NASDAQ: NTWK NETSOL Technologies Investor Presentation Najeeb Ghauri, Founder, Chairman & CEO Roger Almond, CFO July 2018 Jeff Bilbrey, President, North America
NASDAQ: NTWK Safe Harbor Statement This presentation may contain forward- looking statements relating to the development of NETSOL Technologies’ products and services and future operating results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe," "expect," "anticipate," "intend," variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. Any forward-looking statements contained herein speak only as of the date hereof. The Company undertakes no obligation to update or review any forward-looking statements. This presentation may reference non-GAAP measures such as EBITDA. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. The Company uses EBITDA as a measure of the Company’s operating trends. Investors are cautioned that EDITDA is not a measure of liquidity or of financial performance under Generally Accepted Accounting Principles (GAAP). The EDITDA numbers presented may not be comparable to similarly titled measures reported by other companies. EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in the Company’s SEC filings. NETSOL TECHNOLOGIES 2
About NETSOL Leading ading provider ovider of enterprise terprise software tware solutions utions serving rving the e globa obal l leasi asing ng and finan nance ce industry dustry NETSOL TECHNOLOGIES 3
NASDAQ: NTWK Overview Recogni ognized zed leade ader in in asset et finance nance and leasi asing ng software are • Numerous multi-country implementations Highl ghly competitiv etitive portfol tfolio of of softwar are solution utions • Leading enterprise software platform serving critical business functions Past R&D conve verting rting to new licens cense e and servi rvices ces reve venue nue • Securing large value projects with average deal size increasing • Market endorsement by blue-chip multinationals on next- generation product, NFS Ascent™ Offsho shore re deliver elivery y model el • Talented team of offshore experts builds leverage in model 7 13 1350 50+ 20 200+ 0+ Global Global Team of Global Client Delivery & Support Experts Base Centers NETSOL TECHNOLOGIES 4
NASDAQ: NTWK Our Markets Strong Relationships with 200+ Clients Across Market Verticals Auto Fi Finance nce & Le Leasi sing ng Bank k & Asset t Fi Finance ce Equipment ent Fi Finance ce NETSOL TECHNOLOGIES 5
NASDAQ: NTWK Experienced. Proven. 40+ Years in The Americas Equipment Technology Asset Finance Finance Finance 25+ Years in Europe Auto/Captive Big Ticket Wholesale Finance Finance Finance 20+ Bank Owned Years in The APAC Lending Successful Global Project Users Connected Interfaces Portfolio Managed Clients Implementations Success Rate Globally Globally 200+ 100% $200B+ 300+ 25K+ 7K+ NETSOL TECHNOLOGIES 6
NASDAQ: NTWK Our Next-Gen Enterprise Software Solution Next Generation Enterprise Solution mPOS mAC Web mD Desktop mAU mFI 6 NETSOL TECHNOLOGIES 7
NASDAQ: NTWK NFS Ascent: End-to-End Solution WFS LOS CMS Wholesale Finance Loan Origination Contract Management System System System Automat mates es and manage ages s the Web and mobile le-based ased applica ication tion Manage ages s and mainta tain ins s detailed ailed • • • ent ntire re lifecy cycl cle tha hat t ena nables les rapid pid da data ta capt pture re at credit dit con ontra racts ts thr hroug oughou hout t the heir r the point t of sale lifecy cycle cle • Powerful ful floor or plannin nning g tools • Intuit itiv ive user experie ience nce • Flexibl ible service ice base sed d archit hitectur ure • Dealer ler & i invent ntor ory financ ncing ing • Flexibl ible workflow flow manage geme ment nt • Suppor port for asse set & n non-asset sset base sed d • Busin iness ss proce cess ss design signer financ ncing ng • User-de define fined d financial ncial products ucts • Comprehe hensiv nsive contr tract ct • Custom omizable izable scoring ing models ls manage gement nt • Automated ted decision ision-ma making ing • Global l standar ndards ds compliance liance NETSOL TECHNOLOGIES 8
NASDAQ: NTWK Expanding Revenue Base Long ng-te term rm Contracts tracts Crea eate te St Stable ble Ba Base e to Bu Build ild Upon $100 million NFS Ascent TM contract underway $16 million NFS Ascent TM contracts in Asia $4 million New NFS TM contracts in China $3 million New NFS TM contract in Indonesia Does not represent all deals. Provided for Illustrative purposes. NETSOL TECHNOLOGIES 9
NASDAQ: NTWK $100 Million Ascent Contract Largest Contract in NETSOL‘s History Implementing in 12 countries: Upgrading existing NFS to NFS ▪ Ascent and expanding into one new country Maintenance recognized over 10-year period, increasing with ▪ each successful implementation Services and customization work will likely grow; provides for ▪ further potential upside in the contract In Oct. 2017, secured amended contract for ~$9.1 ▪ million in additional future rev. on top of original contract value Strong endorsement ent from m long-standing client Provides top- tier reference for NFS Ascent platform’s ability ▪ to cater to complex regional requirements Leveraging endorsement to create strong interest from ▪ existing and new clients seeking enhanced competitiveness by migrating to next generation solution suite *$100 million based on license, maintenance and anticipated services to be rendered to each country NETSOL TECHNOLOGIES 10
NASDAQ: NTWK Multiple Vectors for Growth and Expansion Land & Expand with New and Emerging Market & Next Generation Continued Support of NFS, Existing Customers Homegrown System Updates NFS Ascent ™ Solution LeaseSoft and LeasePak Global presence and local Wealth of knowledge Established upgrade Continued support on ✓ ✓ ✓ ✓ expertise to capture applied to future roadmap pathway for existing different solution future sales opportunities needs and new upgrade clients to NFS Ascent models ensures paths in emerging markets flexibility in serving Robust client track record Current implementations different market ✓ ✓ to drive new business Cost arbitrage gained from provide strong reference segments in varying ✓ capitalizing on delivery point for new clients maturity lifecycles U.S. market is a through a developing ✓ significant new growth nation with cutting edge Large multi-country, Leasing and financing ✓ ✓ opportunity resource pool multi-million dollar growth plays important opportunities trend Strong Pipeline Across Geographies NETSOL TECHNOLOGIES 11
NASDAQ: NTWK Annual Revenue Growth License $65.4M $64.6M Maintenance Service $10.0 $18.5 $51.0M $6.3 $13.7 $14.5 $36.3M $12.6 $5.4 $10.5 $40.9 $32.4 $32.1 $20.4 2014 2015 2016 2017 NETSOL TECHNOLOGIES 12
NASDAQ: NTWK Quarterly Performance Revenue nue Improving quarterly financial performance ▪ Service Maintenance License Initiated new productivity and cost $17.9M ▪ $17.0M reduction initiatives in fiscal Q2-17 $14.5M $14.4M $2.6 $5.7 $12.8M $0.4 $3.3 $0.3 $3.8 o Total savings now at $6.2 million with $3.7 $3.6 $3.6 $3.6 an anticipated reduction of more than $7.0 million through fiscal 2018 $10.6 $10.3 $8.9 $8.6 $7.6 Growing non-GAAP adjusted EBITDA, ▪ which is a good proxy for cash earnings Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Stabilized cost structure can support a ▪ Non-GAA AAP P Adj. EBITDA significant more amount of revenue $4.3M without incremental investment $2.1M $2.0M $1.0M $0.9M Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 NETSOL TECHNOLOGIES 13
NASDAQ: NTWK Key Highlights Global opportunities for growth ✓ Capital structure that is attractive to investment today ✓ Offshore delivery builds leverage in model ✓ Improving financial outlook ✓ Numerous multi-country implementations with global ✓ companies Average deal size is growing ✓ Favorable industry trends ✓ blueprint. ” “ Attractive valuation relative to peers ✓ Innovation is in our NETSOL TECHNOLOGIES 14
NASDAQ: NTWK Thank You Corporate Headquarters 23975 Park Sorrento Suite 250 Calabasas, CA 91302, USA Investor Relations Liolios Group, Inc. Matt Glover and Tom Colton 949-574-3860 investors@netsoltech.com Website www.netsoltech.com NETSOL TECHNOLOGIES 15
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