Corporate Presentation Feb07

8/8/2019 Corporate Presentation Feb07

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Key takeaways

Rapid growth in Indian internet market

Clear and sustainable market leadership inonline classifieds

Strong innovation pipeline for continuousdifferentiation

Robust financials with blue chip investors

Management depth for continued growth


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Three lines of business

Info Edge

Recruitment

Launched in March 1997.Contributes more than 85% ofcompany sales

No. 1 job portal in India

more than 50% page viewshare among top 3 sites

Over 8 mm resumes with10,000 added daily, 82,000

job listings, 22,000 clients.

Quadrangle in offline

recruitment services

Matrimonials

Acquired in September 2004

No. 3 matrimony website inIndia

1.3 mm registrations

Av. 2,300 profiles added daily

Real Estate

Launched in Sept 2005

Leader in emerging onlinemarket

Over 42,000 listings

Pan India listings covering23 cities


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Addressable market growing

Internet and PC population

Opportunity in platforms other than the PC

Source: NASSCOM

Mobile users

Source: Cris Infac

0

10,000

20,000

30,000

40,000

50,000

60,000

2001 2002 2003 2004 2005

(in

'000

)

Internet user PC Population

0

20

40

60

80

100

120

140

160

Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Dec-06

MobileSubscriber

s(Million)

Mobile Subcriber Base


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Company overview VC investment from ICICI Venture, Kleiner

Perkins and Sherpalo 45 offices in 31 cities in India + 1 in Dubai

1100 employees (over 700 in sales)

Financials (9 months ended Dec 06) Revenue (71% YOY growth) - USD 22.0 mm

Net Profit - USD 3.8 mm

Listed in India in November 2006


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Recruitment classifieds and

services


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Recruitment market

Naukri is the hub

Others

Over 330

universities and

17,600 colleges

Over 3 mm

graduates everyyear

Over 120,000 ITprofessionals every

year

Over 1 mm

employed by IT &ITES

35 cities > 1 mmpopulation

High attrition ratesin the IT services

sector rangebetween 25-40%

Print

Recruitmentconsultants

Online

Other

Recruitment solutions

Source: Nasscom, Department of Higher Education

7


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Job Search

6%

14%15%

19%

37%

50%53%

86%

0%

20%

40%

60%

80%

100%

Emailing

JobSearch

Info.Search

InstatntMessa

ging

Seminar

/

Workshops

Info

Marketing

BusinessTr

avel

Info. O

ther

Job Search is the second most popular professional activity of Internet

Users

Source : Juxtconsult India Report May 2006, Population surveyed 17,275


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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


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Revenue ModelBannerAd

Panels

Job

SeekerServices

Mobile

Revenues


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Revenue Model

Featured

Company

BannerAd

Google Ad

Sense

Job Listings


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BannerAd

RESDEX


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Strategy strengthen virtuous circle

o Hire and retainquality talent

o Product andtechnology

innovation

o Superior sales andservice

execution

o Build the brand

Naukri.com benefiting from a virtuous cycle

Weve got the

most jobs

So we getthe mostresponse

So we getthe mostclients

So we getthe most

traffic

Imperatives


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Competition has resulted in marketexpansion

Online Monsterindia and Jobsahead Timesjobs from Times of India, Indias 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


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Naukrigulf.com

Launched in 2006

Nascent business but site getting traction

Competition Bayt.com, Monstergulf,

Timesjobs


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Matrimonial classifieds &

services


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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


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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 andsuperior product experience


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Competition Online

Shaadi, Bharatmatrimony, Simplymarry

Print classifieds

Times of India, Hindustan Times, others Marriage Bureaus and pundits

Community focussed, fragmented,

unorganized, geographically constrained


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Real estate classifieds


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Surge in demand for real estate

Market characteristics

3

46

131

11

124

96

Rich; >US$4,675pa Strivers;


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Revenue streams

Most revenue from developers, builders

and brokers

Site has traction for residential, primary,

sale and purchase Revenue from

Property listings - 42,000 listings

Builders/Brokers Branding & Visibility Microsites, home page links, banners

Others Buyer database access


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BannerAds

Buyer

Database

Panels


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BannerAds

BannerAds

Featured

Gallery

SponsoredProperties

Google

Adsense

Property

Listings


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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


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Management


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Financials


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Financial performance

4.5

10.3

18.822

0

5

10

15

20

25

USDM

M

FY2004 FY2005 FY2006 FY2007 (9

mnths)

Revenues


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Financial performance

3.83.1

2.1

0.6

20.8%

12.5%

16.7% 17.0%

0

0.5

1

1.52

2.5

3

3.5

4

FY2004 FY2005 FY2006 FY2007 (9

mnths)

USD

MM

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Net Profit Net Profit Margin

6.5

5.6

3.2

1.1

31.0%

23.9%

29.7%28.8%

0

1

2

3

4

5

6

7

FY2004 FY2005 FY2006 FY2007 (9

mnths)

USD

MM

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

EBITDA EBITDA Margin

Net Profit EBITDA


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Robust financials Strong topline & bottomline growth

Consistent track record of profitability

High operating leverage

Strong cash flows


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Commitment to innovation Market segment innovation

Customer driven product innovation

Technology innovation


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February, 2007

Corporate Presentation Feb07

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Transcript of Corporate Presentation Feb07