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Company Presentation December 2015 1
Company Presentation
December 2015
1
Untapped User Base – Market Potential
India: One of the Largest Consumer Economies
3
India on the Go!
4
India has the second largest internet user base in the
world
The 3G user base in India is projected to grow at a CAGR
of 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
5
Data tariffs in India are declining…
…and are already amongst the lowest in the
world (2014)
Smart-phone market
6
Price trends for phones in India
New smart-phone launches in India
Business Overview
Company Overview
8
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
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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
0
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
0
2
4
6
8
10
12
14
16
18
FY11 FY12 FY13 FY14 FY15 Q3FY16
120
171
206
262
331
355
0
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 14
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
of 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
0
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
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PAT MARGINS: 22% | 20% | 15%
288
506
685
1206
1389
321 269
0
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
9571,023
1,330
1,846
0
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
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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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