Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (September 2008)
58 slides from Info Edge India's investor presentation, September 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 • Rapid growth (but slowing in current environment) – Revenue grew from USD 1 mm in FY02 to USD 59 mm in FY08 – Profitable since FY03 – Cash and equivalents ~ USD 75 mm (as on June 30, 2008) • VC funding in 2000 and public listing in India i
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 88% of company’s net sales in Leader in emerging online 2004 To be the hub for Q1 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(46) (46) Hitesh HiteshO
Slide 6: Recruitment classifieds and services
Recruitment classifieds and services Naukri, Quadrangle, Naukrigulf, Asknaukri, Brijj
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 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: Competitive activity has resulted in market expansion
Competitive activity 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 searc
Slide 15: Quadrangle
Quadrangle 15 Offline head hunting firm. Success based revenue model. 15
Slide 16: Naukrigulf
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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 1 mm registrations. 18
Slide 19: Brijj
Brijj 19 A professional networking site with about 1 mm registrations. 19
Slide 20: Real estate
Real estate 99acres, Allcheckdeals
Slide 21: 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 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: Positive impact of slowdown
Positive impact of slowdown • Slowdown has led to builders/ developers/ brokers working harder to get customers • Marketing expenditure has become more accountable • Sharper focus on cost per lead acquired • Internet gaining acceptance 26 26
Slide 27: Allcheckdeals
Allcheckdeals Broking services. Success based revenue model. Over 300 transactions closed in last 12 months 27 27
Slide 28: Matrimonial classifieds & services Jeevansathi
Matrimonial classifieds & services Jeevansathi
Slide 29: 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 30: Jeevansathi.com
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 31: 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 • Walk in sales for matching services 31 31
Slide 32: 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 33: 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 33 33
Slide 34: Education Shiksha
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Slide 35: 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 36: Educational classifieds
Educational classifieds • www.shiksha.com launched May 19, 2008 • Over 100,000 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 •
Slide 37: Board of Directors & Auditors
Board of Directors & Auditors
Slide 38: 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 39: Financials
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Slide 40: Financial performance
Financial performance Revenues 60.0 50.0 40.0 USD MM 30.0 55.8 20.0 34.3 19.6 10.0 10.5 15.6 4.5 0.0 FY2004 FY2005 FY2006 FY2007 FY2008 Q1 FY09 Q1 FY 09 over Q1 FY 08 : 29% growth in revenue and 36% growth in net sales 1 USD = Rs 42.92 40 40
Slide 41: Financial performance – Other verticals
Financial performance – Other verticals (mainly Jeevansathi and 99acres) Revenues 6.00 5.00 4.00 3.00 5.25 2.00 2.76 1. 0 0 1. 7 4 0.09 1. 0 4 0.00 FY2 0 0 5 FY2 0 0 6 FY2 0 0 7 FY2 0 0 8 Q1 FY0 9 Q 1 FY 09 vs Q1 FY 08 growth of 72% FY 05 to FY 08 CAGR of 296% 41 1 USD = Rs 42.92 41
Slide 42: Financial performance
Financial performance EBITDA Net Profit 25.0 14.0 25.0% 35.13% 23.2% 29.7% 30.0% 12.0 16.7% 18.3% 19.3% 20.0 20.0% 10.0 20.8% 31.0% 15.0 15.0% 31.00% 8.0 USD M M 23.9% US D M M 12.9 12.5% 6.0 10.0 19.6 10.0% 4.0 6.3 5.0 5.0% 10.3 2.0 3.1 3.0 1.1 5.6 4.8 2.2 3.3 0.0 0.6 0.0% 0.0 FY2004 FY2005 FY2006
Slide 43: Balance sheet
Balance sheet (as on 30.06.08) Liabilities Assets Share capital 4.8% Net block + CWIP 0.4% 8.4% 7.1% 1.9% 10.3% 0.6% ESOP o/s amount Capital advances 13.1% 0.4% Reserves and surplus Deferred tax asset 15.8% Secured loans Investments 0.0% 0.1% Deferred tax liability Cash and bank balance Deferred sal
Slide 44: Shareholding pattern
Shareholding pattern (as on 30.06.08) Individuals & others, 12.49% ESOP Trust, 2.29% 54.15% 2.70% Overseas Corp Bodies, 23.69% 4.08% 0.60% 4.08% Bodies Corporate, 0.60% 2.29% Founder/ Whole time 12.49% Directors, 54.15% 100.00% Foreign Inst investors, 23.69% 4.18% 2.36% 2.14% Mutual Funds, 2.70% 1.8
Slide 45: Update Q1 FY 09
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Slide 46: Recruitment solutions
Recruitment solutions • Recruitment solutions accounted for – 88% of net sales in Q1 FY 09 vs 91% in Q1 FY 08 • Growth momentum impacted – Revenue up 32% to USD 12.9 mm in Q1 FY 09 from USD 9.8 mm in Q1 FY 08 – Heightened uncertainty in Q1 due to crude oil prices, increasing interest rates and polit
Slide 47: Naukri
Naukri • Naukri.com continues to be the No. 1 jobsite in India – Over 14 mm resumes as on 30.6.08 vs about 9.6 mm as on 30.6.07 – Over 18,500 corporate customers in Q1 FY09 (32,500 in FY08) vs 14,700 in Q1 FY08 (27,500 in FY07) • Recruiter section of site revamped – Increase in database searches, ca
Slide 48: 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 49: Naukri traffic share (%)
Naukri traffic share (%) 70 60 50 % traffic share 40 30 20 10 0 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Naukri Monsterindia Timesjobs Source : Comscore 49 49
Slide 50: Naukri traffic share
Naukri traffic share 50 Source : www.alexa.com 50
Slide 51: Naukri traffic share
Naukri traffic share jobsite traffic share in %* naukri 62.26 monsterindia+ jobsahead 24.85 timesjobs 9.10 others 3.79 * 3 month average as on September 19, 2008 51 Source : www.alexa.com 51
Slide 52: Naukri traffic share
Naukri traffic share Source : http://trends.google.com/ 52 52
Slide 53: Naukrigulf
Naukrigulf • 1 new office opened in Riyadh – 1 office in Bahrain – 2 offices in Dubai • Encouraging traction • Offices likely to be opened in other Gulf countries • Continue to entrench 53 53
Slide 54: Other verticals (99acres & Jeevansathi)
Other verticals (99acres & Jeevansathi) • Revenue accounted for – 12% of net sales in Q1 FY 09 vs 9% in Q1 FY 08 • Growth momentum continues – Revenue up 71% to USD 1.7 mm in Q1 FY 09 from USD 1.0 mm in Q1 FY 08 • Investment continues – Loss at EBITDA level in Q1 FY 09 at USD 1.7 mm up from USD 0.9
Slide 55: 99acres
99acres • Increase in listings – Property listings at over 250,000 as on 30.6.08 vs 55,000 as on 30.6.07 – Increase in paid listings to 120,000 in Q1 FY 09 vs 21,000 in Q1 FY08 • Site revamp – UI/ search algorithm • Revenue growth robust albeit on a small base • Market for online classifieds expecte
Slide 56: Jeevansathi
Jeevansathi • Investment in growth continues – Brand building to continue – More domestic offline centres (Jeevansathi Matchpoint) being launched • 1 in Lucknow and 3 in Delhi operational • Maintained traffic share in Q1 FY09 – Over 2.53 mm profiles as on 30.6.08 vs 1.71 mm profiles as on 30.6.07 •
Slide 57: 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 58: September, 2008
.com ( Quadrangle We Match Better => Indian Matrimonials September, 2008
Info Edge (India) — Investor Presentation (September 2008) on 6ix