Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (August 2007)
41 slides from Info Edge India's investor presentation, August 2007
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 numbe
Slide 3: Key takeaways
Key takeaways • Rapid growth in Indian internet market • Clear and sustainable market leadership in online classifieds • Strong innovation pipeline for continuous differentiation • Robust financials with blue chip investors • Management depth for continued growth • Related diversifications • Externa
Slide 4: Three lines of business
Three lines of business Info Edge Recruitment Matrimonials Real Estate Launched in March 1997. Acquired in September 2004 Contributes more than 80% of No. 3 matrimony website in Launched in Sept 2005 company’s total income in Q1 India Leader in emerging online FY08 1.71 mm ever registered market No.
Slide 5: Business environment
Business environment Macro Trends Outcomes Beneficiaries Strong Job Creation Sustainable Economic Growth Rapid Urbanization Burgeoning Middle Class Mobile work force, Buying Power nuclear families Changing values Favorable and lifestyles Demographics (54% < 25 years) Adoption of Technology 5 Source:
Slide 6: Addressable market growing
Addressable market growing Internet and PC population Mobile users 60,000 200 180 Mobile Subscribers (Million) 50,000 160 140 40,000 120 (in '000) 30,000 100 80 20,000 60 40 10,000 20 0 0 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Dec-06 Mar-07 Jun-07 2001 2002 2003 2004 2005 Internet user PC Population Mob
Slide 7: Company overview
Company overview • VC investment from – ICICI Venture in 2000 – Kleiner Perkins Caufield & Byers and Sherpalo in 2006 (Secondary) • 57 offices in 32 cities in India + 2 in Dubai • 1220 employees (over 850 in sales) • Financials (Quarter ended June 30, 2007) – Revenue (up 77% YoY) – USD* 12.9 mm – Ne
Slide 8: Recruitment classifieds and services
Recruitment classifieds and services
Slide 9: Recruitment market
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 High attrition rates Online in the IT services sector range Other between 25-40% 35
Slide 10: Job Search
Job Search 100% 95% 94% 73% 80% 62% 61% 60% 53% 59% 60% 53% 48% 49% 37% 40% 20% 0% Emailing Job search Instant Check Online Chatting messaging new s music % undertaking activity 2007 % undertaking activity 2006 Source : Juxtconsult India Online Report May 2007, Population surveyed ~ 26,000 Job Searc
Slide 11: Revenue streams
Revenue streams • Major – Job listing and Employer Branding / Visibility – Resume Database Access • Others – Job Seeker services – Advertising other than for jobs – Mobile revenues – Resume short listing and screening – Google Ad Sense • Launch of www.asknaukri.com in July, 07 – To create user stick
Slide 12: Revenue Model
Banner Revenue Model Ad Panels Job Seeker Services Mobile Revenues 12 12
Slide 13: Revenue Model
Banner Revenue Model Ad Featured Job Listings Company Google Ad Sense 13 13
Slide 14: 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 15: 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 o Product and the most technology clients We’ve got the innovation most jobs o Superior sales and service execution So we get the most o Build the brand response S
Slide 16: Intense competition has resulted in market expansion
Intense competition has resulted in market expansion • Online – Monsterindia and Jobsahead – Timesjobs – from Times of India, India’s leading newspaper group – Others – Jobstreet, Dice, Clickjobs, Ndtvjobs • Print – Times of India, Hindu, others • Recruitment consultants and search firms – Highly fr
Slide 17: Naukrigulf.com
Naukrigulf.com • Launched in July 2006 • On site presence : Dubai – Site getting traction & clients – Low revenue currently but potential high • Gulf market attractive – to increase presence and investment – Cover more countries on site • Competition Bayt.com, Monstergulf, Timesjobs 17 17
Slide 18: Matrimonial classifieds & services
Matrimonial classifieds & services
Slide 19: 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 • Urbanization and increased economic activity – increased mobility of work force – nuclear families – breakdown of traditional networks • Arranged marriages are mostly within castes
Slide 20: Jeevansathi.com
Info Edge India India’s Online Classifieds Company (?) Live Help Explore Jeevansathi.com ¥ A Naukri.com group company | 30 Offices across Indi: nsathi.com Indian Matrimonials - We Match Better You have the power to search within : ¢ 254 Castes « 34 Communities « More than 2 Lakh Photo Profiles Get S
Slide 21: Revenue model
Revenue model • Free to list • Free to search • Free to express interest • Free to accept others expression of interest • Pay to get contact details 21 21
Slide 22: Key metrics
Key metrics • 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 22 22
Slide 23: Competition
Competition • Online players – Shaadi, Bharatmatrimony, Simplymarry – Offline presence – sustainability not established • Print classifieds – Times of India, Hindustan Times, others • Marriage Bureaus and pundits – Community focussed, fragmented, unorganized, geographically constrained 23 23
Slide 24: Real estate classifieds
Info Edge India India’s Online Classifieds Company Real estate classifieds 5G .conr soll. Cc India's Not Job Ste India's Property Baraar Indian Matrimonials « We Match Better
Slide 25: Surge in demand for real estate
Surge in demand 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 Aspirers; US$975–4,67
Slide 26: 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 - 55,000 listings (few paying) – Builders/Brokers Branding & Visibility –
Slide 27: Macro economic concerns
Macro economic concerns • Slow down in real estate activity due to prices stagnating/ coming off – Higher interest rates – Bank credit to the sector being tightened 27 27
Slide 28: Banner Ads Panels
Banner Ads Panels Buyer Database 28 28
Slide 29: Property Listings Banner
Banner Property Ads Listings Banner Ads Featured Gallery Sponsored Properties Google Adsense 29 29
Slide 30: Competition
Competition • Online – Magicbricks, Indiaproperty, 2bhk, 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, deregulated, – Many are our clients 30 30
Slide 31: Management
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Slide 32: Qualified and experienced management team
Qualified and experienced management team Board of Directors Kapil KapilKapoor Kapoor(43) (43) Arun ArunDuggal Duggal(60) (60) Chairman Chairman&&Non-Executive Non-ExecutiveDirector Director Non-Executive Non-ExecutiveDirector Director B.A.Econ, B.A.Econ,PGDM PGDMIIM-A IIM-A B.Tech B.TechIITD, IITD,
Slide 33: Financials
Info Edge India India’s Online Classifieds Company Financials Ly x .cony soll. Jeevansathi.com CD cena Cc India's Not Job Ste indea's Property Baraar Indian Matrimonials « We Match Better
Slide 34: Financial performance
Financial performance Revenues 40.0 35.0 30.0 25.0 20.0 35.0 USD MM 15.0 10.0 18.8 12.9 10.3 5.0 4.5 0.0 004 005 006 007 08 2 2 2 2 FY FY FY FY FY Q 1 Q1 FY08 over Q1 FY07 77% growth in revenue and 67% growth in net sales Exchange rate as of that year 34 34
Slide 35: Financial performance
Financial performance EBITDA Net Profit 12 35.0% 1 30.0% 33.3% 7.0 1.8 25.0% 29.7% 10 30.0% 22.40% 6.0 16.7% 18.3% 31.0% 20.0% 25.0% 8 5.0 20.8% 23.9% 15.0% USD MM 20.0% USD MM Margin4.0 6 12.5% 10.5 12.5% 2.9 4.3 15.0% 20.8%3.0 6.4 10.0% 4 16.7% 10.0% 18.3%2.0 5.6 22.40% 5.0% 2 3.2 5.0% 1.0 1.1 2.1
Slide 36: Balance sheet
Balance sheet Liabilities Assets Share capital Net block + CWIP 10% 1% 8% 0% ESOP o/s amount 4% 4% 15% Investments 17% Reserves and surplus Cash and bank 0% Secured loans balance 0% Deferred tax liability other current assets Deferred sales 65% revenue Advance 76% Other current recoverable from liab
Slide 37: Robust financials
Robust financials • Strong topline & bottomline growth • Consistent track record of profitability • High operating leverage • Strong cash flows • Treasury income higher in Q1 FY08 due to – Larger corpus (IPO proceeds) – Higher yields available in Q4 – Double indexation plans matured • Interest rate
Slide 38: Shareholding pattern
Shareholding pattern (as on 30.6.07) Individuals, Others, 0.93% 13.17% ESOP Trust, 2.34% Overseas Corp Bodies, 4.09% Bodies Corporate, 1.33% Promoters, 54.60% Foreign Inst investors, 19.77% Mutual Funds, 3.77% Fidelity Funds 6.66% KPCB and Sherpalo 4.08% Carlson Fund (DnB NOR) 2.36% Reliance Capital
Slide 39: Commitment to innovation
Commitment to innovation • Market segment innovation • Customer driven product innovation • Technology innovation • Initiatives – Distribution • Resume services • 99 acres – Advertising • TV commercial of 99 acres – Voice messaging 39 39
Slide 40: Key takeaways
Key takeaways • Rapid growth in Indian internet market • Clear and sustainable market leadership in online classifieds • Strong innovation pipeline for continuous differentiation • Robust financials with blue chip investors • Management depth for continued growth • Related diversifications 40 40
Slide 41: Helping People & Businesses Meet
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Info Edge (India) — Investor Presentation (August 2007) on 6ix