MAKEMYTRIP LIMITED (NASDAQ: MMYT) INVESTOR PRESENTATION - AWS
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MakeMyTrip Limited (NASDAQ: MMYT) Investor Presentation June 2018
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 July 18, 2017 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.
2
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 bus and rail tickets and fees
earned by facilitating travel insurance policies to customers.
Net Revenues or Revenues less Service Costs represents IFRS revenue after deducting cost for the acquisition of relevant services
and products for sale to customers and adding back certain expenses in the nature of promotions which had been adjusted against
revenue. Cost for the acquisition of relevant services and products for sale to customers include 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
3
Key Investment Highlights
1
Leading OTA with Multiple Brand Strategy & Accredited Hotel Brands
(GoStays & MMT Assured)
2 Hotels & Packages Contributing to Over Half of Net Revenues
3 Large Total Market Share in Air Ticketing, Online Bus Ticketing & Online Hotel Bookings
4 Leveraging a Fast Growing Smartphone Internet Ecosystem in India
5 Strong & Experienced Management Team
6
Driving Online Growth in Underpenetrated Hotels Segment with Improving Spend
Efficiencies to Leverage Fast Growing Online Customer Base in India
4
Attractive Macro Growth Drivers
Fastest Growing Large Economy1 Largest Young Population (2017)2
2018 2019 46% 49% 6%
7.4% 7.8%
32% 52% 16%
6.6% 6.4%
30% 59% 11%
2.7% 2.5%
Age 0–24 Age 25–64 Age 65+
2nd Largest Base Growth Driven by 2nd Largest Base of Active
of Internet Users (in millions) Low Internet Penetration Smartphone Users (in millions)
760
850 96%
772 663
478
500 60%
55%
312 37%
224
US China India India US China India India US China India India
2018 2022E 2018 2022E 2018 2022E
Source: 1IMF World Economic Outlook, Real GDP Growth 2CIA World Factbook 2017 estimates;
*Internet Live Stats Dec 2017, IAMAI estimates for India Internet users in 2018, India’s Trillion
Dollar Digital Opportunity” 5
Large Domestic Travel Market with High Growth & Underpenetrated Segments
Online Flight Ticketing Online Hotel Booking
50.0
Millions of Domestic Passengers Flown
45.0
40.0
35.0 33.8
32.2
Source: DGCA.nic.in
28.9 28.8
30.0 27.2 27.3
25.1
India domestic hotels Supply:
24.6
25.0 23.0 100k Properties
2 million rooms, growing +10% p.a.
20.0
Average occupancy rates @ 65%
15.0
JFM AMJ JAS OND JFM AMJ JAS OND JFM Current Online Penetration Rates:
2016 2016 2016 2016 2017 2017 2017 2017 2018
YoY 15% going to 30% by 2020 per BCG-Google
Growth 24% 21% 24% 23% 19% 18% 15% 18% 24%
%
Low penetration of hotels booked online
relative to developed markets presents large growth
opportunities
Continued robust domestic air passenger growth
UDAN program to increase regional
air connectivity via subsidies & fare caps
India China EU US
***********************************************************
FY2019 Domestic Aviation CAPA Forecasts: 10% - 15% 25% - 30% 41% 46%
Passengers growth: 18% - 20% Source: Morgan Stanley India Internet: Chart of the Week: Online penetration of
Capacity growth: ~25% hotel bookings is low and has room to grow
6
Multiple Brands with Superior Online Scale & Reach
Comprehensive Product Offerings | Expanded Customer Reach | Cross Selling Opportunities
167 97 31
Million Million Million
Total Unique Monthly Transacted
Visitors Shopper Visits Customers
129 18
Million Million
Cumulative App Monthly Active
Downloads Mobile Users
Source: Company data as disclosed on Q4 FY2018 Earnings Call & SEC Form 6K Filed on May 30, 2018
7
Multiple Brand Positioning with Distinct Go to Market Strategies
Hotel Segment Focus Mid-premium (3/4/5 star); > INR 3,500 GoStays Budget Hotels (2/3 star); < INR 3,500
Leisure Travel Expert which helps users Delivering value to travelers through
Core Brand Messaging
Discover the World. smart product & tech innovations
Differentiated Consumer Pay @ Hotel; Zero Cancellation Charge; Slot Bookings, Early Check-In;
Offerings Best Price Guarantee Couple Friendly Hotels
Build Preference & Choice largely through Offline Mediums (Kiosks, In-flight Branding, Airport
Acquisition Strategy
Credible Online Channels & ATL & Railway Station Signage), ATL & Online Channels
Loyalty Enablers MMT BLACK, MMT DoubleBlack GoContacts, GoCash+, GoStays, Network effects
Original Hotel Content, Personalized Listing, Traveler Rating and Reviews, Q&A,
Product Features
Video Hotel Content Video Product Marketing Features
Solving for Key Consumer Barriers Drive “network effect” through GoCash+.
Campaign Strategy (Advanced Payment & Cancellation Charge) Offers Differentiated & Powerful Budget Hotel
& Best Price Guarantee Experience through GoStays
8
Superior Brand Awareness
India Online Travel Industry Brand Recall
Consideration Top
Top of Mind Awareness
Box Score
48 MakeMyTrip
47
Goibibo
13 18
12 YT 8
3 CT 9
2 Other 7
50 25 0 0 25 50
Competitors
Source: March 2018 Millard Brown Study commissioned by Company 9
Online Travel Market Leadership Gains Since Initial Public Offering
Domestic Air Ticketing
Total OTA Market Share3
(JFM 2018)
Other
14%
India Online Travel Market1 Indian Online Travel Market2
(2010) (2017) Cleartrip
10%
MakeMyTrip
Others & Goibibo
Other 11% 64%
10% Yatra
12%
Cleartrip #2 & #3 Player
26%
18% MakeMyTrip &
MakeMyTrip Goibibo
48% 63% Domestic Hotel
Online Market Share2
(2017)
Yatra
24%
#2 & #3
Peers
37%
MakeMyTrip &
Demonstrable Market Share Gains Goibibo
63%
with Widening Gap from Peers
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 the quarter ending March 31, 2018
10Underpenetrated Online Hotels Market - Long Term Growth Opportunities
Premium Hotels Mid Tier Hotels Budget & Alternative
(5 & 4 stars) (3 & 2 stars) Accommodations
$4.8 billion bookings $4.0 billion bookings
$4.0 billion bookings
opportunity opportunity
opportunity
Positioning MakeMyTrip Expanding selection & choice
Differentiated & accredited
as premium brand
supply from 3rd party budget
Enhancing service
hotel chains
Leveraging new loyalty guarantee to users
programs to drive retention
4,600+ goStays available
Offering accredited hotels to
Targeting high spending deliver consistent
goibibo value brand
& repeat customers stay experience
positioning
Delivering superior Supporting customers
GoContacts programs to
end-to-end user experience post sales & on trip
enhance reach
Note: 2017 Bookings opportunity based on company estimates
11Mobile Focused Approach Enabling Continued Reach & Growth
UPI Enabled Payments
New Payment Options
Mobile Air Mobile Hotel Mobile Bus
Ticketing Booking Ticketing
67% 77% 65%
129 mln cumulative app downloads to date Tier II & III
18 mln monthly average active mobiles users penetration
with
81% of monthly shopper visits via mobile apps & web 1.5 MB lite app
*FY2018 mobile transactions as % of total 12A.I. + Machine Learning + Big Data Driving Improved User Experience
A.I. Powered
Chat for Post More
Sales Personalized
Customer Shopping
Service Experiences
Automation
Wider User
Vernacular &
Reach with
Voice Based
WhatsApp
Interactions
Integration
13Driving Customer Retention & Repeat through Loyalty Programs
MMT Black MMT Double Black
Earn Wallet+ Cash by Spending Annual Subscription Model
Wide Range of Redemption Options Value for Frequent Travelers
+750K Enrollees +30K Enrollees
14Corporate Social Responsibility
Planting trees to offset individual’s Safeguarding living culture and artistic Provide minimum level of income and other
CO2 emissions & Zero Single Use heritage and ensuring sanitation and support for disadvantaged groups such as
Plastics across offices cleanliness of the surroundings to offset the poor, elderly, disabled, students, minor
damage from mass tourism 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.
15Experienced Founding & Management Team Driving Execution
Deep Kalra Rajesh Magow Mohit Kabra
Co-Founder, Chairman and Group CEO Co-Founder and CEO India Group Chief Financial Officer
- Started MakeMyTrip in 2000 - Senior founding team member - 23+ Years of Experience
- Group Chairman - Member of the Board of Directors - Prior Experience: Kohler India, PepsiCo,
Colgate & Seagrams
- 25+ Years of Experience - Previously Group CFO and Chief
Operating Officer - Bachelor of Commerce - St. Joseph’s Junior
- Prior Experience: GE Capital India, AMF College
Bowing Inc. & ABN AMRO Bank - 24+ Years of Experience
- Chartered Accountant from Institute of
- Board member & past President of The IndUS - Prior Experience: eBookers.com, Aptech Chartered Accountants of India
Entrepreneurs (TIE) New Delhi chapter Limited & Voltas Limited
- Cost Accountant from Institute of
- Founding member of Ashoka University & - Independent Director of FlipKart Board
Cost Accountants of India
serves on the Board & Governing Council
- Chartered Accountant from Institute of
- Bachelor’s degree in Economics – Chartered Accountants of India
St. Stephen’s College
- MBA IIM Ahmedabad, India
16Financial Overview
Results presented include the consolidation of ibibo group from
February 1, 2017 onwards, unless otherwise noted
17Financial Summary for Full Year Fiscal 2018 Source: Company data, SEC 6K Filed on May 30, 2018. Gross Bookings include Bus Ticketing gross booking as disclosed in FORM 6-K YoY % growth for Revenue Less Service Costs, flight segments, room nights stayed, bus tickets sold on pro forma basis 18
High Revenue Less Service Costs Growth for FY2018 (Pro Forma basis)
Air Ticketing Hotels & Packages Other
Full Year FY18 Total Revenue Less Service Costs
$577.1 million, +39.5%
% change represents the comparison of FY18 reported revenue less service costs to the Pro Forma
revenue less service costs disclosed on SEC form 6-K filed on July 18, 2017
19High Net Revenue Growth & Improving Marketing Spend Efficiencies
($ in millions) Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18
Total Revenue Less Service Costs (Net Revenue) $141.2 $139.2 $151.4 145.3
Air Ticketing Net Revenue $45.6 $47.1 $50.9 $58.5
Hotels & Packages Net Revenue $81.3 $79.2 $83.9 $69.4
Other Net Revenue $14.3 $12.9 $16.6 $17.5
Total Net 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%)
Sequential Reduction in Adjusted Operating (Losses)
Driven by Increased Marketing Efficiencies & Improved Unit Economics
Source: Company data, SEC 6-K Filings
Total Gross Bookings includes Bus Ticketing bookings
Marketing & Sales Promotion includes adjustments for other promotions netted against
revenue less service costs
20Improving Mix and Margins with Strategic Focus on Hotels and Packages
10% Air Ticketing Multiple sources
Net Revenue Margin of Net Revenue
7.7% 7.5% • Commissions and volume
8%
6.6% incentives from airlines
6.1% 6.0%
Total Net Revenue as 6%
• Convenience & Service
% of Total Gross Bookings1 fees from customers
4%
14%
12.6% • Fees from GDS partner
12% 11.3% 2%
10% 8.8% 0%
8.1% 8.1%
8% FY14 FY15 FY16 FY17 FY18
6%
4%
25% Hotels and Packages 22.6% Effective Product
2%
Net Revenue Margin Bundling & Scale
20% 18.8%
0% • Mark up on Net Rates
FY14 FY15 FY16 FY17 FY18 15.3%
15% 12.6% 13.2% • Commissions & volume
incentives from hoteliers
10%
5%
0%
FY14 FY15 FY16 FY17 FY18
Note 1: FY18 calculations includes Bus Ticketing bookings, prior periods only included air ticketing
& hotels & packages gross bookings 21You can also read
