Company Presentation September 2014 1 Untapped User Base Market - - PowerPoint PPT Presentation

Company Presentation

September 2014

1

Untapped User Base – Market Potential

India: One of the Largest Consumer Economies

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17.5 16.8 14.6 5.4 4.8 2.6 6 12 18

USA EU China India Japan Russia India : 4th Largest Economy Globally

GDP at Purchasing Power Parity in 2014

India: 2nd Fastest Economic Growth

GDP Growth Estimate (2014, %) US$ Tn

India is expected to become the world’s fifth largest consumer market by 2025

Source: The World Bank data, World Economic Outlook –International Monetary Fund, 2014

7.4 5.6 2.2

0.3 0.2

• 0.4
• 1

1 3 5 7 9

China India United States Brazil Russia European Union

India: One of the Largest Consumer Economies

4 Source: www.internetworldstats.com/stats.htm

India: 2nd Largest Wireless Market Globally

Million Wireless Subscribers(1) 1246 893 345 273 237 300 600 900 1,200 China India USA Brazil Russia

Low Internet Penetration Presents Further Upside

Internet Penetration (%), As on June 30, 2014

85 48 46 46 39 32 16 20 40 60 80 100 USA Russia Brazil China World Asia India 245 68 88 538 2,406 1,077

• No. of

Internet Users (Million) 137

Current status of Mobile Internet usage in India

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76 21 14 38 10 41

2010 2015

Mobiles only PC & Mobile PC

11 23 56 88 173 266

2011 2012 2013 2014 2015 2016

Source: McKinsey Report | Avendus Report

3G Subscriptions in India (Mn) Share of Internet Use in India (%)

Business Overview

Company Overview

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Notes

• 1. Based on FY14 average
• 2. As on 30 September, 2014

India’s only Search Plus engine (Search & Transact) Multi platform search engine High rates of direct, mobile and repeat traffic 296,100 active paid campaigns(2) 45MM reviews and ratings(2) 94MM searches per month (1) 14.5MM total business listings(2) Profitable business model

Justdial Everywhere: Connecting With Users Anytime, Anywhere

PC Internet Mobile Internet Voice/SMS

User friendly features – Predictive auto-suggest – Maps, directions, operating hours, logos, pictures, videos – Ratings and reviews Search by company or category or product Popular category searches Location-based search service Developed Android, iOS, Windows & WP7 apps 08888888888 Operator assisted Hotline number across India 24 hours a day, 7 days a week Multi-lingual support Company/ category/product searches 8

User Community and Reviews Drive Engagement

Reviews and Ratings

Millions 2.7 14.5 19.8 22.4 26.5 30.3 33.7 45.1 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 'Jun- 11 'Jul-12 'Dec- 12 'Mar- 13 'Jun- 13 'Sep- 13 'Dec- 13 'Mar- 14 'Jun- 14 'Sep- 14

37.1

9 41.3

Attractive Value Proposition for Local SMEs

Paid Campaigns*

‘000

4.5 5.8 7.2 9.1 11.8 14.1 14.5

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0

FY10 FY11 FY12 FY13 FY14 Q1FY15 Q2FY15

Total Business Listings*

Million 10

62 120 171 206 262 278 296

50 100 150 200 250 300 350

FY10 FY11 FY12 FY13 FY14 Q1FY15 Q2FY15

Multiple Strategies for Growth

Grow SME Base Broaden Geographic Reach Across India Enhance User Experience Further Strengthen Brand Develop New Products & Services

Total: 44.8 Million SMEs(1)

Doctor’s Appointment

• 1. Ministry of Small and Medium Enterprises Annual Report 2013

11 Order Food Order Groceries

Engagement Driven Through Innovative Mobile Applications

Justdial –Smart Phone Application With A Unique Social Interface

Tag Friends Search & Transact Rate & Review

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Search Plus – A natural extension of our core search business

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Leveraging The Three Cornerstones of Our Success to Do More

Enabling Best Way to Discover Information About Each Other Trusted Strong Brand Established Relationships with Local SMEs Across India Large, Loyal User Community

“Three Clicks to Find”

Enabling Hyper Local Commerce and Transactions Trusted Strong Brand Established Relationships with Local SMEs Across India Large, Loyal User Community Enabling “Offline to Online” Shift

“Three Clicks to Transact”

Products and Services – Search Plus

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Restaurant Reservation/ Ordering Book Hotels Book Movie Tickets Book A Doctors' Appointment

Products and Services – Search Plus

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Pharmacy Online Book a Cab / Bus Order Flowers Shop Online

Search Plus: Win-Win for Users and SMEs

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• Enable O2O transformation
• App to better manage business
• Shop front for customer

acquisition in local markets

• Enhance trust online

(via JD guarantee)

• Leverage existing hyper local

delivery network

• Choose vendor in local

neighborhood for product of choice

• Convenience of ‘master app’,

look no further

• Personalized door-step

service experience

• Real-time price discovery
• Increased engagement and stickiness
• f users
• Increase in monetization streams

from SMEs

• Natural extension of core

search business

The Search Plus Model

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New Revenue Streams Key Metrics to Track in Near Term User traffic Vendor ad option and penetration

• No. of listings in each

segment Transaction fee Vendor app usage fee Shopfront rentals Display ad revenue [Bid fee from Vendors]

Experienced Management Team

• V. S. S. Mani

Founder, Managing Director &CEO

Years of Experience : 26 years in the field

• f media and local search services
• V. Krishnan

Chief Operating Officer

Years of Experience : 21 years in the field

• f strategic planning and execution

Shreos Roy Chowdhury Chief Technical Architect

Years of Experience : 17 years in the field

• f technology

Sandipan Chattopadhyay Chief Technology Officer

Years of Experience : 17 years in field

• f technology

Ramkumar Krishnamachari Chief Financial Officer

Years of Experience : 23 years in the field of finance and accounting

Koora Srinivas Deputy Chief Financial Officer

Years of Experience : 14 years in the field of finance and accounting

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Financial Overview

We have an Efficient and Profitable Business Model

Quarter ended September 30, 2014 highlights:

► Total operating revenue: INR 1,474 MM ► Adjusted Operating EBITDA margin at 31% for quarter ending September 30, 2014* ► PAT margin at 20% for quarter ending September 30, 2014

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Quarterly numbers are limited review, others are restated financials

FY2009 FY2014 Total Searches 82 MM 1125 MM Paid Campaigns 40,500 262,150 Search Revenue INR 735 MM INR 4,613 MM Operating EBIDTA INR 79 MM INR 1,422 MM Operating EBIDTA Margin 9% 31% PAT INR 75 MM INR 1206 MM PAT Margin 8% 24%

* Note: Adjusted Operating EBIDTA is excluding ESOP expenses incurred during the quarter

Rapid Revenue Growth

► Paid Advertisers primarily across 11 large Indian cities

(Contributes substantially to all of the company’s campaigns)

► Paid Advertisers pay fixed monthly or annual fees to run

search-led advertising campaigns for their businesses on Justdial’s platform

► Three types of premium memberships: Platinum, Diamond,

Gold and non-premium packages determine priority of placement in search results

–

Get direct leads to consumers (actual buyers)

–

Paid in advance

–

Automatic renewal

► Justdial also runs multiple city campaigns for pan-India

customers

► 3,044 tele-sales executives and 1,072 feet on street selling to

SMEs and 926 Just Dial Ambassadors (JDAs)

Key Business Model Attributes

735 1161 1796 2594 3626 4592 1125 1474 124 148 43 27 2 21 1 859 1309 1839 2621 3628 4613 1126 1474

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 Q2FY14 Q2FY15

Search Print Other Operating Revenue Total

Operating Revenue

INR Mn 21 YOY Growth 31%

Margin Expansion and Operating Leverage

61% 52% 52% 51% 50% 50% 51% 51% 25% 20% 18% 19% 18% 16% 14% 16% 5% 5% 5% 5% 4% 4% 4% 4%

4% 4% 4% 3% 4% 4% 4% 4%

95% 81% 79% 78% 76% 73% 73% 75% 40% 60% 80% 100% FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 Q2FY14 Q2FY15

Personnel Other OPEX Lease Depreciation Total

Key Expenses as a % of Operating Revenue Key Drivers

►More paid campaigns ►Improved package pricings, increasing and

upgrading contracts

►Deepen and broaden SME coverage ►New categories, new products and services ►Increasing PC Internet and mobile internet

usage volume

►Increased brand awareness

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• Op. EBIDTA Margins

31% | 31% | 31%*

* Note: For Q2FY15 Adjusted Operating EBIDTA margin excluding ESOP expenses is considered

Driving Profitability Growth

Profit after Tax (PAT)

INR Mn

75 193 288 506 685 1,206 287 315 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 FY09 FY10 FY11 FY12 FY13 FY14 Q2FY14 Q2FY15

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PAT MARGINS: 24% | 24% | 20%

Growing Cash Flows and Return on Capital

Cash Flow from Operations

INR Mn 1,330 61 359 600 957 1,023

200 400 600 800 1 ,000 1 ,200 1 ,400

FY09 FY10 FY11 FY12 FY 13 FY 14

Return on Net Worth (RoNW)

35% 36% 50% 25% 26%

0% 1 0% 20% 30% 40% 50% 60%

FY10 FY11 FY12 FY13 FY 14 24

Key Strengths

Attractive Value Proposition For Local SMEs Experience and Expertise in Local Indian Markets First Mover Advantage in the Indian Local Search Market Strong Brand Recognition Advanced and Scalable Technology Platform An Efficient and Profitable Business Model

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