MakeMyTrip Limited (NASDAQ: MMYT) Investor Presentation March 2020
Safe Harbor Certain statements contained in this presentation are “forward - looking statements” within the meaning of the safe harbor provisi ons 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”, “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 23, 2019 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 3 rd 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 31 st 3
Key Investment Highlights Market Leader with Multiple Well Recognized Online Travel Brands 1 High Growth & Share Gains in Underpenetrated Travel Segments 2 Super App – One Stop for End to End Booking Travel Services 3 Strong Partnership with Fragmented Accommodations Supply Ecosystem 4 Culture of Continuous Product Innovations 5 Supported by Robust Tech Platforms to Drive Scalability Demonstrated Operating Leverage with Scale in Multiple Travel Segments 6 Experienced Management Team with Deep Knowledge of Local Travel Landscape 7 4
Long Term Macro Growth Drivers Available Largest Young Population(2020) 2 Large Economy with Reaccelerating Growth Forcasted 1 2019 2020 2021 44% 50% 6% 4.8% 5.8% 6.5% 31% 52% 17% 6.1% 6.0% 5.8% 29% 59% 12% 2.3% 2.0% 1.7% Age 0 – 24 Age 25 – 64 Age 65+ 2nd Largest Base 2nd Largest Base of Growth Driven by of Internet Users (in millions) Smartphone Users (in millions) Low Internet Penetration 96% 829 817 800 700 560 60% 60% 478 44% 312 224 US China India India US China India India US China India India 2018 2023E 2018 2023E 2018 2023E Source: 1 IMF World Economic Outlook, Real GDP Growth 2 CIA World Fact book 2020 estimates; China Internet Network Information Center (CNNIC), McKinsey Global Institute Digital India 5
Large Growth Opportunities Ahead India Travel Market FY2019 India Travel Market FY2025 (In $ billions of Bookings) (In $ billions of Bookings) Rail $9 Rail $7 FY19 – FY25 CAGR Air Bus Air Air 10% $30 $12 $17 Hotels 12% Bus Outbound 11% $8 Bus 8% Rail 4% Outboun Total 10% d $12 Outbound $6 Hotels Hotels $21 $11 FY2025: $84 Billion FY2019: $49 Billion Source: Goldman Sachs Research Estimates 6
Market Leader with Superior Domestic Brand Awareness Top Of Mind Awareness 100 80 69 51 60 40 17 20 6 2 2 0 MakeMyTrip gobibo redBus Yatra Cleatrip Others Consideration Top Box Score 100 87 80 51 60 40 19 20 5 5 5 0 MakeMyTrip gobibo redBus Yatra Cleatrip Others Competitors Source: January2020 KANTAR Brand Health Report commissioned by Company Redbus data from 14th Wave of the Brand Track for India conducted by Nepa 7
Super App of Travel with Multiple Brands - Catering to All Travelers • Air Ticketing – Domestic & International • Hotel Bookings – Domestic & International • Alternative Accommodations • Holiday Packages – Domestic & Outbound • Bus Ticketing – B2C & Supplier Backend Solutions • Intercity Cabs • Rail Ticketing • Attractions & Activities Bookings • Informational Services – Flights & Rail • Payment Options & Flexibility +46 Million Transacted Customers (Life to Date) 8
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