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MakeMyTrip Limited (NASDAQ: MMYT)Investor PresentationJune 2018
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 18, 2017 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 bus and rail tickets and fees earned by facilitating travel insurance policies to customers.
Net Revenues or Revenues less Service Costs represents IFRS revenue after deducting cost for the acquisition of relevant services and products for sale to customers and adding back certain expenses in the nature of promotions which had been adjusted against revenue. Cost for the acquisition of relevant services and products for sale to customers include 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 31st
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Key Investment Highlights
Leading OTA with Multiple Brand Strategy & Accredited Hotel Brands (GoStays & MMT Assured)
Hotels & Packages Contributing to Over Half of Net Revenues
Strong & Experienced Management Team
Driving Online Growth in Underpenetrated Hotels Segment with Improving Spend Efficiencies to Leverage Fast Growing Online Customer Base in India
6
1
2
3
4
5
Leveraging a Fast Growing Smartphone Internet Ecosystem in India
Large Total Market Share in Air Ticketing, Online Bus Ticketing & Online Hotel Bookings
5
224
663
478
760
US China India India
Fastest Growing Large Economy1
Source: 1IMF World Economic Outlook, Real GDP Growth 2CIA World Factbook 2017 estimates;
*Internet Live Stats Dec 2017, IAMAI estimates for India Internet users in 2018, India’s Trillion
Dollar Digital Opportunity”
46%
32%
30%
49%
52%
59%
6%
16%
11%
Age 0–24 Age 25–64 Age 65+
Largest Young Population (2017)2
2nd Largest Base of Active Smartphone Users (in millions)
312
772
500
850
US China India India
96%
55%
37%
60%
US China India India
2022E2018 2022E2018 2022E2018
Growth Driven by Low Internet Penetration
2nd Largest Base of Internet Users (in millions)
Attractive Macro Growth Drivers
2018 2019
7.4% 7.8%
6.6% 6.4%
2.7% 2.5%
6
Large Domestic Travel Market with High Growth & Underpenetrated Segments
Continued robust domestic air passenger growth
UDAN program to increase regional
air connectivity via subsidies & fare caps
***********************************************************
FY2019 Domestic Aviation CAPA Forecasts:
Passengers growth: 18% - 20%
Capacity growth: ~25%
Online Flight Ticketing Online Hotel Booking
India domestic hotels Supply:
100k Properties
2 million rooms, growing +10% p.a.
Average occupancy rates @ 65%
Current Online Penetration Rates:
15% going to 30% by 2020 per BCG-Google
Low penetration of hotels booked online
relative to developed markets presents large growth
opportunities
23.0 24.6 25.1
27.2 27.3 28.9 28.8
32.2 33.8
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
JFM2016
AMJ2016
JAS2016
OND2016
JFM2017
AMJ2017
JAS2017
OND2017
JFM2018
Mill
ions o
f D
om
estic P
assengers
Flo
wn
Source: DGCA.nic.in
YoY
Growth
%24% 21% 24% 23% 19% 18% 15% 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
7
Multiple Brands with Superior Online Scale & Reach
Source: Company data as disclosed on Q4 FY2018 Earnings Call & SEC Form 6K Filed on May 30, 2018
167Million
Total Unique
Visitors
129 Million
Cumulative App
Downloads
97 Million
Monthly
Shopper Visits
31 Million
Transacted
Customers
18Million
Monthly Active
Mobile Users
Comprehensive Product Offerings | Expanded Customer Reach | Cross Selling Opportunities
8
Hotel Segment Focus Mid-premium (3/4/5 star); > INR 3,500 GoStays Budget Hotels (2/3 star); < INR 3,500
Core Brand MessagingLeisure Travel Expert which helps users
Discover the World.
Delivering value to travelers through
smart product & tech innovations
Differentiated Consumer
Offerings
Pay @ Hotel; Zero Cancellation Charge;
Best Price Guarantee
Slot Bookings, Early Check-In;
Couple Friendly Hotels
Acquisition StrategyBuild Preference & Choice largely through
Credible Online Channels & ATL
Offline Mediums (Kiosks, In-flight Branding, Airport
& Railway Station Signage), ATL & Online Channels
Loyalty Enablers MMT BLACK, MMT DoubleBlack GoContacts, GoCash+, GoStays, Network effects
Product FeaturesOriginal Hotel Content, Personalized Listing,
Video Hotel Content
Traveler Rating and Reviews, Q&A,
Video Product Marketing Features
Campaign StrategySolving for Key Consumer Barriers
(Advanced Payment & Cancellation Charge)
& Best Price Guarantee
Drive “network effect” through GoCash+.
Offers Differentiated & Powerful Budget Hotel
Experience through GoStays
Multiple Brand Positioning with Distinct Go to Market Strategies
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Superior Brand Awareness
48
13
12
3
2
02550
47
18
8
9
7
0 25 50
MakeMyTrip
Competitors
Source: March 2018 Millard Brown Study commissioned by Company
Top of Mind AwarenessConsideration Top
Box Score
Goibibo
YT
CT
Other
India Online Travel Industry Brand Recall
10
MakeMyTrip & Goibibo
63%
#2 & #3 Peers37%
Domestic Hotel Online Market Share2
(2017)
MakeMyTrip & Goibibo
64%Yatra12%
Cleartrip10%
Other14%
Domestic Air Ticketing Total OTA Market Share3
(JFM 2018)
MakeMyTrip48%
Yatra24%
Cleartrip18%
Other10%
India Online Travel Market1
(2010)
Online Travel Market Leadership Gains Since Initial Public Offering
MakeMyTrip & Goibibo
63%
#2 & #3 Player26%
Others11%
1 – Phocuswright 2010 Research in Gross Bookings share
2 – Morgan Stanley Research Estimates for 2017, as of May 2018
3 – Calculated as per DGCA Segment data for the quarter ending March 31, 2018
Indian Online Travel Market2
(2017)
Demonstrable Market Share Gains
with Widening Gap from Peers
11
Underpenetrated Online Hotels Market - Long Term Growth Opportunities
Premium Hotels(5 & 4 stars)
$4.8 billion bookings
opportunity
Positioning MakeMyTrip
as premium brand
Leveraging new loyalty
programs to drive retention
Targeting high spending
& repeat customers
Delivering superior
end-to-end user experience
Mid Tier Hotels(3 & 2 stars)
$4.0 billion bookings
opportunity
Expanding selection & choice
Enhancing service
guarantee to users
Offering accredited hotels to
deliver consistent
stay experience
Supporting customers
post sales & on trip
Budget & Alternative
Accommodations
$4.0 billion bookings
opportunity
Differentiated & accredited
supply from 3rd party budget
hotel chains
4,600+ goStays available
goibibo value brand
positioning
GoContacts programs to
enhance reach
Note: 2017 Bookings opportunity based on company estimates
12
Mobile Focused Approach Enabling Continued Reach & Growth
Mobile Air
Ticketing
67%
Mobile Bus
Ticketing
65%
Mobile Hotel
Booking
77%
*FY2018 mobile transactions as % of total
129 mln cumulative app downloads to date
18 mln monthly average active mobiles users
81% of monthly shopper visits via mobile apps & web
Tier II & III
penetration
with 1.5 MB lite app
UPI Enabled Payments
New Payment Options
13
A.I. + Machine Learning + Big Data Driving Improved User Experience
More Personalized
Shopping Experiences
Wider User Reach with WhatsApp Integration
Vernacular & Voice Based Interactions
A.I. Powered Chat for Post
Sales Customer
Service Automation
14
Driving Customer Retention & Repeat through Loyalty Programs
MMT Black
Earn Wallet+ Cash by Spending
Wide Range of Redemption Options
+750K Enrollees
MMT Double Black
Annual Subscription Model
Value for Frequent Travelers
+30K Enrollees
15
Corporate Social Responsibility
Planting trees to offset individual’s
CO2 emissions & Zero Single Use
Plastics across offices
Safeguarding living culture and artistic
heritage and ensuring sanitation and
cleanliness of the surroundings to offset
damage from mass tourism
Provide minimum level of income and other
support for disadvantaged groups such as
the poor, elderly, disabled, students, minor
children
‘Be the Change’ is a crowd sourced funding initiative, created with a vision to impact
society and the environment positively. It is focused on offsetting our carbon footprints and
promoting sustainable tourism.
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Experienced Founding & Management Team Driving Execution
Deep Kalra Co-Founder, Chairman and Group CEO
- Started MakeMyTrip in 2000
- Group Chairman
- 25+ 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 and CEO India
- Senior founding team member
- Member of the Board of Directors
- Previously Group CFO and Chief Operating Officer
- 24+ 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
- 23+ Years of Experience
- Prior Experience: Kohler India, PepsiCo, Colgate & Seagrams
- Bachelor of Commerce - St. Joseph’s Junior College
- Chartered Accountant from Institute of Chartered Accountants of India
- Cost Accountant from Institute of Cost Accountants of India
17
Financial Overview
Results presented include the consolidation of ibibo group from
February 1, 2017 onwards, unless otherwise noted
18
Financial Summary for Full Year Fiscal 2018
Source: Company data, SEC 6K Filed on May 30, 2018. Gross Bookings include Bus Ticketing gross booking as disclosed in FORM 6-K YoY % growth for Revenue Less Service Costs, flight segments, room nights stayed, bus tickets sold on pro forma basis
19
High Revenue Less Service Costs Growth for FY2018 (Pro Forma basis)
Air Ticketing Hotels & Packages Other
% change represents the comparison of FY18 reported revenue less service costs to the Pro Forma revenue less service costs disclosed on SEC form 6-K filed on July 18, 2017
Full Year FY18 Total Revenue Less Service Costs
$577.1 million, +39.5%
20
High Net Revenue Growth & Improving Marketing Spend Efficiencies
($ in millions) Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18
Total Revenue Less Service Costs (Net Revenue) $141.2 $139.2 $151.4 145.3
Air Ticketing Net Revenue $45.6 $47.1 $50.9 $58.5
Hotels & Packages Net Revenue $81.3 $79.2 $83.9 $69.4
Other Net Revenue $14.3 $12.9 $16.6 $17.5
Total Net Revenue as % of Total Gross Bookings 12.3% 13.0% 12.8% 12.3%
Total Gross Bookings $1,149.6 $1,070.2 $1,187.3 $1,183.9
Marketing & Sales Promotion Spend $142.4 $135.9 $133.3 $118.0
As % of Total Gross Bookings 12.3% 13.0% 11.2% 10.0%
Adjusted Operating (Losses) ($52.3) ($45.0) ($33.9) ($23.5)
As % of Total Gross Bookings (4.6%) (4.2%) (2.9%) (2.0%)
Sequential Reduction in Adjusted Operating (Losses)
Driven by Increased Marketing Efficiencies & Improved Unit Economics
Source: Company data, SEC 6-K FilingsTotal Gross Bookings includes Bus Ticketing bookings Marketing & Sales Promotion includes adjustments for other promotions netted against revenue less service costs
21
Improving Mix and Margins with Strategic Focus on Hotels and Packages
Air Ticketing Net Revenue Margin
Hotels and Packages Net Revenue Margin
• Commissions and volume incentives from airlines
• Convenience & Service fees from customers
• Fees from GDS partner
Effective Product Bundling & Scale
• Mark up on Net Rates
• Commissions & volume incentives from hoteliers
Multiple sources of Net Revenue
Total Net Revenue as % of Total Gross Bookings1
8.1% 8.1%8.8%
11.3%
12.6%
0%
2%
4%
6%
8%
10%
12%
14%
FY14 FY15 FY16 FY17 FY18
6.6%6.1% 6.0%
7.7% 7.5%
0%
2%
4%
6%
8%
10%
FY14 FY15 FY16 FY17 FY18
12.6% 13.2%15.3%
18.8%
22.6%
0%
5%
10%
15%
20%
25%
FY14 FY15 FY16 FY17 FY18
Note 1: FY18 calculations includes Bus Ticketing bookings, prior periods only included air ticketing
& hotels & packages gross bookings