NIIT Limited · NSE:NIITLTD
NIIT — Investor Presentation (September 2009)
28 slides from NIIT's investor presentation, September 2009
Slide 1: Education, Employability, Productivity - September 2009
Education, Employability, Productivity September 2009 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 and 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: ILS: Demand for Trained Professionals
ILS: Demand for Trained Professionals IT-ITES Industry outlook Public sector banks on recruitment spree ■ People directly employed PSU banks to hire 30,000 in 2009-10. 4.0 Mn Exports $ Bn $120 2.5-3.0 Mn 2.23 Mn $60-62 $47 FY 09 FY 11 FY 15 Nasscom % employable Qualified Engineers & IT 25% Growing
Slide 10: ILS-IT: Our reach and partnerships
ILS-IT: Our reach • India : 500 Centers • China: 192 Centers • ROW: 158 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 • 22 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: School Learning Solutions
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 and eGuru solutions portfolio
NIIT:SLS 8,747,713Students 336,542Teachers 91,119 Nodes 21,358 Hrs of Content 18,125Instructors 14,110 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 and 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 Consumer sentiment continues to be weak across sectors Unemployment in the US still rising; expected to peak in Q4‟10 and then start a slow recovery Global markets continue to remain sluggish; there is however increased interest in offshoring. Nassc
Slide 19: AMJ'09: Consolidated Financials and Results Highlights
AMJ’09: Consolidated Financials AMJ’09 AMJ’08 YoY FY'09 YoY System Wide Revenues 3,688 3,664 1% 16,893 21% Net Revenues 2,610 2,595 1% 11,486 14% Operating Expenses 2,325 2,408 (3%) 10,300 14% EBITDA 286 187 53% 1,186 15% OM 11% 7% 373 bps 10% 4 bps Depreciation 168 126 33% 647 22% Other Income (101
Slide 20: AMJ'09: Business Highlights
AMJ’09: Business Highlights • ILS: Strong growth in IMS enrollments – 92% and China – 63%. Placements continue to be strong at 87%. Initiated ERP training • SLS: Gujarat order for 1,870 schools. Improved traction from Math lab. 114 new private schools added. Improved funnel in private schools • CLS:
Slide 21: ILS-IT and ILS-New Business Highlights
ILS - IT: Highlights Rs. Mn AMJ‟09 AMJ‟08 YoY FY09 YoY System wide revenues 1918 1907 1% 9,317 31% Net Revenues 856 854 0% 3,982 23% EBITDA 160 150 7% 865 30% EBITDA % 19% 18% 115 bps 22% 123 bps • SWR Geo Mix: India 71%, ROW 14%, China 15% • Enrolments grew 6%; Placements up 87% • India Capacity +9
Slide 22: SLS and CLS Highlights
Rs. Mn AMJ‟09 AMJ‟08 YoY FY09 YoY Net Revenues 359 252 43% 1,383 37% EBITDA 66 35 89% 214 63% EBITDA % 18% 14% 447 bps 15% 246 bps • GSA contributes 70% of revenue- up 49%; non GSA up 30% YOY • Order Intake: Rs.1,075 Mn • Schools added: 1,984 (including 114 private schools) • E-guru solutions gained
Slide 23: Future Direction: Multiple Levers of Growth
Future Direction 45 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
Slide 24: IP led Growth
IP led Growth IP for • Non Linear Growth CLS • Reach & Scalability Global Talent • Competitive Entry Barriers Development Blended Corporation • Speed to Market Learning SLS • Cost Leadership Web Based Training Computer Based ILS Training Element K eGurucool IFBI & Imperia, Franchising in Uniqua Educ
Slide 25: Long Term Strategy
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 risk, profitability, resources • Excellence in Math, Science, IT, English – foundat
Slide 26: Emerging Opportunities in Education and Training
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 • Rashtriya Madhyamik Siksha Abhiyan (RMSA) – To go beyond ICT edu
Slide 27: Summarizing: NIIT Today and Tomorrow
Summarizing 53 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 Comp
Slide 28: Leadership in the Century of the mind
Leadership in the Century of the mind 55 28