Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (February 2015)
85 slides from Info Edge India's investor presentation, February 2015
Slide 1: Info Edge (India) Limited
Info Edge (India) Limited India’s internet classifieds company February, 2015 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: 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 3
Slide 4: Strategic investments
Strategic investments India’s leading restaurant ratings and India’s leading financial products review site comparison site Shareholding ~48%* Shareholding ~23%* India’s leading education site for India’s leading site for professional school children photographers Shareholding ~56%* Shareholding ~36
Slide 5: Our brands are market leaders
Our brands are market leaders • Internal businesses –Naukri, 99acres, Shiksha • Strategic investments –Zomato, Policybazaar, Meritnation, Canvera and Mydala 5
Slide 6: Nationwide sales/customer interface infrastructure
Nationwide sales/customer interface infrastructure Info Edge sales offices illustrative map Key Observations Chandigarh Nation wide coverage through 60 company branch Delhi NCR (Noida, Gurgaon) offices in 42 cities in India Jaipur Lucknow ~ 2650 sales/ servicing/ Ahmedabad Bhopal Kolkata client faci
Slide 7: Strong financial performance track record
Strong financial performance track record Total Income and EBITDA margin for the standalone entity, 2006 – 2014 6000 50% 43.63% 45% 5000 39.14% 40.09% 38.65% 37.30% 40% 35.10% 34.30% 35% Total income (INR M) 4000 EBITDA margin (%) 30.00% 28.80% 30% 5491.2 3000 25% 2397 4837.5 2241 2152 20% 4165.4 13
Slide 8: 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% 2% Cash & Liquid 5% Investments Other Cash and Investments 20% equivalents Rs 12.45 bn Net Fixed Assets High margins and operating 68% Other Current leverage Assets Other Assets Negative
Slide 9: Board of Directors
Board of Directors Whole time Non Executive Independent Saurabh Srivastava (68) Arun Duggal (68) Sanjeev Bikhchandani (51) Kapil Kapoor (50) 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 10: 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 11: Shareholding with founding management group and FIIs
~44% shareholding is with the Founding management group and ~29% with FIIs (as of Dec 31, 2014) Individuals and others, 14.05% ESoP Trust, 0.26% Wholetime Directors & their entities, Bodies Corporate, 44.36% 0.52% Mutual Funds and Banks, 12.00% Foreign Institutional Investors, 28.81% HDFC Mutual Fun
Slide 12: Naukri
Naukri 12
Slide 13: Naukri.com website screenshot
3 a E fale ( Employer Zone Cnaukri.com : | - 5 , Services india’s Not Job Site Jobs Recruiters Companies Service: More Login Buy Online All Jobs IIT/IIM Jobs Govt. Jobs Intemational Jobs | agree to the Terms and Conditions ~ All Jobs by Company Jobs by Category Jobs by Location Jobs by Designation J
Slide 14: 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 comScore) • Over 120,000 job listings and 40 million resumes on the site • 9,400+ avg. resumes added daily in Q3 FY 14-15 • Over 124,000 resumes modified daily in Q3 FY 14-15 • Between 600,000 and 800,00
Slide 15: Dominant traffic share
Dominant traffic share 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 Naukri Monsterindia Timesjobs Shine ~39% of the total sessions, in Q3 FY 14-15, through mobile (however, above data is for traffic only from desktops and laptops) Excludes Linkedin since traffic may not pertain to jobs Sourc
Slide 16: Naukri is a business of the virtuous circle
Naukri is a business of the virtuous circle Benefits • Naukri has over 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 back
Slide 17: 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 18: 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% 18
Slide 19: 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 19
Slide 20: Strategy
Strategy • Career site manager and response management New products for tools recruiters • Employee referral tool • Recruiter profile • App for Android, iOS Mobile • HTML5 site • Semantic search Superior search • Job seeker experience better and faster • Use of analytics to improve matching Customer
Slide 21: 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 22: Screenshot of Career Site Manager
Screenshot of Career Site Manager 22
Slide 23: Mobile an important source of traffic
Mobile an important source of traffic About 39% sessions in Q3 FY 14-15 (vs 35% in Q2 FY 14-15) from mobile Android app iOS app HTML5 site 21% of total Naukri 1% of total Naukri 17% of total Naukri sessions sessions sessions 23
Slide 24: 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 25: 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 25
Slide 26: Some international job sites
Some international job site’s Name of the Revenue No. of profiles/ No. of unique Approx Market website resumes in mn clients Cap 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 (in - - JPY 2.17 tn (Japan) 100 million) Info
Slide 27: 99acres
99acres 27
Slide 28: 99acres website screenshot
PREMIUM VIEWS AT HIGHER FLOORS Provident GreenPark Setvopuram Combatore Suaring rom J Provident Sunworth, Bangalore Royal Elegancia,s | 3BHK ating 4 BHK ring tam & 99acres,com Al india Adal a Preach Pet nn BUY RENT PROJECTS += COMMERCIAL DEALERS Property Gallery Featured New Projects A PURAVANKARA C
Slide 29: 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 • 99acres a leader amongst 6 players – Google and local classifieds sites (like olx and quikr) also compete for this market
Slide 30: 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/ ch
Slide 31: 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 32: 99acres important metrics
99acres important metrics • About 30% traffic share in Dec, 2014 (Source comScore) • In FY 13-14, over – 18,000 paying agents – 4,000 paying developers – 0.54 million paid listings • ……..And growing 32
Slide 33: 99acres's strategy
99acres’s strategy 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 33
Slide 34: 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 Map based sear
Slide 35: Mobile app – navigation, search box and search results
Mobile app – navigation, search box and search results screenshots 35
Slide 36: Mobile app - property detail, new project search and listing posting
Mobile app - property detail, new project search and property listing posting 36
Slide 37: Mobile an important source of traffic
Mobile an important source of traffic About 30% sessions in Q3 FY 14-15 (vs 29% in Q2 FY 14-15) from mobile Android app iOS app HTML5 site 9% of total 99acres 0.8% of total 20% of total sessions 99acres sessions 99acres sessions 37
Slide 38: Jeevansathi
Jeevansathi 38
Slide 39: Jeevansathi.com website screenshot
7% Download : Jeevansathi-com andrea 36 Got Any Questions? Call Us! Indian Matrimonials - We Match Better 1800-419-6299 (Toll Free) Hindi-Delhi | Marathi | Hindi-UP | Punjabi | Telugu | Bengali | Tamil | Gujarati | Kannada | Hindi-MP | Bihari | More ~ Quick Bride ’ Religion v Mother tongue v Caste ’
Slide 40: Online matrimonial business - India
Online matrimonial business - India • Online market estimated to be INR 4.5 bn in FY 13-14 • Three main players – Bharat matrimony, Shaadi and Jeevansathi • Used by – Those disconnected from mother communities – Youngsters wanting choice • In many instances process is driven by family • Fragmented m
Slide 41: 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 42: Jeevansathi imperatives
Jeevansathi imperatives • Improve free to paid conversion rate • Reduce EBITDA losses while maintaining growth rates • Focus on key identified communities 42
Slide 43: 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 44: Mobile app
Mobile app Profile Completion Search your Match 7. N 65% xX Bride Groom Members Members Accepted Me | Accepted 18 years > eC) 25 years > Interests Recieved (05) Marketing Professional z 27 Years 5'4" Brahmin Brahchar Religion > Gujrati/Kutchi Rs 5-7.5 lac Marketing Professional 27 Years 54" Brahmin
Slide 45: Mobile an important source of traffic
Mobile an important source of traffic About 56% sessions in Q3 FY 14-15 (vs 52% in Q2 FY 14-15) from mobile Android app HTML5 site 23% of total 33% of total Jeevansathi sessions Jeevansathi sessions 45
Slide 46: Shiksha
Shiksha 46
Slide 47: Shiksha website screenshot
ACnaukricom group company Registered User: ff MBA~ After12th~ All Courses & Enter Institute or Course Name cy Study in India G Study Abroad Management Full Teme MBA | Part Time MBA Distance MBA | BBA Science & Engineering BE/BTech | MTech Agriculture & Forestry Banking & Finance Accounting | Banking
Slide 48: 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 49: 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 50: Home page for Overseas Education
Home page for Overseas Education 50
Slide 51: 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 51
Slide 52: 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 53: 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 54: Competition
Competition • HTcampus • Careers360 • Pagalguy (a MBA aspirant community) 54
Slide 55: Investee companies
Investee companies 55
Slide 56: Portfolio status
Portfolio status As of Dec 31, 2014 INR Million Total Approx. diluted amount and converted % of total Investee Company Website invested shareholding % portfolio Active Zomato Media Pvt Ltd. www.zomato.com 1441 *48% 37% Etechaces Marketing and Consulting Pvt Ltd. www.policybazaar.com 325 23% 8% Apple
Slide 57: 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 48% 20.4 113.
Slide 58: Zomato
Se zomato We're Hiring! Log in with Facebook Log in Discover great places 46-at around you in Delhi NCR ©) All of Delhi NCR AVANEAt SS.) @Vaaiua® >» = 35 MILLION-EOODIE S~ SE ZOMATO EVERY MONTH
Slide 59: Zomato
Zomato • A clear leader in the restaurant category – In January, 2015 announced acquisition of • Urbanspoon (presence in US, Australia and Canada) and • Mekanist (presence in Turkey) – Coverage of • 40 Indian cities • 90+ cities in 18 countries (apart from India) including UK, Canada, Czech Republic
Slide 60: 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 61: Zomato – mobile app
Zomato — mobile app Fzomato SIGN UP AND GET STARTED f Instant Facebook Connect = Os LUNCH 2556 Sunny Pan-Asian Delicacies Il Collections | aa Trending this Week Delhi NCR cee Valentifié's Day Snecials Yauatcha Vasant Kunj, New Delhi 192 Reviews 3.9 601 votes ty es a Call Bookmark CheckIn Been Here R
Slide 62: Policybazaar
Policybazaar policy About Insurance ¥ Loans ¥ Help ¥ Sign In Q | [24x7 Toll Free] @ N : im) Th _ ere Term Insurance Health Insurance Car Insurance Investment Two Wheeler e a> yy A ° Font Critical Illness Personal Accident Home Insurance Travel Insurance Loans & Cards 62
Slide 63: Policybazaar
Policybazaar • Online price comparison site for financial products – 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 63
Slide 64: Meritnation
Meritnation 1 i Downioad our == e#neritnation & 011-40705070 or monte App [.] | Explore | Log in | Live Classes CA-CPT TITJEE | AIPMT Class XII Class XI Class X Class IX Class VIII Class VII Class VI Class V Class IV Class IIT Class II Class I Join now for FREE Crack your exams with the best tuition
Slide 65: 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 66: 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 • Offline model 66
Slide 67: Canvera
Can¥era Canvera Indian Wedding Phatography.costs HOW MUCH? Read More © Canvera Photobook EASY TO ORDER | DURABLE | BEAUTIFUL Our stringent quality check ensures that each handcrafted Canvera Photobook surpasses your expectations. With a three layered packaging and shipping within a safety box, a bag
Slide 68: Canvera
Canvera • Produces printed wedding albums for professional photographers • Build brand with the consumer but monetise through the professional photographer • Products & services include: – Printed products (albums) sold to the photographer (main source of revenue) – Design of printed products and we
Slide 69: 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 70: Mydala
Need Help? Call us at O11-43444444 | am in Delhi NCR * BB invite Friends 0 Get py APP F Can (0) Login india's leeyewt discount coupon site Discover great deals & discounts in Delhi NCR Eg salon, gym. restaurant, tatoo, vicc, ®ipiart coupons, sale, andhert Deals Foodand Drinks | Seauty | HealmandFitn
Slide 71: 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 71
Slide 72: Mydala app
Mydala app Search Nearby Shop Top deals The Great Kebab Factory Pay Just Rs, 19 and get 25% off 7 175k+ offers fine dining affair with The Great +a 9 Gat extra 30% on 500mi bottle Angrezee Dhaba Vaakd 500 14 Enjoy 4 IMFL along with 1 veg or non veg platter at Rs 499. Enjoy 9 A Chicago Pizza Get extr
Slide 73: Happily Unmarried
Happily unmarried Interns | Blog | Track Order wwii wg Cart Login Shop by = : ® category ~*~. e me | 7 7 ( i | | ( Store Locator | Contact Us Valentine Gifts Bar Apparel pM owe a Phone Covers iu Home Bags e P cHecrour > > UFO Hey Good looking! Thanks for hittin on us! f t PO Office Ww Gift Packs Sta
Slide 74: Happily Unmarried
Happily Unmarried • Designs and sells fun quirky products – With an Indian touch • Mainly offline sales as of now – Online scaling gradually 74
Slide 75: Financials (Standalone)
Financials (Standalone) 75
Slide 76: 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 77: Team
Team 77
Slide 78: 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 79: 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 ISB SVP Product Development - Naukri Schlumberger 2008 Vivek Jain, 41 B Tech, IIT Delhi, PGDM IIM Chief Product Officer - Naukri & Isoft, Adobe, IBM,
Slide 80: Internet in India
Internet in India Rapidly growing and access through wireless/ mobile increasing 80
Slide 81: 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 81
Slide 82: 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 82
Slide 83: 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 • HTML5 site • Apps 83
Slide 84: Banks that cover us
Banks that cover us Firm Analyst Phone Number E-mail Ambit Capital Nitin Jain +91 22 3043 3291 nitinjain@ambitcapital.com Anand Rathi Mohit Jain +91.22.6626 6531 mohitjain@anandrathi.com Axis Capital Nivedan Reddy + 91.22.4325 2525 nivedan.reddy@axiscap.in B&K Securities Sushil Sharma +91.22.4031 71
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
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