NETSOL Technologies Inc. · NASDAQ:NTWK
NETSOL Technologies — B. Riley & Co. 8th Annual Las Vegas Investor Conference (March 2007)
29 slides from NETSOL Technologies's conference presentation, Mar 14, 2007
Slide 1: B. Riley & Co. 8th Annual Las Vegas Investor Conference
B. Riley & Co. 8t» Annual Las Vegas Investor Conference March 14, 2007 Najeeb U. Ghauri Chairman & Chief Executive Officer
Slide 2: Safe Harbor Statement
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 that could cause actua
Slide 3: Investment Highlights
Investment Highlights = Premier multinational end-to-end solutions provider of enterprise software and IT consulting services to the financial services industry * Global footprint and market penetration * Asia-Pacific + Europe/Middle East/Africa * North America * Compelling offshore business model,
Slide 4: Global Footprint and Market Penetration
Global Footprint and Market Penetration Najeeb Ghauri Chairman & CEO, Netfol Technologies Inc. su BK uxcemen * NetSol Technoogis Lid { Net0iCa ‘Nacem Ghauri President, NetSol Global Products & EMEA Ld , ea + Netso Technologies Representative Offce { NetSol Mecue Systems ‘Salim Ghauri ‘NetSol Technol
Slide 5: Compelling Offshore Business Model
Compelling Offshore Business Model = Pakistan: one of the newest and fastest growing IT export markets in the world + Significant cost arbitrage relative to India + Large pool of qualified, highly skilled IT developers and consultants + Motivated and supportive national government — Established Paki
Slide 6: CMMI
CMMI® Maturity temational Orgenization for Stondordizotion NetSol’s commitment to quality is demonstrated by its achievement of both SEI (Software Engineering Institute) CMMi (Capability Maturity Model) Level 5 assessment and ISO 9001 certification, a distinction shared by only 94 companies worldwid
Slide 7: Blue Chip Client Base
Blue C Client Base YAMAHA DAIMLERCHRYSLER citigroup. me ® Investec @ scan CHASE © Cisco Systems ® Capital(; TA . Key Equipment Finance Z on CapitalSteam ©) BrMU Capital Corporation TOYOTA leo XXIII intel fazr ———— 34 BANK OF SCOTLAND EA HYUNDAI Figerv
Slide 8: Market Opportunity
Market Opportunity Worldwide Offshore IT Services Export Share by Region was $9.8 billion in 2004 Middle East & Latin America % Phitippines, ~ Source: IDC Global equipment leasing market is estimated to represent a $600 - $700 billion annual opportunity ~ Sources: Lehman Bros. and Maxim Group The U.
Slide 9: Growth Drivers
Growth Drivers = Companies looking at offshore development as strategic necessity to generate operational efficiencies * Cost arbitrage with highest level of quality Emerging growth opportunities in China and Southeast Asia * China is currently is the Company's #1 revenue-generating market Opportuni
Slide 10: Growth Strategy
Growth Strategy = Enhance sales and marketing efforts in core markets (APAC, Europe and North America) = Cross-sell and market BPO and IT consulting services to enterprise software customers = Capitalize on significant offshore cost arbitrage * Leverage IT brain trust and cost advantages of Lahore f
Slide 11: Competitive Differentiation
Competitive Differentiation = Functional depth * Ability to accommodate many different styles of market competition, regulation, tax, insurance and audit requirements = Operational comprehensiveness + End-to-end solutions that manage the full leasing lifecycle + Significant expertise in Open Source
Slide 12: Core Business
Core Business = Developer of end-to-end enterprise solutions = Provi Equipment and vehicle finance portfolio management solutions Banking and insurance products Online collaboration technologies & content management Business intelligence & asset management solutions Processes improvement & informati
Slide 13: Enterprise Software
Enterprise Software Licensing, Service and Maintenance + LeaseSoft — commercial finance applications * Sold in APAC and EMEA * China is #1 revenue generating market + LeasePak — equipment and vehicle portfolio management solution ‘+ Product sold in North America + inBanking — new product + End-to-en
Slide 14: LeaseSoft
LeaseSoft = End-to-end productivity suite for the captive finance industry + Modular and scaleable asset-based solution that is adaptable to a specific industry sector + Streamlines the entire leasing/financing cycle « Three primary applications * Credit Application Processing System (CAP) ‘+ Contra
Slide 15: LeaseSoft — Typical Functional Architecture
LeaseSoft — 7ypical Functional Architecture ..LeaseSoft is scaleable to the asset, loan, consumer and auto finance sectors
Slide 16: LeasePak
LeasePak = End-to-end asset finance accounting and portfolio management system * Offers flexibility to streamline operations across the full lease lifecycle + Accurately tracks leases, loans and equipment from origination through end-of-term and disposition * Configured to handle unique tax and regu
Slide 17: LeasePak — U.S. Sales Universe
LeasePak — U.S. Sales Universe Independents Prospects: 200 - 300 Captives Monitor 100 Prospects: 200 to 300 | 4 yf Banks 4 a re
Slide 18: inBanking
inBanking + Newest enterprise software solution = Designed for front, middle and back-office treasury requirements + Provides risk management, credit control, pricing and rate feeds * Optimized to handle full suite of instruments, including: Foreign exchange Money market trading Long-term securities
Slide 19: Outsourcing, Business & IT Consulting Services
Outsourcing, Business & IT Consulting Services = Customized application development * SDLC analysis, design, implementation and testing = Network infrastructure management = Data center management = IT consulting + Content Management + Asset Management * GIS Development + Open Source Development = B
Slide 20: Extended Innovation
Extended Innovation TiG NetSol (Pvt) Ltd. - = Extended Innovation — name of joint venture pando Alliance between NetSol and The Innovation Group (“TiG”) Ei Focus on insurance IT services vertical Organized in 2005 to better leverage intellectual resources for TiG clients = Marquee insurance clients
Slide 21: Financials
Financials if
Slide 22: Income Statement Highlights
Income Statement Highlights All numbers in thousands PERIOD ENDING 42/31/06 9/30/06 6/30/06 3/31/06 Total Revenue $7,227 $5,863 $4,650 $5,046 Cost of Revenue 3,586 2,812 3,058 2,319 Gross Profit 3,641 3,051 1,593 2,727 Operating Income or Loss $375 $(159) $(4,488) $269 EBITDA $527" Minority Interest
Slide 23: Annual Revenue Growth
g Annual Revenue Growth $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 FYE 6/30/03 FYE6/30/04 FYE 6/30/05 FYE 6/30/06 FYE 6/30/07 E
Slide 24: FY 2006 Revenue Mix
FY 2006 Revenue Mix TT Consulting & Services 30% ISP Provider 5%
Slide 25: Revenue by Division
Revenue by Division $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 | $2,000,000 | $0 + FYE 6/30/03. FYE 6/30/04 FYE6/30/05 FYE 6/30/06 TOTAL US m TOTAL APAC m TOTAL UK Total US does not include revenues from McCue Systems, which was acquired in June 2006. =, 5
Slide 26: Consolidated Balance Sheet Highlights
Consolidated Balance Sheet Highlights ‘December 31, 2006 ASSETS Current assets ‘Cash and cash equivalents $ 2707147 ‘Accounts recetvabl, net of allowance for doubtful accounts of $106,0 8,305,346 Revenues in excess of biings 6,492,007 ‘ther curent assets 23107,134 “Total current assets 19,611,654 In
Slide 27: Capital Market Summary
Capital Market Summary Market/Symbol Stock Price (as of 03-09-2007) Shares Outstanding Market Capitalization Float Cash (as of 12-31-2006) Total Debt (as of 12-31-2006) 52-Week High/Low Fiscal Year End NASDAQ : NTWK $1.67 17.97 million ~$30 million 9.3 million shares $2.7 million $2.2 million $219,0
Slide 28: Investment Summary
Investment Summary = Premier global provider of enterprise software and services for the lease and captive finance industries = Only company with dedicated offshore development resources specializing in equipment leasing = Compelling offshore business model = Global operations and market penetration
Slide 29: Thank you
Thank you
Netsol Technologies — B. Riley & Co. 8th Annual Las Vegas Investor Conference (March 2007) on 6ix