Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (October 2012)
58 slides from Info Edge India's investor presentation, October 2012
Slide 1: Info Edge (India) Ltd. - India's Leading Online 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: Core strengths
Core strengths • Strong market leading internet brands • Product, UI, Analytics and Engineering expertise • People • Financial strength • free cash, negative working capital and negligible leverage • Nationwide sales network • High standards of corporate governance • 5 out of 9 Board members indepen
Slide 4: Our Brands
Our Brands India’s no. 1 jobsite India’s leading real estate site Division of Info Edge Division of Info Edge India’s leading restaurant ratings India’s leading education site for and review site school children ~47%* owned ~49%* owned * Approximate shareholding on fully disbursed and converted basi
Slide 5: Our Brands
Our Brands India’s no. 3 matrimonial site India’s leading education listings site Division of Info Edge Division of Info India’s leading financial products Deals and discounts site with a comparison site merchant platform ~40%* owned ~47%* owned India’s leading site for professional photographers ~2
Slide 6: Our Brands
Our Brands Other owned brands Other invested brands A flash sale site for fashion and home Content sharing platform products ~30%* owned ~40%* owned Offline brands * Approximate shareholding on fully disbursed and converted basis 6
Slide 7: Leveragable nationwide sales/customer interface infrastructure
Leveragable nationwide sales/customer interface infrastructure Info Edge sales offices illustrative map Key Observations Chandigarh ~ 1911 Sales/ client facing staff or 76% of the company’s* workforce Delhi NCR (Noida, Nation wide coverage through 56 Gurgaon) Jaipur company branch offices in 32 citi
Slide 8: 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 2% Cash & Liquid 6% Investments 8% 60% Other Investments Net Fixed Assets Strong 24% Cash and Profitability equivalents Other Current Rs 4.7 bn As
Slide 9: Management Team
Management Team Name and age Qualifications Designation/ Role Previously worked with Year of joining Sanjeev Bikhchandani, BA Economics St. Stephens, PGDM Founder and Executive Lintas, Glaxo Smith Kline 1995 49 IIM-A Vice Chairman Hitesh Oberoi, 40 B Tech, IIT Delhi, PGDM, IIM-B Managing Director &
Slide 10: Management Team contd.
Management Team contd. Name and age Qualifications Designation/ Role Previously worked with Year of joining Satyajit Tripathi, 39 BSc ,PGDBM SVP Sales and Business - 2002 Head – Allcheckdeals Sudhir Bhargava, 43 BE, MBA, FMS, Delhi University EVP - Corporate Finance HSBC, ICICI Bank 2006 Sharmeen Kh
Slide 11: Key features of corporate governance
Key features of corporate governance Separation of Chairman and CEO role Non Executive Chairman Statutory Audit performed by PWC Internal Audit performed by an external firm 5 Independent Directors out of 9 Directors Audit committee comprises of only Independent Directors Disclosure of financial sta
Slide 12: About Info Edge
About Info Edge 12
Slide 13: Milestones
Milestones Levels of 2007 onwards Evolution 2000-2007 5 Investing in start-ups 1997-2000 9 Nov 2006: Public listing in India 4 Scaling up new 8 Launched new portals: 2006- Naukrigulf.com businesses 2005- 99acres.com 7 September 2004: 3 Ability to attract and Acquired Jeevansathi retain talent 3 Apri
Slide 14: Strong performance track record
Strong performance track record Info Edge Revenue and EBITDA margin Highlights (Standalone entity, 2006 – 2012) 4500 50% India’s leading online company with – Strong brands 43.63% 4000 45% – Growing businesses 39.14% – Experienced management team 37.30% 40% 3500 35.10% 34.30% – Investments in intern
Slide 15: Our in house business portfolio
Our in house business portfolio 100.0% 80.0% 99acres 99acres 60.0% Naukri Revenue CAGR 2007 to 2012 Jeevansathi 40.0% 20.0% 0.0% -50% 0% 50% 100% -20.0% Quadrangle -40.0% -60.0% -80.0% -100.0% EBITDA Margin Note:- For FY07-FY12 the data for other brands has not been considered. 15
Slide 16: We are a business of the virtuous circle
We are a business of the 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 So we get Superior sales and service the most execution So we get response the most Build the brand traffic 16
Slide 17: Business drivers - internal
Business drivers - internal Sustaining traffic share (gained in the 2008 – 2010 slowdown) Garner higher market share as slowdown hits Share of internet in recruitment spend growing Specific product innovations to combat the threat of Linkedin.com and semantic search Naukri (Trovix) from Monster Reap
Slide 18: Business drivers - external
Business drivers - external Business cycle Demographics Internet Competition and Economic and GDP per penetration Environment capita 18
Slide 19: Environment
Environment 19
Slide 20: Business cycle and economic environment
Business cycle and economic environment India’s GDP grew at a CAGR of ~8% from FY06 to FY11 Highlights 60000 14% Indian economy estimated to have slowed to 48,792 12% ~6.5% GDP growth in FY11-12. 50000 44,937 41,625 Estimate for FY12-13 lower at 5.5 to 6% 38,990 10% 40000 35,660 32,542 Service secto
Slide 21: Demographics
Demographics Highlights India is among the world's youngest nations with a median age of 26 years. 65% of Indian population estimated to be below 35 years of age Youth population(15-35) of India is growing at a rapid rate According to the World Fact Book, India is projected to have 70% of its popula
Slide 22: Internet penetration (1/2)
Internet penetration (1/2) Growth of broadband in India Growing market for Info Edge Broadband connections in millions 14 12 Internet users estimated at 100 11.89 10 to 120 million 8 8.77 6 Significant user base coupled 2.34 1.35 6.22 4 with headroom for growth 0.18 3.87 2 0 Penetration of broadband
Slide 23: Internet penetration (2/2)
Internet penetration (2/2) Spread of the internet increasing From 5% in 2000 to 37% in 2011, 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 is r
Slide 24: In house businesses
In house businesses 24
Slide 25: Naukri
Naukri Job Panels Seeker Services Resume Banner Ad Database Job Listings Source: http://www.naukri.com/ 25
Slide 26: Naukri - Overview
Naukri - Overview Dominant player – strong brand, largest database, most clients, highest traffic share, Current largest no. of jobs, sales network, Highlights Market Size and Potential product/technology innovation Growth of 29% in revenue in FY12 Growing share in the current slowdown Large market
Slide 27: 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 A popular online activity Some of the most used websites in India Job Search is a popular activity on the Internet in India Naukri is one of India’s most used websites Source: JuxtConsult, India Online 2011 Report. The logo
Slide 28: 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 based on data from Comscore from Alexa.com Source: Comscore.com, Alexa.com 28
Slide 29: Hiring growth rate may be slowing
Hiring growth rate may be slowing Naukri Job Speak Index Naukri hiring survey 90% 80% 78% 80% 72% 70% 62% 60% 47% 46% 48% 50% 36% 40% 30% 20% 10% 5% 2% 2% 4% 0% Layoffs will happen Replacement hiring New jobs will be will happen created Total no. of new jobs posted in July 2008 was scaled to 1000. I
Slide 30: 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 35 140 30 120 25 100 20 80 60 15 40 10 20 5 0 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
Slide 31: 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 FY 10
Slide 32: 99acres
99acres Banner Ad Banner Ad Panels Source: http://www.99acres.com/ 32
Slide 33: 99acres : Overview
99acres : Overview Favorable macroeconomics for the housing market: Current – Increase in middle income/high income Highlights households, Increasing urbanization, availability of finance Opportunities Market Opportunities & Market Potential Potential Most revenue from developers, builders and Signi
Slide 34: 99acres is a leading brand in its segment
99acres is a leading 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 99acres indiaproperty.com magicbricks.com makaan.com * Change in traffic share on account of tagging
Slide 35: 99acres addresses a growing market
99acres addresses a growing market 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, consumerism, m
Slide 36: 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
Slide 37: Jeevansathi
Jeevansathi Search JS Home JS Membership Page Options page Source: http://www.jeevansathi.com/ 37
Slide 38: 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 39: Shiksha
Shiksha Space for education providers Banner Ad User generated content Source: http://www.shiksha.com/ 39
Slide 40: 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 41: Shiksha : Competitive scenario and traffic share
Shiksha : Competitive scenario and traffic share Traffic comparison Key Features of Shiksha Launched in May 2008 Over 110,000 listings aggregated Product feedback encouraging Offices in 12 cities Challenges : Large market dominated by Print Weekly supplement in English dailies Three categories of Ad
Slide 42: Company Financials (Standalone)
Company Financials (Standalone) 42
Slide 43: Consistent long-term growth in Revenue / Profitability
Consistent long-term growth in Revenue / Profitability Revenue trend Profitability INR Million INR Million 4500 2000 395 4000 1800 1600 3500 714 511 279 1400 3000 334 286 1200 369 320 225 207 2500 1000 1817 2000 800 1423 118 75 3056 1260 1227 1500 600 2425 106 112 986 2117 977 939 1964 1954 904 230
Slide 44: Growth momentum had rebounded post 2008-09
Growth momentum had rebounded post 2008-09; reasonable operating revenue growth in Q2 FY13 in a slowing economy Quarterly Operating Revenue Quarterly Operating trend last 5 years Profitability INR Million INR Million 1200 500 450 1000 400 350 800 300 250 600 200 150 400 100 50 200 0 Q1 FY08 Q2 FY08
Slide 45: Recruitment: Profitability had improved post 2008-09 slowdown
Recruitment: Profitability had improved post 2008-09 slowdown 900 60% Highlights Quarterly recruitment revnues (INR M) 800 50% 700 Growth in recruitment revenue for EBITDA margin (%) 600 40% last 12 quarters. 500 Slight dip in H1 30% Slowdown in GDP in FY13 400 impacting recruitment growth rate 300
Slide 46: Improving financial performance of Non Recruitment businesses
INR M -150 -100 -50 0 50 100 150 200 250 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Revenue (INR M) Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 EBITDA (INR M) Q3 FY11 EBITDA losses contained Q4 FY11 Q1 FY12 Q2 FY12 of Non Recruitment businesses Improving financial performanc
Slide 47: Investee Companies
Investee Companies 47
Slide 48: Zomato.com
Zomato.com Zomato Website operational Experienced team – Restaurant menu’s, ratings and reviews – Coverage of over 10 cities including Delhi, Large addressable market Mumbai, Bangalore, Pune, Hyderabad – Revenues from advertising and lead sales Invested ~INR 310 mn for ~ 48.5% stake – Events (ticket
Slide 49: Meritnation.com
Meritnation.com Applect www.meritnation.com Team experienced in development of – Direct to consumer model education content, assessment modules – Provides free solutions mainly for and delivery. mathematics and science for standard 6 to 12 of popular national curriculum’s viz. CBSE and Large address
Slide 50: Policybazaar.com
Policybazaar.com Etechaces An insurance comparison site Experienced team www. policybazaar.com – Other financial products being added Large market with annuity income (home, personal, car, education) Invested INR 300 mm for a ~40% stake Comparison shopping of financial products Intel Capital a co-in
Slide 51: Mydala.com
Mydala.com Mydala Website operational Experienced team – A site offering discount offers/ deals/ do-it- yourself platform for merchants Large addressable market – Revenues from commissions from merchants Invested INR 270 mn for ~47% stake 51
Slide 52: Canvera.com
Canvera.com Canvera Website operational since 2008 Experienced team – Solutions for professional photographers Expertise in digital imaging/ printing Ready to use website, software and workflow for managing photographs, designing Large addressable market and printing quality photo books/ albums Inve
Slide 53: 99labels.com
99labels.com 99labels Website operational Experienced team – E-commerce site offering fashion Expertise in sourcing merchandise and accessories through flash sales Large addressable market – Revenues from sale of products Invested INR 280 mn (including secondary) for ~40% stake (excluding convertibl
Slide 54: Floost.com
Floost.com Floost Website operational Experienced team – A content sharing platform Invested INR 20 mn for ~30% stake 54
Slide 55: Shareholding and Board
Shareholding and Board 55
Slide 56: > 50% share-holding with the Founding management group and >25% with FIIs
> 50% share-holding with the Founding management group and >25% with FIIs Mutual Funds Individuals and and ESoP others, 9.39% Banks, 10.68% Trust, 0.81% Bodies Corporate, 0.18 % Wholetime Directors & their Foreign entities, 53.40% Institutional Investors, 25.54 % HDFC Mutual Fund 4.70% Equinox 3.83%
Slide 57: Board of Directors
Board of Directors Whole time Non Executive Independent Sanjeev Bikhchandani (49) Kapil Kapoor (48) Saurabh Srivastava (66) Arun Duggal (65) 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 58: 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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