Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (October 2009)
69 slides from Info Edge India's investor presentation, October 2009
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 numb
Slide 3: The company
The company • India’s leading internet classifieds company • Bouquet of leading websites – Recruitment : Naukri, Naukrigulf, Asknaukri, Brijj, Firstnaukri – Real estate : 99acres, Allcheckdeals – Matrimonial : Jeevansathi – Education : Shiksha • Rapid growth historically (growth currently impacted b
Slide 4: Our businesses
Our businesses Info Edge Recruitment & Careers Real Estate Matrimonials Education Launched in March 1997 Launched in Sept 2005 Acquired in September Launched in May 2008 83% of company’s net sales in Leader in emerging online 2004 To be the hub for Q2 FY10 vs 88% in FY 09 market No. 3 matrimony educ
Slide 5: Our team
Our team Sanjeev SanjeevBikhchandani Bikhchandani(46) (46) Managing ManagingDirector Directorand andCEO CEO BA BAEcon. Econ.St. St.Stephen’s. Stephen’s.PGDM PGDMIIM-A IIM-A Previously Previouslywith withGlaxo GlaxoSmithKline SmithKline Ambarish AmbarishRaghuvanshi Raghuvanshi(48) (48) Hitesh HiteshO
Slide 6: Recruitment classifieds and services
Recruitment classifieds and services Naukri, Quadrangle, Naukri, Quadrangle, Naukrigulf, Naukrigulf Asknaukri, Brijj, Asknaukri, Firstnaukri Brijj, Firstnaukri
Slide 7: The recruitment market
The 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 35 cities > 1 mm Online population Other Source: Nasscom, Department of Higher
Slide 8: Job search is popular
Job search is popular % Internet users undertaking activity 90% 84% 80% 71% 68% 67% 70% 62% 55% 60% 50% 40% 30% 20% 10% 0% Search for travel Job search Search for non Instant Check General Dating /Friendship products travel products Messaging/ New s Chatting % undertaking activity Source : Juxtconsu
Slide 9: Two major revenue streams
Two major revenue streams • Major – Job listing and Employer Branding / Visibility – Resume Database Access • Others – Job Seeker services – Google Ad Sense – Advertising other than for jobs – Mobile revenues – Resume short listing and screening 9
Slide 10: Revenue Model
Banner Revenue Model Ad Panels Job Seeker Services Mobile Revenues 10
Slide 11: Revenue Model
Banner Revenue Model Ad Featured Job Listings Company Google Ad Sense 11
Slide 12: Banner Ad RESDEX
Info Edge India India’s Online Classifieds Company la Don't let jobs wait Cnaukri., com ¥ for you on your PC. India’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 |Res
Slide 13: 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 the most clients We’ve got the o Product and most jobs technology innovation So we get o Superior sales and the most service response So we get execution the most
Slide 14: Competitive activity resulted in market expansion
Competitive activity resulted in market expansion • Online – Monsterindia and Jobsahead – Timesjobs – from Times of India, India’s leading newspaper group – Others – Jobstreet, Clickjobs, Ndtvjobs, Shine • Print – Times of India, Hindustan Times, Hindu, others • Recruitment consultants and search fi
Slide 15: Coming out of slowdown
Coming out of slowdown • Benefit from – Improving traffic share • Consistently above 60% as per Comscore for 5 consecutive months – Improved sales force efficiency – Improved telesales efficiency – Product innovations • Revive lapsed accounts • Increase ad spend – TV advertising done after a gap of
Slide 16: Quadrangle
Quadrangle 16 Offline head hunting business. Success based revenue model.
Slide 17: Naukrigulf
Info Edge India India’s Online Classifieds Company Naukri <naukri.com Teh Cp ® 5 pol! Wabi gI! gag Search Jobs Register Your CV Jobseekers Login Career Tools Select Functional Area £ | Over 30 years of Global recruitment = success ‘ Browse Jobs By Category Job Seekers Top Management Accounts/Tax/CS/
Slide 18: Asknaukri
Asknaukri A career guidance site. To develop a repository of questions and answers. 18
Slide 19: Brijj
Brijj 19 A professional networking site with about 2 mm registrations.
Slide 20: Firstnaukri
Firstnaukri 20 A site for fresher hiring
Slide 21: Real estate
Real estate 99acres, Allcheckdeals
Slide 22: Surge in demand during 2004 to 2007 for real estate
Surge in demand during 2004 to 2007 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 A
Slide 23: 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 – Builders/Brokers Branding & Visibility – Microsites, home page links, b
Slide 24: Banner Ads Panels
Banner Ads Panels Buyer Database 24
Slide 25: Property Listings Banner
Banner Property Ads Listings Banner Ads Featured Gallery Sponsored Properties Google Adsense 25
Slide 26: Competition
Competition • Online – Magicbricks, Indiaproperty, Makaan • Print – Times of India, Hindustan Times, Hindu, others • Other mass media – TV, Radio, Outdoor • Real estate brokers – Large population, highly fragmented, no license requirements, unregulated – Many are our clients 26
Slide 27: Coping with slowdown
Coping with slowdown • Growth impacted due to market conditions – Some traction in economy housing segment / buyers beginning to show interest • Continuing to reach out to builders/ developers/ brokers – They are working harder to get customers – Internet a cost effective media • More evangelizing n
Slide 28: Allcheckdeals
Allcheckdeals Broking services. Success based revenue model. Over 350 transactions closed in Q2 FY 10 28
Slide 29: Matrimonial classifieds & services Jeevansathi
Matrimonial classifieds & services Jeevansathi
Slide 30: 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 – A steady growth market • Urbanization and increased economic activity – increased mobility of work force – nuclear families – breakdown of traditional networks • Arranged marriages
Slide 31: Jeevansathi website
Info Edge India India’s Online Classifieds Company @LiveHelp Membership Options | Success Stories | Register Now a Jeevansathi.com Call us on Indian Matrimonials - We Match Better | Bride wal | Hindu wi [ Select a Caste iv] [™) Photo profiles only [21 Yrs \¥|to[ 35 Yrs |v] | Select a Community \v| [
Slide 32: Revenue model
Revenue model Website • Free to list • Free to search • Free to express interest • Free to accept others expression of interest • Pay to get contact details Offline centres (14 centres operational) • Walk in sales for matching services 32
Slide 33: Key metrics
Key metrics Website • 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 Offline centres (Jeevansa
Slide 34: Competition
Competition • Online players – Shaadi, Bharatmatrimony, Simplymarry – Offline centres • Print classifieds – Times of India, Hindustan Times, others • Marriage Bureaus and matchmakers – Community focused, fragmented, unorganized, geographically constrained 34
Slide 35: Education Shiksha
Info Edge India India’s Online Classifieds Company Education Shiksha x ‘i.conr onl. Jeevansathicom (CD oonie shileshia ct eae Pom DE iliccom Firstnaukricsi
Slide 36: Shiksha
Info Edge India India’s Online Classifieds Company shiksha.com Home Groups | Ask & Answer | Important Dates Study Abroad ¥ Shiksha Confused about which course & institutes to join? Ask Shiksha experts and members Test Preparation ¥ Career Options ¥ Add your course and institutes to shiksha.com Add N
Slide 37: Educational classifieds
Educational classifieds • www.shiksha.com launched May, 2008 • Over 110,000 listings aggregated • Product feedback encouraging • Market receptive – Offices in 10 cities • Large market dominated by print – Weekly supplement in English dailies – Three categories of advertisers • Indian education playe
Slide 38: Coping with the slowdown
Coping with the slowdown • A startup business – Investment continues in • Sales force • Product – Key deliverables • Traffic share • Customer acquisition • Consumer experience 38
Slide 39: Investee Companies
Info Edge India India’s Online Classifieds Company Investee Companies x ‘i.conr onl. Jeevansathicom (CD oonie shileshia ct eae Pom DE iliccom Firstnaukricsi
Slide 40: Applect
Applect • Launched www.meritnation.com – Commenced paid services for online educational assessment – Also providing free solutions for mathematics and science for standard 6 to 12 of a popular curriculum (CBSE) and 6 to 8 for another (ICSE) • Large addressable market • Team experienced in developmen
Slide 41: Meritnation
Info Edge India India’s Online Classifieds Company \meritnation Home = Study Center | Purchase My Profile Personality Zone Ask & Answer NEW Blog Login Register Register now! FREE Username* Password [ Email* Se Board VI-VIII canal mobiles [ to terms and conditions Reasons to Register FREE NCERT Solut
Slide 42: Etechaces
Etechaces • Comparison shopping of financial products • Currently selling insurance online through www.policybazaar.com – Loan products added (home, personal, car, education) • Experienced team • Large market with annuity income • Propose to invest INR 200 mm, in tranches, for a 49% stake – Invested
Slide 43: Policybazaar
Info Edge India India’s Online Classifieds Company fe Y A Cnaukri.com’ group venture ~~ News & Communityw Agents Registration FAQsw Contact Us policy bazaar@" Insurance compare kiya? Insurance Credit Cards ‘ ’ Your service ts great = J Pail the conventence ~ Varun Bhatia, Hyderabad Our Promise So Ca
Slide 44: Studyplaces
Studyplaces • Online education information site • Large addressable market – Education a path for upward mobility • Experienced promoter • Invested INR ~ 40 mn for a minority stake 44
Slide 45: StudyPlaces website
Info Edge India India’s Online Classifieds Company a StudyPlaces tom Raliecation matters Careers and Destinations Search for colleges offering course of your choice: MBA Medicine Law Engineering _ Professional Certifications Vocational Courses { Australia } StudyPlaces Community: Forums MBA admissio
Slide 46: Governance
Info Edge India India’s Online Classifieds Company Governance icon 99 a jacres.com ne Pope Bera
Slide 47: Board of Directors
Board of Directors Independent Non Executive Whole time Saurabh SaurabhSrivastava Srivastava(63) (63) Arun ArunDuggal Duggal(62) (62) Kapil KapilKapoor Kapoor(45) (45) Sanjeev SanjeevBikhchandani Bikhchandani(46) (46) Independent IndependentDirector Director Independent IndependentDirector Director
Slide 48: Corporate Governance
Corporate Governance • Separation of Chairman and CEO role • Five independent Directors out of a total of ten • Disclosure of balance sheet and cash flow statements every quarter even though not mandatory • Internal audit performed by an external firm • Audit Committee comprises Independent Director
Slide 49: Financials
Info Edge India India’s Online Classifieds Company Financials icon 99 a jacres.com ne Pope Bera
Slide 50: Financial performance
Financial performance Revenues Figures in INR mm 3000 2500 2000 2738.0 1500 2396.6 1000 1471.6 840.6 723.2 701.8 671.4 500 641.6 645.1 619.4 451.2 194.7 0 04 05 06 07 08 09 09 09 09 09 10 10 20 20 20 20 20 20 FY FY FY FY FY FY FY FY FY FY FY FY 1 2 3 4 1 2 Q Q Q Q Q Q 50 Q2 FY 10 over Q2 FY 09 : 10.
Slide 51: Financial performance – Other verticals
Financial performance – Other verticals (mainly Jeevansathi and 99acres) Revenues Figures in INR mm 400 350 335.12 300 250 225.12 200 150 118.67 90.65 91.45 86.29 91.61 100 74.80 78.29 44.54 50 3.80 0 FY2005 FY2006 FY2007 FY2008 Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 FY2009 Q1 FY10 Q2 FY10 51
Slide 52: Financial performance
Financial performance Figures in INR mm EBITDA Net Profit 36.45% 900 37.33% 38.21% 700 30.0% 35.38% 800 22.84% 31.0% 30.0% 35.13%31.00% 600 25.0% 24.53% 700 23.2% 21.80% 21.48% 34.28% 500 21.6% 20.8% 600 31.00% 19.3% 20.0% 29.7% 18.3% 21.56% 23.9% 400 16.7% 938.7 500 842.0 55 4.9 59 6.9 15.0% 400 30
Slide 53: Balance sheet
Balance sheet (as on 30.09.09) Liabilities Assets 2.0% Net block + CWIP Share capital 0.4%6.5% 0.6% 8.5% 6.5% 6.4% Capital advances 10.6% ESOP o/s amount 8.0% 0.8% Deferred tax asset 0.1% Reserves and surplus Investments Secured loans Cash and bank balance Deferred sales revenue other current assets
Slide 54: Shareholding pattern
Shareholding pattern (as on 30.09.09) ESoP Trus t, Ov ers eas 2.19% Corporate Indiv iduals and Bodies , 4.09% others , 11.96% Bodies Corporate, 0.55% Mutual Funds Wholetime and Banks , 3% Direc tors & their entities , 54.15% Foreign Ins titutional Inv es tors , 24.06% Equinox 5.68% Fidelity Funds 5.
Slide 55: Update Q2 FY10
Update Q4 FY Update Q209 FY&10 FY 09
Slide 56: Recruitment solutions
Recruitment solutions Rs in million Q2 FY10 Q2 FY09 Change YoY Net Sales from Recruitment 460 563 -18% % to Company Net Sales 83.4% 86.1% -2.7% EBITDA 175 241 -27% EBITDA margin Recruitment 38.1% 42.8% -4.7% • EBITDA margin in Naukri declined from 45.2% in Q2 FY 09 to 36.9% in Q2 FY 10 • Jobspeak, a
Slide 57: Hiring Survey
Hiring Survey 44.5% 45.0% 37.8% 37.5% 38.0% 40.0% 35.0% 30.0% 25.0% 20.0% 14.3% 13.4% 15.0% 9.5% 10.0% 4.6% 5.0% 0.0% Layoffs will No hiring Replacement New jobs will be happen hiring will created happen Dec-08 Jun-09 Survey of recruiters conducted by Info Edge India Limited in December 2008 (sample
Slide 58: Naukri Jobspeak Index
Naukri Jobspeak Index 1200 1000 902 963 1000 781 801 697 738 774 800 711 718 727 701 729 677 664 600 400 200 0 De 8 Au 8 09 09 9 09 9 M 9 08 08 8 Se 9 09 9 8 l -0 l -0 v- 0 -0 r- 0 0 -0 c- 0 t- 0 n- n- b- g- p- g- p- ar ay Ju Ju Ap Oc No Ja Ju Fe Se Au M Naukri Jobspeak Index Naukri Jobspeak Index i
Slide 59: Naukri
Naukri Q2 FY10 Q2FY09 Change YoY No. of resumes in mm 18.7 14.9 25% No. of resumes added daily in '000 12 17 -29% No. of resumes modified daily in '000 58 38 53% No. of corporate customers in '000 18.1 18.6 -3% • Hiring by companies picking up though slowly – Growth indexed to GDP growth rates – Dec
Slide 60: Coming out of the slowdown
Coming out of the slowdown • We are emerging in a stronger competitive position – Continued to invest in • technology • product innovation – Operating metrics up - traffic share, applications, resume’s • Greater efficiencies from the sales system – Workforce right sized • Strong balance sheet lends
Slide 61: Naukri traffic share (%)
Naukri traffic share (%) 70 60 50 Traffic share in % 40 30 20 10 0 7 8 08 09 8 9 08 09 8 8 9 9 -0 -0 -0 -0 -0 l-0 -0 l-0 n- n- - - ov ov ar ar ay ep ay ep Ju Ju Ja Ja M M N N M M S S Nauk ri M ons terindia Tim es jobs 61 Source : Comscore
Slide 62: Naukri traffic share
Naukri traffic share 62 Source : www.alexa.com
Slide 63: Naukri traffic share
Naukri traffic share Source : http://trends.google.com/ 63
Slide 64: Naukrigulf
Naukrigulf • 1 office each in Riyadh & Bahrain and 2 in Dubai • Slowdown has set in and business will take a little longer to revive 64
Slide 65: Other verticals (mainly 99acres & Jeevansathi)
Other verticals (mainly 99acres & Jeevansathi) Rs in million Q2 FY10 Q2 FY09 Change YoY Net Sales from Other Verticals 92 91 1% % to Company Net Sales 16.6% 13.9% 2.7% EBITDA -33 -86 42% • EBITDA loss in Q2 FY10 comprised – Jeevansathi profit INR 2 mm – 99acres INR 9 mm – balance INR 26 mm from brij
Slide 66: 99acres
99acres • Increase in listings – Property listings at over 199,000 in Q2 FY 10 vs 153,000 in Q2 FY 09 – Increase in paid listings to 170,000 in Q2 FY 10 vs 128,000 in Q2 FY 09 • Site revamp – UI/ search algorithm • Revenue growth impacted – real estate sector possibly one of the worst effected due t
Slide 67: Jeevansathi
Jeevansathi • Investment in growth continues – Brand building to continue – 14 domestic offline centres (Jeevansathi Match Point) operational • About 3.3 mm profiles as on 30.09.09 vs 2.5 mm profiles as on 30.09.08 – Continue focus on Northern and Western Indian market • Explore non resident Indian
Slide 68: Investor relations
Investor relations Name Ambarish Raghuvanshi Sudhir Bhargava Designation Director and CFO SVP - Corporate Finance 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 Sector 2, Noida - 201301, U.P.
Slide 69: Info Edge (India) Ltd.
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Info Edge (India) — Investor Presentation (October 2009) on 6ix