Company Presentation December 2015 1 Untapped User Base Market - - PowerPoint PPT Presentation

Company Presentation

December 2015

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Untapped User Base – Market Potential

India: One of the Largest Consumer Economies

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India on the Go!

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India has the second largest internet user base in the world The 3G user base in India is projected to grow at a CAGR

• f 61.3% from 2013-17

As of June’15, internet users in India stood at over

350 million

Source: IAMAI-KPMG Report 2015

Internet Infrastructure

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Data tariffs in India are declining… …and are already amongst the lowest in the world (2014)

Smart-phone market

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Price trends for phones in India New smart-phone launches in India

Business Overview

Company Overview

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Notes

• 1. Unique visitors are considered across various mediums – Voice, PC Internet, Mobile Internet – these may not necessarily be mutually exclusive.
• 2. As on 31 December, 2015

India’s only Search Plus engine (Search & Transact) Multi platform search engine High rates of direct, mobile and repeat traffic 3,54,900 active paid campaigns(2) 58MM reviews and ratings(2) 71.5MM unique visitors in Q3FY16 (1) 16.1MM total business listings(2) Profitable business model

Justdial Everywhere: Connecting With Users Anytime, Anywhere

PC Internet Mobile Internet & Apps 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 apps 8888888888 Operator assisted Hotline number across India 24 hours a day, 7 days a week Multi-lingual support Company/ category/product searches 9

User Community and Reviews Drive Engagement

Reviews and Ratings

Millions 10

Special focus on Friend’s Reviews & Ratings

30.3 33.7 37.1 41.3 45.1 48.4 51 53.1 55.3 58.3 10 20 30 40 50 60 70 Sept'13 Dec'13 Mar'14 June'14 Sept'14 Dec'14 Mar'15 June'15 Sept'15 Dec'15

Voice, PC and Mobile – Unique Visitors

25.2 25.8 27.6 27.3 24.3 10.7 10.0 11.3 10.9 10.6 27.3 30.9 36.3 37.7 36.6

0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00

Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Web Voice Mobile

63.2 75.2

66.7 71.5

Total Unique Visitors are considered across various mediums – Voice, PC Internet, Mobile Internet – these may not necessarily be mutually exclusive.

YOY Growth: 13%

Unique Visitors

75.9

Attractive Value Proposition for Local SMEs

Paid Campaigns*

‘000

Total Business Listings*

Million 12

5.8 7.2 9.1 11.8 15 16.1 2 4 6 8 10 12 14 16 18 FY11 FY12 FY13 FY14 FY15 Q3FY16 120 171 206 262 331 355 50 100 150 200 250 300 350 400 FY11 FY12 FY13 FY14 FY15 Q3FY16

Charting New Heights - Important updates during the quarter

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• UI enhanced for Search Plus verticals

(Travel/ Shop Online/ Grocery/ Pharmacy)

• New payment options in the form of Wallets introduced

(mobiKwik/ Pockets/ Payzapp/ Shmart)

• New version of the Android App – Global
• Comprehensive Profile section

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)

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

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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”

Search Plus Services

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• Order Food
• Book A Table
• Book A Doctor’s Appointment
• Order Grocery
• Order Medicines/ Pharmacy
• Diagnostics
• Shopfront / Shop Online
• Flight Tickets
• Order Flowers
• Laundry Pick-up
• Courier Pick-up
• Car Servicing
• AC Servicing
• Water Purifier Servicing
• Mineral Water Order
• Bus Ticketing
• Schedule a Test Drive
• Book a Cab
• Hotels
• Movies
• Books
• Deals
• Events
• Recharge & Bill Payments
• Loans
• Spa
• Insurance

Products and Services – Search Plus

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Options of Wallets for Payment Travel Shop Online Order Grocery

Products and Services – Search Plus

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Book Flight Tickets Order Flowers Insurance Loans

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 engagement Vendor ad option and penetration

• No. of listings in each

segment Transaction fee Vendor app usage fee Shopfront rentals Display ad revenue Subscription fee from Vendors

Financial Overview

We have an Efficient and Profitable Business Model

Quarter ended December 31, 2015 highlights:

► Total operating revenue: INR 1,713 MM ► Adjusted Operating EBITDA margin at 28% for quarter ending December 31, 2015* ► PAT margin at 15% for quarter ending December 31, 2015

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Quarterly numbers are limited review, others are restated financials

FY2010 FY2015 Paid Campaigns 61,500 3,31,200 Search Revenue INR 1,309 MM INR 5,898 MM Operating EBIDTA INR 304 MM INR 1,839 MM* Operating EBIDTA Margin 23% 31%* PAT INR 193 MM INR 1,389 MM PAT Margin 14% 22%

* Note: Adjusted Operating EBIDTA is considered for FY15 which is excluding ESOP expenses and one time gratuity spend * Note: Adjusted Operating EBIDTA is excluding ESOP expenses (INR 6.64crore) and one-time expenses (buyback & other expenses of INR 3.48 crore) 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

► Various 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

► 3,212 tele-sales executives and 1,256 feet on street selling to

SMEs and 1,533 Just Dial Ambassadors (JDAs)

Key Business Model Attributes Operating Revenue

INR Mn 24

1796 2594 3577 4592 5883 1544 1713

43 27 51 21 15

1000 2000 3000 4000 5000 6000 7000 FY11 FY12 FY13 FY14 FY15 Q3FY15 Q3FY16

Search Other Operating Revenue

1839 2621 3628 4613 5898 1544 1713

YOY growth: 11 %

* Note: Q3FY15 revenue is after adjustment of revenue correction

Margin Expansion and Operating Leverage

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% | 28% | 36%*

* Note: For Q3FY16 Adjusted Operating EBIDTA margin excluding ESOP and one-time expenses is considered

52% 51% 50% 50% 52% 51% 56% 18% 19% 18% 16% 16% 13% 19% 5% 5% 4% 4% 4% 4% 3% 4% 3% 4% 4% 4% 4% 5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% FY11 FY12 FY13 FY14 FY15 Q3FY15 Q3FY16

Driving Profitability Growth

Profit after Tax (PAT)

INR Mn 26

PAT MARGINS: 22% | 20% | 15%

288 506 685 1206 1389 321 269

200 400 600 800 1000 1200 1400 1600 FY11 FY12 FY13 FY14 FY15 Q3FY15 Q3FY16

Growing Cash Flows and Return on Capital

Cash Flow from Operations

INR Mn 359 600 957 1,023 1,330 1,846

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

FY10 FY11 FY12 FY 13 FY 14 FY 15

Return on Net Worth (RoNW)

35% 36% 50% 26% 25% 23%

0% 10% 20% 30% 40% 50% 60%

FY10 FY11 FY12 FY13 FY 14 FY15 27

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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