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MakeMyTrip Limited (NASDAQ: MMYT)Investor PresentationMarch 2020
2
Safe Harbor
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”, “should”, “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 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 shares, MMYT’s reliance on its relationships with travel suppliers and strategic alliances, failure to further increase MMYT’s brand recognition to obtain 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 services 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.
3
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 3rd 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 31st
4
Key Investment Highlights
Market Leader with Multiple Well Recognized Online Travel Brands
Culture of Continuous Product Innovations Supported by Robust Tech Platforms to Drive Scalability
6
1
2
3
4
5
Super App – One Stop for End to End Booking Travel Services
Strong Partnership with Fragmented Accommodations Supply Ecosystem
Demonstrated Operating Leverage with Scale in Multiple Travel Segments
Experienced Management Team with Deep Knowledge of Local Travel Landscape7
High Growth & Share Gains in Underpenetrated Travel Segments
5
Large Economy with Reaccelerating Growth Forcasted1
Source: 1IMF World Economic Outlook, Real GDP Growth 2CIA World Fact book 2020 estimates;
China Internet Network Information Center (CNNIC), McKinsey Global Institute Digital India
44%
31%
29%
50%
52%
59%
6%
17%
12%
Age 0–24 Age 25–64 Age 65+
Largest Young Population(2020)2
2023E2018
224
817
478
700
US China India India
2nd Largest Base of Smartphone Users (in millions)
96%
60%
44%
60%
US China India India
2023E2018
Growth Driven by Low Internet Penetration
312
829
560
800
US China India India
2023E2018
2nd Largest Base of Internet Users (in millions)
Long Term Macro Growth Drivers Available
2019 2020 2021
4.8% 5.8% 6.5%
6.1% 6.0% 5.8%
2.3% 2.0% 1.7%
6
Large Growth Opportunities Ahead
Air$17
Hotels$11
Outbound$6
Bus$8
Rail$7
India Travel Market FY2019
Air$30
Hotels$21
Outbound $12
Bus$12
Rail$9
India Travel Market FY2025
FY2019: $49 Billion FY2025: $84 Billion
Air 10%
Hotels 12%
Outbound 11%
Bus 8%
Rail 4%
Total 10%
FY19 – FY25 CAGR
Source: Goldman Sachs Research Estimates
(In $ billions of Bookings) (In $ billions of Bookings)
7
Market Leader with Superior Domestic Brand Awareness
Source: January2020 KANTAR Brand Health Report commissioned by CompanyRedbus data from 14th Wave of the Brand Track for India conducted by Nepa
51
17
69
6 2 2
0
20
40
60
80
100
MakeMyTrip gobibo redBus Yatra Cleatrip Others
Top Of Mind Awareness
51
19
87
5 5 5
0
20
40
60
80
100
MakeMyTrip gobibo redBus Yatra Cleatrip Others
Consideration Top Box Score
Competitors
8
Super App of Travel with Multiple Brands - Catering to All Travelers
+46 Million Transacted Customers (Life to Date)
• 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
9
Travel Market with Long Term Growth Potential in Underpenetrated Segments
Leading Domestic & International Online Market Share
3rd Largest Aviation Market by 2022 with Liberal Open Sky
Policy
Strong Pent Up Demand for Air Travel
Domestic Fleet Size to Double to 1,200 planes
in next 4 to 5 years
UDAN Program to Drive Greater Domestic Connectivity
200 operational airports by 2024
(70 airports International ready) – Aviation Ministry Sept 2019
Online Flight Ticketing Online Hotel Booking
Highly Fragmented Supply Landscape
Overall Market Size Widens with Alternative
Accommodations
Currently Offer 72K Domestic Properties
(Including 19K Alternative Accommodations)
Estimated Domestic Supply of 2 Million Rooms &
Growing
Increasing Supply in Budget Segment via Alternative
Accommodations
Tech Enabled Solutions for Partners to Create Value
32.233.8 34.7 34.3
36.2 35.5 35.2 35.2
38.3
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
OND2017
JFM2018
AMJ2018
JAS2018
OND2018
JFM2019
AMJ2019
JAS2019
OND2019
Mill
ions o
f D
om
estic P
assengers
Flo
wn
Source: DGCA.nic.in
YoY
Growth % 12%18% 24%
India China EU US
10% - 15% 25% - 30% 41% 46%
Source: Morgan Stanley India Internet: Chart of the Week: Online penetration of
hotel bookings is low and has room to grow
20% 19%
Source: Vision 2040 for the Civil Aviation Industry in India – KPMG Jan 2019
5% 2% 3% 6%
10
Full Range of Accommodations Offered in Underpenetrated Market
Premium (5 & 4 stars)
Positioning MakeMyTrip
as premium brand
Leveraging loyalty
programs
to drive retention
Targeting high spending
& repeat customers
Delivering superior
end-to-end user experience
Mid Tier (3 & 2 stars)
Expanding selection &
choice
Enhancing service
guarantee to users
Offering accredited hotels
to deliver consistent
stay experience
Supporting customers
post sales & on trip
Budget
Budget Certification
Program
Good Ratings & Standard
Amenities
Consistency across
fragmented supply
10,000+ goStays
available
Unit Economics Positive Across Entire Range of Accommodations Sold
All Tiers Growing Positively in Room Nights Stayed
11
• Alternative to traditional hotel
experience
• Supported by Customer
Service Pledge & Guarantee
• Broadens Customer Reach
• Marketing via Traditional &
Social Media Channels
• Partnering with State tourism
boards to promote local &
community based travel
• Increasing supply with
+19,000 properties bookable in
India
Focusing on Alternative Accommodations Growth
12
redBus – Leading Intercity Bus Ticketing Brand
- Comprehensive
selection & choice of
intercity bus operators
(public & private)
- Leading bus ticketing
brand with superior
customer experience
- Supplier platform for bus
operators to quickly
transition online for
inventory & distribution
management
- High operator
fragmentation & low
online booking
penetration offers growth
opportunities
- Model highly scalable
beyond India – operating
in LATAM & Southeast
Asia
13
Activities & Experiences - Greater Brand Stickiness & Increased Platform Usage
• +33k Activities &
Experiences Available
(Domestic & International)
• Driving Greater App
Usage Frequency
• Integrated with
Archaeological Survey of
India (ASI) – entry tickets
to all monuments across
India
• Acquisition of New Users
to Overall Platform
14
Mobile Centric Approach Driving High Direct & Repeat Traffic
Mobile Air
Ticketing
63%
Mobile Bus
Ticketing
77%
Mobile Hotel
Booking
78%
*9 months FY2020 mobile transactions as % of total
Tapping into next
100 million
new Internet
users via Train
Mobile Train
Ticketing
90%
New Digital Payments Platform to
Drive Greater Adoption of e-Commerce
15
Innovative & Effective Loyalty Programs Helping Drive Greater Customer Retention
MMTBLACK
Earn Wallet+ Cash by Spending
Wide Range of Redemption Options
+1.1 Million Enrollees
MMTDOUBLEBLACK
Annual Subscription Model
Value for Frequent Travelers
+139 K Enrollees to date
Redesigned goRewards
UGC reviews & content
Enhanced Platform Credibility & Utility
+2.3 Mln High Tiered Users
16
Gaining Greater Corporate Travel Wallet Share
Small & Medium Enterprise
Self Service Solution (myBiz)
Managed Corporate Travel
Enterprise System (Quest2Travel)
Online & Automation Focused Solutions to Address
Large Corporate Travel Market
17
Robust & Innovative Technology Platform to Drive Super App Vision
Travel Super App
Universal Search
Faster Product Discovery
Better User Engagement
Big Data & AI Driven
Cross Sell Experience
Relevant Persuasions
Personalized
Recommendations
Trip Ideas
Destination Discovery &
Inspiration
Destination Planning
Linked to Booking
Enhanced
Discoverability
Contextualized Prompts
Area Guides to Build
Trust
Granular Travel Themes
18
Corporate Social Responsibility
Ecological Balance
Invest resources and create awareness to support sustainable
& responsible tourism in India
• Boost cleanliness and sanitation in
popular tourism spots – Zero Waste
Destinations
• Partnership with World Wide Fund India
to establish homestays & eco cafes to
provide economic opportunities
• Campaign for responsible tourism with
stakeholders
• Be part of solution to fight drastic
climate change & global warming
• Dense Afforestation using the
Miyawaki Technique of Plantation
with 1 million trees planted in Ladakh
• Partnership with Andaman Islands
Government to make island single use
plastic free
• Single Use Plastics Free office
Responsible Tourism Restoration & Development
• Adoption of UNESCO Heritage sites
across India
• Aid in Restoration of Important sites to
generate interest in local history and
drive tourism
• History of providing Aid in Times of
Natural Calamities
19
Experienced Founding & Management Team Driving Execution
Deep Kalra Founder & Group Executive Chairman
- Started MakeMyTrip in 2000
- Group Chairman
- 27+ Years of Experience
- Prior Experience: GE Capital India, AMF Bowing Inc. & ABN AMRO Bank
- Board member & past President of The IndUSEntrepreneurs (TIE) New Delhi chapter
- Founding member of Ashoka University & serves on the Board & Governing Council
- Bachelor’s degree in Economics –St. Stephen’s College
- MBA IIM Ahmedabad, India
Rajesh MagowCo-Founder & Group CEO
- Senior founding team member
- Member of the Board of Directors
- Previously Group CFO and Chief Operating Officer
- 26+ Years of Experience
- Prior Experience: eBookers.com, AptechLimited & Voltas Limited
- Independent Director of FlipKart Board
- Chartered Accountant from Institute of Chartered Accountants of India
Mohit KabraGroup Chief Financial Officer
- 25+ Years of Experience
- Prior Experience: Kohler India, PepsiCo, Colgate & Seagram
- Bachelor of Commerce – Osmania University
- Chartered Accountant from Institute of Chartered Accountants of India
- Cost Accountant from Institute of Cost Accountants of India
20
Financial Overview
Results presented include the consolidation of ibibo group from
February 1, 2017 onwards, unless otherwise noted
21
Leading OTA in India with Considerable Business Scale (FY2019)
Source: Company data, Fiscal Year 2019Note: yoy growth rates in constant currency where applicable
22
9 Months YTD Fiscal Year 2020 Financial Summary
Source: Company data for the 9 months ended December 31, 2019Note: yoy growth rates in constant currency where applicable
23
Demonstrated Ability to Drive Operating Cost Efficiencies in Fiscal Year 2020
($ in millions) Q1 FY20 Q2 FY20 Q3 FY20
Total Gross Bookings* +24% +20% +19%
Adjusted Revenue* +21% +13% +13%
Air Ticketing +24% +17% +15%
Hotels and Packages +12% +2% +10%
Bus Ticketing +37% +38% +36%
(*Growth rates in constant currency year over year basis)
Total Adjusted Revenue as % of
Total Gross Bookings11.7% 12.1% 12.2 %
Marketing & Sales Promotion Expenses
As % of Total Gross Bookings9.5% 9.0% 8.9%
Adjusted Operating (Losses) ($29.2) ($19.3)1 ($11.0)
As % of Total Gross Bookings (1.7%) (1.3%) (0.6%)
Source: Company data, SEC 6-K FilingsTotal Gross Bookings includes Bus Ticketing bookings, Marketing & Sales Promotion Expenses includes adjustments for promotions netted against adjusted revenue and loyalty program costs1 Includes one-time accelerated personnel cost of $2.5 million
Focused on Growth, Share Gains & Improved Operating Efficiencies
during Challenging Macro & Industry Operating Conditions
24
12.6% 13.2%15.3%
18.8%
22.6% 23.2%22.5%
0%
5%
10%
15%
20%
25%
FY14 FY15 FY16 FY17 FY18 FY19 YTD FY20
6.6%6.1% 6.0%
7.7% 7.5% 7.3% 7.0%
0%
2%
4%
6%
8%
10%
FY14 FY15 FY16 FY17 FY18 FY19 YTD FY20
Improving Mix and Margins with Strategic Focus on Hotels and Packages
Air Ticketing Adjusted Revenue Margin
Hotels and Packages Adjusted Revenue Margin
Diversified sources of Adjusted Revenue
• Commissions and volume incentives from airlines
• Convenience & Service fees from customers
• Fees from GDS partner
Multiple Sources of Adjusted Revenue
• Mark up on Net Rates
• Commissions & volume incentives from hoteliers
Total Adjusted Revenue as % of Total Gross Bookings1
8.1% 8.1%8.8%
11.3%
12.6% 12.4%12.0%
0%
2%
4%
6%
8%
10%
12%
14%
FY14 FY15 FY16 FY17 FY18 FY19 YTD FY20
Note 1: FY18 & onwards calculations includes Bus Ticketing bookings
prior periods only included air ticketing & hotels & packages gross bookings
Targeting Improved Total Adjusted
Revenue as % of
Total Gross Bookings
Driven by Higher Mix of H&P
25
3.6% 3.1%2.1% 1.9% 2.0% 2.0% 2.1% 1.9% 1.9% 2.1% 1.5% 1.4% 1.4%
1.4% 1.5%1.3% 1.3% 1.3% 1.3% 1.4% 1.4% 1.4% 1.3%
1.1% 1.0% 1.0%
3.4%2.9%
2.6% 2.5% 2.5% 2.7% 2.7% 2.2% 2.3% 2.1%1.5% 1.4% 1.4%
5.4%
3.7%
2.1%1.7% 1.7% 1.7% 2.2%
2.6%
5.9%
13.7%
11.5%10.2%
9.1%
0.5%
0.5%
0.3%0.3% 0.3% 0.3%
0.3% 0.4%
0.4%
0.4%
0.3%
0.2%
0.3%
0%
5%
10%
15%
20%
25%
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (PF) FY18 FY19 YTD FY20
Personnel Expenses Payment Gateway SGA Marketing & Sales Promotion Depreciation & Amortization
11.9%
19.6%
8.7%
16.0%
8.5%8.0%7.8%
7.6%8.5%
14.3%
11.8%
14.2%13.2%
Playbook of Driving Scale & Efficiencies - Started with Air & Holidays, Now Focusing on Hotels%
of
Gro
ss B
oo
kin
gs
45%H&P Adj. Rev Mix51% 54% 54%38%31%21%78%77%75%
Air Adj. Rev Mix Transitioning from Air to Hotels
Blended Adj. Rev Margin 8.5% 8.4% 7.9% 8.5% 7.2% 8.1% 8.1% 8.8% 12.2% 12.6%
Marketing & Sales Promo as % of Adj. Rev
44.6% 24.0% 20.4% 19.3% 22.3% 26.2% 30.6% 64.4% 100.7% 91.8%
Note:
Proforma FY17 basis Management estimates
Personnel Expenses excluded share based compensation charges and severance cost related to a prior acquisition
Depreciation and amortization excluded acquisition related intangibles amortization and impairment of intangible assets
SGA excluded Merger and acquisitions related expenses
Marketing & Sales Promotion Include adjustments for promotions netted against adjusted revenue and loyalty program
costs
85%
7.3%
74.0%
52%
12.4%
82.1%
50%
12.0%
76.1%
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