Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (May 2007)
40 slides from Info Edge India's investor presentation, May 2007
Slide 1: Info Edge (India) Ltd. – India's Online Classifieds Company
> = com Quadrangle 99acres.com { steed C <> Indian Matrimonials» Ww Info Edge (India) Ltd. India’s Online Classifieds Company Helping People & Businesses Meet OOO CUM™70™1=)0:($’00;w/W WV”
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 3
Slide 4: Three lines of business
Three lines of business Info Edge Recruitment Matrimonials Real Estate Launched in March 1997. Acquired in September 2004 Launched in Sept 2005 Contributes more than 85% of No. 3 matrimony website in Leader in emerging online company sales India market No. 1 job portal in India – 1.48 mm registratio
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 Source: C
Slide 6: Addressable market growing
Addressable market growing Internet and PC population Mobile users 160 60,000 140 Mobile Subscribers (Million) 50,000 120 40,000 100 (in '000) 30,000 80 60 20,000 40 10,000 20 0 0 2001 2002 2003 2004 2005 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Dec-06 Internet user PC Population Mobile Subcriber Base Sou
Slide 7: Company overview
Company overview • VC investment from ICICI Venture, Kleiner Perkins and Sherpalo • 48 offices in 31 cities in India + 1 in Dubai • 1200 employees (over 750 in sales) • Financials (Year ended March 31, 2007) – Revenue (69% YOY growth) - USD 35.0 mm – Net Profit - USD 6.4 mm • Listed in India in Nove
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 is the second most popular professional activity of Internet users
100% 86% Job Search 80% 60% 53% 50% 40% 37% 19% 20% 15% 14% 6% 0% Emailing Instatnt Messaging Marketing Job Search Workshops Info Business Travel Info. Search Other Seminar / Info. Source : Juxtconsult India Report May 2006, Population surveyed – 17,275 Job Search is the second most popular professi
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
Slide 12: Revenue Model
Banner Revenue Model Ad Panels Job Seeker Services Mobile Revenues 12
Slide 13: Revenue Model
Banner Revenue Model Ad Featured Job Listings Company Google Ad Sense 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, Dice, Clickjobs, Ndtvjobs • Print – Times of India, Hindu, others • Recruitment consultants and search firms – Highly fr
Slide 17: Naukrigulf.com
Naukrigulf.com • Launched in July 2006 • Site getting traction & clients • Low revenue currently but potential high • Gulf market attractive – may increase presence/ investment • Competition – Bayt.com, Monstergulf, Timesjobs 17
Slide 18: Matrimonial classifieds & services
Matrimonial classifieds & services
Slide 19: 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 20: 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 21: 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 21
Slide 22: 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 22
Slide 23: Competition
Competition • Online – Shaadi, Bharatmatrimony, Simplymarry • Print classifieds – Times of India, Hindustan Times, others • Marriage Bureaus and pundits – Community focussed, fragmented, unorganized, geographically constrained 23
Slide 24: Real estate classifieds
Info Edge India India’s Online Classifieds Company Real estate classifieds 5G .conr soll. Cc India's Not Job Ste India's Property Baraar Indian Matrimonials « We Match Better
Slide 25: 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 46 • Increasing incomes 124 • Growing middle class 131 96 • Nuclear families 2003 2013 • Urbanization Strivers;<US$975pa Aspirers; US$975–4,675 pa Rich; >US$4,675pa
Slide 26: Revenue streams
Revenue streams • Most revenue from developers, builders and brokers • Site has traction for residential, primary, sale and purchase • Revenue from – Property listings - 60,000 listings – Builders/Brokers Branding & Visibility – Microsites, home page links, banners – Others – Buyer database access 2
Slide 27: Banner Ads Panels Buyer Database
Banner Ads Panels Buyer Database 27
Slide 28: Property Listings Banner
Banner Property Ads Listings Banner Ads Featured Gallery Sponsored Properties Google Adsense 28
Slide 29: Competition
Competition • Online – Magicbricks, Indiaproperty • 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 29
Slide 30: Management
Info Edge India India’s Online Classifieds Company Ly x .cony soll. Jeevansathi.com CD cena Cc India's Not Job Ste indea's Property Baraar Indian Matrimonials « We Match Better
Slide 31: Qualified and experienced management team
Qualified and experienced management team Board of Directors Kapil KapilKapoor Kapoor(41) (41) Arun ArunDuggal Duggal(60) (60) Chairman Chairman&&Non-Executive Non-ExecutiveDirector Director Non-Executive Non-ExecutiveDirector Director B.A.Econ, B.A.Econ,PGDM PGDMIIM-A IIM-A B.Tech B.TechIITD, IITD,
Slide 32: 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 33: Financial performance
Financial performance Revenues 40.0 35.0 30.0 25.0 USD mm 20.0 35.0 15.0 10.0 18.8 10.3 5.0 4.5 0.0 FY2004 FY2005 FY2006 FY2007 Exchange rate as of that year 33
Slide 34: Financial performance
Financial performance Net Profit EBITDA 7.0 25.0% 12 35.0% 30.0% 29.7% 6.0 16.7% 18.3% 10 30.0% 20.0% 31.0% 5.0 20.8% 25.0% 8 23.9% 15.0% USD M M 4.0 USD MM 20.0% 6 3.0 12.5% 6.4 10.5 10.0% 15.0% 4 2.0 10.0% 3.1 5.0% 5.6 1.0 2.1 2 3.2 5.0% 0.0 0.6 0.0% 1.1 0 0.0% FY2004 FY2005 FY2006 FY2007 FY2004 F
Slide 35: Balance sheet
Balance sheet (as on March 31, 2007) Liabilities Assets Share capital Net block + CWIP 10% 1% 8% ESOP o/s amount 4% 4% 0% 15% Investments 17% Reserves and surplus Cash and bank 0% Secured loans balance 0% Deferred tax liability other current assets Deferred sales 65% revenue Advance 76% Other curren
Slide 36: Shareholding pattern
Shareholding pattern (as on March 31, 2007) Individuals, 21.18% Bodies Corporate, 1.45% Promoters, 54.60% Foreign Inst investors, 19.36% Mutual Funds, 3.41% FID Funds 4.18% Carlson Fund 2.36% Reliance Capital 2.14% Citigroup Global Markets 1.87% Matthews 1.75% Sandstone 1.42% Merrill Lynch 1.36% Tot
Slide 37: Robust financials
Robust financials • Strong topline & bottomline growth • Consistent track record of profitability • High operating leverage • Strong cash flows 37
Slide 38: Commitment to innovation
Commitment to innovation • Market segment innovation • Customer driven product innovation • Technology innovation 38
Slide 39: 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 39
Slide 40: May, 2007
“15 99acres.com” sedis Proseny Ssseer Indian Matrimonials .com ( Quadrangle We Match Better => F Helping People & Businesses Meet 4 se CGE Kies