Info Edge India Ltd. · NSE:NAUKRI
Info Edge India — Investor Presentation (May 2014)
56 slides from Info Edge India's investor presentation, May 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 ~ 2176* Sales/ client facing staff or 72% 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 3% 6% Cash & Liquid Investments 10% Other Investments 48% 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 – 2014) 6000 50% India’s leading online company with – Strong brands 43.63% 45% – Growing businesses 5000 39.14% 40.09% 38.65% – Experienced management t
Slide 15: 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 16: Internal business drivers and updates
This image cannot currently be display ed. Internal business drivers and updates Share of internet in recruitment spend continues to grow Garnering higher market share in this slowdown Specific product innovations to combat the threat of Linkedin.com – Recruiter Profile Naukri launched. Referral hir
Slide 17: 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 17
Slide 18: Internet in India
This image cannot currently be display ed. Internet in India 18
Slide 19: Rapidly growing internet user base
This image cannot currently be display ed. Rapidly growing internet user base About 200 million internet users as of Oct, 2013 – Internet users grew at a CAGR of 32% between 2000-2012 – Access through mobile and wireless increasing rapidly Source : www.iamai.in 19
Slide 20: Penetration of broadband increasing
This image cannot currently be display ed. Penetration of broadband increasing Source : TRAI annual report 2012-13 Narrowband defined as speeds < 256 kbps and Broadband defined as speeds > 256 kbps Multiple internet users may access the internet through a single broadband connection Source :TRAI Ann
Slide 21: 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 22: 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 23: In house businesses
This image cannot currently be display ed. In house businesses 23
Slide 24: Naukri
This image cannot currently be display ed. Naukri Job Panels Seeker Services Resume Banner Ad Database Job Listings Source: http://www.naukri.com/ 24
Slide 25: 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 26: 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 22% of the total traffic through mobile (not captured in the above data which is
Slide 27: Hiring growth rate expected to improve
This image cannot currently be display ed. Hiring growth rate expected to improve Naukri Job Speak Index Naukri hiring survey 80% 68% 70% 62% 64% 60% 48% 53% 54% 50% 45% 40% 30% 30% 20% 10% 5% 5% 5% 3% 0% Layoffs will happen Replacement hiring New jobs will be will happen created Jul-12 Jan-13 Jul-1
Slide 28: 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 35 140 120 30 100 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 29: 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 Focus on jobs in the Middle-East market Used by job seekers from various nationalities Large addressable market currently using print medium Supported by off
Slide 30: 99acres
This image cannot currently be display ed. 99acres Banner Ad Banner Ad Panels Source: http://www.99acres.com/ 30
Slide 31: 99acres: Overview
This image cannot currently be display ed. 99acres : Overview Favorable macroeconomics for the housing market: – Large market – Increase in middle income/high income households, Opportunities Opportunities & Market Market Current Potential Potential increasing urbanization, availability of finance H
Slide 32: 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 33: 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 34: 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 35: Jeevansathi
This image cannot currently be display ed. Jeevansathi Search JS Home JS Membership Page Options page Source: http://www.jeevansathi.com/ 35
Slide 36: 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 37: Shiksha
This image cannot currently be display ed. Shiksha Space for education providers Banner Ad User generated content Source: http://www.shiksha.com/ 37
Slide 38: 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 39: 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 40: Company Financials (Standalone)
This image cannot currently be display ed. Company Financials (Standalone) 40
Slide 41: 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 432 5000 985 465 2000 1339 395 4000 714 1500 511 279 369 320 3000 2122 1939 1000 1817 1690 3719 2000 569 1474 3387 1423 1325 3056 1315 1260
Slide 42: Steady growth momentum in Q4 FY14
This image cannot currently be display ed. Steady growth momentum; reasonable YoY revenue growth in Q4 FY14 in a slow growth economy Quarterly Operating Revenue Quarterly Operating trend last 5 years Profitability INR Million INR Million 1600 500 1400 450 400 1200 350 1000 300 800 250 200 600 150 40
Slide 43: Recruitment: Profitability has been steady in the slowdown
This image cannot currently be display ed. Recruitment: Profitability has been steady in the slowdown 1200 60% Highlights 1000 50% Growth in recruitment revenue for Quarterly recruitment revnues (INR M) last 12 quarters. 800 40% Slowdown in GDP in FY13 has impacted recruitment EBITDA margin (%) grow
Slide 44: Improving financial performance of Non Recruitment businesses
This image Improving financial performance cannot currently be display ed. of Non Recruitment businesses INR M 500 400 300 200 100 0 -100 -200 Revenue (INR M) EBITDA (INR M) 44
Slide 45: Investee Companies
This image cannot currently be display ed. Investee Companies 45
Slide 46: Investee companies - amount invested and status
This image cannot currently be display ed. Investee companies – amount invested and status INR Million Total Approx. diluted amount and converted Investee Company Website invested shareholding % % of Total Active Zomato Media Pvt Ltd. www.zomato.com 1430 50% 38% Applect Learning Systems Pvt Ltd. www
Slide 47: Zomato.com
This image cannot currently be display ed. Zomato.com Zomato Website operational Experienced team – Restaurant menu’s, ratings and reviews – Coverage of 14 Indian cities Large addressable market – Coverage of 27 cities in 11 countries – Revenues from advertising and lead sales Over 3 million mobile
Slide 48: 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 49: 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 50: 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 powering deals on mobile Invested INR
Slide 51: 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 52: 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 52
Slide 53: Shareholding and Board
This image cannot currently be display ed. Shareholding and Board 53
Slide 54: Over 50% shareholding with founding management group, ~29% with FIIs
This image > 50% share-holding with the Founding management cannot currently be display ed. group and ~29% with FIIs Individuals and others, 9.26% ESoP Trust, 0.09% Mutual Funds and Banks, 10.87% Wholetime Directors & their entities, 50.45% Bodies Corporate, 0.27% Foreign Institutional Investors, 29
Slide 55: 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 (68) Arun Duggal (67) Independent Director Independent Director Founder and Executive Vice Chairman & Non Executive B.Tech IIT Kanpur, B.T
Slide 56: Investor Relations Contacts
This image cannot currently be display ed. Investor Relations Contacts Name Chintan Thakkar Sudhir Bhargava Designation CFO – Designate EVP - Corporate Finance e mail [email protected] [email protected] Telephone +91 120 3082137 +91 120 3082006 Fax +91 120 3082095 Info Edge (India)