MakeMyTrip Limited (NASDAQ: MMYT) Investor Presentation August 2017
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
Investment Highlights Leading OTA with Comprehensive Product Offerings via Multiple Brands 1 Well Recognized Online Travel Brands with Superior Selection & Reach 2 Driving Share Gains in India’s Underpenetrated Online Travel Market 3 Constant Product & Technology Innovations for Customers & Suppliers 4 Strong & Experienced Management Team 5 Strong Financial Profile with Strategic Investors Focused on High Growth 6 4
Attractive Macro Growth Drivers Among Top 3 Global Economies with Robust Growth 1 Largest Young Population Globally (2015) 2 China GDP at Purchasing Power Parity (US$ Tn) 40 7% CAGR US$ 37 Tn 35 47% 48% 6% China US 30 US$ 19 Tn 4% CAGR 25 US$ 28 Tn 33% 52% 15% 20 US India US$ 18 Tn 15 8% CAGR US$ 18 Tn 10 India 32% 59% 10% 5 US$ 8 Tn 0 Age 0 – 24 Age 25 – 64 Age 65+ 2015 2017 2019 2021 2023 2025 Room to Grow with Low Internet 2 nd Highest Internet Users 2 nd Largest Smartphone Users Penetration 702 89% 721 730 526 462 52% 52% 350 35% 287 191 US China India India US China India India US China India India 2016 2020E 2016 2020E 2016 2020E Source: 1 Euromonitor; 2 United Nations; *Internet Live Stats, The Future of Internet in India” NASSCOM August 2016 5
India’s Online Travel Opportunity ($ in Billions) Addressable Total Travel Market Growth Online Travel Market Growth Segments 2015 2021e CAGR 2015 2021e CAGR Domestic Air $5.4 $10.0 11% $2.7 $6.0 14% International Air $3.0 $5.3 10% $1.5 $2.6 10% Domestic Hotels $10.0 $25.2 17% $1.4 $10.1 39% Outbound Travel $12.5 $21.9 10% $0.9 $3.3 25% Domestic Bus $3.1 $5.0 8% $0.5 $1.5 22% Total Booking $34.0 $67.4 12% $7.0 $23.5 23% Large Addressable Market with +$67 billion in Travel Bookings by 2021 Source: Morgan Stanley Research, e=Morgan Stanley Research estimates. 6
Multiple Brands & Comprehensive Offerings • Wide Range of Travel Product Offerings • Expanded Combined Customer Reach • Cross Selling Opportunities Across all 3 Platforms • 75+ Million Monthly Shopper Visits • 15+ Million Monthly Active Mobile Users • 7.8 million Air Ticketing Flight Segments in 1Q FY18 • 5.8 million Hotels Room Nights Stayed in 1Q FY18 Source: Company data as disclosed on Q1 FY2018 Earnings Call & SEC Form 6K Filed on August 9 2017 7
Multiple Long Term Growth Drivers Alternative Accommodations Domestic Hotels International Hotels Bus Ticketing International Outbound Flights SME Travel Investing in Underpenetrated Travel Segments for Long Term Growth 8
Domestic Hotels & Alternative Accommodations Offerings Across All Brands 13,500+ Alternative 45,000+ Domestic Hotel Accommodations properties properties 9
Enhancing Customer Experience via Product & Technology Innovations Machine Learning & Big Data to Drive Unique In App Travel Reviews & Greater Personalization Interactions with Suppliers Artificial Intelligence Powered Online Wallets & Location Based Services ChatBots for Customer Support Live Bus Tracking Feature Referrals 10
Mobile Continues to Lead Growth & Drive Online Penetration • Top Ranked iOS & Google Play Apps • Driving Tier II & III penetration • 1 MB Lite App Available • 90+ million cumulative app downloads to date • 15+ million monthly average active mobiles users • 78% of Monthly Shopper Visits via Mobile Air Mobile Bus Mobile Hotel Mobile App & Web Ticketing*: Ticketing*: Booking*: 59% 47% 78% • BHIM ready – ICICI Bank integration *Q1 FY2018 mobile transactions as % of total 11
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