shiksha Abhiyan 600 districts ICT@School 60,000 schools PPP in Govt schools 6,000 schools Pvt Schools – Class room solutions 10,000 schools Pvt Schools- Lab Solutions 5,000 Schools School ERP & Portal Solutions 2,000 Schools Teacher’s training 500k Pre-servi
Slide 23: NIIT eGuru differentiators
14,000+ hours of Content Mind Champions Academy covering Science, Maths, School & Digital Arts festival Infra ERP Social Studies, English & IT Consultancy Collaboration FOR Teacher SCHOOLS Development Assessment Solution Lab Staff FOR FOR Geography Solution TEACHERS STUDENTS Lab Class Language Solut
Slide 24: SLS FY08 results and strategy
Rs. Mn FY’08 FY’07 %G (YoY) Net Revenues 1012 847 19% EBITDA 131 99 33% EBITDA % 13% 12% 134 bps • Order Intake: 1,314 Mn • Schools added: 1,821 (175 non GSA schools added) • GSA contributes 72% of revenue vs.71% LY; Non GSA grew 17% YoY • Product line strengthened by Math Lab, eGuru and nComputing
Slide 25: Corporate Learning Solutions
Corporate Learning Solutions 49 Our Credentials Largest 12000 + e-Learning Person Years Content 12,000 Hrs of 20,000+ Training 150+ University of Experience e-Learning Days per Year Courses Library 1500+ print 3500+ e-learning 285,000+ Student 20,000 Hours catalog library Learning Hours of ILT 1500+
Slide 26: Diverse Customer Portfolio; Corporate Training Market
Diverse Customer Portfolio Sales, Channel, and Customer Education Business Process Improvement Training Administration Services Regulatory Compliance New Product Rollout Employee On-boarding and Corporate Communications IT Productivity and Skills Development Other Solutions Management and Leadership
Slide 27: Corporate Learning Solutions; CLS: FY08 Financials
Corporate Learning Solutions • 3500+ titles; SAAS model Learning • 3Mn+ learners on Khub Invest • Largest print & eLearning library - High growth (21%) products • Virtual labs now available ‘in a box’ - High margin (SAAS) • Field sales force doubled in North America # 2 position • Partnership with r
Slide 28: CLS: Future Strategy
CLS: Future Strategy Mkt Contrib Current Growth Strategy trend % Position Learning 55% #2 player • Invest in global sales Products globally effort • Build further and extend product range Custom 23% Largest • Build expertise in select Projects custom verticals developer Training 14% Top 5 in • Globa
Slide 29: 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