Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (October 2014)
85 slides from Info Edge India's investor presentation, October 2014
Slide 1: Info Edge (India) Limited
Info Edge (India) Limited October, 2014 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Info Edge (India) Limited (the “Company”) solely for information purposes without any regard to any specific objectives, financial situations or information needs of any particular person. This presentation and its contents are confidential and shoul
Slide 3: India's internet classifieds company
India’s internet classifieds company 3
Slide 4: Our online businesses
Our online businesses India’s no. 1 jobsite India’s leading real estate site Division of Info Edge Division of Info Edge India’s no. 3 matrimonial site India’s leading education listings site Division of Info Edge Division of Info Edge Job site focused on the Gulf market 4
Slide 5: Strategic investments
Strategic investments India’s leading restaurant ratings and India’s leading education site for review site school children Shareholding ~50%* Shareholding ~56%* India’s leading financial products Deals and discounts site with a comparison site merchant platform Shareholding ~23%* Shareholding ~47%*
Slide 6: Several of our brands are market leaders
Several of our brands are market leaders • Internal businesses –Naukri, 99acres, Shiksha • Strategic investments –Zomato, Meritnation, Policybazaar, Canvera and Mydala 6
Slide 7: Nationwide sales/customer interface infrastructure
Nationwide sales/customer interface infrastructure Info Edge sales offices illustrative map Key Observations Chandigarh ~ 2680 sales/ servicing/ client facing staff or 73% of Delhi NCR (Noida, Gurgaon) the company’s* workforce Jaipur Lucknow Nation wide coverage Ahmedabad Bhopal Kolkata through 58 c
Slide 8: Strong financial performance track record
Strong financial performance track record: Consistent growth in Revenue and EBITDA Margin since FY06 Total Income and EBITDA margin for the standalone entity, 2006 – 2014 6000 50% 43.63% 45% 39.14% 40.09% 5000 38.65% 37.30% 40% 35.10% 34.30% 35% Total income (INR M) EBITDA margin (%) 4000 30.00% 28.
Slide 9: Capital efficiency, high EBITDA margins and negative working capital
Capital efficiency, high EBITDA margins and negative working capital have led to a strong balance sheet Assets 4% 5% 2% Cash & Liquid Investments Cash and Other equivalents Investments 20% Net Fixed Rs 12.72 bn High margins Assets and operating Other Current 71% Assets leverage Other Assets Negative
Slide 10: Board of Directors
Board of Directors Whole time Non Executive Independent Sanjeev Bikhchandani (51) Kapil Kapoor (49) Saurabh Srivastava (68) Arun Duggal (67) Independent Director Independent Director Founder and Executive Vice Chairman & Non Executive B.Tech IIT Delhi, B.Tech IIT Kanpur, Chairman Director PGDM IIM-A
Slide 11: Corporate governance
Corporate governance Independent Directors are a majority on the Board Separation of Chairman and CEO role Non Executive Chairman Statutory Audit performed by PWC Internal Audit performed by an external firm Audit committee comprises of only Independent Directors Disclosure of quarterly balance shee
Slide 12: ~44% shareholding is with the Founding management group
~44% shareholding is with the Founding management group and ~30% with FIIs (as of Sept 30, 2014) Individuals and ESoP Trust, others, 10.42% 0.23% Bodies Wholetime Corporate, Directors & their 0.51% entities, 44.47% Mutual Funds and Banks, Foreign 14.29% Institutional Investors, 30.08% HDFC Mutual Fu
Slide 13: Naukri
Naukri 13
Slide 14: Naukri website screenshot
Login to view recommended jobs for you Recruiters from USA, call Toll Free # 1866-557-3340 Cnaukri,com’ “ee 270008 | accrue | SOP India’s No.1 Job Site eatin cnatenge stpernce wccene | a Search Jobs Search Recruiters Post Resume | Jobseeker Login | Fastforward Learning More Employer's Zone | Buy Onl
Slide 15: Naukri is the dominant leader in the online job market
Naukri is the dominant leader in the online job market • Approximately 68% traffic share (Source www.comscore.com) • Over 120,000 to 130,000 job listings on the site at any point • 39 million resumes • 13,000+ avg. resumes added daily in Q2 FY 14-15 • Over 135,000 resumes modified daily in Q2 FY 14-
Slide 16: Dominant traffic share
Dominant traffic share 80 70 60 50 40 30 20 10 0 Naukri Monsterindia Timesjobs Shine ~35% of the total sessions through mobile (above data is however only for traffic from desktops and laptops) Excludes Linkedin since traffic may not pertain to jobs Source: Comscore.com 16
Slide 17: Naukri is a business of the virtuous circle
Naukri is a business of the virtuous circle Benefits • Naukri has nearly We get the 100% of industry most profits enabling clients We’ve got the greater most jobs investment in – Product innovation – Engineering We get – Brand support the most response We get the – Sales network most – Servicing bac
Slide 18: Revenue sources in FY 13-14
Revenue sources in FY 13-14 B2B revenues (from Recruiters 90%) – Resume Database Access – Job listing/ response management – Employer Branding/ Visibility – Other - Resume short listing and screening, career site manager, campus recruitment – Non recruitment advertising other than for jobs B2C about
Slide 19: Breakup of revenue by product type in FY 13-14
Breakup of revenue by product type in FY 13-14 Naukri fast forward, 10% Others, 4% Homepage solutions, 11% eHire, 2% Resume database, 57% Job postings, 16% 19
Slide 20: Revenue per client
Revenue per client 60 56 57 60 53 50 51 50 45 41 46 48 40 42 40 35 30 30 20 20 10 10 0 0 FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14 Av. Realisation in Rs '000 No. of unique customers in '000 20
Slide 21: Strategy
Strategy • Career site manager and response management New products for tools recruiters • Employee referral tool • Recruiter profile • Products for mobile Mobile • App for Android, iOS • HTML5 site • Semantic search Superior search • Job seeker experience better and faster • Use of analytics to imp
Slide 22: Recent products/ features launched
Recent products/ features launched Career site and • Powers career site for recruiters and corporates Response management • Develop response / recruitment management • A Recruiter can create a personal profile on Recruiter profile Naukri website • Job seekers can choose to follow him/ her • A job po
Slide 23: Screenshot of Career Site Manager
Screenshot of Career Site Manager 23
Slide 24: Mobile an important source of traffic
Mobile an important source of traffic • About 35% sessions in Q2 FY 14-15 from mobile • We are mobile ready – HTML5 site – App for Android – App for iOS 24
Slide 25: The App and HTML5 site
The App and HTMLS5 site = © = = 105 Jobs Found Y Keywords Modify "Sales Manager, Marketing Manager” | 6 Sales Manager Location Live connections Mumbai > Experience tS Years) 0 2 4 6 8 Ae 15+ nthapuram, Hydrabad, Sescunderabad Puaucnerry Sales Executive Silly Fish Studios Expected Salary ad, Kolkata,
Slide 26: Mobile an important source of traffic
Mobile an important source of traffic Android app iOS app HTML5 site 16% of total Naukri 1% of total Naukri 18% of total Naukri sessions sessions sessions
Slide 27: Competition
Competition • Local job boards – Monsterindia.com – Timesjobs.com – Shine.com • Linkedin in India – Solves a different problem • Continuous innovation in product and service the key to counter competition 27
Slide 28: Some international job sites
Some international job site’s Name of the Revenue No. of No. of unique Approx website profiles/ clients Market Cap resumes in mn 51job.com* USD 277 mn 64 334,000 USD 2.07 bn (China) Seek.com^ AUD 241 mn 4.2 - AUD 5.52 bn (Australia) Recruit# @JPY 10,492 - - JPY 2.17 tn (Japan) (100 million) * Annual
Slide 29: 99acres
99acres 29
Slide 30: 99acres website screenshot
0 Delhi/NCR | Mumbai | Bangalore | Chennai All) Qacres. l 992 No.1 Property Portal Ask & Answer @ Residential — Projects Looking to: RENT / PG © All Properties Sell / Rent Property FREE Commercial Projects Only All Residential vy Noida Min Price vii Max Price ow | Bedroom Hyderabad | Pune | Kolkata
Slide 31: Online real estate business - India
Online real estate business - India • Real estate estimated to be the largest advertising category in print • Our estimate for spend in online is INR 2.5 to 3.0 bn in FY 13-14 – growing at 30 to 40% p.a. • 99acres a leader amongst 6 players – Google and local classifieds sites (like olx and quikr) a
Slide 32: Traffic share – Online real estate listing sites
Traffic share – Online real estate listing sites Traffic share of various real estate sites based on data from Comscore 60 50 40 % tarffic share 30 20 10 0 99acres indiaproperty.com magicbricks.com makaan.com commonfloor.com housing.co.in * Change in traffic share on account of tagging of site/ chan
Slide 33: 99acres business model
99acres business model Revenue Model Listing and Branding/ Visibility So we get advertisements the most Paid by agents and clients We’ve got the developers most real estate Currently free to listings individuals Others:- Microsites, home page links, So we get the most Google Ad sense, response adver
Slide 34: 99acres important metrics
99acres important metrics • About 31% traffic share in Aug, 2014 – Basis Comcore data • In FY 13-14, over – 18,000 paying agents – 4,000 paying developers – 0.54 million paid listings • ……..And growing 34
Slide 35: 99acres's two main objectives
99acres’s two main objectives Product innovation User experience Sales team Quality of outreach listings Customer Number of service listings Improve traffic share Keep topline growth rate high Brand building Analytics Mobile 35
Slide 36: New products launched
New products launched • Price trends launched basis listings data Price trends on the site New projects • Showcasing new projects which is a large platform launched market Mobile app launched • For android and iOS • Verification of listings to improve quality Verified listings of data 36
Slide 37: Mobile app – navigation, search box and search results screenshots
Mobile app – navigation, search box and search results screenshots
Slide 38: Mobile app - property detail, new project search and listing posting
Mobile app - property detail, new project search and property listing posting
Slide 39: Mobile an important source of traffic
Mobile an important source of traffic Android app iOS app HTML5 site 8% of total 99acres 0.8% of total 20% of total sessions 99acres sessions 99acres sessions
Slide 40: Jeevansathi
Jeevansathi 40
Slide 41: Jeevansathi website screenshot
@ Live Help Membership Options | Success Stories | Register Now “8 — Jeevansathi:com it Call us On 1-800-419-6299} Toll Free] Indian Matrimonials - We Match Better Only in India Hindi-Delhi | Marathi | Hindi-UP | Punjabi | Telugu | Bengali | Tamil | Gujarati | Kannada | Hindi-MP | Bihari more ¥ Quic
Slide 42: Online matrimonial business - India
Online matrimonial business - India • Our estimate is the online market in FY 13-14 was INR 4.5 bn • 3 main players • Used by – Those disconnected from mother communities – Youngsters wanting choice • In many instances process is driven by family • Fragmented market – Basis geography – Communities (
Slide 43: Jeevansathi business model
Jeevansathi business model Website – FreeSotowelist get – Freethe to most search clients – Free to express interest – Free to accept others expression of interest – Pay to get contact details Offline centres (10 centres operational) – Walk in sales for matching So we get services the most Franchise
Slide 44: Jeevansathi imperatives
Jeevansathi imperatives • Improve free to paid conversion rate • Reduce EBITDA losses while maintaining growth rates • Focus on key identified communities 44
Slide 45: Competition
Competition • 3 main players – Bharatmatrimony is the leader – Shaadi is no. 2 – Jeevansathi no. 3 • Bharatmatrimony dominates states in south India and non resident Indians from these states • Shaadi leads in Gujarat and Punjab and non resident Indians from these states • Jeevansathi leads in certa
Slide 46: Mobile app
Mobile app = Search your Match 65% Profile Completion Bride Groom 74° 18years > «GB years > Interests Recieved @ iA Marketing Professional Religion > PI 27 Years 5'4" Brahmin Brahchar Gujrati/Kutchi Rs 5- 7.5 lac Marketing Professional Mother Tongue > =. 27 Years 5'4" Brahmin Brahchar Gujrati/Kutchi
Slide 47: Shiksha
Shiksha 47
Slide 48: Shiksha website screenshot
ACnaukrlcom group company Registered User: Login Email \d Passw Login | Forgot Password | New User: WiuScias( ° SOO EN shiksha XIE eee) ABETTER fr com ! WAY TO YOUR ae 2PORA Ae | Stop Fallowing. start Exploring. EUS SU 0] AIMS CORPORATE (ye | Fi ike (tr ING KOCH! 2014-4 feresvaren-etet send (cows Un
Slide 49: Home page for Engineering
Home page for Engineering Engineering in India — Home Minstitutes @FAQ PQRA College Predictor Tools ~ ("| Exams Featured Institutes for Engineering _— Recent Articles on Engineering JEE Advanced 2014: Cut- off marks at 20 percentile for various Boards e\ Se, The cut off marks at 20 percentile of suc
Slide 50: Home page for MBA
Home page for MBA MBA in India — Home Minstitutes @FAQ @QkA_ iliRankings /HlArticles — [¥ Apply Online Featured Institutes for MBA Recent Articles on MBA CMAT Sept 2014: Test pattern and exam ! syllabus The exam duration is 180 minutes. Hundred questions are divided in four sections... CMAT Septembe
Slide 51: Home page for Overseas Education
Home page for Overseas Education 51
Slide 52: Educational classifieds business - India
Educational classifieds business - India • Spend in print estimated to be over INR 2.0 bn for under graduate, post graduate and executive education market • Few online players 52
Slide 53: Shiksha business model
Shiksha business model Advertising BySocolleges we get and universities to attract applicants the most Both Indian and foreign entities (and their agents) clients advertise Lead sales Bought by colleges and their agents A large number of Indian students go overseas for education So we get the most E
Slide 54: Shiksha strategy
Shiksha strategy • Strengthen the brand Leverage leadership • Improve information on colleges and courses • Promote user generated content • Assist students in exploring Provide quality • Become the default for information on customer experience education in India and overseas • Ask and answer New p
Slide 55: Competition
Competition • No direct competitors • Other players include – Htcampus – Careers360 – Pagalguy (a MBA aspirant community) 55
Slide 56: Investee companies
Investee companies 56
Slide 57: Portfolio status
Portfolio status INR Million Total Approx. diluted amount and converted Investee Company Website invested shareholding % % of Total Active Zomato Media Pvt Ltd. www.zomato.com 1441 50% 39% Applect Learning Systems Pvt Ltd. www.meritnation.com 718 56% 19% Etechaces Marketing and Consulting Pvt Ltd. w
Slide 58: Investee companies financials
Investee companies financials INR million Total Approx. diluted amount and converted Investee Company Website invested shareholding % Operating revenue Operating EBITDA FY11-12 FY 12-13 FY 13-14 FY11-12 FY 12-13 FY 13-14 Partly owned subsidiary Zomato Media Pvt Ltd. www.zomato.com 1441 50% 20.4 113.
Slide 59: Zomato
@ DelhiNCR v RESTAURANTS & NIGHTLIFE CATERING MOBILE APPS PRINT GUIDES —_- BROWSE RESTAURANTS / WHAT DO YOU WANT TO DO ® q@ # Get home Go out fora Go out for Visit a café delivery meal rinks or deli BROWSE OUR SPECIALS 44) Desserts & : oes Catering Wm & Bakes
Slide 60: Zomato
Zomato • A clear leader in the restaurant category – Coverage of • 35 Indian cities • 63 cities in 13 countries including UAE, Philippines, Sri Lanka, Portugal, UK, New Zealand, South Africa • A leader in most cities – Planning to launch in 30+ cities across 15 more countries over the next 2 to 3 ye
Slide 61: Zomato – business model
Zomato – business model • Business model – Digitise restaurant menus, provide relevant information (including map coordinates, pictures etc) • Regular updation through feet on street beats – Generate ratings and reviews and enable picture uploads from users – Provide a wow user experience • search c
Slide 62: Zomato – mobile app
Zomato — mobile app Delhi NCR v Al (174) HIGHLIGHTS @ Home Delivery @ Dine In 250m @ Bar Available @ Air Conditioned Serves Non Veg CUISINES CHINESE Ardee City, Gurgaon Menu 1 Photo Chinese NORTH INDIAN Ardee City, Gurgaon 258m HOURS Rite) Giirities ‘HIRES 12:30 PM to 3:30 PM, 7:30 PM to 11:30 PM CO
Slide 63: Meritnation
Meritnation . (EEE {22"«| Df purchase \ Co EF Jo nation Callus at 011.40705070 or | [OER pore” mma create Account Entrance Exams Class XI Class XI Class X Class IX Class VII Class VII Class VI Class V Class IV Class I Class I Class I Join now for FREE ; JOIN NOW India's largest online education port
Slide 64: Meritnation
Meritnation • Freemium model • Direct to consumer • Provides free solutions mainly for – mathematics and science for K12 of popular national Indian curriculum’s viz. CBSE and ICSE – Some State Board’s curriculum added • Paid product for online assessment and teaching solutions – provides resources t
Slide 65: Meritnation - update
Meritnation - update • Over 3 million visitors every month • Increase engagement – practice questions – school pages • Increase no. of paid users – tele calling – demo at home – web based video to explain benefits • Improved – search – ask and answer • Mobile app 65
Slide 66: Canvera
Canvera i) C ‘e| n ve rd PRODUCTS NEWS BLOG CONTACT SIGN IN preserving memories Exquisite Photobooks for Special Occasions © Genuineness Check Check whether your Canvera product is genuine Barcode number ~~ . Where to find Barcode num Best-in-class craftsmanship involved in every album Q Looking for
Slide 67: Canvera
Canvera • B2B2C marketplace – connects fragmented professional photographers with consumers looking to hire photographers • Build brand with the consumer but monetise through the professional photographer • Products & services include: – Web solutions to help professional photographer build their we
Slide 68: Canvera
Canvera • Business model – Photographers pay to order printed albums or photographs – Additional sources of monetization possible • Micro site • Sales presence in 200+ cities • New launches – Every printed book has a unique URL • Authenticity check • ebook readily available – Photographers directory
Slide 69: Policybazaar
Policybazaar Hiring | Complaints | Knowledge | Ask | Contact Us | FAQs ii B+1|) 421 policybazaar@ r BEST FINANCIAL WEBSITE ACnaukricom, (ie) & INVENTUS Capital portfolio company. @ Sign In Track Application Stop. Compare. Save. IAMAI Digital Awards 2014 Advertisement | a O Insurance Or Life @ Invest
Slide 70: Policybazaar
Policybazaar • Online price comparison site – Mainly for insurance – A clear value add to individuals • A leader in its category • Regulated by the insurance regulator, IRDA • A large untapped and growing market – A fraction (about 2%) of the Indian population is insured 70
Slide 71: Mydala
Noida, Delhi NCR v rude... LOUIE St A BA India's largest discount coupon site Home Restaurants Health&Beauty Travel FreeDeals Activities & Hobbies Products LuckyDraw WalkinDeals Online Coupons i TSFRIDAYS ~ S SEARCH BY KEYWORD WHAT ARE YOU LOOKING FOR? Q OR BROWSE BY POPULAR CATEGORIES Ome Coupons G
Slide 72: Mydala
Mydala • A deals and couponing site – Large sales team which sources deals – Power deals on mobile (partner with telecom operators) • Evolving in to a merchant marketing platform on web and mobile – Majority revenues from mobile • Large addressable market 72
Slide 73: Mydala app
Mydala app Mobile App Mobile Website 73
Slide 74: Happily unmarried
Happily unmarried ABOUT US INTERNS MUSIC IN THE HILLS STORE LOCATOR FIND A GIFT HAPPILY it! UNMARRIED |, "ANATOMY OF THE CAN! NDIA | HEY GOOD LOOKING! THANKS FOR HITTING ON US \ly HE) QS GHFTS FOR YOUR VALENTINE wi ic (spy MY ACCOUNT Q ve (KT O 74 OWS a
Slide 75: Happily Unmarried
Happily Unmarried • Designs and sells fun quirky products – With an Indian touch • Mainly offline sales as of now – Plans to scale online 75
Slide 76: Financials (Standalone)
Financials (Standalone) 76
Slide 77: Consistent long-term growth in Revenue & Profitability
Consistent long-term growth in Revenue & Profitability Revenue Profitability INR Million INR Million 6000 2500 432 5000 985 465 2000 1339 395 4000 714 1500 511 279 369 320 3000 2122 1939 1000 1817 1690 3719 2000 569 1474 3387 1423 1325 3056 1315 1260 1227 391 2425 1003 986 977 935 1954 904 500 840 1
Slide 78: Team
Team 78
Slide 79: Management Team
Management Team Name and age Qualifications Designation/ Role Previously worked Year of with joining Sanjeev Bikhchandani, 51 BA Economics St. Stephens, Founder and Executive Vice Lintas, Glaxo Smith 1995 PGDM IIM-A Chairman Kline Hitesh Oberoi, 42 B Tech, IIT Delhi, PGDM, IIM-B Managing Director &
Slide 80: Management Team contd.
Management Team contd. Name and age Qualifications Designation/ Role Previously worked with Year of joining Nishant Pandey, 39 B Tech, IIT Delhi, MBA SVP Product Development - Naukri Schlumberger 2008 ISB Vivek Jain, 41 B Tech, IIT Delhi, Chief Product Officer - Naukri & Isoft, Adobe, IBM, ICICI 201
Slide 81: Internet in India
Internet in India Rapidly growing and access through wireless/ mobile increasing 81
Slide 82: Rapidly growing internet user base
Rapidly growing internet user base • About 200 million internet users as of Oct, 2013 – Internet users grew at a CAGR of 32% between 2000-2012 Source : www.iamai.in 82
Slide 83: Growing broadband user base
Growing broadband user base Source : TRAI annual report 2012-13 Narrowband defined as speeds < 256 kbps and Broadband defined as speeds > 256 kbps • As per the TRAI (Telecom Regulator) data there were 164.81 million internet subscribers as of March, 2013 – 143.20 accessing through wireless 83
Slide 84: Mobile presents a large opportunity
Mobile presents a large opportunity • Over 900 million mobile connections – An estimated 100 million internet users have been added through mobile in the last 24 months • Affordable smartphones expanding market – Mobile a focus of our strategy • WAP site • Apps • To launch more mobile friendly featu
Slide 85: Investor relations contacts
Investor relations contacts Name Chintan Thakkar Sudhir Bhargava Designation CFO EVP - Corporate Finance e mail chintan.thakkar@naukri.com sudhir.bhargava@naukri.com Telephone +91 120 3082137 +91 120 3082006 Fax +91 120 3082095 Info Edge (India) Limited, B 8, Sector 132, Address Noida – 201 301, Utt
Info Edge (India) — Investor Presentation (October 2014) on 6ix