Investor Presentation February 2018 Disclaimer This presentation - - PowerPoint PPT Presentation

Investor Presentation

February 2018

This presentation may contain statements which reflect the management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views being expressed. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.

Disclaimer

1 2 3 4 5

Q3FY18 Results Company Overview Financials Growth Strategy Management Team

Contents

Q3 FY18 Financials

4 Matchmaking Services Marriage Services & Related Sale of Products

In ₹ million

Note : Q4 of FY17 financials as per IGAAP

26 37 49 46 39 (30) (31) (36) (38) (51) (60) (40) (20) 20 40

Q3 FY2017 Q4 FY2017 Q1 FY2018 Q2 FY2018 Q3 FY2018

Revenue EBITDA

700 717 790 790 797 216 215 261 267 250 30.9% 30.1% 33.1% 33.8% 31.4%

0% 10% 20% 30% 40% 50%

200 400 600 800 1,000

Q3 FY2017 Q4 FY2017 Q1 FY2018 Q2 FY2018 Q3 FY2018

Revenue EBITDA EBITDA Margin %

725 754 839 836 837 161 158 197 206 174 22.2% 20.9% 23.5% 24.6% 20.8%

0% 5% 10% 15% 20% 25% 30%

200 400 600 800 1,000 Q3 FY2017 Q4 FY2017* Q1 FY2018 Q2 FY2018 Q3 FY2018

Revenue EBITDA EBITDA Margin (%)

Matchmaking + Marriage Services

9M FY18 Financials

5 Matchmaking Services Marriage Services & Related Sale of Products

In ₹ million

Matchmaking + Marriage Services 2,175 2,512 432 577 19.8% 23.0%

0% 5% 10% 15% 20% 25% 30%

500 1,000 1,500 2,000 2,500 3,000 9MFY17 9MFY18

Revenue EBITDA EBITDA Margin (%) 83 134 (91) (125)

(150) (100) (50) 50 100 150 9MFY17 9MFY18

Revenue EBITDA 2,091 2,377 598 779 28.6% 32.8%

0% 10% 20% 30% 40%

500 1,000 1,500 2,000 2,500 9MFY17 9MFY18

Revenue EBITDA EBITDA Margin %

Q3 FY18 and 9M FY18 Sales

6

In ₹ million

Note : Q4 of FY17 financials as per IGAAP

708 826 856 814 856 725 754 839 836 837

600 700 800 900 Q3 FY2017 Q4 FY2017* Q1 FY2018 Q2 FY2018 Q3 FY2018

Sales Revenue

2,141 2,526 2,175 2,512

1,500 2,000 2,500 9 Months Ended FY17 9 Months Ended FY18

Sales Revenue

Sales – 9M Performance Sales – Quarterly Performance

21% Y-o-Y Growth

• f Sales in Q3

18% Y-o-Y Growth

• f Sales in 9M

Q3 FY18 Key Metrics

7 Ever Registrations (in mn) Active Profiles (in mn) Free Registrations (in mn) Paid Subscription (000's) ATV (in Rs)

25.84 26.75 27.65 28.51 29.47 20 22 24 26 28 30

Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18

2.89 3.03 3.08 3.19 3.29 2.0 2.4 2.8 3.2

Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18

0.82 0.91 0.90 0.87 0.95 0.4 0.6 0.8 1.0

Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18

169 186 190 177 187 100 125 150 175 200

Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18

4,057 4,245 4,242 4,339 4,371 3800 4000 4200 4400

Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18

685 789 805 766 817 650 700 750 800 850

Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18

Matchmaking Sales (in Rs mn)

Company Overview

Matrimony.com at a glance

300+

Community Matrimony sites

15

Regional Matrimony sites

140

Retail Outlets

3.29mn

Active Profiles 2

29.47mn

Total registrations since January 2006 2

459mn

Total Page Views. More than 9x views of

• ther sites 1

702,000

Paid subscriptions in FY2017 3

INR 2,929mn

FY17 Revenues (14.7% YoY growth)

20.2%

FY17 EBITDA margin (against 2.8% in FY16)

#1

Leader for Matchmaking Services 1 We deliver matchmaking services to our users in India and the Indian diaspora through our websites, mobile sites and mobile apps complemented by our on-the-ground network in India.

9

1 In terms of average number of website pages viewed by unique visitors in June 2017 as per the Traffic Share Distribution data from April 2014 to June 2017 compiled by Comscore, Inc. 2 As on Dec 31, 2017; 3 According to Key Business Metrics Report dated August 8, 2017 prepared by R.G.N. Price & Co

10

1

Large Online Matrimony Market Opportunity

2

Leading Provider of Online Matchmaking Services in India

3

Micro-Market Strategy with Targeted and Customized or Personalized Services

4

Strong Consumer Brand

5

Robust Technology and Analytics

7

Key Business Metrics Drive Revenue Growth and Operating Leverage

6

Continued Expansion into Marriage Services Segment

A Unique Proposition

Unmarried Population in 2016 107 Million 1 Active Seekers in 2016 - 63 Million Active users of online matrimony in 2016 – 6 Million 100% 59% 6%

Active Profiles on Matrimony.com 3.29 Million 2

3%

An Early Mover to Online Matchmaking services…..

Large Database

More Matches/ Responses

Attracts More Users

…. Coupled with a Network effect resulting in a large database of profiles…

991 420 348

Matrimony Site1 Site2

149 26 33

Matrimony Site1 Site2

459 46 48

Matrimony Site1 Site2 29.47 Million Total registrations since 2006 2

Total pages viewed (millions) for June 2017 Time Spent (minutes in millions) for June 2017 Unique visitors (‘000s) for June 2017 3

…. Resulting in Market Leadership

A Differentiated Growth Story

11

1 Based on “Market study of Online Matrimony & Marriage Services in India” report by KPMG dated May 4, 2017; 2 As on Dec 31, 2017 3 Source: Traffic distribution data from April 2014 to June 2017 for Matrimony.com, and others complied by ComScore.Inc

12

With a Highly Customised “Micro-Market” Strategy….

BharatMatrimony CommunityMatrimony EliteMatrimony

• Classic, Classic Advantage and Classic Premium
• Till-U-Marry
• Assisted Service
• Gold, Diamond and Platinum
• Till-U-Marry
• Assisted Service
• Gold, Blue, Platinum
• Till-U-Marry

A range of targeted and customized products and services….. .…Catering to Customer Needs through a Layered Product Offering…

Matchmaking Services: 15 Regional Language Portals and Over 300 Community Matrimonial Sites Model Developed to Cater to Unique Requirements of the Indian Market

Mobile Offline Website

• 8.4 million app installs 1
• Mobile sites and mobile apps accounts for 2

✓ 89% of Profile views ✓ 72% of Personalized messages sent and received ✓ 80% of the total number of free profiles registered ✓ 82% of Express Interest messages ✓ 73% of Phone numbers viewed

Source: 1 According to www.androidrank.org as updated on 21 January 2018 ;

2 For the month of December 2017

matrimony.com

Strong Technology Platform

• Reliable and Scalable technology with focus on Information security

Big Data & Analytics

• In-house Intelligent Matchmaking Algorithm (“MIMA”)
• Data Analytics algorithms to track consumer trends to assist in driving monetization of user base

Campaign Management

• IBM Unica systems to improve customer experience and subscriptions

… Backed by Strong Technology and Analytics Backbone… Multi-Channel Customer Outreach…

13

Additional Avenues for Growth through Forward Integration..

14

Marriage Services : Complements online matchmaking services to provide

• rganized services in the marriage services market
• Provides professional wedding photography and

videography services

• Launched in Tamil Nadu, Kerala, Andhra Pradesh,

Telangana and Karnataka A wedding classified portal with 50,000+ listings to connect customers with right service provider

• A wedding venue discovery platform with 500+ wedding

venues

• Currently available at Chennai, Coimbatore, Madurai and

Trichy in Tamil Nadu, Hyderabad and Secundrabad in Telangana, Bangalore in Karnataka and Kochi in Kerala

• A relationship manager helps customer avail wedding-

related services and recommends suitable vendors

• Currently available in Chennai, Coimbatore, Madurai and

Trichy

2015 NASSCOM “Certificate of Excellence for innovative application

• f analytics for

business solution” Bharatmatrimony.com awarded India’s most trusted online matrimony brand by Brand Trust Report India Study 2014

Featured in Limca Book of Records for record number of documented marriages online

Special jury mention for gender sensitivity (2013-2014) for TVC (Bharat Matrimony- Career) at National Laadli Media and Advertising Awards, 2015 Certified as most used matrimonial search website in 2013-14 for Indian

• nline customers

by JUXT BharatMatrimony mobile app - Best app in the social category. Global Mobile App Summit and Awards - July 2016 and July 2017.

Profile authentication features such as “Identity Trust Badge” help in maintaining and continuously improving the quality of database further increasing consumer trust

Strong Consumer Brand

15

Robust Revenue Growth

16 Matchmaking + Marriage Services Matchmaking Services Marriage Services & Related Sale of Products

Note: 1. Financials as per IGAAP

• 2. CAGR (%): Calculated as [{(Revenue in FY17/Revenue in FY13)^0.25}-1]*100 | 3. Segment EBITDA=Segments Results + Depreciation

In ₹ million

13 66 94 108 121

• 335%
• 122%
• 138%
• 161%
• 101%
• 400%
• 300%
• 200%
• 100%

0% 20 40 60 80 100 120 140

FY13 FY14 FY15 FY16 FY17

Marriage Services Revenue (INR mn) EBITDA Margin (%) 1,888 2,073 2,428 2,554 2,929

8.6% 6.3% 7.3% 2.8% 20.2%

0% 5% 10% 15% 20% 25% 30% 500 1,000 1,500 2,000 2,500 3,000

FY13 FY14 FY15 FY16 FY17

Revenue (INR mn) EBITDA Margin (%) 1,873 1,989 2,320 2,440 2,808

14.1% 13.5% 17.1% 14.7% 29.0%

0% 5% 10% 15% 20% 25% 30% 35% 500 1,000 1,500 2,000 2,500 3,000

FY13 FY14 FY15 FY16 FY17

Matchmaking Revenue (INR mn) EBITDA Margin (%)

… Resulting in Operating Leverage

17

Fixed Costs as % of Revenues have started to taper resulting in Margin Expansion

Note: FY13, FY14, FY15, FY16 and FY17 financials as per IGAAP

39.8% 42.4% 43.6% 49.0% 39.8% 24.5% 23.2% 21.9% 21.1% 17.8% 27.1% 28.1% 27.1% 27.0% 22.2%

8.6% 6.3% 7.3% 2.8% 20.2% 0% 5% 10% 15% 20% 25% 0% 10% 20% 30% 40% 50% FY13 FY14 FY15 FY16 FY17

Employee benefit expenses as % of revenues - LHS Advertisement and promotion expenses as % of revenues - LHS Other expenses as % of revenues - LHS EBITDA Margin (%) - RHS

38.3% 39.3% 40.6% 16.6% 15.4% 17.5% 21.6% 20.6% 21.1%

23.5% 24.6% 20.8% 0% 5% 10% 15% 20% 25% 0% 10% 20% 30% 40% 50% 60% Q1 FY18 Q2 FY18 Q3 FY18

Operating Cash Flow

18

In ₹ million 136 201 232 205 496 653

100 200 300 400 500 600 700 FY13 FY14 FY15 FY16 FY17 9M FY18 Cash from Operating activities before exceptional items (INR mn)

Profiles:

• Fueled by Increasing internet

and smartphone penetration

• Social adoption & Trust

Conversion Rate:

• Continuous product

improvements in online & mobile

• Leverage campaign

management & Analytics

ATV:

• Sustained price increase due

to leadership position

• Higher price packages

Increased Sales

Matchmaking Growth Cycle

Expand User Base

1

Continue Investments in Mobile Platforms

2

Drive Monetization

3

Further Strengthen Brands

4

Continue to Expand into Marriage Services

5

Our Growth Strategy

Our Growth Strategy

19

Highly Experienced Board of Directors and Management Team

20 Board of Directors George Zacharias

Non-Executive Independent Director

Milind S Sarwate

Non-Executive Independent Director

Murugavel Janakiraman

Promoter, Chairman and Managing Director

Deepa Murugavel

Non-Executive Director

Key Managerial and Senior Management Personnel Sanjeev Misra

Senior Vice President, Sales and Operations – Matchmaking Business

Vaasen V.

Vice President of Finance

R Chandrasekar

Chief Technology Operation and Infrastructure Officer

• S. Saichitra

Chief Portal and Mobile Officer

Murugavel Janakiraman

Promoter, Chairman and Managing Director

K Balasubramanian

Chief Financial Officer

• S. Vijayanand

General Manager-Company Secretary and Compliance Officer

C K Ranganathan

Non-Executive Independent Director

Investor Contacts:

Vijayanand S Company Secretary Matrimony.com Ltd.

No: 94, TVH Beliciaa Towers, Tower 2, 10th Floor, MRC Nagar, Mandaveli, Chennai - 600 028, Tamil Nadu, India. Phone: 044-24631500 Email: investors@matrimony.com

CIN: U63090TN2001PLC047432