Investor Presentation May 2018
Agenda NIIT: Company Overview • Corporate Learning Group • Skills & Careers Group • School Learning Group FY18 Results Update Future Direction www.niit.com 2
NIIT: AT A GLANCE 36 3 Million Learners Lines of Years of Trained 36 Business Experience in Training GURGAON Headquarters in Gurgaon, India 40 2475 NIITians Countries worldwide www.niit.com
NIIT: BUSINESS STRUCTURE SCHOOL LEARNING CORPORATE LEARNING SKILLS AND CAREERS GROUP (SLG) GROUP (CLG) GROUP (SNC) Rs. 5,183 Million, 61% Rs. 2,729 Million, 32% Rs. 593 Million, 7% PRODUCTIVITY EMPLOYABILITY ACADEMICS US, Europe India, China India • • • Managed Training Services Service Sector Skills Teaching & Learning Solutions • • • Custom Projects Professional Life Skills School Services *SNC, including online www.niit.com
NIIT: CAPITAL STRUCTURE TOTAL CAPITAL EMPLOYED – RS. 9,044 MILLION SHAREHOLDING Debt 17% Public Promoters 38% Net Other 32% Assets, 15% Equity 83% Fixed Investmen Assets, FPI MF & FI ts*, 58% 27% 19% 11% No of Shares: 166.6 million Capital Employed In Operations – Rs. 2,491 million** *NIIT Limited owns 23.7% of NIIT Technologies www.niit.com ** Net of Cash (Rs 1291 million) and Investment
NIIT: OUR CREDENTIALS Technology 20% higher premiums 1/3 10M 20% We’ve trained enabled over for agents on- 1/3rd of the IT 10 M school boarded for a leading workforce in children Insurance company India Reduction of learning Trained over Skilled over 4 M 4 MN 400K 25% expenditures by 25% 400 K school students over the for a diversified teachers to last 10 years across Health and Well-being leverage IT, ITES, BFSI, Mgmt, company technology Retail, Telecom sectors 342 74% 30% 74% students B2C Reduced time to prefer learning education proficiency by 30% in mathematics centers 22 locations worldwide with NIIT Math for a global Energy Lab major Corporate Learning Skills & Careers School Learning www.niit.com
AWARDS AND RECOGNITION TOP 20 COMPANIES 58 BRANDON 2008 - 2018 IN GAMIFICATION, HALL AWARDS TOP 20 COMPANIES CONTENT 20 GOLD IN TRAINING DEVELOPMENT AND 20 SILVER OUTSOURCING IT TRAINING 19 BRONZE RANKED 4 TH NIIT Nguru HIGHEST NIIT received BEST COMPANY awarded as “B est RATED Dataquest ‘Top IT TO WORK FOR Interactive TRAINING Training Company’ IN INDIA. NO 1 Solution BRAND Award for the 20 th IN EDUCATION Provider” by consecutive year AND TRAINING ASSOCHAM 6 CHIEF LEARNING OFFICER LEARNING IN PRACTICE AWARDS 2014-2018 www.niit.com
Business Overview www.niit.com
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 programs Localization Services in Hours of custom content Training Days Global training delivery Global Network of 2500 Industry Honors and Awards Full time instructional developed annually 25 Languages delivered annually delivered annually in 40+ countries in 15 instructors designers languages www.niit.com 9
CLG: MARQUEE CORPORATE LEARNING CUSTOMERS www.niit.com
Running Training Like a Business It’s not about training. It’s about results. 30% 25% 40% 20% 40% NIIT’s application rollout Philips improved global NIIT’s onboarding program 20% increase in average Agents trained by the NIIT training for Shell delivery efficiency by 25% for AON Hewitt has productivity and ticket size of Transformative Agency Primavera has helped with NIIT’s unified resulted in these graduates business sold across 30 Model reported strong reduce time to proficiency Learning Administration being job-ready from day countries with 10% higher results within a quarter of in application training for processes in the very first one. This has not only retention over 1 year for Sales training with a 0.95% planners by 30% in 22 year of operation. reduced costs by 20% and Associates supported by the increase in weekly locations worldwide. training cycle time by 40%, NIIT enabled Global Partner average premiums and a but has also helped the Learning Solutions program 9.88% increase in weekly current in-house training average quotes. team of our customer save It’s not about training. It’s about 95% of their time to focus on training needs other results. www.niit.com than onboarding. 11
SNC: IMPROVING EMPLOYABILITY IN ASPIRATIONAL CAREERS ASPIRATIONAL Information Digital Data Science Banking & » Management Technology Marketing & Analytics Finance CAREERS Own Partner Inside Online » 4 CHANNELS Brick Brick Campus Channel On Demand E- On Demand Synchronous CR Live Synchronous Learning (Pure MOOCs & Mode (Cloud – Direct to Device Online) Recorded Lectures Classroom) Focus Geographies 7 MODES » India, China Immersive Project Flipped Classroom ILT Based Learning (Blended) (StackRoute) www.niit.com
SKILLS AND CAREERS: OUR REACH India: China: ROW: 227 40 75 www.niit.com
SCHOOL LEARNING: PORTFOLIO AND CREDENTIALS 10 Mn + Students 400 k + Teachers 100 k + Nodes 24 k + NEW Hrs of Content 45 k + Instructors 17 k + Schools Cumulative www.niit.com
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 www.niit.com 15
FY18 RESULTS UPDATE www.niit.com
ENVIRONMENT • The global economic upswing has become broader and stronger. With financial conditions still supportive, global growth is expected to improve to 3.9 percent rate in both 2018 and 2019. Advanced economies will grow faster than potential over the next two years. However risks are also increasing (IMF) • Downside risks include the possibility of financial stress, increased protectionism, and rising geopolitical tensions. Focus on reforms including improvements in education and health systems, high-quality investment, and labour market could yield sustained long term dividends (World Bank) • US unemployment rate near record lows at 3.9% even as AI, Robotics and Cognitive computing are changing business at an ever increasing pace, leading to a huge war for talent. Global corporate L&D spending continues to increase as technology disruption and regulation continues to drive demand for training. Share of spending outsourced to specialist training providers continues to go up • India GDP growth is expected to recover to 7.4% in 2018 and 7.8% in 2019 (IMF), after a successive decline over the last two years as economy recovers from short term disruptions due multiple transitions in the regulatory framework • Global IT Spending expected to grow 4.5% in 2018 to reach $3.7 Trillion, driven by projects in Digital business, Blockchain, IOT, ML and AI (Gartner) • Hiring by IT companies remains subdued. Net additions by major IT companies (Top 3) down more than 80% YoY in FY18 • Banks remain cautious on hiring. Increased demand for Sales and Customer relationship roles across BFSI sectors • Spending by schools temporarily impacted in traditionally strongest quarter on lack of clarity on regulation www.niit.com
NIIT: GROWTH PLATFORMS 61% CORPORATE SCHOOLS 32% SKILLS & 7% LEARNING CAREERS MANAGED TRAINING DIGITAL nGURU SERVICES TRANSFORMATION • 39 global MTS • DigiNxt courses added • 317 School contracts customers 1,800+ enrolments vs 392 in Q4 FY17 • Revenue visibility at • Beyond IT contributes • Go forward Focussed $218 million vs $199 40% vs 37% in Q4 IP led private school million in Q3 FY18 FY17 business contributed 86% • 3500+ learners on Training.com • Practice Plus platform launched. 1.9 lac users LIQUIDITY Net Debt: INR 401 Mn Down YoY vs INR 419 Mn PROFITABILITY EBIDTA: INR 221 Mn Up YoY vs INR 181 Mn CAPITAL EFFICIENCY ROCE: 13.9% Up YoY vs 9.4% www.niit.com
TRANSITION TO IND-AS CONCEPTS IMPACT AREAS • Retrospective application of all the standards • Recognition of Revenue basis fair value for unless exempted multiple deliverables • Concept of Substance over Legal form of the • Strategic Sourcing Revenue is recognized on Net arrangement basis • Certain optional exemptions are available for the • Recognition of Deferred Tax Liability on ease of transition to Ind-AS. Under this Fair undistributed profits of subsidiaries/ Associates Valuation of Land and Investments in Subsidiaries • Provision for doubtful debts – on “Expected Credit / Associates is under consideration. Loss” model as against “Incurred Loss” model. • Multiple deliverables in a contract are to be • ESOP expenses are recognized in P&L based on identified based on customer’s perspective and is Fair Value as per Black Scholes method. measured at its fair value. • Impact due to actuarial assumptions gets • Concept of Control over the entity as against classified in “Other Comprehensive Income” (OCI) majority shareholding to consolidate as subsidiary • Discounting of Long Term Assets & Liabilities to or associate. present value www.niit.com
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