PDF

May, 2007 1
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 number of risks, and uncertainties that could cause actual results to differ materially from
those in such forward-looking statements. The risks and uncertainties relating to these statements
include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability
to manage growth, intense competition in the businesses we operate in including those factors
which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled
professionals, client concentration, disruptions in telecommunication networks, liability for
damages on any of our contracts/ subscriptions, withdrawal of governmental fiscal incentives,
political instability, unauthorized use of our intellectual property and general economic conditions
affecting our industry. The Company does not undertake to update any forward-looking statement
that may be made from time to time by or on behalf of the company.
The equity shares of the company are regulated by the laws of India. Please refer to the
applicable laws of your jurisdictions before dealing in equity shares of the company.
“The equity shares of the company have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the
“Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered,
sold, pledged or otherwise transferred except (1) in accordance with Rule 144A under the Securities Act to a person that the holder and
any person acting on its behalf reasonably believes is a Qualified Institutional Buyer within the meaning of Rule 144A purchasing for its
own account or for the account of a Qualified Institutional Buyer in a transaction meeting the requirements of Rrule 144A, (2) in an
offshore transaction in accordance with Rule 903 or Rule 904 of regulations under the Securities Act, 3) pursuant to an exemption from
registration under the Securities Act provided by Rule 144 thereunder (if available) or (4) pursuant to an effective registration statement
under the Securities Act, in each case in accordance with any applicable securities laws of the states of the United States. No
representation can be made as to the availability of the exemption provided by Rule 144 under the Securities Act for resales of these
equity shares.”
All figures mentioned are as on March 31, 2007 or for the financial year ended March 31, 2007 unless indicated otherwise.
2
Key takeaways
• Rapid growth in Indian internet market
• Clear and sustainable market leadership in
online classifieds
• Strong innovation pipeline for continuous
differentiation
• Robust financials with blue chip investors
• Management depth for continued growth
3
Three lines of business
Info Edge
Recruitment
Launched in March 1997.
Contributes more than 85% of
company sales
No. 1 job portal in India –
more than 50% page view
share among top 3 sites
Over 9 mm resumes with
10,000 added daily, 82,000
job listings, 27,500 clients.
Quadrangle in offline
recruitment services
Matrimonials
Real Estate
Acquired in September 2004
No. 3 matrimony website in
Launched in Sept 2005
Leader in emerging online
India
1.48 mm registrations
Av. 2,300 profiles added daily
market
Over 60,000 listings
Pan India listings covering
23 cities
4
Business environment
Macro Trends
Sustainable
Economic Growth
Outcomes
Beneficiaries
Strong Job Creation
Rapid Urbanization
Burgeoning
Middle Class
Buying Power
Favorable
Demographics
(54% < 25 years)
Mobile work force,
nuclear families
Changing values
and lifestyles
Adoption of
Technology
Source: Census 2001
5
Addressable market growing
Internet and PC population
Mobile users
160
60,000
Mobile Subscribers (Million)
140
50,000
(in '000)
40,000
30,000
20,000
10,000
0
120
100
80
60
40
20
0
2001
2002
2003
Internet user
Source: NASSCOM
2004
PC Population
2005
Mar-02
Mar-03
Mar-04
Mar-05
Mar-06
Dec-06
Mobile Subcriber Base
Source: Cris Infac
Opportunity in platforms other than the PC
6
Company overview
• VC investment from ICICI Venture, Kleiner
Perkins and Sherpalo
• 48 offices in 31 cities in India + 1 in Dubai
• 1200 employees (over 750 in sales)
• Financials (Year ended March 31, 2007)
– Revenue (69% YOY growth)
– Net Profit
- USD 35.0 mm
- USD 6.4 mm
• Listed in India in November 2006
7
Recruitment classifieds and
services
Recruitment market
Over 330
universities and
17,600 colleges
Recruitment solutions
Over 3 mm
graduates every
year
Over 120,000 IT
professionals every
year
Over 1 mm
employed by IT &
ITES
High attrition rates
in the IT services
sector range
between 25-40%
Print
Recruitment
consultants
Online
Other
35 cities > 1 mm
population
Others
Source: Nasscom, Department of Higher Education
Naukri is the hub
7
9
Job Search
100%
86%
80%
60%
53%
50%
37%
40%
19%
20%
15%
14%
Other
Info.
Business Travel
Marketing
Workshops Info
Seminar /
Instatnt Messaging
Info. Search
Job Search
0%
Emailing
6%
Source : Juxtconsult India Report May 2006, Population surveyed – 17,275
Job Search is the second most popular professional activity of Internet
Users
10
Revenue streams
• Major
– Job listing and Employer Branding / Visibility
– Resume Database Access
• Others
–
–
–
–
–
Job Seeker services
Advertising other than for jobs
Mobile revenues
Resume short listing and screening
Google Ad Sense
11
Revenue Model
Banner
Ad
Panels
Job
Seeker
Services
Mobile
Revenues
12
Revenue Model
Job Listings
Banner
Ad
Featured
Company
Google Ad
Sense
13
Banner
Ad
RESDEX
14
Strategy – strengthen virtuous circle
Naukri.com benefiting from a virtuous cycle
So we get
the most
clients
We’ve got the
most jobs
So we get
the most
response
Imperatives
o Hire and retain
quality talent
o Product and
technology
innovation
o Superior sales and
service
execution
o Build the brand
So we get
the most
traffic
15
Intense competition has resulted in
market expansion
• Online
– Monsterindia and Jobsahead
– Timesjobs – from Times of India, India’s leading
newspaper group
– Others – Jobstreet, Dice, Clickjobs, Ndtvjobs
• Print
– Times of India, Hindu, others
• Recruitment consultants and search firms
– Highly fragmented industry
– Many are our clients
16
Naukrigulf.com
•
•
•
•
Launched in July 2006
Site getting traction & clients
Low revenue currently but potential high
Gulf market attractive – may increase
presence/ investment
• Competition – Bayt.com, Monstergulf,
Timesjobs
17
Matrimonial classifieds &
services
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
and communities
• Important to segment the market and focus
19
20
Revenue model
•
•
•
•
Free to list
Free to search
Free to express interest
Free to accept others expression of
interest
• Pay to get contact details
21
Key metrics
•
•
•
•
•
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
22
Competition
• Online
– Shaadi, Bharatmatrimony, Simplymarry
• Print classifieds
– Times of India, Hindustan Times, others
• Marriage Bureaus and pundits
– Community focussed, fragmented,
unorganized, geographically constrained
23
Real estate classifieds
Surge in demand for real estate
Market characteristics
181 mm Hhlds
3
Reasons for boom
231 mm Hhlds
11
• Home ownership
valued in India
• Increasing incomes
46
124
• Growing middle class
131
96
2003
Strivers;<US$975pa
2013
Aspirers; US$975–4,675 pa
Source: Registrar General of India; RBI, NCAER.
Rich; >US$4,675pa
• Nuclear families
• Urbanization
• Easy home finance
• Supply creation with
aggressive marketing
25
Revenue streams
• Most revenue from developers, builders
and brokers
• Site has traction for residential, primary,
sale and purchase
• Revenue from
– Property listings - 60,000 listings
– Builders/Brokers Branding & Visibility –
Microsites, home page links, banners
– Others – Buyer database access
26
Banner
Ads
Panels
Buyer
Database
27
Property
Listings
Banner
Ads
Banner
Ads
Featured
Gallery
Sponsored
Properties
Google
Adsense
28
Competition
• Online
– Magicbricks, Indiaproperty
• Print
– Times of India, Hindustan Times, Hindu, others
• Other mass media – TV, radio, outdoor
• Real Estate Brokers
– Large population, highly fragmented, no license
requirements, deregulated,
– Many are our clients
29
Management
Qualified and experienced management team
Board of Directors
Kapil
KapilKapoor
Kapoor(41)
(41)
Chairman
Chairman&&Non-Executive
Non-ExecutiveDirector
Director
Sanjeev
SanjeevBikhchandani
Bikhchandani(43)
(43)
B.A.Econ,
B.A.Econ,PGDM
PGDMIIM-A
IIM-A
MD
Timex
MD TimexWatches
Watches
B.Tech
B.TechIITD,
IITD,PGDM
PGDMIIM-A
IIM-A
Previously
Previouslywith
withBank
BankofofAmerica
America&&HCL
HCL
Technologies
Technologies
Ashish
AshishGupta
Gupta(40)
(40)
Saurabh
SaurabhSrivastava
Srivastava(61)
(61)
B.Tech
B.TechIIT
IITKanpur,
Kanpur,Ph.D.
Ph.D.Stanford
StanfordUniv.
Univ.
Partner,
Helion
Venture
Partner, Helion VenturePartners
Partners
B.Tech
B.TechIIT
IITKanpur,
Kanpur,M.Sc
M.ScHarvard
HarvardUniv.
Univ.
Founder
FounderIIS
IISInfotech
Infotech(Now
(NowXansa),
Xansa),
NASSCOM,
NASSCOM,TiE
TiE
Sandeep
SandeepMurthy
Murthy(30)
(30)
Bala
BalaDeshpande
Deshpande(41)
(41)
Managing
ManagingDirector
Directorand
andCEO
CEO
BA
BAEcon.
Econ.St.
St.Stephen’s.
Stephen’s.PGDM
PGDMIIM-A
IIM-A
Previously
with
Glaxo
SmithKline
Previously with Glaxo SmithKline
Non-Executive
Non-ExecutiveDirector
Director
Ambarish
AmbarishRaghuvanshi
Raghuvanshi(45)
(45)
Whole
WholeTime
TimeDirector
Directorand
andChief
Chief
Financial
Officer
Financial Officer
CA,
CA,PGDBM
PGDBMXLRI
XLRI
Previously
with
Bank
Previously with BankofofAmerica
America&&HSBC
HSBC
Hitesh
HiteshOberoi
Oberoi(34)
(34)
Whole
WholeTime
TimeDirector
Directorand
andChief
Chief
Operating
Officer
Operating Officer
B.Tech
B.TechIIT
IITDelhi,
Delhi,PGDM
PGDMIIM-B
IIM-B
Previously
Previouslywith
withHLL
HLL(Unilever)
(Unilever)
Arun
ArunDuggal
Duggal(60)
(60)
Non-Executive
Non-ExecutiveDirector
Director
Non-Executive
Non-ExecutiveDirector
Director
M.B.A.
M.B.A.Wharton
WhartonSchool
School
Nominee
NomineeKPCB
KPCBand
andSherpalo
Sherpalo
Non-Executive
Non-ExecutiveDirector
Director
Non-Executive
Non-ExecutiveDirector
Director
MA
MAEcon.,MMS
Econ.,MMSJBIMS
JBIMS
Nominee
NomineeICICI
ICICIVentures
Ventures
Key Management
Vivek
VivekKhare
Khare(36)
(36)
Vineet
VineetSingh
Singh(35)
(35)
Sudhir
SudhirBhargava
Bhargava(37)
(37)
Vibhore
VibhoreSharma
Sharma(32)
(32)
B.E,
B.E,MBA
MBA(FMS)
(FMS)
Previously
Previouslywith
withHSBC,
HSBC,ICICI
ICICIBank
Bank
B.Sc
B.ScIGNOU
IGNOU
Previously
Previouslywith
withPioneer
Pioneer
M.Sc
M.Sc(Physics),
(Physics),IIT
IITKanpur.
Kanpur.PGDBA,
PGDBA,
Birla
BirlaInstitute
InstituteofofManagement
Management
technology
technology
V.Suresh
V.Suresh(35)
(35)
Harveen
HarveenBedi
Bedi(35)
(35)
Sharmeen
SharmeenKhalid
Khalid(35)
(35)
B.E.(Instr.
B.E.(Instr.and
andControl).
Control).Masters
MastersininMgmt,
Mgmt,
Sathya
SathyaSai
SaiInstitute
InstituteofofManagement.
Management.
Previously
Previouslywith
withXerox
Xerox
MBA,
MBA,Birla
BirlaInstitute
InstituteofofManagement
Management
Technology
Technology
Previously
Previouslywith
withNestle
Nestle
MBA,
MBA,IRMA
IRMA
Previously
Previouslywith
withPolaris
Polaris
Sr.
Sr.VP,
VP,Corporate
CorporateFinance
Finance
Deepali
DeepaliSingh
Singh(33)
(33)
Head
Head99acres.com
99acres.com
Bachelor
BachelorofofScience,
Science,Law
LawDegree,
Degree,
Delhi
DelhiUniversity.
University.MBA,
MBA,IPM.
IPM.
Previously
Previouslywith
withAptech
Aptech
Sr.
Sr.VP,
VP,Technology
Technology
Sr.
Sr.V.P.,
V.P.,Sales
Sales––South
South&&West
WestIndia,
India,
Sr.
Sr.VP,
VP,Jeevansaathi.com
Jeevansaathi.com
Head
HeadQuadrangle
Quadrangle
Sr.
Sr.V.P.
V.P.for
forDomestic
Domestic(North,
(North,East
East
&&West)
and
International
West) and InternationalSales
Sales
PGDBA,
PGDBA,IPM.
IPM.
Previously
Previouslywith
withXerox
Xerox
V.P,
V.P,HR
HR
31
Financials
Financial performance
Revenues
40.0
35.0
30.0
USD mm
25.0
20.0
35.0
15.0
18.8
10.0
10.3
5.0
4.5
0.0
FY2004
Exchange rate as of that year
FY2005
FY2006
FY2007
33
Financial performance
Net Profit
EBITDA
7.0
16.7%
6.0
20.0%
30.0%
31.0%
25.0%
8
15.0%
4.0
6.4
12.5%
10.0%
30.0%
10
20.8%
3.0
35.0%
29.7%
18.3%
USD MM
USD M M
5.0
23.9%
20.0%
6
10.5
4
2.0
3.1
1.0
0.0
12
25.0%
0.0%
FY2005
Net Profit
5.6
2
0.6
FY2004
10.0%
5.0%
2.1
FY2006
Net Profit Margin
Exchange rate as of that year
FY2007
15.0%
3.2
5.0%
1.1
0.0%
0
FY2004
FY2005
EBITDA
FY2006
FY2007
EBITDA Margin
34
Balance sheet
(as on March 31, 2007)
Liabilities
Assets
Share capital
8%
0%
Net block + CWIP
1%
10%
4%
ESOP o/s amount
4%
Investments
15%
17%
Reserves and
surplus
Cash and bank
balance
Secured loans
0%
0%
Deferred tax liability
65%
Deferred sales
revenue
other current
assets
76%
Other current
liabilities+provisions
Advance
recoverable from
ESOP Trust
Balance sheet size as of 31.3.2007 USD 67.5 mm (1 USD = Rs 42)
35
Shareholding pattern
(as on March 31, 2007)
Individuals,
21.18%
Bodies
Corporate,
1.45%
Promoters,
54.60%
Foreign Inst
investors,
19.36%
Mutual
Funds,
3.41%
FID Funds
4.18%
Carlson Fund
2.36%
Reliance Capital
2.14%
Citigroup Global Markets
1.87%
Matthews
1.75%
Sandstone
1.42%
Merrill Lynch
1.36%
Total issued and paid up shares of Rs 10 each were 27.29 mm as on 31.3.07
36
Robust financials
•
•
•
•
Strong topline & bottomline growth
Consistent track record of profitability
High operating leverage
Strong cash flows
37
Commitment to innovation
• Market segment innovation
• Customer driven product innovation
• Technology innovation
38
Key takeaways
• Rapid growth in Indian internet market
• Clear and sustainable market leadership in
online classifieds
• Strong innovation pipeline for continuous
differentiation
• Robust financials with blue chip investors
• Management depth for continued growth
39
May, 2007 40