Baidu Presentation - Hari Pers Nasional Indonesia 2017

The Integration of National Media in Global Communication LandscapeOpportunities and Challenges

1. Baidu Success Storieso Company Background and Business Growtho Baidu Entering Global Marketo Baidu Product In Indonesia Marketo Grow Local, Go Global Program

2. China Transformation to Most Innovative Technology Countryo How China Leading in Technologyo Insight of China Technology Companyo China Government Support Tech Industry

3. Experience Sharingo Challenge In Digital Economic Era

o Internet Plus

Baidu Success Stories

Company BackgroundAnd BusinessGrowth

Baidu processes billions of unique queries every day

We were the first Chinese Company

included in the NASDAQ 100 Index

Baidu has over

50,000 employees

Total Revenues: USD 10.248 Billion (2015)

Annual Revenue Growth: 35.3%

Success Story


Baidu was founded in 2000 by Robin Li No.1 Chinese search engine in the world with more than 6

billion search request everyday The BIGGEST search engine in China with over 79.84% of

search engine and mobile market share in China Baidu also leading in advanced technology such as : Artificial

Intelligence (AI), Map, O2O, Big Data Analytics, Deep Learning and Cloud Computing.

Success Story


50 Smartest Company in the World 2016

1. Amazon 2. Baidu 3. Illumina 4. Tesla Motors

1. Baidu was top 2 – World Smartest Companies 2016 (MIT Tech Smartest Review)

2. Baidu was rank 29 most innovative companies in the world (Forbes, 2016)

Success Story

BaiduEnteringGlobalMarket

We have our global business office in :

Indonesia, Brazil, Egypt, India, Thailand and Japan

We are exploring opportunities in :

Latin America, South East Asia, MENA, North America and Europe

Success Story

BaiduProductIn IndonesiaMarket

DU Battery Saver

is a FREE battery

saving app that

makes your

battery last longer

DU Speed Booster

and Cleaner is the

only all-in-one

speed booster,

trash cleaner and

antivirus

DU Browser is a

simple and

convenient mobile

browser with ultra-

fast browsing

MoboMarket –

No 1 third party

App-store for

Android

smartphone with

localize concept

DU Battery Saver DU Speed Booster DU Browser MoboMarket

Baidu Focus in Indonesia Market as Mobile First Country

Success Story

GrowLocalGoGlobal

Baidu Indonesia Ecosystem Development Program

Product Localized

Bring global technology to local

market with localization process to

support local player growing together in

this industry

Bring global technology to local

market with localization process to

support local player growing together in

this industry

OpenAccess

Assisted communities and startup with

strategic planning and economic growth to

develop entrepreneurial

business ecosystem

DevelopEcosystem

Success Story

Success Story

Baidu BEKRAF Tech Startup Acceleration Program

BEKRAF Funding

Online – Offline Campaign

8 cities roadshow

ProductBootcamp

Mentoring

Demo day

BAIDU

6 months program

execution

Scouting

Marketing

Engineer Fund Raising

GrowLocalGoGlobal

Wonderful Indonesia

Indonesia to10 Million China

Traveler

Success Story

Channels

Find & Get “New Customer”

Influence Decision Making

Develop Loyal Fans and Long

term Spreading

Baidu Affiliate MarketingBaidu Search Marketing

Baidu Search MarketingBaidu Travel

Baidu Travel

China Transformation toMost Innovative

Technology Country

How

China

Leading In

Technology

Labor force is no longer growing

Aging is expected to reduce the working age population by 16% by 2020

It takes more than 60% more capital to generate a unit of GDP than did from 1990 to 2010

Return of fixed investment is declining

Push Factor of TransformationInnovation Technology

Sustain 5.5% - 6.5% growth rates until 2025 to contribute 50% GDP growth

China Transformation

China’s Internet economy is already larger than those of the United States, France, and Germany as a share of GDP iGDP, 2013

2013 average : 4.0

2010

2013

iGDP, 2013 Internet-related expenditures as % of respective country GDP

ChinaTechCompanyKeepIncreasing

Since 2014 – 2016, China Technology Companysurpass US Company in-term of IPO numbers and valuation

US technology IPOs since Q2 2014 52 Companies with total raisedUSD 15.31 Billion

China technology IPOs since Q2 201472 Companies with total raised USD 32.78 Billion


The BAT

Contribution to China Internet Growth


Baidu – Alibaba – TencentThree most of dominant players of China internet, mobile and e-commerce have

important contribution to China Internet Growth

Combined Market Value

USD $473 BNCombined annual revenue

USD $20BN


Market

Understanding

Is a Key

To

Success

China is Big, Unique and Scale market Localize and Understanding the market is important and key to

Success. Localize not only mean in language, but also Behavior and

Culture

Transportation

CommerceNavigation

Example : China user prefer one apps can handle all thingsBaidu Maps integrate all services into one platform

ChinaStart-upUnicornRapidlyIncrease


4 from 7 world ten billion USD private company are China Headquartered

Their total Valuation USD 103 Billion US & China have most startup with highest valuation

China startup and US startup was leading in the world


China New Era

TechCompanyIn VerticalIndustry

LufaxOnline Internet finance marketplace in China headquartered in Shanghai.Lufax is most valuable financial technology (FINTECH) startup for peer to peer lending (P2P).

DJIa Chinese technology

company headquartered in Shenzhen, Guangdong.

It manufactures drone with more than 70% world-wide

market share.

China Technology Company Lead Innovation InVertical Industry

How

ChinaGovernmentSupportTechIndustry

780Number of

Government Funds

1,600Number of

Government Tech Incubators

State VenturesChina’s Government

support the startup sector

$218BnState venture capital 2015

FundingGovernment Support USD 218 BN to funding the startup through state VC and Incubators. (780 number of government funds & 1600 number of government tech incubators).

Tax IncentiveTax cut up to 15% to key companies in the creative industry. Personal income tax on investors in high-tech research and development. On 2015 the total tax benefits being extend to start-ups is estimated USD 9.93Bn for the first half of 2015 alone.

Co-working SpaceCo-working spaces are a recent apparitions in China. The phenomenon took off in 2015 and more than 500 were created in the past 18 months (2016) with government support.


Government support more than $1.5Bn on Silicon Valley of China “Zhong Guan Cun” for Co-Working Space

450,000 meters square Subsidized by Government

(government backed) 9+ co-working space with

accelerator More than 300 startup.

China

Silicon

Valley


Experience Sharing

Challenge

In Digital

Economic

Era2025

Employeebaseline

Potential job losses due

productivity gain

2025 employee

with internet impact

Potential new employee from incremental demand

Potential new employee from improve allocation capital

Potential new employee from market creation

Experience Sharing

Workforce - Risk of job losses due productivity gain but meanwhile in the

same time there are opportunity for new job creation

Ease of doing Business – there are 7 new company in every minutes in China, half of them is startup. It will trigger more competition.

Numbers in Million

Internet

PLUS

Concept

Boost

Traditional

Industry

Experience Sharing

Internet Plus

Concept of Utilization Internet in boost traditional Industries and other sector : Strengthen traditional business and efficiency Increase traditional business competitiveness Create new innovative business model

More than US$ 14.6 billion Internet Investment Fund to support Internet Plus