Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (May 2018)
87 slides from Info Edge India's investor presentation, May 2018
Slide 1: Info Edge (India) Limited
Info Edge (India) Limited India’s internet classifieds company May, 2018 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Info Edge (India) Limited (the “Company”) solely for information purposes without any regard to any specific objectives, financial situations or information needs of any particular person. This presentation and its contents are confidential and shoul
Slide 3: Our internal businesses
Our internal businesses Dominant market leader India’s leading real estate site Number 3 but fastest growing India’s leading education listings site 3
Slide 4: Strategic investments
Strategic investments# India’s leading restaurant ratings and India’s leading insurance review site comparison site Shareholding ~31%*@ Shareholding ~10%*^ Supplementary online learning platform Men’s grooming range (Ustraa) and for K12 and Entrance Exams women’s range (Happily Unmarried) Shareholdi
Slide 5: Info Edge has a strong balance sheet
Info Edge has a strong balance sheet As of Mar 31, 2018 Assets – 59% Cash Liabilities – Negligible leverage 2% 2% Cash & Liquid 5% 5% Investments Shareholders Equity Strategic 15% Investments Cash and Deferred Sales Net Fixed Assets 31% equivalents Revenue Rs 15.6 bn Non Current Assets Liabilities &
Slide 6: Financial performance track record
Financial performance track record Revenue (Rs crore) for the standalone entity (2012 – 2018) 1000 900 916 800 802 700 718 600 612 500 400 506 2397 2241 2152 437 1326 300 377 824 200 100 0 FY12 FY13 FY14 FY15 FY16* FY17* FY18* Revenue (Rs Crore) • IND-AS numbers for FY16-FY18; Margins for FY16-FY18
Slide 7: Segmental operating EBITDA
Segmental operating EBITDA Info Edge and Segment-wise EBITDA (Rs crore) 400 350 300 250 200 150 100 50 0 FY12 FY13 FY14 FY15 FY16* FY17* FY18* Info Edge EBITDA Recruitment EBITDA EBITDA Loss in Other verticals * FY16 - FY18* in the charts above are IND-AS EBITDA numbers adjusted for non-cash charges
Slide 8: Recruitment profits ploughed back to build 99acres, Jeevansathi and Shiksha
Recruitment profits ploughed back to build 99acres, Jeevansathi and Shiksha Total Cash generated from Recruitment business since inception (Rs crore) 99acres, 216, 9% JS, 84, 4% Residual Cash, Shiksha, 35, 1% 2088, 86% Only 14% of the cash generated by recruitment has been used to fund other busines
Slide 9: Corporate Governance
Corporate Governance Independent Directors are a majority on the Board Separation of Chairman and CEO role Non Executive Chairman Statutory Audit performed by EY Internal Audit performed by an external firm Audit committee comprises of only Independent Directors Formal dividend policy
Slide 10: Board of Directors
Board of Directors Whole time Non Executive Independent Saurabh Srivastava (72) Arun Duggal (71) Sanjeev Bikhchandani (54) Kapil Kapoor (53) Independent Director Independent Director Founder and Executive Vice Chairman & Non Executive B.Tech IIT Kanpur, B.Tech IIT Delhi, PGDM IIM-A Chairman Director
Slide 11: Nationwide sales/customer interface infrastructure
Nationwide sales/customer interface infrastructure Info Edge sales offices illustrative map Chandigarh Key Observations Delhi NCR (Noida, Gurgaon) Jaipur Lucknow Nation wide coverage Ahmedabad Indore Bhopal Raipur Kolkata through 71 company branch Nasik offices in 46 cities in India Mumbai Auranga
Slide 12: Promoters and associates holding ~43.6% and Institutional Investors holding ~47.6%
Promoters and associates holding ~43.6% and Institutional Investors holding ~47.6% (as of Mar 31, 2018) Axis Mutual Fund 3.62% Others, Ward Ferry 3.24% 8.9% Nalanda 3.16% Promoters, Amansa 3.05% associates Aranda Investments (Mauritius) 2.69% Mutual and ESOP Matthews 2.51% Funds and Trust, Goldman S
Slide 13: Naukri
infoedge Naukri . x Employer Zone Cnaukri.com JOBS RECRUITERS COMPANIES — SERVICES MORE LOGIN NOTIFICATIONS Inaia’s Not Job Site — Buy Online IIT/IIM Jobs International Jobs Walk-in Jobs New to Naukri? Register with us Recent Searches java programmer- 186 new jobs J : or investor relation- 135 new j
Slide 14: Key business metrics for Naukri
Key business metrics for Naukri • During or end of, Q4 FY 17-18 – 72% traffic share* in Mar, 2018 (Source : SimilarWeb) – 475,000 avg. job listings on a given day – ~57 million resumes – 16,600 avg. resumes added daily – 330,000+ resumes modified daily – 750,000 to 1,000,000+ resume searches daily –
Slide 15: Naukri has dominant traffic share
Naukri has dominant traffic share Overall traffic (from desktops & laptops and web mobile) based on time spent 80% 70% 60% 50% 40% 30% 20% 10% 0% Naukri Monster India Timesjob Shine Source: SimilarWeb Above chart excludes Linkedin since much of the traffic may not pertain to jobs 15
Slide 16: Naukri is a business of the virtuous circle
Naukri is a business of the virtuous circle Benefits • Naukri has over We get the 100% of industry most profits enabling clients We’ve got the greater investment in most jobs – Product innovation – Engineering We get – Brand support the most – Sales network response We get the most – Servicing back
Slide 17: Revenue sources for Naukri
Revenue sources for Naukri B2B revenues comprise ~90% of overall Naukri revenue and includes: – Resume database access – Job listing (response management) – Employer branding (visibility) – Career site manager – Others - Resume short listing and screening, campus recruitment – Non recruitment adve
Slide 18: Breakup of revenue by product type and industry in FY17-18
Breakup of revenue by product type and industry in FY17-18 RMS / CMS Others, Services/Ot / Referral, 1.1% hers, 20.1% 4.2% IT & ITES, Assisted search, 4.1% 29.6% Branding, 7.3% Manufacturi ng, 5.8% Job seeker services, BFSI, 5.3% 10.6% Resume Job listings, database Infrastructu 12.7% access, re, 13.
Slide 19: Average Revenue per unique client growing with increasing number of clients
Average Revenue per unique client growing with increasing number of clients* Naukri India - Revenue per client and # of clients 80 76 80 65 71 51 57 60 46 48 60 42 35 40 72 40 61 66 68 53 56 57 20 41 45 20 0 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16* FY17* FY18* Avg. realization in Rs '000 (LHS) # of uni
Slide 20: Product Innovation is cornerstone of our strategy
Product Innovation is cornerstone of our strategy • Recruitment Management • Friction free connectors to System1 other ATS • RMS Pro • Reviews • RMS Referral • Job aggregation Job & Recruitment • RMS Consultant Content Automation Aggregation Tools INNOVATIONS Data • NLP2 based content extraction Mob
Slide 21: RMS – empowering recruitment ecosystem
RMS – empowering recruitment ecosystem Enterprises CHROs SMBs Recruiters Naukri Clients RMS Users QBOA QBO Pay Tax Hiring Consultants Managers Partners Candidates • The career site helps Naukri become part of a much larger ecosystem with thousands of connected corporate sites and RMS would help powe
Slide 22: Naukri RMS
intoedge Naukri RMS RECRUITMENT CRMs MANAGEMENT SYSTEM EV©LVE TO A NEW AGE RECRUITMENT SOLUTION Automates hiring process, right from requisition to offer C RMS ENTERPRISE C RMS CONSULTANT CRMS REFERRAL
Slide 23: Recruiter profile
Recruiter profile Platform for public profiles of HR professionals and consultants Jobseekers can ‘FOLLOW’ Recruiter Updates Keep jobseekers informed of recruiter’s Active Jobs Help Build recruiter’s personal database Over 175,000 jobs have Recruiter Profile details, 40% of these jobs have Recruiter
Slide 24: The App and HTML5 site
The App and HTMLS site "BOA OG. £1716 7393 Jobs Found Product Manager MODIFY | SAVE AS ALERT Bey Sallis Designations Companies Product Manager - Artificial Intelligence Domain Axcelovate & 3-8 Years Location @ Bengaluru Product Strategy, Product Marketing, Product Management, Product Pricing, ... Wo
Slide 25: Competition
Competition • Local job boards – Indeed.co.in – Monsterindia.com – Timesjobs.com – Shine.com • Linkedin – Caters to a different segment / requirement 25
Slide 26: Overseas peer comparison
Overseas peer comparison Name of the Approx. revenue No. of profiles/ No. of unique Approx. Market website from recruitment resumes in mn clients Cap of the (in USD mn) @ company (in USD bn )*** 51job.com* 353 103 460,000 6.7 (China) Seek.com^ 271 5.5 613,000 5.4 (Australia) Recruit# 1,976 - - 47.2
Slide 27: 99acres
infoedge 99acres 99acres aiinon~ DOWNLOAD APP CUSTOMERSERVICE SELL RENTPROPERTY —HOMELOANS RENT PROJECTS COMMERCIAL DEALERS Get personalized property - Theasr suggestions on a single tap Mobile Appies- Awards Winner 2015 neaLstaTE CATEGORY AVINAS! avinasn Oe NAYARI NEWCOUNTYL tars towe = [rr ereaiom
Slide 28: Online real estate business - India
Online real estate business - India • Real estate is one of the largest spender on advertising in print media • Our estimate of spend on online real estate portals is about Rs 3.5-4.0 bn in FY 17-18 (excluding Google and Facebook) • 99acres, a leader in this category – Google, Facebook and local cla
Slide 29: Time share of 99acres vs. competitors
Time share of 99acres vs. competitors Overall traffic (from desktops & laptops and web mobile) based on time spent 60% 50% 40% 30% 20% 10% 0% 99acres Magicbricks Commonfloor Housing Source: SimilarWeb 29
Slide 30: 99acres business model
99acres business model Revenue Model Projects So we get Listings the most Featured listings clients We’ve got the Microsites most real estate Email campaigns listings Banner Ads Re-sale Listings So we get Featured listings the most response So we get Rental the most Listings tr
Slide 31: Key business metrics for 99acres
Key business metrics for 99acres • As of March 31, 2018 – Total projects 152,000+ (under construction or ready to move in) – Total listings** 755,000 (including 302,000 owner listings) • Residential 637,000 • Commercial 118,000 **Typically, listings stay live for 2 months 31
Slide 32: Break-up of customers and billing in FY18
Break-up of customers and billing in FY18 No. of customers in ‘000 Billing breakup by customer type 4.1 45% 50% 16.2 BROKER BUILDER BROKER BUILDER 32
Slide 33: 99acres –strategy
99acres –strategy • Customer Service • Analytics • Project • Lead optimization comparisons • Monetization updates / payment Customer Data • New offerings plans Service Science Strategy Platform Data Quality • SEO • Mobile & HTML site • Verify listings • Personalization • Improve listing • Brand buil
Slide 34: Position in the classifieds market
Position in the classifieds market • Leadership position maintained – We have maintained highest traffic share for 99acres for past several quarters – To ensure data quality, innovation and customer retention, we have increased our investments in product / data quality / marketing • Listings growth
Slide 35: 99acres Quarterly Financials
99acres Quarterly Financials 99acres Quarterly Revenue (Rs cr) and EBITDA (Rs cr) 50.0 40.0 37 33 34 31 31 30 32 30.0 28 28 26 26 28 25 25 36% 23 23 23 19 19 31% 20.0 16 16% 16% 13% 13% 13% 10.0 12% 8% 6% 6% 5% 0.0 (5) (7) 2 (7) (8) (10) (10) -10.0 (13) (10) (11) (11) (12) (13) -20.0 (17) (16) (20)
Slide 36: Mobile app – home screen, navigation and search
Mobile app – home screen, navigation and search 36
Slide 37: Mobile app - Property search results page, filter page, property detail page
Mobile app - Property search results page, filter page, property detail page 37
Slide 38: Mobile app – project search results page, project detail page and property posting form
Mobile app – project search results page, project detail page and property posting form 38
Slide 39: Jeevansathi
intoedge Jeevansathi BROWSE PROFILES BY v SEARCH v of REGISTER FREE Be found
Slide 40: Online matrimonial business - India
Online matrimonial business - India • Online spend by users estimated to be ~Rs 6-7 bn in FY 17-18 • Three main players – Bharat matrimony, Shaadi and Jeevansathi • Used primarily by – Those disconnected from mother communities – Youngsters looking for choices – Families for match-making • Fragmente
Slide 41: Jeevansathi business model
Jeevansathi business model Jeevansathi is a freemium model, wherein – Users do not pay for listing, searching, expressing interest and accepting others’ expression of interest – Payment is required to contact the other person Offline centres (10 centres operational) – Walk in sales for matching
Slide 42: Competition
Competition • Three main players – Bharat Matrimony is the leader, followed by Shaadi and then Jeevansathi • Bharat Matrimony dominates states in south India and non resident Indians from these states • Shaadi leads in Gujarat and Punjab and non resident Indians from these states • Jeevansathi leads
Slide 43: Mobile app
intoedge Mobile app
Slide 44: Jeevansathi quarterly financials
Jeevansathi quarterly financials Jeevansathi Quarterly Revenue (Rs cr) and EBITDA (Rs cr) 20.0 18 18 17 17 15 14 14 14 15.0 13 11 11 12 10 9 10 10 9 9 9 9 10.0 24% 31% 22% 29% 21% 29% 19% 5.0 18% 21% 10% 0.0 16% 16% 0 (1) (2) (2) (1) (3) (1) (2) (1) -5.0 (3) (4) (4) (4) (4) (5) (6) -10.0 (8) (10) (1
Slide 45: Shiksha
intoedge Shiksha MBA~ ENGINEERING~ LAW~ DESIGN» MORECOURSES~ © STUDYABROAD > COUNSELLING ~ EXAMS QUESTIONS “*” CAREERS Indus Business Academy ( IBA), Bangalore Garden City University Birla Global University International Management SRM Institute Featured T. A. Pai Management Institute (TAPMI) Last D
Slide 46: Shiksha – some approx. nos.
Shiksha – some approx. nos. 46
Slide 47: Educational classifieds business - India
Educational classifieds business - India • Education as a category spends amongst the highest in print – Spend in print estimated to be similar to real estate • Online , School/College contact programs, Consultant commissions & fairs form bulk of remaining marketing spends by colleges and Universiti
Slide 48: Shiksha
Shiksha A website which helps students decide undergraduate and post graduate options, by providing useful information on careers, exams, colleges & courses 48
Slide 49: Shiksha business model
Shiksha business model • Branding & advertising solution for colleges & universities (UG, PG, post PG) – Both Indian and foreign entities advertise – Large number of Indian students go overseas for higher education • Estimated at ~125,000 + every year • Lead generation – Potential student/applicants
Slide 50: Authentic College Reviews
Authentic College Reviews 50
Slide 51: Q&A mobile app for expert advice
Q&A mobile app for expert advice 51 51
Slide 52: Campus representatives from colleges for credible advice
Campus representatives from colleges for credible advice 52
Slide 53: Home page for Overseas Education
Home page for Overseas Education 53
Slide 54: Comprehensive Scholarship information for study abroad
Comprehensive Scholarship information for study abroad 54
Slide 55: Mobile sites
Mobile sites India Study Abroad 55
Slide 56: Competition
Competition Domestic Study abroad • Print Media • Online • Online – HotCourses India/ IDP • Google – Studyportals • Pagalguy – Masterstudies • HTcampus – Top mba / Top universities • Minglebox (QS) • Careers360 – Collegeboard • MBA Universe – Yocket • CollegeDekho – Multiple Emerging start- • Colleg
Slide 57: Shiksha quarterly financials
Shiksha quarterly financials Shiksha Quarterly Revenue (Rs cr) and EBITDA (Rs cr) 16.0 14 14.0 12.0 12 11 11 11 10 10 10.0 9 9 8.0 43% 7 7 7 6 6 6 6 6 6 6.0 4 5 32% 39% 20% 20% 4.0 26% 10% 12% 11% 3 7% 2.0 7% 3% 1 2 - 0 1 (1) 0 (0) (1) (1) 1 1 0 (2) (2.0) (2) (2) (1) (3) (2) (4.0) (4) (6.0) Q1FY17*
Slide 58: Investee companies
intoedge Investee companies
Slide 59: Portfolio status
Portfolio status As of Mar 31, 2018 Book Value of % Holding on fully Investee Company Website Investment (Rs cr) diluted basis Active Zomato Media Pvt Ltd. www.zomato.com *156 *31% Applect Learning Systems Pvt Ltd. www.meritnation.com **135 66% Etechaces Marketing and Consulting Pvt Ltd. www.policyb
Slide 60: Investee companies financials
Investee companies financials Rs. Crore Investee Company Operating revenue Operating EBITDA FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Partly owned subsidiary Meritnation 10 20 22 29 36 31 (21) (29) (23) (42) (23) (13) Canvera 30 44 54 56 49 42 (21) (33) (22) (33) (27) (25) Associat
Slide 61: Zomato
Zomato © 2017 - Zomato Media Pvt. Ltd, and/or its subsidiaries. This material is confidential unless otherwise stated in writing 61
Slide 62: Zomato
Zomato • Zomato is the largest restaurant search & discovery platform globally with presence in 24 countries – Food ordering service is available in India, UAE and Lebanon and is growing strongly • Unique tech enabled, low cost feet-on-street model ensures exhaustive listings in a particular city an
Slide 63: Rich content ensures that users are able to discover restaurants of their choice
Rich content ensures that users are able to discover restaurants of their choice 63
Slide 64: Highly interactive platform ensures high user and restaurant engagement
Highly interactive platform ensures high user and restaurant engagement Bookmark Social Reviews Photos Menus Customized Advanced Feed & Ratings Collections Search Retrieval of Latest Description High Comprehen Trend-based, Multi- favorite updates and rating of quality sive and curated group dimensio
Slide 65: Food ordering at the click of a button helps users order-in with ease
Food ordering at the click of a button helps users order-in with ease Pick your preferred Track your order payment method, status with real- Select your favorite and your food is on time notifications Choose from a list of dishes & beverages its way delivery restaurants nearby 65
Slide 66: Table Reservations platform ensures users never have to wait again
Table Reservations platform ensures users never have to wait again Get a confirmation message and your Enter your details booking is done Select date, time Pick your favorite place to and no. of guests dine out 66
Slide 67: PolicyBazaar
infoedge PolicyBazaar policy Lifetnsrance + Healthinsurance + Motorinsrance » OtherInsrance » Support + Yt & Y & Term Life Insurance Health Insurance Two Wheeler Travel Insurance Car Insurance Tax Saving x ‘ m «2 Q Child Plans Investment Retirement Plans Cancer Protection Critical llness Home Insura
Slide 68: PolicyBazaar
PolicyBazaar • PolicyBazaar is India’s online price comparison site for insurance – Significant value add to individuals and Financial Institutions for policy related decision-making • A leader in its category – Captures an estimated 90% share of insurance comparison & 50% of online Insurance transa
Slide 69: Meritnation
Meritnation Wa ae Entrance Exams ClassXil -ClassXi_ «= ClassX = Class IX Class Vill ONLINE Live classes with the best teachers _BATRANCE ELMS EXAMS Online Tuitions Class Vil Class VI FREE NCERT Solutions Class V ClassIV Class ill Join now for FREE 1,12,80,347 Class I infoedge Class |
Slide 70: Meritnation
Meritnation • Supplementary online learning platform for K12 and Entrance Exams – Proprietary content – Freemium model – Direct to consumer • Provides free solutions mainly for – mathematics and science for K12 of popular national Indian curriculum’s viz. CBSE and ICSE and some State Boards – free s
Slide 71: Happily Unmarried
intoedge Happily Unmarried USTRAA GROOMING FOR MEN 71
Slide 72: Happily Unmarried
Happily Unmarried • Grooming range for men “Ustraa” • Focus on online sales • Have introduced a women’s range under brand name ‘Happily Unmarried’ • Received funding from Wipro Consumer 72
Slide 73: Team
intoedge Team
Slide 74: Management Team
Management Team Name Age Qualifications Designation/ Role Previously worked with Year of joining Sanjeev Bikhchandani 54 BA Economics St. Stephens, PGDM IIM-A Founder and Executive Vice Chairman Lintas, Glaxo Smith Kline 1995 Hitesh Oberoi 45 B Tech, IIT Delhi, PGDM, IIM-B Managing Director and CEO
Slide 75: Management Team
Management Team Name Age Qualifications Designation/ Role Previously worked with Year of joining Maneesh Upadhyaya 39 B Sc, MBA, FMS, Delhi University Business Head – 99acres Bain & Co. 2010 Executive Vice President - Product Amit Kumar Singh 41 Btech - IIT Kanpur, PGDBM - IIM Calcutta Development A
Slide 76: Banks/ brokerages that cover us
Banks/ brokerages that cover us Firm Analyst Phone Number E-mail Ambit Vivekanand Subbaraman +91.22.3043 3261 [email protected] Axis Capital Sahil Desai +91.22.4325 1121 [email protected] B&K Securities Sushil Sharma +91.22.4031 7117 [email protected] BAML Sachin Salgaonkar +91 22 663
Slide 77: Investor relations contacts
Investor relations contacts Name Chintan Thakkar Vivek Aggarwal Prince Poddar Designation CFO SVP – Finance Investor Relations e mail [email protected] [email protected] [email protected] Telephone +91 120 3082137 +91 120 3082007 +91 120 3082091 Fax +91 120 3082095 Address In
Slide 78: Annexures
intoedge Annexures 78
Slide 79: Naukri has dominant traffic share
Naukri has dominant traffic share Traffic from desktops and laptops based on time spent – excluding indeed 80% 70% 60% 50% 40% 30% 20% 10% 0% Naukri Monster India Timesjob Shine Source: SimilarWeb Above chart excludes Linkedin since much of the traffic may not pertain to jobs 79
Slide 80: Naukri has dominant traffic share
Naukri has dominant traffic share Traffic from mobile web based on time spent – excluding indeed 80% 70% 60% 50% 40% 30% 20% 10% 0% Naukri Monster India Timesjob Shine Source: SimilarWeb Above chart excludes Linkedin since much of the traffic may not pertain to jobs * ~70% of Naukri’s traffic comes
Slide 81: Naukri has dominant traffic share
Naukri has dominant traffic share Android App traffic share based on time spent – excluding indeed 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Naukri TimesJobs Shine Monster Source: SimilarWeb Above chart excludes Linkedin since much of the traffic may not pertain to jobs * ~70% of Naukri’s traffic
Slide 82: Naukri’s traffic share
Naukri’s traffic share Naukri’s Desktop and Laptops traffic based on time spent – including Indeed 80% 70% 60% 50% 40% 30% 20% 10% 0% Naukri Monster India Timesjob Shine Indeed Source: SimilarWeb Above chart excludes Linkedin since much of the traffic may not pertain to jobs 82
Slide 83: Naukri’s traffic share
Naukri’s traffic share Naukri’s mobile web traffic based on time spent – including Indeed 60% 50% 40% 30% 20% 10% 0% Naukri Monster India Timesjob Shine Indeed Source: SimilarWeb Above chart excludes Linkedin since much of the traffic may not pertain to jobs 83
Slide 84: Naukri’s traffic share
Naukri’s traffic share Naukri’s Android App traffic based on time spent – including Indeed 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Naukri TimesJobs Shine Monster Indeed Source: SimilarWeb Above chart excludes Linkedin since much of the traffic may not pertain to jobs 84
Slide 85: Time share of 99acres vs. competitors
Time share of 99acres vs. competitors Traffic from desktops and laptops based on time spent 60% 50% 40% 30% 20% 10% 0% 99acres Magicbricks Commonfloor Housing Source: SimilarWeb 85
Slide 86: Time share of 99acres vs. competitors
Time share of 99acres vs. competitors Traffic from mobile web based on time spent 60% 50% 40% 30% 20% 10% 0% 99acres Magicbricks Commonfloor Housing Source: SimilarWeb * About 75% of 99acres’ traffic comes from Android / iOS apps and mobile site 86
Slide 87: Time share of 99acres vs. competitors
Time share of 99acres vs. competitors Android app traffic based on time spent 60% 50% 40% 30% 20% 10% 0% 99acres Magicbricks Commonfloor Housing Source: SimilarWeb * About 75% of 99acres’ traffic comes from Android / iOS apps and mobile site 87