NIIT Ltd. — Investor Presentation 2022

May 24, 2022

May 24, 2022

The Manager The Manager BSE Limited National Stock Exchange of India Ltd Corporate Relationship Department, Listing Department 1[st] Floor, New Trading Ring, Exchange Plaza Rotunda Building 5[th] Floor, Plot no C/1, G Block Phiroze Jeejeebhoy Towers, Bandra Kurla Complex Dalal Street, Mumbai 400 001 Bandra (E),Mumbai – 400 051

Subject: Presentation made to the Analysts and / or Institutional Investors Scrip Code: BSE – 500304; NSE – NIITLTD

Dear Sir,

Pursuant to the requirement of Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the presentation made to the Analysts and/or Institutional Investors on the Audited Financial Results of the Company for the financial year ended March 31, 2022.

The same shall be available on our website i.e. www.niit.com.

You are requested to take note of the same and inform your members accordingly.

Thanking you, Yours sincerely, For NIIT Limited

Deepak Bansal Company Secretary & Compliance Officer

Encls : a/a

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Financial Results FY22

May 24, 2022

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Environment

After rebounding to ~5.5 % in 2021, global growth expected to decelerate markedly in 2022. The outlook remains clouded by various downside risks (WB)

Real Estate Market in North America seeing moderation in sales velocity and price increases; however, activity levels expected to remain over longrun averages. In near term, return to full time jobs post the pandemic is impacting demand for courses for 2[nd]

Amidst uptick in consumer & business confidence, demand conditions resilient in India. Corporates remain cautiously optimistic on private consumption and investments

Hiring in IT companies at multi year high driven by growth in Digital, transformational orders and uptick in attrition. Banks picking up hiring for replacements and growth. Corporates remain optimistic despite emerging economic environment

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Macro uncertainty is likely to lead to slowdown in decision making. However, trend of outsourcing L&D to training specialists expected to continue driven by “War for Talent”, disruption in ways of working and need to cut costs.

Large opportunity in global corporate training and digital learning continues to attract interest from PE and strategic investors

careers

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2

FY22: In Perspective

Overall

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• Revenue at INR 13,775 Mn; up 44% YoY

• EBITDA at INR 2,999 Mn vs INR 1,652 Mn in FY21; up 82% YoY; EBITDA % at 22% up 456 bps YoY

• PAT at INR 2,262 Mn vs INR 1,430 Mn in FY21; up 58% YoY; EPS of INR 16.8 vs INR 10.1 in FY21; up 67% YoY

• • Operational ROCE at 79 %. ROCE at 19.4%

• During the year, completed buyback of 9.875 Mn shares & paid total dividend of INR 5.5 per share

• Board approved the Composite Scheme of Arrangement in Jan 2022 for reorganization of CLG and SNC businesses as separately listed companies

Corporate Learning Group (CLG)

• Revenue at INR 11,310 Mn up 35% YoY; Constant currency revenue growth @ 33% YoY

• EBITDA at INR 2,989 Mn; up 68% YoY

• EBITDA % at 26%; up 508 bps YoY

• Market entry into the Higher Education vertical in USA

• Added 16 MTS customers during the year; MTS customer tally at 66

• Revenue Visibility increased to $ 328 Mn from $ 287 Mn in FY 21; Strong pipeline

Skills & Career Group (SNC)

• Revenue at INR 2,465 Mn; up 99% YoY (excluding RPS, Revenue at INR 1,873 Mn up 51% YoY)

• EBITDA at INR 10 Mn compared to INR (132) Mn FY21; (excluding RPS, EBITDA at INR (124) Mn vs INR (132) Mn in FY21)

• • Revenue from StackRoute and TPaaS up 137 % YoY

• Continued Investment in NIIT Digital & TPaaS. Enrolments at 8,345 vs 2,601 in FY 21; up 221%

• Acquired RPS Consulting during the year

Sustained deal velocity; Growing contribution of new customers; Opportunity acceleration in India; Investment in new Biz models

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Q4 FY22: In Perspective

Overall NIIT

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• Revenue at INR 3,750 Mn; up 35% YoY and down 3% QoQ

• EBITDA at INR 732 Mn vs INR 823 Mn in Q3 FY22; up 6% YoY

• EBITDA % at 20% down 524 bps YoY and down 187 bps QoQ

• PAT at INR 674 Mn compared to INR 550 Mn in Q3; EPS of INR 5.0 vs 3.3 LY, up 53% YoY

• Corporate Learning Group (CLG)

• Revenue at INR 2,957 Mn up 24% YoY & down 1% QoQ; Constant currency growth @ 23% YoY & flat QoQ.

• EBITDA at INR 716 Mn; up 7% YoY and down 2% QoQ

• EBITDA % at 24%; down 392 bps YoY and down 37 bps QoQ

• Added new 3 MTS customers; 2 existing contracts expansions; 1 renewal; MTS customer tally at 66

• Revenue Visibility at $ 328 Mn; Strong pipeline

Skills & Career Group (SNC)

• Revenue at INR 793 Mn; up 97% YoY and down 9% QoQ due to seasonality

• EBITDA at INR 16 Mn compared to INR 92 in Q3 FY22

• Excluding RPS, SNC Revenue at INR 503 Mn

• Revenue from StackRoute and TPaaS up 97% YoY

Sustained deal velocity; Growing contribution of new customers; Opportunity acceleration in India; Investment in new Biz models

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4

Key Financials

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INR Mn Q4 FY22 Q4 FY21 YoY Q3 FY22 QoQ FY'22 FY'21 YoY
-
Net Revenue 3,750 2,788 35% 3,847 3% 13,775 9,597 44%
Operating expenses 3,018 2,098 44% 3,024 0% 10,775 7,945 36%
-
EBITDA 732 690 6% 823 11% 2,999 1,652 82%
- -
EBITDA% 20% 25% 524 bps 21% 187 bps 22% 17% 456 bps
-
Depreciation 157 157 0% 136 15% 577 595 3%
-
EBIT 575 534 8% 686 16% 2,423 1,057 129%
-
Net Other Income/ (Expense) 96 52 84% 76 26% 433 748 315 mn
-
Operational PBT 671 586 15% 763 12% 2,855 1,805 58%
-
Tax 14 (103) 114% (181) 108% (518) (337) 54%
Profit/ (loss) from discontinued
(1) (13) 12 mn (9) 7 mn (39) (31) -25%
Operations & Assets held for Sale
- -
Non Controlling Interests (10) (4) 6 mn (24) 13 mn (37) (6) 471%
PAT 674 465 45% 550 2,262 1,430 58%
EPS (INR) 5.0 3.3 53% 4.1 22% 16.8 10.1 67%
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• Revenue at INR 13,775 Mn up 44%

• EBITDA at INR 2,999 Mn @ 22% margin

• EPS includes impact of completion of buyback of 9.875 million shares during the year

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5

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Corporate Learning Group

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INR Mn Q4 FY22 Q4 FY21 YoY Q3 FY22 QoQ FY'22 FY'21 YoY
-
Net Revenue 2,957 2,386 24% 2,972 1% 11,310 8,356 35%
-
EBITDA 716 671 45 mn 731 15 mn 2,989 1,784 68%
- -
OM% 24% 28% 392 bps 25% 37 bps 26% 21% 508 bps
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FY22

• Revenue at INR 11,310 Mn up 35% YoY; Constant currency growth at 33% YoY

• EBITDA % at 26%; up 508 bps

• Revenue Visibility at $ 328 Mn

• Added 16 MTS customers during the year

• Entry into Higher Education Vertical

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Q4FY22

• Revenue at INR 2,957 Mn up 24% YoY; Constant currency growth at 23% YoY and flat QoQ

• EBITDA % at 24%; down 37 bps QoQ

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• Added 3 MTS customers; expanded 2 existing customer contracts and renewed 1; MTS customer tally at 66

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Skills & Careers Group

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INR Mn Q4 FY22 Q4 FY21 YoY Q3 FY22 QoQ FY'22 FY'21 YoY
-
Net Revenue 793 402 97% 874 9% 2,465 1,241 99%
- - -
EBITDA 16 19 3 mn 92 76 mn 10 132 108%
-
OM% 2% 5% -268 bps 11% 851 bps 0% -11% 1,107 bps
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FY22

• Revenue at INR 2,465 Mn up 99% YoY

• EBITDA at INR 10 Mn vs INR (132) Mn in FY21

• Organic growth at 51% YoY

• India Enterprise (GSI + GCC + Others): 11 Customers with revenue contribution over 50 million p.a. as compared to 6 customers LY (on like-to-like basis)

• Stackroute & TPaaS

• ✓ Contribute 41% to SNC revenue

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• ✓ Grew 137% YoY

• Ramping up investments in Digital Learning

Q4FY22

• Revenue at INR 793 Mn up 97% YoY; down 9% QoQ due to seasonality

• EBITDA at INR 16 Mn

• StackRoute and TPaaS grow 97% YoY

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7

Balance Sheet

As on Mar '21	INR Mn	As on Dec'21	As on Mar'22
285	Equity	267	268
16,120	Reserves and Surplus	14,483	14,885
**16,404 **	Shareholders' Funds	14,750	15,153
**34 **	Non Controlling Interests	42	40
**280 **	Loan Funds	122	91
**16,717 **	Total Sources of Funds	14,914	15,283
**2,864 **	Net Fixed Assets (incl. CWIP)	3,641	3,615
**283 **	Right of use- Assets	176	152
(300)	Lease Liabilities	(192)	(162)
**152 **	Deferred Tax Asset net of Liabilities	146	293
1,456	Accounts Receivables	2,154	1,886
13,965	Cash and Cash Equivalent	12,266	12,525
2,790	Other Current Assets	2,726	2,598
**18,211 **	Current Assets	17,147	17,009
(4,493)	Current Liabilities	(6,005)	(5,623)
**16,717 **	Total Application of Funds	14,914	15,283
34.8%	Operational ROCE %	77.7%	79.0%
10.1%	ROCE%	16.6%	19.4%

• Re-grouped for like to like analysis

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• Strong cash and liquidity position. Cash & Equivalents of INR 12,525 Mn

• Utilized INR 3,672 Mn for Buyback and Dividends paid during the year

• DSO improved to 48 days vs 54 days YoY

• Operating Cash Flow at INR 2,898 Mn and FCF at INR 2,639 Mn during the

year

• Operating ROCE improved to 79% vs 34.8% YoY

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NIITians

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3,104
2,832
2,661
2,579
2,531
Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22
Headcount up 272 QoQ and up 573 YoY
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* excluding project retainers

Share Holding Pattern

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32.0% 29.4% 29.9% 30.4% 31.3%
11.3% 12.1% 11.3% 11.7% 12.1%
22.6% 23.2% 23.6% 22.8% 21.5%
34.2% 35.3% 35.1% 35.1% 35.0%
Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22
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Promoters FPIs

DIIs

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Individuals and Corporates

• No of shares outstanding as of March 31, 2022 at 133.87 million

• This includes impact of buyback of 9.875 Mn shares and conversion of ESOPs during the year

10

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Thank You

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