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MakeMyTrip Limited (NASDAQ: MMYT)Investor PresentationMay 2019
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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 opposed to past or current events. Among the factors that could cause actual results to differ materially include, but are not limited to, the 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 of the acquisition, the inability to recognize the anticipated benefits of the combination of MMYT and ibibo Group, including the realization of 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 June 20, 2018 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 cancellations, discounts 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 rail tickets and fees earned by facilitating travel insurance policies to customers.
Adjusted Revenue represents IFRS revenue after adding back promotion expenses in the nature of customer discounts, customer inducement or acquisition costs and loyalty programs costs which are reported as a reduction of revenue, and deducting the cost of acquisition of services primarily relating to sales to customers where the company acts as the principal. We believe that Adjusted Revenue reflects the value addition of the travel services that we provides to our customers.
Adjusted Revenue Margins is defined as Adjusted Revenue as a percentage of Gross Bookings, and represents commissions, fees, incentive payments and other amounts earned in our business. We follow adjusted 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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Key Investment Highlights
Market Leader with Well Recognized Brands Serving All Travel Needs
Playbook of Product Innovations & Robust Tech Platforms to Drive Scalability with Ease
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1
2
3
4
5
Mobile First Approach Helping Tap Smartphone Driven Internet Ecosystem
Strong Partnership with Fragmented Hotel Supply Ecosystem
Demonstrated Operating Leverage with Scale in Multiple Travel Segments
Experienced Management Team with Deep Knowledge of Local Travel Landscape7
Focus on High Growth & Share Gains in Key Underpenetrated Travel Segments
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Fastest Growing Large Economy1
Source: 1IMF World Economic Outlook, Real GDP Growth 2CIA World Fact book 2018 estimates;
China Internet Network Information Center (CNNIC), McKinsey Global Institute Digital India
45%
32%
30%
49%
52%
59%
6%
16%
11%
Age 0–24 Age 25–64 Age 65+
Largest Young Population (2018)2
2023E2018
224
817
478
700
US China India India
2nd Largest Base of Smartphone Users (in millions)
96%
60%
44%
60%
US China India India
2023E2018
Growth Driven by Low Internet Penetration
312
829
560
800
US China India India
2023E2018
2nd Largest Base of Internet Users (in millions)
Macro Growth Drivers Provide Long Term Growth Opportunities
2019 2020
7.3% 7.5%
6.3% 6.1%
2.3% 1.9%
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Multiple Brands & Comprehensive Products: Expanded Customer Reach
+39 Million Transacted Customers (Life to Date)
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Superior Brand Awareness
50
12
11
2
2
02550
45
21
5
8
7
0 25 50
MakeMyTrip
Competitors
Source: March 2019 Millard Brown Study commissioned by Company
Top of Mind AwarenessConsideration Top
Box Score
Goibibo
YT
CT
Other
India Online Travel Industry Brand Recall
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MakeMyTrip63%
#2 & #3 Peers37%
Domestic Hotel Online Market Share2
(2017)
MakeMyTrip63%
Yatra12%
Other25%
Domestic Air Ticketing Total OTA Market Share3
(March 2019)
MakeMyTrip48%
Yatra24%
Cleartrip18%
Others10%
India Online Travel Market1
(2010)
Clear Online Market Leadership - Share Gains Since I.P.O.
MakeMyTrip63%
#2 & #3 Player26%
Others11%
1 – Phocuswright 2010 Research in Gross Bookings share
2 – Morgan Stanley Research Estimates for 2017, as of May 2018
3 – Calculated as per DGCA Segment data for March 2019
Indian Online Travel Market2
(2017)
Demonstrable Market Share Gains
with Widening Gap from Peers
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Large Domestic Travel Market with High Growth & Underpenetrated Segments
3 Largest Aviation Market by 2022
Liberal Open Sky Policy
UDAN Regional Connectivity Program
Pending deliveries of 1,000+ aircrafts by domestic
airlines
190-200 operational airports by 2040
2X current operational airports
Online Flight Ticketing Online Hotel Booking
India domestic hotels Supply:
Line of sight to over 100k Properties
2 million rooms, growing about 10% p.a.
Average occupancy rates in 60%
Current Online Penetration Rates:
15% going to 30% by 2020 per BCG-Google
Low penetration of hotels booked online
relative to developed markets presents large growth
opportunities
27.2 27.328.9 28.8
32.233.8 34.7 34.3
36.2 35.5
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
OND2016
JFM2017
AMJ2017
JAS2017
OND2017
JFM2018
AMJ2018
JAS2018
OND2018
JFM2019
Mill
ions o
f D
om
estic P
assengers
Flo
wn
Source: DGCA.nic.in
YoY
Growth % 12%23% 19% 18% 15% 18% 24%
India China EU US
10% - 15% 25% - 30% 41% 46%
Source: Morgan Stanley India Internet: Chart of the Week: Online penetration of
hotel bookings is low and has room to grow
20% 19%
Source: Vision 2040 for the Civil Aviation Industry in India – KPMG Jan 2019
5%
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Full Range of Accommodations Offered in Underpenetrated Hotels Market
Premium Hotels(5 & 4 stars)
Positioning MakeMyTrip
as premium brand
Leveraging loyalty programs
to drive retention
Targeting high spending
& repeat customers
Delivering superior
end-to-end user experience
Mid Tier Hotels(3 & 2 stars)
Expanding selection & choice
Enhancing service
guarantee to users
Offering accredited hotels to
deliver consistent
stay experience
Supporting customers
post sales & on trip
Budget & Alternative
Accommodations
Budget Hotel Certification
Program - MMT Assured &
goStays
9,500+ goStays available
16,000+ Alternative
Accommodations - Scaling
Inventory for Long Term
Demand Growth
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International Outbound Travel – Next Big Growth Opportunity
International
Flights
- Comprehensive
selection & choice of
flight option
- Multiple Payment
Options Available
- Relevant &
Contextual content
for target customers
- Continuously
improving customer
experience
International
Hotels
- Full access to global
hotels
- Focused on top
Outbound Cities in
Region
- Contracted 7,700
hotels directly to
provide Indian
Traveler friendly
hotels
- Enhanced Indian
Traveler content
available
Regional Outbound Destination a Driver of Growth
50 Million Outbound Trips Forecasted by 2020*
Source: United Nations World Tourism Organization
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Activities & Experiences
+2,600
Activities &
Experiences
Available
Driving App
Usage
Frequency
Greater
Stickiness
On App
Acquisition of
New Users
to Overall
Platform
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Addressing Corporate Travel Needs
Small & Medium Enterprise
Self Service Solution
Managed Corporate Travel
Enterprise System
Online Technology & Automation Focused Solutions to
Address Large Corporate Travel Market
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Mobile Centric Approach Driving Continued Reach & Growth
Mobile Air
Ticketing
88%
Mobile Bus
Ticketing
66%
Mobile Hotel
Booking
80%
*FY2019 mobile transactions as % of total
Tapping into next
100 million
new Internet
users via Train
Mobile Train
Ticketing
97%
New Digital Payments Platform to
Drive Greater Adoption of e-Commerce
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A.I. + Machine Learning Leveraging Big Data to Drive Better User Experience
Chatbots for Booking
& Post Sales Support
WhatsApp Integration for
Seamless Experience &
Wider Customer Reach
Personalized User
Experience
via Big Data Analytics
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Innovative & Effective Loyalty Programs
MMTBLACK
Earn Wallet+ Cash by Spending
Wide Range of Redemption Options
+1 Million Enrollees
MMTDOUBLEBLACK
Annual Subscription Model
Value for Frequent Travelers
+83K Enrollees to date
Redesigned goRewards
Referrals Drive Network Effect
UGC reviews & content
Enhanced Platform Credibility & Utility
+1.9 Mln Registered Users
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Corporate Social Responsibility
Planting trees to offset individual’s
CO2 emissions & Zero Single Use
Plastics across offices
Safeguarding living culture and artistic
heritage and ensuring sanitation and
cleanliness of the surroundings to offset
damage from mass tourism
Provide minimum level of income and other
support for disadvantaged groups such as
the poor, elderly, disabled, students, minor
children
‘Be the Change’ is a crowd sourced funding initiative, created with a vision to impact society and the
environment positively. It is focused on offsetting our carbon footprints and promoting sustainable tourism
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Experienced Founding & Management Team Driving Execution
Deep Kalra Co-Founder, Group Chairman and Group CEO
- Started MakeMyTrip in 2000
- Group Chairman
- 27+ Years of Experience
- Prior Experience: GE Capital India, AMF Bowing Inc. & ABN AMRO Bank
- Board member & past President of The IndUSEntrepreneurs (TIE) New Delhi chapter
- Founding member of Ashoka University & serves on the Board & Governing Council
- Bachelor’s degree in Economics –St. Stephen’s College
- MBA IIM Ahmedabad, India
Rajesh MagowCo-Founder and CEO India
- Senior founding team member
- Member of the Board of Directors
- Previously Group CFO and Chief Operating Officer
- 26+ Years of Experience
- Prior Experience: eBookers.com, AptechLimited & Voltas Limited
- Independent Director of FlipKart Board
- Chartered Accountant from Institute of Chartered Accountants of India
Mohit KabraGroup Chief Financial Officer
- 25+ Years of Experience
- Prior Experience: Kohler India, PepsiCo, Colgate & Seagram
- Bachelor of Commerce – Osmania University
- Chartered Accountant from Institute of Chartered Accountants of India
- Cost Accountant from Institute of Cost Accountants of India
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Financial Overview
Results presented include the consolidation of ibibo group from
February 1, 2017 onwards, unless otherwise noted
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Strong Growth Momentum in FY2018 Post Ibibo Merger
Air Ticketing Hotels & Packages Other
% change represents the comparison of FY18 reported adjusted revenue to the Pro Forma adjusted revenue disclosed on SEC form 6-K filed on July 18, 2017
Full Year FY18 Adjusted Revenue
$577.1 million, +39.5%
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Financial Highlights for FY2019
Source: Company dataNote: yoy growth rates in constant currency where applicable
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Financial Goals Post IBIBO Merger Realized
($ in millions) Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18
Total Adjusted Revenue $141.2 $139.2 $151.4 145.3
Air Ticketing Adjusted Revenue $45.6 $47.1 $50.9 $58.5
Hotels & Packages Adjusted Revenue $81.3 $79.2 $83.9 $69.4
Other Adjusted Revenue $14.3 $12.9 $16.6 $17.5
Total Adjusted Revenue as % of Total Gross Bookings 12.3% 13.0% 12.8% 12.3%
Total Gross Bookings $1,149.6 $1,070.2 $1,187.3 $1,183.9
Marketing & Sales Promotion Spend $142.4 $135.9 $133.3 $118.0
As % of Total Gross Bookings 12.3% 13.0% 11.2% 10.0%
Adjusted Operating (Losses) ($52.3) ($45.0) ($33.9) ($23.5)
As % of Total Gross Bookings (4.6%) (4.2%) (2.9%) (2.0%)
Source: Company data, SEC 6-K FilingsTotal Gross Bookings includes Bus Ticketing bookings Marketing & Sales Promotion includes adjustments for other promotions netted against adjusted revenue.
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Delivered on Driving Growth while Improving Operating Cost Efficiencies
($ in millions) Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19
Total Gross Bookings* +27% +27% +32% 27%
Adjusted Revenue* +25% +25% +31% 23%
Air Ticketing +24% +31% +32% 17%
Hotels and Packages +20% +18% +26% 21%
Bus Ticketing +49% +37% +43% 41%
Other +91% +96% +87% 68%
Total Adjusted Revenue as % of
Total Gross Bookings12% 13% 13% 12%
(*Growth rates in constant currency year over year
basis)
Marketing & Sales Promotion
Expenses
As % of Total Gross Bookings
10.5% 10.8% 10.4% 9.0%
Adjusted Operating (Losses) ($32.8) ($25.4) ($22.2) ($18.4)
As % of Total Gross Bookings (2.3%) (2.0%) (1.6%) (1.3%)
Source: Company data, SEC 6-K FilingsTotal Gross Bookings includes Bus Ticketing bookings Marketing & Sales Promotion Expenses includes adjustments for promotions netted against adjusted revenue
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12.6% 13.2%15.3%
18.8%
22.6% 23.2%
0%
5%
10%
15%
20%
25%
FY14 FY15 FY16 FY17 FY18 FY19
6.6%6.1% 6.0%
7.7% 7.5% 7.3%
0%
2%
4%
6%
8%
10%
FY14 FY15 FY16 FY17 FY18 FY19
Improving Mix and Margins with Strategic Focus on Hotels and Packages
Air Ticketing Adjusted Revenue Margin
Hotels and Packages Adjusted Revenue Margin
Diversified sources of Adjusted Revenue
• Commissions and volume incentives from airlines
• Convenience & Service fees from customers
• Fees from GDS partner
Multiple Sources of Adjusted Revenue
• Mark up on Net Rates
• Commissions & volume incentives from hoteliers
Total Adjusted Revenue as % of Total Gross Bookings1
8.1% 8.1%8.8%
11.3%
12.6% 12.4%
0%
2%
4%
6%
8%
10%
12%
14%
FY14 FY15 FY16 FY17 FY18 FY19
Note 1: FY18 & onwards calculations includes Bus Ticketing bookings
prior periods only included air ticketing & hotels & packages gross bookings
Targeting Improved Long Term
Total Adjusted Revenue as % of
Total Gross Bookings
Driven by Higher Mix of H&P
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3.6% 3.1%2.1% 1.9% 2.0% 2.0% 2.1% 1.9% 1.9% 2.1% 1.5% 1.4%
1.4% 1.5%1.3% 1.3% 1.3% 1.3% 1.4% 1.4% 1.4% 1.3%
1.1% 1.0%
3.4%2.9%
2.6% 2.5% 2.5% 2.7% 2.7% 2.2% 2.3% 2.1%1.5% 1.4%
5.4%
3.7%
2.1%1.7% 1.7% 1.7% 2.2%
2.6%
5.9%
13.7%
11.5%10.2%
0.5%
0.5%
0.3%0.3% 0.3% 0.3%
0.3% 0.4%
0.4%
0.4%
0.3%
0.2%
0%
5%
10%
15%
20%
25%
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (PF) FY18 FY19
Personnel Expenses Payment Gateway SGA Marketing & Sales Promotion Depreciation & Amortization
11.9%
19.6%
8.7%
16.0%
8.5%8.0%7.8%7.6%
8.5%
14.3%
11.8%
14.2%
Playbook of Driving Scale & Efficiencies -
Started with Air & Holidays, Now Focusing on Hotels
% o
f G
ross
Bo
oki
ngs
45%H&P Adj. Rev Mix51% 54% 54%38%31%21%78%77%75%
Air Adj. Rev Mix
Transitioning from Air to Hotels
Blended Adj. Rev Margin
8.5% 8.4% 7.9% 8.5% 7.2% 8.1% 8.1% 8.8% 12.2% 12.6%
Marketing as % of Adj Rev
44.6% 24.0% 20.4% 19.3% 22.3% 26.2% 30.6% 64.4% 100.7% 91.8%
Note:
Proforma FY17 basis Management estimates
Personnel Expenses excluded share based compensation charges and severance cost related to a prior acquisition
Depreciation and amortization excluded acquisition related intangibles amortization and impairment of intangible assets
SGA excluded Merger and acquisitions related expenses
Marketing & Sales Promotion Include adjustments for promotions netted against adjusted revenue
85%
7.3%
74.0%
52%
12.4%
82.1%