Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (April 2011)
53 slides from Info Edge India's investor presentation, April 2011
Slide 1: Info Edge (India) Ltd: India's Online Classified 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: 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 – 2011) 3500 45% §An online classifieds company with – Strong brands 39.14% 37.30% 40% – Experienced management team 3000 35.10% 34.30% – Capitalising on growth 35% 2500 30.00% 28.80% Total income (INR M) 30% EBITDA
Slide 5: Our brands
Our brands Cnaukrigulf.com Firstnaukricom C2 A jobsite for campus hiring! @. Quadrangle iia ~S brij.com Cnaukri.ccom India’s No.1 Job Site Jeevansathi.com We Match Better shiksha.com Wh 99acres.com Buy, Rent, Sell Ji altcheckdeals.... al :
Slide 6: Our portfolio
Our portfolio 300.0% 99acres Revenue CAGR 2006 to 2011 200.0% Quadrangle Jeevansathi 100.0% Naukri 0.0% -50% 0% 50% 100% -100.0% -200.0% -300.0% EBITDA Margin Note:- For FY06-FY11 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 § Consolidate traffic share gained over the last 30 months § Garner higher market share as growth is coming back § Specific product innovations to combat the threat of Linked In and semantic search (Trovix) Naukri from Monster § Reap gains from sales team efficiencies – Restru
Slide 10: Leveragable sales/customer interface infrastructure
Leveragable sales/customer interface infrastructure Info Edge Sales Offices illustrative Map Key Observations Chandigarh § ~ 1470 Sales/ client facing staff or 77% of the company’s workforce § Nation wide coverage through 48 company Delhi NCR (Noida, Gurgaon) branch offices in 31 cities in India Jai
Slide 11: Environment
Environment 11
Slide 12: Environment overview
Environment overview Business cycle Demographics Internet Competition and Economic and GDP per penetration Environment capita ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü 12
Slide 13: Business cycle and economic environment
Business cycle and economic environment India’s GDP growth ~8% Highlights 70,000 16 60875 60,000 14 §India has staged a recovery in 2010-11 post 53218 the meltdown of 2008-10. 12 50,000 47234 §Indian recovery faster than rest of the world. 41292 10 Billions INR 40,000 35867 §India’s GDP CAGR(%) of 6
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 rate of almost 37.9%. §According to the World Fact Book, India is projected to have 70
Slide 15: Internet penetration (1/2)
Internet penetration (1/2) Highlights §From 5% in 2000 to 36% 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 has reached to rural mas
Slide 16: Internet penetration (2/2)
Internet penetration (2/2) Growth Picture of Broadband in India Implications for Info Edge 10 Subscribers in Millions 8 § Significant user base coupled with 8.77 headroom for growth. 6 6.22 4 § Penetration of broadband increasing. 2 3.87 § Mobile phone penetration already 0.18 1.35 2.34 exceeds 600M
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 FY 10-11 YoY and increase in deferred sales revenue
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 recor
Slide 21: Online job search is popular and Naukri has the dominant position
Online job search is a popular activity and Naukri has the dominant position A popular online activity Most used websites in India Matrimonial search Post your own Twit Check real estate info Info for higher education Online tutorials Dating/Friendship Professional Networking Online education/learni
Slide 22: Naukri has gained market-share with 55% traffic-share
Naukri has gained market-share and is a clear # 1 with 55% traffic-share Traffic share of various recruitment sites Traffic share of various recruitment sites from Comscore from Alexa.com 70 60 50 40 30 20 10 0 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Sep-10 Nov-10 Jan-11 Mar-11 Nov-07 Jan-09 Mar-0
Slide 23: Hiring is back
Hiring is back Naukri Job Speak Index ( New Jobs) Naukri hiring survey 90% 73% 80% 80% 72% 70% 60% 56% 50% 40% 36% 30% 24% 20% 2% 10% 1% 2% 2% 3% 1% 0% Layoffs will No hiring Replacement New jobs will be happen hiring will created happen Jan-10 Jul-10 Jan-11 Total no. of new jobs posted in July 2008
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 30 80 70 25 60 20 50 40 15 30 10 20 5 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY08 FY08 FY08 FY08 FY09 FY09 FY09 FY09 FY10 FY10 FY10 FY10 FY11 FY11 FY11
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 commerciall
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 Po
Slide 28: 99acres is emerging to be the largest brand in its segment
99acres is emerging to be the largest 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 Highest traffic share amongst al
Slide 29: 99acres is currently gaining traffic share
99acres is currently gaining 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
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 i
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
Slide 33: Shiksha
Shiksha Space for education providers Banner Ad College Database 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 cl
Slide 35: Shiksha : Competitive scenario and traffic share
Shiksha : Competitive scenario and traffic share Traffic Comparison between Shiksha and Minglebox, a close competitor 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 §Wee
Slide 36: Company Financials
Company Financials 36
Slide 37: Consistent long-term growth in Revenue / Profitability
Consistent long-term growth in Revenue / Profitability Revenue trend Profitability INR Million INR Million 3500 1400 511 279 3000 1200 207 334286 2500 369 320 1000 225 2000 800 1315 75 1260 1500 600 118 2425 986 2117 939 1964 1954 842 840 1000 45 400 666 652 635 1277 597 595 569 553 441 120 500 391
Slide 38: Growth momentum interrupted by slowdown; recovery in last 4 quarters
Growth momentum was interrupted by slowdown; recovery witnessed in last 4 quarters Quarterly Operating Revenue Quarterly Operating Trend Last 3 Years Profitability INR Million INR Million 900 300 800 250 700 600 200 500 150 400 100 300 200 50 100 0 0 Q1 FY08 Q2 FY08 Q1 FY10 Q2 FY10 Q1 FY11 Q2 FY11 Q
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 has led to a strong cash accretion 6% 1% Cash & Liquid Investments Other Investments 12% 6% 76% Net Fixed Assets Strong Cash & liquid Profitability investments Other Current Assets
Slide 40: Recruitment: Profitability has improved post slowdown
Recruitment: Profitability has improved post slowdown 800 60% 700 50% Quarterly recruitment revnues (INR M) 600 Highlights 40% 500 EBITDA margin (%) 400 30% § Consistent growth in recruitment revenue for last 8 quarters. 300 20% § Revenues & margins impacted by 200 economic slowdown in FY 09. 10% 10
Slide 41: Improving financial performance of Non Recruitment Businesses
Improving financial performance of Non Recruitment Businesses EBITDA losses gradually declining INR M 200 150 100 50 0 -50 -100 Q1 FY11 Q2 FY11 Q1 FY08 Q2 FY08 Q1 FY10 Q2 FY10 Q4 FY11 Q4 FY08 Q1 FY09 Q2 FY09 Q4 FY10 Q3 FY11 Q3 FY08 Q4 FY09 Q3 FY10 Q3 FY09 Revenue (INR M) EBITDA (INR M) 41
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 (home, § Large market with annuity income personal, car, education) § Comparison shopping of financial products § Invested INR 200 mm for a 49% stake – Committed
Slide 44: Meritnation.com
Meritnation.com Applect § Launched www.meritnation.com § Team experienced in development of education content, assessment modules and delivery. – Commenced paid services for online educational assessment. § Large addressable market. – Provides free solutions mainly for mathematics and science for st
Slide 45: Zomato.com
Zomato.com Zomato § Website operational § Experienced team – Commenced coverage in Delhi and adding cities like Mumbai, Bangalore, Pune etc § Large addressable market – Revenues from advertising and lead sales § Committed Rs 47 mn § Rs 18 million disbursed 45
Slide 46: Mydala.com
Mydala.com Mydala § Website operational § Experienced team – a site offering discount offers/ deals § Large addressable market – revenues from commissions from merchants § Committed Rs 90 mn 46
Slide 47: Team and Governance
Team and Governance 47
Slide 48: > 50% share-holding with Founding management group and ~26% with FIIs
> 50% share-holding with the Founding management group and ~26% with FIIs ESoP Trust, 1.34% Individuals and others, 9.96% Bodies Corporate, 0.39% Mutual Funds Wholetime and Directors & their Banks, 7.87% Foreign entities, 54.05% Institutional Investors, 26.39% Reliance Mutual Fund 4.90% Fidelity Fun
Slide 49: Board of Directors
Board of Directors Whole time Non Executive Independent Sanjeev Bikhchandani (47) Kapil Kapoor (46) Saurabh Srivastava (65) Arun Duggal (64) 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 50: Management Team
Management Team vSanjeev Bikhchandani, 47, Founder and Executive Vice Chairman, BA Economics St. Stephens, PGDM IIM-A. Previously with Glaxo Smith Kline. Year of joining 1995 vHitesh Oberoi, 38, Managing Director & CEO, B Tech, IIT Delhi PGDM, IIM-B. Previously with HLL (Unilever). Year of joining 2
Slide 51: Management Team contd.
Management Team contd. vRajesh Khetarpal, 38, SVP - Finance, CA. Previously with Bharti. Year of joining 2007 vRohit Manghnani, 35, SVP and Business Head - Jeevansathi, B Com, MBA, FMS, Delhi University. Previously with Home Shop 18. Year of joining 2010 vManoj. P, 37, SVP - Sales Naukri, MBA - Xavi
Slide 52: 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 § Aud
Slide 53: 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
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