Investor Presentation. June 2013

Transcription

1 Investor Presentation June 2013

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 25, 2012, 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 India s Large Market Opportunity th Largest Economy Globally Rapidly Growing Middle Class 2012 GDP at Purchasing Power Parity All India Households by Income Brackets US$ Trillions MM Households Urban Population of Total 2011: 30% 2016: 35% Urban GDP Contribution 2011: 60% 2016: 65% MM people MM people MM people 267 MM 267 people MM people 0 European Union USA China India Japan Russia Brazil Source: The CIA World Factbook (2012 estimates) Source: The Economic Times 5

6 Users (in millions) Underpenetrated Internet Market 350 Current Forecasts mln broadband subscribers, 1% penetration (TRAI Jan 2013) 87 mln mobile Internet users (IAMAI Jan 2013) 300* 20% 15% 160 mln broadband connections by 2014 (TRAI Plan) 165 mln mobile Internet users by 2015 (IAMAI Jan 2013) % % % % % % 137* 10% 5% Internet Penetration % Fastest Growing Internet Population Globally Government Targeting 600 Million Broadband Users by Data Source: Internet World Stats *2012 & 2015 estimates: Indian Market Research Bureau (IMRB) & Internet & Mobile Association of India (IAMAI) 6

7 Fragmented Travel Market Moving Online $35 Gross bookings ($ billions) $30 Total Online 2013 PCW Forecast $25 $20 $15 Offline $15.0 $3.4 23% $17.8 $4.8 27% $19.3 $5.9 31% $21.8 $7.3 33% $24.6 $9.0 37% Online Gross Bookings ($ blns) Online Penetration by Segment Air $4.9 46% Hotels $1.0 16% Rail $2.9 45% Other $0.2 15% $10 $5 $11.6 $13.0 $13.4 $14.5 $15.6 $ Source: PhoCusWright, Oct 2012 Fastest Growing APAC's Online Travel Space in

8 Target Market Expands Beyond Domestic Travel Growing Outbound Departures by Indians MM People Top Destinations for Indian Outbound Travelers # of Outbound Indians Travelers (2011) USA (600k) Malaysia (720k) Source: Euromonitor, 2012 UAE (860k) Thailand (870k) Singapore (960k) Many popular destinations within a 5 6 hour flying distance from India 8

9 % of Total Net Revenue Our Business 100% Air Ticketing Air Ticketing Domestic Flights (within India) 90% 80% 70% 60% 50% 40% 84% 78% % of Net Revenue Fiscal Year % H&P Other International Flights (inbound & outbound to/from India) Hotels & Packages Hotels in India & Int l Holidays in India International Holidays Flight Plus Hotel Bus Plus Hotel 30% 20% 10% 0% 15% 16% 1% 31% 18% 22% 4% 5% FY2008 FY2011 FY % Emerging Segments: Travel Insurance Rail Ticketing Bus Ticketing Car Hire Website Advertising Investing to Expand Hotels & Packages Business 9

10 Market Leadership Powered by Strong Brand Most Visited Online Travel Website in India Largest Seller of Domestic Hotel Bookings High Rates of Repeat & Direct Traffic Best Indian Travel Portal Lonely Planet India Travel Awards 2012 Best Online Travel Agency & Domestic Tour Operator Times of India 2011 Source: PhoCusWright & Company Estimates 10

11 Comprehensive Mobile Strategy 65% Internet Usage in India 60% 55% Mobile In India 50% million mobile Internet users, 25 million 3G connections - 44 million smartphones currently in use (IDC) - 70 to 90 million smartphones & 6 million tablets to be sold in % 40% 35% 30% Source: StatCounter.com Desktop Mobile million mobile Internet users in India by 2015 (IAMAI) 1+ million MakeMyTrip Apps Downloaded 10% of Total Monthly Unique Visitors 11

12 Continuous Enhancement of Online Customer Experience New Homepage 12

13 Strategies to Drive Online Domestic & International Hotel Bookings 13

14 Strengthening Hotel Supplier Relationships # of Properties MakeMyTrip (India) International Hotels 11,100 84,300 Acquired November Southeast Asia focused revenue base - Hotels only travel site - 75k international hotels to expand choice of Indian travelers Standalone Hotel Bookings growth of +105% in FY

15 Growing Holiday Packages Online H&P Transactions (000) FY 2010 FY 2011 FY 2012 FY 2013 Southeast Asian Presence Enhances Customers Experience 15

16 Experienced Leadership Team Corporate Leadership Deep Kalra Founder, Chairman and CEO Prior Experience: GE Capital, AMF Bowling Inc., ABN Amro Keyur Joshi Co-Founder, Chief Commercial Officer Prior Experience: Justfares.com, Tata Motors Rajesh Magow Co-Founder, CFO & COO Prior Experience: ebookers, Aptech, Voltas Mohit Gupta Chief Business Officer Prior Experience: Pepsi Foods Amit Somani Chief Products Officer Prior Experience: Google, IBM Amit Saberwal Chief Business Officer International Markets Prior Experience: 20 years in the Hospitality and Tourism, The Park Hotels Mohit Kabra SVP Finance, Administration & Legal Prior Experience: Kohler India, Pepsi, Seagrams, Colgate, Nagarjuna Fertilizers Sanket Atal Chief Technology Officer Prior Experience: CA Technologies, Oracle Purva Misra SVP Human Resources Prior Experience: Aon Hewitt, Max Healthcare Manish Kalra Head of Marketing Prior Experience: Dell India, Pepsi 16

17 Advanced, Secure and Scalable Technology Platform Robust, Reliable and Fully Integrated Technology Platform Simple booking process Web-enabled centralized booking system Scalable search & caching, Comprehensive results, Quick response time Enhanced Security by VeriSign Secure for online transactions Integrated B2B, B2C and Mobile platforms 17

18 Financial Overview 18

19 Gross Bookings & Net Revenue Trends Gross Bookings Net Revenue (1) (US$ MM) $1,500 Constant Currency Growth of 32.3% yoy (US$ MM) $100 Constant Currency Growth of 11.7% yoy $1,000 5 Year CAGR: 39% $ $1, $90 $80 $70 $60 5 Year CAGR: 37% $ $88 $ $500 $ $ $ $50 $40 $30 $20 $10 $ $ $0 FY2009 FY2010 FY2011 FY2012 FY2013 $0 FY2009 FY2010 FY2011 FY2012 FY2013 Air Ticketing Hotels and Packages Emerging Segments Note: 1. Net Revenues represent Revenues Less Service Cost 19

20 Net Revenue Margins Net Revenue as % of Gross Bookings Air Travel 10% 8% 7.3% 7.8% 8.4% 7.9% 8.5% 7.2% 8% 6% 4% 2% 7.1% 7.2% 7.6% 7.4% 7.9% 6.0% Multiple sources of Net Revenue Commissions and volume incentives from airlines Convenience & Service fees from customers Fees from GDS partner 6% 0% FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 4% Hotels and Packages 2% 15% 12% 9% 8.9% 10.6% 14.0% 11.5% 11.9% 12.0% Effective Product Bundling & Scale Mark up on Net Rates Commissions & volume incentives from hoteliers 0% FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 6% FY2008 FY2009 FY2010 FY2011 FY2012 FY

21 Scalable Business Model with Operating Leverage Operating Costs (1) Adjusted Operating Profit (2) Depreciation & Amortization (US$ MM) Marketing FY2010 FY2011 FY2012 FY2013 9% SGA Payment Gateway $10 $10.9 8% 7% 0.3% 2.1% Personnel Expenses (Excludes SBC) 0.3% 0.3% 1.7% 1.7% 0.3% 1.7% $5 $0.8 $4.6 6% $0 1.9% 7.5% 12.4% 5% 4% 2.6% 2.5% 2.5% 2.7% -$5 Adjusted Operating Profit Margin -$5.2 3% 1.3% 1.3% 1.3% 1.3% -$10 2% 1% 2.1% 1.9% 2.0% 2.0% -$15 0% FY 2010 FY 2011 FY 2012 FY $20 Note 1: All figures as % of Gross Bookings; Costs exclude stock based compensation charges Note 2: All figures as % of Revenue Less Service Costs; Costs exclude stock based compensation charges 21

22 Key Investment Highlights India s Leader in Online Travel & ecommerce Diversified Supplier Partnerships & Innovative Distribution Channels Advanced & Secure Technology Platform Highly Scalable Operating Leverage Experienced Leadership Team Focused Sharply on Customer Experience Multiple Strategies to Drive Growth 22