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Investment Perspectives in Thailand Dr Adrian Vanzyl [email protected] This presentation will be available at www.ardentcap.com
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Ardent capital and_thailand_investments_2014-01-15_v3

Oct 17, 2014

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Page 1: Ardent capital and_thailand_investments_2014-01-15_v3

Investment Perspectives in ThailandDr Adrian Vanzyl

[email protected]

This presentation will be available at www.ardentcap.com

Page 2: Ardent capital and_thailand_investments_2014-01-15_v3

• Why we are all here – topline SEA numbers

• Protests, politics, coups – serious or noise?

• Ardent HQ in Thailand – Why specifically Bangkok?

• Thailand specifics

• The Thai ecosystem

• Opportunities for investors and entrepreneurs in Thailand

• Specific examples of what Ardent is doing

Thailand + Tech investing = genius or crazy?

Page 3: Ardent capital and_thailand_investments_2014-01-15_v3

• We raise almost all our money OUTSIDE of Thailand and SEA

• For example, last year’s major investors for us included Japanese (Recruit, GMO, NTT Docomo, Cyberagent) and USA (Siemer)

• At some point we always have to explain SEA

• And in particular Thailand

• This is a very detailed deck with lots of data in the appendix that YOU can use to answer this same question

• Please download it from www.ardentcap.com

Why SEA, Why Thailand?

Page 4: Ardent capital and_thailand_investments_2014-01-15_v3

Southeast Asia is bigger (2x) than the US and bigger than the EU

SE Asian Population

Page 5: Ardent capital and_thailand_investments_2014-01-15_v3

Internet Penetration is Exploding

24M

31M

18M

4M

55M

34M

194mNew internet

users

360mInternet users

Source: We are Social, Accenture

2010 2020

62% Est. internet penetration

25% 2010 internet penetration

Page 6: Ardent capital and_thailand_investments_2014-01-15_v3

0

2

4

6

8

10

12

14

16

18

20

22

24

26

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

US$

Bill

ion

s

Year

Furniture & FloorCoverings

Sports & LeisureEquipment

Home & GardenProducts

Books, News &Stationery

Apparel, Accesories &Luxury Goods

Music, Video &Entertainment Software

Food & Grocery

Electrical & Electronics

7.1

23.5

13.5

3.52.5

Thailand, Philippines, & Indonesia Online Retail is Growing Fast!Online Retail Sales Forecast 2005 – 2015 – Source ICD Research

Why SE Asia? eCommerce is exploding

18.7

Page 7: Ardent capital and_thailand_investments_2014-01-15_v3

Attempted coup

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

%

Major protests

GDP growth has not been affected by political instability

2011 Tsunami and floods

2008 GFC

1997-98 Asian

Financial Crisis

Source: GDP Data from Thailand’s National Economic and Social Board

Coup

Despite frequent political turmoil, history has shown that the Thai economy has its own dynamics and its own momentum

Page 8: Ardent capital and_thailand_investments_2014-01-15_v3

Political instability: implications

• Immediate – tourism

• Mid term – capital investment, factories

• Long term – affects everything. Quality of life, exits, growth tied to GDP

• Thailand has survived so far despite the politics

• Reality – life goes on. Offices open. Supermarkets open. Public transport unaffected. No anti western sentiment – this is 100% internal

Page 9: Ardent capital and_thailand_investments_2014-01-15_v3

Ardent Capital is an operator VC headquartered in Bangkok with offices in Singapore and Indonesia, 300 staff across the portfolio, 120 in Bangkok

Traditional VC – we make seed and early stage investments, with six investments made in past 18 months throughout Southeast Asia

Labs business – we incubate companies in-house such as aCommerce and WhatsNew

Three of founding team of six are Thai American (Paul, Tom, John)

My background – 20 years doing Internet – 1 ASX IPO (Sausage Software), 1 NASDAQ IPO (LookSmart), 1 Microsoft Exit (LinkExchange), 1 NZX IPO, 12 years VC in San Francisco (Blumberg Capital), 7 years across SEA

Quick overview of Ardent Capital

Page 10: Ardent capital and_thailand_investments_2014-01-15_v3

Ardent Capital team’s exits in SE Asia in the last 3 years

6 start-ups

sold to

sold to

sold to

invested in

Page 11: Ardent capital and_thailand_investments_2014-01-15_v3

Sustainable GDP per capita growth (Avg. 5-6% est. 2013)

Rising disposable income

Growing mobile broadband penetration

Accelerating smartphone penetration

Social Media penetration

Increasing Credit Card penetration

AEC 2015

Why SE Asia? Converging Trends

Over $17B of branded and direct to consumer ecommerce coming into SEA in next 3 years

Page 12: Ardent capital and_thailand_investments_2014-01-15_v3

Unique Market – LINE has 20M users in Thailand…

Source: Statista 2013

Messaging apps are looking to diversify by ecommerce and a mix of:

10 30

50

80100

120

150160

200

230

280300

3040

5060

7080

89 89100 100 100

130

0

100

200

300

400

12-2011 07-2012 01-2013 04-2013 07-2013 10-2013

Line Kakao Talk

Pictures Music Newsfeed Games Stickers

2.814

50

100

151

210 210194

234

272

0

100

200

300

Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013

Page 13: Ardent capital and_thailand_investments_2014-01-15_v3

• LINE platform came out of nowhere in 18 months

• > 20M users in Thailand alone

• Mobile first

• Rivaling and exceeding Facebook member base

• The LINE store has 5.5M friends, majority of which were acquired in 72 hours

• Largest direct to consumer channel in the country, largest active reach

• Most campaigns sell out in minutes

• Last Monday – 700 vouchers, released at mid day, sold out 2 minutes later

• Platform where competitors are now doing

– Movie sales, transactions, music, games, reservations

• What should Facebook do?

LINE Stats for Thailand

aCommerce runs the eCommerce store for LINE

Page 14: Ardent capital and_thailand_investments_2014-01-15_v3

Bangkok is the TOP Facebook city

• Facebook counts > 20M users in Thailand, ranking 16th in the world. The Internet population in Thailand is same as Facebook penetration

Source: http://www.socialbakers.com/blog/647-top-10-biggest-facebook-cities

# City Country Users Penetration

1 Bangkok Thailand 8 682 940 104.34%

2 Jakarta Indonesia 7 434 580 34.10%

3 Istanbul Turkey 7 066 700 62.98%

4 London United Kingdom 6 139 180 73.79%

5 Bogota Colombia 6 112 120 82.15%

6 Sao Paulo Brazil 5 718 220 29.88%

7 Mexico City Mexico 4 294 820 23.30%

8 Santiago Chile 4 129 700 73.35%

9 Mumbai India 3 700 460 18.95%

10 Buenos Aires Argentina 3 533 840 28.52%

Page 15: Ardent capital and_thailand_investments_2014-01-15_v3

Bangkok has the MOST Instragram’d locations

• Siam Paragon was the most Instagram’d location in 2013

• Bangkok International Airport was the most Instragram’d location in 2012

Source: http://blog.instagram.com/post/69877035043/top-locations-2013

# Location Where?

1 Siam Paragon Bangkok

2 Times Square New York

3 Disneyland California

4 Bellagio Fountains Las Vegas

5 Disney World Florida

6 Staples Center Los Angeles

7 Central Park New York

8 Dodger Stadium Los Angeles

9 Bangkok International Airport Bangkok

10 The High Line New York

Page 16: Ardent capital and_thailand_investments_2014-01-15_v3

Smartphone sales are

expected to have a

compound annual growth

rate of 43% from 2008 to

2016, reaching 59 million

units in 2016

Source: GoogleResearch, Euromonitor 2013

Smartphone sales is robust and growing fast

Page 17: Ardent capital and_thailand_investments_2014-01-15_v3

Smartphone sales is robust and growing fast

Source: GoogleResearch, Euromonitor 2013

13.5

20.2

25.83.0

3.8

4.1

3.5

5.8

7.5

1.3

1.7

1.9

4.2

7.0

9.7

2.1

4.6

9.8

0

10

20

30

40

50

60

2008 2009 2010 2011 2012 2013 2014 2015 2016

Sm

art

ph

on

e S

ale

s (

in m

illi

on

s)

Indonesia Malaysia Philippines Singapore Thailand Vietnam

3.4m

6.0m

11m

20m

28m

36m

43m

51m

59m

Page 18: Ardent capital and_thailand_investments_2014-01-15_v3

Mobile and desktop usage is converging in SE Asia

92 91 91 90

86 8582

7671 69

8 9 9 10

14 15 18

2429 31

9594 93 92 92 91 89

86 8885

5 6 7 8 8 911

1412

15

0

10

20

30

40

50

60

70

80

90

100

2010-06 2010-09 2010-12 2011-03 2011-06 2011-09 2011-12 2012-03 2012-06 2012-09 2012-12 2013-03 2013-06

Mo

bile

vs.

Des

kto

p %

Tra

ffic

Southeast Asia Desktop Southeast Asia Mobile USA Desktop USA Mobile

Southeast Asia is outpacing the US toward an equal mobile/desktop traffic share…

Source: StatCounter 2013

Page 19: Ardent capital and_thailand_investments_2014-01-15_v3

Social networks take up a large share of time online

16.1%

19.7%

21.6%

25.4%

30.8%

32.3%

41.5%

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

Singapore

Worldwide

Vietnam

Indonesia

Thailand

Malaysia

Philippines

Social Network Share of Time Spent Online

Source: Southeast Asia Digital Future in Focus 2013, ComScore

Page 20: Ardent capital and_thailand_investments_2014-01-15_v3

Most Promising Emerging Markets for Investors

Page 21: Ardent capital and_thailand_investments_2014-01-15_v3

The Thai Economy: Big

Page 22: Ardent capital and_thailand_investments_2014-01-15_v3

SE Asian countries rank high in ease of doing business

Source: Doingbusiness.org 2013

Page 23: Ardent capital and_thailand_investments_2014-01-15_v3

The Thai Economy: Sophisticated

Page 24: Ardent capital and_thailand_investments_2014-01-15_v3

Thailand - Online Retail Sales Forecasts

0.0

1000.0

2000.0

3000.0

4000.0

5000.0

6000.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

US

$ M

illio

n

Year

Thailand- Online Retailers Segmentation, Sales Forecast by Category (US$ Million), 2005- 15. Source: ICD Research

Furniture & FloorCoverings

Sports & LeisureEquipment

Home & GardenProducts

Books, News &Stationery

Apparel, Accesories &Luxury Goods

Music, Video &EntertainmentSoftwareFood & Grocery

Electrical & Electronics

0.8B1.3B

1.4B

1.5B

2.0B

2.5B

3.1B

3.9B

4.8B

5.6B

0.6B

2010-2015: Compound Annual Growth Rate of 22.78%

Page 25: Ardent capital and_thailand_investments_2014-01-15_v3

The ASEAN Economic Community (AEC)

Free flow of

goods

Free flow of

services

Free flow of

investment

Free flow of

capital

What it

means…

Free flow of

skilled labor

What it is

comprised of…

More attractive to foreign direct

investment

Easier to obtain/move capital across

the region

Easier to recruit talent from countries in

Southeast Asia

Cheaper and easier to sell goods across

borders

Easier to provide services and establish

companies in the region

In 2015, Southeast Asia will transform into an integrated market, making it easier for businesses in Southeast Asia to expand. Thailand is a logical regional hub

Source: ASEAN

Page 26: Ardent capital and_thailand_investments_2014-01-15_v3

• True Incube

• AIS The StartUp

Key Thailand Incubators

• 500K THB (19K SGD) initial investment, with follow on for most

start-ups

• 99 days bootcamp in co-working space

• Business support: 26M customer base, distribution channels, media

support, business partnerships

• Mentorship program including market insights, investor access,

business support, co-working space, and pitching workshops

• StartUp Weekends is a venture competition

Page 27: Ardent capital and_thailand_investments_2014-01-15_v3

• Founders Institute

• dtac Accelerate

Key Thailand Incubators (cont’d)

• World’s largest entrepreneur training and startup launch program

• Active in 55 cities including Bangkok

• 1000 companies participated

• 89.5% survival rate

• 10,000 jobs created

• 20 startups initially selected for the workshop stage

• Selection is subsequently narrowed down to 10

• Finalists present at demo day and winner(s) flies to Silicon Valley

Page 28: Ardent capital and_thailand_investments_2014-01-15_v3

Key Thailand Co-Working Spaces

• Located in Ekkamai

• Hosts various start up events

• Upcoming Start Up Accelerator Program & Demo Day

• Various business and technical workshops

• Ultra High Speed Internet

• Multiple Meeting Rooms

• HUBBA Thailand

• Launchpad• Located in Silom

• 800 sq.m. shared space

• Ultra High Speed Internet

• Six meeting rooms

Page 29: Ardent capital and_thailand_investments_2014-01-15_v3

• Reasonable legal setup (BOI is a great structure)

• Corruption in private sector is low

• Reasonable payments infrastructure

• Good credit card and banking penetration in the population

• Reasonable logistics (transport and traffic are OK)

• High mobile phone penetration (> 100% saturation)

• High smartphone penetration

• High quality mobile broadband

• Large market

• Closed language market, price premium on exit

Why Thailand – highlights.

Page 30: Ardent capital and_thailand_investments_2014-01-15_v3

• We do not start in Singapore

– the market is too small

– the exits are too small

– It proves little, experience not relevant to the rest of SEA

– Too easy, too many competitors

• We do not start in Indonesia

– it is too difficult as a first market, with too many challenges

– Legal, infrastructure, ownership, payments, staffing

• We start in Thailand

– because it is difficult, but not too difficult

– Lessons learnt are applicable to rest of region

• After Thailand

– Indonesia

– Then Philippines, Malaysia, Singapore, and Vietnam

Goldilocks Principle for SEA

Page 31: Ardent capital and_thailand_investments_2014-01-15_v3

Notable investments into Thailand-based companies

Company Date Investor(s)

Q4 2013

Q2 2013

Q3 2013

Q3 2013

Q2 2013

Page 32: Ardent capital and_thailand_investments_2014-01-15_v3

• Building a team is tough– People/HR/Culture scaling - Expertise to build a 500 person team in 18 months

– Tech scaling - Expertise to build tech that scales to 100s of millions of transactions

• Think big vs perceived lack of capital

– Historically have grown from cash flow – small, single markets

– MUST think regional – minimum 3 of 6 markets

– MUST think big problems – little solutions don’t sell for much

• Think exits– Global acquirer doesn’t need your IP

– Does need your people

– So turn the tech model upside down – People are more valuable than IP

Challenges for Entrepreneurs and investors

Page 33: Ardent capital and_thailand_investments_2014-01-15_v3

• Similar to rest of SEA

• Copying is not bad. OK to be inspired by proven models. Execution still very hard

• Focus on three things

– Team – competition is manageable so a strong team has head start

– Total addressable market – is it really big? Are you too early?

– Proven models – give you a roadmap, reduce risk

• Ardent Capital – what are we doing?

– Basic infrastructure

– Transactional commerce – generate real revenue, easier to value, barriers to entry

New Opportunities for Investors and Entrepreneurs

Page 34: Ardent capital and_thailand_investments_2014-01-15_v3

Current Portfolio

S.E. Asia

Thailand

ThailandS.E. Asia

S.E. Asia

Indonesia

Sri LankaGlobal

Page 35: Ardent capital and_thailand_investments_2014-01-15_v3

aCommerce.asia – Built by Ardent Capital

Phone Orders

Storage Picking

Packing

Online Orders Order Processing

Order Documentation

Order Checking

Quality Control

Page 36: Ardent capital and_thailand_investments_2014-01-15_v3

Full End-to-End Solution

Route PlanningDispatching Loading Truck

Loading Motorbike Delivering Credit Card on Delivery

Cash on Delivery Customer Care Center Finance & Accounting

Page 37: Ardent capital and_thailand_investments_2014-01-15_v3

aCommerce Warehouses

Bangkok• Storage Space: 2,600 sqm• Office Space: 500 sqm• Central Bangkok on Rama III Road

• Same day delivery

Jakarta• Storage Space: 1,515 sqm• Office space included• Central Jakarta location

• Same day delivery

Page 38: Ardent capital and_thailand_investments_2014-01-15_v3

aCommerce Clients – All in the last six months

No. 1 Japanese TV

Shopping NetworkNo. 2 Largest Telecom

company in Thailand

Largest Regional Luxury Online

Retailer (Funding $79M)

B2C Beauty & Spa products

distributor owned by IBS BeautyB2B2C platform with 800 brands

and 20,000 different items

Premium Craft Beer with

hundreds of selectioinNo. 1 Online parenting E-

commerce site in Thailand

No. 1 Online Pet food and pet care

E-commerce site in Thailand

No. 1 Largest Retailer

in ThailandNo. 1 Largest Retailer

in IndonesiaNo. 1 cosmetics and beauty

company in the world

Leading online luxury cosmetics

and skin care in SEA

No. 1 messaging app in

Thailand (20M users)

Blackmores, Australia’s leading

natural health brand

Malaysian online buying

and auction site

B2B Beauty & Spa products

distributor owned by IBS Beauty

Page 39: Ardent capital and_thailand_investments_2014-01-15_v3

Overview:

• Highly optimized model around customer acquisition

• Quidsi model in USA (diapers.com, wag.com) – sold to Amazon for $545M

• Petloft is now number 1 in its space in 5 months

Petloft (Pet Supplies) & Venbi (Parenting)

WhatsNew Thailand – Vertical eCommerce

Key Data• Annualized run rate revenue: $2M• Monthly Burn rate: $100K• Staff: 12• Funding to date: $700K

Three months’ top line average monthly growth of 47%

Page 40: Ardent capital and_thailand_investments_2014-01-15_v3

Thank you

Adrian Vanzyl CEO & Co-FounderEmail: [email protected]+66 81 930 8308

946 Dusit Thani Building, 4th fl.,Rama IV Rd. Bangrak, Bangkok,10500 Thailand

Thank you

Page 41: Ardent capital and_thailand_investments_2014-01-15_v3

• Additional data slides follow.

Support Slides

Page 42: Ardent capital and_thailand_investments_2014-01-15_v3

36,39237,185

36,817

34,822

36,473 36,161

2007 2008 2009 2010 2011 2012

Japan

43,228 43,636 43,070

41,366 42,001 42,447

2007 2008 2009 2010 2011 2012

USA

6,737

7,049 6,913

6,691

7,425 7,640

2007 2008 2009 2010 2011 2012

Southeast Asia’s Average

Source: Trading Economics

Double Digit GDP Growth from 2007 to 2012

60%

5%

26.5%

14.0%

15.5%

12.8%

9.8%30.2%

Cumulative Growth in GDP per Capita 2007-2012

In contrast to the USA and Japan, Southeast Asia has experienced double-digit growth in GDP per capita from 2007 to 2012

Page 43: Ardent capital and_thailand_investments_2014-01-15_v3

And further GDP growth is expected

36,161 36,963

41,486 42,085

2012 2013 2014 2015

Japan

42,447 43,112

38,975 39,399

2012 2013 2014 2015

USA

Source: Trading Economics

7,640 7,704

8,582 8,927

2012 2013 2014 2015

Southeast Asia’s Average

60%

5%

18.8%

15.5%

8.8%

18.1%

6.7%

1%

17.7%

Cumulative Growth in GDP per Capita 2012-2015

Page 44: Ardent capital and_thailand_investments_2014-01-15_v3

Source: Euromonitor

Disposable income has increased since 2007

-

10,000

20,000

30,000

40,000

50,000

60,000

2007 2008 2009 2010 2011 2012

USA Disposable Income per Capita [Male] (US$)

-

10,000

20,000

30,000

40,000

50,000

60,000

2007 2008 2009 2010 2011 2012

USA Disposable Income per Capita [Female] (US$)

Avg. CAGR = 2.37%

Avg. CAGR = 1.58%

-

10,000

20,000

30,000

40,000

50,000

60,000

2007 2008 2009 2010 2011 2012

Disposable Income per Capita [Female] (US$)

Singapore Vietnam Thailand

Philippines Malaysia Indonesia

-

10,000

20,000

30,000

40,000

50,000

60,000

2007 2008 2009 2010 2011 2012

Disposable Income per Capita [Male] (US$)

Singapore Vietnam Thailand

Philippines Malaysia Indonesia

Avg. CAGR = 9.26%

Avg. CAGR = 9.72%

Page 45: Ardent capital and_thailand_investments_2014-01-15_v3

-

10,000

20,000

30,000

40,000

50,000

60,000

2012 2013 2014 2015

Disposable Income per Capita [Female] 2012-2015 (US$)

Singapore Vietnam Thailand

Philippines Malaysia Indonesia

-

10,000

20,000

30,000

40,000

50,000

60,000

2012 2013 2014 2015

Disposable Income per Capita [Male] 2012-2015 (US$)

Singapore Vietnam Thailand

Philippines Malaysia Indonesia

Source: Euromonitor

…and will continue to grow

Expected Avg. CAGR 6.63%

Expected Avg. CAGR7.16%

-

10,000

20,000

30,000

40,000

50,000

60,000

2012 2013 2014 2015

USA Disposable Income per Capita [Male] 2012-2015 (US$)

-

10,000

20,000

30,000

40,000

50,000

60,000

2012 2013 2014 2015

USA Disposable Income per Capita [Female] 2012-2015 (US$)

Expected CAGR 3.54%

Expected CAGR 3.14%

Page 46: Ardent capital and_thailand_investments_2014-01-15_v3

Source: The Digital Media and Attitudes of Southeast Asian Consumers 2011, Nielsen; eMarketer

14

19.821.5

25

16.6 16

20.5320.3

10.6

13.312

10.9

16.6

35.7

8.3

5.8 6.37.5

5.2 4.8

14

4 4.3 3.65

3.7 3.92.22

Indonesia Malaysia Philippines Singapore Thailand Vietnam USA

Hours Spent per Week on Media

Internet TV Radio Newspaper

Internet is the number one medium

Unlike the US, internet has surpassed TV in most Southeast Asian countries as the #1 medium

Page 47: Ardent capital and_thailand_investments_2014-01-15_v3

7.0 8.9 11.6 16.7 19.1 20.5 22.2 24.4 27.1

30.4 34.5

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

11.1 13.0 13.6 17.2 20.2

23.9 25.9 27.9 30.0 32.0 33.9

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

18.0 18.3 18.6 22.2

30.9 34.6 37.5 40.3 43.2 46.1 49.1

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

0.2 0.2 0.3 0.5 0.8 1.2 1.5 1.8 2.2 2.6 3.0

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

5.8 5.9 6.2 7.2 9.6 11.4 12.5 14.0

15.8 18.1

20.8

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

14.0 16.4 17.5 20.1 25.2

29.7 32.8 36.0 39.3 42.7 46.1

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Credit card usage has increased significantly

Source: Euromonitor

Credit Card Transaction Value ($US Billion)

Indonesia

Malaysia

Philippines

Singapore

Thailand

Vietnam

Page 48: Ardent capital and_thailand_investments_2014-01-15_v3

Credit card and transaction volume will also grow

42,159 47,631 49,351 50,265

53,254 56,071 58,856 61,609 64,248 66,749 69,101

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Number of Credit Cards in Southeast Asia (‘000s)

$56.12

billion

$187.35

billion

2007 Southeast Asia

Credit Card Transaction

Value

2017 Southeast Asia

Expected Credit Card

Transaction Value

Source: Euromonitor

234%

Cumulative Growth

903 983 1,124 1,179 1,225 1,279

1,439 1,605 1,678

1,857 1,942

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Number of Credit Card Transactions in Southeast Asia (millions)

Page 49: Ardent capital and_thailand_investments_2014-01-15_v3

Online Advertising is Totally Out of Line

In Southeast Asia, people spend 44% of their media time online, but only 2% of advertising spending is devoted to online advertisement; however, e-commerce is changing this

Source: Euromonitor, Nielsen

50.87%

34.48%

4.79%1.88%

32.32%

9.46%

14.63%

43.59%

0%

10%

20%

30%

40%

50%

60%

TV Print Radio Online

% of Total Ad Spend vs % of Total Time Spent on Media

% Ad Spend % Time Spent

out of line

Page 50: Ardent capital and_thailand_investments_2014-01-15_v3

Biggest player in SEA - Who is Rocket Internet?

Rocket Internet has built over 100 companies in 50+ Countries

Started in 2007; headquartered in Berlin

75+ active independent portfolio companies

Employing over 27,000 people

Raised over $1bn in 2012

30+ exits

$2.5bn+ in revenue

7 companies currently in SE Asia

IndonesiaMalaysiaPhilippinesSingapore ThailandVietnam

IndonesiaMalaysiaPhilippinesThailandVietnam

Indonesia

IndonesiaMalaysiaSingaporeVietnam

IndonesiaMalaysiaSingapore ThailandVietnam

IndonesiaMalaysiaPhilippinesSingapore

MalaysiaPhilippines

Page 51: Ardent capital and_thailand_investments_2014-01-15_v3

Started in Dec 2011

Adaptation of Zappos.com

1,300+ employed across the region

Annualized Gross Run Rate: €115mm

Well over $126mm in funding

Spent over $23mm in marketing in 2012

Rocket’s SE Asia bets:

Started in Feb 2012

Adaptation of amazon.com and alibaba.com

900+ employed across the region

Annualized Gross Run Rate: €92mm

Well over $185mm in funding

INVESTORS:

Page 52: Ardent capital and_thailand_investments_2014-01-15_v3

1.95

2.71

3.86

4.80 5.07

7.57

9.90

13.05

2005 2006 2007 2008 2009 2010 2011 2012

Online Retail Sales Value in Indonesia, Malaysia, Philippines, Thailand (US$ Billion)

E-commerce has seen spectacular growth in SE Asia

Source: Online Retailers in Emerging Asia to 2015, ICD Research

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1550

684 679430 328

2351

12601086

628490

Vietnam Indonesia Thailand Philippines Malaysia

Unique Visitors (‘000s)

Rocket Internet’s Lazada is catching up

…while Amazon is losingvisitors

Mar 2013

Sep 2012

Mar 2013

Apr 2012

+52%

+84%

+49%+46%

+60%

-20%

-26% -5%-5%

-28%

166

295

137182

577

123

235

133173

416

Vietnam Indonesia Thailand Philippines Malaysia

Source: Southeast Asia Digital Future in Focus 2013, ComScore

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More people living inside this circle than outside

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Overview:

• Little competition, > 90% market share

• Path to exit started with 26% sale to Dialog/Axiata(dominant carrier)

• Full product selection

• 100+ staff

Anything.lk

Anything.lk – The Amazon of Sri Lanka

Key Data• Annualized run rate revenue 2014: $5.8M• Monthly Burn rate: $112K• Staff: 108• Funding to date: $2M