Guga Stocco

Vice-President
guga@buscapecompany.com facebook.com/gugastocco

Services
Business Development and Strategy M&A Merges and Acquisitions Mobile Developers LABs

Units
Advertising (Lomadee, Navegg) Social Commerce (Saveme) Startups (ModaiT, Urbanizo, Hot Mart, ShopCliq.it, Recomind) Innovation Inovaparq, Parsons

NASPERS

Naspers: Overview
Naspers (Buscapes holding company) is one of the largest Media/Internet companies in the world
Companies listed Naspers group Comparable Media Companies

1,2

463

116 100 58 48

Nasperss stock has outperformed its competitors

Source: Capital IQ (May 4, 2011) Notes: 1. Index base 100 = January 1, 2005 - 2. Period from January 1, 2005 and May 3, 2011

Naspers

Thonson Reuters

News Corporation

eBay

Yahoo!

Naspers: Case Study - Tencent

Tencent is the largest provider of integrated services in the world, achieved by constantly adding features that allow interactivity among consumers

Evolution of EBITDA (US$ Million) and Services Offered

Search Engine MMOG Social Network Portal Games Online Games Online Portal Games Online Social Network Portal Games Online
1

Search Engine
1

MMOG Social Network Portal

MMOG Social Network Portal

MMOG Social Network Portal

MMOG Social Network Portal

Games Online

Games Online

Games Online

Games Online

Internet VAS
Mobile VAS Instant Messaging Mobile VAS Instant Messaging

Internet VAS
Mobile VAS Instant Messaging

Internet VAS
Mobile VAS Instant Messaging

Internet VAS
Mobile VAS Instant Messaging

Internet VAS
Mobile VAS Instant Messaging

Internet VAS
Mobile VAS Instant Messaging

Internet VAS
Mobile VAS Instant Messaging

Internet VAS
Mobile VAS Instant Messaging

Internet VAS
Mobile VAS Instant Messaging

Naspers invests in Tencent

Since Naspers investment in 2001, Tencent has created a complete portfolio of products and services based on its original instant messaging platform
Sources: Tencent, Capital IQ (january 28, 2011) - Note: 1. Massive multiplayer online game

Naspers: Investment Example: DST

DST, one of the largest investors from Russia (Mail.Ru, the largest online portal in Russia, is one investment), has strategic investments worldwide. DST, and Naspers, via its 33% stake, are major stakeholders in Facebook Investment DST (illustrated)
Other investors

Facebook: Stock Position

Mail.Ru: Measurement of the market

Mail.Ru: 4 years with Naspers (Revenue US$M) 24%

Yuri Milner

22x
Digital Sky Technologies (DST)
10%

Ecosystem DST

6% Tencent: 4 years with Naspers (Revenue US$M) 5%

30x
Russia Business Mail.Ru Portal e Email (#1) Games@mail.ru Portal e Email (#1) Instant Messaging (#1) International Business Groupon Collective Buying Zynga Games Portal

4%

4% EBITDA FWD: 4 years with Naspers

Market value: US$ 6.467B EBITDA FWD: US$ 211M

Head Hunter Recrutamento Online (#1)

VKontakte Rede Social (#1)

29.9x 20x

Sources: Capital IQ (May 4, 2011), Mail.ru, Naspers, poca

Naspers: Case Study - Tencent

Naspers is a global company, yet focused in Emerging Markets
By focusing on Emerging Markets, Naspers has been able to grow substantially faster than the principle players in its segment

12% 54% 11%

15%

8%

Sources: Naspers, Capital IQ Note: 1. LTM: 12 months ended September 30, 2010

Naspers: Internet Division Growth

The internet is Naspers 2nd largest business and growing the fastest

Tencent (34% ownership) Mail.ru (29% ownership) Allegro (97% ownership) Buscape Company (95% ownership)

Multichoice (80% ownership)

Media24 (85% ownership) Abril (30% ownership)

Beijing Media (10% ownership) Xinan Media (37% ownership)

Irdeto (100% ownership)

Revenue growth YoY (%)

26%

47% 20% 6% 24%

54%

3%
Total Net Revenue: U.S. $ 2.2B

-1%

Source: Naspers / Note: Half ended September 31, 2010

Naspers: Latin America

Buscape is, effectively, the investment arm and corporate umbrella for related companies in Latin America.

Since 2006, Naspers has invested approximately US$1B in Latin America

Source: Naspers / Note: Half ended September 31, 2010

Buscap Company

Buscape Company: In Numbers

25 Companies 35 Founders 6M Registered Users 1,200 Employees 3000 Categories 11 M Offers

Sources: Naspers, Buscape Company

Buscape Company covers the entire e-commerce value chain...

Purchase Cycle

AWARENESS

INTEREST

DECISION

ACTION

POST SALE

RESALE

Consumer Needs

Product Awareness

Product Information

Price Comparison

Convenient & Secure Payment Option

Sharing the Experience

Liquid Resale Market

Advertiser Needs

Broad Network Access

Access at Product Decision

Access at Purchase Decision

Easy Conversion to Sale

Viral Marketing

Access Prior to Next Purchase

Services

Ad Network & Affiliates

Shopping Info

Comp Shop & Lead Generation

Payments & Financial Services

Market Intelligence

Classifieds

Minority Stake

Behavior Marketing

Challenges

Challenges - Media

Challenges - Mobile
Caso Mixi: Evoluo de Audincia Desktop vs Mobile (bilhes de page views por ms)

30,8

30,3 28,9

22,3

25,8 14,4 11,3

14,5

14,5

14,9

15,8 17,0

25,3

24,3

84%

12,1

13,0

13,4

12,0 11,5

10,3 8,0 6,3 1,5 8,9

2,0

3,5

4,8

6,1

6,8

7,8

8,5

9,6

10,1

10,5

10,9

17% 83%

1,1 5,2 6,5 6,9

6,8

6,5

6,0

5,3

5,3

4,9

4,8

4,4

4,0

4,0

4,3

5,3

5,0

5,0

4,6

16%

2T06

3T06

4T06

1T07

2T07

3T07

4T07

1T08

2T08

3T08

4T08

1T09

2T09

3T09

4T09

1T10

2T10

3T10

Desktop page views

Mobile page views

Tesco Video
Fonte: Web 2.0 Summit (Morgan Stanley)

Challenges - Platforms
Google Facebook Apple (iPhone + iPad)

Busca
Usurios nicos (em 2010 - milhes de usurios)

Rede Social

Mobile

Crescimento de Usurios nicos (2010 versus 2009)

940

111% 620
51% 120 11% Google Facebook iPhone + iPad

Google

Facebook

iPhone + iPad

Google, Facebook e Apple so as trs plataformas que detm o maior nmero de usurios online. A boa utilizao destas plataformas proporciona inigualvel conhecimento sobre os hbitos e preferncias destes usurios
16
Fonte: Web 2.0 Summit (Morgan Stanley)

Challenges - BRIC
India: 438 languages, 1.1B people, union of 28 States and 7 territories in 3.2 Km2 Retail: US$ 435 B in 2010 US$850 B in 2020 New entrants: Wall Mart and others Retail: unstructured, street markets

Challenges - BRIC
Developed Markets BRIC Markets

Challenges Case Central

Central: First store in 6 months Idiom: Leading the concept Process: Reinvented

Path to Innovation

Path to Innovation

Path to Innovation - Scissors

Path to Innovation Western Roll

Path to Innovation Straddle

Path to Innovation Fosbury Flop

Path to Innovation

You dont beat the incumbents, you redefine the problem and make them IRRELEVANT
Paul Graham

Path to Innovation

This requires the ability to imagine That which does NOT exist
Alexander Osterwalder & Yves Pigneur

Path to Innovation Effectual Logic

New Product

Suicide Quadrant

Start Up Companies!

Existing Product

Business As Usual
Existing Market New Market

Source: What makes entrepreneurs entrepreneurial?, 2001 Saras D. Sarasvathy University of Washington, School of Business

Tools to Innovation

Scrum Canvas Lean Startup Design Thinking Extreme Computing HDC Human Centered Design

Stratos Video 3:50/4:31

Tools to Innovation - Canvas

Value Proposition Key Activities Key Partners Customer Relationships Customer Segments

Cost Structure Key Resources Channels

Revenue Streams
BMG

Tools to Innovation Customer Segment

Tools to Innovation Value Proposition

Tools to Innovation Channels

Tools to Innovation Customer Relationships

Tools to Innovation Revenue Streams

Tools to Innovation Key Resources

Tools to Innovation Key Activities

Tools to Innovation Key Partners

Tools to Innovation Cost Structure

Lean Startup

Lean Startup
MVP - Minimum Viable Product: - Testar as suas hipoteses de negocio sem ter todas as funcionalidades prontas Continuos Deployment: - Ciclos de desenvolvimento e ajustes. Spliting Testing A/B: - Teste de novas funcionalidades constantemente e em tempo real. Vanity Metrics: - Mtricas de sucesso, quantidade de usuarios, faturamento por usuario, analisa de safra e etc Pivot: - Correcao do rumo do negocio conforme o resultado dos testes e sucesso do seu MVP.

42

Be an Executioner

Idia sem execuo alucinao

Kevin Turner, Microsoft

43

Getting Real 37signals

Product Development

HDC Human Centered Design

Literatura

46

http://suaideiavale1milhao.com.br/

Fore Thinking

Fore thinking Singularity 3D Printing Artificial Intelligence Synthetic Life Interfaces Drones

Fore Thinking: Singularity

Fore Thinking: Synthetic Life

Fore Thinking: Drone. 3D Printing and AI

Fore Thinking: Interfaces

Leap Corning

Guga Stocco Vice-President guga@buscapecompany.com facebook.com/gugastocco

TESCO: http://www.youtube.com/watch?v=UlTMIFjK2ak
DRONES: http://www.youtube.com/watch?v=4ErEBkj_3PY DRONES WAR: http://www.youtube.com/watch?v=SNPJMk2fgJU

3D Printing: http://www.youtube.com/watch?v=8aghzpO_UZE
Singularity: http://www.youtube.com/watch?v=kJDvdEQJOew ToughWorks: http://www.slideshare.net/dineshtantri/e20-thoughtworks Bacterial Robots: http://www.slideshare.net/jbarkeloo/bacterial-roboticsand-pilus-energy Corning: https://www.youtube.com/watch?v=jZkHpNnXLB0 Office: http://www.microsoft.com/office/vision/ Checklist: http://www.youtube.com/watch?v=giTDYBXx7FE (3:50min // 4:31)