Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (May 2009)
67 slides from Info Edge India's investor presentation, May 2009
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, Asknaukri, Brijj, Firstnaukri – Real estate : 99acres, Allcheckdeals – Matrimonial : Jeevansathi – Education : Shiksha • Rapid growth historically (growth currently impacted b
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 86.4% of company’s net sales in Leader in emerging online 2004 To be the hub for Q4 FY09 and 86.2% in FY 09 market No. 3 matrimony
Slide 5: Our team
Our team Sanjeev SanjeevBikhchandani Bikhchandani(45) (45) 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(47) (47) Hitesh HiteshO
Slide 6: Recruitment classifieds and services
Recruitment classifieds and services Naukri, Quadrangle, Naukrigulf, Asknaukri, Brijj, Firstnaukri
Slide 7: The recruitment market
The 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 35 cities > 1 mm Online population Other Source: Nasscom, Department of Higher
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 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 14: Competitive activity resulted in market expansion
Competitive activity resulted in market expansion • Online – Monsterindia and Jobsahead – 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 fi
Slide 15: Coping with slowdown
Coping with slowdown • Improve sales force efficiency • Utilize telesales more effectively • Product innovation • Better marketing / focused ad spend • Gradually bringing head count down • Cost control 15
Slide 16: Quadrangle
Quadrangle 16 Offline head hunting business. Success based revenue model.
Slide 17: Naukrigulf
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Slide 18: Asknaukri
Asknaukri A career guidance site. To develop a repository of questions and answers. 18
Slide 19: Brijj
Brijj 19 A professional networking site with about 1.8 mm registrations.
Slide 20: Firstnaukri
Firstnaukri 20 A site for fresher hiring
Slide 21: Real estate
Real estate 99acres, Allcheckdeals
Slide 22: Surge in demand during 2004 to 2007 for real estate
Surge in demand during 2004 to 2007 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 A
Slide 23: 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 24: Banner Ads Panels
Banner Ads Panels Buyer Database 24
Slide 25: Property Listings Banner
Banner Property Ads Listings Banner Ads Featured Gallery Sponsored Properties Google Adsense 25
Slide 26: 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 26
Slide 27: Coping with slowdown
Coping with slowdown • Growth impacted due to market conditions • Continue to reach out to builders/ developers/ brokers – They are working harder to get customers – Internet a cost effective media • Product innovation – Improved display of results – SEO • Site revamp • Investment to continue throug
Slide 28: Allcheckdeals
Allcheckdeals Broking services. Success based revenue model. Over 250 transactions closed in Q4 FY 09 28
Slide 29: Matrimonial classifieds & services Jeevansathi
Matrimonial classifieds & services Jeevansathi
Slide 30: 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 – A steady growth market • Urbanization and increased economic activity – increased mobility of work force – nuclear families – breakdown of traditional networks • Arranged marriages
Slide 31: Jeevansathi.com
Info Edge India India’s Online Classifieds Company Jeevansathi.com Indian Matrimonials - We Match Better @LiveHelp Membership Options | Success Stories | Register Now EB for-IEUTwelae 1-300-419-6299 (Toll-Free) | Bride i] | Hindu i] | Select a Caste iv] [™] Photo profiles only [21 Yrs |¥|to[ 35 Yrs
Slide 32: 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 32
Slide 33: 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 34: 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 34
Slide 35: Education Shiksha
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Slide 36: Shiksha
Info Edge India India’s Online Classifieds Company shiksha.com Home Groups sk & Answer | Important Dates Study Abroad ¥ Shiksha Confused about which course & institutes to join? Ask Shiksha experts and members Test Preparation ¥ Career Options ¥ Add your course and institutes to shiksha.com Add Now
Slide 37: Educational classifieds
Educational classifieds • www.shiksha.com launched May, 2008 • Over 85,000 listings aggregated • Product feedback encouraging • Market receptive – Offices in 15 cities • Large market dominated by print – One of the weekly supplements in English dailies – Three categories of advertisers • Indian educ
Slide 38: Coping with the slowdown
Coping with the slowdown • A startup business – Investment to continue in • Sales force • Product – Key deliverables • Traffic share • Customer acquisition • Consumer experience 38
Slide 39: Investee Companies
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Slide 40: Applect
Applect • Launched www.meritnation.com – Commenced paid services for online educational assessment – Also providing free solutions for mathematics and science for standard 6 to 10 of a popular curriculum (NCERT) • Large addressable market • Experienced team • Propose to invest INR 65 mm, in tranches
Slide 41: Meritnation
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Slide 42: Etechaces
Etechaces • Comparison shopping of financial products • Currently selling insurance online through www.policybazaar.com • Experienced team • Large market with annuity income • Propose to invest INR 200 mm, in tranches, for a 49% stake – Invested INR 50 mm as on March 31, 2009 42
Slide 43: Policybazaar
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Slide 44: 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 44
Slide 45: Studyplaces website
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Slide 46: Governance
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Slide 47: Board of Directors
Board of Directors Independent Non Executive Whole time Saurabh SaurabhSrivastava Srivastava(63) (63) Arun ArunDuggal Duggal(62) (62) Kapil KapilKapoor Kapoor(44) (44) Sanjeev SanjeevBikhchandani Bikhchandani(45) (45) Independent IndependentDirector Director Independent IndependentDirector Director
Slide 48: Corporate Governance
Corporate Governance • Separation of Chairman and CEO role • Five independent Director’s 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 Directo
Slide 49: Financials
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Slide 50: Financial performance
Financial performance Revenues Figures in INR mm 3000 2500 2000 2738.0 1500 2396.6 1000 1471.6 840.6 723.2 701.8 671.4 641.6 500 194.7 451.2 0 04 05 06 07 08 09 09 09 09 09 20 20 20 20 20 20 FY FY FY FY FY FY FY FY FY FY 1 2 3 4 Q Q Q Q Q4 FY 09 over Q4 FY 08 : 7.3% decline in revenue and 11.2% decl
Slide 51: Financial performance – Other verticals
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 91.45 100 74.80 78.29 44.54 50 3.80 0 FY2005 FY2006 FY2007 FY2008 Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 FY2009 Q4 FY 09 vs Q4 FY 08 growth of 16% FY 09 vs
Slide 52: Financial performance
Financial performance Figures in INR mm EBITDA Net Profit 1000 700 30.0% 900 37.33% 38.21% 600 24.53% 25.0% 800 30.0% 35.13% 31.00% 23.2% 21.80% 31.0% 500 21.6% 700 34.28% 20.8% 20.0% 19.3% 21.56% 18.3% 600 29.7% 31.00% 400 16.7% 23.9% 938.7 500 15.0% 842.0 554.9 596.9 300 12.5% 400 10.0% 300 200 27
Slide 53: Balance sheet
Balance sheet (as on 31.03.09) Liabilities Assets 2.1% Net block + CWIP 5.0% 6.7% 6.8% Share capital 0.4% 7.5% 12.3% 0.7% 0.5% Capital advances 4.8% ESOP o/s amount Deferred tax asset 0.1% Reserves and surplus Investments Secured loans Cash and bank balance Deferred sales revenue other current asset
Slide 54: Shareholding pattern
Shareholding pattern (as on 31.03.09) Overseas ESOP Trust, Individuals and Corporate 2.25% others, 11.90% Bodies, 4.21% Bodies Corporate, 0.19% Mutual funds and banks, Wholetime 1.78% Directors, 54.15% Foreign Institutional Investors, 25.52% Fidelity Funds 9.83% Equinox 4.39% KPCB and Sherpalo 4.09%
Slide 55: Update Q4 FY 09 & FY 09
Info Edge India India’s Online Classifieds Company Update Q4 FY 09 & FY 09 Cnaukri.conr onl. feevansatticom (CD owner shikshacm <nauKrlegm SS) Driijcom Firstnaukricai
Slide 56: Recruitment solutions
Recruitment solutions Rs in million Q4 FY09 Q4 FY08 Change YoY FY09 FY08 Change YoY Net Sales from Recruitment 499 583 -14% 2117 1964 8% % to Company Net Sales 86.4% 89.6% -3.2% 86.3% 89.7% -3.4% EBITDA 239 276 -13% 922 816 13% EBITDA margin Recruitment 47.8% 47.5% 0.3% 43.6% 41.6% 2.0% • EBITDA mar
Slide 57: Naukri
Naukri Q4 FY09 Q4 FY08 Change YoY FY09 FY08 Change YoY No. of resumes in mm 17 13 31% 17 13 31% No. of resumes added daily in '000 10 14 -29% 14 12 17% No. of resumes modified daily in '000 45 44 2% 42 36 17% No. of corporate customers in '000 17.9 18.5 -3% 34 32.5 5% • Hiring by companies has been
Slide 58: The slowdown is an opportunity
The slowdown is an opportunity • Embrace the slowdown to emerge from it in a stronger competitive position – Continue to invest in technology – Product innovations – Operating metrics up - traffic share, applications, resume’s • Greater efficiencies from the sales system • Strong balance sheet lends
Slide 59: Naukri traffic share (%)
Naukri traffic share (%) 70 60 50 % traffic share 40 30 20 10 0 07 De 8 08 08 Fe 9 08 Ap 8 Au 8 M 9 9 07 M 8 Se 8 O 8 Ja 8 Ju 8 No 8 -0 l-0 0 0 -0 r- 0 0 0 0 -0 0 -0 v- v- n- n- n- b- b- c- g- p- c- ar ar ay ct Ju No Ja Fe De M Naukri Monsterindia Timesjobs Source : Comscore 59 The traffic share for
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 • Expecting slowdown 62
Slide 63: Other verticals (mainly 99acres & Jeevansathi)
Other verticals (mainly 99acres & Jeevansathi) Rs in million Q4 FY09 Q4 FY08 Change YoY FY09 FY08 Change YoY Net Sales from Other Verticals 78 67 16% 334 225 48% % to Company Net Sales 13.5% 10.3% 3.2% 13.6% 10.3% 3.3% EBITDA -58 -76 -24% -270 -182 48% • Net Sales in FY 09 comprised – Jeevansathi IN
Slide 64: 99acres
99acres • Increase in listings – Property listings at over 287,000 in Q4 FY09 vs 212,000 in Q4 FY 08 – Increase in paid listings to 256,000 in Q4 FY 09 vs 54,500 in Q4 FY08 • Site revamp – UI/ search algorithm • Revenue growth impacted – real estate sector one of the possibly worst effected due to c
Slide 65: Jeevansathi
Jeevansathi • Investment in growth continues – Brand building to continue – 14 domestic offline centres (Jeevansathi Match Point) operational • About 2.9 mm profiles as on 31.03.09 vs 2.2 mm profiles as on 31.03.08 – Continue focus on Northern and Western Indian market • Explore non resident Indian
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 3082007 +91 120 3082006 Fax +91 120 3082095 Address Info Edge (India) Limited, A 88 Sector 2, Noida - 201301, U.P.
Slide 67: 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 — )