Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (February 2010)
67 slides from Info Edge India's investor presentation, February 2010
Slide 1: Info Edge (India) Ltd. - India's Online Classifieds Company
Cnaukriconr 99zrsscon Jeovansath az Khaukricgm GD briijcom First Info Edge (India) Ltd. India’s Online Classifieds Company policybazaar@ —StutyPlacesfe — )
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, Brijj, Firstnaukri – Real estate : 99acres, Allcheckdeals – Matrimonial : Jeevansathi – Education : Shiksha • Rapid growth historically (growth currently impacted by slowdown)
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 85% of company’s net sales in Leader in emerging online 2004 To be the hub for Q3 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, Brijj, Firstnaukri Firstnaukri
Slide 7: The recruitment market
The recruitment market Over 470 universities and Recruitment solutions 22,000 colleges Over 3.5 mm graduates every year Over 180,000 IT professionals every year Over 2.2 mm Print employed by IT & Recruitment ITES consultants 35 cities > 1 mm Online population Other Source: Nasscom, Department of Hig
Slide 8: Job search is popular
Job search is popular % Internet users undertaking activity 90% 84% 80% 71% 68% 67% 62% 70% 60% 55% 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 © 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 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: Competition
Competition • Online – Monsterindia – 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 firms – Highly fragmented – Many are our clients 14
Slide 15: Coming out of the slowdown
Coming out of the slowdown • Benefit from – Improving traffic share • Consistently above 60% as per Comscore for 8 consecutive months – Improved sales force efficiency – Improved telesales efficiency – Product innovations • Increase ad spend – New TV commercial launched in Q4 • Head count right size
Slide 16: Quadrangle
Quadrangle 16 Offline head hunting business. Success based revenue model.
Slide 17: Naukrigulf
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Slide 18: Brijj
Brijj 18 A professional networking site with about 2.7 mm registrations.
Slide 19: Firstnaukri
Firstnaukri 19 A site for fresher hiring
Slide 20: Real estate
Real estate 99acres, Allcheckdeals
Slide 21: Secular growth market – currently emerging from a crash
Secular growth market – currently emerging from a crash Market characteristics Reasons for growth 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$9
Slide 22: 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 23: Banner Ads Panels
Banner Ads Panels Buyer Database 23
Slide 24: Property Listings Banner
Banner Property Ads Listings Banner Ads Featured Gallery Sponsored Properties Google Adsense 24
Slide 25: 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 25
Slide 26: Emerging from the slowdown
Emerging from the slowdown • Growth impacted in H1 due to market conditions • In Q3 real estate market witnessed more traction especially in economy housing segment – New projects launched in North and West India – Buyers beginning to show interest – 99acres.com witnessing sequential growth (Q3 reve
Slide 27: Allcheckdeals
Allcheckdeals Broking services. Success based revenue model. Over 440 transactions closed in Q3 FY 10 27
Slide 28: Matrimonial classifieds & services Jeevansathi
Matrimonial classifieds & services Jeevansathi
Slide 29: Jeevansathi
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Slide 30: Secular growth market with many segments
Secular growth 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
Slide 31: 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 31
Slide 32: 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 33: 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 33
Slide 34: Education Shiksha
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Slide 35: Shiksha
Info Edge India India’s Online Classifieds Company a Shiksha shiksha.com Choose the right course with Home | Ask &Answer | Admissiol ‘adlines | Study Abroad ¥ | Career Options v MBA | Engineeri Why join Shiksha.com? Search Institutes & Courses Get guidance to study ETc] Register Free! Enter Institut
Slide 36: Educational classifieds
Educational classifieds • www.shiksha.com launched May, 2008 • Over 110,000 listings aggregated • Product feedback encouraging • Market receptive – Offices in 11 cities • Large market dominated by print – Weekly supplement in English dailies – Three categories of advertisers • Indian education playe
Slide 37: 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 37
Slide 38: Investee Companies
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Slide 39: Applect
Applect • Launched www.meritnation.com – Commenced paid services for online educational assessment – Provides free solutions mainly for mathematics and science for standard 6 to 12 of popular curriculum’s viz. CBSE and ICSE – Some State Board’s curriculum added • Large addressable market • Team expe
Slide 40: Meritnation
Info Edge India India’s Online Classifieds Company \meritnation uccess in school can now be yours with Testimonials «<>» You have done a marvellous job.My son who is doing VII grade in Dubai is very much Activity Stream Maheshmaheshwari5 viewed Study Material. SATWIK has taken Test. The team at meri
Slide 41: 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 42: Policybazaar
Info Edge India India’s Online Classifieds Company ~ A Cnaukri.com’ group venture Agents Registration Forum Contact Us q ol pol icybazaat@ * ? Pie as Insurance compare kiya FAQs ¥ Advertisement icicilombard.com Secure your family's health Instantly Insurance Loans Credit Cards ‘Your service is great
Slide 43: 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 43
Slide 44: StudyPlaces
Info Edge India India’s Online Classifieds Company a StudyPlaces tom faliecation 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 admission for
Slide 45: Governance
Info Edge India India’s Online Classifieds Company Governance Wn # less c LCOMY 9ecros.com feevansathi.com CQ msn shikshacm “cauericem 3" briljcom Firstnaukrici
Slide 46: Board of Directors
Board of Directors Independent Non Executive Whole time Saurabh SaurabhSrivastava Srivastava(63) (63) Arun ArunDuggal Duggal(63) (63) Kapil KapilKapoor Kapoor(45) (45) Sanjeev SanjeevBikhchandani Bikhchandani(46) (46) Independent IndependentDirector Director Independent IndependentDirector Director
Slide 47: 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 48: Financials
Info Edge India India’s Online Classifieds Company Financials ty Wn # less c LCOMY 9ecros.com feevansathi.com CQ msn shikshacm “cauericem 3" briljcom Firstnaukrici
Slide 49: Financial performance
FY 20 0 500 1000 1500 2000 2500 3000 04 FY 20 05 194.7 FY 20 451.2 06 FY 20 840.6 07 FY 20 1471.6 08 Q 1 FY 09 2396.6 Q 2 FY 09 671.4 Q 3 FY 09 723.2 Q 4 Revenues FY 09 701.8 FY 20 641.6 09 Q 1 FY 10 2738.0 Q 2 FY 10 619.4 Q 3 Q3 FY 10 over Q3 FY 09 : 6% decline in revenue and flat on net sales Figu
Slide 50: Financial performance – Other verticals (mainly Jeevansathi and 99acres)
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 90.00 100 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 Q3 FY10 FY
Slide 51: Financial performance
Financial performance Figures in INR mm EBITDA Net Profit 261.99 38.21% 38.04% 900 37.33% 700 40.0% 30.0% 245.16 35.38% 800 938.68 23.68% 31.0% 30.0% 31.00% 35.13% 35.0% 600 24.53% 25.0% 219.11 36.45% 21.80% 21.48% 700 34.28% 23.2% 235.15 30.0% 500 20.8% 21.6% 600 31.00% 22.84% 20.0% 251.26 29.7% 19
Slide 52: Balance sheet
Balance sheet (as on 31.12.09) Liabilities Assets 1.5% Net block + CWIP Share capital 7.3% 0.4% 6.4% 0.7% 6.7% 6.1% 10.1% Capital advances 0.8% ESOP o/s amount 17.1% Deferred tax asset 0.1% Reserves and surplus Investments Secured loans Cash and bank balance Deferred sales revenue other current asse
Slide 53: Shareholding pattern
Shareholding pattern (as on 31.12.09) ESoP Trust, Overseas 2.03% Individuals and Corporate others, 11.67% Bodies, 4.09% Bodies Corporate, 0.57% Mutual Funds and Banks, Wholetime 2.91% Directors & their entities, 54.15% Foreign Institutional Investors, 24.58% Equinox 5.68% Fidelity Funds 5.52% KPCB a
Slide 54: Update Q3 FY10
Update Q4 FY Update Q309 FY&10 FY 09
Slide 55: Recruitment solutions
Recruitment solutions Rs in million Q3 FY10 Q3 FY09 Change YoY Net Sales from Recruitment 500 498 0.4% % to Company Net Sales 84.9% 84.5% 0.4% EBITDA 217 199 19% EBITDA margin Recruitment 43.4% 39.9% 3.6% • EBITDA margin in Naukri was at 44.05% in Q3 FY 10 vs 45.8% in Q3 FY 09 and 36.9% in Q2 FY 10
Slide 56: Naukri Jobspeak Index
Naukri Jobspeak Index 1200 1000 902 963 1000 781 801 697 738 774 800 711 718 727 701 729 701 760 713 677 664 600 400 200 0 De 8 De 9 Fe 0 9 09 Au 8 Au 9 M 09 A p 09 M 9 S e 08 O c 08 Ja 8 S e 09 O c 09 9 Ju 9 No 8 No 9 l-0 l-0 v- 0 v- 0 r- 0 -0 c- 0 c- 0 t- 0 t- 0 n- n- b- - g- p- g- p- ar ay Ju Ju
Slide 57: Naukri
Naukri Q3 FY10 Q3 FY09 Change YoY No. of resumes in mm 19.7 15.9 24% No. of resumes added daily in '000 10.5 14.0 -25% No. of resumes modified daily in '000 59 40 47% No. of corporate customers in '000 18.4 17.2 7% • Hiring by companies picking up though slowly – Growth indexed to GDP growth rates –
Slide 58: 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 – consistently above 60% for 8 consecutive months as per Comscore data • applications made through the site • resume datab
Slide 59: Naukri traffic share (%)
% traffic share Source : Comscore 10 20 30 40 50 60 70 0 Nov-07 Jan-08 Naukri traffic share (%) Mar-08 May-08 Jul-08 Naukri Sep-08 Nov-08 Monsterindia Jan-09 Mar-09 Timesjobs May-09 Jul-09 Sep-09 Nov-09 59
Slide 60: Naukri traffic share
Naukri traffic share 60 Source : www.alexa.com
Slide 61: Naukri traffic share
Naukri traffic share Source : http://trends.google.com/ 61
Slide 62: Naukrigulf
Naukrigulf • 1 office each in Riyadh & Bahrain and 2 in Dubai • Slowdown had set in but we were not impacted too much – pricing an advantage for us – business may however take a little longer to witness growth 62
Slide 63: Other verticals (mainly 99acres & Jeevansathi)
Other verticals (mainly 99acres & Jeevansathi) Rs in million Q3 FY10 Q3 FY09 Change YoY Net Sales from Other Verticals 89 91 -2.7% % to Company Net Sales 15.1% 15.5% -0.4% EBITDA (38.1) (49.4) -22.9% • EBITDA loss in Q3 FY10 comprised – Jeevansathi INR 1.6 mm – 99acres INR 10.9 mm – balance INR 25.5
Slide 64: 99acres
99acres • Real estate sector possibly one of the worst affected due to credit squeeze • Revenue impacted in slowdown but now recovering – sequential (Q3 over Q2) growth of 8.6% • Site revamp – UI/ search algorithm • Market for online classifieds expected to grow – Cost effective medium like internet
Slide 65: Jeevansathi
Jeevansathi • Continued to grow during the slowdown – 18.6% growth in revenue in 9 months ended December 31, 2009 over 9 months ended December 31, 2009 • Investment in growth continues – Brand building to continue – 14 domestic offline centres (Jeevansathi Match Point) operational • About 3.5 mm pro
Slide 66: 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 +91 120 308 2007 +91 120 308 2006 Fax +91 120 308 2095 Address Info Edge (India) Limited, A 88 Sector 2, Noida - 201301, U
Slide 67: Info Edge (India) Ltd. - February, 2010
Cnaukriconr 99zrsscon Jeovansath az Khaukricgm GD briijcom First Info Edge (India) Ltd. India’s Online Classifieds Company policybazaar@ —StutyPlacesfe — )
Info Edge (India) — Investor Presentation (February 2010) on 6ix