MakeMyTrip Limited (NASDAQ: MMYT) Investor Presentation September 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 August 17, 2020 filed with the U.S. Securities Exchange Commission (“SEC”), copies of which are available from the SEC, our website or our In vestor 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 Margin is our segment profitability measure and represents IFRS revenue after adding back customer inducement costs in the nature of customer incentives, customer acquisition costs and loyalty program 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. This metric was previously titled “Adjusted Revenue” in our past public filings in fiscal years 2019 and 2020. For more information, see “About Key Performance Indicators and Non - IFRS Measures” elsewhere in our SEC Form 20F, filed on August 17, 2020. Adjusted Margin % is defined as Adjusted Margin as a percentage of Gross Bookings, and represents commissions, fees, incentive payments and other amounts earned in our business. We follow adjusted 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 Large Long Term Growth Market Available 1 Accelerated Momentum from Offline to Online Buying Behavior Post COVID19 Strong Market Leadership with Multiple Well Recognized Online Travel Brands 2 Well Positioned to Accelerate Share Gains Super App – One Stop for End to End Booking Travel Services 3 Investments in Superior User Experience to Drive Long Term Brand Value Strong Partnerships with Supply Ecosystem 4 Critical in Collaborating to Drive Industry Recovery & Growth Demonstrated Operating Leverage with Scale in Multiple Travel Segments 5 Cost Structure Optimization Accelerated During COVID19 Lockdown 4
Compelling Long Term Macro Growth Drivers Intact Largest Young Population 2 to Drive Digital Adoption Large Economy with Reaccelerating Growth Forcasted 1 2019 2020 2021 44% 50% 6% 4.2% -4.5% 6.0% 31% 52% 17% 6.1% 1.0% 8.2% 29% 59% 12% 2.3% -8.0% 4.5% 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, Growth Projections 2 CIA World Fact book 2020 estimates; China Internet Network Information Center (CNNIC), McKinsey Global Institute Digital India 5
Large Growth Opportunities in Travel 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% Outbound $12 Total 10% Outbound $6 Hotels $21 Hotels $11 FY2025: $84 Billion FY2019: $49 Billion Source: Goldman Sachs Research Estimates 6
Long Term Online Growth Potential Hotel Booking Inter-City Bus Ticketing Flight Ticketing 30% Inter-City Bus 50% 46% Domestic Online Booking 40% Outbound Domestic Ticket 46% 54% 54% Air Air Distribution Penetration 25% 70% 15% 0% Online Offline (including Supplier Direct) 2020 2025 Online Offline Source : DGCA July 2020, GDS & company estimates Source : 2020 Company Estimates, 2025 forecast by Goldman Sachs Source : Internal estimates based on revenue share of domestic private bus market Leading Domestic & International High Fragmentation of Accommodations High Fragmentation of Bus Operators – Online Market Share Supply – Largely Independent Properties Seeking Digitization & Online Distribution Fast Growing Air Travel Market with Win-Win Distribution Relationships 25+ Road Transport Corporations within Online Share Shift Opportunities Available Available with Property Owners India – State Government Operators Post COVID19 Lockdown Recovery Enabling Technology to Digitize Property 2,500+ Active Bus Operators Signed on Begins in FY2021 (CAPA Projections for FY21) Distribution Management Platform with 1+ Million Seats Bookable • Domestic Traffic: 55-70 million • International Traffic: 20-27 million Low Online Booking Penetration: Unique Bus Operator GDS Platform to 10% to 15% online Digitize Inventory & redBus App for Online Establishment of Air Travel Bubbles to Distribution Aid in Recovery of International Flights Estimated Domestic Supply of 2 Million Hotel Rooms International Growth Opportunities 200 operational airports by 2024 (70 airports International ready) 700k+ International Accommodations – Aviation Ministry Sept 2019 Available via Direct Contracting & Affiliates 7
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