Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (February 2008)
40 slides from Info Edge India's investor presentation, February 2008
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: Eight brands
Eight brands Info Edge Recruitment & Careers Matrimonials Real Estate Launched in March 1997. 90% of Acquired in September 2004 Launched in Sept 2005 company’s net sales in Q3 FY08 No. 3 matrimony website in India Leader in emerging online No. 1 job portal in India – more 2.18 mm profiles ever regis
Slide 4: Company overview
Company overview • VC investment from – ICICI Venture in 2000 – Kleiner Perkins Caufield & Byers and Sherpalo in 2006 (Secondary) • 61 offices in 41 cities in India + 2 in Dubai • 1500 employees (~ 1100 in sales) • Financials (Quarter ended December 31, 2007) – Revenue (up 59% YoY) – USD* 15.2 mm –
Slide 5: Developments in Q3 FY08
Developments in Q3 FY08 • Investment made in Studyplaces Inc., USA • Development work on education site in progress – Launch within the next 6 months • Launch of www.allcheckdeals.com – A real estate broking site • Success based fee model 5 5
Slide 6: Recruitment classifieds and services
Recruitment classifieds and services
Slide 7: The recruitment market is busy
The recruitment market is busy 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 betwe
Slide 8: Job search is popular
Job search is popular 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 ~ 26,00
Slide 9: Two major revenue streams
Two major 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 9 9
Slide 10: Revenue Model
Banner Revenue Model Ad Panels Job Seeker Services Mobile Revenues 10 10
Slide 11: Revenue Model
Banner Revenue Model Ad Featured Job Listings Company Google Ad Sense 11 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: 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, Clickjobs, Ndtvjobs • Print – Times of India, Hindustan Times, Hindu, others • Recruitment consultants and search firms
Slide 15: Business and market – Q3 FY08
Business and market – Q3 FY08 • Recruitment accounted for 90% of net sales in Q3 FY08 vs 92% in Q2 FY07 • Growth continues - Revenue up 46% from USD 8.47 mm in Q3 FY 07 to USD 12.36 mm in Q3 FY08 • Naukri.com continues to be the No. 1 jobsite in India – Over 12 million resumes as on 31.12.07 vs abou
Slide 16: Matrimonial classifieds & services
Matrimonial classifieds & services
Slide 17: 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 18: Jeevansathi.com website
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 19: 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 19 19
Slide 20: 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 20 20
Slide 21: 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 focused, fragmented, unorganized, geographically constrained 21 21
Slide 22: Jeevansathi – Q3 FY08
Jeevansathi – Q3 FY08 • Breakeven at EBITDA level achieved – Lower ad spend in Q3 – Breakeven may not be sustained • Offline outlets to be launched domestically • Investment in brand to continue • Maintained traffic share in Q3 FY08 – Over 2.18 mm profiles as on 31.12.07 vs 1.96 mm as on 30.9.07 • C
Slide 23: Real estate classifieds
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Slide 24: 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 25: 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 - 69,000 listings (increasing proportion for paid listings) – Builders/Br
Slide 26: Banner Ads Panels
Banner Ads Panels Buyer Database 26 26
Slide 27: Property Listings Banner
Banner Property Ads Listings Banner Ads Featured Gallery Sponsored Properties Google Adsense 27 27
Slide 28: Competition
Competition • Online – Magicbricks, Indiaproperty, makaan, 2bhk • 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 28 28
Slide 29: 99acres – Q3 FY08
99acres – Q3 FY08 • Improvement in traction – Property listings at 69,000 as on 31.12.07 vs 60,000 as on 30.9.07 – Increase in paid listings • Revenue growth robust albeit on a small base – Over 4.5X in Q3 FY08 over Q3 FY07 • Market for online classifieds expected to grow – Large advertising spend o
Slide 30: Management
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Slide 31: Qualified and experienced management team
Qualified and experienced management team Board of Directors Kapil KapilKapoor Kapoor(43) (43) Saurabh SaurabhSrivastava Srivastava(61) (61) Arun ArunDuggal Duggal(61) (61) Chairman Chairman&&Non-Executive Non-Executive Non-Executive Non-ExecutiveDirector Director Non-Executive Non-ExecutiveDirector
Slide 32: 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 33: Financial performance
Financial performance Revenues 45.0 40.0 35.0 30.0 25.0 43.3 20.0 37.4 USD MM 15.0 21.4 10.0 14.9 15.2 11.5 13.2 5.0 4.9 0.0 4 5 6 7 08 08 08 08 200 200 200 200 Y FY FY FY FY FY FY FY !F 2 3 th Q Q Q m 9 Q3 FY08 over Q3 FY07 : 59% growth in revenue and 51% growth in net sales in Rupee terms 1 USD =
Slide 34: Financial performance
Financial performance Revenues : 9 months FY08 vs 9 months FY07 45.0 40.0 35.0 30.0 25.0 43.3 20.0 USD MM 15.0 25.3 10.0 5.0 0.0 9 mth FY07 9 mth FY08 70% growth in revenue and 60% in net sales 1 USD = Rs 39.80 34 34
Slide 35: Financial performance – Jeevansathi and 99acres
Financial performance – Jeevansathi and 99acres Revenues 4.50 4.00 3.50 USD MM 3.00 2.50 2.00 3.96 1.50 2.98 1.00 0.50 1.12 0.10 0.00 FY2005 FY2006 FY2007 9 mth FY2008 Q1 FY07 to Q3 FY08 CAGR of 173% 1 USD = Rs 39.37 35 35
Slide 36: Financial performance
Financial performance EBITDA Net Profit 12.0 8.0 30.0% 25.9% 10.0 30.0% 33.3% 37.70% 7.0 29.7% 25.0% 34.60% 6.0 18.3% 22.4% 16.7% 21.8% 8.0 31.0% 20.0% 5.0 USD MM USD MM 23.9% 20.8% 6.0 11.2 4.0 15.0% 4.0 3.0 12.5% 6.9 10.0% 6.1 5.3 5.6 2.0 3.8 3.6 4.4 3.0 3.3 2.0 3.4 5.0% 1.0 2.4 1.2 0.6 0.0 0.0 0.
Slide 37: Balance sheet
Balance sheet (as on 31.12.07) Liabilities Assets 4.4% 3.0% 7.2% Net block + CWIP 8.1% Share capital 0.5% 9.6% 10.3% 0.6% 0.3% Capital advances ESOP o/s amount 14.9% Deferred tax asset Reserves and surplus 0.0% Secured loans Investments 0.1% Deferred tax liability Cash and bank balance Deferred sale
Slide 38: Robust financials
Robust financials • Strong topline & bottomline growth • Consistent track record of profitability • High operating leverage • Strong cash flows • Interest rate and liquidity tightening may effect our operational performance adversely in some markets 38 38
Slide 39: Shareholding pattern
Shareholding pattern (as on 31.12.07) Individuals & ESOP Trust,others, 13.49% 2.33% 54.60% 2.37% Overseas Corp Bodies, 4.08% 22.02% 1.11% Bodies 4.08% Corporate, 2.33% 1.11% Promoters, 13.49% 54.60% 100.00% Foreign Inst investors, 4.18% 22.02% 2.36% 2.14% Mutual Funds, 1.87% 2.37% 1.75% Fidelity Fun
Slide 40: Helping People & Businesses Meet
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Info Edge (India) — Investor Presentation (February 2008) on 6ix