Company Presentation August 2013 1 Untapped User Base India: One - - PowerPoint PPT Presentation

Company Presentation

August 2013

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Untapped User Base

India: One of the Largest Consumer Economies

15.7 15.6 12.4 4.8 4.5 2.5 6 12 18

United States European Union China India Japan Russia

India : 4th Largest Economy Globally

GDP (PPP) : US$ 4.8 Tn GDP at Purchasing Power Parity in 2012

India: 2nd Fastest Economic Growth

GDP Growth Estimate (2013, %) 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, April 2013 8.0 5.7 3.4 3.0 1.9

• 0.3
• 1

1 3 5 7 9

China India Russia Brazil United States European Union

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India: Least Penetrated Internet/ Mobile Markets with Growth Potential

Source: Internet World Stats, Regulator Websites and annual filings of public companies

India: 2nd Largest Wireless Market Globally

Million Wireless Subscribers(1)

1155 867 326 266 250 300 600 900 1,200 China India USA Brazil Russia

Low Internet Penetration Presents Further Upside

Internet Penetration (%), As on June 30, 2012

78 48 46 40 34 28 11 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

• 1. Data as of April 30 2013 for India and China; as of June 30, 2013 for Brazil; as of September 30, 2012 for Russia and as of December 31, 2012 for USA

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Business Overview

India’s Leading Local Search Engine

► We are India’s leading local search engine ► Approximately 364 million usages(1) in FY 13 from users as they are potentially making purchase decision ► We are a well established Indian local search brand ► Currently we have approximately 28 million ratings and reviews published on the website ► Over 16 years of operating history; efficient and profitable business model

• Usage/search requests include search through voice/SMS and, PC and mobile internet visits

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Justdial Everywhere: Connecting With Users Anytime, Anywhere

PC Internet Mobile Internet Voice/SMS

Over 18.8 million web visits per month (1) User friendly features – Predictive auto-suggest – Maps, directions, operating hours, logos, pictures, videos – Ratings and reviews Search by company or category Popular category searches Over 6.5 million visits on mobile internet and apps per month (2) Location-based search service Developed android and iPhone app and are in the process developing apps for Windows 7 08888888888 Operator assisted Hotline number across India 24 hours a day, 7 days a week Over 13 million voice searches (calls) per month (3) Multi-lingual support Company and category searches

• 1. Based on 56.4 million visits for 3 months ending June 30, 2013; 18.8 million derived by dividing 56.4 million by 3
• 2. Based on 19.5 million visits for 3 months ending June 30, 2013; 6.5 million derived by dividing 19.5 million by 3
• 3. Based on 39.3 million visits for 3 months ending June 30, 2013; 13 million derived by dividing 39.3 million by 3

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Easy Way for Local SMEs and Users to Connect

► Free ► Multi-platform access ► Fast ► Enhanced user experience ► Cost effective ► Market campaigns ► At the point of making the purchase decision ► Creates direct and personal relationships ► Strong branding Why Users Utilize Justdial Why Businesses(2) Utilize Justdial

Users Users

Consumer Traffic Consumer Traffic

Local Local Businesses Businesses(2)

(2)

Local Listings Local Listings 364 364 Million Million usage usage(1) (FY (FY 13 13) 9.5 9.5(3)

(3) Million

Million Listings Listings

Connecting Businesses(2) and Users

• 1. Usage/search requests, includes search through voice/SMS and PC and mobile internet visits
• 2. Businesses include SMEs and larger enterprises/businesses
• 3. As of June 30,2013

► Local ► Updated Listings ► Popular Categories ► Relevant to Users’

Everyday Activities

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Relevant to Users’ Everyday Activities

Automobile Car Rentals Finance Restaurants Travel Wedding Beauty & Spa Education Home Repairs Taxis More…

Local Updated Listings Popular Categories

Hotels 9

Provides Access to Millions of SMEs and User Reviews

Options to Specify Search 1 Click to get Contact Details by SMS/Email 4 Justdial Periodically Verifies - Helps to Ensure Accuracy of Information for Campaigns 5 Reviews and Ratings: User Generated Content 6

SMEs pay fees to run search-led advertising campaigns SMEs can choose from a variety of advertising packages

Contact and other details of SMEs 3 Paid Advertisers Prioritized in Search Results 2

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Helping Local Commerce Across India

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64% 55% 54% 46% 38% 34% 34% 44% 44% 49% 50% 49%

2% 1% 2% 5% 12% 17%

82 133 181 254 364 115 50 100 150 200 250 300 350 400 FY09 FY10 FY11 FY12 FY13 FY14 Q1 million Mobile Internet PC Internet Voice / SMS

India’s Leading Local Search Engine

• 1. Usage/search requests, includes search through voice/SMS and PC and mobile internet visits. 30 million is arrived at by dividing 364 by 12 and 38 million by dividing 115 by 3
• 2. Represents visits

PC and Mobile Internet Usage

(2) (2)

CAGR: 160% CAGR: 60% CAGR: 28%

38 mn

usage per month (1)

30 mn

usage per month (1)

Growth:43% YoY Growth: 36%

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User Community and Reviews Drive Engagement

Reviews and Ratings

Millions 2.7 14.5 19.8 22.4 26.5 0.0 5.0 10.0 15.0 20.0 25.0 30.0 'Jun-11 'Jul-12 'Dec-12 'Mar-13 'Jun-13 13

Engagement Driven Through Innovative Mobile Applications

Justdial –Smart Phone Application With A Unique Social Interface

Tag Search Rate & Review

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New Products and Services

Order Food Online Book Doctors Appointments(1) Book A Table(1) Order Grocery and Staple Purchases(1)

• 1. Under Development, Pictures for representation only

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Track Record of Consistent Growth

Total Usage(1)

Million

Paid Campaigns

‘000s 82 131 175 254 364 115 50 100 150 200 250 300 350 400

FY09 FY10 FY11 FY12 FY 13 Q1 FY 14

41 62 120 171 206 221

50 100 150 200 250 FY 09 FY 10 FY 11 FY 12 FY 13 Q1 FY14

• 1. Usage or search requests includes search through voice/SMS and, PC and mobile internet visits

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Attractive Value Proposition for Local SMEs

Paid Campaigns

‘000 62 171 206 221 50 100 150 200 250 '31-Mar-10 31-Mar-12 31-Mar-13 30-Jun-13 7.2 9.1 9.5 0.0 2.0 4.0 6.0 8.0 10.0 31-Mar-12 31-Mar-13 30-Jun-13

Total Business Listings

Million 17

Multiple Strategies for Growth

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

99 1

Total: Total: 31 31.2 2 Million SMEs Million SMEs(1)

Doctor’s Appointm ent

• 1. Ministry of Small and Medium Enterprises Annual Report 2012

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Experienced Management Team

• V. S. S. Mani

Founder, Managing Director &CEO

Years of Experience : 25 years in the field

• f media and local search services
• V. Krishnan

Chief Operating Officer

Years of Experience : 20 years in the field

• f strategic planning and execution

Shreos Roy Chowdhury Chief Technical Architect

Years of Experience : 16 years in the field

• f technology

Sandipan Chattopadhyay Chief Technology Officer

Years of Experience : 16 years in field

• f technology

Ramkumar Krishnamachari Chief Financial Officer

Years of Experience : 22 years in the field of finance and accounting

Koora Srinivas Deputy Chief Financial Officer and Senior Vice President Human Resources

Years of Experience : 13 years in the field of finance and accounting

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Financial Overview

We Have an Efficient and Profitable Business Model

Profitability

► Operating leverage driving margin expansion ► Net Income margin at 8% for FY2009 and 18% for FY2013

Efficiency

► Continuity in subscriptions and cash flows ► Negligible receivables; no long term debt ► Positive return metrics

Growth

► Total Usage grew from 82 MM in FY2009 to 364 MM in FY2013 ► Paid Campaigns grew from 41,000 at FYE March 2009 to 206,500 at FYE March 2013 ► Search Revenue grew from INR 735 MM in FY2009 to INR 3,627 MM in FY2013

Quarter ended June 30, 2013 highlights:

► Total revenue: INR 1,119 MM (including search revenue: INR 1,046 MM and other revenue: INR 73 MM) ► Operating EBITDA margin at 35% for 3 months ending June 30, 2013 ► Net Income margin at 25% for 3 months ending June 30, 2013

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Quarterly numbers are limited review, others are restated financials

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

► Two types of premium memberships: Platinum, Diamond

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

► 2,734 tele-sales executives and 996 feet on street selling

to SMEs (1)

Key Business Model Attributes

735 1,161 1,796 2,594 3,626 816 983 1,046 43 27 2 1 859 1,309 1,839 2,621 3,628 817 983 1,046 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 FY 09 FY 10 FY 11 FY 12 FY 13 Q1 FY 13 Q4 FY 13 Q1 FY 14 Total Other Operating Revenue Print

Operating Revenue

INR Mn

1. As on June 30, 2013 Quarterly numbers are limited review, others are restated financials

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Margin Expansion and Operating Leverage

61% 52% 52% 51% 50% 50% 50% 47% 25% 20% 18% 19% 18% 16% 18% 15% 5% 5% 5% 5% 4% 4% 4% 4% 4% 4% 4% 3% 4% 3% 4% 4% 95% 81% 79% 78% 76% 73% 76% 69% 40% 60% 80% 100% FY 09 FY 10 FY 11 FY 12 FY 13 Q1 FY 13 Q4 FY 13 Q1 FY 14 Depreciation Lease Other Opex Personnel

Key Expenses % 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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Quarterly numbers are limited review, others are restated financials

Driving Profitability Growth

Profit after Tax (PAT)

INR Mn 75 193 288 506 685 166 214 280 100 200 300 400 500 600 700 800 FY09 FY10 FY11 FY12 FY13 Q1 FY13 Q4 FY13 Q1 FY14 24

Quarterly numbers are limited review, others are restated financials

Growing Cash Flows and Return on Capital

Cash Flow from Operations

INR Mn

61 359 600 957 1,023 200 400 600 800 1,000 1,200

FY09 FY10 FY11 FY12 FY 13

Return on Net Worth (RoNW)

35% 36% 50% 26% 0% 10% 20% 30% 40% 50% 60%

FY10 FY11 FY12 FY13 25

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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