Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (October 2007)
43 slides from Info Edge India's investor presentation, October 2007
Slide 1: Info Edge (India) Ltd. – India's Online Classifieds Company
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Slide 2: Safe harbor
Safe harbor Statements contained in this presentation concerning our growth prospects may constitute forward-looking statements. The Company believes that its expectations are reasonable and are based on reasonable assumptions. However, such forward looking statements by their nature involve a numbe
Slide 3: Key takeaways
Key takeaways • Rapid growth in Indian internet market • Clear and sustainable market leadership in online classifieds • Strong innovation pipeline for continuous differentiation • Robust financials with blue chip investors • Management depth for continued growth • Related diversifications • Externa
Slide 4: Six lines of business
Six lines of business Info Edge Recruitment & Careers Matrimonials Real Estate Launched in March 1997. 90% of Acquired in September 2004 Launched in Sept 2005 company’s net sales in Q2 FY08 No. 3 matrimony website in India Leader in emerging online No. 1 job portal in India – more 1.96 mm profiles e
Slide 5: Business environment
Business environment Macro Trends Outcomes Beneficiaries Strong Job Creation Sustainable Economic Growth Rapid Urbanization Burgeoning Middle Class Mobile work force, Buying Power nuclear families Changing values Favorable and lifestyles Demographics (54% < 25 years) Adoption of Technology 5 Source:
Slide 6: Addressable market growing
Addressable market growing Internet population Mobile users 60.0 250 54.0 Mobile Subscribers (Million) 50.0 200 Internet users (Million) 43.0 40.0 35.0 150 30.0 25.0 100 20.0 50 10.0 0.0 0 Mar-05 Mar-06 Mar-07 Mar 08 E Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Dec-06 Mar-07 Jun-07 Sep-07 Mobile Subcriber B
Slide 7: Company overview
Company overview • VC investment from – ICICI Venture in 2000 – Kleiner Perkins Caufield & Byers and Sherpalo in 2006 (Secondary) • 75 offices in 38 cities in India + 2 in Dubai • 1350 employees (~ 1000 in sales) • Financials (Quarter ended September 30, 2007) – Revenue (up 80% YoY) – USD* 14.7 mm –
Slide 8: Recruitment classifieds and services
Recruitment classifieds and services
Slide 9: Recruitment market
Recruitment market Over 330 universities and Recruitment solutions 17,600 colleges Over 3 mm graduates every year Over 120,000 IT professionals every year Over 1 mm Print employed by IT & Recruitment ITES consultants High attrition rates Online in the IT services sector range Other between 25-40% 35
Slide 10: Job Search
Job Search 100% 95% 94% 73% 80% 62% 61% 60% 53% 59% 60% 53% 48% 49% 37% 40% 20% 0% Emailing Job search Instant Check Online Chatting messaging new s music % undertaking activity 2007 % undertaking activity 2006 Source : Juxtconsult India Online Report May 2007, Population surveyed ~ 26,000 Job Searc
Slide 11: Revenue streams
Revenue streams • Major – Job listing and Employer Branding / Visibility – Resume Database Access • Others – Job Seeker services – Advertising other than for jobs – Mobile revenues – Resume short listing and screening – Google Ad Sense 11 11
Slide 12: Revenue Model
Banner Revenue Model Ad Panels Job Seeker Services Mobile Revenues 12 12
Slide 13: Revenue Model
Banner Revenue Model Ad Featured Job Listings Company Google Ad Sense 13 13
Slide 14: Banner Ad RESDEX
Info Edge India India’s Online Classifieds Company la Don't let jobs wait © naukri., com Wit you on your PC. Thdia’s No.1 Job Site Recruitment Solutions HR Zone eLearning Center - Take a Tutorial Now Job Seeker Click here From USA: Call us toll free at 1-866-557-3340 From UAE : Call 04-3602838 |Resd
Slide 15: Strategy – strengthen virtuous circle
Strategy – strengthen virtuous circle Naukri.com benefiting from a virtuous cycle Imperatives o Hire and retain quality talent So we get o Product and the most technology clients We’ve got the innovation most jobs o Superior sales and service execution So we get the most o Build the brand response S
Slide 16: Intense competition has resulted in market expansion
Intense competition has resulted in market expansion • Online – Monsterindia and Jobsahead – Timesjobs – from Times of India, India’s leading newspaper group – Others – Jobstreet, Clickjobs, Dice, Ndtvjobs • Print – Times of India, Hindustan Times, Hindu, others • Recruitment consultants and search
Slide 17: Business and market – Q2 FY08
Business and market – Q2 FY08 • Accounted for 90% of net sales in Q2 FY08 vs 93% in Q2 FY07 • High growth continues - Revenue up 61% from USD 7.39 mm in Q2 FY 07 to USD 11.90 mm in Q2 FY08 • Naukri.com continues to be the No. 1 jobsite in India – Over 11 million resumes as on 30.9.07 vs over 7 mm as
Slide 18: Initiatives
Initiatives • Naukri – Site redesigned - positive response – Leadership through better products, user Interface and algorithms - ongoing process - results encouraging – Realignment in sales – separate team for Key Accounts – Job Fairs launched successfully – Expansion proposed in Middle East operati
Slide 19: Matrimonial classifieds & services
Matrimonial classifieds & services
Slide 20: Large market with many segments
Large market with many segments • Over 300 mm people estimated to be in 10 to 30 years age bracket over next 10 years • Urbanization and increased economic activity – increased mobility of work force – nuclear families – breakdown of traditional networks • Arranged marriages are mostly within castes
Slide 21: Jeevansathi.com
Info Edge India India’s Online Classifieds Company (?) Live Help Explore Jeevansathi.com ¥ A Naukri.com group company | 30 Offices across Indi: nsathi.com Indian Matrimonials - We Match Better You have the power to search within : ¢ 254 Castes « 34 Communities « More than 2 Lakh Photo Profiles Get S
Slide 22: Revenue model
Revenue model • Free to list • Free to search • Free to express interest • Free to accept others expression of interest • Pay to get contact details 22 22
Slide 23: Key metrics
Key metrics • Daily profile acquisition rate • Cost per profile acquired • Percentage conversion from free to paid • Average bill per paying customer • Important to nudge key metrics in the right direction through smart brand building and superior product experience 23 23
Slide 24: Competition
Competition • Online players – Shaadi, Bharatmatrimony, Simplymarry – Offline presence – sustainability not established • Print classifieds – Times of India, Hindustan Times, others • Marriage Bureaus and pundits – Community focused, fragmented, unorganized, geographically constrained 24 24
Slide 25: Jeevansathi – Q2 FY08
Jeevansathi – Q2 FY08 • Maintained traffic share in Q2 FY08 – Over 1.96 mm profiles as on 30.9.07 vs 1.08 mm as on 30.9.06 – Profiles added daily up from 2450 in H1 FY07 to 2600 in H1 FY08 • Revenue growth in line with market – Average realisation improved to Rs 1428 per transaction in Q2 FY08 vs Rs
Slide 26: Real estate classifieds
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Slide 27: Surge in demand for real estate
Surge in demand for real estate Market characteristics Reasons for boom 181 mm Hhlds 231 mm Hhlds • Home ownership 3 11 valued in India • Increasing incomes 46 124 • Growing middle class 131 96 • Nuclear families • Urbanization 2003 2013 • Easier home finance Strivers;<US$975pa Aspirers; US$975–4,67
Slide 28: Revenue streams
Revenue streams • Most revenue from developers, builders and brokers • Site has traction for residential, primary & secondary, sale and purchase – To develop for commercial and rental markets • Revenue from – Property listings - 60,000 listings (few paid) – Builders/Brokers Branding & Visibility – M
Slide 29: Banner Ads Panels
Banner Ads Panels Buyer Database 29 29
Slide 30: Property Listings Banner
Banner Property Ads Listings Banner Ads Featured Gallery Sponsored Properties Google Adsense 30 30
Slide 31: Competition
Competition • Online – Magicbricks, Indiaproperty, makaan, 2bhk • Print – Times of India, Hindustan Times, Hindu, others • Other mass media – TV, radio, outdoor • Real Estate Brokers – Large population, highly fragmented, no license requirements, deregulated, – Many are our clients 31 31
Slide 32: 99acres – Q2 FY08
99acres – Q2 FY08 • Improvement in traction – Property listings at 60,000 as on 30.9.07 vs 50,000 as on 30.9.06 – Increase in paid listings • Revenue growth robust albeit on a small base – Over 5X in Q2 FY08 over Q2FY07 • Market for online classifieds expected to grow – Large advertising spend on pr
Slide 33: Management
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Slide 34: Qualified and experienced management team
Qualified and experienced management team Board of Directors Kapil KapilKapoor Kapoor(43) (43) Saurabh SaurabhSrivastava Srivastava(61) (61) Arun ArunDuggal Duggal(61) (61) Chairman Chairman&&Non-Executive Non-Executive Non-ExecutiveDirector Non-Executive Non-Executive B.Tech Director Non-ExecutiveD
Slide 35: Financials
Info Edge India India’s Online Classifieds Company Financials Ly x .cony soll. Jeevansathi.com CD cena Cc India's Not Job Ste indea's Property Baraar Indian Matrimonials « We Match Better
Slide 36: Financial performance
Financial performance Revenues 40.0 35.0 30.0 25.0 20.0 35.0 USD M M 15.0 18.8 10.0 12.9 14.7 10.3 5.0 4.5 0.0 0 04 0 05 0 06 0 07 0 8 0 8 Y2 Y2 Y2 Y2 FY FY F F F F Q1 Q2 Q2 FY08 over Q2 FY07 : 80% growth in revenue and 66% growth in net sales in Rupee terms Exchange rate as of that year end or quar
Slide 37: Financial performance
Financial performance Revenues : H1 FY08 vs H1 FY07 30.0 25.0 20.0 27.8 15.0 USD MM 10.0 14.7 5.0 0.0 Y 07 Y 08 H 1F H 1F 79% growth in revenue and 66% in net sales in Rupee terms 1 USD = Rs 42 (H1 FY07) 1 USD = Rs 39.75 (H1 FY08) 37 37
Slide 38: Financial performance
Financial performance EBITDA Net Profit 12 40.0% 37.70% 7.0 30.0% 35.0% 10 30.0% 33.3% 29.7% 6.0 25.9% 30.0% 25.0% 8 31.0% 16.7% 18.3% 22.4% 25.0% 5.0 20.0% USD MM 23.9% USD MM 6 20.0% 4.0 20.8% 10.5 15.0% 15.0% 3.0 6.4 4 12.5% 10.0% 10.0% 5.6 5.5 2.0 3.8 2 4.3 2.9 3.2 5.0% 3.1 5.0% 1.1 1.0 2.1 0 0.
Slide 39: Balance sheet
Balance sheet (as on 30.9.07) Liabilities Assets Net block + CWIP 8.5% Share capital 0.5% 10.1% 5.9% 3.3% 4.9% Capital advances 0.4% ESOP o/s amount 0.3% 11.5% 14.8% Reserves and surplus Deferred tax asset Secured loans Investments 0.0% Deferred tax liability Cash and bank 0.2% balance Deferred sale
Slide 40: Robust financials
Robust financials • Strong topline & bottomline growth • Consistent track record of profitability • High operating leverage • Strong cash flows • High treasury income due to larger corpus (including IPO proceeds) • Interest rate and liquidity tightening may effect our operational performance adverse
Slide 41: Shareholding pattern
Shareholding pattern (as on 30.9.07) Individuals & others, 14.06% ESOP Trust, 2.33% Overseas Corp Bodies, 4.08% Bodies Corporate, 1.32% Promoters, 54.60% Foreign Inst investors, 21.05% Mutual Funds, 2.56% Fidelity Funds 7.45% KPCB and Sherpalo 4.08% Passport Capital 2.44% Carlson Fund (DnB Nor) 2.36
Slide 42: Key takeaways
Key takeaways • Rapid growth in Indian internet market • Clear and sustainable market leadership in online classifieds • Strong innovation pipeline for continuous differentiation • Robust financials with blue chip investors • Management depth for continued growth • Related diversifications 42 42
Slide 43: Helping People & Businesses Meet
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Info Edge (India) — Investor Presentation (October 2007) on 6ix