NetSol Technologies, Inc. Micro-Cap Virtual Conference

Awesome. Thank you everyone. Excited to be here. Excited to present. Just going to scan through our presentation, dive in here really quickly. Safe harbor statements. I am sure you guys have seen a few of those. I will start first with who we are. NetSol is a provider of AI-enabled solutions and services powering OEMs, dealerships, and financial institutions to sell, finance, and lease assets. We talk about assets, and that term is a little bit vague. It can mean a whole lot of things. I will put it in kind of simpler terms. Those are generally automotive assets, so cars, vehicles, that is one example. The other kind of side of the business is the equipment side. The equipment category is massive, far larger than the automotive industry.

It includes everything from commercial trucks, tractors, construction equipment, medical lab equipment, any equipment that may be needed, yachts, boats, planes. There is a very broad range of assets that are leased and financed, and our technology helps to support that. A bit about who NetSol is. The business has been around since 1997, founded by 3 brothers. We IPO'd in 1999, via acquisition. We acquired a couple of companies in the early 2000s in the Americas, a couple in Europe. We can now say today that we have been in business in the Americas via those acquisitions for over 40 years, in Europe for over 30 years, and APAC, where the business was originally founded for well, since 1997. We work with a lot of major Fortune 500s. We will get to the logo slide here in a little bit.

In the industries that we work within, the global mobility and asset finance industries, these are massive trillion-dollar-plus markets. They are huge. Our enterprise customer base has very low churn. Some of our customers have been with us for almost the entirety of our existence. We have some that we acquired via the acquisitions that we made that I alluded to, that have been with us for nearly 40 years. Very sticky. The asset finance solutions, when someone purchases one of those are generational purchases. They run the entire operations of a bank, of an asset financer, lender. It is very difficult for them to move away from that software after it has been implemented.

We are going through a transition from being more of a services and license-based business to being more of a stable, recurring revenue, SaaS model of business, and we will talk a little bit more about that in a bit. That is another reason why we are excited to be here today. We are investing heavily in AI to help improve our margins as well as improve speed to market, improve our products, and so on. Then finally, I have got a note here just about our fundamentals. We are going to be talking today, unfortunately, only through Q3 of fiscal 2026. Our Q4 earnings will be next month, and so please stay tuned. There will be more news on the way. Some of the highlights from Q3 of fiscal 2026 was we hit a record number for our revenue, quarterly revenue, $19.8 million in Q3. That was up 13% year-over-year.

Our recurring revenue was up double digits as well. Gross margins was up, as well as EBITDA. A little bit about our market and our products. I will start on kind of the left-hand side of this diagram here. This is our Transcend platform, and this represents everything that we offer to our customer base. On the left-hand side here, you will see something called Transcend Retail. This is one of the two kind of primary products that we offer within the platform. Transcend Retail is a digital retail solution. To put this in simple terms, say you were shopping for a vehicle. You were going to purchase a BMW, and you go to your local dealership's website. You may be interacting with our software already at that point once you hit their website.

That smart asset discovery, selecting which vehicle that you want that is on their lot, then applying for pre-approval. Submitting your credit scores, so on and so forth. Submitting that deal to a dealer who then receives the lead in their screen. That dealer sales manager might see that lead and say, "Okay. I see Michael has a credit score of 800. He is applying for a lease of this M3. Here is all the terms, the conditions, how many miles that he is planning on driving." Then the discussion around F&I, any add-ons that you might need to protect your paint, for instance, or what have you. That gets negotiated. That deal could happen completely online.

You could go end-to-end, meaning you could purchase the vehicle completely online using our software, or like many of us, like myself, I probably want to go in and actually test drive the car, see it in person, see if I like it. You might go to the dealership, and at that point, the dealer will meet you at the door, already have all of your information. You can complete that transaction in person as well. We call it omnichannel retail. That is the simple term there as to what we are helping to provide. That is only the first part of the journey. The second part of the journey is what happens to that loan or lease, okay? That is the financing component of that.

Once the deal has been structured, it gets sent to what we have here is our Transcend Finance solution that is being utilized by a bank or maybe a captive finance company like BMW Financial Services, for instance. They could be utilizing that platform to help with credit decisioning and underwriting of the loan, contract booking and activation, service and billing, making sure that the payments are being made, they are being made on time, making sure that taxes are being structured correctly and being paid on time, right? If there is an issue with payments not being made or missed, what happens then? Our platform actually helps solve that issue for that bank, for that lender. Then finally, lifecycle intelligence. You are coming off your lease. It has been 3 years, 5 years, right? What happens to that asset then? Does it get brought back to the dealership fleet?

Does it get sold to the person who has been utilizing it for the last few years? That is what our platform helps to support, right? So it is this kind of a circular infinity shape here representing that life cycle. On the right-hand side, you will see some stats about the metrics for the markets that we are in. I think the big point here is these are massive growing industries. You can imagine all the investment in things like infrastructure globally. We are helping to play a major role in that, as well as the automotive industries are growing quickly as well, both in the U.S. and abroad. So a bit about our global presence. Again, this is unfortunately as of fiscal 2025, so last fiscal year. So this is June 30th of 2025. This is a breakdown of our revenue over the course of that year.

Stay tuned, like I said, for September. We will have our fiscal 2026 earnings call, and we will go through our K then, and all of the results there. I will start on the left-hand side with the APAC market. I think I mentioned it earlier. The business was originally founded in the APAC market in Asia. So we were really early to the market, right? Because of that, we were able to really build a very strong foundation in Asia. We have continued to grow that market share. So I would say significant market presence is probably an understatement in that market. We are one of the dominant players across Asia. We have contracts with multiple tier 1 automotive OEMs and captives. One of the interesting stories that we have here, we were one of the first companies into China. We got in there very early on.

I think it was through Mercedes. I am not 100%, so do not quote me on that one. But, I think it was through Mercedes. We got there very early on. They were one of our first customers that were helping to establish operations in China. So these European manufacturers and captives really starting to build a banking division in China, okay? We were early there. The Chinese government actually locked down the number of providers who could operate within that APAC market. So today, we are actually one of a few companies that actually does support the Chinese market. We have about a 75% market share. That sounds kind of daunting when you say, "Well, how do you grow in that market?" We have all these new OEMs that are building operations now outside of China, and they are taking us with them.

Think about all of the Chinese EV companies. They have built a massive presence in China. Now they are looking at Europe, they are looking at North America, South America, Latin America. They are looking at other parts of Asia as well. We are helping to support operations as they move outside of the Chinese market, outside of the domestic Chinese market, and set up operations elsewhere. Europe, interesting story here as well. We had some acquisitions there. Like I said, I think earlier, we have been there for over 30 years. This market operates slightly differently than I would say some of the other markets, very heavily reliant on brokers. That is a major component of our go-to-market. We now offer a broker portal that helps those brokers integrate directly with the lenders. We also have a lender portal, right, to help facilitate those transactions.

Saw decent revenue growth last year, 22.4% year-over-year. We are pretty happy with that. North America on the far right-hand side. This is the largest asset finance market. It is also the most competitive by far. It is also the most heavily invested and the most probably risk-averse market, too. That has been, I would say, a little bit of a challenge for us in the long term. I do feel like we are getting close to turning the page on that. I think that there will be. We are really excited about North America and the growth potential there. We saw 102% revenue growth year-over-year in fiscal 2025. We had a 29.1% annual CAGR over 14 quarters. Via acquisition, we have got over 40 years of experience in that market.