August 2016 Investor Presentation

NIIT Investor Presentation
August 2016
The Next Frontier www.niit.com

Agenda
NIIT: Company Overview
Corporate Learning Group

Skills & Careers Group
School Learning Group
Q1 FY17 Results Update
The Next Frontier: Future Direction
The Next Frontier 2 www.niit.com

NIIT: At A Glance
3 35
Million Learners
Lines of
Years of Trained
34 Experience
Business
in Training GURGAON
Headquarters
in Gurgaon,
India
2372 40
NIITians Countries
worldwide
NIIT: Business Structure
CORPORATE LEARNING SKILLS AND CAREERS SCHOOL LEARNING GROUP

GROUP (CLG) GROUP (SNC) (SLG)
Rs. 5,679 Million, 56% Rs. 3,326 Million, 33% Rs. 1,063 Million, 11%
Productivity Employability Academics
US, Europe India, China India
Managed Training Services Service Sector skills Teaching & Learning Solutions
Custom Projects Professional Life skills School Services
Percentages reflect share of Net Revenue for the business for FY16, and are rounded to nearest integer

NIIT: Our Credentials
20% higher
20% premiums for agents
1/3 Weve trained 10M Technology
1/3rd of the IT enabled over 10 M
on-boarded for a
workforce in India school children
leading Insurance
company
Reduction of learning Trained over 400 K

25% expenditures by 25% 4 MN 400K school teachers to
Skilled over 4 M
for a diversified students over the last leverage
Health and Well- 10 years across IT, ITES, technology
being company BFSI, Mgmt, Retail,
Telecom sectors
30% 370 B2C education

74% 74% students
Reduced time to prefer learning
proficiency by 30% in centers
mathematics
22 locations with NIIT Math
worldwide for a Lab
global Energy major
Corporate Learning Skills & Careers School Learning

NIIT: Capital Structure
Shareholding Total Capital Employed Rs. 10,423 million
Debt
21%
Promoters
34% Public Cash
43% Equity
8%
79% Net Current
Assets
FII 26%
10% DMF & FI
Fixed Assets
12% Investments*
10%
57%
No of Shares: 165.5 million Net Capital Employed Rs. 3,733 million**
As of June 30, 2016, *NIIT Limited owns 23.7% of NIIT Technologies, ** Net of cash and investment

Awards & Recognition
NIIT received
Dataquest
Top IT Highest Rated Training Brand Ranked 4th Best
NIIT Nguru
Training Company to
awarded as Best
Company work for in
Interactive
Award for the India. No 1
Solution Provider
20th in Education
by ASSOCHAM
consecutive and Training
year
31 Brandon Hall awards for NIIT USA ranked among the

Corporate Training. Earned 8 awards Top 20 Companies in Gold Chief Learning Officer Learning Elite Award
jointly with Shell, GE, MetLife, Zurich Training Outsourcing. for
NA and Westfield Insurance in 2015 the ninth consecutive year

Business Overview

Managed Training Services
CUSTOM CONTENT LEARNING LEARNING

AND CURRICULUM DELIVERY ADMINISTRATION
DESIGN
STRATEGIC LEARNING ADVISORY

SOURCING TECHNOLOGY SERVICES

Corporate Learning Marquee Customers

Skills & Careers: A New Way Of Learning

Skills & Careers: Expanding Product Portfolio
Current
2007-2012
Software Engineering
1982-2006 IT Banking & Finance
Banking & Finance Business Process Mgmt
Brick
IT
& Business Process Mgmt Management Education
Portal
Professional Life Skills CAMSS
Management Education Digital Marketing

E-Commerce
Explosion of diverse skill needs
Design
Changing learner needs: flexibility, on-demand learning Telecom/Mobility

Retail
Improved speed to market and scalability
Hospitality
Lower delivery cost, better capacity utilization

School Learning: Portfolio And Credentials
Teacher Training 10 Mn +
Students
Math Lab
400 k + Teachers
100 k + Nodes
School Consultancy
24 k + Hrs of Content
Quick School @
Cloud 45 k + Instructors
Private and Government Schools
Private Schools
IT, Web &

Multimedia 16 k + Schools
Cumulative

Impact Study Conducted by
Share of A grade increased from 38% to 46%
after nGuru MathLab implementation
STUDENTS TEACHERS PRINCIPALS
Grade 10 Examinations
% Respondents with positive rating on overall
experience with MathLab
BEFORE AFTER

Q1 FY17 Results Update

Environment
Global geo-political and economic uncertainty continues. Britains surprise vote to leave the European Union weighs on
consumer confidence and investor sentiment (IMF).
Volatility in forex rates and commodity prices impact corporate decision making.
US & European multinationals increasingly open to outsourcing L&D; significant opportunities in BFSI and in
Commodities sectors
In India, while GDP growth has remained strong, uncertainty on timing of reforms continues to impact investment
sentiment. Overall, new job creation remains weak
While Industry remains optimistic on net hiring, Net Employment Outlook at +35% is weakest since Q4 2013
(Manpower Employment Outlook Survey)
India's IT services industry projected to lose 6.4 lakh "low-skilled" jobs to automation in the next five years (HfS
Research). However, increasing pace of shift in demand for the IT services sector to digital services expected to drive
demand for Digital Skills
Hiring by banking sector expected to remain robust driven by network expansion by private banks, set up of new banks
and replacement of retiring staff by PSU banks.
Government continues to focus on skills development to drive sustainable and inclusive growth. Union cabinet has
approved an outlay of Rs 12,000 Cr over the next 4 years under PMKVY
MHRD has released the draft of new education policy 2016 based on the recommendations of TSR Subramanian
committee report. Shift in focus from quantity to quality and transparency
NIIT: Growth Platforms
Corporate Skills & Careers Schools

MTS Beyond IT & Digital nGuru
Transformation
31 global MTS Signed 139 Schools
customers vs 25 in Q1 Beyond IT contributes 45% in Q1FY17;
FY16 vs 39% LY addressed 3,102
Revenue visibility at digiNxt series launched schools
$ 208 mn
Capacity utilization of Own Focussed IP led
centers in India @ 35% in private school
Q1 FY17 vs 34% end FY16 business contributed
33% for Q1 FY17 up
6% YoY
Liquidity, Profitability and Capital Efficiency

Q1 FY17: In Perspective
Corporate Learning Group (CLG): Continued Strong performance
Revenue at INR 1,523 Mn up 19% YoY; Constant currency growth @ 13% YoY;
EBITDA margin at 12% (rock steady consistency)
31 MTS customers now contribute 91% to CLG revenue
Revenue Visibility at $ 208 Mn
Skills & Careers Group (SNC): Renewal phase
Revenue at INR 773 Mn (up 7% YoY vs -3% in Q1 FY16)
Revenue from Focus-Business up 11% YoY
Q1 FY17 EBITDA INR 34 Mn (4% vs 0% in Q1FY16), aided by stronger product mix
Beyond-IT contributes 45% to SNC revenue compared to 39% in Q1 FY16
School Learning Group (SLG): Move towards IP led asset light business model
Revenue at INR 307 Mn down 5% YoY. Achieved 7% EBITDA vs 6% in Q1 FY16 despite planned ramp down of
government school projects
Order Intake of INR 106 Mn; added 139 schools during the quarter
Focussed IP led private school business contributes 33%; up 6% YoY
NIIT: Growth & Profitability continues its march upwards Firmly & Steadily
Revenue at INR 2,604 Mn; up 12% YoY; Revenue from Focus-Business up 15% YoY
EBITDA at INR 222 Mn at 9% of revenue; up 151 bps YoY
PAT at INR 74 Mn vs INR 150 Mn in Q1 FY16 due to impact of forex loss and exceptional items contributing to
lower associate profit
Operating ROCE at 8%
Key Financials
INR Mn Q1 FY17 Q1 FY16 YoY Q4 FY16 QoQ
Net Revenue 2,604 2,332 12% 2,389 9%
Operating expenses 2,382 2,168 10% 2,256 6%
EBITDA 222 164 36% 132 68%
EBITDA% 9% 7% 151 bps 6% 298 bps
Depreciation 118 130 -9% 116 2%
Net Other Income -93 -14 Rs -79 mn -14 Rs -79 mn
Profit before Tax 11 20 Rs -10 mn 3 Rs 8 mn
Tax 8 6 Rs 2 mn 14 Rs -6 mn
Operational Net Profit 3 14 Rs -12 mn -11 Rs 14 mn
Share of Profits from Associates 71 136 Rs -64 mn 189 Rs -118 mn
PAT 74 150 Rs -76 mn 178 Rs -104 mn
Basic EPS (Rs.) 0.4 0.9 -0.5 1.1 -0.6
Sequential (QoQ) numbers may not be comparable due to business seasonality
Strong growth in Corporate Learning and back to growth of Skills & Careers Group helps offset planned ramp
down of government schools business
EBITDA improved by 151 bps YoY for FY16 on account of Business transformation and business mix
Depreciation down 9% YoY, reflecting planned reduction in capital intensity
OPAT & PAT impacted by adverse forex fluctuation (impact INR 33 mn for Q1FY17 against a gain of INR 19 mn in
Q1FY16, overall movement of INR 52 mn) and exceptional items contributing to lower associate profit
Business Mix
Q1 FY17 Q1 FY16
Schools Schools
12% Net Revenue
14%
Skills &
Careers Corporate Growth Skills & Corporate
30% 58% Corporate 19% Careers 55%
31%
Skills & Careers 7%
Schools -5%
NIIT 12%
Q1 FY17 Q1 FY16
EBITDA
Schools, Online, Schools,
(9) Growth 18
20
Corporate +28 Mn Skills & Careers,
Skills & Careers, Corporate, (3)
34 177 Skills & Careers +37 Mn
Schools +3 Mn Corporate,
Online -9 Mn 149
NIIT +58 Mn


Net Revenues 1,523 1,285 19% 1,360 12%
EBITDA 177 149 18% 158 12%
EBITDA % 12% 12% 0 bps 12% -1 bps
Revenue at INR 1,523 Mn up 19% YoY; Constant Number of MTS Customers
currency Revenue growth at 13% YoY 31
Strong momentum on back of 31 MTS customers 21
24
which now contribute 91% to CLG revenue 14

Two new contract wins and one major contract 6
9
extension from our existing MTS customers were

done during the quarter FY11 FY12 FY13 FY14 FY15 FY16
EBITDA consistent at 12%
Revenue Visibility at $ 208 Mn up 3% YoY

Skills & Careers Group

Net Revenues 773 725 7% 728 6%
EBITDA 34 -3 37 mn -19 53 mn
EBITDA % 4% 0% 487 bps -3% 696 bps
Revenue at INR 773 Mn up 7% YoY

Revenue from Focus-Business up 11% YoY
Beyond-IT contributes 45% to SNC revenue vs
39% in Q1 FY16
Successful turnaround on Revenue, EBITDA &
Cash
Launched digiNxt Series


Net Revenues 307 322 -5% 301 2%
EBITDA 20 18 15% 16 31%
EBITDA % 7% 6% 111 bps 5% 147 bps
Revenue at INR 307 Mn down 5% YoY;

Overall revenue impacted due to planned
ramp down of government school projects
EBITDA consistent at 7%
Revenue from Focussed IP led private
school business contributes 33% to SLG
revenue; up 6% YoY
Added 139 schools, Order intake of INR
106 Mn

People
2,732
2,695 2,705
2,466
2,372
Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17
Headcount up 94 QoQ and down 229 YoY

* excludes project retainers

Future Direction

The Next Frontier: Strategic Agenda
Technology
Enabled
Shared
Service
Platform

Future Direction

CLG: Corporate Training Spending
15%
12% Corporate Training Spend
10%
Spending Growth
10% Spending on Training

6%
in USA: $90+ Billion
Global Training Spend: Continues to Grow
2%
$135Bn+
-11% -11%
Increasing trend
2007 2008 2009 2010 2011 2012 2013 2014
towards outsourcing
Annual Spend/Employee ($)
Professional Scientific
1,748 and Technical Services Top 3 Content Areas
535 Manufacturing Mandatory And Managerial and Profession/ Focus on

Compliance Supervisory Industry specific
Technology/Telecom
1,392 Pharma/ Healthcare 1 2 3 Energy, Lifesciences
and BFSI Industries
Finance, Insurance,
1,107 Real Estate
Corporate Training market represents a huge opportunity

The Next Frontier 28 Source: Bersin By Deloitte, ATD www.niit.com
CLG: Learning Trends We Are Tracking
Technology Pedagogy Business

Flipped Classrooms Running Training Like a
Games
Curated Content (NIIT.TV) Business
Ubiquitous Learning
Today
Mastery Learning Instructor Quality

Video
Accelerated curricula Reinvention
Competency Based Design Learning Economics
Virtual Reality
Coming Soon
Augmented Reality &

Neuroscience Learning Insurance
Learner Aware Systems
Influx of startups

CLG: E.A.S.E. Platform
I need a one-stop shop

to get all my data so that I
can make business
decisions. My LMS wont
give me this.
Customer Demand
NIIT Solution

CLG: Managed Training Services
Delivering Efficiency and Effectiveness In Training

CLG: Managed Training Services
MTS Revenue (Rs Mn) Number of MTS Customers MTS contribution to CLG
5111 31
87% 90%
4253 24 79%
3148 21 72%
6x in 5 years 63%
2,174 14
1,544 9 43%
852 6
FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16
Increasing Differentiated Revenue Visibility at

contribution from competitive $200 Mn from existing
MTS positioning contracts
MTS continues drive steady growth for CLG business

CLG: Taking MTS to Next Level Of Growth
4 Comprehensive Engagements
3 Bid Process
Domain expertise
Management Global delivery capability
High Capability and
2 Productivity Pre-filter RFPs Service Maturity
Big ticket annuity
Contracting Maturity
Procurement contracts
1 Improve Win Rates
Efficiency Step up people Improve Book to Bill ratio
productivity and Higher Sales Productivity
optimization of effort &
Centralized program for resources through
ensuring efficiency in automation and tools
procurement of faculty, Improve margins for NIIT
facilities etc.
Increase value to
customer
Driving Scale and Profitability For CLG
Skills and Careers Group
Future Direction

2022 Projections: Huge Capacity Creation Required
Total supply by 2022

@ current capacity 61.5
(2013-14)
Addition to workforce 115

@ 12.8 million per year
Reskilling / upskilling 11X

8x
of 90% of existing 611
workforce (679 million) Source: McKinsey analysis;
Census 2011; ILO World
Development Indicators
Reduction due to 48
ageing/ retirement * 2012, NSDA data
Total demand by 2022 678
*Assuming that the existing workforce in the age group of 51-59 will not be re-skilled
Eleven-fold increase in capacity is required to meet aspirations

The Next Frontier
-10
10
20
30
40
0
Building,
31
Construction & Real
17
Retail
Beauty and
10
Wellness
Transportation &
12
Logistics
Furniture &
7
Furnishing
Handlooms &
6
Handicrafts
Sectors
Tourism, Hospitality
6
& Travel
6
Textile & Clothing
Skill Gaps: Sectorial Employment & Growth Opportunities
Domestic Help
Source: Sector wise Human Resource and Skill Requirements Reports, 2013 2022; NSDC
5
Security
4
Food Processing
4
Healthcare
36
Electronic & IT
4
Hardware
Education/ skill
4
development
Leather and
4
Leather Goods
4
Gems & Jewellry

Portfolio Expansion (Service Skills)
Auto & Auto

4
Top 10 sectors account for
Components
about 80% of requirements
Chemical &
3
Pharmaceuticals
Incremental Human Resource Requirements by Sector between 2013-22 (In Million)
Telecommunication
Construction
3
Material & Building

2
IT & ITES
2
BFSI
Media &
1
Entertainment
Market Leader
Agriculture
www.niit.com
SNC: Business Transformation
Skills
Technology
Service Integrated Marketplace
New India
B2B/B2C
Intensive /
with 360
One SNC Sector Multi
Structure China Skills business Partner
Modal
Ecosystem
IT,
IT, IFBI, India
Imperia, China
Non-IT Standalone Centre Everything Old
Centre B2B, B2C Driven In house Structure
Uniqua, NYJ ROW
Driven

Digital Transformation IT Sector
Global Technology and Business Services Spend
Traditional Tech
Global Technology and Business
Digital Tech 3% to 4% 4100 Services to Touch USD 4 Trillion by
+1400 3550 2025
+30%
80% 35% 60%
2757 -450 to -650
10% -15% -25% 100%
20%
Share of Digital Technologies to
15%-25% of 80% of new increase to 60%
90% traditional spend around 65%
spend saved by Digital 40%
going digital Technologies
2014 Traditional New Services 2020E 2025 E

50% - 60% of todays workforce
Spend Lines needs to be reskilled to be relevant
Evaporates by 2020
Source: IDC, NASSCOM

SNC: Digital Opportunity Landscape
Digital Creators ~400K
Market
Opportunity Digital Developers
~4 M
Digital Shapers
~ 40 M
Digital Workers
~400 M

SNC: Digital Transformation

Online Learning
Future Direction

SNC: Online Learning Market
Growth in Online Learning: 2015 India
India 55%
India part of a Flat World Fastest growing market
China 52% Global business model for Online Learning
Malaysia 41%
Romania 38%
Next battleground for
Online Learning
Poland 28%
Source: eLearningindustry.com

SNC: Delivery Transformation
5500+ Courses Avg. Session

Duration: 13 Min
Age Gender
161 Cities,
18-24: 65%, Male: 61%,
1965 Cities Female: 39%
24-34: 23%
Registered Users (000)
250+
90
Dec 31 June 30

SNC: 360 Degree Partner Ecosystem
Industry Demand Learner Needs

Certified Skills Learn
Source to Hire Get Certified
Skills Upgrade Get/Change Job
Get Promoted
B2B Engagement Multi Modal

Platform
Ecosystem Needs NIIT Managed Services

Brand Association
Reach
Building a Comprehensive Skills & Careers Ecosystem

SNC: Multi-Modal Platform
Channels
Own Brick, Partner Brick, Inside
Campus, Online Channel
Platform Modes
From Primarily a
Single Mode Brick- 1. On Demand E-Learning (Pure
Online)
and-Portal Business
2. On Demand MOOCs & Recorded
to 4 Channels
3.
Lectures
Live Synchronous Direct to
Device
Multi-Modal
Platform Based 4. Synchronous CR Mode (Cloud
Classroom)
Business 5. Local ILT
Modes 6. Flipped Classroom (Blended)
7. Immersive Project Based Learning
(StackRoute)

SNC: Online Learning Market
UG Students Fresh Grads Working Pros

(20 m) (6m/Year) (40m FY06-15)
Segment Specific Demand & Lead Generation Digital Led, On Ground Support
NIIT.tv Shared Engagement Platform with Free Courses & Services
CRM TRAINING.COM
Product/Program Specific Counselling & Sales
Adv
Courses Courses
Upsell
Prof Prof
Cert PGP Cert Dip
Future Direction

SLG: Focus Areas
Defocussed from Exited capex driven

government schools business models in
Be a School business private schools
Service Private Schools
(B2B)
Service Govt. No Nationally Dominant
Schools (B2B) Player in private schools
Large untapped
space with
opportunity in B2C space
comprehensive product
Service Private portfolio
Schools (B2B) Service Students (B2C)
Service Students Needs separate focus

(B2C) and attention
Restructured to unlock value

SLG: Next Frontier For B2B Business
CBSE
ICSE
~120K Private Schools
12%
2% IB
0.1%
Assets High capital intensity
State
Boards High people
86%
In School Service People dependence
Diminished value of IP
Linear, non-scalable
IP
B2B Business
Cloud IP IP driven
Remote Service Asset light
Technology intensive
People
Services Non linear, highly
scalable
Move to asset light, technology intensive, IP driven business model

SLG: K-12 Landscape
NIITs existing business

targets a portion of the
School Fee fee that parents pay to
schools.
Spend on L&D
Out of Spending outside schools

School Spend represents a large portion
of total spending related
to education and
development for kids
Subject Tuitions Test Prep Soft Skills Extra Curricular A B2C player has direct
access to this spending
*Representative
Large Untapped Opportunity in B2C Segment
SLG: B2C Opportunity
Practice tests
Testing platform
Question bank Skill gaps identification
Answer rubrics Learning path
Scoring
Data Analytics
Integrated Platform
E-books
Digital Content
Workbooks
Problem Gaps
Labs
Academic Results Skill Identification
Usage Flexibility Solution
Fixated on Content An integrated platform with
No Integration diagnostics that allows the learner
to individualize their learning path
SLG: Democratize Quality Education
Data Driven Platform

Leverage Existing Assets Learning Analytics
Students in Private (1.5Mn) and
Adaptive Learning
Government schools (2Mn)
students serviced by SLG
NIIT Students/Alumni
EDUTAINMENT
Schools IP
NIIT Brand USEFUL INFORMATION
Offline Reach
SELF-PRACTICE
SELF-ASSESSMENT
Monetization Models COLLABORATION
Freemium SELF-LEARNING
Subscription
Pay as you go TUTOR ACCESS
Product specific fees
E-MARKETPLACE
Opportunity to leverage existing assets to gain scale

Overall
Future Direction

Technology
Enabled
Shared
Service
Platform

You cant spell
TRAINING without
The Next Frontier www.niit.com www.niit.com

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NIIT Investor Presentation

The Next Frontier www.niit.com

NIIT: Company Overview

Corporate Learning Group

Q1 FY17 Results Update

The Next Frontier: Future Direction

The Next Frontier 2 www.niit.com

CORPORATE LEARNING SKILLS AND CAREERS SCHOOL LEARNING GROUP

Productivity Employability Academics

US, Europe India, China India

The Next Frontier 4 www.niit.com

Reduction of learning Trained over 400 K

30% 370 B2C education

Corporate Learning Skills & Careers School Learning

Shareholding Total Capital Employed Rs. 10,423 million

No of Shares: 165.5 million Net Capital Employed Rs. 3,733 million**

The Next Frontier 6 www.niit.com

31 Brandon Hall awards for NIIT USA ranked among the

The Next Frontier 7 www.niit.com

The Next Frontier www.niit.com

CUSTOM CONTENT LEARNING LEARNING

STRATEGIC LEARNING ADVISORY

The Next Frontier 9 www.niit.com

The Next Frontier 10 www.niit.com

The Next Frontier 11 www.niit.com

Management Education Digital Marketing

Changing learner needs: flexibility, on-demand learning Telecom/Mobility

The Next Frontier 12 www.niit.com

IT, Web &

The Next Frontier 13 www.niit.com

The Next Frontier 14 www.niit.com

The Next Frontier www.niit.com

Corporate Skills & Careers Schools

Liquidity, Profitability and Capital Efficiency

The Next Frontier 17 www.niit.com

The Next Frontier 20 www.niit.com

INR Mn Q1 FY17 Q1 FY16 YoY Q4 FY16 QoQ

which now contribute 91% to CLG revenue 14

extension from our existing MTS customers were

The Next Frontier 21 www.niit.com

INR Mn Q1 FY17 Q1 FY16 YoY Q4 FY16 QoQ

Revenue at INR 773 Mn up 7% YoY

The Next Frontier 22 www.niit.com

INR Mn Q1 FY17 Q1 FY16 YoY Q4 FY16 QoQ

Revenue at INR 307 Mn down 5% YoY;

The Next Frontier 23 www.niit.com

Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17

Headcount up 94 QoQ and down 229 YoY

The Next Frontier 24 www.niit.com

The Next Frontier www.niit.com

The Next Frontier 26 www.niit.com

The Next Frontier www.niit.com

10% Spending on Training

535 Manufacturing Mandatory And Managerial and Profession/ Focus on

Corporate Training market represents a huge opportunity

Technology Pedagogy Business

Mastery Learning Instructor Quality

Augmented Reality &

The Next Frontier 29 www.niit.com

I need a one-stop shop

The Next Frontier 30 www.niit.com

Delivering Efficiency and Effectiveness In Training

Increasing Differentiated Revenue Visibility at

MTS continues drive steady growth for CLG business