Niit Tech

NIIT Technologies Ltd. Prepared by – Harmeet Singh Brief Overview of the Company: • •

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Global Company - A USD 225 million global eBusiness Solutions Corporation, with well balanced revenues from its Software Solutions and Knowledge Solutions. The genesis of NIIT Technologies can be traced to the mid ’80s, when a software arm of NIIT Limited was created to cater to the demands of an Indian market just awakening to computerization. Year 2002 marked a significant milestone for NIIT’s software arm— for the first time, it notched up revenues higher than that of the education division. This triggered the move to establish NIIT Technologies as a separate company. A restructuring exercise initiated in 2003, resulted in the creation of NIIT Technologies in June, 2004. Today, NIIT Technologies ranks among the Top 20 IT Solutions providers from India, with a broad portfolio of offerings and a significant stake in verticals such as Banking Financial Services & Insurance, Travel & Transportation and Retail & Manufacturing.

Key People Rajendra S. Pawar : Co-Founder, Executive Chairman and Managing Director • Arvind Thakur : Chief Executive Officer, Joint Managing Director, Whole-Time Director and Member of Shareholders & Investors Grievances Committee

Industry Rankings • • • • • • • •

Ranked amongst India’s Top 20 IT Software Services Exporters by the NASSCOM 2007 survey Ranked among India’s Most Respected Companies in the IT Sector (Businessworld 2006 survey) NIIT SmartServe ranked amongst the global Outsourcing Top 100 companies by IAOP NIIT Technologies ranked in the DQ-IDC Best Employer Survey 2005 list Declared ‘Business Superbrand’ by the Business Superbrands Council 2004-2006 NIIT GIS awarded the ESRI high achievement award for Asia Pacific 2004 and 2005 NIIT SmartServe ranked amongst India’s Top 10 employers in Dataquest BPO Employee Satisfaction Survey, 2004 and 2005 Ranked amongst ‘Top 25 Great Places to Work’ (BusinessWorld Survey) 2003

Business Solutions: NIIT Technologies focuses on the well-defined industry verticals of • Banking & Financial Services • Insurance • Travel & Transportation • Retail • Manufacturing • eGovernance. The services offered are in

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Application Development and Management Enterprise Solutions including Managed Services( launched in 2006) Business Process Outsourcing.

It has achieved ISO 9001:2000 compliance, get assessed at Level 5 of the SEI-CMMi and People CMM frameworks and bag the ISO 27001 information security management certification.

Major Customers: Major global customers include ING Group, SEI Investments, Channel 4, Ministry of Defense, Singapore, Office Depot, Marks & Spencer, Singapore Airlines, Citibank, Deutsche Bank, IBM, Microsoft, Sony, World Bank, Oracle Toshiba and Toyota Motors. Partnerships include: IBM, Microsoft, Oracle, Sun Microsystems, BEA, Compaq, Siebel.

Major Events in the company (M&A etc.): NIIT Technologies listed in Asia's 200 Best Under a Billion companies Forbes, September, 2007

Acquisition: ROOM Solutions

Inorganic growth, an important element of the growth strategy of NIIT Technologies, received fresh impetus during 2006-07, when the company acquired ROOM Solutions, a leading name in the Insurance market in the UK. The acquisition of the London headquartered, US$25 million Insurance major, strengthened NIIT Technologies’ presence in the vertical by bringing in deep domain expertise in the commercial insurance space.

Financials:

Share Price: Around Rs. 375

Report card PE ratio

13.37

18/10/07

EPS (Rs)

28.30

Mar, 07

Sales (Rs crore)

84.98

Jun, 07

Face Value (Rs)

10

Net profit margin (%)

36.31

Mar, 07

Last bonus

1:2

23/05/07

Last dividend (%)

65

23/05/07

Return on average equity

37.26

Mar, 07

The company recorded revenues of US$ 137 million in 2005-06 and US$ 142.5 million in 2006-07 (till December 2006) and had an employee strength of 4,199 as on December 31, 2006.

Further Details: http://investing.businessweek.com/research/stocks/financials/financials.asp?sym bol=NITT.BO

Sources of Revenue:

Company Strategy: It has a strong vertical-focussed strategy that helps it to address different industry segments such as banking and financial services, insurance, transportation, retail and manufacturing.The company has formed alliances with reputed global IT companies such as Microsoft, IBM, Oracle, SAP, Informatica and Metalogic. NIIT Technologies has followed the strategy of acquiring IT companies and by entering collaborations in various countries to increase its presence in the EU. Pursuing its strategy of inorganic growth in the EU, the company has acquired companies such as ADS in Germany. Further, NIIT Technologies has been able to leverage the strengths of its acquired companies. subsidiary, NIIT SmartServe Limited UK, which was incorporated in May 2005. In May 2006, NIIT Technologies Limited UK acquired a majority shareholding in ROOM Solutions, a leading supplier of IT solutions to the commercial insurance market in the UK.This acquisition is critical to the company’s strategy of expanding its company’s commercial insurance business in the UK and Europe.This acquisition will facilitate NIIT Technologies Limited UK to provide new range of products and services that will help underwriting organisations to effectively face and surmount the challenges

posed by increasingly demanding regulatory regimes. NIIT Technologies UK, also plans to expand ROOM’s current portfolio of services to the USA and Bermuda.

Latest Information: Carlyle, TPG In The Fray For NIIT Tech 09/28/2007 NIIT Technologies Ltd. is understood to be in early talks with The Carlyle Group and TPG for the sale of a majority stake in the company. Industry sources said that a strategic investor was also believed to be interested in the transaction. The promoters currently hold 40% in NIIT Technologies and sources said they may sell anywhere between 25% and 40%. This would trigger an open offer, where investors can buy an additional 20% in the company. “As communicated earlier, from the time of demerger in 2004, NIIT continues to hold a 25% stake in NIIT Technologies (NTL), with a vision to attract strategic partners, and if required, to help NTL with its next level of growth. There is no change in that position and no specific transaction to report. NIIT Tech is not in talks with Carlyle and TPG for selling 25% stake,” an NIIT Technologies spokesperson said. NIIT Technologies Joins IATA as Member of Strategic Partnerships Programme 09/11/2007 NIIT Technologies Ltd. announced that it has joined the International Air Transport Association's (IATA) Strategic Partnerships programme. In addition, NIIT will also participate as a StB Preferred Partner in the IATA e-Freight initiative. The e-freight programme, which forms part of IATA's strategic Simplifying the Business initiative, is designed to free air cargo of up to 38 documents that are exchanged between various parties including, shippers, airlines, freight forwarders, handling agents, import/export brokers and customs. By joining the IATA e-Freight initiative, NIIT Technologies has demonstrated that it is not only able to offer enabling technology for the global industry, but also a consistent commitment to e-freight solutions that dramatically reduce complexity and paper-based processes.