MakeMyTrip Limited (NASDAQ: MMYT) Investor Presentation February 2018
Safe Harbor Certain statements contained in this presentation are “forward - looking statements” within the meaning of the safe harbor provisions of t he 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”, “es tim ate”, “expect”, “project”, “intend”, “plan”, “believe”, “seek”, “will”, “may”, “should”, “opportunity”, “target” or other words that relate t o 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 share s, MMYT’s reliance on its relationships with travel suppliers and strategic alliances, failure to further increase MMYT’s brand recognition to obta in 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 ser vices 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 and MMYT’s 6 - K dated November 22, 2016, each filed with the U.S. Securities Exchange Commission (“SEC”), copies of which are availab le 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 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. 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 31 st 3
Key Investment Highlights Leading Online Travel Agency with Multiple Well Recognized Brands 1 Hotels & Packages Business Contributing to Over Half of Net Revenues 2 Large Total Market Share in Transportation Ticketing & Hotel Bookings 3 Leveraging a Fast Growing Smartphone Internet Ecosystem 4 Strong & Experienced Management Team 5 Driving High Growth in Underpenetrated Hotels Segment 6 with Improving Spend Efficiency 4
Attractive Macro Growth Drivers Fastest Growing Large Economy 1 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 2nd Largest Base of Growth Driven by of Internet Users Active Smartphone Users Low Internet Penetration 96% 663 772 650 735 416 55% 481 52% 36% 312 224 US China India India US China India India US China India India 2017 2020E 2017 2020E 2017 2020E Source: 1 IMF World Economic Outlook, Real GDP Growth 2 CIA World Factbook 2017 estimates; *Internet Live Stats Dec 2017, IAMAI estimates for India Internet users in 2017, 5 KPMG April 2017 analysis “Indian Languages Defining India’s Internet”
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 32.2 Source: DGCA.nic.in 28.9 28.8 30.0 27.2 27.3 25.1 24.6 23.0 25.0 20.0 15.0 JFM AMJ JAS OND JFM AMJ JAS OND 2016 2016 2016 2016 2017 2017 2017 2017 YoY Growth 15% 18% 24% 21% 24% 23% 19% 18% % Low penetration of hotels booked online Currently 15% going to 30% by 2020 (BCG-Google) Robust domestic air passenger growth Currently offering 50,000 properties High growth driven by pent up demand across India across 3 platforms & affordable airfares Operating sub brands to address budget UDAN program to increase regional accommodation market needs air connectivity via subsidies & fare caps Shifting booking behavior online Round 2 of route allocations completed by addressing customer concerns 6
Multiple Brands with Superior Online Scale & Reach Comprehensive Product Offerings | Expanded Customer Reach | Cross Selling Opportunities 94 29 166 Million Million Million Monthly Transacted Total Unique Shopper Visits Customers Visitors 17 115 Million Million Monthly Active Cumulative App Mobile Users Downloads Source: Company data as disclosed on Q3 FY2018 Earnings Call & SEC Form 6K Filed on February 8 2018 7
Superior Brand Awareness India Online Travel Industry Brand Recall Consideration Top Top of Mind Awareness Box Score MakeMyTrip 51 46 Goibibo 13 14 11 8 YT 6 11 CT 10 3 Other 50 25 0 0 25 50 Competitors Source: November 2017 Millard Brown Study commissioned by Company 8
Underpenetrated Online Hotels Market - Long Term Growth Opportunities Mid Tier Hotels Budget & Alternative Premium Hotels (3 & 2 stars) Accommodations (5 & 4 stars) Expanding selection & choice Positioning MakeMyTrip as premium brand Differentiated supply from Enhancing service 3 rd party budget hotel brands guarantee to users Leveraging new loyalty programs to drive retention goibibo value brand Offering accredited hotels to positioning deliver consistent Targeting high spending stay experience & repeat customers GoContacts programs to enhance reach Supporting customers Delivering superior post sales & on trip end-to-end user experience Focused on expanding Alternative Accommodations 9
Proprietary Platform to Aggregate Content & Rooms from Independent Hotels Common Hotel Supplier Extranet Platform Single platform for multiple brand inventory & rates management Supplier driven discounting capabilities Competitive & demand signals to provide (hyper local market) intelligence Management of Goods & Services Tax compliance for hoteliers Hotelier & guest live chat Participation in Q&A: talk to guest before booking 10
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