Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (May 2008)
53 slides from Info Edge India's investor presentation, May 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: The company
The company • India’s leading internet classifieds company • Fast growth – Revenue grew from USD 1 mm in FY02 to USD 59 mm in FY08 – Profitable since FY03 • VC funding in 2000 and public listing in 2006 • Valuable experience – Over 10 years in Indian internet • Bouquet of leading websites – Naukri,
Slide 4: Our businesses
Our businesses Info Edge Recruitment & Careers Matrimonials Real Estate Education Launched in March 1997. Acquired in September Launched in Sept 2005 Launched in May 2008 89.7% of company’s net sales in 2004 Leader in emerging online FY08 No. 3 matrimony market To be the hub for educational classifi
Slide 5: Our team
Our team Sanjeev SanjeevBikhchandani Bikhchandani(44) (44) 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(46) (46) Hitesh HiteshO
Slide 6: Recruitment classifieds and services
Recruitment classifieds and services Naukri, Quadrangle, Naukrigulf, Asknaukri, Brijj
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, Shine • Print – Times of India, Hindustan Times, Hindu, others • Recruitment consultants and search
Slide 15: Quadrangle
Quadrangle 15 Offline head hunting firm. Success based revenue model. 15
Slide 16: 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 17: Asknaukri
Asknaukri A career guidance site. To develop a repository of questions and answers. 17 17
Slide 18: Brijj
Brijj 18 A professional networking site with about 600,000 registrations. 18
Slide 19: Brijj
Brijj 19 A professional networking site with about 600,000 registrations. 19
Slide 20: Real estate classifieds
Real estate classifieds 99acres, Allcheckdeals
Slide 21: 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 22: 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 23: Banner Ads Panels
Banner Ads Panels Buyer Database 23 23
Slide 24: Property Listings Banner
Banner Property Ads Listings Banner Ads Featured Gallery Sponsored Properties Google Adsense 24 24
Slide 25: 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 25 25
Slide 26: Allcheckdeals
Allcheckdeals 26 Broking services. Success based revenue model. 26
Slide 27: Matrimonial classifieds & services Jeevansathi
Matrimonial classifieds & services Jeevansathi
Slide 28: 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 29: Jeevansathi
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 30: 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 30 30
Slide 31: 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 31 31
Slide 32: Competition
Competition • Online players – Shaadi, Bharatmatrimony, Simplymarry – Offline centres • Print classifieds – Times of India, Hindustan Times, others • Marriage Bureaus and pundits – Community focused, fragmented, unorganized, geographically constrained 32 32
Slide 33: Education Shiksha
Info Edge India India’s Online Classifieds Company Education Shiksha India's No 4 Job Ste © .com ml Jeevansathi.com ( te
Slide 34: Shiksha
Info Edge India India’s Online Classifieds Company Shiksha Education Provider: Login hikes ain A Cnaukrlcomt group company Hi Guest Join Now | Sign-in To add college and ogin here Courses Explore Colleges by Career Options Countries Animation, Multimedia Banking & Finance, Accounting Information Tec
Slide 35: Educational classifieds
Educational classifieds • Large market dominated by print – One of the weekly supplements in English dailies – Three categories of advertisers • Indian education players (universities and institutes) • test prep and coaching institutes, and • overseas universities/ colleges targeting Indian students
Slide 36: Board of Directors & Auditors
Board of Directors & Auditors
Slide 37: Board of Directors
Board of Directors Board of Directors Kapil KapilKapoor Kapoor(43) (43) Saurabh SaurabhSrivastava Srivastava(62) (62) Arun ArunDuggal Duggal(61) (61) Chairman Chairman&&Non-Executive Non-Executive Non-Executive Non-ExecutiveDirector Director Non-Executive Non-ExecutiveDirector Director Director B.Te
Slide 38: 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 39: Financial performance
Financial performance Revenues 60.0 50.0 40.0 59.2 30.0 36.4 20.0 20.8 10.0 11.2 4.8 0.0 FY2004 FY2005 FY2006 FY2007 FY2008 FY 08 over FY 07 : 62% growth in revenue and 57% growth in net sales 1 USD = Rs 40.45 39 39
Slide 40: Financial performance – Other verticals
Financial performance – Other verticals (mainly Jeevansathi and 99acres) Revenues 6.00 5.00 USD MM 4.00 3.00 5.57 2.00 2.93 1.00 0.09 1.10 0.00 FY2005 FY2006 FY2007 FY2008 FY 05 to FY 08 CAGR of 296% FY 07 to FY 08 growth of 90% 40 1 USD = Rs 40.45 40
Slide 41: Financial performance
Financial performance EBITDA Net Profit 25.0 16.0 25.0% 35.13% 23.2% 29.7% 30.0% 14.0 16.7% 18.3% 20.0 20.0% 12.0 20.8% 31.0% 15.0 10.0 15.0% US D M M 23.9% US D M M 8.0 12.5% 13.7 20.8 10.0 10.0% 6.0 4.0 5.0 10.9 6.7 5.0% 6.0 2.0 1.2 3.3 3.5 2.3 0.0 0.0 0.6 0.0% FY2004 FY2005 FY2006 FY2007 FY08 FY2
Slide 42: Balance sheet
Balance sheet (as on 31.03.08) Liabilities Assets Net block + CWIP 7.4% 4.3% Share capital 0.4% 8.6% 10.6% 1.7% Capital advances 0.5% 13.1% 0.3% ESOP o/s amount Deferred tax asset 16.9% Reserves and surplus Investments Secured loans 0.0% Deferred tax liability Cash and bank balance 0.1% Deferred sal
Slide 43: Shareholding pattern
Shareholding pattern (as on 31.03.08) Individuals & ESOP Trust, others, 13.01% 2.32% Overseas Corp Bodies, 4.08% Bodies Corporate, Founder/ 0.61% Whole time Directors, Foreign Inst 54.60% investors, 22.85% Mutual Funds, 2.53% Fidelity Funds 8.41% Passport Capital 4.71% KPCB and Sherpalo 4.08% T Rowe
Slide 44: Update Q4 FY 08 & FY 08
Info Edge India India’s Online Classifieds Company Update Q4 FY 08 & FY 08 5G .conr soll. Cc India's Not Job Ste India's Property Baraar Indian Matrimonials « We Match Better
Slide 45: Recruitment solutions
Recruitment solutions • Recruitment solutions accounted for – 90% of net sales in FY 08 vs 92% in FY 07 • Growth momentum intact – Revenue up 54% to USD 48.6 mm in FY 08 from USD 31.5 mm in FY 07 45 45
Slide 46: Naukri
Naukri • Naukri.com continues to be the No. 1 jobsite in India – Over 13 mm resumes as on 31.3.08 vs about 9 mm as on 31.3.07 – Over 18,500 corporate customers in Q4 FY08 (32,500 in FY08) vs 15,000 in Q4 FY07 (27,500 in FY07) • Competitive pressure continues – Price competition at bottom end of the
Slide 47: Naukrigulf
Naukrigulf • Office opened in Bahrain – 2 offices in Dubai • Encouraging traction • Offices likely to be opened in other Gulf countries • Continue to entrench 47 47
Slide 48: Other verticals (99acres & Jeevansathi)
Other verticals (99acres & Jeevansathi) • Revenue accounted for – 10% of net sales in FY 08 vs 8% in FY 07 • Growth continues – Revenue up 90% to USD 5.5 mm in FY 08 from USD 2.9 mm in FY 07 • Investment continues – Loss at EBITDA level in FY 08 at USD 4.4 mm up from USD 2.5 mm in FY 07 48 48
Slide 49: 99acres
99acres • Extensive trial programme undertaken – Property listings at over 200,000 as on 31.3.08 vs 65,000 as on 31.3.07 – Increase in paid listings to 55,000 in Q4 FY 08 vs 15,000 in Q4 FY07 • Site revamp – UI/ search algorithm • Revenue growth robust albeit on a small base • Market for online clas
Slide 50: Jeevansathi
Jeevansathi • Investment in growth continues – Higher ad spend in Q4 – Domestic offline outlets to be launched • First opened at Lucknow in April – Brand building to continue • Maintained traffic share in Q4 FY08 – Over 2.38 mm profiles as on 31.3.08 vs 1.48 mm profiles as on 31.3.07 • Continue focu
Slide 51: Other developments in Q4 FY08
Other developments in Q4 FY08 • Development work on education site www.shiksha.com in progress – Launch in Q1 FY09 • Land acquired in Noida – Cost of about USD 5 mm – Building to be built at a cost estimate of about USD 10 mm • Capital raising to be requirement based 51 51
Slide 52: 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 or 3972007 +91 120 3082006 or 3972006 Address Info Edge (India) Limited, A 88 Sector 2, Noida - 201301, U.
Slide 53: May, 2008
“15 99acres.com” sedis Proseny Ssseer Indian Matrimonials .com ( Quadrangle We Match Better => F Info Edge India Helping People & Businesses Meet y se CGE Kies May, 2008