Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (October 2008)
62 slides from Info Edge India's investor presentation, October 2008
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 (but slowing in current environment) – Revenue grew from INR 38 mm in FY02 to INR 2,397 mm in FY08 – Profitable since FY03 – Cash and equivalents ~ INR 3,141 mm (as on Sep 30, 2008) – Negligible debt • VC funding in 2000 and p
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 86% of company’s net sales in Leader in emerging online 2004 To be the hub for Q2FY09 market No. 3 matrimony educational classifi
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
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 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.
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
Slide 18: Brijj
Brijj 18 A professional networking site with about 1 mm registrations.
Slide 19: Brijj
Brijj 19 A professional networking site with about 1 mm registrations.
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
Slide 24: Property Listings Banner
Banner Property Ads Listings Banner Ads Featured Gallery Sponsored Properties Google Adsense 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
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
Slide 27: Allcheckdeals
Allcheckdeals Broking services. Success based revenue model. Over 300 transactions closed in last 12 months 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 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 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
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
Slide 34: Education Shiksha
Info Edge India India’s Online Classifieds Company Education Shiksha India's No 4 Job Ste © .com ml Jeevansathi.com ( te
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: Investee Companies
Info Edge India India’s Online Classifieds Company Investee Companies India's No 4 Job Ste © .com ml Jeevansathi.com ( te
Slide 38: Applect
Applect • Online educational assessment site to be launched in the K 12 segment – Students pay for subscription – Login to assess their understanding of subjects • Large addressable market • Experienced team • Propose to invest INR 65 mm, in tranches, for a 40% stake – Invested ~ INR 20 mn as on Sep
Slide 39: 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 10 mm as on September 30, 2008 39
Slide 40: 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 40
Slide 41: Board of Directors & Auditors
Board of Directors & Auditors
Slide 42: Board of Directors
Board of Directors Board of Directors Kapil KapilKapoor Kapoor(44) (44) 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 43: 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 44: Financial performance
Financial performance Revenues Figures in INR mm 2500 2000 1500 2396.6 1000 1471.6 840.6 723.2 500 671.4 451.2 194.7 0 FY2004 FY2005 FY2006 FY2007 FY2008 Q1 FY09 Q2 FY09 Q2 FY 09 over Q2 FY 08 : 24% growth in revenue and 19% growth in net sales 44
Slide 45: 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 50 74.8 44.5 3.8 0 FY2005 FY2006 FY2007 FY2008 Q1 FY09 Q2 FY09 Q 2 FY 09 vs Q2 FY 08 growth of 71% FY 05 to FY 08 CAGR of 296% 45
Slide 46: Financial performance
Financial performance Figures in INR mm EBITDA Net Profit 900 40.0% 23.2% 21.6% 20.8% 35.13% 800 35.0% 500 18.3% 19.3% 29.7% 20.0% 30.0% 31.00% 31.00% 700 16.7% 30.0% 400 600 31.0% 15.0% 25.0% 554.9 8 4 2 .0 500 23.9% 300 20.0% 12.5% 400 10.0% 15.0% 200 300 270.7 4 4 1 .3 10.0% 156.7 200 5.0% 129.7
Slide 47: Balance sheet
Balance sheet (as on 30.09.08) Liabilities Assets 7.0% Net block + CWIP 9.7% Share capital 4.8% 1.9% 0.6% 0.4% 8.4% Capital advances 14.4% 13.1% 0.4% ESOP o/s amount Deferred tax asset Reserves and surplus Investments 0.1% Secured loans Cash and bank balance other current assets Deferred sales reven
Slide 48: Shareholding pattern
Shareholding pattern (as on 30.09.08) Individuals & others, 11.69% ESOP Trust, 2.26% Overseas Corp Bodies, 4.86% Founder/ Whole time Directors, 54.15% Bodies Corporate, 0.60% Foreign Inst investors, 24.47% Mutual Funds, 1.97% Fidelity Funds 8.11% Passport Capital 5.01% KPCB and Sherpalo 4.08% T Rowe
Slide 49: Update Q2 FY 09
Info Edge India India’s Online Classifieds Company Update Q2 FY 09 5G .conr soll. Cc India's Not Job Ste India's Property Baraar Indian Matrimonials « We Match Better
Slide 50: Recruitment solutions
Recruitment solutions • Recruitment solutions accounted for 86% of net sales in Q2 FY 09 vs 90% in Q2 FY 08 • Growth momentum impacted – Revenue up 19% to INR 563.5 mm in Q2 FY 09 from INR 471.1 mm in Q2 FY 08 – Heightened uncertainty in Q2 50
Slide 51: Naukri
Naukri • Naukri.com continues to be the No. 1 jobsite in India – Over 15 mm resumes as on 30.9.08 vs about 10.69 mm as on 30.9.07 – Over 18,600 corporate customers in Q2 FY09 (32,500 in FY08) vs 15,400 in Q2 FY08 (27,500 in FY07) – About 24,900 corporate customers in H1 FY09 vs 20,500 in H1 FY08 • R
Slide 52: 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 53: Naukri traffic share (%)
% tra ffic s h a re 0 10 20 30 40 50 60 70 No v -0 7 De c -0 7 Source : Comscore Ja n-0 8 Fe b- 08 Ma Naukri r-0 8 Ap r-0 8 Ma Monsterindia y- 08 Ju n-0 8 Timesjobs Ju l- 0 8 Au Naukri traffic share (%) g- 08 Se p- 08 53
Slide 54: Naukri traffic share
Naukri traffic share 54 Source : www.alexa.com
Slide 55: 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 55 Source : www.alexa.com
Slide 56: Naukri traffic share
Naukri traffic share Source : http://trends.google.com/ 56
Slide 57: 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 57
Slide 58: Other verticals (99acres & Jeevansathi)
Other verticals (99acres & Jeevansathi) • Revenue accounted for – 13.8% of net sales in Q2 FY 09 vs 10% in Q2 FY 08 • Growth momentum continues – Revenue up 71% to INR 90.6 mm in Q2 FY 09 from INR 52.9 mm in Q2 FY 08 • Investment continues – Loss at EBITDA level in Q2 FY 09 at INR 86.3 mm up from IN
Slide 59: 99acres
99acres • Increase in listings – Property listings at over 153,900 as on 30.9.08 vs 60,900 as on 30.9.07 – Increase in paid listings to 128,500 in Q2 FY 09 vs 27,000 in Q2 FY08 • Site revamp – UI/ search algorithm • Revenue growth robust albeit on a small base • Market for online classifieds expecte
Slide 60: 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 Q2 FY09 – Over 2.58 mm profiles as on 30.9.08 vs 1.84 mm profiles as on 30.9.07 •
Slide 61: 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 62: October, 2008
.com ( Quadrangle We Match Better => Indian Matrimonials October, 2008
Info Edge (India) — Investor Presentation (October 2008) on 6ix