Investor Presentation December 2011 1
Agenda • Education & Training: Landscape • Company Overview – Individual Learning Solutions – School Learning Solutions – Corporate Learning Solutions – Skill Building Solutions • H1FY12: Results Update • Sharpening The Edge 2
EDUCATION & TRAINING: LANDSCAPE 3
India: Long Term Outlook • Young nation with 54% of population Demographic Dividend under 25 years of age • Trillion dollar economy expected to Growing Economy grow @ 7% - 8% pa • Expected to cross $27 Trillion in 2050 • Global shortfall of 56 million by 2020 Global Workforce requirement • India will have 47 million excess • Rs. 2.7 Trillion (5x) committed for the 11th Five Year plan for education Government Spending on Education and training • Rs 120 Billion allocated to NSDC for skills development India story is here to stay, however…. 4
Massive Gaps Exist In Access & Quality • Low workforce productivity • Low capacity for skills training • Acute skills shortage & unemployment • Low employability • Low coverage of vocational skills taught Education & Training will remain and important 5
Education & Training: The Emerging Environment The Emerging Framework Planned Outcomes • National Skills 10,000 new vocational schools Skills Development Corporation 50,000 skill development Development • Target: vocational skills to centers 500 Mn people by 2022 Revamp of ITIs Public Private Partnerships • Right To Education ICT@Schools, SSA, RMSA • National Curriculum PPP for Model Schools Schools Framework Skills training in schools Education • Education through ICT Technology enabled teaching Polytechnics , Community • New regulatory Colleges framework: NCHER, Higher Technology enabled teaching NARA, Foreign Education Professional skills training Education Providers • GER of 30% by 2020 vs current GER of 12.4% Education and training scenario is undergoing a transformation 6
NIIT In The Emerging Environment NIIT’s Strengths Current Engagement • Long standing brand ILS-IT : IT and Soft Skills • Best in class domain IFBI : Banking, Finance, Insurance partnerships Skills Uniqua : BPO/KPO Skills • Content creation Imperia : Management education Development capability NYJ : Vocational training for the • Processes & tools for service sector distributed delivery of Training.com : Online learning education 870+ global delivery centers • Width and depth of Government sponsored reach opportunities • Innovative Govt: BOOT contracts pedagogical solutions NIIT eGuru suite Schools • Operations & Project Interactive classrooms Education Management Math Lab, Science Station • Teaching/ learning Teachers Training content School ERP • Scalable delivery HIWEL Learning Stations capability 7
NIIT In The Emerging Environment NIIT’s Strengths Current Engagement Tie up with 100+ universities • Institutional Joint certification and dual Higher alliances models qualification programs Education • Global linkages IGNOU partnership for degree programs NIIT Inside solutions • Best in class custom content capability • End-to-End Training Provider of products and services outsourcing capability to Corporate • Partnership with all − Leading technology companies Training major technology − Major Fortune 500 companies companies − Governments 8
NIIT: Market Leader with Strong Credentials • One of the largest providers of vocational and professional skills worldwide across various service sectors. Acknowledged market leader in India • Leading player in the school education segment in India. Positioned to take strong advantage of the emerging environment • One of the leading providers of corporate training in the world. Uniquely positioned to take maximum advantage of the growing training outsourcing trend, in India and internationally Demonstrated ability to build viable, scalable and sustainable education & training businesses 9
COMPANY OVERVIEW 10
IT Training To GTD Training and IT Services CLS business Global Talent CAGR >50% + Development Company Key Competencies SLS Developed: - Pedagogy ILS - Management of distributed delivery process, Launch of IFBI - Partnerships & Imperia Pioneered Demerger of Launch of Franchising in IT Services Training.com Education IT Industry Slowdown IPO Launch of Launch of Established NYJ Uniqua 1982 1993 2000 2004 2006 2010 2011 2008 NIIT has grown from being an IT training company to a global talent development corporation 11
Servicing The Full Labor Supply Chain Individual Learning School Learning Corporate Learning Solutions & Skill Building Solutions Solutions Solutions Target Audience School children Young adults Working professionals Value Proposition Academics Employability Productivity Customer School Individual Corporate • Multimedia Teaching & • IT, BPO, KPO, BFSI, • Managed Training Learning Content Management Services • IT Learning Education in ILS • Training Delivery Coverage • Teacher Training • Vocational training for • Custom Content • School Management service sector in SBS Development • Professional Life skills Services India , Emerging India, China, Emerging Geographic Coverage India, USA, Europe Economies Economies 12
NIIT: Last 5 Year Financial Track Record Rs Mn Revenue EBITDA 1593 CAGR: 23% CAGR: 21% 1569 12483 1186 11993 11486 1036 10068 7951 774 FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 Dividend Payout CAGR: 16% ˃ Number of Shares Outstanding : 248 231 214 214 165 million (FV of Rs 2 each) 143 ˃ Last Bonus, Split : 5:1 Split, 3:2 Bonus; Sept 2008 FY07 FY08 FY09 FY10 FY11 13
Capital Structure Total Capital employed – Rs. 10,232 million • No of Shares – 165.1 Mn Secured • Face Value – Rs. 2 per share Debt 28% Reserves Unsecured 58% Debt 11% Equity 3% Public, 27% Promoters, 34% Invest ments 18% Cash DMF and FI, 4% 10% Net Current Assets Net Fixed FIIs, 28% 19% Assets* * Including CWIP 60% 14
BUSINESSES 15
INDIVIDUAL LEARNING SOLUTIONS 16
IT Training • Improving individual employability in IT Sector • Career, Career-edge and skills upgrade courses for Technology Partnerships* individuals • For Engineers, Science / Arts /Commerce graduates, working professionals • Instructor-led, supplemented by e-learning • India, China, Developing World *Selected NIIT is Asia’s No.1 IT training company 17
IFBI - Finance, Banking & Insurance Training • Career, Career-edge and Skills upgrade courses for IFBI: Partnerships* individuals • For graduates and working professionals • Instructor-led, supplemented by e-learning *Selected Creating job ready professionals for banking, insurance & financial services industry 18
NIIT Imperia - Management Education • Executive management education for individuals • Career upgrade courses for working professional Imperia: Partnerships* • Synchronous learning delivery model • Instructor-led, supplemented by e-learning *Selected Enhancing reach of quality management education 19
NIIT Uniqua - Business Process Training • Joint venture between Genpact & NIIT Partnerships* • Career, skills upgrade courses • Offers training to meet the growing requirement for professionals skilled in business/knowledge process outsourcing sectors *Selected Creating skilled workforce for the ITES sector 20
ILS: Our Reach • India : 631 Centers • China: 192 Centers • ROW: 159 Centers 21
SCHOOL LEARNING SOLUTIONS 22
Schools: Opportunity Space • Teachers Training - 10 million Teachers 24x7 3,000 schools • Vocational Education - is an emerging Collaboration Portal area ERP 100,000 schools Math LAB & Science LAB IT Education Class Room 1 Mn schools Products and services for improving school education 23
SLS: Our Reach 9,591,463 Students 396,449 Teachers 107,209 Nodes 23,936 Hrs of Content 45,685 Private and Government Schools Instructors Private Schools 16,689 Schools Cumulative NIIT has the widest reach in the market 24
NIIT nGuru Solutions Portfolio Interactive Class Room Math Lab Science Lab Quick School (ERP) Web & Multimedia curriculum Shared computing Widest range of offerings 25
CORPORATE LEARNING SOLUTIONS 26
Corporate Training Market US Corporate Training Spending 58.5 56.2 55.8 51.1 48.9 48.2 Global training spend $100Bn+ $Bn Source: IDC, Bersin & Associates 2005 2006 2007 2008 2009 2010 • Recovery underway as organizations move from crisis management to future planning • Increased share of E-Learning and Virtual- ILT in total training spend • Payroll costs as a percentage of Total training expenditure have gone down from 73% in 2003 to 56% in 2010 • Training is a specialized function and organizations are increasingly relying on specialists to outsource training • Europe outsourcing activity is accelerating faster than United States Corporate training represents a huge opportunity 27
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