Niit Limited · NSE:NIITLTD
Niit — Investor Presentation (May 2019)
40 slides from Niit's investor presentation, May 2019
Slide 1: NIIT Limited: Investor Presentation
NIIT Limited: Investor Presentation May 2019 www.niit.com 1
Slide 2: Agenda
Agenda NIIT: Company Overview • Corporate Learning Group • Skills & Careers Group • School Learning Group FY19 Results Update Future Direction 2
Slide 3: NIIT: At a Glance
NIIT: At a Glance YEARS OF COUNTRIES EXPERIENCE WORLDWIDE NIITIANS 38 40 2565 3 LINES OF BUSINESS 38 MILLION LEARNERS TRAINED HQ IN GURGAON, INDIA 3
Slide 4: NIIT: Business Structure
NIIT: Business Structure 69% 27% 4% CORPORATE LEARNING SKILLS & CAREERS SCHOOL LEARNING GROUP (CLG) GROUP (SNC) GROUP (SLG) INR 6,324 MILLION INR 2,428 MILLION INR 350 MILLION Productivity Employability Academics North America, Europe, Oceania India, China, Africa India Managed Training Services Ser
Slide 5: NIIT: Capital Structure
NIIT: Capital Structure SHAREHOLDING TOTAL CAPITAL EMPLOYED – INR 10,263 MILLION Debt 18% Promoters, 32% Public, 41% Equity MF, FI & 82% Net Other FPI, 13% Assets, Banks, 16% 14% Investments Fixed *, 57% Assets, Public MF, FI & Banks FPI Promoters 27% No of Shares: 167 million *NIIT held 14.49 milli
Slide 6: NIIT: Our Credentials
NIIT: Our Credentials 20% higher premiums Reduction of learning Reduced time to CORPORATE for agents on-boarded expenditures by 25% for a proficiency by 30% in 22 for a leading Insurance diversified Health and locations worldwide for LEARNING company Well-being company a global Energy major. Skilled
Slide 7: NIIT: Awards and Recognition
NIIT: Awards and Recognition 77 BRANDON HALL AWARDS 8 CHIEF LEARNING 3 LEARNING 2 ATD EXCELLENCE IN LPI ACCREDITED LEARNING LEADER IN NELSON HALL 28 GOLD | 25 SILVER | 25 OFFICER LEARNING IN TECHNOLOGIES UK PRACTICE AWARDS PROVIDER GOLD LEARNING BPS NEAT BRONZE PRACTICE AWARDS AWARD STANDARD - 2016-
Slide 8: 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 Full time Localization Hours of Training Global training Global Network Industry p
Slide 9: CLG: Marquee Customers
CLG: Marquee Customers ik ED ED FADD FICEB is now Gartner nor equinor SIQVIA riverbed skillsdft bp AON: Tewitl abi BOEING 3 tfiafi =~. ; “neue "cisco. citi @ Deloitte. Bas2s2ocue Ae" ufitsu @ <a il MetLife NOKIA _ pitneybowes (9) Eyco gy redifat (ROTI) oe Rockwell =| 3 Ey @Q@ Automation SANOFI ° | c
Slide 10: CLG: Proven Business Impact
CLG: Proven Business Impact 30% 20% 15M 24% 4M+ NIIT’s application rollout 20% increase in 29.4% reduction in course 24% reduction in time to NIIT’s Rails blended training for Shell Primavera average productivity length with a 16 Day competency and 48% learning program for mine has helped reduce tim
Slide 11: SNC: Improving Employability in Aspirational Careers
SNC: Improving Employability in Aspirational Careers Data ASPIRATIONAL » Information Digital Science & Banking & Management CAREERS Technology Marketing Finance Analytics Partner Inside Online 4 CHANNELS » Own Brick Brick Campus Channel On Demand E- On Demand Synchronous CR Live Synchronous Learning
Slide 12: SNC: Our Reach
SNC: Our Reach International: 106 India: 181 12
Slide 13: SLG: Portfolio and Credentials
SLG: Portfolio and Credentials 10 Mn+ STUDENTS 400K+ TEACHERS 100K+ NODES 24K+ HOURS OF CONTENT 45K+ INSTRUCTORS 17K+ SCHOOLS Cumulative 13
Slide 14: School Learning: Creating Measurable Impact
School Learning: Creating Measurable Impact 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
Slide 15: Q4 & FY19 Results Update
Q4 & FY19 RESULTS UPDATE % % A 4 % % Z % % Zg % % % Ea
Slide 16: Environment
Environment After strong growth in last couple of Spending on corporate L&D in advanced years, global economic activity slowed India GDP is expected to have grown at economies continues to be robust notably in FY19, reflecting a confluence 7% in FY19 (CSO), representing a sharp driven by higher empl
Slide 17: NIIT FY19 Highlights
NIIT FY19 Highlights SLG 4% LIQUIDITY Net Debt: INR 570 Mn Improved INR 3 Mn QoQ SNC 27% PROFITABILITY EBITDA: INR 842 Mn Up 13% YoY CLG 69% CAPITAL EFFICIENCY ROCE: 15.1% Up YoY: 120 bps Corporate: Skills & Careers: Schools: •46 global MTS customers •2400+ enrolments for New •761 School contracts i
Slide 18: Q4 FY19: In Perspective
Q4 FY19: In Perspective Corporate Learning Skills & Careers Group School Learning Group NIIT Group (CLG) (SNC) (SLG) • Revenue at INR 2,397 • Revenue at INR 1,588 • Revenue at INR 629 • Revenue at INR 180 Mn Mn; up 8% YoY; Mn up 9% YoY Mn, up 5% YoY up 3% YoY Revenue from Go • EBITDA margin at 14% •
Slide 19: FY19: In Perspective
FY19: In Perspective Corporate Learning Skills & Careers Group School Learning Group NIIT Group (CLG) (SNC) (SLG) • Revenue at INR 9,102 • Revenue at INR 6,324 • Revenue at INR 2,428 • We have now Mn, up 7% YoY; Revenue Mn up 22% YoY; Mn down 11% YoY completed all from Go forward Constant currency •
Slide 20: Key Financials
Key Financials INR Mn Q4 FY19 Q4 FY18 YoY Q3 FY19 QoQ FY'19 FY'18 YoY System wide Revenue 2,969 3,151 -6% 2,923 2% 12,102 13,511 -10% Net Revenue 2,397 2,228 8% 2,278 5% 9,102 8,505 7% Operating expenses 2,163 2,007 8% 2,078 4% 8,260 7,759 6% EBITDA 234 221 6% 200 17% 842 746 13% EBITDA% 10% 10% -18
Slide 21: Business Mix
Business Mix Q4 FY19 Q4 FY18 Schools Schools 8% Business Growth Skills & 8% Skills & Corporate 9% Careers Careers 26% Skills & Careers 5% 27% Corporate 66% Schools 3% Corporate NIIT 8% 65% FY19 FY18 Schools Schools 4% Business Growth Skills & Skills & 7% Careers Corporate 22% Careers Skills & Career
Slide 22: Corporate Learning Group
Corporate Learning Group INR Mn Q4 FY19 Q4 FY18 YoY Q3 FY19 QoQ FY'19 FY'18 YoY Net Revenues 1,588 1,451 9% 1,614 -2% 6,324 5,183 22% EBITDA 215 196 10% 234 -8% 906 761 19% OM% 14% 14% 5 bps 15% -94 bps 14% 15% -36 bps Q4FY19 • Revenue at INR 1,588 Mn up 9% YoY. • 5 new MTS customers & 1 contract ex
Slide 23: Skills and Careers Group
Skills and Careers Group INR Mn Q4 FY19 Q4 FY18 YoY Q3 FY19 QoQ FY'19 FY'18 YoY Net Revenue 629 602 5% 634 -1% 2,428 2,729 -11% EBITDA -10 -14 4 mn 16 -26 mn 6 -30 120% OM% -2% -2% 76 bps 3% -415 bps 0% -1% 136 bps Q4 FY19 • Revenue at INR 629 Mn up 5% YoY • On boarded 2500+ employees for a large PS
Slide 24: School Learning Group
School Learning Group INR Mn Q4 FY19 Q4 FY18 YoY Q3 FY19 QoQ FY'19 FY'18 YoY Net Revenues 180 176 3% 30 497% 350 593 -41% EBITDA 29 40 -28% -50 79 mn -70 15 -561% OM% 16% 23% -671 bps -166% 18219 bps -20% 3% -2255 bps Q4 FY19 • Revenue at INR 180 mn • Revenue from go forward private school business
Slide 25: People
People 2,611 2,579 2,565 2,475 2,489 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Headcount down 14 QoQ •Includes Eagle headcount from Q4’FY18 •Excludes project retainers 25
Slide 26: Future Direction
FUTURE DIRECTION. 26
Slide 27: We help clients run training like a business.
NIIT CORPORATE LEARNING GROUP We help clients run training like a business. A Vision for Transforming L&D
Slide 28: CLG: Corporate Training Metrics
CLG: Corporate Training Metrics Average Annual Spending Per Employee (USD) Direct Expenditure As Percentage of Revenue 1,296 1,252 1,273 1.16% 1,229 1,208 Direct Expenditure As Percentage of Payroll 3.3% 2013 2014 2015 2016 2017 Average Spend Per Employee by Industry (USD) All Self Paced Professiona
Slide 29: CLG: Corporate Training Spending
CLG: Corporate Training Spending The Corporate Training Spending On Training market represents $360+ (US$ Billion) 196 198 201 billion opportunity 165 172 142 150 160 162 161 Spending on Training Continues to Grow 2013 2014 2015 2016 2017 North America RoW 1 2 3 4 Increasing trend towards Tech/ Tele
Slide 30: CLG: Consistent Growth
CLG: Consistent Growth No of MTS Customers CLG Revenue (Rs Mn) 6,324 46 5,183 39 22% Revenue +7 4,534 34 14% 16% CAGR over +5 last 7 years FY17 FY18 FY19 FY17 FY18 FY19 Steady Addition of Differentiated Strong revenue New Logos (9 new competitive Visibility. $245 Mn logos in FY19) positioning from e
Slide 31: Taking MTS to the Next Level of Growth
Taking MTS to the Next Level of Growth PRODUCTIVITY ACCELERATE COMPREHENSIVE DEAL FLOW ENGAGEMENTS Domain expertise Global delivery Step up people Investments in S&M capability productivity and Contract Expansion High Capability and optimization of effort & with Existing Customers Service Maturity r
Slide 32: CLG: Leveraging Analytics for Creating Customer Value
CLG: Leveraging Analytics for Creating Customer Value Customer Customer “I need a one-stop shop to get all my data so that I can make business decisions. Demand Demand My LMS won’t give me this.” NIIT Solution 32
Slide 33: Shaping Future Skills And Careers
NIIT SKILLS AND CAREERS Shaping Future Skills And Careers Transforming the Workforce of Tomorrow
Slide 34: SNC: India Higher Education Landscape
SNC: India Higher Education Landscape 39,050 Enrollment by Level Colleges Diploma, UG Enrollments by Stream 2.7, 7.4% Others, 0.8, 903 2.2% Management, Universities IT & Computer, 0.6, 2% Law, PG, 4.1, 0.4, 1% 0.7, 3% 11.2% Medical, 36.6 million UG, 29.0, 1.1, 4% Arts, 9.7, Students Enrolled 79.2% E
Slide 35: SNC: Digital Transformation – IT Sector
SNC: Digital Transformation – IT Sector Global Technology and Business Services Spend $ Bn India digital services experts growing at +30% (1.5x faster than 4100 global digital growth rates) and 3% to 4% now ~20% of Industry Exports. +1400 3550 Global Technology and Business 2757 80% 35% +30% 60% Ser
Slide 36: SNC: Digital Opportunity Landscape
SNC: Digital Opportunity Landscape Future is “Digital@Scale” Digital Creators ~400K Digital becoming all pervasive, blurring IT industry sector boundaries Opportunity Market Digital projects more skill intensive Digital Developers ~4 M than people intensive People need continuous reskilling with Dig
Slide 37: SNC: Digital Transformation
SNC: Digital Transformation 37
Slide 38: SNC: New Product Portfolio
SNC: New Product 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 Accou
Slide 39: SNC: Talent Pipeline as a Service (TPaaS)
SNC: Talent Pipeline as a Service (TPaaS) TPaaS Mandates IT Program Analysts for a top 3 Indian IT Services company Full Stack Developers for a Global Aerospace company • Customer Banking Officers for • Sourcing Acquisition a leading Indian Private Bank • Training • Relationship B2B B2C • Placement
Slide 40: You can't spell TRAINING without NIIT.
You can’t spell TRAINING without NIIT. 40