Yatra Online Limited · NSE:YATRA
Yatra Online — SPAC Merger (July 2016)
42 slides from Yatra Online's SPAC merger presentation, Jul 14, 2016
Slide 1: Investor presentation July 14, 2016
Investor presentation July 14, 2016
Slide 2: Disclaimer and forward-looking statements
PAGE 1 Neither Terrapin 3 Acquisition Corporation (“Terrapin”) nor Yatra Online, Inc. (“ Yatra ”) nor any of their respective affiliates makes any representation or warranty as to the accuracy or completeness of the information contained in the presentation. This presentation has been prepared to as
Slide 3: Forward-looking statements, industry data and additional information
PAGE 2 Terrapin and Yatra caution that the foregoing list of factors is not exclusive. Additional information concerning these and other risk factors i s contained in Terrapin’s most recent filings with the SEC. All subsequent written and oral forward looking statements concerning Terrapin, the Prop
Slide 4: Basis of Financial Presentation and Use of Non-IFRS Metrics
PAGE 3 Basis of Financial Presentation and Use of Non - IFRS Metrics The historical financial information regarding Yatra included in this investor presentation reflects Yatra’s fiscal year end of March 31, and has been derived from unaudited financial statements of Yatra and its subsidiaries that w
Slide 5: Contents
01 Insert divider title 3 A Insert divider title 7 Contents Contents 1 Introduction 5 2 Business Combination 9 3 Yatra Overview 17 4 Indian Travel Market 29 5 Additional Material: Technology 35 6 Appendix 41 PAGE 4
Slide 6: Yatra – India's fast growing online travel platform
PAGE 5 Yatra – India’s fast growing online travel platform Accelerating Total Transaction Value 1 ( INR in Billion ) Rapid Growth in Net Revenues 1 ~ 4.3m customers 14m monthly visits 60k+ hotels in 1,100+ cities 74% repeat transactions 57% of traffic from mobile ( INR in Million) PAGE 5 41.2 48.4 6
Slide 7: Yatra's Fiscal Year 2016 growth highlights
PAGE 6 ~4.2m customers Yatra’s Fiscal Year 2016 growth highlights 43% 1 Growth in transaction count 3.2x 1 Mobile app traffic growth 44% 1 Growth in hotel room nights booked 26% 1 Growth in transacting customers 3.0x Mobile app air bookings growth 37% Growth in Air passengers booked 25% Growth in gr
Slide 8: Investment highlights
PAGE 7 Investment highlights Yatra is a fast growing Indian consumer travel platform Projected 35 %+ annual growth in Net Revenues 2 for FY2016 - FY2020 Integrated platform for online and mobile covering consumer, corporate, and agents/partners Strong business model High barriers to entry Repeat rev
Slide 9: Accelerating growth in Net Revenue and Total Transaction Value
PAGE 8 35.4 40.7 50.3 63.8 82.0 103.7 128.4 5.6 7.4 10.0 13.2 21.8 31.2 41.7 0.5 0.6 0.8 0.9 41.2 48.4 60.7 77.5 104.4 135.6 171.0 FY2014 FY2015 FY2016 FY2017E FY2018E FY2019E FY2020E Air Hotels & Holiday Packages Other 1,931 2,377 2,895 3,754 4,924 6,247 7,802 621 885 1,041 1,590 2,792 3,951 5,326
Slide 10: Business combination
STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL Business combination
Slide 11: Pro forma ownership, sources and uses, illustrative valuation
PAGE 10 8% 5% 53% 34% TRTL founder shares Macquarie forward purchase TRTL public shareholders Existing shareholders 9% 6% 23% 62% Post - closing pro forma anticipated total market capitalization of $350m to $402m Sources and uses Sources $232.8m from TRTL 1 $100m from TRTL 1 Terrapin 3 cash in trust
Slide 12: Transaction highlights
PAGE 11 1. Refer to page 3 for definitions of non - IFRS metrics; assumes FX rate of 67 INR per USD. See the Appendix for a reconciliation of Net Revenues, a non - IFRS metric, to total revenues 2. Assumes $212.75m of cash available from trust and $20m investment from the forward purchase resulting
Slide 13: Comparable company overview
PAGE 12 Source: Bloomberg as of 7/13/2016, Company data Note: Yatra shares excludes dilutive impact of 45,725 existing warrants (strike price of $2.73), 859,758 options (weighted av era ge strike price of $3.87), and 3m RSUs Note: Yatra revenue denotes Net Revenue (refer to page 3 for definitions of
Slide 14: Yatra acquisition by TRTL vs OTA median multiples
PAGE 13 $10.00 $11.87 $12.43 Yatra acquisition by TRTL Yatra @ OTA median 2017 revenue multiple Yatra @ OTA median 2018 revenue multiple 43% 24% Yatra OTA median 36% (1%) Yatra acquisition by TRTL OTA median Source: Bloomberg as of 7/13/ 2016 1. Yatra revenue denotes Net Revenue (refer to page 3 for
Slide 15: Benchmarking vs. peers
PAGE 14 Priceline Expedia Ctrip MakeMyTrip Webjet TripAdvisor Qunar ILG Yatra 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0x 1x 2x 3x 4x 5x 6x 7x 8x 2016 - 18 Rev. CAGR EV / March 2017E Rev Source: Capital IQ trading data as of 7/13/2016; Company filings, investor presentation materials, and websites.
Slide 16: Case study: India is where China was
PAGE 15 1. Source: Credit Suisse Equity Research. Indi Internet Primer (8/05/2015) 2. Source: Internet Live Stats 3. Source: World Bank Snapshot of China - focused online travel firms 5 : Ctrip – (NASDAQ – CTRP) Qunar – (NASDAQ – QUNR) Case study: India is where China was China India Organized retai
Slide 17: Anticipated transaction timeline
PAGE 16 Date Event July 13 Announce transaction July 14 File 8 - K August 10 Preliminary proxy materials filed with the SEC September 15 Print and mail final proxy materials to shareholders October 15 Hold shareholder vote and close transaction Timeline Anticipated transaction timeline PAGE 16
Slide 18: Yatra Overview
STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL Yatra Overview
Slide 19: Yatra is a leading online travel brand in India
PAGE 18 Leading OTA 1 in India with INR61bn of TTV 2 and ~4.3m + customers Largest Indian hotel inventory with 60,000+ hotels in network Comprehensive offering of air, hotel, holiday packages and corporate travel services Strong brand recognition – “ Yatra ” means “journey” in Hindi Building out a d
Slide 20: Yatra: a differentiated Indian travel platform
PAGE 19 Yatra: a differentiated Indian travel platform Largest Domestic Hotel Inventory Focus on Profitability Multiple Channel Approach ― 60,000+ hotels and growing ― Targeted strategy on “budget” category ― Nationwide “B2B2C” network ― Servicing and payment processing platform allows targeting of
Slide 21: Yatra's bespoke platform serves its three types of customers
PAGE 20 Yatra’s bespoke platform serves its three types of customers B2C, Corporate, and B2B2C (agents, partners) through a common technology platform • Leading online travel brand in India • Mostly consumer facing Yatra Corporate Solutions • Comprehensive online travel solution for corporations, su
Slide 22: Customers trust Yatra to deliver on their travel needs
PAGE 21 1. Economic Times brand equity index (Nov 2015) 2. AC Nielsen brand survey – Dec 2014 1 Flipkart 2 Quikr 3 Olx 4 Snapdeal 5 Amazon 6 Yatra 7 Jobong 8 Myntra 9 Paytm 10 BookMyShow 11 Cleartrip 12 FreeCharge 13 MakeMy Trip Top of Mind Awareness 2 Brand 2013 2014 Yatra.com 29 40 MakeMyTrip.com
Slide 23: More than 4.3 million customers with growing transaction value
PAGE 22 More than 4.3 million customers with growing average transaction value Note: Does not include data for TSI businesses, which do not directly benefit from the Yatra.com brand 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year Average transaction value per customer 12.4 26.7 2007 2010
Slide 24: Yatra has the largest Indian hotel network
PAGE 23 1 1 1 2 2 2 2 2 2 2 2 2 3 3 4 4 5 6 8 9 10 10 3 4 7 9 12 17 24 33 36 40 49 6 9 11 15 17 24 32 43 47 52 61 Jun-12 Mar-13 Jun-13 Dec-13 Mar-14 Dec-14 Mar-15 Aug-15 Sep-15 Nov-15 Mar-16 Budget Mid- Segment Luxury / Premium 1. Budget: Non starred, 1 & 2 star hotels; Mid - segment: 3 star; Luxury
Slide 25: Yatra's air business continues to grow
PAGE 24 Yatra’s air business continues to grow CAGR CAGR Air Net Revenue 2 (INR Million) FY 2016 domestic air business’ YoY and revenue grew 22% and passenger count grew by 37 % 22% 1. Total Transaction Value (see page 3 for definitions of non - IFRS metrics ). 2. Refer to page 3 for definitions of
Slide 26: Management team
PAGE 25 Name and Title Background Years in Travel Industry Dhruv Shringi Co - Founder and CEO Industry Experience: Ebookers.com, Ford Motors, Arthur Anderson Education: MBA - INSEAD, Chartered Accountant 12 Manish Amin Co - Founder and CIO Industry Experience: Head of Technology Infrastructure Ebook
Slide 27: Yatra's venture capital investors
PAGE 26 Yatra’s venture capital investors
Slide 28: India macro tailwinds and travel market growth
PAGE 27 India Macro Tailwinds >8% GDP growth, #4 GDP Purchasing Power 1 2nd biggest world population >500m middle class by 2026 2 Lowest leisure spend among BRICs – significant room for growth 3 Burgeoning Travel Market Outbound tourism doubled, domestic nearly tripled since ’08 1 YTD passenger grow
Slide 29: Indian travel market
STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL Indian travel market
Slide 30: India's unique place in the world
PAGE 29 India’s unique place in the world Strong GDP growth trends and a rapidly growing middle class 19.3 17.9 7.9 4.8 3.8 3.7 6.6% 5.6% 6.6% 7.2% 7.3% 7.5% 2011 2012 2013 2014 2015 2016 Source: IMF Global economic outlook, Knoema world research, World bank, The CIA World Factbook , Worldatlas.com
Slide 31: Share of discretionary spending is rising
PAGE 30 Source: Kotak Research 1,000 880 225 60 Brazil Russia China India Share of spending on discretionary purchases is rising 43% 28% 8% 12% 6% 9% 6% 6% 12% 10% 3% 4% 4% 8% 10% 7% 3% 7% 5% 9% 2000 2010 Communications Transportation Education Recreation Personal Items Housting & Utility HH Product
Slide 32: Significant room for travel growth
PAGE 31 Source: World Bank 13 79 107 492 India China Global USA Per capita spend on airlines, 2014, US$ - Chinese spend 5.8x more 6 35 65 511 India China Global USA Per capita spend on hotels, 2014, US$ - Chinese spend 6.0x more Significant room for travel growth
Slide 33: Strong technology trends driving e-commerce
PAGE 32 Smartphone penetration in India (% population) Strong technology trends driving e - commerce Source: Internet World Stats 6% 9% 12% 17% 2012 2013 2014 2015 674 375 280 118 115 103 93 78 71 60 China India USA Brazil Japan Russia Nigeria Indonesia Germany Mexico Source: Pew Center Research Int
Slide 34: Trends support acceleration in online booking
PAGE 33 Trends support acceleration in online booking Online travel growth is significantly outpacing the travel industry growth as a whole Source: Phocuswright, Conversion rate 1 USD = 66 INR 2016 – INR 1782 Bn 2013 – INR 1320 Bn O ffline Travel 792 Bn 60% O nline Travel 330 Bn 25% O nline Rail 198
Slide 35: Additional Material: Technology
STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL Additional Material: Technology
Slide 36: Yatra's rapidly growing mobile platform
PAGE 35 Mobile app is driving adoption Percent of traffic contribution Commentary Crossed 6 million native app downloads in June Total monthly desktop and mobile visits have reached 14m Steady increase in mobile bookings – hotels at 40% and air at 34% of category total Improved traction on mobile (%
Slide 37: Leveraging a multi-app environment for consumer segments
PAGE 36 Leveraging a multi - app environment for a variety of consumer segments Corporate travel app: for business customers Budget travel app: for local customers Personal travel app: for retail customers Yatra is differentiating through innovation
Slide 38: Building a multi-app environment to provide a range of services
PAGE 37 Building a multi - app environment to provide a range of services Private accommodation listings: for homeowners (recently launched) Transport management solutions: for business employees Independent web check - in: for a variety of airlines Yatra is differentiating through innovation
Slide 39: Same software delivery platform for different customer segments
PAGE 38 Leveraging the same software delivery platform for different customer segments Travel Agent Retail Customer Yatra’s “Common platform” on desktop and mobile: desktop examples Corporate Client Corporate Client Logo Travel Agent Logo Yatra uses the same delivery platforms for retail customers,
Slide 40: Common platform on desktop and mobile: mobile examples
PAGE 39 Leveraging the same software delivery platform for different customer segments Corporate employee app Consumer app Yatra’s “Common platform” on desktop and mobile: mobile examples 300 eCash Corporate customers “acquired” for personal travel thru eCash
Slide 41: Appendix: Reconciliation of non-IFRS metrics
STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL Appendix Reconciliation of non - IFRS metrics
Slide 42: Reconciliation of non-IFRS metrics
PAGE 41 Reconciliation of non - IFRS metrics Amounts in millions Yatra Online, Inc. (unaudited) 31 March 2014 31 March 2015 31 March 2016 31 March 2017 31 March 2018 31 March 2019 INR INR INR INR INR INR Millions of INR Total revenue 5,056 6,649 8,611 11,373 17,125 23,144 Service Costs 2,366 3,191 4