Slide 1: Fiscal Fourth Quarter & Full Year 2008 Earnings Conference Call
NetSol TECHNOLOGIES Fiscal Fourth Quarter & Full Year 2008 Earnings Conference Call September 18, 2008
Slide 2: Safe Harbor Statement
NetSol TECHNOLOGIES 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 th
Slide 3: Najeeb U. Ghauri, Chairman & Chief Executive Officer
NetSol TECHNOLOGIES Najeeb U. Ghauri Chairman & Chief Executive Officer
Slide 4: Consolidated Financial Highlights
NetSol TECHNOLOGIES Consolidated Financial Highlights Fiscal Year 2008 * Revenues increased 25% to a record $36.6 million « Gross margin increased to 57% versus 53% in the prior year period * Operating income increased 172% to a record $7.2 million * GAAP net income increased to a record $7.2 millio
Slide 5: Fiscal 2008 Strategic Highlights
NetSol TECHNOLOGIES Fiscal 2008 Strategic Highlights BestShoring delivers BestSolution™ * Deployment of BestShoring client centric global delivery platform and launch of Global Business Services offering * Mutli-million dollar client wins * Increasing average customer deal size and higher value glob
Slide 6: Fiscal 2009 Growth Drivers
NetSol TECHNOLOGIES Fiscal 2009 Growth Drivers Leading market position for end-to-end leasing solutions in Asia Investing in North American and European sales and marketing Developing new markets in Central and South America Increasing penetration of dynamic and high growth Middle East Expanding and
Slide 7: Tina Gilger, Chief Financial Officer
NetSol TECHNOLOGIES Tina Gilger Chief Financial Officer
Slide 8: Strong Annual Revenue Growth
NetSol TECHNOLOGIES Strong Annual Revenue Growth 36.6 US$ Millions Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 2003 2004 2005 2006 2007 2008 ‘© 2008 NetSol Technologies, Inc. All rights reserved 8
Slide 9: NetSol Revenue
N etSo | Revenue TECHNOLOGIES For the 12 Months Ended June 30 Fiscal 2008 Fiscal 2007 % Change IT Consulting & Service Fees 17,650,815 14,052,481 t 25.6% License Fees 12,685,039 9,788,266 t 29.6% Maintenance Fees 6,306,321 5,441,339 t 15.9% Total Revenues 36,642,175 29,282,086 t 25.1%
Slide 10: Revenue By Business
NetSol TECHNOLOGIES Revenue By Business Full Year 2008 IT Consulting & License Service Fees Fees 48% 35% { | \ \ Maintenance Fees 17% (© 2008 NetSol Technologies, Inc. All rights reserved
Slide 11: Quarterly Revenue
NetSol Quarterly Revenue TECHNOLOGIES 12 10.5 10 6 4 2 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4aQ 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 US$ Millions
Slide 12: Gross Margin
NetSol TECHNOLOGIES Gross Margin 70% + 55% 0% alll | 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 60% 50% 40% 30% 20% 10%
Slide 13: Operating Expenses
NetSol TECHNOLOGIES Operating Expenses For the 12 Months Ended June 30 Fiscal 2008 Fiscal 2007 % Selling & marketing 3,722,470 3,161,924 RF 18% Depreciation & amortization 4,939,502 1,846,790 FS 5% Bad debt expense 58,293 189,873 ays 69% Salaries & wages 3,703,836 3,696,501 0% Professional services
Slide 14: GAAP Earnings/Loss Per Diluted Share
NetSol TECHNOLOGIES GAAP Earnings/Loss Per Diluted Share $0.08 $0.10 5 $000 os — co BS ($0.05) + ($0.10) + ($0.15) + Wi Impact of non-cash charges ¥ ($0.20) | related to the acquisition of McCue Systems in North ==> ($0.25) + America ($0.30) [ 4Q 1Q2 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2005 2006 2006 2
Slide 15: EBITDA Per Diluted Share
NetSol EBITDA Per Diluted Share 04k. $0.12 $0.12 $0.10 $0.08 $0.06 $0.04 $0.02 | [] | eM mt $0.00 + ($0.02) ($0.04) 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 * Excluding the impact of non-cash charges related to the acquisition of McCue S
Slide 16: Fiscal 2009 Financial Outlook
NetSol TECHNOLOGIES Fiscal 2009 Financial Outlook (Period ending June 30, 2009) Management Financial Objectives: + Annual revenue growth of 30% to 35% Quarterly gross margin within the target range of high 50% to 60% Annual diluted earnings per share within the range of $0.40 to $0.45 Focus on susta
Slide 17: Questions & Answers
NetSol TECHNOLOGIES Questions & Answers Najeeb U. Ghauri - Chairman & CEO Tina Gilger - CFO Naeem Ghauri - President, Europe & Global Products
Slide 18: Thank You
NetSol TECHNOLOGIES CMMI® Maturity intr Ihank You To learn more about NetSol Technologies, Inc., Visit www.netsoltech.com (NASDAQ CM: NTWK) (DIFX: NTWK)