MakeMyTrip Limited
(NASDAQ: MMYT) Investor Presentation October 2017
MakeMyTrip Limited (NASDAQ: MMYT) Investor Presentation October - - PowerPoint PPT Presentation
MakeMyTrip Limited (NASDAQ: MMYT) Investor Presentation October 2017 Safe Harbor Certain statements contained in this presentation are forward - looking statements within the meaning of the safe harbor provisions of t he U.S. Private
(NASDAQ: MMYT) Investor Presentation October 2017
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Safe Harbor
Certain statements contained in this presentation are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations or forecasts of future events and our future performance and do not relate directly to historical or current events or our historical or current performance and are subject to risks and uncertainties, some of which are outside of our control, that could cause actual outcomes and results to differ materially from historical results or current expectations. Most of these statements contain words that identify them as forward looking, such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, “seek”, “will”, “may”, “should”, “opportunity”, “target” or other words that relate to future events, as
slowdown of economic growth in India and the global economic downturn, general declines or disruptions in the travel industry, the inability to successfully integrate the businesses of MMYT and ibibo Group within the anticipated timeframe or at all, the risk that the acquisition will disrupt current plans and operations, increase in operating costs and potential difficulties in customer or supplier loss and employee retention as a result
revenue and cost synergy benefits within the anticipated timeframe or at all, volatility in the trading price of MMYT’s shares, MMYT’s reliance on its relationships with travel suppliers and strategic alliances, failure to further increase MMYT’s brand recognition to obtain new business partners and consumers, failure to compete against new and existing competitors, failure to successfully manage current growth and potential future growth, risks associated with any strategic investments or acquisitions, seasonality in the travel industry in India and overseas, failure to successfully develop MMYT’s corporate travel business, damage to or failure of MMYT’s infrastructure and technology, loss of services of MMYT’s key executives, and inflation in India and in other countries. In addition to the foregoing factors, a description of certain other risks and uncertainties which may cause actual results to differ materially can be found in the “Risk Factors” section of MMYT's 20-F dated July 18, 2017 and MMYT’s 6-K dated November 22, 2016, each filed with the U.S. Securities Exchange Commission (“SEC”), copies of which are available from the SEC, our website or our Investor Relations department. We cannot assure you that the assumptions made in preparing any of the forward-looking statements will prove accurate or that any projections will be realized. We expect that there will be differences between projected and actual results. These forward-looking statements speak only as of the date of this presentation, and we do not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements attributable to us are expressly qualified in their entirety by the cautionary statements contained herein and in our future annual and quarterly reports as filed with the SEC.
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Non-IFRS Metrics & Note on Unaudited Financials
The following non-IFRS metrics will be used in this presentation:
Gross Bookings represents total amount paid by our customers for travel services and products booked through us, including
taxes, fees, and other charges, and are net of cancellation and refunds, but does not include other revenues that are generated from 3rd party advertisement on our website, commissions and fees earned from the sale of railway and bus operators and fees earned by facilitating travel insurance policies to customers.
Net Revenues represents Revenues less Service Costs (costs of procuring the relevant services for sale to customers, including
procurement costs paid to hotel and package suppliers for the acquisition of hotel rooms, sightseeing costs, local transport costs and on occasion the cost of air tickets when the company pre-purchases air ticket inventory in order to enjoy special negotiated rates and revenues)
Net Revenue Margins is defined as Net Revenues as a percentage of Gross Bookings, and represents commissions, fees,
incentive payments and other amounts earned in our business. We follow net revenue margin trends closely across our various lines of business to gain insight into the profitability of our various businesses.
Flight segment is defined as a flight between two cities, whether or not such flight is part of a larger or longer itinerary. Room Nights, also referred to as a “hotel-room nights,” is the total number of hotel rooms occupied by a customer or group,
multiplied by the number of nights that such customer or group occupies those rooms.
Constant Currency refers to our financial results assuming constant foreign exchange rates for the current fiscal period based on
the reporting for the historical average rate used in the prior year’s comparable fiscal period.
Fiscal Year End – March 31st
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Investment Highlights Leading OTA with Comprehensive Product Offerings via Multiple Brands Driving Share Gains in India’s Underpenetrated Online Travel Market Well Recognized Online Travel Brands with Superior Selection & Reach Strong & Experienced Management Team Strong Financial Profile with Strategic Investors Focused on High Growth
6 1 2 3 4 5
Constant Product & Technology Innovations for Customers & Suppliers
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191 526 350 702 US China India India 5 10 15 20 25 30 35 40 2015 2017 2019 2021 2023 2025 US 4% CAGR US$ 28 Tn China 7% CAGR US$ 37 Tn India 8% CAGR US$ 18 Tn
US US$ 18 Tn China US$ 19 Tn India US$ 8 Tn
GDP at Purchasing Power Parity (US$ Tn)
Among Top 3 Global Economies with Robust Growth1
Source: 1Euromonitor; 2United Nations; *Internet Live Stats, The Future of Internet in India” NASSCOM August 2016
47% 33% 32% 48% 52% 59% 6% 15% 10% Age 0–24 Age 25–64 Age 65+
Largest Young Population Globally (2015)2 2nd Largest Smartphone Users
287 721 462 730 US China India India 89% 52% 35% 52% US China India India 2020E 2016 2020E 2016 2020E 2016
Room to Grow with Low Internet Penetration 2nd Highest Internet Users
Attractive Macro Growth Drivers
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India’s Online Travel Opportunity
Source: Morgan Stanley Research, e=Morgan Stanley Research estimates.
($ in Billions)
Addressable Total Travel Market Growth Online Travel Market Growth Segments 2015 2021e CAGR 2015 2021e CAGR Domestic Air $5.4 $10.0 11% $2.7 $6.0 14% International Air $3.0 $5.3 10% $1.5 $2.6 10% Domestic Hotels $10.0 $25.2 17% $1.4 $10.1 39% Outbound Travel $12.5 $21.9 10% $0.9 $3.3 25% Domestic Bus $3.1 $5.0 8% $0.5 $1.5 22% Total Booking $34.0 $67.4 12% $7.0 $23.5 23%
Large Addressable Market with +$67 billion in Travel Bookings by 2021
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Source: Company data as disclosed on Q1 FY2018 Earnings Call & SEC Form 6K Filed on August 9 2017
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Domestic Hotels Alternative Accommodations International Hotels International Outbound Flights Bus Ticketing SME Travel
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Domestic Hotels & Alternative Accommodations Offerings Across All Brands
13,500+ Alternative Accommodations properties 45,000+ Domestic Hotel properties
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Enhancing Customer Experience via Product & Technology Innovations
Machine Learning & Big Data to Drive Greater Personalization Artificial Intelligence Powered ChatBots for Customer Support Online Wallets & Referrals Unique In App Travel Reviews & Interactions with Suppliers Location Based Services Live Bus Tracking Feature
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Mobile Continues to Lead Growth & Drive Online Penetration
Mobile Air Ticketing*: 59% Mobile Bus Ticketing*: 47% Mobile Hotel Booking*: 78%
*Q1 FY2018 mobile transactions as % of total
Google Play Apps
penetration
Available
cumulative app downloads to date
average active mobiles users
Shopper Visits via Mobile App & Web
Bank integration
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Highly Experienced & Integrated Management Team Deep Kalra
Co-Founder, Chairman and Group CEO
Bowing Inc. & ABN AMRO Bank
Entrepreneurs (TIE) New Delhi chapter
serves on Governing Council
Rajesh Magow
Co-Founder and CEO India
Limited & Voltas Limited
Chartered Accountants of India, Delhi
Mohit Kabra
Group Chief Financial Officer
Colgate & Seagrams
College
Chartered Accountants of India
Cost Accountants of India
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Results presented include the consolidation of ibibo group from February 1, 2017 onwards, unless otherwise noted
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Q1 FY2018 Financial Highlights
Source: Company data, SEC 6K Filed on August 9 2017. YoY % growth on pro forma basis as disclosed
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72 76 119 63 87 140 5 6 15
$0 $50 $100 $150 $200 $250 $300 FY15 FY16 FY17
Air Ticketing Hotels and Packages Emerging Segments INR/USD 61.1 65.4 67.1
1,175 1,276 1,545 473 566 745
$0 $500 $1,000 $1,500 $2,000 $2,500 FY15 FY16 FY17
Air Ticketing Hotels and Packages
Strong Growth Driven by Hotels and Packages
Gross Bookings
(in $ million)
INR/USD 61.1 65.4
Note: 1. Net revenues represent revenues minus service costs CCG = Constant Currency Growth
(in $ million)
Net Revenue(1)
$1,842 $1,648 $169 $139 $2,290
67.1
$274
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2,000 3,000 4,000 5,000 6,000 FY 2015 FY 2016 FY 2017
Driving Growth in Hotel & Packages
1,385.9 3,137.3 6,874.1 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 FY 2015 FY 2016 FY 2017
Hotel & Packages Transactions
(in 000s) 45% 51% 51%
5% 15% 25% 35% 45% 55% 65% 75% FY 2015 FY 2016 FY 2017
Hotel & Packages Contribution to Net Revenue Improved to +50% Standalone Hotels Transactions
(in 000s) (% of total net revenue)
3,001 1,236 5,645
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Improving Mix and Margins with Strategic Focus on Hotels and Packages
Air Ticketing Net Revenue Margin Hotels and Packages Net Revenue Margin
incentives from airlines
fees from customers
Effective Product Bundling & Scale
incentives from hoteliers Multiple sources
Combined Net Revenue Margin
*See Reconciliation of IFRS to Non-IFRS Metrics
8.1% 9.2% 11.30%
0% 2% 4% 6% 8% 10% 12% FY15 FY16 FY17
6.1% 6.0% 7.7%
0% 2% 4% 6% 8% 10% FY15 FY16 FY17
13.2% 15.3% 18.8%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
FY15 FY16 FY17
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1.9% 1.9% 2.0% 1.4% 1.4% 1.2% 2.2% 2.3% 2.1% 2.6% 5.9% 9.8%
0.4% 0.4% 0.5%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% FY15 FY16 FY17 Personnel Expenses Payment Gateway SGA Marketing Depreciation & Amortization 11.9% 15.6% 8.5%
Investing to Drive Higher Hotels & Packages Net Revenue Contribution
% of Gross Bookings
45.1%
Hotels and Packages Net Revenue Mix
51.1% 51.3%
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Financial Summary in Constant Currency
Source: Company data
FY2015 FY2016 FY17 Air Ticketing
yoy yoy yoy
Gross bookings growth 26% 16% 24% Transactions growth 36% 28% 35% Net Revenue growth 17% 14% 59% Net Revenue to Bookings 6% 6% 7.7%
Hotels & Packages
Gross bookings growth 50% 28% 34% Transactions growth 59% 126% 119% Net Revenue growth 58% 45% 66% Net Revenue to Bookings 13% 15% 18.8%
Hotel and Packages as a % of total net revenue
45% 51% 51%
Gross Bookings and Net Revenue Growth Rates are based on constant currency rates
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Reconciliation of IFRS to Non-IFRS Metrics
Source: Company data
Reconciliation of Adjusted Operating Profit (Loss) Year ended March 31, in thousand USD (Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 Result from operating activities as per IFRS (6,010) 4,062 4,005 (18,062) (15,322) (14,540) (66,827) (135,387) Add: Employee share-based compensation costs 6,771 527 6,894 11,667 11,097 12,308 13,685 26,795 Less: Income on license acquired
Less: Gain on bargain purchase
15,168 Add: Merger and acquisitions related expenses
705 439 350 178 5,972 Add: Acquisition related intangibles amortization
572 1,389 1,700 1,554 3,741 Add: Severance cost related to a prior acquisition
762 4,589 11,205 (5,118) (3,451) 456 (50,129) (83,711)