Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (October 2013)
58 slides from Info Edge India's investor presentation, October 2013
Slide 1: Info Edge (India) Ltd. - India's Leading Online 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: Core strengths
Core strengths • Strong market leading internet brands • Product, UI, Analytics and Engineering expertise • People • Financial strength • free cash, negative working capital and negligible leverage • Nationwide sales network • High standards of corporate governance • 5 out of 9 Board members indepen
Slide 4: Our Brands
Our Brands India’s no. 1 jobsite India’s leading real estate site Division of Info Edge Division of Info Edge India’s leading restaurant ratings India’s leading education site for and review site school children ~58%* owned ~54%* owned * Approximate shareholding on fully disbursed and converted basi
Slide 5: Our Brands
Our Brands India’s no. 3 matrimonial site India’s leading education listings site Division of Info Edge Division of Info Edge India’s leading financial products Deals and discounts site with a comparison site merchant platform ~32%* owned ~47%* owned India’s leading site for Designing and selling fu
Slide 6: Our Brands
Our Brands Other owned brands Offline brands 6
Slide 7: Leverage nationwide sales/customer interface infrastructure
Leverage nationwide sales/customer interface infrastructure Info Edge sales offices illustrative map Key Observations Chandigarh ~ 2059* Sales/ client facing staff or 76% of the company’s* workforce Delhi NCR (Noida, Nation wide coverage through 54 Gurgaon) Jaipur company branch offices in 38 cities
Slide 8: Info Edge has always maintained a 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 2% has led to a strong cash accretion Cash & Liquid 4% Investments 11% Cash and Other Investments equivalents Rs 4.8 bn Net Fixed Assets 53% Strong 29% Profitability Other Current A
Slide 9: Management Team
Management Team Name and age Qualifications Designation/ Role Previously worked with Year of joining Sanjeev Bikhchandani, BA Economics St. Stephens, PGDM Founder and Executive Lintas, Glaxo Smith Kline 1995 50 IIM-A Vice Chairman Hitesh Oberoi, 41 B Tech, IIT Delhi, PGDM, IIM-B Managing Director &
Slide 10: Management Team contd.
Management Team contd. Name and age Qualifications Designation/ Role Previously worked with Year of joining Satyajit Tripathi, 40 BSc ,PGDBM SVP Sales and Business - 2002 Head – Allcheckdeals Sudhir Bhargava, 44 BE, MBA, FMS, Delhi University EVP - Corporate Finance HSBC, ICICI Bank 2006 Sharmeen Kh
Slide 11: Key features of corporate governance
Key features of corporate governance Separation of Chairman and CEO role Non Executive Chairman Statutory Audit performed by PWC Internal Audit performed by an external firm 5 Independent Directors out of 9 Directors Audit committee comprises of only Independent Directors Disclosure of financial sta
Slide 12: About Info Edge
About Info Edge 12
Slide 13: Milestones
Milestones Levels of 2007 onwards Evolution 2000-2007 5 Investing in start-ups 1997-2000 9 Nov 2006: Public listing in India 4 Scaling up new 8 Launched new portals: 2006- Naukrigulf.com businesses 2005- 99acres.com 7 September 2004: 3 Ability to attract and Acquired Jeevansathi retain talent 3 Apri
Slide 14: Strong performance track record
Strong performance track record Info Edge Revenue and EBITDA margin Highlights (Standalone entity, 2006 – 2013) 6000 50% India’s leading online company with – Strong brands 43.63% 45% – Growing businesses 39.14% 40.09% 5000 – Experienced management team 37.30% 40% 35.10% – Investments in internet st
Slide 15: Our in house business portfolio
Our in house business portfolio 100.0% 99acres 80.0% Jeevansathi Revenue CAGR 2007 to 2013 60.0% Naukri 40.0% 20.0% 0.0% -50% 0% 50% 100% -20.0% -40.0% -60.0% -80.0% -100.0% EBITDA Margin Note:- For FY07-FY13 the data for other brands has not been considered. 15
Slide 16: We are a business of the virtuous circle
We are a business of the 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 Superior sales and service execution So we get the most So we get Build the brand response the most traffic 16
Slide 17: Business drivers - internal
Business drivers - internal Sustaining traffic share (gained in the 2008 – 2010 slowdown) Garner higher market share in this slowdown Share of internet in recruitment spend growing Specific product innovations to combat the threat of Linkedin.com and semantic search Naukri (Trovix) from Monster – ma
Slide 18: Business drivers - external
Business drivers - external Business cycle Demographics Internet Competition and Economic and GDP per penetration Environment capita 18
Slide 19: Environment
Environment 19
Slide 20: Business cycle and economic environment
Business cycle and economic environment India’s GDP grew at a CAGR of ~8% from FY06 to FY12 Highlights 60000 14% 52,025 Indian economy slowed to 6.5% GDP growth 48,792 12% in FY11-12. 50000 44,937 41,625 38,990 10% Estimates for FY12-13 at 5.5% and for FY 40000 35,660 32,542 13-14 at ~5% R s .B i l
Slide 21: Internet penetration
Internet penetration Growth of broadband in India 16 13.81 14 11.89 12 10 8.77 8 6.22 6 3.87 4 2.34 2 1.35 0.18 0 No. of subscribers in millions India’s Internet consumer profile mix is changing to broadband and heavier usage Spread of the internet increasing About 1.92 mn subscribers added in 2011-
Slide 22: Internet Impact on Young India
Internet Impact on Young India 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 • India will see 70 million new entrants to its workforce over the next 5 years India currently has about 120 million internet use
Slide 23: India has the potential to treble its iGDP to $100bn in 2015
India has the potential to treble its iGDP to $100bn in 2015 from $30bn today % of total Internet contribution to Internet’s Contribution to India’s GDP (in $ bn) India’s GDP Private Consumption Private Investment Private consumption Public Expenditure Trade Balance Private investment Public expendi
Slide 24: In house businesses
In house businesses 24
Slide 25: Naukri
Naukri Job Panels Seeker Services Resume Banner Ad Database Job Listings Source: http://www.naukri.com/ 25
Slide 26: 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 Growing share in the current slowdown Investing in search and response management La
Slide 27: 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 28: Naukri is a clear #1 with ~60% traffic-share
Naukri is a clear # 1 with ~60% traffic-share for over 10 consecutive quarters Traffic share of various recruitment sites based on data from Comscore 70 60 50 40 30 20 10 0 Naukri Monsterindia Timesjobs Source: Comscore.com 28
Slide 29: Hiring growth rate has slowed in current slowdown
Hiring growth rate has slowed in current slowdown Naukri Job Speak Index Naukri hiring survey 80% 72% 68% 70% 62% 60% 46% 53% 54% 48%45% 50% 40% 30% 20% 10% 4% 5% 5% 5% 0% Layoffs will happen Replacement hiring New jobs will be will happen created Jan-12 Jul-12 Jan-13 Jul-13 Total no. of new jobs po
Slide 30: Naukri.com has performed on operational metrics
Naukri.com has performed on operational metrics Number of candidate resumes has grown Average daily resumes added and modified consistently 40 160 35 140 30 120 100 25 80 20 60 15 40 10 20 5 0 0 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 Q
Slide 31: 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 32: 99acres
99acres Banner Ad Banner Ad Panels Source: http://www.99acres.com/ 32
Slide 33: 99acres : Overview
99acres : Overview Favorable macroeconomics for the housing market: Current – Large market Highlights – Increase in middle income/high income households, increasing urbanization, availability Opportunities Market Opportunities & Market of finance Potential Potential Most revenue from developers, bui
Slide 34: 99acres is a leading brand in its segment
99acres is a leading brand in its segment Traffic share of various real estate sites based on Comscore data* 60 50 40 % tarffic share 30 20 10 0 99acres indiaproperty.com magicbricks.com makaan.com * Change in traffic share on account of tagging of site/ change in methodology by Comscore Source: Com
Slide 35: 99acres addresses a growing market
99acres addresses a growing market 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, m
Slide 36: 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 37: Jeevansathi
Jeevansathi Search JS Home JS Membership Page Options page Source: http://www.jeevansathi.com/ 37
Slide 38: 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 39: Shiksha
Shiksha Space for education providers Banner Ad User generated content Source: http://www.shiksha.com/ 39
Slide 40: 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 41: Shiksha : Key features
Shiksha : Key features Launched in May 2008 Over 110,000 listings aggregated Product feedback encouraging Offices in 12 cities Opportunity: Large market dominated by Print Weekly supplement in English dailies Three categories of Advertisers - Indian education players (Universities and Institutes) -
Slide 42: Company Financials (Standalone)
Company Financials (Standalone) 42
Slide 43: Consistent long-term growth in Revenue / Profitability
Consistent long-term growth in Revenue / Profitability Revenue trend Profitability INR Million INR Million 6000 2500 5000 465 2000 714 395 4000 985 511 279 1500 3000 286 320 207 1939 334 1000 369 1817 225 2000 3387 1474 75 1423 3056 1315 1260 134 1227 118 2425 903 91 2117 1964 1954 307 986 977 333 9
Slide 44: Growth momentum had rebounded post 2008-09
Growth momentum had rebounded post 2008-09; reasonable YoY revenue growth in Q2 FY14 in a slow growth economy Quarterly Operating Revenue Quarterly Operating trend last 6 years Profitability INR Million INR Million 1400 500 450 1200 400 1000 350 300 800 250 600 200 150 400 100 200 50 0 0 Q1 FY08 Q2
Slide 45: Recruitment: Profitability had improved post 2008-09 slowdown
Recruitment: Profitability had improved post 2008-09 slowdown Highlights 1000 60% 900 Quarterly recruitment revnues (INR M) Growth in recruitment revenue for 50% last 12 quarters. 800 Slowdown in GDP in FY13 700 has impacted recruitment EBITDA margin (%) 40% 600 growth rate 500 30% Revenues & margin
Slide 46: Improving financial performance of Non Recruitment businesses
Improving financial performance of Non Recruitment businesses INR M 400 350 300 250 200 150 100 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 Q1 FY13 Q2 FY13 Q3 FY13 Q
Slide 47: Investee Companies
Investee Companies 47
Slide 48: Investee companies – amount invested and status
Investee companies – amount invested and status Rs in million Approx. diluted % of the Total amount and converted total amount Investee Company Website invested shareholding % invested Active Zomato Media Pvt Ltd. www.zomato.com 860 58% 30% Applect Learning Systems Pvt Ltd. www.meritnation.com 615 5
Slide 49: Zomato.com
Zomato.com Zomato Website operational Experienced team – Restaurant menu’s, ratings and reviews – Coverage of over 12 cities including Delhi, Large addressable market Mumbai, Bangalore, Pune, Hyderabad – Launched in UAE, Sri Lanka, UK, Qatar, Philippines, South Africa and adding more Invested ~INR 8
Slide 50: Meritnation.com
Meritnation.com Applect www.meritnation.com Team experienced in development of – Direct to consumer freemium model education content, assessment modules – Provides free solutions mainly for mathematics and and delivery. science for standard 6 to 12 of popular national curriculum’s viz. CBSE and ICSE
Slide 51: 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 325 mm for a ~32% stake Comparison shopping of financial products Intel Capital and Inv
Slide 52: Mydala.com
Mydala.com Mydala Website operational Experienced team – A site offering discount offers/ deals/ do-it- yourself platform for merchants – Revenues from commissions from Large addressable market merchants – Revenues from mobile Invested INR 270 mn for ~47% stake 52
Slide 53: Canvera.com
Canvera.com Canvera Website operational since 2008 Experienced team – Solutions for professional photographers Expertise in digital imaging/ printing Ready to use website, software and workflow for managing photographs, designing Large addressable market and printing quality photo books/ albums Inve
Slide 54: Happilyunmarried.com
Happilyunmarried.com Happily unmarried Website operational Experienced team – Revenue from design and sale of fun quirky creative products Large addressable market Invested INR 50 mn for ~25% stake May additionally purchase some secondary 54
Slide 55: Shareholding and Board
Shareholding and Board 55
Slide 56: > 50% share-holding with the Founding management group and ~26% with FIIs
> 50% share-holding with the Founding management group and ~26% with FIIs Individuals and others, 9.30% ESoP Trust, 0.30% Mutual Funds and Banks, 11.35% Bodies Corporate, 0.25% Wholetime Directors & their entities, 52.21% Foreign Institutional Investors, 26.59% HDFC Mutual Fund 5.65% Nalanda India E
Slide 57: Board of Directors
Board of Directors Whole time Non Executive Independent Sanjeev Bikhchandani (50) Kapil Kapoor (49) Saurabh Srivastava (67) Arun Duggal (66) 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 58: 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 Info Edge (India) Limited, B 8, Sector 132,
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