Marketing Digital Media Worldwide
Disclaimer Disclaimer This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Ybrant Digital Limited (the “Company” or “Ybrant”), nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefore. This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, the Company’s ability to manage growth, competition, government policies, regulations etc. The Company does not undertake to revise any forward-looking statement that may be made from time to time by or on behalf of the Company. No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness or fairness of the information, estimates and opinions contained in this presentation. Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. Any opinions expressed in this presentation are subject to change without notice. None of the Company, promoters or any advisors shall have any responsibility or liability whatsoever for any loss howsoever arising from this presentation or its contents or otherwise arising in connection therewith. This presentation and its contents are confidential and should not be distributed, published or reproduced, in whole or part, or disclosed by recipients directly or indirectly to any other person. In particular, this presentation is not for publication or distribution or release in any jurisdiction where such distribution may lead to a breach of any law or regulatory requirement. None of the securities of the Company may be offered or sold in the United States without registration under the United States Securities Act of 1933, as amended, or pursuant to an applicable exemption from registration. This presentation is not intended to be a prospectus (as defined under the Companies Act, 1956) or an offer document under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended.
Content Content Section 1 Snapshot 05 Section 2 The Opportunity 08 Section 3 About Ybrant 15 Section 4 Growth Strategies 26 Section 5 Financial Overview 29 Appendix Merger with LGS Global 31
� Snapshot
Ybrant Digital Limited Ybrant Digital Limited One of the leading Indian Digital Marketing Company One of the leading Indian Digital Marketing Company About the Promoters Ybrant’s Business Model � Suresh Reddy & Vijay Kancharla are first generation entrepreneurs and promoters of Ybrant Digital � The key architects of Ybrant’s overall growth strategy; Suresh overseas the strategic direction and expansion efforts at Ybrant Digital while Vijay leads the innovations and spearheads Ybrant’s search platform � With a strong educational background and several years of industry experience, Suresh and Vijay’s conviction on the global Email & Lead Display Search Social Platform & Software digital marketing growth opportunity has helped Ybrant grow (Banner) Advertising Generation Advertising Development over the years and attract pedigree investors to back Ybrant’s unique business model About Ybrant Financial and Market Data � One of the leading Indian digital marketing company with significant Listed in July 2012 through reverse merger with LGS Global Limited (pursuant to the order of the High Court in April 2012) global presence � Offers multi-channel platform with proprietary technology to reach Market Cap (Dec 5, 2012): USD 637 million; Enterprise Value: USD 648 million consumers across different screens (net, mobile, video, social media) across countries including faster growing emerging markets Major shareholders/investors (as of September 30, 2012) such as Latin America, Israel, India, China and Australia � Promoter & Promoter Group– 41.44% � Oak India Investments – 7.27% � Made 12 corporate investments over the last six years to achieve � Sansar Capital – 10.44% � Commowealth Equity Fund – 2.04% � Everest Capital -- 13.69% � Passport Capital – 2.02% wider market penetration in terms of product & reach � Generates over 1.5 billion searches and 34 billion impressions per USD Mn month to service 150+ agencies & brands of over 2000+ advertisers 300.00 Revenue and 6000+publishers across 140 countries 246.91 Half Year financials EBITDA 250.00 204.35 � Owner of premium brands like Lycos, Gamesville, Tripod and PAT 200.00 Angelfire 159.28 152.80 � Emerged as a player of relevance for three of the top five publisher 150.00 networks and three of the top five advertising agencies globally 53.18 100.00 41.01 34.35 30.49 � Partnered through advertising agencies with blue chip advertisers 50.00 33.27 37.49 26.02 20.84 and publisher networks including MTV, Yahoo, Samsung, Facebook, - MSN, Viacom, Amex, Mastercard, Maruti Suzuki, Bharati Airtel, Sony India, Coco Cola, Star India, Vodafone, Reliance FY2010 FY2011 FY2012 H1FY2013 Communications, Samsung Electronics, Lenovo, ING, British Source: FY2010 & FY2011 data are based on proforma financials; FY- year ending March 31 Airways, Qatar Airways, Titan, Unilever, P&G, Mazda, Hyundai INR /USD - 45.14 (FY2010), 44.65 (FY2011), 51.16 (FY2012), 52.70 (H1FY2013) 5 Motors, Tata Motors, ICICI Bank, LIC, HP, Telstra and ITC
Key Corporate Highlights Key Corporate Highlights 1 3 2 Sustainable Growth Market Scale Global Presence • Organic growth and M&A, • Online advertising $107bn • Local presence in over 24 led the digital marketing market in 2012 growing to countries across 6 revenue growth @CAGR $179bn by 2016 (Source: continents 40.9% (2007-2012) eMarketer) • Strength in emerging • Continued growth • Social, mobile and video markets such as Latin expected as market grows are creating a new wave America and Ybrant extends share of growth for digital • Plan to capitalize the marketing specialists potential in India 4 5 6 Social Marketing Consumer Reach Strong IP • Creates 1.5bn searches • Heritage as a technology Expertise and 34bn impressions provider for digital • Ybrant has wide every month marketing industry penetration outside of US • Access to 200m unique • IP ownership enables for advertising content on visitors per month higher margin, improved Facebook and is one of its • Customers include 3 of unique offering and higher few selected marketing top 5 global ad agencies share of advertising API partners • Associated with over budget 6,000 publishers 7 9 8 Presence Across Effective Staff Base • 1,000+ staff, ~300 based in Digital Media Acquisitions India • Operates across the entire • 12 corporate investments • Provide technology digital marketing space to date enabled global development, customer • Provides flexibility to scale and end-to-end service and sales potential customers to choose presence online advertising campaign formats on a single platform 6
� The Opportunity
Internet Advertising is a USD 100bn Market.. Internet Advertising is a USD 100bn Market.. Global Internet Advertising Market (USD billions) 2012-2016 CAGR: 13.7% 179 162 145 126 107 2003-2012 CAGR: 88 31.0% 73 52 49 39 29 20 14 9 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 • Internet Advertising is now an essential part of every brand and media planner’s budget • In 2012, it surpassed newspaper as the second largest advertising medium by value spent, after TV • It remains the fastest growing segment within the advertising space Source: eMarketer 8
… …driven driven by by secular secular growth growth in in internet internet penetration penetration and and consumers’ consumers’ time time and and money money spent spent online online Average time spent by US adults Vs US ad spending share US Retail e-Commerce Spending (USD bn) 2011-2016 CAGR: Time spent share Ad spending share 39.8% 362 13.3% 38.9% 36.5% Potential for ad spending 325 to match time spent 290 256 224 22.5% 194 13.2% 11.5% 9.2% 9.3% 3.1% 2.3% TV Online* Radio Newspaper Magazines 2011 2012 2013 2014 2015 2016 • The gulf between portion of time spent online and portion of advertising spent online highlights the opportunity for ad spending growth • Online ad spending growth is further stimulated by the shift in consumer spending habits while online, demonstrated by the increase in e-Commerce Source: eMarketer Sep & Oct 2012 * Note: online includes mobile 9
Recommend
More recommend
