Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (January 2009)
67 slides from Info Edge India's investor presentation, January 2009
Slide 1: Info Edge (India) Ltd. - India's Online Classifieds Company
Jeevansathi.com ( _\ ouadrangle Indian Matrimonials - We Match Batter => Info Edge (India) Ltd. India’s Online Classifieds Company
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: The company
The company • India’s leading internet classifieds company • Rapid growth historically (growth currently impacted by slowdown) – Revenue grew from INR 38 mm in FY02 to INR 2,397 mm in FY08 – Profitable since FY03 – Cash and equivalents ~ INR 3,336 mm (as on Dec 31, 2008) – Negligible debt • VC fundi
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 84% of company’s net sales in Leader in emerging online 2004 To be the hub for Q3 FY09 market No. 3 matrimony educational classif
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 High attrition rates Online in the IT services sector range Other between 25-40
Slide 8: Job search is popular
Job search is popular 95% 94% 100% 73% 80% 62% 61% 60% 59% 53% 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 2008, 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 – 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: Quadrangle
Quadrangle 15 Offline head hunting firm. Success based revenue model.
Slide 16: 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 16
Slide 17: Naukrigulf
Info Edge India India’s Online Classifieds Company Naukrigulf Cnaukri.com } [over 30 yours at Gulf Your People Partner Te pe 5 cL! WaslisgI! gag Search Jobs Register Your CV Jobseekers Login Career Tools Location if Select Functional Area <3) Sort by viol Browse Jobs By Category Browse Jobs by Locat
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 1.6 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 – Pilot on buyer validations ongoing • Site r
Slide 28: Allcheckdeals
Allcheckdeals Broking services. Success based revenue model. Over 110 transactions closed in Q3 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 website
Info Edge India India’s Online Classifieds Company Membership Options | Success Stories | Contact Us . Jeevansathi.com Call us on 1-800-419-6299 (Toll-Free) Indian Matrimonials - We Match Better @ Live Help Looking For: Community: | Select 2 Community ¥| City: Age: to Religion, Caste: [Select 2 Reli
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 (10 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
Info Edge India India’s Online Classifieds Company Education Shiksha India's No 4 Job Ste © .com ml Jeevansathi.com ( te
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 opened in 15 cities • Large market dominated by print – One of the weekly supplements in English dailies – Three categories of advertisers • Indi
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
Info Edge India India’s Online Classifieds Company Investee Companies India's No 4 Job Ste © .com ml Jeevansathi.com ( te
Slide 40: Applect
Applect • Launched www.meritnation.com – Currently providing free solutions for mathematics and science for standard 6 to 10 of a popular curriculum (NCERT) – To commence paid online educational assessment • Large addressable market • Experienced team • Propose to invest INR 65 mm, in tranches, for
Slide 41: Meritnation website
Info Edge India India’s Online Classifieds Company . \meritnation 2 ¥ On Study Center | Products | My Pro Personality Tests Home Login Register Reasons to signup FREE until April 2009 Learn from experts Gain new insights Train through mock Tests Study anytime, anywhere Sign up now! Excel in your Sub
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 40 mm as on December 31, 2008 42
Slide 43: Policybazaar website
Info Edge India India’s Online Classifieds Company << - o Call 0124 - 457 6777 pOlicy bazaar@) or SMS ‘POL’ to 56767 Insurance compare kiya? A Cnaukri.con?” Group Venture Home Car Insurance alth Insurance Travel Insurance ife Insurance Loans pelieyoase Choose with Confidence Compare quotes from all
Slide 44: Studyplaces
Studyplaces • Online education information site • Large addressable market – Education a path for upward mobility • Experienced promoter • Invested INR 47 mn for a minority stake 44
Slide 45: Studyplaces website
Info Edge India India’s Online Classifieds Company Study | New User? Cducation matters Explore | Prepare |v Featured Institutes Australia MBA Canada (J Medicine Menncwun 20 India Law Earn while you learn Singapore Engineering UK Professional Certifications Vocational Courses Take free online practic
Slide 46: Governance
Info Edge India India’s Online Classifieds Company Governance Ly x .cony soll. Jeevansathi.com CD cena Cc India's Not Job Ste indea's Property Baraar Indian Matrimonials « We Match Better
Slide 47: Board of Directors
Board of Directors Independent Non Executive Whole time Saurabh SaurabhSrivastava Srivastava(62) (62) 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 • 5 independent Director’s out of a total of 10 • Disclosure of balance sheet and cash flow statements every quarter even though not mandatory • Verification of cash & bank balances and investments as of December 31, 2008 done by a 3rd party audit firm – TR Chadha & Co. 48
Slide 49: 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 50: Financial performance
Financial performance Revenues Figures in INR mm 2500 2000 1500 2396.6 1000 1471.6 840.6 723.2 701.8 671.4 500 451.2 194.7 0 04 05 06 07 08 09 09 09 20 20 20 20 20 FY FY FY FY FY FY FY FY 1 2 3 Q Q Q Q3 FY 09 over Q3 FY 08 : 16.7% growth in revenue and 7.5% growth in net sales 50
Slide 51: Financial performance – Other verticals
Financial performance – Other verticals (mainly Jeevansathi and 99acres) Revenues Figures in INR mm 250 200 150 225.1 100 118.7 90.7 91.5 50 74.8 44.5 3.8 0 FY2005 FY2006 FY2007 FY2008 Q1 FY09 Q2 FY09 Q3 FY09 Q3 FY 09 vs Q3 FY 08 growth of 49% FY 05 to FY 08 CAGR of 296% 51
Slide 52: Financial performance
Financial performance Figures in INR mm EBITDA Net Profit 900 35.13% 600 30.0% 800 29.7% 30.0% 31.00% 31.00% 37.33% 24.53% 700 500 25.0% 23.2% 21.6% 20.8% 600 18.3% 19.3% 31.0% 400 20.0% 842.0 16.7% 500 23.9% 554.9 300 15.0% 400 300 200 12.5% 10.0% 441.3 270.7 200 172.1 262.0 156.7 224.0 241.9 207.5
Slide 53: Balance sheet
Balance sheet (as on 31.12.08) Liabilities Assets 2.1% Net block + CWIP 6.8% 5.6% 0.4% 7.8% 8.9% Share capital 12.0% 0.7% 0.5% Capital advances ESOP o/s amount Deferred tax asset 0.1% Reserves and surplus 20.5% Investments Secured loans Cash and bank balance other current assets Deferred sales reven
Slide 54: Shareholding pattern
Shareholding pattern (as on 31.12.08) Individuals & others, 12.04% ESOP Trust, 2.26% Overseas Corp Bodies, 4.21% Bodies Corporate, Founder/ Whole time 0.55% Directors, 54.15% Foreign Inst investors, 25.75% Mutual Funds, 1.04% Fidelity Funds 8.17% Equinox 4.39% KPCB and Sherpalo 4.09% T Rowe Price 3.
Slide 55: Update Q3 FY 09
Info Edge India India’s Online Classifieds Company Update Q3 FY 09 5G .conr soll. Cc India's Not Job Ste India's Property Baraar Indian Matrimonials « We Match Better
Slide 56: Recruitment solutions
Recruitment solutions • Recruitment solutions accounted for 84% of net sales in Q3 FY 09 vs 89% in Q3 FY 08 • Growth momentum impacted – Revenue up 2.3% to INR 497.77 mm in Q3 FY 09 from INR 486.70 mm in Q3 FY 08 – Uncertainty in Q3 continued – Clients reaction to slowdown varies • Buying deferred •
Slide 57: Naukri
Naukri • Naukri.com continues to be the No. 1 jobsite in India – 15.87 mm resumes as on 31.12.08 vs about 11.55 mm as on 31.12.07 – Over 17,200 corporate customers in Q3 FY09 (32,500 in FY08) vs 16,300 in Q2 FY08 (27,500 in FY07) – 29,100 corporate customers in 9 mth FY 09 vs 26,000 in 9 mth FY 08 •
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 Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 07 07 08 08 08 08 08 08 08 08 08 08 08 08 Naukri Monsterindia Timesjobs Source : Comscore 59
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 • Encouraging traction • Offices likely to be opened in other Gulf countries • Continue to entrench 62
Slide 63: Other verticals (99acres & Jeevansathi)
Other verticals (99acres & Jeevansathi) • Revenue accounted for – 16% of net sales in Q3 FY 09 vs 11% in Q3 FY 08 • Growth momentum continues – Revenue up 49.4% to INR 91.45 mm in Q3 FY 09 from INR 61.22 mm in Q3 FY 08 • Investment continues – Loss at EBITDA level in Q3 FY 09 at INR 49.44 mm up from
Slide 64: 99acres
99acres • Increase in listings – Property listings at over 241,000 in Q3 FY09 vs 100,000 in Q3 FY 08 – Increase in paid listings to 209,000 in Q3 FY 09 vs 29,700 in Q3 FY08 • Site revamp – UI/ search algorithm • Revenue growth continues – slackness in real estate sector has resulted in lower growth
Slide 65: Jeevansathi
Jeevansathi • Investment in growth continues – Brand building to continue – More domestic offline centres (Jeevansathi Matchpoint) launched • Currently 1 in Lucknow, 5 in Delhi and 4 in Mumbai operational • Maintained traffic share in Q3 FY09 – Over 2.68 mm profiles as on 31.12.08 vs 2.18 mm profile
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: January, 2009
.com ( Quadrangle We Match Better => Indian Matrimonials January, 2009
Info Edge (India) — Investor Presentation (January 2009) on 6ix