Slide 1: 1Q Fiscal Year 2008 Earnings Conference Call
1Q Fiscal Year 2008 Earnings Conference Call November 8, 2007 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
“wl Ly me ae 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 coul
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 First Quarter 2008 e Revenues increased 48% to a record $8.7 million ° eee nanan increased to 61% versus 50% in the prior year perio ¢ Operating income increased to $2.2 million versus a loss of $0.2 million a year ago e¢ GAAP net income increased to a record
Slide 5: NetSol Asia Pacific
NetSol Asia Pacific LeaseSoft ¢ Blue-chip motor finance company in Australia licenses LeaseSoft’s Retail Finance Solution ¢ BMW financial services CEC Finance Hong Kong division has gone live with the NetSol’s LeaseSoft Retail solution IT Services ¢ Awarded the contract for the implementation of the
Slide 6: Highlights (NetSol EMEA)
Highlights ¢ Completed realignment of management team in United Kingdom operation e Advanced training completed for new Lahore team, increasing NetSol EMEA’s offshoring capacity ¢ Implementation of new customer relationship management (CRM) and accounting systems e Largely completed rebranding initi
Slide 7: Highlights NetSol North America
=z metsanll Highlights NetSol North America Appointed Mitch Van Wye VP of Development & Chief Operating Officer and Alexa Bradley head of U.S. sales Latest edition of LeasePak 6.0 released for general availability Signed a LeasePak contract with a multinational construction equipment manufacturer's
Slide 8: Financial Overview
NASDAQ: NTWK Financial Overview Tina Gilger Chief Financial Officer www.netsoltek.com
Slide 9: Strong Annual Revenue Growth
Ea Strong Annual Revenue Growth 29.3 7) < 2 = wn 8 8.7 1 Fiscal Fiscal Fiscal Fiscal Fiscal 3 Month 2003 2004 2005 2006 2007 YTD NASDAQ: NTWK www.netsoltek.com 2
Slide 10: Revenue
Revenue (Audited) All numbers in thousands 1Q 2008 1Q 2007 % Change License Fees 1,904 1,578 t 20.7% Maintenance Fees 1,583 1,295 t 22.2% Services 5,166 2,989 t 72.8% Total Revenues 8,653 5,863 t 47.6% NASDAQ: NTWK www.netsoltek.com 10
Slide 11: Revenue by business
ray | >| Revenue by business Fiscal First Quarter 2008 License Fees 22% TT Consulting Services Maintenance 60% Fees 18% NASDAQ: NTWK www.netsoltek.com
Slide 12: Gross margin by quarter
60.7% 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008
Slide 13: Operating expenses
All numbers in thousands 1Q 2008 1Q 2007 Change Selling and marketing 832 518 344 Depreciation & amortization 465 449 16 Bad debt expense 2. 66 (64) Salaries and wages 908 998 (90) Professional services (including non-cash compensation) 160 261 (101) General and administrative 679 820 (141) Total op
Slide 14: Net income per diluted share
cd ° & ° # S =) a 1 50.00 | PP aP—a- $0.08 ($0.05) ($0.10)4 ($0.15)+ ($0.20) ($0.25) ($0.30) 4Q 7 Impact of non-cash charges related to the acquisition of —,, McCue Systems in North America 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 NASDAQ: NTWK www.netsoltek.com 14
Slide 15: EBITDA Per Diluted Share
m=. ma EBITDA Per Diluted Share $0.14 $0.12 $0.12 4 $0.10 4 $0.08 4 $0.06 | $0.04 | $0.02 4 | (] $0.00 7 7 T T — a 7 7 ($0.02) | ($0.04) | ($0.06) 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 * Excluding the impact of non-cash charges related to the acquisition of
Slide 16: Consolidated Balance Sheet Highlights
Consolidated Balance Sheet Highlights All numbers in thousands Fiscal Year 1Q 2008 end 2007 % Change 9/30/07 6/30/07 Cash and cash equivalents 4,837 4,010 20.6% Accounts receivable (net of allowance for doubtful accounts) 9,302 7,937 17.2% Revenues in excess of billings 9,597 8,501 12.9% NASDAQ: NTW
Slide 17: Financial Outlook
=z vs Financial Outlook Management Financial Objectives: ¢ 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 e Focus on sustaining and expanding U.S. GAAP profit
Slide 18: 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 18
Slide 19: 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