Professional Documents
Culture Documents
1
Agenda
Education & Training: Landscape
Company Overview
Individual Learning Solutions
School Learning Solutions
Corporate Learning Solutions
Year 2009-10
Future Direction
2
EDUCATION & TRAINING:
LANDSCAPE
3
Indias Demographic Dividend
Median Age Proportion Of Working Age
40 Group
37
34
64.8 65.0
25 63.5 64.2
62.6
61.6
59.9
India China UK USA 2005 2010 2015 2020 2025 2030 2035
-26% 38%
-24% -12%
No of illiterates (Mn)
396
79 73 89
0 3 8 18
36
22 28
5
7
NIIT In The Emerging Environment
NIITs Strengths Current Engagement
Long standing brand ILS: IT and Soft Skills
Best in class domain IFBI: Banking, Finance, Insurance
Skills partnerships Uniqua: BPO/KPO Skills
Development Content creation Imperia: Management education
capability English Plus: Communication
Processes & tools for skills
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 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
NIIT has emerged as the strongest brand in education and
training
8
NIIT In The Emerging Environment
NIITs Strengths Current Engagement
9
NIIT: Market Leader with Strong Credentials
11
IT Training To GTD
Training and IT
Services CLS
business Global Talent
CAGR >50% + Development
Key Competencies Company SLS
Developed:
- Pedagogy
- Management of ILS
distributed delivery Acquisition of EK
process,
- Partnerships Launch of IFBI
& Imperia
Pioneered Demerger of Launch of NEP
Franchising in IT Services & Training.com
Education IT Industry
Established IPO Slowdown Launch of
Uniqua
13
NIIT: Last 5 Year Financial Track Record
Rs Mn
Revenue EBITDA
CAGR: 28% 11,486 11,993 CAGR: 27% 1,569
10,068 1,186
7,951 1,036
603 774
4,507
FY06 FY07 FY08 FY09 FY10 FY06 FY07 FY08 FY09 FY10
* Proposed
14
Capital Structure
Total Capital employed Rs. 9,110 Mn
No of Shares 165.1 Mn
Face Value Rs. 2 per share Secured
Debt
28%
Reserves
52%
Unsecured
Debt
16% Equity
4%
Public, 34% Promoters,
34% Invest
ments
Cash 12%
7%
15
BUSINESSES
16
INDIVIDUAL LEARNING
SOLUTIONS
17
ILS - Opportunity Space
Total Working
Professionals
19m
19.2m
Working Target
Pros 2m 2.3m
Non-
Tech
Graduates Tech
0.4m
2.9m
3.3m
Non-Tech Tech
Students Students Students 13.6m
11.7m 1.9m
19
Individual Learning Solutions-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
47 57
*Selected
*Selected
*Selected
26
Schools: Opportunity Space
Portal
area
ERP
IT Education
Class Room
1 Mn schools
8,825,713Students
364,029Teachers
92,438 Nodes
21,644
Hrs of Content
22,891Instructors
15,908 Schools
Math Lab
Science Lab
Shared computing
30
Corporate Training Market
US Corporate Training Spending
55.8 58.5 56.2
51.1 48.2 Global training spend $100Bn+
$Bn
14% decline in overall training
spend in 2009
2005 2006 2007 2008 2009
Outsourcing saw a lower decline,
US: Spending On Outsourced as more companies chose to
Training 16.8 outsource
15.8 15.4
13.5 13.8 Recovery underway as
organizations move from crisis
$Bn management to future planning
31
Our Credentials
Largest 12000+
e-Learning Person Years
Content 50,000 Hrs of 20,000+ Training 150+ University
of
e-Learning Days per Year Courses Experience
Library
32
Corporate Learning Solutions
34
YEAR 2009-10
35
2009-10: The Year That Was
Beginning Of Year Environment End Of Year
Global economic turmoil; Signs of economic recovery,
widespread fear of economic globally
collapse Return of business confidence;
Recessionary trends in many projections of robust recruitment
economies; extreme risk aversion across sectors
Cut back on investments and Robust growth projections for
recruitment across sectors India, China and other EMs
NIIT
36
NIITs Initiatives In The Difficult Year
Introduction of new product lines including hardware &
networking, business intelligence, and ERP training to expand
its market
Re-alignment of products with changing market demand,
such as job focused short duration courses for ILS
Extended partnerships across domains, including IBM & SAP
in IT, 4 new management institutes, 14 banks and other
financials institutions
Thrust on government sponsored business, India and
neighboring countries
Strengthening the online learning library for corporate training
Aggressive cost and capex management
0%
Overall Margin
Other lead indicators
Improvement YoY (bps)
373 401 Accelerating pace of enrolments
278
67 growth - H1: 7% , H2: 20%
Closing order book - Rs 8418 Mn
EBITDA growth - 32%
Q1'10 Q2'10 Q3'10 Q4'10
38
53 Awards During The Year
CIO 100 Award 2009 BCG 50 Local Dynamos
The Gold for Excellence in E-Learning Award The ICT Gold Medal (Vietnam)
40
FY10: Financial Highlights
Consolidated System wide revenues Rs. 17,964 mn , up 6% YoY
EBITDA Rs. 1,569 million; up 32% YoY, EBITDA margin at 13% improved by 275
bps YoY.
EPS of 4.3 per share; Board recommends dividend of 70%,Rs. 1.40 per share
Key Drivers
Schools:
Net revenues at Rs. 2,000 million, up 45% YoY
EBITDA at Rs. 296 mn, up 38% YoY
Corporate:
Net Revenues at Rs 5,422 million
EBITDA at Rs. 437 million, up 139%.EBITDA margin improvement of 490
bps YoY
FY10 Q410
SWR Geo Mix: India 58%, ROW 25%,China 17% Enrolments - Overall up18% YoY . IMS +88%
Enrolments - Overall up 12% and Edgeineers +33%
IMS enrolments up 64% Placements up 13%
Placements up 25% MOU signed with IGNOU for joint programs
Pending Order Book Rs. 982 million, 70% Capacity utilization higher by 2% YoY
executable in 12 months
Launched SAP, IBM, Tally & comprehensive IMS
programs
Seat capacity added: 4% YOY
45
School Learning Solutions
Rs. Mn Q4'10 Q4'09 % G, YoY FY'10 % G, YoY
Net Revenues 321 442 -27% 2,000 45%
EBITDA 74 80 -7% 296 38%
EBITDA % 23% 18% 499 bps 15% -66 bps
FY10 Q410
Order Intake: Rs. 2,062 Mn 101 non Govt. schools added with an order
Schools added: 2,812 (334 non Govt. schools intake of Rs. 153 Mn
added) Non Govt. contributed 41% of revenue, grew
Non Govt. revenue grew 24% YoY, Govt. revenue at 16% YoY.
grew by 52% Margin improvement due to better business
mix and Non Govt. business growth
46
Corporate Learning Solutions
Rs. Mn Q4'10 Q4'09 % G, YoY FY'10 % G, YoY
Net Revenues 1,393 1,481 -6% 5,422 -6%
EBITDA 141 95 48% 437 139%
EBITDA % 10% 6% 371 bps 8% 490 bps
FY10 CLS Volume Growth % YoY
Online Learning Products business grew at 7% YoY 8.0%
6.0% 6.2%
Order intake for the year at $127.5 Mn 4.0%
1.3% 2.5%
3 Multi million dollar deals signed during the year 2.0%
0.0%
-2.0% Q1'10 Q2'10 Q3'10 Q4'10
-4.0%
Q410 -6.0%
47
New Businesses
Rs. Mn Q4'10 Q4'09 % G, YoY FY'10 % G, YoY
System wide Revenues 112 67 66% 379 -7%
Net Revenues 92 50 82% 296 -11%
EBITDA -22 -48 -152
48
FUTURE DIRECTION
49
The Building Blocks For NIITs Future Are In Place
50
Foundation Of Core Competencies
51
New Capabilities Added Will Propel Business Forward
52
Macro Trends & Business Indicators Are Favorable
Trends Indicators
Accelerating GDP growth Enrolments growth
Increased government Growth in placements
spending
Strong Order Book
Increasing profits of the
corporate sector Competitive wins
Increase in employee
salaries
53
A Renewed Focus On Growth
Expand
Coverage
Expanded
geographic
coverage
Expanded
Grow Horizontally demographic
coverage e.g.
Increase Depth District Learning
New Verticals and
New products - SAP, Centers,
Segments addressed
SAS, IBM New Delivery
English Plus
New tie ups & Formats
Training Dot Com Synchronous
partnerships - IGNOU
Delivery,
Greater alignment to Training.com
industry needs
Portion of OB > 1
year
Increasing proportion of
annuity based order book 42% 46% 52%
Rs Mn
55
ILS - Future Direction
56
SLS- Future Direction
Business Outlook
Growth in GSA segment
to remain strong
NIITs Initiatives and Responses
Growth in Private
Selectivity in government schools business; schools on improved
developing models to increase scope beyond ICT offering set
Increasing reach and sales force for eGuru Assured annuity revenue
Leverage School management services and from existing order book
teachers training
57
CLS- Future Direction
58
New Business- Future Direction
59
Summarizing
The emerging environment for Education and Training
presents a huge opportunity
NIIT is strongly positioned to take advantage of the
emerging opportunities
Our current businesses and competencies are aligned to
attractive markets
We have a strong financial track record, and in the past
have successfully dealt with market adversities and
uncertainties
Our recent and continuing initiatives to enhance growth
and returns will lead to a greatly improved performance
in the coming years
60
Leadership In The Century Of The
Mind
61