EFTA01457515

18 May 2015 Software & Services Saldu Model updated:304prd 2015 liurining the nunitime. Asia China Software & Services Bardu Reuters: 131DU 00 Buy Price (15 May 15) Tingel Pnco 52 Week range Mai kot Cap Cm) Bloomberg: BIDU US USD 192.98 USD 239.00 USD 154.77 - 250.34 EURm 58.972 USDm 67.453 gad.. is a lead.n; internat search engine operatu in China The company offers a variety of search ‚emcee including sagemthme math. enterprise search, and music. news and image search The company generates mytnie horn selling pey4or-perlormence keyword mks i Proch Fenkom:Inc° 290 240 200 160 120 80 40 May 'Aug 'Nov • 3Fab '4I4y ‚ alg/ 1810v .440 18 —be HMO SEW INDEX fRaftiall 11.4bigill 1 re talc 60 50 40 30 20 '2 '3 14 teeTIMilmon Clieeeth & h ol thank!? 00 9 swo 30 i 20 10 O ISE 166 17E mn iwon r g° IN..ss.„..........„._.„.• i. 00 . I' 40 1 • W i- 20 ill li i i:it O 10 12 13 m USE teE 17E tialeagreweiCUISI --11/— ROE Melia Solvent:: O -20 -40 60 -100 -120 12 13 la I% 1114 I7E INNOMIONg h 1.1bSIMEY 11.149 ~al Wew freer Alan 110!lay.,e11 Ill .852 2203 6240 Page 2 sten helswellt54bcom Racal gar end 31-Dec ł ntanced Surmeater 2012 2013 2014 2015E 20113E 2017E 08 EPS 'Cetel 30.50 31 49 40 24 4954 8884 83.23 Reported PS IWO 2989 30 02 37 60 4526 61 SO 77 06 WSIOM 000 000 000 000 000 000 I3VPS (CNY) 74.6 109.8 147.1 198 8 268.7 352.0 Weighted average same Ind 349 350 350 351 351 352 Average market cap (Elami 284,914 259.733 417.178 419.557 419057 416557 Enterprise 'Mug (CNYm) 235.005 242.209 387/48 367.724 3421191 312.263 Valuatlinn Menem PIS (oB/ IM 20.9 23.5 29.6 24.2 17.9 14,4 P/E (Reported) ex) 25 4 248 31 7 285 194 15.5 PailV (0) 8.49 990 9.55 599 440 3.40 FCF Yield OM 30 4.2 3.2 52 0.1 7.7 Dividend Yield MI 00 0.0 0.0 00 0.0 0.0 EV/Salas 105 7.6 7.9 54 39 2.7 EY/EBITDA 18.7 17.5 23.1 190 138 97 EV/EBIT 21.3 21.8 30.3 230 15.0 104 Inimnue Siatiuri..in (CNY rei Sales morsa 22.300 31,944 49.051 61.165 owns 113.996 Gron prole 17.383 23,148 34,139 43.919 56.201 71,681 EMMA 12.567 13.844 18.778 19.384 25.129 32.248 DepretketiOn 1.515 2.852 3.972 3.387 2.216 2.280 Amortisation O O O O 0 0 EMT 11,051 11,192 12.904 15.996 22.913 29.908 Net interest incornegexPenme) 759 $51 1.304 1.022 1.935 2.100 illissocatestatfilietes O O O O O O Exceptionalstextraorclinanes O 0 0 0 0 0 Other pre am incomMexpemel 156 132 307 366 364 364 Probi before tar 11.965 12.193 16475 17.993 25.211 32,492 Income let expense 1.574 1.829 2.231 3.014 9008 0.777 Wormer* -65 -163 -044 -1.524 -1.524 -1.524 Other post-tax incometteMensel O O O O O O Net profit 10,456 10,519 13,197 15,993 21.727 27,238 08 adjustments (nieludna dilution) 212 516 928 1.503 1.773 2.102 08 Net profit 10.1388 11.034 14,115 17,397 23.500 29.420 [Gash Fiow (CNYm) Caen flow trem operations 11.908 13.657 18.091 24.741 29.334 36.873 Net Caws -2.311 -2.757 4.927 -2.710 -3.548 -4.559 Free cash flow 9.597 10,901 13.263 22.031 25.789 32.313 Emory raded/Mought beck) 157 1.554 2.040 0 0 0 Dividends paid 0 0 -338 -CO 419 -709 Net inctideci in borrowings 9.389 6025 7.708 0 0 0 Other investing/teaming ciba tows -11.478 -20.903 45269 4 0 0 Net cash flow 7.665 -2.324 0 21.622 25,270 31.604 Change in *irking end's! gaia: ice Sheet 696 1,119 3300 2,928 3,887 5,831 Cash and other liquid MINIS 32.880 38488 59.084 79.706 104,976 138,580 Tanga:le axed mea 3.938 5,370 8,705 8.028 9,357 11,637 Goodweentangble assets 5.465 20695 20993 20423 20.993 20993 Associateshnvestrnents 803 835 2979 2.871 2,871 2.871 Other assets 2.632 5.900 9.000 10.188 12.909 15.622 TOW Meta 45.669 70.986 99.661 121.767 151.107 187.703 Imereet bearing debt 2.615 20.556 28.553 30.298 32,249 34.749 Other liabilities 15.838 9,764 18.603 19.965 24,811 93.654 Tota/ I watrIrtoes 18.451 30,321 45,156 50.253 56,860 85,403 Shareholders' equity 26.065 38.425 51.528 70,058 94.315 123.892 Minorities 1.160 2.240 2.990 1.456 .69 -1.592 Total Owa holden' ewie 27.215 40.665 54,508 71.514 94.247 172.300 MR debr 44265 -14130 -24531 -090178 .74726 -101,831 (KEY Company Matt its Sean growth Cal 53.8 43.2 53.6 38.1 30.8 29.6 08 EPS growth 57.0 3.3 279 23.1 34.9 24.5 EBRDA Margin Wei 583 43.3 34.2 28 8 28.4 283 EMT Margin eM 49.5 35.0 26.1 23.6 25.9 26.3 Payout ratio (151 0.0 0.0 00 00 0.0 0.0 ROE 60 506 32.6 29.3 261 20.4 25.0 Cepodealee 104 8.8 91 40 40 4.0 Capexklepreeemen I S 1.0 1.2 08 1.6 2.0 Net death:only OM .1112 44.8 -54.1 !01 -772 413.3 Net interest cover (x) nn nn net net nn net Satre Company dera Deutsche Bant °samara Deutsche Bank AG/Hong Kong CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SONY-0117088 SDNY_GM_00263272 EFTA01457515