Investor Presentation. November 2013

Transcription

1 Investor Presentation November 2013

2 Safe Harbor Disclaimer Neither Baidu, Inc. nor any of its subsidiaries or affiliates is making any representation or warranty, expressed or implied, as to the accuracy or completeness of the attached materials. Please note that the attached materials and our oral explanations of the attached materials may contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of Forward-looking statements involve inherent risks and uncertainties. As such, our actual results may be materially different from the views expressed. A number of potential risks and uncertainties are outlined in our public filings with the Securities and Exchange Commission. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. 1

3 Agenda 1. China Internet Market Opportunity 2. Baidu Update 3. Baidu User Products 4. Baidu Commercial Products 2

4 China s Internet and mobile internet industry Internet, Mobile Internet and Search Users in China (Million) Internet Users (MM) % Internet Penetration China United States South Korea 8% 7% % % % % 40 83% % % % % % % % 40% 35% 30% 25% 20% 15% 10% 5% H2013 Internet Users Search Users Mobile Internet Users Internet Penetration Rate 0% Source: CNNIC ; Internet World Stats (June 2012). 3

5 Agenda 1. China Internet Market Opportunity 2. Baidu Update 3. Baidu User Products 4. Baidu Commercial Products 4

6 Leading Chinese search engine Top $56bn Website in China 2 Market capitalization 3 By unique visitors and page views 1Q13 Premium global Internet company #1 Chinese search engine 2008 (73%) 82% 1 $1.5bn Q3 13 total revenues By number of search queries conducted # (47%) 42% Y-o-Y growth ~26,500 Most valuable brand Employees Among private sector companies in China 4 Top 3 China s best employer 5 1 iresearch; China search engine market share by traffic for the quarter 1Q 2013; Traffic as defined by number of search queries conducted. 2 Comscore; Baidu.com #2 as of Sep Market capitalization as of Oct 31, Millward-Brown BrandZ study. 5 Ranked as No. 3 in ChinaHR.com s 2013 Top 50 Employers list. 5

7 Proven track-record in driving value-creation Expanding customer base Increasing spending per customer Driving revenue growth Number of customers 1 ('000) Revenues per customer 2 (RMB '000) Quarterly revenue (RMB in BN) Q308 Q309 Q310 Q311 Q312 Q313 Q308 Q309 Q310 Q311 Q312 Q313 Q308 Q309 Q310 Q311 Q312 Q313 YoY %: 36% 11% 26% 12% 28% 19% YoY % 34% 26% 41% 65% 17% 19% YoY %: 85% 39% 76% 85% 50% 42% Strong growth from core search service: Improved monetization capability, strong mobile search revenue growth; mobile revenue >10% of total revenue Positive customer feedback for integrated bidding system: Integrated PC and mobile bidding platform launched in May;75% of mobile revenue from proactive bidding and mobile optimized websites Zhixin initiative (commercial knowledge graph): Deeper verticalization, working closely with content partners Safe search experience: +V verified accounts broader rollout and Netizen Rights Protection Initiative; Increasing investment in people, marketing/baidu Union (product promotions), network infrastructure and office space. Source: Company filings. 1 Active online marketing customers. 2 Online marketing services revenues divided by the number of active online marketing customers. 6

8 Agenda 1. China Internet Market Opportunity 2. Baidu Update 3. Baidu User Products 4. Baidu Commercial Products 7

9 Diversified product offering 8

10 Proven success in executing mobile strategy Flagship gateway products Complementary vertical & utility offerings Baidu Mobile Search Baidu Mobile Maps 130mm+ Daily Active Users 1; >10% of total revenue Proprietary cutting-edge search engine Alternative voice and image input methods 140mm+ Monthly Active Users 2 Leading mobile map/lbs app Enables transactions: hotel booking, movie ticket purchase, group buying etc iqiyi Video Personal Cloud Storage #1 PC and mobile 3 Leading personal cloud services app; 100mm users Qunar Baidu Video #1 travel app in China 4 Leading mobile video search app Baidu PostBar Baidu Music Photo Wonder Baidu Mobile Assistant #1 app distribution channel, 80 million apps distributed daily App store / App search Significant growth potential Baidu Mobile Browser Cloud Album Baidu Input Baidu Voice Assistant Sophisticated cloud infrastructure Source: Company data, iresearch, CNNIC (October 2012) 1 Daily Active Users, refers to the number of users who used the service at least once on a given day; 2 Monthly Active Users, refers to the number of users who used the service at least once in a given month; 3 iresearch; monthly user time spent August 2013 (including PPS); 4 CNNIC; based on the percentage of users downloading travel apps in a survey conducted in September

11 PC Web Search Commercial Knowledge Graph (Zhixin) Fun Games Related Games 10

12 PC Web Search User Knowledge Graph (Zhixin) What movies is Jennifer Aniston s former husband s partner in? 11

13 PC Web Search - Box Computing Open API, turns search box into an interactive frame Delivers search results directly on search page Beijing Real-time Traffic A TV Series Name Currency Exchange 12

14 Mobile Web Search - Box Computing A Restaurant s Name A TV Series Name A Software s Name 13

15 PC Map LBS Integration Hotel hotel Category by hotel types Category by price Ranking by different categories Sources: Qunar, Daodao, Ctrip, Kuxun, elong 14

16 Mobile Map LBS Integration Seamless integration of popular LBS categories in search results with user ratings, address, distance/navigation, contact info, coupons, user comments, restaurant reservations and more Hotels Group buying offer User reviews Hotel detail Navigate to Click to call Book hotel this destination Book hotel Leave review Report error Bookmark Upload photo 15

17 Mobile Map - Directions Real-time traffic info and bus arrival information From: Current Location To: Baidu Campus No.112 Bus (to arrive in 10 mins) No.996 Bus (to arrive in 12 mins) No.365 Bus (to arrive in 12 mins) transfer to No.34 Bus No.34 Bus (to arrive in 12 mins) No.365 Bus (to arrive in 12 mins) Taxi fare: 39 RMB 16

18 Mobile Map - Online Voice Navigation Turn by turn voice navigation Enlarged cross road maps 17

19 Baidu Voice Assistant 提醒我每天早上 9 点起床 Remind me to get up at 9am every day 已经为您建立每天的提醒 Have set up the daily reminder for you 我想听伤心的歌曲 I want to listen to some sad songs Sad song recommendations Tell me a joke One more 18

20 Image Search Image recognition: world s leading technologies in general image search; the world s most comprehensive index of facial images. Brief introduction A book s name Readers comments Buy one Samoyed Samoyed The uploaded image Brief introduction 19

21 Baidu Ecosystem: Open and Accessible Fosters innovation in mobile ecosystem Personal Cloud Storage ScreenX LBS-Cloud Baidu Search Baidu Mobile Assistant Mobile Testing Center Baidu Cloud 7 Free Weapons for Developers Mobile Browser Engine Baidu App Engine SiteApp 91 Wireless Baidu Light App Reduces developer costs and enhance efficiencies Tools & Infrastructure + Distribution 20

22 Agenda 1. China Internet Market Opportunity 2. Baidu Update 3. Baidu User Products 4. Baidu Commercial Products 21

23 Robust and resilient business model Search traffic Marketing dollars Highly scalable Organic traffic Highly sustainable Union Member traffic Hundreds of millions of Internet users Half a million customers Highly resilient Search & other offerings Pay-for-performance and other online marketing services 22

24 Nationwide Sales Coverage in China 10,000 direct sales and large reseller distribution Solid net customer adds, growth from lower tier cities Direct sales Resellers 23

25 Integrated PC and mobile bidding system An integrated PC and mobile bidding system launched in May

26 PC Web-Search Monetization (P4P) Book Promotional links Natural results 25

27 PC Web-Search Monetization (P4P) - The majority of our customers now have +V verification. - Netizen Rights Protection Initiative protects users by compensating them with a certain amount if they are defrauded through a sponsored link. Air Ticket 苏州同程旅游网络科技有限公司 : 收藏 评论 具有中航协认证的机票代理资格 已经通过百度身份认证百度信誉星级 Netizen Rights Protection Initiative 苏州同程旅游网络科技有限公司具有中航协认证的机票代理资格已经通过百度身份认证百度信誉星级 :***** 北京趣拿软件科技有限公司已经通过百度身份认证百度信誉星级 : ***** 携程旅游信息技术 ( 上海 ) 有限公司具有中航协认证的机票代理资格已经通过百度身份认证百度信誉星级 : ***** 26

28 PC Monetization - Brandlink and Display Ads social context + topical targeting + impression 27

29 Diversified Mobile Web-Search Monetization Click to Call; Click to Chat Click to Call Back Click to Download 28

30 Diversified Mobile Web-Search Monetization Map Information Coupon Information BrandLink 29

31 Baidu Union Contextual Ads 30

32 Appendix 31

33 Proven Execution Track Record Quarterly Total Revenue Growth (RMB in MM) 8,800 8,892 8,000 7,561 7,200 6,400 5,600 5,456 6,251 6,335 5,969 4,800 4,000 3,200 2,400 1, ,451 2,436 2,256 1, ,097 1,279 1,261 1,294 3,415 4,175 4,474 4,264 0 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 QoQ 53% 28% 29% 18% 41% 25% 13% 2% 46% 24% 15% 1% 40% 15% (2%) (10%) 35% 17% (1%) 3% 48% 18% 9% (1%) 40% 22% 7% (5%) 28% 15% 1% (6%) 27% 18% YoY NA NA NA 197% 175% 169% 136% 103%109% 107% 110%108%100% 85% 58% 41% 37% 39% 40% 60% 74% 76% 94% 88% 78% 85% 83% 75% 60% 50% 42% 40% 39% 42% Source: Company data 32

34 Proven Execution Track Record Customer Data (Active Customer Base) (in 000) Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 QoQ 30% 28% 19% 17% 22% 13% 6% 4% 14% 12% 8% 4% 12% 7% 2% (6%) 10% 6% 3% (1%) 15% 7% 1% (1%) 9% 2% 2% 3% 10% 11% 4% 1% 14% (1%) YoY NA NA NA 133% 118% 92% 71% 51% 42% 40% 44% 44% 41% 36% 27% 15% 12% 11% 13% 19% 25% 26% 24% 24% 17% 12% 13% 17% 18% 28% 31% 28% 33% 19% Source: Company data 33

35 Proven Execution Track Record Customer Data (Per Customer Spending) (RMB in 000) Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q30 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 QoQ 19% 0% 10% 0% 17% 12% 7% 0% 24% 13% 6% (3%) 22% 7% (2%) (4%) 23% 9% (3%) 4% 27% 11% 7% 0% 29% 19% 5% (8%) 17% 3% (3%) (6%) 11% 19% YoY NA NA NA 31% 29% 44% 41% 41% 49% 50% 48% 44% 42% 34% 24% 22% 23% 26% 24% 34% 39% 41% 56% 51% 53% 65% 62% 49% 35% 17% 8% 9% 4% 19% Source: Company data 34

36 Thank You! 35