Leju Holdings Limited

Transcription

1 Leju Holdings Limited Investor Presentation June 2014

2 Disclaimer This presentation contains forward-looking statements. These statements include descriptions and information regarding the intent, belief or current expectations of the Company or its officers about the future. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions, many of which are beyond the Company s control. Neither the Company nor any of its affiliates, advisors or representatives has any obligation to, or undertakes to, revise forward-looking statements to reflect future events or circumstances. This presentation also contains non-gaap financial measures, which are provided as additional information to help you compare business trends among different reporting periods on a consistent basis and to enhance your overall understanding of the historical and current financial performance of the Company s operations. The Company believes that both management and you benefit from referring to these non-gaap financial measures in assessing the Company s performance and when planning and forecasting future periods. These non-gaap financial measures should be considered in addition to results prepared in accordance with the U.S. GAAP, but should not be considered a substitute for or superior to the Company s GAAP results. In addition, the Company s calculation of these non-gaap financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. THE INFORMATION CONTAINED IN THIS DOCUMENT IS HIGHLY CONFIDENTIAL AND MAY NOT BE FORWARDED, PUBLISHED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON (WHETHER WITHIN OR OUTSIDE YOUR ORGANIZATION/FIRM) FOR ANY PURPOSE AND MAY NOT BE REPRODUCED IN ANY MANNER WHATSOEVER. ANY FORWARDING, PUBLICATION, DISTRIBUTION OR REPRODUCTION OF THIS DOCUMENT IN WHOLE OR IN PART IS UNAUTHORIZED. By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided. Participants agree further not to photograph, copy or otherwise reproduce these materials in any form or pass on these materials to any other person for any purpose. Participants must return this presentation and all other materials provided in connection herewith to the Company at the completion of the presentation. By participating in this presentation, participants agree to be bound by the foregoing restrictions. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. 1

3 Business Overview 2

4 Leading O2O Real Estate E-commerce Platform Consolidation of Leju 2009 JV with SINA 2008 E-commerce 1.0 to % E-House acquired a controlling stake in Leju in 2009 E-House and SINA established JV to offer online advertising services Launched the first real estate e- commerce product in 2011 Open platform and enhanced purchasing power to home buyers Mobile E-commerce 1.0 March 2014 IPO on NYSE April 17, 2014 Strategic cooperation relationships with Weibo and Weixin 3

5 Our O2O Real Estate Services Our services Business covered Our customers Revenue model E-commerce Sales of discount coupons Detailed online property viewing for buyers Free physical property and showroom visits arrangement Arrange phone calls between buyers and developers New residential properties Home buyers Real estate developers Home furnishing suppliers Home buyers receive a discount upon home purchase when coupon is redeemed Revenue recognized when confirmation of discount coupon redemption is received Pre-sale customer support Arrange real estate exhibitions for developers Online advertising Online advertising services on SINA s and Baidu s new residential properties and home furnishing websites, as well as our own websites New residential properties Home furnishing Real estate developers Home furnishing suppliers Advertising contracts are signed between Leju and developers and home furnishing suppliers Revenue recognized ratably over the advertising contract period Listing Offer fee-based and verified listing services to real estate brokers for authentic listings Existing residential properties Secondary real estate brokers Individual property owners Revenue recognized ratably over the contract period of display for brokers and free of charge for individuals 4

6 Business Updates Strategic cooperation with Tencent: Weixin sales center currently under development Tencent became strategic investor Mobile ecommerce 1.0 platform including Weibo sales center Mobile APP Fangniujia IPO on NYSE on April 17, 2014 Q Earnings Summary Total revenues increased by 97% year-on-year to $78.5 million Revenues from e-commerce services increased 238% year-on-year to $49.7 million Non-GAAP income from operations was $8.4 million (10.7% margin) Non-GAAP net income attributable to Leju shareholders was $7.7 million (9.7% margin) 5

7 Summary Investment Highlights 1 Comprehensive online real estate platform attracting customers from major internet and mobile entry points 2 Leading innovator in China s O2O real estate services pioneering e- commerce and mobile products 3 Strong O2O service platform combining extensive online services with complementary offline support 4 Scalable business model with high operating efficiency 5 Experienced and motivated management team 6

8 Open Online and Mobile Platforms Attract the Maximum Number of Potential Buyers Operates the real estate online platform of China s leading internet media company 110 mn visits on SINA per day (1) Leading Chinese language search engine 200 mn visits on Baidu per day (1) 微 信 Leading mobile messaging application in China Leading social media platform in China China s first mobile real estate e- commerce platform Mobile application for real estate brokers Weixin Leju Weibo Leju Pocket Leju Fang Niu Jia PC + Mobile Platforms Real estate services E-commerce Home buyers Real estate developers Home furnishing suppliers (1) Based on Alexa estimates as of Feb 9, 2014 Online advertising Real estate developers Home furnishing suppliers Listing Secondary real estate brokers Individual property sellers 7

9 Comprehensive Online and Offline Services Lead to Successful O2O Service Model Detailed online property viewing Targeted housing search function Convenient online registration for property visit Online Maximum exposure to potential buyers Accurately measure the marginal improvement in property sales through discount coupons redemption Various online marketing tools in addition to traditional offline marketing channels Prospective home buyers Free physical property visit arrangement Pre-sale customer support Phone call arrangement with developers Receive discount on purchase price Offline Real estate exhibitions Bring in prospective home buyers to showrooms Phone call arrangement with prospective buyers Marketing events Developers 8

10 O2O E-commerce Experience for PC Customers Home buyer SINA Leju Baidu Leju, Brand Link SINA Weibo (PC) Online Offline Leju 400 Service Hotline Registration for property visit Showrooms Purchase discount coupon Refund Leju E-commerce platform Third party payment platform POS Transaction completed 9

11 Enhanced Closed-loop E-commerce Platform PC + Mobile and Customer + Business Refund User account Refund Customer Platform SINA Leju Baidu Leju, Brand Link Leju 400 Service Hotline SINA Weibo (PC) Home buyer Mobile platform (Weibo / Weixin) Customer Platform PC Leju E-commerce platform Third party payment platform POS Transaction completed Purchase discount coupon Showroom Registration for property visit Purchase discount coupon Leju E-commerce platform Mobile Payment Platform Transaction completed Mobile Online Offline Home Buyer Cloud data Fang Niu Jia Agent A Agent B Agent X Settlement and payment of commission Leju Fang Niu Jia Mobile Platform Business Platform Mobile 10

12 Weibo Online Sales Center from Mobile App Interactive features create better user experience Price details 400 service hotline (press to make the call) Sign up discount coupons Sign up for a bus tour Purchase discount coupons Pictures of the property selection Price trend and analysis 11

13 Online Advertising Platform with Multiple China Internet Entry Points through Strategic Partners China s leading internet media company China s leading search engine platform We operate SINA s real estate website and home furnishing website Leju is entitled to all advertising revenues from these platforms Leju is also the exclusive advertising agent of SINA s homepage and non-real estate websites until 2024 entitled to 85% of the revenue derived from real estate and home furnishing advertising on these websites Service offerings include: online advertising, sponsorship arrangements, outsourcing arrangements and keyword advertising We launched Baidu s real estate website and home furnishing website in Aug 2010 Leju is the exclusive real property advertising partner of Baidu We have exclusive right to build and operate all of Baidu s websites related to real estate and home furnishing until Mar 2015 entitled to retain all such advertising revenues in exchange for a fixed fee paid to Baidu We have obtained the exclusive right to sell Baidu s real estate Brand-Link product to advertisers Service offerings include: search-based advertising Aided by strategic partners strong brand recognition, market influence in China s online space and their large user base, we help real estate advertisers reach their target audiences in many of China s major cities 12

14 Secondary Property Listing Platform esf.sina.com.cn and esf.baidu.com Search function enabling users to look for their preferred properties conveniently Users can search for their preferred properties by location, price, types, names of properties, etc. Ranking of the most popular property listings sorted by different price ranges Property certification enhance viewers confidence in the accuracy and reliability of property listing information Property listing with the V certified logo means that property agent has been screened by different criteria, including mandate by the property owner, property rights, verified property price, etc Multiple portal entry through SINA Leju and Baidu Leju 13

15 Experienced and Motivated Management Team Dedicated, experienced operating team Xin Zhou Executive Chairman Chairman since inception Co-founder of E-House Over 20 years of experience Deep industry expertise in real estate services and internet Yinyu (Geoffrey) He Chief Executive Officer Previously vicepresident of Leju Li-Lan Cheng Executive Director COO of E-House Previously CFO of E-House and former CFO of SouFun Strong innovation capabilities and proven execution capabilities Weijie Ma Co-President Deputy CFO of E-House Previously financial controller of E-House Keyi Chen Co-President Previously general manager of our Beijing branch Driven by strong motivation and incentives Min Chen Chief Financial Officer Previously MD, head of Asia corporate finance and head of China real estate and lodging at BoAML Strategic planning leading to significant growth opportunities 14 14

16 Financial Highlights 15

17 Strong Growth Momentum and Compelling Revenue Model Substantial growth in revenue brought by E-commerce business through sales of discount coupons (US$ mn) FY2011 FY2012 FY2013 1Q2013 1Q2014 E-commerce Online advertising services Listing services E-commerce Online advertising services Listing services 16

18 Scalable Business Model with High Operating Efficiency Improving income (loss) from operations (1) Rapid growth of net profit attributable to shareholders (2) (US$ mn) 22.1% (US$ mn) % % % % % NM (3) NM (3) NM (3) NM (3) 2.2 (2.6) (9.0) (10.9) (9.8) FY2011 FY2012 FY2013 1Q2013 1Q2014 FY2011 FY2012 FY2013 1Q2013 1Q2014 (1) Adjusted income (loss) from operations is arrived by adjusting the GAAP income from operations by share-based compensation expense, amortization of intangible assets resulting from business acquisitions and goodwill impairment charge (2) Adjusted net income (loss) attributable to Leju shareholders is arrived by adjusting the GAAP net income (loss) attributable to Leju shareholders by share-based compensation expense (net of tax and NCI), amortization of intangible assets resulting from business acquisitions (net of tax and NCI) and goodwill impairment charge (net of tax and NCI) (3) NM indicates Not Meaningful 17

19 Key Financial Statement Items Income statement items (US$ mn) FY2011 FY2012 FY2013 1Q2013 1Q2014 E-commerce Online advertising services Listing services Total revenues Gross profit Income from operations (439.9) (46.2) 45.9 (9.6) 2.0 Net income (loss) attributable to Leju shareholders (2) (438.8) (44.8) 42.5 (9.8) 2.2 Non-GAAP measures: Adjusted income (loss) from operations (1) 12.8 (9.0) 74.2 (2.6) 8.4 Adjusted net income (loss) attributable to Leju shareholders (2) 10.9 (10.9) 63.0 (4.3) 7.7 Margins and growth rates FY2011 FY2012 FY2013 1Q2013 1Q2014 Revenue growth (yoy) NA 25.0% 95.8% % 238.5% Adjusted operating margin (1) 9.3% (5.2%) 22.1% (6.6%) 10.7% Adjusted net margin (2) 7.9% (6.4%) 18.8% (10.8%) 9.7% Note: (1) Adjusted income (loss) from operations excludes goodwill impairment, share-based compensation and business acquisition amortization. (2) Net income (loss) to shareholders excludes goodwill impairment, share-based compensation and business acquisition amortization. 18

20 Key Financial Statement Items (Cont d) Key Balance Sheet Items (US$ mn) FY2011 FY2012 FY2013 1Q2014 Cash and cash equivalents Accounts receivable Total current assets Intangible assets, net Total assets Total liabilities Total shareholders equity Key Cash Flow Statement Items (US$ mn) FY2011 FY2012 FY2013 1Q2014 Net cash provided by operating activities Net cash used in investing activities (26.6) (18.2) (16.7) (0.3) Net cash from financing activities (41.4) (5.1) Net increase in cash and cash equivalents Ending cash balance E-commerce operating data 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 # of discount coupons issued 23,125 40,274 75,082 92,527 48,440 # of discount coupons redeemed 12,696 24,072 39,654 59,684 33,872 19

21 Thank You! IR contact: Melody Liu +86 (10)