NETSOL Technologies. Investor Presentation. Najeeb Ghauri, Founder, Chairman & CEO Roger Almond, CFO Jeff Bilbrey, President, North America.

Transcription

1 NETSOL Technologies Investor Presentation Najeeb Ghauri, Founder, Chairman & CEO Roger Almond, CFO Jeff Bilbrey, President, North America July 2018

2 NETSOL TECHNOLOGIES 2 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.

3 NETSOL TECHNOLOGIES 3 About NETSOL Leading provider of enterprise software solutions serving the global leasing and finance industry

4 NETSOL TECHNOLOGIES 4 Overview Recognized leader in asset finance and leasing software Numerous multi-country implementations Highly competitive portfolio of software solutions Leading enterprise software platform serving critical business functions Past R&D converting to new license and services revenue Securing large value projects with average deal size increasing Market endorsement by blue-chip multinationals on nextgeneration product, NFS Ascent Offshore delivery model Talented team of offshore experts builds leverage in model 7 Global Delivery & Support Centers Global Team of Experts 200+ Global Client Base

5 NETSOL TECHNOLOGIES 5 Our Markets Strong Relationships with 200+ Clients Across Market Verticals Auto Finance & Leasing Bank & Asset Finance Equipment Finance

6 NETSOL TECHNOLOGIES 6 Experienced. Proven. 40+ Years in The Americas Equipment Finance Technology Finance Asset Finance Auto/Captive Finance Big Ticket Finance Wholesale Finance 25+ Years in Europe Bank Owned Lending 20+ Years in The APAC Portfolio Managed Globally Successful Implementations Global Clients Project Success Rate Users Globally Connected Interfaces $200B % 25K+ 7K+

7 Our Next-Gen Enterprise Software Solution Next Generation Enterprise Solution mpos mac Web Desktop md mau mfi 6 NETSOL TECHNOLOGIES 7

8 NFS Ascent: End-to-End Solution WFS Wholesale Finance System LOS Loan Origination System CMS Contract Management System Automates and manages the entire lifecycle Powerful floor planning tools Dealer & inventory financing Support for asset & non-asset based financing Web and mobile-based application that enables rapid data capture at the point of sale Intuitive user experience Flexible workflow management User-defined financial products Customizable scoring models Automated decision-making Manages and maintains detailed credit contracts throughout their lifecycle Flexible service based architecture Business process designer Comprehensive contract management Global standards compliance NETSOL TECHNOLOGIES 8

9 Expanding Revenue Base Long-term Contracts Create Stable Base to Build 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

10 NETSOL TECHNOLOGIES 10 $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 Stro g e dorseme t from o g-sta di g c ie t 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

11 NETSOL TECHNOLOGIES 11 Multiple Vectors for Growth and Expansion La d & Expa d ith Ne a d Existi g Customers Emergi g Market & Homegro System Updates Next Ge eratio NFS Asce t So utio Co ti ued Support of NFS, LeaseSoft a d LeasePak G oba prese ce a d oca expertise to capture future sa es opportu ities Robust c ie t track record to drive e busi ess U.S. market is a sig ifica t e gro th opportu ity Wea th of k o edge app ied to future roadmap eeds a d e upgrade paths i emergi g markets Cost arbitrage gai ed from capita izi g o de ivery through a deve opi g atio ith cutti g edge resource poo Estab ished upgrade path ay for existi g c ie ts to NFS Asce t Curre t imp eme tatio s provide stro g refere ce poi t for e c ie ts Large mu ti-cou try, mu ti-mi io do ar opportu ities Co ti ued support o differe t so utio mode s e sures f exibi ity i servi g differe t market segme ts i varyi g maturity ifecyc es Leasi g a d fi a ci g gro th p ays importa t tre d Stro g Pipe i e Across Geographies

12 NETSOL TECHNOLOGIES 12 Annual Revenue Growth License Maintenance $64.6M $65.4M Service $51.0M $10.0 $18.5 $6.3 $13.7 $36.3M $5.4 $12.6 $14.5 $10.5 $32.1 $40.9 $32.4 $

13 NETSOL TECHNOLOGIES 13 Quarterly Performance Improving quarterly financial performance Initiated new productivity and cost reduction initiatives in fiscal Q2-17 o Total savings now at $6.2 million with an anticipated reduction of more than $7.0 million through fiscal 2018 Growing non-gaap adjusted EBITDA, which is a good proxy for cash earnings Revenue $17.9M Service Maintenance License $17.0M $14.5M $14.4M $5.7 $2.6 $12.8M $0.4 $3.3 $0.3 $3.7 $3.8 $3.6 $3.6 $3.6 $8.6 $7.6 $8.9 $10.3 $10.6 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Stabilized cost structure can support a significant more amount of revenue without incremental investment Non-GAAP Adj. EBITDA $4.3M $2.0M $2.1M $0.9M $1.0M Q3-17 Q4-17 Q1-18 Q2-18 Q3-18

14 Key Highlights G oba opportu ities for gro th Capita structure that is attractive to i vestme t today Offshore de ivery bui ds everage i mode Improvi g fi a cia out ook Numerous mu ti-cou try imp eme tatio s ith g oba compa ies Average dea size is gro i g Favorab e i dustry tre ds Attractive va uatio re ative to peers Innovation is in our blueprint. NETSOL TECHNOLOGIES 14

15 NETSOL TECHNOLOGIES 15 Thank You Corporate Headquarters Park Sorrento Suite 250 Calabasas, CA 91302, USA Investor Relations Liolios Group, Inc. Matt Glover and Tom Colton Website