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TRANSCRIPT
Investor Presentation
November 2011
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Safe Harbor Statement
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”, “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 are our ability to maintain and expand our supplier relationships; our reliance on technology, our ability to expand our business, implement our strategy and effectively manage our growth; political and economic stability in and around India; our ability to successfully implement our growth strategy; our ability to attract, train and retain executives and other qualified employees; increasing competition in the Indian travel industry and risks associated with online commerce security. 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 September 2, 2011, filed with the U.S. Securities Exchange Commission (“SEC”). Copies of this material is 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
3
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 3rd 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.
Fiscal Year End – March 31st
Key Investment Highlights
4
Experienced Leadership Team Aligned With Shareholders
Highly Scalable Operating Leverage
India’s Leader in Online Travel & eCommerce
Strong Supplier Partnerships & Innovative Distribution Channels
Advanced & Secure Technology Platform
Multiple Strategies to Drive Earnings Growth
Business Overview
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India: A Growth Story
6
5th Largest Economy Globally Rapidly Growing Middle Class
2010 GDP at Purchasing Power Parity All India Households by Income Brackets
Source: The CIA World Factbook Source: The Economic Times
US$ Tn MM Households
2.2
4.3
3.0
4.0
14.9 14.7
9.9
0
4
8
12
16
European
Union
USA China Japan India Germany Russia
31
54
114
0
50
100
150
2011 2016 2026
160 MM
people
267 MM
people
547 MM
people
100
121*
42
62
81
0
20
40
60
80
100
120
2007 2008 2009 2010 2011
Internet Population Growing Rapidly
7
Currently the 3rd largest Internet population in the world
after China and United States
Rapid Growth in Internet Users
2007-2010 Data Source: Internet World Stats *2011 Forecast: Indian Market Research Bureau (IMRB) & Internet & Mobile Association of India (IAMAI)
Million Users • “1 in 10 Indians will be an Internet user by end of 2011” -The Economic Times November 2011
• Net users growing at the rate of 5 to 7 million per month, should surpass US’s 245 million users in less than 2 years
• Mobile web to drive growth of Internet usage – growing 15% quarter on quarter
• 60 million mobile net users by end of Fiscal 2012
Source: (IMRB) & Internet & Mobile Association of India (IAMAI)
Fast Adoption of Online Travel Bookings
8
India is expected to have the biggest growth in APAC's online travel space by 2012
Source: PhoCusWright, 2010
US$ MM
Growing Travel Market Rising Penetration of Online Booking Total Travel Gross Bookings in India Total Online Gross Bookings in India
US$ MM
22,813
15,808
17,652
19,922
0
8,000
16,000
24,000
2009 2010 2011 2012
7,027
3,342
4,362
5,524
0
1,500
3,000
4,500
6,000
7,500
2009 2010 2011 2012
Travel Industry Capacity Coming Online
9
Aircraft Order Announcements Hotel Chains to Increase Available Rooms
Accor Hotels: 90 more hotels planned by 2015, 21 operational by 2013 Hilton: currently operates 5 hotels, plans to have 14 hotels in next 2 years Carlson Hotels: 100 total hotels planned by 2015 “Ambitious 2015” plan ITC : looking to double its room inventory to 16,000 plus rooms, or 40 properties IHCL: will add 27 properties or 3,700 rooms in 24 months
Airline In Service On Order
Air India 103 30
Jet Airways 97 41
KingFisher 66 150
GoAir 10 72
IndiGo 43 238
SpiceJet 33 57
JetLite 19 6
Total 371 594
Capacity expected to grow more than 2.5 X
Source: Company websites & announcements
+100k rooms to be added by 2015
6.2
11.5
18.1
0
5
10
15
20
2004 2009 2014
Target Market Expands Beyond Domestic Travel
10
Indian Outbound Travelers Forecasted to Reach 50+ million by 2020 – (UNWTO)
UAE (984)
Singapore (941)
Malaysia (916)
Egypt (773) Hong Kong
(297)
Thailand (572)
UK (801)
France (392)
Italy (403) China
(434)
USA (607)
MM People Country Name (‘000 Indian Departures)
Growing Outbound Departures by Indians Top Destinations for Indian Outbound Travelers, 2014
Source: Euromonitor, 2010
Market Leader in India’s OTA Industry
11
Source: PhoCusWright, Mar 2010
Most visited online travel website in India
Largest seller of air tickets for
all Indian Full Service & Low Cost Carriers
MakeMyTrip’s customers represented
12% of all domestic passengers flown (source data: dgca.nic.in July & August 2011)
Largest Producer of online room bookings for many
hotel chains in India
Largest domestic e-commerce company
with over 4.1 million monthly unique visitors (September 2011 comScore)
48%
Yatra 24%
Cleartrip 18%
Others 10%
#1 in Gross Bookings #1 in Total Gross Bookings
Keys to Our Success
12
Strong Brand Recognition
“Best Online Travel Agency & Best Domestic Tour Operator” -Times of India 2011
High rates of repeat & direct site traffic
Most searched online travel brand in India with 8.2 million visits per month
Superior User Experience
User-friendly interface (online & offline) - Hotels 3.0
Simple & fast responding booking engines
Customer Loyalty Program – My Trip Rewards
Innovative Customer Service Online Support
Operational Excellence
Web analytics to manage site traffic & enhance conversion rates
Continuous monitoring of key metrics i.e. conversions, first call resolutions, customer satisfaction
Web infrastructure 24x7 alert systems
Open Work Culture to Drive Innovation & Growth
#3 in Great Places to Work (India 2011)
Offering Comprehensive Travel Services and Products
13
Large Target Market: Indian Middle Class, Non-Resident Indians, Domestic Small and Medium Enterprises
Air Ticketing Domestic Flights
(within India)
International Flights
(inbound & outbound to/from
India)
Emerging Segments Travel Insurance
Rail Ticketing
Bus Ticketing
Car Hire
Website Advertising
Hotels & Packages Holiday Packages in India
International Holiday Packages
Standalone Hotel Reservations
Flight Plus Hotel Deals
Air Ticketing
76%
Hotels & Packages
20%
Emerging Segments
4%
% of Net Revenue (LTM 9/30/2011)
Established Strong Airline Partnerships
14
All Major International Airlines (GDS)
All Domestic Low Cost Carriers (Direct Connects)
All Domestic Full Service Carriers (GDS)
Single Largest Air Ticketing Agent for All Domestic Full & Low Cost Carriers in India
Widest Availability of Domestic Hotels
15
Adding 500 more hotels each month to increase selection for customers
29%
21%
33%
11%
6%
6,000+ properties offered
Innovative Holiday Packages & Bundled Products
16
Partnerships with Tourism Boards of Bhutan, Thailand & Malaysia Acquisition of Luxury Tours & Travel: more value & choice for SE Asia bound customers
More choices in holiday packages versus online competitors Greatest proportion of non air net revenue in the domestic OTA industry
Top OTA Seller of Hotel Rooms In India
17
Starwood Hotels India “Today MakeMyTrip is the single largest OTA provider for Starwood Hotels in India and we are committed to strengthening this partnership as we continue to grow” -Devdutta Banerjee, Regional Director of Revenue Management Sarovar Hotels “On a year round basis MakeMyTrip is now our single largest online producer exceeding Expedia in productivity...a challenge that they had willingly accepted” - Pradeep Kalra, SVP Sales & Marketing (Sarovar Hotels) Lemon Tree Hotels “Today MakeMyTrip is our largest OTA seller for Lemon Tree hotels and we are committed to strengthening this partnership going forward.” -Rahul Pandit, President & COO (Lemon Tree Hotels) LaLit Suri Hospitality Group “MakeMyTrip is our largest OTA seller for The Lalit Hotels in India. With new hotels being added to our portfolio, we are confident that our partnership will be fruitful and productive for both of us.” -Kamal Kishore Corporate Head - Revenue Management & Channel Distribution | The LaLiT Suri Hospitality Group Keys Hotels “MakeMyTrip is the largest OTA for Keys Hotels in India and we are consistently growing in our association as higher numbers are flowing in from MMYT and as we continue opening new hotels across India. Their productivity has been consistent and timely for us to be able to plan our yields better and at the same time MMYT has given us a brilliant platform to showcase our unique hotels portfolio.” Jai Motihar - Corporate Head-Revenue Management Fortune Hotels “We are committed to strengthening our partnership with MakeMyTrip as they are our largest OTA seller of hotel rooms for Fortune.” Geetika Bahri | Asst. Revenue Manager | Fortune Park Hotels Ltd.
Largest Online Producer of Room Bookings for
Most Hotel Chains in India
Hotels 3.0 to Further Enhance Shoppers’ Experience
18
Select & Purchase Hotels on a Map
Shortlisting & Saved Results Destination Inspiration
Improved User Interface
Acquisitions & Investments to Drive Hotels & Packages Growth
19
Luxury Tours & Travel (May 2011)
• Increase hotel selection in Southeast Asia • Enhance travel experience • Net revenue margin expansion
iXiGO.com (August 2011)
• Technology team acquisition • User Generated Content & Social Media
My Guest House (November 2011)
• Access to ultra budget accommodation inventory • Last room availability technology
Sales and Service Channels
20
19 MakeMyTrip Travel Stores
11,000+ Affiliate Travel Agents in 700+ cities; B2B and B2C Services
Blackberry Featured App & Mobile Webpage
Call Center: 800+ Tele Agents;
Multiple Locations; Multilingual
Chennai
Ludhiana
Delhi / Gurgaon Jaipur
Kolkata
Guwahati
Nagpur Indore Vadodra
Ahmedabad Rajkot
Surat Nasik
Mumbai Pune
Goa
Bangalore
Hyderabad
Lucknow
Social Network Presence
Online
Flexible Payment Options and Customer Service Channels
21
All Major Payment Options Accepted *Credit Cards *Debit Cards *Net Banking *Cash on Delivery *Cash Card *Easy Pay
Online Customer Support Module Cancel, Modify, Track bookings; bypassing call center
Advanced, Secure and Scalable Technology Platform
22
Robust, Reliable and Fully Integrated Technology Platform
Simple booking process
Web-enabled centralized booking system
Scalable search and caching, Comprehensive results, Quick response time
Enhanced Security by Visa payment gateway for online transactions
Integrated B2B, B2C and Mobile platforms
Experienced Leadership Team
23
Corporate Leadership
Deep Kalra Founder, Chairman and CEO
Keyur Joshi Co-Founder and COO
Amit Somani Chief Products Officer
Amit Saberwal Senior VP, Hotels & International Markets
Rajesh Magow Co-Founder and CFO
Mohit Gupta Chief Marketing Officer
Rajnish Kapur Chief Innovation Officer
Anand Kandadai Senior VP, Outbound Tours
Independent Directors
Frederic Lalonde
Founder and CEO
of Openplaces
Philip C. Wolf
Retired President and
CEO of PhoCusWright
Vivek N Gour
Ex-CFO of Genpact
CEO of Air Works
Multiple Strategies Driving Growth
24
Focus on regional, niche holiday players
Optimizing travel supply procurement (Luxury Tours & Travel)
Acquire & invest in technologies to accelerate growth (ixigo.com, My Guest House)
Selective Acquisitions and JVs to Further Enhance Value
Expand footprint into regional geographies (Partnerships with Tourism Boards)
Target geographies with high non-resident Indian populations (UAE)
Broaden Geographical Reach
Continue enhancement of user experience (Hotel 3.0 site)
Leverage social networks to acquire new customers (Facebook, Twitter, YouTube)
Enhance Core Technology Advantage
Increase revenue share of Hotels and Package business
Cross sell higher-margin services and products
Continue to invest in new product categories to offer a 1-stop shopping solution
Expand Product Diversity
Financial Overview
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We Are Capitalizing on Growth Trends
26
Gross Bookings Net Revenue (1)
648
43326
52
57
95
77
313
466
742
509
409
261199
225
0
200
400
600
800
FY2008 FY2009 FY2010 FY2011 1H FY2012
Air Travel Hotels and Packages
(US$ MM) (US$ MM)
48
312
6
8
11
10
0.7
1.2
2.5
1.7
25
40
61
42
31
1914
17
0
10
20
30
40
50
60
70
FY2008 FY2009 FY2010 FY2011 1H FY2012
Air Travel Hotels and Packages Emerging Segments
Note: 1. Net Revenues represent Revenues Less Service Cost
Delivering Strong Growth in a Seasonal Industry: Transactions
27
Air Ticketing Transactions Hotels and Packages Transactions
590.5620.9
759.2
854.0
904.1
995.9
0
200
400
600
800
1,000
1,200
Q1 Q2 Q3 Q4 Q1 Q2
(‘000s)
FY2011
42.6
31.4
50.7 51.2
73.3 74.2
0
10
20
30
40
50
60
70
80
90
100
Q1 Q2 Q3 Q4 Q1 Q2
(‘000s)
FY2011
Note 1: Fiscal years refer to year ending March 31 (fiscal) Note 2: Hotels & Packages results include acquisition of Luxury Tours & Travel
FY2012 FY2012
+60.4%
yoy
+135.8%
yoy
Fiscal Q1 (AMJ) & Q3 (OND)
are peak travel months
Delivering Strong Growth in a Seasonal Industry: Gross Bookings
28
Air Ticketing Bookings Hotels and Packages Bookings
146.5138.6
183.4179.4
218.8213.7
0
50
100
150
200
250
Q1 Q2 Q3 Q4 Q1 Q2
(in $ millions)
FY2011
28.2
17.4
27.2
21.9
45.3
31.2
0
5
10
15
20
25
30
35
40
45
50
Q1 Q2 Q3 Q4 Q1 Q2
(in $ million)
FY2011 FY2012 FY2012
+54.2%
yoy
+79.8%
yoy
Fiscal Q1 (AMJ) & Q3 (OND)
are peak travel months
Note 1: Fiscal years refer to year ending March 31 (fiscal) Note 2: Hotels & Packages results include acquisition of Luxury Tours & Travel
Delivering Strong Growth in a Seasonal Industry: Net Revenue
29
Air Ticketing Net Revenue Hotels and Packages Net Revenue
10.010.3
13.513.9
14.4
16.6
0
2
4
6
8
10
12
14
16
18
20
Q1 Q2 Q3 Q4 Q1 Q2
(in $ millions)
FY2011
3.4
2.1
2.9
2.5
5.9
3.8
0
1
2
3
4
5
6
7
Q1 Q2 Q3 Q4 Q1 Q2
(in $ million)
FY2011 FY2012 FY2012
+61.8%
yoy
+83.7%
yoy
Fiscal Q1 (AMJ) & Q3 (OND)
are peak travel months
Note 1: Fiscal years refer to year ending March 31 (fiscal) Note 2: Hotels & Packages results include acquisition of Luxury Tours & Travel
Net Revenue Margins
30
8.0%
8.4%
7.8%
7.3%
7.9%
0%
2%
4%
6%
8%
10%
FY2008 FY2009 FY2010 FY2011 1H
FY2012
Air Travel
Hotels and Packages
7.2%7.4%
7.6%
7.2%7.1%
6%
7%
8%
FY2008 FY2009 FY2010 FY2011 1H
FY12
Commissions and incentives from airlines
Service fees from customers
Fees from GDS partner
12.7%
11.5%
8.9%
10.6%
14.0%
6%
9%
12%
15%
FY2008 FY2009 FY2010 FY2011 1H
FY2012
Effective Product Bundling
Mark up on Net Rates
Multiple sources underline model’s resilience
Net Revenue as % of Gross Bookings
Scalable Business Model Driving Operating Leverage
31
Operating Costs (1)
19.7% 18.0% 15.3% 16.2%
49.3%37.1%
24.3% 22.7%
47.0%
44.6%
30.6% 30.0%
74.0%
34.9%
24.0% 20.4%
0%
50%
100%
150%
200%
FY2008 FY2009 FY2010 FY2011
Payment Gateway Costs Personnel Costs SG&A Marketing Costs
135%
94%
190%
89%
Note: 1. All figures as a % of Net Revenues; Costs exclude stock based compensation charges
Operating Profit (1)
(US$ MM)
4.04.6
0.8
(10.2)
(16.0)
(20)
(15)
(10)
(5)
0
5
FY2009 FY2010 FY2008 FY2011
1.9% 7.5%
Operating Profit Margin
9.4%
1H FY2012
Outlook
32
FY2012 guidance: Revenue less service cost range of $86 - $89 MM maintained
Continue to invest in technology to enhance user experience
Incremental CapEx of US$5 – US$6 MM during FY2012
Complete upgrade of website (Hotel 3.0)
New mid-office system for non air business
New holidays brand campaign (‘Memories Unlimited’) in FY2012
$300 thousand to be spent in Fiscal Q3
Long term net revenue margin and operating margin outlook intact
Air Net Revenue Margin: 6.0% - 6.5%
Hotels & Packaging Margin: 14.0% - 15.0%
Adjusted Operating Margin: 25% - 30%
Key Investment Highlights
Experienced Leadership Team Aligned With Shareholders
Highly Scalable Operating Leverage
India’s Leader in Online Travel & eCommerce
Strong Supplier Partnerships & Innovative Distribution Channels
Advanced & Secure Technology Platform
Multiple Strategies to Drive Earnings Growth