Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (February 2011)
52 slides from Info Edge India's investor presentation, February 2011
Slide 1: Info Edge (India) Ltd: India's Online Classified Company
Info Edge (India) Ltd: India’s Online Classified Gompany Helping People & Businesses Meet Investee Companies : Ko} = zomato Feb, 2011
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 – Growth coming back Rapid growth historically – Revenue CAGR of 33% over FY06-10 – INR 2.64 billion revenue in FY2010 ~ INR 3
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 So we get the most Build the brand 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 Garner higher market share as growth comes back Specific product innovations to combat the threat of Linked In and semantic search (Trovix) Naukri from Monster Reap gains from sales team efficiencies – Restructuring, ERP
Slide 10: Leveragable sales/customer interface infrastructure
Leveragable sales/customer interface infrastructure Info Edge Sales Offices illustrative Map Key Observations Chandigarh ~ 1380 Sales staff or 76% of the company’s workforce Nation wide coverage through 48 company Delhi NCR (Noida, Gurgaon) branch offices in 31 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% 70,000 16 6 0 8 75 Highlights 14 60,000 53 2 18 12 50,000 4 72 3 4 India less impacted by the meltdown. 4 12 9 2 10 Indian recovery faster than rest of the world. Billions INR 40,000 3 58 6 7 3 14 9 4 8 India’s GDP CAGR(%) of 6.2% from 1
Slide 14: Demographics
Demographics Highlights India is among the world's youngest nations with a median age of 25 years. 65% of Indian population estimated to be below 35 years of age 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
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 towns. Given the continuous growth of internet users over the years, the smaller towns have overtaken Top 8 Metros in Internet Usage (indicates that internet has reached to rural masse
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 being launched. Mobile phone penetration already exceeds 600M – with 3G expected to explod
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 Growth of 32% in revenue in Q3 YoY and increase in deferred sales revenue Large mark
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 and is a clear #1 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 Comscore from Alexa.com 70 60 50 40 30 20 10 0 May-08 May-09 May-10 Nov-07 Mar-08 Nov-08 Mar-09 Nov-09 Mar-10 Nov-10 Jan-08 Jul-08 Sep-0
Slide 23: Hiring is back
Hiring is back Naukri Job Speak Index ( New Jobs) Naukri hiring survey 72.80% 80.00% 72.30% 70.00% 60.00% 55.50% 50.00% 44.50% 37.80% 37.50% 38% 40.00% 30.00% 24.20% 14.30% 20.00% 13.40% 9.50% 4.60% 2% 10.00% 2.30%3% 1.20% 0.00% Layoffs will happen No hiring Replacement hiring New jobs will be will
Slide 24: Naukri.com has performed on key-metrics
Naukri.com has performed on key-metrics Number of candidate resumes has grown Average daily resumes added and modified consistently 30 80 25 70 60 20 50 40 15 30 10 20 10 5 0 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 0 Q1
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 fresher graduates from campus Launched commercially in last
Slide 26: 99acres
99acres Banner Ad Banner Ad Panels 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 Increase in traction in all real estate clusters Potential Pote
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 sites Traffic share of various Real estate sites based on Comscore data from Alexa 60 50 40 % tarffic share 30 20 10 0 09 10 09 10 08 08 9 09 09 0 10 8 9 0 r-0 r-1 -0 -0 -1 n- n- b- b- g- c- g- c- g- ct c
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, increasing urbanisation Growing economy, increased commercial activity Growing middle class, consum
Slide 30: Allcheckdeals.com
Allcheckdeals.com Real estate brokerage business A subsidiary of Info Edge India Limited Commission based revenue model Determined on transaction value Focus on primary residential market Large parts of Indian cities/ suburbs getting built Growing middle class and higher disposable income Need for t
Slide 31: Jeevansathi
Jeevansathi Search JS Home JS Membership Page Options page Source: http://www.jeevansathi.com/ 31
Slide 32: 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 33: Shiksha
Shiksha Space for education providers Banner Ad College Database Source: http://www.shiksha.com/ 33
Slide 34: 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 classifi
Slide 35: 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 12 cities Challenges : Large market dominated by Print Weekly
Slide 36: Company Financials
Company Financials 36
Slide 37: Consistent long-term growth in Revenue / Profitability
Consistent long-term growth in Revenue / Profitability Revenue trend Profitability INR Million INR Million 3000 1200 225 207 334286 369 320 198 2500 1000 364 2000 800 75 1500 600 118 986 939 891 842 2117 1964 1954 693 666 1758 1000 400 635 652 45 597 553 569 571 441 1277 428 378 386 238 221 133 120
Slide 38: Growth momentum interrupted by slowdown; clear signs of recovery
Growth momentum interrupted by slowdown; Clear signs of recovery in last 3 quarters Quarterly Operating Revenue Quarterly Operating Trend Last 3 Years Profitability INR Million INR Million 300 800 700 250 600 200 500 400 150 300 100 200 100 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q
Slide 39: 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 Assets Fixed Cost Model and Profitability has led to a strong cash accretion Cash & Liquid 3% Investments 7% Other 10% Investments 7% Net Fixed Assets Cash & liquid investments Other Current Rs 4 billion 73% Assets Other As
Slide 40: Recruitment: Profitability has started improving
Recruitment: Profitability has started improving 700 60% Q u a rt e rly re c ru it m e n t re v n u e s ( IN R M ) 600 50% Highlights 500 E B IT D A m a rg in ( % ) 40% 400 Consistent growth in recruitment revenue 30% for last 6 quarters. 300 Revenues & margins impacted by 20% economic slowdown in F
Slide 41: Improving financial performance of Non Recruitment Businesses
Improving financial performance of Non Recruitment Businesses EBITDA losses reduced in FY10 INR M 150 100 50 0 -50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -100 FY08 FY08 FY08 FY08 FY09 FY09 FY09 FY09 FY10 FY10 FY10 FY10 FY11 FY11 FY11 Revenue (INR M) EBITDA (INR M) 41
Slide 42: Investee Companies
Investee Companies 42
Slide 43: Policybazaar.com
Policybazaar.com Etechaces An insurance comparison site Experienced Team www. policybazaar.com – Other financial products being added (home, Large market with annuity income personal, car, education) Comparison shopping of financial products Committed INR 200 mm for a 49% stake – Invested INR 180 mm
Slide 44: 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 45: Zomato.com
Zomato.com Zomato Website operational Experienced team – Commenced coverage in Delhi and adding cities like Mumbai, Bangalore, Pune etc Large addressable market – Revenues from advertising and lead sales Committed Rs 47 mn Rs 16 million disbursed 45
Slide 46: Team and Governance
Team and Governance 46
Slide 47: Over 50% share-holding with the Founding management group and ~27% with FIIs
> 50% share-holding with the Founding management group and ~27% with FIIs ESoP Trust, Individuals and 1.42% others, 9.86% Bodies Corporate, 0.38% Mutual Funds and Banks, Wholetime 7.10% Directors & their Foreign entities, 54.05% Institutional Investors, 27.19% Fidelity Funds 5.42% Reliance Mutual Fu
Slide 48: Board of Directors
Board of Directors Whole time Non Executive Independent Sanjeev Bikhchandani (47) Kapil Kapoor (46) Saurabh Srivastava (64) Arun Duggal (64) 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 49: Management Team
Management Team Sanjeev Bikhchandani, 47, Founder and Executive Vice Chairman, BA Economics St. Stephens, PGDM IIM-A. Previously with Glaxo Smith Kline. Year of joining 1995 Hitesh Oberoi, 38, Managing Director & CEO, B Tech, IIT Delhi PGDM, IIM-B. Previously with HLL (Unilever). Year of joining 200
Slide 50: Management Team contd.
Management Team contd. Rajesh Khetarpal, 38, SVP - Finance, CA. Previously with Bharti. Year of joining 2007 Rohit Manghnani, 35, SVP and Business Head - Jeevansathi, B Com, MBA, FMS, Delhi University. Previously with Home Shop 18. Year of joining 2010 Manoj. P, 37, SVP - Sales Naukri, MBA - Xavier
Slide 51: 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 52: Investor Relations Contacts
Investor Relations Contacts Name Ambarish Raghuvanshi Sudhir Bhargava Group President - Finance and EVP - Corporate Finance Designation CFO 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 Sect
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