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Prometheus Final Round Submission

Team The Altruists, IIM Lucknow

Team Members
Abhineet Gaurav Dhaval Chudasama Vikas Siddeshwar

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Agenda
Online Retail Industry Overview Company Overview

Business Model
Deal Proposal Financial Projection and Returns How PE can contribute ?

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Online Retail : Poised to take-off in India

E-commerce
Indian online Retailer Sales in US$ bn

Sales Growth- Online Retail in India

Deals

Market Place

Online retail

~ CGAR Growth of 50%

10 9 8 7 6 5 4 3 2

Providing Technology based buyer seller platform

Retailing Products online

Mainly Focused on Services Salons, Restaurants etc.

Ebay, Alibaba IndiaMart Amazon

Bookmyshow Flipkart, Infybeam Naaptol

Snap deal Mydala Deals and You Groupon

1
2012 Online Retail in India 2016 Source: Forrester and Assocham

Growth Drivers
Growth
Source: Assocham

Low Share of E-tail in India in overall retail in Internet Penetration 50% y-o-y increase
E-tail to double its share in overall retail 0.27% 7.9 0.13% FY 2015 6.7 Unorganised Organised E-tail Online
Source: Crisil

Growth in organized retail Economic Growth of India Social media

FY 2012

93.20% 90.81%

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Overview Bookmyshow.com
Bigtree and bookmyshow

Establishment Year:1999 Offers: Ticketing for movies, plays, concerts and live events like IPL, ICL, F1

through its website - www.bookmyshow.com.

Also provides doorstep delivery, cash collection, warehousing and

software for ticketing transactions.

Critical Success Factors

40% CAGR in revenues and over 90% market share in online

entertainment ticketing space

Partnered with 850 screens across 87cities, like Inox, Big Cinemas,

Fun
75% of all cinema tickets sold online are booked on BMS, resulting in sales

upto 1 million tickets

Ticketed for over 1,500 plays online Have exclusive and permanent rights for ticketing for theatre venues like

Prithvi Theater, Mumbai, NCPA Mumbai, Indian Habitat Centre Delhi and Rangshankara Bangalore.
Source: Four-S Services PE Report

Have international presence in Malaysia and New Zealand.

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Latest Happening at bookmyshow

Accel Partners invested Rs. 100 cr in BookMyShow
Bought a large minority stake through a mix of primary

share issue and sale of shares by existing investor Network18 Media & Investments
Prior to the latest transaction, public-listed Network18

Media & Investments (through its step-down subsidiaries) held 60% stake in Big Tree, which has now shrunk to 40%

100 cr INR

Capital raised will be utilized by BookMyShow to:

Strengthen presence in tier II and tier III cities via

non-movie business.

ticket

sales

and

event-booking

Further tap single-screen cinemas in small towns Build technologies around mobile payments and

applications.

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Sources of Value for PE: Our Business Model

Bookmyshow.com happens to be at the right place at the right time
Target Group

Lifecycle of a ticket How does it create value to Bookmyshow.com

Tech savy youth Urban families Tier I/II city families Increasing urbanisation
Watch TV, travel with friends Spend quality time with family Watch Films, plays, IPL, concerts Chat on facebook/social media and mobile

What do they do?

Ticket Price

Average: Rs 150 10% Total revenue per ticket = Rs 15 2% Cost = Rs 3 8% Rs 12 per ticket

How do they book tickets?

Bookmyshow share

Physically at movie counters Book online Book on mobile Ask a friend to book Black Market Advance booking

Payment Gateway cost

Net Revenue

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Sources of Value for PE: Is our business model sustainable ?

Internet Connections
Wireless Wireline 51 Million units

43 36 31 26 22 65 2011 101 2012 150 208 282 392

2013P

2014P

2015P

2016P

Active internet enabled smart phones

The customer spends of over Rs.100 million, on an average

every month, only on movies

No. of internet connections are going to surpass the number
Million units

of TV subscription by 2016
Mobile connectivity will drive the next phase of growth, as

264 166 105 10 2011 24 2012 58 2013P 2014P 2015P 2016P

active internet enabled smart phones will reach to 264 million units
Especially Tier II India has leaped to mobile directly

without taking to computer, and hence the importance of mobile show booking

Source: KPMG India Analytics Report

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Quantitative Analysis

Alexa Traffic Statistics as on 25-Oct-2012

Daily Page Views: 730,412 views Hosted on in.com Site rating: 4 out of 5

Annual Report Statistics

As on Dec 31st 2011. Registered users: 2.7 mn Unique visitors per month: 2 mn Annual growth of 58%

Source: http://www.freewebsitereport.org/www.bookmyshow.com

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Deal Proposal
Current Stake Value = INR 250 Crores New Value Pie= INR 300 Crores

40%

40%

33% Equity of INR 50 Crores

33%

20%
TV 18 Accel Partners Others

17% 17%
TV 18 Accel Partners New Investor Others

Valuation Based On Accel Partners deal 9X Sales FY 2012, Sales of INR 29 Crores 180X Profit FY 2012 Profit of INR 1.4 Crores

17% stake provides board seat Dividend Payout from FY 2015 Small Debt Infusion in FY 2015,16, 17 , With coverage ratios greater than 20 Stake and Liquidity Protection through a revolving credit facility of Rs. 5 Crores

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Other Revenue Sources beyond cinema to drive growth, Multiplex explosion to add on
FY2012 1000 4000 150 3 9,00,000 32,40,00,000 15 0.35 17 12.13 29 251.1868 FY 2017 4000 16000 150 3 54,00,000 1,94,40,00,000 15 0.35 102 ~5X Growth 119 ~10X Growth 221 1547.42 17 1530.42

No. Of Multiplexs Screen Average Capacity No.of Shows Seats Per Day Seats Per Year
Average Bookmyshow Share per ticket

Capacity Cinema Revenue INR Crores Event Revenue Revenue Valuation in INR Crores Debt INR Crores Value INR Crores Investment INR Crores Equity Stake PE exit return in INR Crores IRR

50 17% 254.0649192 38%

Improving Margins , No Equity Funding Requirements No Fear of Dilution

Income Statement FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY2017 All Figures in INR Crores Revenues 12.2 16.1 29.1 46.6 69.9 104.9 157.4 221.0 EBIT -1.5 -0.5 2.1 4.0 7.0 10.5 15.7 22.0 Interest 0.6 1.8 2.0 Tax 0.0 0.0 0.6 1.2 2.1 3.0 4.2 6.0 Profit -1.5 -0.4 1.5 2.8 4.9 7.5 11.5 16.0 EBIT 7% 9% 10% 10% 10% 10% Margin in %age 5% 6% 7% 7% 7% 7% Projected on basis of Makemytrip Capex in crores 18.0 16.0 16.0 15.0 14.0 Debt Raised 5.0 10.0 2.0 Dividends 6.0 6.0 6.0 Cash Flow From Operations* Estimates -0.8 0.5 2.5 4.6 7.5 12.1 17.6 Capex -18.0 -16.0 -16.0 -15.0 -14.0 Cash Flow From Financing Equity 20.0 20.0 10.0 Debt 5.0 10.0 2.0 Dividend -6.0 -6.0 -6.0 Total 20.0 20.0 9.0 4.0 -4.0 Net Change In Cash 4.5 8.6 0.5 1.1 -0.4 Cash Position 2.0 6.5 3.0 3.5 4.0 3.6

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Cash Flow from operation to support dividend payment and Capex from FY 2017

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Close to 38% IRR at Year 5, Valuation multiples of makemytrip.com Potential exit through IPO
Price To earning basis:
FY 2010 -1.52 FY 2011 -0.41 FY 2012 1.45 182 250 50 300 17% FY 2013 2.79 FY 2014 4.88 FY 2015 7.50 FY 2016 11.52 FY2017 16.03 90 1443

Price To Earning

Profit Multiple Valuation

Investment Total Equity Equity Share of Private Equity P/ E Return PE Value CashFlow IRR

17% 240.4 241.4

-50 37%

Value to revenue basis:

Revenues Multiple Valuation FY 2010 12.16 FY 2011 16.09 FY 2012 29.14 9 250 50 300 17% FY 2013 46.62 FY 2014 69.93 FY 2015 104.90 FY 2016 157.35 FY2017 221.00 7 1547 17

Revenue

Total Debt Investment Total Equity Equity Share of Private Equity EV/Sales Equity PE Value CashFlow IRR

15

17% 1530.0 255.0 256.0

-50 39%

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How PE can contribute?

Market Opportunity
Expertise

Differential Access
Contacts and relationships Special access to markets Special access to resources

in entertainment and online ticketing space, e.g. Accel Partners

Access to capital, liquidity Effective management of non-diversifiable

risk creating additional value

Technical Superiority Differential Access Market Opportunity

Technical Superiority
Technical

Management Superiority

Management Superiority for self Aligns incentives for managers solving

expertise required servicing advanced IVR system

agency problem
Provides monitoring and mentoring for

Integration with third party applications

managers

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How PE can contribute?

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Thank You

Group Structure
Raghav Bahl
51%

51%

75%

51%

67%

AFFILIATE

AFFILIATE

DIVISIONS

53%

50%

50%

SOURCE18

70%+

~30%

Mgt

15% 85%

100%

*Note: Investment in Infomedia is subject to statutory & regulatory clearances

Listed entity