Investor Presentation. June 2014

Transcription

1 Investor Presentation June 2014

2 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 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, opportunity, target or other words that relate to future events, as opposed to past or current events. Among the factors that could cause actual results to differ materially are our ability to maintain and expand our supplier relationships; our reliance on technology, our ability to expand our business, implement our strategy and effectively manage our growth; political and economic stability in and around India; our ability to successfully implement our growth strategy; our ability to attract, train and retain executives and other qualified employees; increasing competition in the Indian travel industry and risks associated with online commerce security. 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 June 6, 2014, filed with the U.S. Securities Exchange Commission ( SEC ). Copies of this material is 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. 2

3 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 3 rd 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. 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 3

4 Business Overview 4

5 Company Overview Cleartrip 20% Others 13% Yatra 20% India s leading Online Travel Agency (OTA) Started in 2000, India business launched in 2005 Most Visited Online Travel Website in India (1) Highest hotel bookings of any domestic Indian OTA 1 in 8 of all domestic air passengers booked through MakeMyTrip High Rates of Direct & Repeat Traffic +3 million mobile apps downloaded 47% Based on 2012 Gross Bookings Gross Bookings (US$ MM) $1,500 $1,000 $500 $0 $100 $80 $60 $40 $20 INR/ USD $ Net Revenue (2) (US$ MM) $ $ $ $ $88 $ $1, $1, FY2010 FY2011 FY2012 FY2013 FY Air Ticketing Hotels and Packages 60.4 $ CCG +18.6% yoy CCG +31.6% yoy Note: (1) March 2014 comscore (2) Net Revenues represent Revenues Less Service Cost CCG = Constant Currency Growth Source: PhoCusWright 2013 $0 FY2010 FY2011 FY2012 FY2013 FY2014 INR/ USD Air Ticketing Hotels and Packages Emerging Segments 5

6 Proven Success in Strategic Execution Year FY 2010 FY 2014 Gross Bookings $466mm 2.7x $1,261mm Net Revenue $40mm 2.6x $106mm Hotel & Packages Net Revenue $8mm 5.0x $40mm Hotels & Packages 20% Emerging Segments 3% Emerging Segments 4% Net Revenue Mix Air Ticketing 77% Hotels & Packages 38% Air Ticketing 58% # of Transactions 1,877mm 2.6x 4,869mm Cumulative Mobile App Downloads N/A +3mm Mobile as % of Traffic 0% 20% 6

7 India Attractive Growth Market Large Segment of the World Population People in Millions 4 th Largest Global Economy 2013 GDP at Purchasing Power Parity Parity US$ Trillions China India 1,184 1, US 309 Brazil Russia nd Fastest Economic Growth GDP Growth Estimate (2013, %) Rapidly Growing Middle Class All India Households by Income Brackets (MM) MM people MM people MM people Source: The CIA World Factbook, Worldatlas.com, The Economic Times. 7

8 Fast Growing Travel Market Shifting Online India Travel Market Growth $ in Billions Big Opportunities Online Hotel Bookings as a % of Total Hotel Bookings $23.2 $25.9 $ % $19.7 $ % 13% US China India India Online Travel Market Growth $ in Billions $10.6 $12.5 Outbound Departures Growing Outbound Departures by Indians People in Millions 22.9 $ $6.0 $ Source: PhoCusWright, Euromonitor,

9 With Significant Upside on Broadband & Smartphone Penetration Low Broadband Penetration Presents Further Upside Broadband Penetration 2014E (%) 74% 53% 38% 29% 7% US Russia China Brazil India Smartphone Penetration is in Very Early Stages in India Premium Mobile Phone Install Base as a % of Mobile Phone Install Base 2014E 67% 40% 19% 18% 6% US Russia Brazil China India Leading Smartphone Adoption Over The Next Several Years Premium Mobile Phones Shipped CAGR 33.2% 22.6% 20.2% 17.9% 5.6% India Brazil China Russia US Source: Gartner. 9

10 Focused & Comprehensive Mobile Strategy +3 million Cumulative App Downloads to Date 10x in Downloads Since April % of Total Online Traffic +15% of Total Online Transactions 10

11 MakeMyTrip Has the Winning Hotels Platform Indian Hospitality Industry Has Unique Characteristics Market Concentration Fragmented Concentrated Distribution Channels Complex Uniform IT / Back-end Capabilities Under Developed Technologically Advanced Labor Intensity Higher Lower Diverse Hotel Portfolio Diverse portfolio of 11,400 domestic hotels Robust, reliable, fully integrated technology platform Web-enabled centralized booking system Enhanced third party payment security for online transactions Personalized customer dashboard and call center Pre/on/post travel customer support Hotel Portfolio by Stars 5% 9% 33% 20% 33% 11

12 International Hotels Growth Strategy Expanding Through Strategic Acquisitions Online hotel reservations in Europe, North America, etc. Strengthen existing travel technology stack Expanded international hotel room offerings November 2012 February 2014 Booking platform offering hotel reservations outside of India Strong presence in the South-East Asia region Top Destinations for Indian Outbound Travelers # of Outbound Indians Travelers (2012) November 2012 Hotel aggregator and tour operator for Thailand Expanded presence in Thailand, popular destination for Indian travelers August 2011 (Strategic Investment) Innovative, India based travel search engine Increases customer engagement for our Holidays business May 2011 Singapore-based travel agency Provides hotel reservations, tours and related services in Singapore and SE Asia 11,400 Domestic Hotels 170,200 International Hotels USA (635k) Maldives UAE (982k) Thailand (1,037k) Singapore (1,109k) Hong Kong (526k) Indonesia (236k) Malaysia (820k) Many popular destinations within 3,000 miles (5 hour flight) of India Significant regional non-resident Indian population Focused to capture large market opportunity 12

13 New Airlines to Take Flight in India Indian Domestic Air Passengers Carried Number of Passengers Carried in Millions AirAsia India ticket sales open on May 30; first flight on June 12 May 29, 2014 The Economic Times The Tata Sons full service JV airline with Singapore Airlines (SIA) is all set to meet its projected date of starting operations this September. May 21, 2014 The Economic Times Indian aviation market poised to become the third largest globally by 2020 Launch Mode Existing Airlines Source: DGCA, Report of Working Group on Civil Aviation Sector Ministry of Civil Aviation. 13

14 Drivers For Long-Term Growth and Margin Expansion Rising Internet Penetration Fast Broadband & Smartphone Adoption Increasing Travel Supply Technology & Product Innovation Hotels for Domestic & Int l Destinations Packages Moving Online Operational Leverage Expanding Middle Class Population Mobile 14

15 Experienced Leadership Team Deep Kalra Founder, Chairman and Group CEO Started Company in 2000 Prior Experience: Rajesh Magow Co-Founder, Chief Executive Officer India Co-Founder since 2001 Prior Experience: Keyur Joshi Co-Founder, Chief Commercial Officer Co-Founder since 2000 Prior Experience: Mohit Kabra Chief Financial Officer 3 Years at MMYT Prior Experience: Mohit Gupta Chief Business & Marketing Officer 6 Years at MMYT Prior Experience: Sanket Atal Chief Technology Officer 2 Years at MMYT Prior Experience: Ranjeet Oak SVP Business Leader Flights Prior Experience: Yuvaraj Srivasta SVP Human Resource Prior Experience: 15

16 The Trip Has Just Begun! 1.2bn Total India Population 190mm Internet Users in India 21mm ecommerce customers in India 6mm (1) MMYT Customers 0.3mm (1) MMYT Mobile Customers Source: Ernst & Young, Rebirth of ecommerce in India, 2013, and Economic Times as on Jan 29, (1) As of December 31,

17 Financial Overview 17

18 Gross Bookings & Net Revenue Trends Gross Bookings Net Revenue (1) (US$ MM) (US$ MM) $1,500 CCG +18.6% yoy CCG +31.6% yoy $106 $1,000 CAGR: 28.3% $ $1, $1, $100 $80 CAGR:27.5 % $61 $88 $ $742 $ $500 $ $40 $20 $ $0 $0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2010 FY2011 FY2012 FY2013 FY2014 INR/ USD Air Ticketing Hotels and Packages 60.4 INR/ USD Air Ticketing Hotels and Packages Emerging Segments Note: 1. Net Revenues represent Revenues Less Service Cost CCG = Constant Currency Growth 18

19 Improving Net Revenue Mix FY2011 Net Revenue Mix FY2014 Net Revenue Mix Non-Air Net Revenue: 22% Non-Air Net Revenue: 42% Emerging Segments 4% Emerging Segments 4% Hotels & Packages 18% Hotels & Packages 37% Air Ticketing 78% Air Ticketing 59% Non-Air Net Revenue: $13 million Non-Air Net Revenue: $44 million 19

20 Net Revenue & Adjusted Operating Margins Net Revenue as % of Gross Bookings Air Ticketing Net Margin 10% 8% 6% 4% 2% 7.8% 8.4% 7.9% 8.5% 7.2% 7.9% 8% 6% 4% 2% 7.2% 7.6% 7.4% 7.9% 6.0% 6.6% Multiple sources of Net Revenue Commissions and volume incentives from airlines Convenience & Service fees from customers Fees from GDS partner 0% FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Adjusted Operating Profit * $MM FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 $15 $11.2 $10 $5 $4.6 $0.8 $0 0% FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Hotels and Packages Net Margin 15% 14.0% 12.6% 11.9% 12.0% 12% 11.5% 10.6% 9% Effective Product Bundling & Scale Mark up on Net Rates Commissions & volume incentives from hoteliers ($5) ($10) ($10.2) 1.9% 7.5% 12.7% Adj. Op Margin ($5.1) ($3.5) 6% FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 ($15) *See Reconciliation of IFRS to Non-IFRS Metrics 20

21 Scalable Business Model with Operating Leverage Operating Costs 16.0% Depreciation & Amortization 14.0% 0.55% Marketing 12.0% 3.4% SGA Payment Gateway 10.0% Personnel Expenses (Excludes SBC) 8.0% 6.0% 4.14% 0.34% 2.08% 0.26% 0.28% 1.68% 1.71% 0.32% 1.68% 0.34% 2.21% 4.0% 2.1% 2.65% 2.47% 2.51% 2.72% 2.69% 2.0% 3.66% 1.32% 1.33% 1.31% 1.30% 1.41% 2.10% 1.87% 1.98% 1.95% 2.07% 0.0% FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Note : All figures as % of Gross Bookings; exclude stock based compensation charges 21

22 Investment Highlights Clear market leader in online travel Large, dynamic and growing market Well recognized and highly trusted brand Increasing business mix into hotel and vacation packages Scale and network effects driving enhanced analytics Fast growing mobile traction Proven management team with demonstrated results 22

23 Reconciliation of IFRS to Non-IFRS Metrics Reconciliation of Adjusted Operating Profit (Loss) For the year ended March 31, (Unaudited) Result from operating activities as per IFRS (6,009,789) 4,061,905 4,005,360 (18,062,004) (15,321,590) Add: Employee share-based compensation costs 6,771, ,285 6,894,450 11,667,188 11,096,803 Add: Direct cost related to registration of shares by shareholders - 114,705 Less: Gain on bargain purchase - (1,168,495) Add: Merger and acquisitions related expenses 241, , ,833 Add: Acquisition related intangibles amortization 64, ,516 1,388,567 Adjusted Operating Profit / (Loss) 761,587 4,589,190 11,205,149 (5,118,326) (3,451,177)