Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (May 2012)
54 slides from Info Edge India's investor presentation, May 2012
Slide 1: Info Edge (India) Ltd: India's Online Classified Company
_ Al Cnaukricom 9ecrescom Jeevansathi.com (> owemem Cnaukricem — brijjcom First => more com Info Edge (India) Ltd: India’s Online Classified Gompany Helping People & Businesses Meet Gomes policybazaar@ <sZQOMeto dala May 2012
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: Helping Businesses and People Meet
“Helping Businesses and People Meet” India’s premier on-line classifieds company in recruitment, matrimony, real estate and education 3
Slide 4: Strong performance track record
Strong performance track record Info Edge Revenue and EBITDA margin Highlights (2006 – 2012) 4500 50% An online classifieds company with – Strong brands 43.63% 4000 45% – Growing businesses 39.14% – Experienced management team 37.30% 40% 3500 35.10% 34.30% 35% Rapid growth historically 3000 30.00% T
Slide 5: Our brands
Our brands Cnaukrigulf.com Firstnaukricom C2 Ajobsite for campus hiring! Quadrangle “> e : = brijj.com epee Prope Cnaukri.com India’s No.1 Job Site Jeevansathi.com We Match Better shiksha.com Wh 99acres. contr Buy, Rent, Sell TL allcheckdeals.con
Slide 6: Our portfolio
Our portfolio 100.0% 80.0% 99acres 99acres 60.0% Naukri Revenue CAGR 2007 to 2012 Jeevansathi 40.0% 20.0% 0.0% -50% 0% 50% 100% -20.0% Quadrangle -40.0% -60.0% -80.0% -100.0% EBITDA Margin Note:- For FY07-FY12 the data for other brands has not been considered. 6
Slide 7: Virtuous circle
Virtuous circle Example : Naukri.com So we get the most Imperatives clients We’ve got the most jobs Hire and retain quality talent Product and technology innovation So we get Superior sales and service the most execution So we get response the most Build the brand traffic 7
Slide 8: Milestones
Milestones Levels of 2007 onwards Evolution “Secure the Future” 2000-2007 “Scale-up” 1 Expansion of main 1997-2000 9 Nov 2006: business “Bootstrapping” Public listing in India 8 Launched new portals: 2 Capitalising on growth opportunities 2006- Naukrigulf.com 2005- 99acres.com 7 September 2004: 3 Ab
Slide 9: Key drivers of success
Key drivers of success Sustaining traffic share (gained in the 2008 – 2010 slowdown) Garner higher market share as growth continues Specific product innovations to combat the threat of Linked In and semantic search (Trovix) Naukri from Monster Reap gains from sales team efficiencies – Restructuring,
Slide 10: Leveragable sales/customer interface infrastructure
Leveragable sales/customer interface infrastructure Info Edge sales offices illustrative map Key Observations Chandigarh ~ 1860 Sales/ client facing staff or 80% of the company’s* workforce Delhi NCR (Noida, Nation wide coverage through 52 Gurgaon) Jaipur company branch offices in 32 cities in India
Slide 11: Environment
Environment 11
Slide 12: Environment overview
Environment overview Business cycle Demographics Internet Competition and Economic and GDP per penetration Environment capita 12
Slide 13: Business cycle and economic environment
Business cycle and economic environment India’s GDP growth ~8% Highlights 60000 14% 48,792 India had staged a recovery in 2010-11 post 50000 44,937 12% the meltdown of 2008-10. 41,625 38,990 10% 40000 35,660 Indian recovery was faster than rest of the 32,542 world. R s. B i l l i o n 8% 30000 India’
Slide 14: Demographics
Demographics Highlights India is among the world's youngest nations with a median age of 26 years. 65% of Indian population estimated to be below 35 years of age Youth population(15-35) of India is growing at a rapid rate According to the World Fact Book, India is projected to have 70% of its popula
Slide 15: Internet penetration (1/2)
Internet penetration (1/2) Highlights From 5% in 2000 to 37% in 2009, internet has made an impact in lives of small towns. Given the continuous growth of internet users over the years, the smaller towns have overtaken Top 8 Metros in internet usage (indicates that internet is reaching to rural masse
Slide 16: Internet penetration (2/2)
Internet penetration (2/2) Growth of broadband in India Implications for Info Edge Broadband connections in millions 14 12 Significant user base coupled 11.89 10 8 with headroom for growth. 8.77 6 2.34 1.35 6.22 4 Penetration of broadband 0.18 3.87 2 increasing. 0 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09
Slide 17: Businesses
Businesses 17
Slide 18: Naukri
Naukri Job Panels Seeker Services Resume Banner Ad Database Job Listings Source: http://www.naukri.com/ 18
Slide 19: Naukri - Overview
Naukri - Overview Dominant player – strong brand, largest database, most clients, highest traffic share, Current largest no. of jobs, sales network, Highlights Market Size and Potential product/technology innovation Growth of 29% in revenue in FY12 YoY Large market Growth in economy/IT/ITES to drive
Slide 20: The Indian job market is a US$ 1 billion opportunity
The Indian job market is a US$ 1 billion opportunity Indian job search market overview Sectoral Key Components Trends and Outlook E-recruitment Trends Employment Trends Types of Recruitment Stimulus Packages Top 5 sectors which The estimated Market-size Channels: generated 20% new jobs recorded high
Slide 21: Online job search is a popular activity and Naukri has the dominant position
Online job search is a popular activity and Naukri has the dominant position A popular online activity Some of the most used websites in India Job Search is a popular activity on the Internet in India Naukri is one of India’s most used websites Source: JuxtConsult, India Online 2011 Report. The logo
Slide 22: Naukri has gained market-share with ~60% traffic-share
Naukri has gained market-share and is a clear # 1 with ~60% traffic-share Traffic share of various recruitment sites Traffic share of various recruitment sites based on data from Comscore from Alexa.com Source: Comscore.com, Alexa.com 22
Slide 23: Hiring is back
Hiring is back Naukri Job Speak Index Naukri hiring survey Total no. of new jobs posted in July 2008 was scaled to 1000. Index for subsequent months is relative to July 08. Naukri Job Speak Index is an in-house Survey of recruiters conducted by index based on utilisation of listings on Info Edge Ind
Slide 24: Naukri.com has performed on key-metrics
Naukri.com has performed on key-metrics Number of candidate resumes has grown Average daily resumes added and modified consistently 35 120 30 100 25 80 20 60 15 40 10 20 5 0 0 Number of resumes on Naukri.com (in million) Resumes added daily (in '000) Resumes modified daily (in '000) 24
Slide 25: Naukri is supported by four recruitment offerings
Naukri is supported by four recruitment offerings thereby creating a full service in the jobs space Offline placement services for middle & senior management Revenues based on success fee model Complements online model Focuses on hiring of fresher graduates from campus Launched commercially in FY 10
Slide 26: 99acres
99acres Banner Ad Banner Ad Panels Source: http://www.99acres.com/ 26
Slide 27: 99acres : Overview
99acres : Overview Favorable macroeconomics for the housing market: Current – Increase in middle income/high income Highlights households, Increasing urbanization, availability of easy finance Opportunities Market Opportunities & Market Increased traction in all real estate clusters Potential Potent
Slide 28: 99acres is a leading brand in its segment
99acres is a leading brand in its segment Traffic share of various real estate sites Traffic share of various real estate sites based on Comscore data* from Alexa 60 50 40 % tarffic share 30 20 10 0 99acres indiaproperty.com magicbricks.com makaan.com * Change in traffic share on account of tagging
Slide 29: 99acres to gain traffic share
99acres to gain traffic share Market drivers Rising disposable incomes, financing terms and growing population Powerful demographic impetus, infrastructural development, IT/ITES Industry, increasing urbanisation Growing economy, increased commercial activity Growing middle class, consumerism, macro
Slide 30: Allcheckdeals.com
Allcheckdeals.com Real estate brokerage business A subsidiary of Info Edge (India) Limited Commission based revenue model Determined on transaction value Focus on primary residential market Large parts of Indian cities/ suburbs getting built Growing middle class and higher disposable income Need for
Slide 31: Jeevansathi
Jeevansathi Search JS Home JS Membership Page Options page Source: http://www.jeevansathi.com/ 31
Slide 32: Jeevansathi : Overview
Jeevansathi : Overview The matrimonial market in India is highly Current fragmented It presents a fundamentally large opportunity, Highlights unlike the West the dominant form continues to Opportunities Market Opportunities & Market be “arranged” marriages by parental consent Potential Potential Aro
Slide 33: Shiksha
Shiksha Space for education providers Banner Ad User generated content Source: http://www.shiksha.com/ 33
Slide 34: Shiksha : Overview
Shiksha : Overview Private sector participation increasing in education Current Demand for education and eduinfo services Highlights increasing due to increase in Enrollment in Opportunities Market Opportunities & Market Secondary Education in India Potential Potential Total spend on online classifi
Slide 35: Shiksha : Competitive scenario and traffic share
Shiksha : Competitive scenario and traffic share Traffic comparison Key Features of Shiksha Launched in May 2008 Over 110,000 listings aggregated Product feedback encouraging Offices in 12 cities Challenges : Large market dominated by Print Weekly supplement in English dailies Three categories of Ad
Slide 36: Company Financials (Standalone)
Company Financials (Standalone) 36
Slide 37: Consistent long-term growth in Revenue / Profitability
Consistent long-term growth in Revenue / Profitability Revenue trend Profitability INR Million INR Million 4500 2000 395 4000 1800 3500 1600 279 714 3000 1400 320 334 286 207 511 1200 2500 369 1000 225 1817 2000 118 75 800 3056 1423 1500 1260 1227 2425 600 2117 1964 1954 986 977 939 904 1000 441 842
Slide 38: Growth momentum was interrupted by slowdown; recovery witnessed
Growth momentum was interrupted by slowdown; recovery witnessed in last 11 quarters Quarterly Operating Revenue Quarterly Operating trend last 5 years Profitability INR Million INR Million 1200 500 450 1000 400 350 800 300 250 600 200 150 400 100 50 200 0 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY08 Q1 FY09 Q2 F
Slide 39: Strong balance sheet and strong cash flows
Info Edge has always maintained a strong balance sheet and strong cash flows Assets Fixed cost model and profitability 3% has led to a strong cash accretion 5% Cash & Liquid 9% Investments Other Investments 19% Net Fixed Assets Strong 64% Profitability Cash and liquid Other Current Assets investment
Slide 40: Recruitment: Profitability has improved post slowdown
Recruitment: Profitability has improved post slowdown 900 60% 800 50% Quarterly recruitment revnues (INR M) 700 Highlights EBITDA margin (%) 600 40% 500 30% Consistent growth in recruitment 400 revenue for last 11 quarters. 300 20% Revenues & margins impacted by economic slowdown in FY 09. 200 10% 1
Slide 41: Improving financial performance of Non Recruitment businesses
Improving financial performance of Non Recruitment businesses EBITDA losses contained INR M 250 200 150 100 50 0 -50 -100 -150 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Revenue (INR
Slide 42: Investee Companies
Investee Companies 42
Slide 43: Policybazaar.com
Policybazaar.com Etechaces An insurance comparison site Experienced team www. policybazaar.com – Other financial products being added Large market with annuity income (home, personal, car, education) Invested INR 300 mm Comparison shopping of financial products Intel Capital a co-investor 43
Slide 44: Meritnation.com
Meritnation.com Applect www.meritnation.com Team experienced in development of – Online educational assessment for school education content, assessment modules students. and delivery. – Provides free solutions mainly for mathematics and science for standard 6 to 12 Large addressable market. of popul
Slide 45: Zomato.com
Zomato.com Zomato Website operational Experienced team – Restaurant menu’s, ratings and reviews – Coverage of over 10 cities including Delhi, Large addressable market Mumbai, Bangalore, Pune, Hyderabad – Revenues from advertising and lead sales Invested INR 182 mn – Events (ticketing) 45
Slide 46: Mydala.com
Mydala.com Mydala Website operational Experienced team – A site offering discount offers/ deals/ do-it- yourself platform for merchants Large addressable market – Revenues from commissions from merchants Invested INR 270 mn 46
Slide 47: 99labels.com
99labels.com 99labels Website operational Experienced team – E-commerce site offering fashion Expertise in sourcing merchandise and accessories through flash sales Large addressable market – Revenues from sale of products Invested INR 230 mn (including secondary) 47
Slide 48: Team and Governance
Team and Governance 48
Slide 49: > 50% share-holding with the Founding management group and >25% with FIIs
> 50% share-holding with the Founding management group and >25% with FIIs HDFC Mutual Fund 4.13% Equinox 4.07% Reliance Mutual Fund 3.55% Matthews 3.50% Fidelity 3.43% Small Cap World Fund Inc (Capital Group) 2.89% DSP Blackrock Mutual Fund 2.14% T Rowe Price 1.43% Government Pension Fund 1.15% Acac
Slide 50: Board of Directors
Board of Directors Whole time Non Executive Independent Sanjeev Bikhchandani (48) Kapil Kapoor (47) Saurabh Srivastava (66) Arun Duggal (65) Independent Director Independent Director Founder and Executive Vice Chairman & Non Executive B.Tech IIT Kanpur, B.Tech IIT Delhi, Chairman Director M.Sc Harva
Slide 51: Management Team
Management Team Sanjeev Bikhchandani, 48, Founder and Executive Vice Chairman, BA Economics St. Stephens, PGDM IIM-A. Previously with Glaxo Smith Kline. Year of joining 1995 Hitesh Oberoi, 39, Managing Director & CEO, B Tech, IIT Delhi PGDM, IIM-B. Previously with HLL (Unilever). Year of joining 200
Slide 52: Management Team contd.
Management Team contd. Rajesh Khetarpal, 39, SVP - Finance, CA. Previously with Bharti. Year of joining 2007 Rohit Manghnani, 36, SVP and Business Head - Jeevansathi, B Com, MBA, FMS, Delhi University. Previously with Home Shop 18. Year of joining 2010 Manoj. P, 38, SVP - Sales Naukri, MBA - Xavier
Slide 53: Corporate Governance
Corporate Governance Governance at Info Edge Key Features of Governance 9 Separation of Chairman and CEO Directors role. Statutory Audit performed by PWC Internal audit performed by an external firm 5 Independent Directors out of 9 3 Whole 5 1 Non– Directors. Time Independent Executive Audit committ
Slide 54: Investor Relations Contacts
Investor Relations Contacts Name Ambarish Raghuvanshi Sudhir Bhargava Group President - Finance and EVP - Corporate Finance Designation CFO e mail ambarish@naukri.com sudhir.bhargava@naukri.com Telephone +91 120 3082007 +91 120 3082006 Fax +91 120 3082095 Address Info Edge (India) Limited, A 88 Sect