Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (May 2010)
49 slides from Info Edge India's investor presentation, May 2010
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 – 2010) An Online Classifieds company with – Strong Brands – Experienced management team – Currently coming out of slowdown Rapid growth historically – Revenue CAGR of 33% over FY06-10 – INR 2.64 Billion revenue in
Slide 5: Our brands
Our brands Cnaukrigulf.com 2 Ld Firstnaukricom C2 Ajebsite for campus hiring! Quadrangle ve os € —S Drij.com ee rae India’s No.1 Job Site Jeevansathi.com , We Match Better shiksha.com NU, 99acres.conm Buy, Rent, Sel TL allcheckdeals. com woe! ¥ 3 Je 5 P
Slide 6: Our portfolio
Our portfolio 99acres Revenue CAGR 2006 to 2010 Quadrangle Naukri Jeevansathi EBITDA Margin Note:- For FY06-FY10 the data for other brands is not relevant. 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 Superior sales and service execution Build the brand So we get the most So we get response the most traffic 7
Slide 8: Milestones
Milestones 2007 onwards “Secure the Future” Levels of 2000-2007 Evolution “Scale-up” 1 Expansion of main 1997-2000 9 Nov 2006: business “Bootstrapping” Public listing in India 2 Coming out of the 8 Launched new portals: slowdown 2006- Naukrigulf.com 2005- 99acres.com 7 September 2004: 3 Ability to a
Slide 9: Key drivers of success
Key drivers of success Consolidate traffic share gained over the last 24 months. Specific Product innovations to combat the threat of Linked In and Trovix from Monster. Naukri Reap gains from sales team efficiencies – Restructuring, ERP, Newer sales channels. Continue to invest in brand, sales team,
Slide 10: Leveragable Sales/Customer Interface Infrastructure
Leveragable Sales/Customer Interface Infrastructure Indo Edge Sales Offices illustrative Map Key Observations Chandigarh ~ 1200 Sales staff or 75% of the company’s workforce Nation wide coverage through 49 company Delhi NCR (Noida, Gurgaon) branch offices in 32 cities in India Jaipur Only “dot com”
Slide 11: Environment
Environment 11
Slide 12: Environment overview
Environment overview Business cycle Demographics Internet Competition and Economic and GDP per penetration Environment capita 12
Slide 13: Business cycle and Economic Environment
Business cycle and Economic Environment India’s GDP growth ~8% Highlights India less impacted by the meltdown. Indian recovery faster than rest of the world. Billions INR India’s GDP CAGR(%) of 6.2% from 1991- 2008, in sharp contrast to the developed world With Indian economy expected to clock >7.5%
Slide 14: Demographics
Demographics Highlights India is among the world's youngest nations with a median age of 25 years. 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% of its population in the working class category by 2030. India wi
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 town. Given the continuous growth of internet users over the years, the smaller town have overtaken Top 8 Metros in Internet Usage (indicates that internet has reached to rural masses
Slide 16: Internet penetration (2/2)
Internet penetration (2/2) Growth Picture of Broadband in India Implications for Info Edge Significant user base coupled with headroom for growth. Penetration of broadband increasing. 3G and wireless broadband expected to go live within the next few months. Mobile phone penetration already exceeds 5
Slide 17: Businesses
Businesses m 99ac o res.c ri.c om uk Na com Jeev ans ha. athi .com iks Sh 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, Market Size and Potential Highlights product/technology innovation Large market Growth in economy/IT/ITES to drive Major online job market – Job listin
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 recorded The estimated Market-size Channels: generated 20% new jobs high
Slide 21: Online job search is a popular activity and Naukri has the dominant position
Online job search is a popular activity and Naukri has the dominant position Most Popular Online Activities Most used websites in India ( other than e-mails ) Job Search is second popular activity on the Internet in India Naukri is one of India’s most used websites Source: JuxtConsult, India Online
Slide 22: Naukri has gained market-share with 60% traffic-share
Naukri has gained market-share and is a clear # 1 with 60% traffic-share Traffic Share of various recruitment sites Traffic Share of various recruitment sites from from Comscore from Alexa 70 60 50 40 30 20 10 0 N o v -0 7 J a n -0 8 M a r-0 8 M a y -0 8 J u l- 0 8 N o v -0 8 J a n -0 9 M a r-0 9 M
Slide 23: Hiring is back
Hiring is back Naukri Job Speak Index ( New Jobs) Naukri hiring survey 72.30% 37.80% 44.50% 37.50% 38.00% 14.30% 24.20% 9.50% 13.40% 4.60% 1.20% 2.30% No hiring Replacement New jobs Layoffs hiring will will will happen be created happen Dec-08 Jan-09 Jan-10 Index Total no. of new jobs posted in July
Slide 24: Naukri.com has performed on key-metrics
Naukri.com has performed on key-metrics Candidate resume growth Average daily resumes added and modified 25 80 70 20 60 15 50 40 10 30 20 5 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY08 FY09 FY10 FY08 FY09 FY10 Number of Resumes on Naukri.com (in Millions) Resum
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 Freshers from campus Launched commercially in last quarter C
Slide 26: 99acres
99acres Banner Ad Banner Ad Panels Banner Ad 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 Potential Potential Most revenue from developers, builders and
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 Property sites Traffic Share of various Real estate Property sites from Comscore from Alexa 50 45 40 35 % tarffic sh are 30 25 20 15 10 5 0 N ov -08 N ov -09 J an-09 J un-09 J ul-09 J an-10 A ug-08 S ep-0
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. Growing economy, increased commercial activity coupled with rising number of Business and leisure.
Slide 30: Jeevansathi
Jeevansathi Search JS Home JS Membership Page Options page Source: http://www.jeevansathi.com/ 30
Slide 31: 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 Aro
Slide 32: Shiksha
Shiksha Space for education providers Banner Ad College Database Source: http://www.shiksha.com/ 32
Slide 33: 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 classi
Slide 34: 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 Overall 110,000 listings aggregated Product feedback encouraging Offices in 11 cities Challenges : Large market dominated by Print Weekly
Slide 35: Company Financials
Company Financials 35
Slide 36: Consistent Long-Term growth in Revenue / Profitability
Consistent Long-Term growth in Revenue / Profitability Revenue Trend for Recruitment & Profitability Other Verticals INR Million INR Million 3000 1200.0 2500 1000.0 335 368.4 800.0 2000 600.0 986.1 938.6 1500 842.0 400.0 665.9 652.3 634.8 596.9 2117 1953.9 554.9 1000 441.2 391.1 365.3 200.0 237.7 22
Slide 37: Growth Momentum interrupted by slowdown; Clear signs of recovery
Growth Momentum interrupted by slowdown; Clear signs of recovery in last 2 Quarters Quarterly Operating Revenue Quarterly Operating Trend Last 3 Years Profitability INR Million INR Million 700 250 600 200 500 400 150 300 100 200 100 50 0 0 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 Q4 F
Slide 38: Info Edge has always maintained a strong balance sheet and strong cash flows
Info Edge has always maintained a strong balance sheet and strong cash flows Fixed Cost Model and Profitability has led to a strong cash accretion 1% Assets 7% Cash & Liquid Investments 8% Other Investments 4% Net Fixed Assets Other Current Assets 80%(about INR 3745 Other Assets Million) 1% Liabilit
Slide 39: Recruitment: Uptrend on profitability is back
Recruitment: Uptrend on profitability is back Highlights Consistent growth in recruitment revenue in FY 08. Revenues & Margins impacted by economic slowdown in FY 09. Back on Growth track in FY 10 Source : Economic Survey, Naukri Job Speak Index, Ma Foi Employment Survey 39
Slide 40: Improving financial performance of Non Recruitment Businesses
Improving financial performance of Non Recruitment Businesses INR M ~ EBITDA Losses reduced in FY10 150 100 50 0 -50 -100 Q1 FYO8 Q2 FYO8 Q3 FYO8 Q4 FYO8 Q1 FYO9 Q2 FYO9 Q3 FY09 Q4 FYO9 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Revenues EBITDA 2 Qtr Moving Average trend-line 40
Slide 41: Investee Companies
Investee Companies 41
Slide 42: Policybazaar.com
Policybazaar.com Etechaces Currently selling insurance online through Experienced Team www. policybazaar.com – Loan products added (home, personal, car, Large market with annuity income education) Comparison shopping of financial products Propose to invest INR 200 mm, in tranches, for a 49% stake –
Slide 43: 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 standard
Slide 44: Team and Governance
Team and Governance 44
Slide 45: > 50% share-holding with the Founding management group and ~25% with FIIs
> 50% share-holding with the Founding management group and ~25% with FIIs Overseas ESoP Trust, Corporate 1.93% Individuals and Bodies, 0.51% Bodies others, 11.19% Corporate, 0.73% Mutual Funds and Banks, 6.60% Wholetime Directors & their entities, 54.15% Foreign Institutional Investors, 24.89% Equin
Slide 46: Board of Directors
Board of Directors Whole time Non Executive Independent Kapil Kapoor (45) Saurabh Srivastava (64) Arun Duggal (63) Sanjeev Bikhchandani (46) Chairman & Non Executive Independent Director Independent Director Managing Director and CEO Director B.Tech IIT Kanpur, B.Tech IIT Delhi, BA Econ. St. Stephen
Slide 47: Management Team
Management Team Sanjeev Bikhchandani (46) Managing Director and CEO BA Econ. St. Stephen’s. PGDM IIM-A Previously with Glaxo Smith Kline Ambarish Raghuvanshi (48) Hitesh Oberoi (37) Whole Time Director and CFO Whole Time Director and COO CA, PGDBM XLRI B.Tech IIT - Delhi, PGDM IIM-B Previously with
Slide 48: 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 Audit committ
Slide 49: Investor Relations Contacts
Investor Relations Contacts 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 - 201