Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (February 2014)
58 slides from Info Edge India's investor presentation, February 2014
Slide 1: Info Edge (India) Ltd. - India's Leading Online Company
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Slide 2: Safe harbor
This image cannot currently be display ed. 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
Slide 3: Core strengths
This image cannot currently be display ed. 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 go
Slide 4: Our Brands
This image cannot currently be display ed. 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 ~50%* owned ~56%* owned * Approximate shareho
Slide 5: Our Brands
This image cannot currently be display ed. Our Brands India’s no. 3 matrimonial site India’s leading education listings site Division of Info Edge Division of Info Edge India’s leading financial products Deals and discounts site with a comparison site merchant platform ~32%* owned ~47%* owned India’
Slide 6: Our Brands - Other owned brands
This image cannot currently be display ed. Our Brands Other owned brands Offline brands 6
Slide 7: Leverage nationwide sales/customer interface infrastructure
This image cannot currently be display ed. Leverage nationwide sales/customer interface infrastructure Info Edge sales offices illustrative map Key Observations Chandigarh ~ 2060* Sales/ client facing staff or 74% of the company’s* workforce Delhi NCR (Noida, Nation wide coverage through 56 Gurgaon)
Slide 8: Strong balance sheet and strong cash flows
This image Info Edge has always maintained a strong balance cannot currently be display ed. sheet and strong cash flows Assets Fixed cost model and profitability has led to a strong cash accretion 5% 0% Cash & Liquid Investments 10% Other Investments 47% Net Fixed Assets Cash and Strong equivalents
Slide 9: Management Team
This image cannot currently be display ed. 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 50 IIM-A Vice Chairman Hitesh Oberoi, 41 B Tech,
Slide 10: Management Team contd.
This image cannot currently be display ed. Management Team contd. Name and age Qualifications Designation/ Role Previously worked with Year of joining Satyajit Tripathi, 40 BSc ,PGDBM SVP Sales and Business - 2002 Head – Allcheckdeals Sudhir Bhargava, 44 BE, MBA, FMS, Delhi University EVP - Corporat
Slide 11: Key features of corporate governance
This image cannot currently be display ed. 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 Indepe
Slide 12: About Info Edge
This image cannot currently be display ed. About Info Edge 12
Slide 13: Milestones
This image cannot currently be display ed. 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 an
Slide 14: Strong performance track record
This image cannot currently be display ed. Strong performance track record Info Edge Revenue and EBITDA margin Highlights (Standalone entity, 2006 – 2013) 6000 50% India’s leading online company with – Strong brands 43.63% 45% – Growing businesses 39.14% 40.09% 5000 – Experienced management team 37.
Slide 15: Our in house business portfolio
This image cannot currently be display ed. Our in house business portfolio 99acres Jeevansathi Revenue CAGR 2007 to 2013 Naukri EBITDA Margin Note:- For FY07-FY13 the data for other brands has not been considered. 15
Slide 16: We are a business of the virtuous circle
This image cannot currently be display ed. 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 Superior sales and service execution So we get the most So we get B
Slide 17: Internal business drivers and updates
This image cannot currently be display ed. Internal business drivers and updates Share of internet in recruitment spend growing Garnering higher market share in this slowdown Specific product innovations to combat the threat of Linkedin.com – Recruiter Profile Naukri launched. Referral hiring and se
Slide 18: Business drivers - external
This image cannot currently be display ed. Business drivers - external Business cycle Demographics Internet Competition and Economic and GDP per penetration Environment capita 18
Slide 19: Environment
This image cannot currently be display ed. Environment 19
Slide 20: Business cycle and economic environment
This image cannot currently be display ed. Business cycle and economic environment India’s GDP grew at a CAGR of ~8% from FY06 to FY12 Highlights 60000 14% 52,025 Indian economy slowed to 6.5% GDP growth 48,792 12% in FY11-12. 50000 44,937 41,625 38,990 10% Estimates for FY12-13 at 5.5% and for FY 4
Slide 21: Internet penetration
This image cannot currently be display ed. Internet penetration Growth of broadband in India 16 13.81 14 11.89 12 10 8.77 8 6.22 6 3.87 4 2.34 2 1.35 0.18 0 No. of subscribers in millions India’s Internet consumer profile mix is changing to broadband and heavier usage Spread of the internet increasi
Slide 22: Internet Impact on Young India
This image cannot currently be display ed. Internet Impact on Young India 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 • India will see 70 million new entrants to its workforce over the next 5 years India c
Slide 23: India has the potential to treble its iGDP
This image cannot currently be display ed. India has the potential to treble its iGDP to $100bn in 2015 from $30bn today % of total Internet contribution to Internet’s Contribution to India’s GDP (in $ bn) India’s GDP Private Consumption Private Investment Private consumption Public Expenditure Trad
Slide 24: In house businesses
This image cannot currently be display ed. In house businesses 24
Slide 25: Naukri
This image cannot currently be display ed. Naukri Job Panels Seeker Services Resume Banner Ad Database Job Listings Source: http://www.naukri.com/ 25
Slide 26: Naukri - Overview
This image cannot currently be display ed. Naukri - Overview Dominant player – strong brand, largest database, most clients, highest traffic share, largest no. of jobs, sales network, Market Size and Potential product/technology innovation Current Growing share in the current slowdown Highlights Inv
Slide 27: Online job search is popular and Naukri dominant
This image Online job search is a popular activity and Naukri has cannot currently be display ed. 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: Juxt
Slide 28: Naukri is a clear #1 with >60% traffic-share
This image cannot currently be display ed. Naukri is a clear # 1 with > 60% traffic-share Traffic share of various recruitment sites based on data from Comscore 70 60 50 40 30 20 10 0 Naukri Monsterindia Timesjobs Shine Source: Comscore.com 28
Slide 29: Hiring growth rate has slowed in current slowdown
This image cannot currently be display ed. Hiring growth rate has slowed in current slowdown Naukri Job Speak Index Naukri hiring survey 80% 72% 68% 70% 62% 60% 46% 53% 54% 48% 50% 45% 40% 30% 20% 10% 4% 5% 5% 5% 0% Layoffs will happen Replacement hiring New jobs will be will happen created Jan-12 J
Slide 30: Naukri.com has performed on operational metrics
This image cannot currently be display ed. Naukri.com has performed on operational metrics Number of candidate resumes has grown Average daily resumes added and modified consistently 40 160 35 140 30 120 100 25 80 20 60 15 40 10 20 5 0 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11
Slide 31: Naukri supported by four recruitment offerings
This image cannot Naukri is supported by four recruitment offerings currently be display ed. 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
Slide 32: 99acres
This image cannot currently be display ed. 99acres Banner Ad Banner Ad Panels Source: http://www.99acres.com/ 32
Slide 33: 99acres: Overview
This image cannot currently be display ed. 99acres : Overview Favorable macroeconomics for the housing market: – Large market Current – Increase in middle income/high income Highlights households, increasing urbanization, availability Opportunities Market Opportunities & Market of finance Potential
Slide 34: 99acres is the leading brand in its segment
This image cannot currently be display ed. 99acres is the leading brand in its segment Traffic share of various real estate sites based on Comscore data* 60 50 40 % tarffic share 30 20 10 0 99acres indiaproperty.com magicbricks.com makaan.com commonfloor.com housing.co.in * Change in traffic share o
Slide 35: 99acres addresses a growing market
This image cannot currently be display ed. 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 ac
Slide 36: Allcheckdeals.com
This image cannot currently be display ed. 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
Slide 37: Jeevansathi
This image cannot currently be display ed. Jeevansathi Search JS Home JS Membership Page Options page Source: http://www.jeevansathi.com/ 37
Slide 38: Jeevansathi: Overview
This image cannot currently be display ed. 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
Slide 39: Shiksha
This image cannot currently be display ed. Shiksha Space for education providers Banner Ad User generated content Source: http://www.shiksha.com/ 39
Slide 40: Shiksha: Overview
This image cannot currently be display ed. 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 Potenti
Slide 41: Shiksha: Key features
This image cannot currently be display ed. Shiksha : Key features Launched in May 2008 Over 110,000 listings aggregated Product feedback encouraging Offices in 12 cities Opportunity: Large market dominated by Print Weekly supplement in English dailies Three categories of Advertisers - Indian educati
Slide 42: Company Financials (Standalone)
This image cannot currently be display ed. Company Financials (Standalone) 42
Slide 43: Consistent long-term growth in Revenue / Profitability
This image cannot currently be display ed. Consistent long-term growth in Revenue / Profitability Revenue trend Profitability INR Million INR Million 6000 2500 5000 465 2000 395 963 320 4000 985 714 1500 511 279 334 286 3000 320 207 369 1939 1000 1817 2000 225 11875 3387 1537 1474 3056 1423 1315 271
Slide 44: Steady growth momentum in Q3 FY14
This image cannot currently be display ed. Steady growth momentum; reasonable YoY revenue growth in Q3 FY14 in a slow growth economy Quarterly Operating Revenue Quarterly Operating trend last 6 years Profitability INR Million INR Million 1400 500 450 1200 400 1000 350 300 800 250 200 600 150 400 100
Slide 45: Recruitment: Profitability has been steady in the slowdown
This image cannot currently be display ed. Recruitment: Profitability has been steady in the slowdown Highlights 1000 60% 900 Quarterly recruitment revnues (INR M) Growth in recruitment revenue for 50% 800 last 12 quarters. 700 Slowdown in GDP in FY13 EBITDA margin (%) 40% has impacted recruitment 6
Slide 46: Improving financial performance of Non Recruitment businesses
This image Improving financial performance cannot currently be display ed. of Non Recruitment businesses INR M 400 350 300 250 200 150 100 50 0 -50 -100 -150 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY1
Slide 47: Investee Companies
This image cannot currently be display ed. Investee Companies 47
Slide 48: Investee companies - amount invested and status
This image cannot currently be display ed. Investee companies – amount invested and status Rs in million Total Approx. diluted % of the total amount and converted amount Investee Company Website invested shareholding % invested Active Zomato Media Pvt Ltd. www.zomato.com 1430 50% 40% Applect Learnin
Slide 49: Zomato.com
This image cannot currently be display ed. Zomato.com Zomato Website operational Experienced team – Restaurant menu’s, ratings and reviews – Coverage of over 12 Indian cities including Delhi, Mumbai, Bangalore, Pune, Hyderabad Large addressable market – Launched in UAE, Sri Lanka, UK, Qatar, Over 3
Slide 50: Meritnation.com
This image cannot currently be display ed. Meritnation.com Applect www.meritnation.com Team experienced in development of – Direct to consumer freemium model education content, assessment modules – Provides free solutions mainly for mathematics and and delivery. science for standard 6 to 12 of popul
Slide 51: Policybazaar.com
This image cannot currently be display ed. 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 325 mm for a ~32% stake Comparison shopping
Slide 52: Mydala.com
This image cannot currently be display ed. Mydala.com Mydala Website operational Experienced team – A site offering discount offers/ deals/ do-it- yourself platform for merchants – Revenues from commissions from Large addressable market merchants – Revenues from mobile Invested INR 270 mn for ~47% s
Slide 53: Canvera.com
This image cannot currently be display ed. 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 an
Slide 54: Happilyunmarried.com
This image cannot currently be display ed. Happilyunmarried.com Happily unmarried Website operational Experienced team – Revenue from design and sale of fun quirky creative products Large addressable market Invested INR 50 mn for ~25% stake May additionally purchase some secondary 54
Slide 55: Shareholding and Board
This image cannot currently be display ed. Shareholding and Board 55
Slide 56: Shareholding with founding management group and FIIs
This image > 50% share-holding with the Founding management cannot currently be display ed. group and ~28% with FIIs Individuals and others, ESoP Trust, 9.19% Mutual 0.23% Funds and Banks, 11.30% Bodies Corporate, Wholetime 0.34% Directors & their entities, 51.10% Foreign Institutional Investors, 27
Slide 57: Board of Directors
This image cannot currently be display ed. Board of Directors Whole time Non Executive Independent Sanjeev Bikhchandani (50) Kapil Kapoor (49) Saurabh Srivastava (67) Arun Duggal (67) Independent Director Independent Director Founder and Executive Vice Chairman & Non Executive B.Tech IIT Kanpur, B.T
Slide 58: Investor Relations Contacts
This image cannot currently be display ed. Investor Relations Contacts Name Ambarish Raghuvanshi Sudhir Bhargava Group President - Finance and EVP - Corporate Finance Designation CFO e mail [email protected] [email protected] Telephone +91 120 3082007 +91 120 3082006 Fax +91 120 3082095 I
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