Investor Presentation February 2016

Transcription

1 Investor Presentation February

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 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. 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 India s Attractive Macro Environment GDP at Purchasing Power Parity (US$ Tn) Among Top 3 Global Economies with Robust Growth China US$ 19 Tn US US$ 18 Tn India US$ 8 Tn China 7% CAGR US$ 37 Tn US 4% CAGR US$ 28 Tn India 8% CAGR US$ 18 Tn Largest Young Population Globally (2015) 2 47% 48% 6% 33% 32% 52% 59% 15% 10% Age 0 24 Age Age nd Highest Internet Users (2014); To Add 350m in 5 Years* Room to Grow with Low Internet Penetration (2014)* 3 rd Highest Smartphone Users (2014); To Add 300m in 5 Years* % % 47% % US China India India US China India India US China India India E E E Source: 1 Euromonitor; 2 United Nations; *emarketer; *TRAI; *IndiaStat; *FICCI-KPMG 4

5 Indian Online Travel Market Big Opportunity in Hotels Segment with Low Online Penetration Hotels is one of the least penetrated segment within travel categories in India (US$ mn, %) Source: Morgan Stanley Research Source: Morgan Stanley Research India travel market is forecasted to grow to US$ 29.7 Bn by 2017E at a CAGR of 11% between , with growth of online markets ~1.5x the total market Source: PhocusWright; Morgan Stanley Research 5

6 MakeMyTrip Has The Winning Platform To Capture The India Opportunity The Clear Category Leader in India For About a Decade: 29%share of online flights and25% share of online hotels market The Strongest Brand in The Indian OTA Space More than 78% of the traffic is organic Mobile accounts for more than 52% of traffic Market Leading Hotels Strategy 326% FQ3 transaction growth in India standalone online hotels with BoY guidance at % Aggressive plans on budget accommodation space with launch of Value + Strong outbound Packages and Hotels business Mobile First Business With Proven Momentum Over 63% of traffic and transactions derived from India standalone hotels booked on mobile Top rated Travel app on ios with more than 15M downloads Highest Calibre Management Team in The Indian Travel Ecosystem Strategic Investment From Ctrip $180 million in convertible bonds potential 16.6% equity stake Ctrip s CEO James Jianzhang Liang joined our Board of Directors in January 2016 Source: Phocuswright; Morgan Stanley; itunes; company reports 6

7 1 We are the Category Leader in India Since Inception Leading Market Share: Domestic Hotels (Online + Offline) (2) c MM visits in December Q (1) Leading Market Share: Domestic Flights (Online + Offline) (2) c. 76 MM visits in December Q (1) Domestic Hotel market Domestic Air market 10.4% Online share 49.3% Online share 2.6% MakeMyTrip share 15% MakeMyTrip share Online Hotels Others 75% Online Flights Others 71% MakeMyTrip 25% MakeMyTrip 29% Source: PhocuswrightIndia Online Travel Overview Eighth Edition (2015); Morgan Stanley Research; Millward Brown Research Source: Phocuswright India Online Travel Overview Eighth Edition (2015); Company data Notes: 1. In addition, MakeMyTrip attracted c MM visits for international flights and c. 2.5 MM visits for international hotels in the quarter ending December 2015, which was the third quarter for Fiscal Year 2016 ending in March 2. Market penetration data for

8 2 Strong Brand Recognition and Stickiness 78% Direct and Organic Traffic across All Devices Underlines Strong Consumer Pull YTD FY16 (1) Display + Meta, 19% Greater than half of Total Visits Currently From Mobile Mobile Traffic (MM) 87 SEM, 7% Direct, 49% SEO, 29% Source: Company data User Engagement >> All Peers Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Source: Company Data Industry Leading Adoption Across India Avg. Monthly Desktop Page Views (MM) % Respondents usage of OTA players (2) MakeMyTrip Source: Comscore data for April to December 2015 Other OTAs 0 MakeMyTrip Yatra Goibibo Cleartrip IRCTC Direct Airline Top 8 Cities Non Top 8 Cities Website Source: Morgan Stanley Alphawise Survey Feb 2015 Others Notes: 1. Data for three quarters ending December A representative survey of 3,980 Internet users and 1,234 shoppers in December

9 2 Clear Brand Leadership Online Travel Industry Brand Recall Top of Mind Awareness Consideration Top Box Score Top of Mind Awareness Cross Industry Brand Recall Consideration Top Box Score 35 MakeMyTrip MakeMyTrip Y Y 11 9 GI CT E B TC S A TA Competitors Source: Millard Brown Study commissioned by Company 9

10 3 Hotels Are A Fragmented, Untapped Opportunity Named Hotels in India MakeMyTrip Penetration 40,000 1,830 5, % 90-95% 21, % Untapped Opportunities Value+ Hotels Extends 1-2 Star Penetration Unnamed Hotels 30,000 Home stays / Home Rentals Untapped Source: Morgan Stanley Research; company data 10

11 3 We are Creating and Leading The Online Domestic Hotels Market Online Hotels is Unpenetrated Rapidly Growing Supply (2) Clear Leader in Domestic Hotel Market (2) Online Hotel Bookings as a % of Total Hotel Bookings in 2014 (1) % International Property Count 000s Q4FY13 Q4FY14 Q4FY15 Q3FY16 Source: Company data Domestic Property Count 000s Q4FY13 Q4FY14 Q4FY15 Q3FY16 Source: Company data (3) Source: Industry sources, Morgan Stanley Research, PhoCusWright India Air Penetration Notes 1. 10% India hotel penetration is taking into account unnamed hotels 2. FY data for year ending March 3. Market penetration not including non-branded hotels India Hotel Transactions (2) 000s 1,500 1, Source: Company data FY2011 FY2012 FY2013 FY2014 FY2015 1,306 Q3 689 Q2 359 Q1 259 YTD FY16 Domestic Hotels Transactions Evolution % 100% 80% 37% 38% 35% 32% 60% 40% 39% 39% 46% 40% 20% 0% 24% 23% 19% 28% Mar-15 Jun-15 Sep-15 Dec-15 1,2 star 3 star 4,5 star Source: Company data

12 3 We Lead Across All Categories of Hotels among OTAs < 3 star 3 star 4/5 star No. of Hotels Hotels.com 2.81 Yatra 3.70 Travelguru.c om 5.50 Agoda 4.56 Stayzilla 3.17 Expedia 3.10 Clear Trip Others Booking.com 9.22 Make My Trip Go ibibo Stayzilla 1.99 Hotels.com 2.10 Yatra 4.77 Travelguru.c om 4.98 Agoda 5.68 Expedia 4.40 Clear Trip Others Booking.com 9.73 Make My Trip Go ibibo Stayzilla 1.95 Hotels.com 2.43 Yatra 4.87 Travelguru.c om 4.34 Agoda 4.87 Expedia 7.09 Clear Trip Others 6.14 Booking.com Make My Trip Go ibibo Source: Millward Brown Research Note: Research results based on survey conducted on 1,517 hotels for bookings done in Q2 FY16 12

13 3 Acquisitions and Investments for Travel Ecosystem in India and Beyond Focused Acquisitions Enhance The Hotels & Packages Offering MakeMyTrip Innovation Fund International hotel booking site with specific focus on South East Asia Strengthens access to Hotel Inventory in South East Asia Travel metasearch engine Synergistic to the online travel and hotel search Sep 2014: Established Innovation Fund with a corpus of $15 MM Invests up to $3 MM in each start-up or early-stage companies in the travel technology space 18% stake Online planning tool for developing custom-made itineraries Enhance capabilities in the online tour planning space Acqui-hire Intuitive online travel-planning service Enhances focus on innovation in online travel Hotel and property aggregator and tour operator Strengthens South East Asian offering 25% stake Provides hotels with responsive and optimized websites along with booking engines Enables online distribution of accommodation inventory in India Amsterdam based hotel booking portal Helped acquire Tech talent Greater India Bona Vita To build differentiated products in the travel industry Online travel community and holidays-planning recommendation engine Scaling up hotel content and reviews for customers South Asian Travel Agency Strengthens value proposition in South East Asia 13

14 3 Hotel & Packages Strategy Is Delivering Results Hotel & Packages Transactions: 8x Growth Over 4 Years Hotel & Packages Contribution to Net Revenue: > 45% 000s % 2,000 1, ,600 1, ,386 Q3 Q2 Q FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 YTD FY16 0 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 YTD FY16 1,500 Standalone Hotels Transactions: 9x Growth Over 4 Years (1) 000s 1,236 1,711 Source: Company data 1. Based on fiscal year ending March 1, FY11 FY12 FY13 FY14 FY15 Q1FY16 Q2FY16 Q3FY16 India International

15 4 Focused on Building a Mobile First Business Fast Changing to Mobile First with a 360 o Focus on Mobile Brand Spends Directed towards Increasing Mobile Adoption Introduction of Innovative Features & Experimentation with Local Language Testing Multiple Apps with Greater Focus on Personalization RightStay-Mobile First Offering providing offers and deals in a Closed User Group offering Hindi Domestic Flights and Rail Bookings on Mobile Potential to Deepen Corporate Penetration for Online Hotels Segment 15

16 4 Consumers Love Our Mobile Platform 15 MM+ App Downloads To Date 15 MM Dec-13Dec-14Jun-15 Sep-15Dec-15 Source: company data 16

17 4 Great Momentum in Mobile Offering 52% 52% 87 MM 36 MM of Total Traffic on Mobile of Total Shoppers on Mobile Visits on Mobile Quarterly Unique Mobile Visitors Quarterly Source: Online data for quarter ending December 2015 % of Total Visits From Mobile (1) % of Total Shoppers From Mobile (1)(2) 26% 33% 36% 40% 47% 51% 52% 27% 32% 35% 41% 44% 47% 52% Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Source: Company Data Note 1. Data for quarter ending December Shoppers implies visit to a product funnel page indicating intent to look at a travel product on desktop, m-site or app Source: Company Data 17 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16

18 4 Mobile Bookings Especially Robust In Domestic Hotels Total India Hotel Transactions on Mobile (1) 54% of Total Domestic Online Hotels Traffic on Mobile 63% of Domestic Online Hotels Orders on Mobile % of Total Online Domestic Hotels % 32% 55% % FY14 FY15 YTD FY16 Total Flights Transactions on Mobile (1) 36% of Total Domestic Online Flights Traffic on Mobile 38% of Domestic Online Flights Orders on Mobile % of Total Online Flights 000 8% 17% 182% % 1,518 Source: Data for quarter ending December 2015 Note 1. Data for Fiscal Years ending in March 18 FY14 FY15 YTD FY16

19 5 We Have A Strong And Deep Management Bench Deep Kalra Co-Founder, Chairman and Group CEO Started Company in Years of Experience Prior Experience: Keyur Joshi Co-Founder, Strategic Advisor 14 Years of Experience Prior Experience: Mohit Gupta Chief Operating Officer Online 16 Years of Experience Prior Experience: Deepak Tuli Senior Vice President Growth Business 11 Years of Experience Prior Experience: Saujanya Shrivastava Chief Marketing Officer 20 Years of Experience Prior Experience: Rajesh Magow Co-Founder and Chief Executive Officer India 22 Years of Experience Prior Experience: Mohit Kabra Group Chief Financial Officer 21 Years of Experience Prior Experience: Ranjeet Oak Chief Business Officer - Holidays 16 Years of Experience Prior Experience: Sanjay Mohan Chief Technology Officer India 20 Years of Experience Prior Experience: Yuvaraj Srivasta Chief Human Resource Officer 18 Years of Experience Prior Experience: Anshuman Bapna Chief Product Officer 15 Years of Experience Prior Experience: 19

20 6 Strategic Investment in MakeMyTrip by Ctrip Ctrip, China s leading OTA, invested $180m in MakeMyTrip via convertible bonds The bonds could convert into approximately a 16.6% stake in MMYT. In addition, MMYT has agreed to allow Ctrip to purchase an additional 10% of MMYT shares Ctrip s CEO James Jianzhang Liang joined the MakeMytrip Board of Directors in January 2016 Mutually-beneficial relationship will include sharing of supply inventory and best practices in many areas, such as: Mobile app development; Budget sector share gains, brand building, and profitability in competitive environments; Harvesting and maintenance in packaged travel business as travelers move to a la carte booking 20

21 Robust Financial Profile Industry Leading Scale Industry Leading Revenue Growth Good Business Mix With Air & Hotels/Packages contributing equally Proven Operating Leverage Strong Balance Sheet 21

22 Strong Booking and Revenue Growth in Hotels and Packages Gross Bookings Net Revenue (1) (US$ MM) CCG +32.2% yoy (US$ MM) CCG +32% yoy $1,500 $1,000 $ $ CAGR: 22.1% CCG: 31.2% $1, $1, $1, $1, $140 $120 $100 $80 $60 $ $88 $ CAGR: 22.8% CCG: 32.0% 28 $ $ $ $ , $40 $ $0 FY2011 FY2012 FY2013 FY2014 FY2015 YTD FY2016 $0 FY2011 FY2012 FY2013 FY2014 FY2015 YTD FY2016 INR/USD INR/USD Air Ticketing Hotels and Packages Air Ticketing Hotels and Packages Emerging Segments Source: company data Source: company data Note: 1. Net revenues represent revenues minus service costs CCG = Constant Currency Growth 22

23 Improving Mix and Margins with Strategic Focus on Hotels and Packages Segment Combined Net Revenue Margin Air Ticketing Net Revenue Margin 10% 8% 6% 7.9% 8.5% 7.2% 8.1% 8.1% 7.6% 8% 6% 7.4% 7.9% 6.0% 6.6% 6.1% 5.6% Multiple sources of Net Revenue Commissions and volume incentives from airlines 4% 4% Convenience & Service fees from customers 2% 2% Fees from GDS partner 0% FY2011 FY2012 FY2013 FY2014 FY2015 YTD FY2016 Adjusted Operating Profit * 0% FY2011 FY2012 FY2013 FY2014 FY2015 YTDFY2016 Hotels and Packages Net Revenue Margin $MM $16 $8 $0 FY2011 FY2012 FY2013 FY2014 FY2015 $10.9 $4.6 $0.5 YTD FY % 12% 9% 11.5% 11.9% 12.0% 12.6% 13.2% 12.4% Effective Product Bundling & Scale Mark up on Net Rates Commissions & volume incentives from hoteliers ($8) ($5.1) ($3.5) ($16) ($24) 7.5% 12.7% Adj. Op Margin ($20.8) 6% FY2011 FY2012 FY2013 FY2014 FY2015 YTD FY2016 Source: company data *See Reconciliation of IFRS to Non-IFRS Metrics 23

24 Proven Operating Leverage with Increasing Growth to Leverage Mobile & Hotels Opportunity Operating Costs (Adjusted) 14.0% Personal Expenses Payment Gateway SGA Marketing Depreciation & Amortization 12.0% Hotels and Packages Mix 17.9% 20.7% 31.3% 37.6% 45.1% 46.0% 10.0% 8.0% 6.0% 7.7% 7.8% 8.0% 0.3% 0.3% 0.3% 1.7% 1.7% 1.7% 8.7% 0.3% 2.2% 8.5% 0.4% 2.6% 9.5% 0.4% 3.4% 4.0% 2.5% 2.5% 2.7% 2.7% 2.2% 2.4% 2.0% 0.0% 1.3% 1.3% 1.3% 1.4% 1.4% 1.4% 1.9% 2.0% 2.0% 2.1% 1.9% 1.9% FY2011 FY2012 FY2013 FY2014 FY2015 YTD FY2016 Source: company data Note : All figures as % of Gross Bookings 24

25 Financial Recap FY2013 FY2014 FY2015 Q1 FY16 Q2 FY16 Q3 FY16 Air Ticketing Gross bookings growth 26% 11% 26% 24% 16% 10% Transactions growth 2% 5% 36% 46% 7% 35% Net Revenue growth -3% 21% 17% 18% 7% 0% Net Revenue to Bookings 6% 7% 6% 6% 6% 6% Hotels & Packages Gross bookings growth 65% 48% 50% 0% 25% 31% Transactions growth 66% 53% 59% 14% 82% 148% Net Revenue growth 66% 54% 58% 10% 16% 18% Net Revenue to Bookings 12% 13% 13% 13% 13% 12% Hotel and Packages as a % of total net 31% 38% 45% 48% 40% 49% revenue Gross Bookings and Net Revenue Growth Rates are based on constant currency rates Source: company data; 25

26 Investment Highlights Indian Economy & Internet Markets are at a Visible Inflection Point MakeMyTrip has Maintained its Undisputed Leadership MakeMyTrip is India s #1 Online Travel Brand MakeMyTrip has Gone Mobile & has a Robust Mobile Strategy MakeMyTrip is the Clear OTA Leader in Indian Hotels & Packages Segment MakeMyTrip has a Proven Leadership Team Superior Financial Profile Strategic Investment From Ctrip China s Leading OTA Competition in India OTA market is weakening 26

27 Reconciliation of IFRS to Non-IFRS Metrics Reconciliation of Adjusted Operating Profit (Loss) For the : For the : Year ended March 31, Quarter ended, in thousands (Unaudited) Jun Sep Dec-15 Results from operating activities as per IFRS (6,010) 4,062 4,005 (18,062) (15,322) (14,540) (6,130) (9,143) (17,053) Add: Employee share-based compensation costs 6, ,894 11,667 11,097 12,308 3,915 3,863 3,139 Less: Income on license acquired (886) Add: Direct cost related to registration of shares by shareholders 115 Less: Gain on bargain purchase (1,168) Add: Merger and acquisitions related expenses Add: Acquisition related intangibles amortization ,389 1, Add: Severance cost related to a prior acquisition 638 Adjusted Operating Profit (Loss) 762 4,589 11,205 (5,118) (3,450) 456 (1,593) (5,722) (13,472) Note: Figures in USD thousands Source: company data 27