Niit Limited · NSE:NIITLTD
Niit — Investor Presentation (February 2008)
26 slides from Niit's investor presentation, February 2008
Slide 1: From Training to Talent Development
From Training to Talent Development February 2008 Contents • The Environment • Company Overview • Individual (IT) Learning Solutions • School Learning Solutions • Corporate Learning Solutions • New Businesses • Summarizing 1
Slide 2: The Global Skills Shortage
The Global Skills Shortage Huge gaps in talent demand and supply in all sectors of the economy Increasing Globalization – Work mobility Changing Demographics – Ageing population Services led economy – New skill sets Talent Gap at the top; Skills Deficit at the bottom Global Workforce 2020 India’s De
Slide 3: The Indian Scenario
The Indian Scenario Indian economy growing @ 9%+ GDP Mix changing: Services 55%, Industry 27% & Agriculture 18% Difficulty in hiring High wage inflation •58% of Indian companies •Indian salaries rose the cannot hire staff with the right fastest in the world in 2007 (2) skills(1) •12% nominal wage in
Slide 4: NIIT in this Environment
NIIT in this Environment Successfully transitioned from an IT Training to Global Talent Development Corporation With the successful launch of new businesses, NIIT is well positioned to become a major source of skilled work force for sectors other than IT as well Expanding services economy and growin
Slide 5: Company Overview
COMPANY OVERVIEW NIIT – servicing the full labor supply chain School Learning Individual Learning Corporate Learning Solutions Solutions Solutions Target Audience School children Young adults Working professionals IT Non IT Value Proposition Performance Employability Productivity Business Model B2I
Slide 6: NIIT: A global presence
NIIT: Market leader with strong credentials Undisputed Leadership in IT & IT enabled Training Dataquest “Top Training Company” in India award since its inception Avaya Global Connect award for Customer Responsiveness for three successive years Formidable Brand-McDonald’s of Education (Far Eastern Ec
Slide 7: NIIT: In China
NIIT: In China NIIT: successfully weathered storms Sustained Growth Managing Adversity Building Momentum 1993 2001 2003 2010 Not to scale Steadily accelerating growth with higher productivity 7
Slide 8: NIIT's growth in the last 3 years
NIIT’s growth in the last 3 years 9,000 Revenue 900 EBITDA 8,000 + 76 % + 28 % 800 7,000 EK EK 700 6,000 5,000 600 4,000 +18 % 500 +23 % + 13% 3,000 400 2,000 1,000 300 0 200 FY05 FY06 FY07 FY05 FY06 FY07 700 PAT 3000 Individual Learning Business 600 2500 500 2000 + 48 400 % + 13 % + 43 1500 300 % +
Slide 9: 9M'08 Business Highlights
9M'08 Business Highlights Individual Learning Solutions (ILS): Continued high growth; Revenue up 30% YoY; EBITDA up 56%; Margin +325 bps School Learning Solutions (SLS): After a period of consolidation, SLS business poised to grow; Revenues up 2% YoY; EBITDA margin + 213 bps. Fresh order intake of R
Slide 10: Individual Learning Solutions
Individual Learning Solutions • Individuals, 16-25 years, primarily part-time • Career, Career-edge and Skills Upgrade courses • For Engineers, Science / Arts /Commerce graduates, Working Professionals • Instructor-led, supplemented by e-learning • India. China. Developing World Reach. Delivery. Enr
Slide 11: ILS: 9M'08 Highlights
ILS: 9M’08 Highlights Continued Growth: Revenue up 30% Registrations up 24% China records registration growth of 60% Enhanced Product Profile: Expanding DQ Product base, Hardware and Networking (GlobalNet+), Multimedia and Gaming Tech partnerships with Microsoft. Sun, Intel, Adobe, CompTIA, CISCO fo
Slide 12: ILS: Future Strategy
ILS: Future Strategy India Expansion in product portfolio through alliances, capacity expansion Specialized training to create domain experts for IT companies Enhanced use of Web and Mobility to reduce costs China and ROW Launch of new ‘Finishing School’ product in China for university graduates Sig
Slide 13: School Learning Solutions
School Learning Solutions Size 1 million schools Beneficiaries >200 million Students Decision Making 29 Boards Scope 17 Languages • Transforming education in schools, ICT integration • K-12: Government Schools to International Schools • Offerings for students, teachers and schools • BOOT-Government,
Slide 14: Our involvement so far / The eGuru Solution
Our involvement so far Tamil Nadu Private Schools Karnataka West Bengal 371 Schools 1406 Schools 700 Schools 500 Schools (cum) 5,700,473 Students 6,677 Schools 250,438 Teachers Microsoft Assam Meghalaya AP 663 Schools 1270 Schools MP – 4 Schools Project Shiksha 178 Schools 8,174 Instructors Over 32,
Slide 15: SLS: 9M'08 Highlights
SLS: 9M’08 Highlights After a period of consolidation, SLS business poised to grow Fresh order intake of Rs. 475 mn as compared to Rs. 123 mn in 9 months ended December 2007 Launch of substantially upgraded teaching product, at enhanced realizations Govt. school wins in Assam, Himachal Pradesh & Tri
Slide 16: SLS: Future Strategy
SLS: Future Strategy Grow GSA business; balance profitability, receivables risk and capital intensity. Aim for leadership share in tenders of choice Strong growth in Private Schools business, boosted by enhanced product and sales effort. Offer excellence in Mathematics, Science, IT and English throu
Slide 17: Corporate Learning Solutions
Corporate Learning Solutions • Largest Custom Content Developer • 2nd Largest Content Library • Best in Class hosted platform • Global Training Delivery • Technology companies, Corporates, Government • USA, Europe, India, APAC Corporate Learning Market: Breakup Consulting $ 0.7 Bn Facilities Fulfill
Slide 18: Corporate Learning Solutions
Corporate Learning Solutions The first & the best choice for comprehensive learning solutions 1500+ Professionals - Largest Content 12000 + Development Person Years Facility of Experience in the world 12,000 Hrs of 20,000+ Training 150+ University e-Learning Days per Year Courses 1500+ print 3500+ e
Slide 19: CLS: 9M'08 Highlights
CLS: 9M’08 Highlights Integration of Element K on track; Robust growth in Element K Major wins in Element K content library Fresh Order intake $106 Mn India Order intake for Q3’08 grew 136% YoY contributed by: High tech training for IT Companies English communication and workforce productivity train
Slide 20: CLS: Future Strategy
CLS: Future Strategy Grow Subscription Library Custom Learning Solutions – “From Development to Deployment” Training Outsourcing Global Technology Delivery practice Increase focus on India & China Strong focus on India corporate training space NEW BUSINESSES 20
Slide 21: IFBI: Institute of Finance Banking & Insurance
IFBI: Institute of Finance Banking & Insurance Customers Entry level career seekers in Banking, Finance & ifbi Institute of Finance, Banking & Insurance Insurance Industry, Re-training of existing Employees Products PG Diploma in Banking, Corporate Training programs, PG Diploma in Financial Planning
Slide 22: IFBI & Imperia: 9M'08 Highlights
IFBI & Imperia: 9M’08 Highlights IFBI: Repeating the NIIT success story in Financial Services – Gains universal acceptance from the banking community (New Partners - HDFC Bank, Yes Bank) – Insurance Program Launched in partnership with ICICI Prudential – Financial Services Program (ICICI Securities)
Slide 23: English & Professional life skills
English & Professional life skills • Alliance with ETS for TOEIC testing • Acquisition of Evolv for English language training • Market potential – A huge untapped market In India – 10.5 mn college students • 90% face an “employability gap” • Main reason – Lack of English communication & Professional
Slide 24: New Businesses: Future Strategy
New Businesses: Future Strategy Geographic Expansion and enhanced market penetration for IFBI and Imperia Extend domain partnerships Entry into Newer skill areas English & Professional life skills Significant Growth Drivers for NIIT SUMMARIZING 24
Slide 25: Summarizing: NIIT's growth strategies
Summarizing: NIIT’s growth strategies Individual Corporate •Expansion of Product Portfolio, Capacity •Promote Subscription Library – India & China •From Development to Deployment •Launch of new Specialized Products •Training outsourcing •Expansion in focus Geographies •Increase focus on India & Chin
Slide 26: Leadership in the Century of the mind
Leadership in the Century of the mind 26