VUJDS FACEBOOK SERIES

Startup insights from a truly exciting case!

#1
What does the market expect from facebook when valued at USD100B? Based on a benchmark with Apple and Google.!

Vujd Ltd. Supporting Forward Thinking

www.vujade.com

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Photo by: Vujd Ltd. Jasper Bouwsma

BUSINESS MODEL CANVAS

Dear viewer!
Vujd Ltd. is strongly involved in supporting startups. As a consequence we have been following the incredible development of facebook in terms of number of users and according valuations. On February 2nd 2012 facebook filed its Form S-1 for its long anticipated IPO at the US Securities and Exchange Commission. The SEC documentation provides us with better insights in facebook and provides some facts after a long period of rumors and interpretations of the insane growth of an 8-year company valued at a USD100B. With a series of presentations Vujd Ltd will look into a number of different startup related topics to explain and illustrate the exciting world of startups and growth companies. In this presentation we will compare facebooks business model, financials and valuation with the market cap and financials of Apple (a molecule-based business) and Google (another bits and bytes company). The question being: What does the market expect from facebook when valued at USD100B? Happy sharing!

Jasper Bouwsma
Vujd Ltd. Supporting Forward Thinking

Founder Vujd Ltd.

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FOR THIS PRESENTATION VUJD LTD. HAS USED THE BELOW LISTED FORMS FILED TO THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION. EACH FORM FORM PROVIDES INSIGHTS IN THE 2011 REVENUES.

Vujd Ltd. Supporting Forward Thinking

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THE BASIC FINANCIALS

Revenues 2011 (US$ Milion) +% 2010 Earnings Gross Margin 108249 +66% 25922 23.9% 3711 +88% 1000 26.9% 37950 +29% 11632 30.7%

THE CONSEQUENTIAL DRY FACTS:

1. APPLE, FACEBOOK AND GOOGLE ARE ALL HIGHLY PROFITABLE. 2. FACEBOOK HAS THE STRONGEST YEAR OVER YEAR GROWTH, CLOSELY FOLLOWED BY APPLE 3. FACEBOOK REVENUE MULTIPLES: 1. APPLE = 29X FACEBOOK REVENUE 2.Vujd Ltd. Supporting Forward Thinking GOOGLE = 10X FACEBOOK REVENUE Slide | 4

SOME MORE FACTS & FIGURES

Market Cap / Valuation Incorporation Date of IPO Time Incorporation - IPO Revenue @ IPO Earnings @ IPO Market Cap post IPO US$5078B April 1st 1976 December 12th 1982 2446 Days (6Y and 8 M) 583M 61M US$1.8B US$102.6B February 4th 2004 May 1st 2012 3009 Days (8Y and 3M) 3711M 1000M US$201,9B September 4th 1998 August 19th 2004 2210 Days (6 Years) 3189M 640M US$23B

US$100B!

VUJDS INTERPRETATION:
IF IS ABOUT TIME THAT FACEBOOK DOES ITS IPO 1. IN TERMS OF TIME SINCE INCORPORATION 2. IN TERMS IF PROFITABILITY
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SOME SIMPLE RATIOS

Price to Sales

3x (4.7x) (19.7x)

Price to Earnings

27x! 100x!

7x (5.5x) (17.3x)

VUJDS INTERPRETATION:
IF THE MARKET THINKS THAT FACEBOOK IS WORTH A 27X REVENUE, IT MUST BE BASED ON FUTURE REVENUE AND PROFIT EXPECTATIONS. SO LETS LOOK AT FACEBOOKS BUSINESS MODEL
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FACEBOOK

CANVAS
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BUSINESS MODEL

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STATEMENT #2! fb makes as much advertising revenue as Google at their IPO.! QUESTION To what extent is fb able to establish and scale their advertising business? !

STATEMENT #3! fb is still young.! QUESTION What does fb have up their sleeve and what is it able to do with the cash generated from the IPO?!
Vujd Ltd. Supporting Forward Thinking

STATEMENT #1! 12% of total revenues and 80% of payment revenues come from Zynga.! QUESTION Is that part of the business model indeed scalable?!

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STATEMENT #4! currently, 3500 employees each generate appr. ! US$1.0M revenue.! QUESTION
A) How can that ratio be improved! B) How to attract > talent?!

Vujd Ltd. Supporting Forward Thinking

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CONCLUSION
IN THE END IT IS ALL ABOUT ATTRACTING TALENT WHO WILL BE ABLE TO SCALE FACEBOOKS ADVERTISING BUSINESS AND USE THE FACEBOOKS KEY RESOURCE (I.E. 845M USERS, FACEBOOK.COM) TO LAUNCH NEW PRODUCTS AND EXTENT THE BUSINESS MODEL.

#employees Revenue/Employee

3500 1060286

32500 1167493

VUJDS INTERPRETATION:
FOR FACEBOOK IT WILL ALL BE ABOUT HIRING THOUSANDS UPON THOUSANDS OF EMPLOYEES TO GENERATE THE REVENUE AND PROFIT THE MARKET SEEMS TO EXPECT.

Just imagine hiring 60000 people in a couple of years !

Vujd Ltd. Supporting Forward Thinking

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Vujd Ltd. Supporting Forward Thinking Vujd Ltd. Supporting Forward Thinking

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Vujds facebook series

Billionaires vs. Millionaires

#2
Stay Tuned!
Vujd Ltd. Supporting Forward Thinking

See Slide our www Sha .slid re ! esha re.ne t/vu And Enjo jade! y ! :)!
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www.vujade.com

Vujd Ltd.
Postal Address P.O. Box 4 CH-3257 Grossaffolterm
Photo by: Vujd Ltd Jasper Bouwsma

Visiting Address Elfenaustrasse 3 CH-2502 Biel/Bienne +41 (0)31 32 32 300 Online www.vujade.com contact@vujade.com

VujadeLtd Vujd Ltd. Supporting Forward Thinking

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Vujd is the opposite of dj-vu and refers to something that has not yet taken place or has not yet existed. Looking for new solutions. Critically questioning existing structures and behavior. Looking at something from a different or an unusual point of view. In other words: Vujd stands for innovation.
Vujd Ltd Supporting Forward Thinking Photo by: VujdLtd. Jasper Bouwsma Slide | 16

Photo: Vujd Ltd. Supporting Forward Thinking

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