Niit Limited · NSE:NIITLTD
Niit — Investor Presentation (November 2019)
37 slides from Niit's investor presentation, November 2019
Slide 1: NIIT Limited: Investor Presentation
NIIT Limited: Investor Presentation November 2019 www.niit.com 1
Slide 2: Agenda
Agenda NIIT: Company Overview Q2 FY20 Results Update Future Direction 2
Slide 3: NIIT: At a Glance
NIIT: At a Glance YEARS OF COUNTRIES EXPERIENCE WORLDWIDE NIITIANS 38 30+ 2540 3 LINES OF BUSINESS 38+ MILLION LEARNERS TRAINED HQ IN GURGAON, INDIA 3
Slide 4: NIIT: Business Structure
NIIT: Business Structure 70% 26% 4% CORPORATE LEARNING SKILLS & CAREERS SCHOOL LEARNING GROUP (CLG) GROUP (SNC) GROUP (SLG) INR 6,324 MILLION INR 2,329 MILLION* INR 350 MILLION Productivity Employability Academics North America, Europe, Oceania India, China, Africa India Managed Training Services Se
Slide 5: NIIT: Capital Structure
NIIT: Capital Structure SHAREHOLDING TOTAL CAPITAL 21,032 MILLION Debt 3% Promoters, Public, 31.5% 35.9% Equity MF, FI & 97% Net Other Fixed FPI, 14.7% Banks, Assets, Assets, 17.9% 0.9% 17.7% Net Current Public MF, FI & Banks FPI Promoters Assets, 81.4% No of Shares: 167.9 million Net Current Assets
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 bp BB AON ttexin toting, f woemo CBRE A lowes . soma EICEB “cisco citi @ Deloitte. Hiz%%.. EDay wh fit oO ie ccuiner fA Fujitsu &) Ae utace SIOVIA MEMetLife = NOKIA _ itreyboues Eyco & RioTinto reditat on Re . . riverbed automation Pn SAP NW) ©ignify ihe Soe Ng (HZ) gumeme = Y
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: 110 India: 160 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: Q2 FY20 Results Update
Q2 FY20 RESULTS UPDATE
Slide 16: Environment
Environment RBI expects India’s GDP growth to be 6.1% versus previous IMF cut Global GDP growth Geo-political tensions, Trade expectation of 6.9%, driven by forecast by 0.3% to 3%. This is uncertainty and forex volatility continuing sluggishness in the weakest growth rate since continue to impact de
Slide 17: Q2 FY20: In Perspective
Q2 FY20: In Perspective Corporate Learning Skills & Careers Group School Learning Group NIIT Group (CLG) (SNC) (SLG) •Revenue at INR 2,365 •Revenue at INR 1,740 •Revenue at INR 583 •Revenue at INR 42 Mn; up 5% YoY; Go Mn up 8% YoY; Mn down 2% YoY. Go •80 school contracts forward business •EBITDA mar
Slide 18: Key Financials
Key Financials INR Mn Q2 FY20 Q2 FY19 YoY Q1 FY20 QoQ Net Revenue 2,365 2,260 5% 2,080 14% Operating expenses 2,112 2,020 5% 1,859 14% EBITDA 254 240 6% 221 15% EBITDA% 11% 11% 10 bps 11% 9 bps Depreciation 137 84 64% 127 8% Net Other Income 345 -52 Rs 397 mn 13,135 Operational PBT 462 104 Rs 357 mn
Slide 19: Revenue Mix
Revenue Mix Q2 FY20 Q2 FY19 Schools, Schools Skills & 2% Business Growth 2% Skills & Careers, Corporate 8% Careers 25% Corporate, Skills & Careers -2% 26% 74% Schools -18% Corporate NIIT 5% 72% Q2 FY20 Q2 FY19 Geo Growth Rest of India Rest of World India 3% 21% World India 5% USA / Europe 8% 21% 7%
Slide 20: Corporate Learning Group
Corporate Learning Group INR Mn Q2 FY20 Q2 FY19 YoY Q1 FY20 QoQ Net Revenues 1,740 1,616 8% 1,524 14% EBITDA 271 238 14% 223 21% EBITDA % 16% 15% 86 bps 15% 92 bps • Revenue at INR 1,740 Mn up 8% YoY (constant currency growth at 8% YoY). 14% QoQ • Added 2 MTS customers; 2 contract expansions. MTS cu
Slide 21: Skills and Careers Group
Skills and Careers Group INR Mn Q2 FY20 Q2 FY19 YoY Q1 FY20 QoQ Net Revenues 583 593 -2% 494 18% EBITDA 34 31 9% 26 30% EBITDA % 6% 5% 57 bps 5% 53 bps • Revenue at INR 583 MN down 2% YoY • Go forward SNC business revenue grows @ 4% YoY • SNC India business grew driven by growth in Stackroute & TPaa
Slide 22: People
People 2,611 2,579 2,565 2,521 2,540 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Headcount up 19 QoQ and down 71 YoY 22 •Excludes project retainers
Slide 23: Future Direction
FUTURE DIRECTION. 23
Slide 24: 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 25: 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 26: 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 27: 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. $250 Mn* logos in FY19, 7 in H1 positioni
Slide 28: 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 29: 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 29
Slide 30: Shaping Future Skills And Careers
NIIT SKILLS AND CAREERS Shaping Future Skills And Careers Transforming the Workforce of Tomorrow
Slide 31: 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 32: 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 33: 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 34: SNC: Digital Transformation
SNC: Digital Transformation 34
Slide 35: 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 36: 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 37: You can't spell TRAINING without NIIT.
You can’t spell TRAINING without NIIT. 37