Investor PresentationDecember 2017
This presentation may contain statements which reflect the management’s current
views and estimates and could be construed as forward looking statements.
The future involves certain risks and uncertainties that could cause actual results to
differ materially from the current views being expressed.
Potential risks and uncertainties include such factors as general economic conditions,
foreign exchange fluctuations, competitive product and pricing pressures and
regulatory developments.
Disclaimer
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2
3
4
5
Q2FY18 Results
Company Overview
Financials
Growth Strategy
Management Team
Contents
Q2 FY18 Financials
4
Matchmaking Services Marriage Services & Related Sale of Products
In ₹ millionMatchmaking + Marriage Services
28 30 26
37 49 46
(37)
(23)(30) (31)
(36) (38)(50)
(30)
(10)
10
30
50
Q1 FY2017 Q2 FY2017 Q3 FY2017 Q4 FY2017 Q1 FY2018 Q2 FY2018
Revenue EBITDA
Note : Q3 and Q4 of FY17 financials as per IGAAP
714 736 725 754
839 837
122 148 162 158 197 206
17.1%20.1%
22.4%20.9%
23.5%24.6%
0%
5%
10%
15%
20%
25%
30%
35%
0
200
400
600
800
1,000
Q1 FY2017 Q2 FY2017 Q3 FY2017 Q4 FY2017 Q1 FY2018 Q2 FY2018
Revenue EBITDA EBITDA Margin (%)
685 706 700 717 790 790
183 200 216 215 261 267
26.7%28.3%
30.9% 30.1%
33.1% 33.8%
0%
10%
20%
30%
40%
0
200
400
600
800
1,000
Q1 FY2017 Q2 FY2017 Q3 FY2017 Q4 FY2017 Q1 FY2018 Q2 FY2018
Revenue EBITDA EBITDA Margin %
H1 FY18 Financials
5
Matchmaking Services Marriage Services & Related Sale of Products
In ₹ million
1,450
1,675
270 404
18.6%
24.1%
0%
5%
10%
15%
20%
25%
30%
35%
0
500
1,000
1,500
H1FY17 H1FY18
Revenue EBITDA EBITDA Margin (%)
Matchmaking + Marriage Services
58
95
(60)(74)(100)
(50)
0
50
100
150
H1FY17 H1FY18
Revenue EBITDA
1,391 1,580
383 529
27.5%
33.5%
0%
10%
20%
30%
40%
0
500
1,000
1,500
H1FY17 H1FY18
Revenue EBITDA EBITDA Margin %
Q2 FY18 Key Metrics
6
Ever Registrations (in mn) Active Profiles (in mn) Free Registrations (in mn)
Paid Subscription (000's) ATV (in Rs)
24.2725.02
25.8426.75
27.6528.51
20
22
24
26
28
30
Q1FY2017
Q2FY2017
Q3FY2017
Q4FY2017
Q1FY2018
Q2FY2018
2.662.75
2.893.03 3.08
3.19
2.0
2.4
2.8
3.2
Q1FY2017
Q2FY2017
Q3FY2017
Q4FY2017
Q1FY2018
Q2FY2018
0.74 0.75
0.82
0.91 0.900.87
0.4
0.6
0.8
1.0
Q1FY2017
Q2FY2017
Q3FY2017
Q4FY2017
Q1FY2018
Q2FY2018
177 170 169
186 190
177
100
125
150
175
200
Q1FY2017
Q2FY2017
Q3FY2017
Q4FY2017
Q1FY2018
Q2FY2018
3,946 4,002
4,057
4,245 4,242
4,339
3800
4000
4200
4400
Q1FY2017
Q2FY2017
Q3FY2017
Q4FY2017
Q1FY2018
Q2FY2018
Company Overview
Matrimony.com at a glance
300+Community Matrimony sites
15Regional Matrimony sites
140Retail Outlets
3.19mnActive Profiles 2
28.51mnTotal registrations since January 2006 2
459mnTotal Page Views. More than 9x views of other sites 1
702,000Paid subscriptions in FY2017 3
INR 2,929mnFY17 Revenues (14.7% YoY growth)
20.2%FY17 EBITDA margin (against 2.8% in FY16)
#1Leader for Matchmaking Services 1
We deliver matchmaking services to our users in India and the Indian diaspora through our websites, mobile sites and mobile apps complemented by our on-the-ground network in India.
81 In terms of average number of website pages viewed by unique visitors in June 2017 as per the Traffic Share Distribution data from April 2014 to June 2017 compiled by Comscore, Inc. 2 As on Sept 30, 2017; 3 According to Key Business Metrics Report dated August 8, 2017 prepared by R.G.N. Price & Co
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1Large Online Matrimony Market
Opportunity
2Leading Provider of Online
Matchmaking Services in India
3Micro-Market Strategy with Targeted and Customized or
Personalized Services
4Strong Consumer Brand
5Robust Technology and
Analytics
7Key Business Metrics Drive Revenue
Growth and Operating Leverage
6Continued Expansion into Marriage
Services Segment
A Unique Proposition
Unmarried Population in 2016107 Million 1
Active Seekers in 2016 - 63 Million
Active users of online matrimony in 2016 –6 Million
100%
59%
6%
Active Profiles on Matrimony.com 3.19 Million 2
3% An Early Mover to Online Matchmaking services…..
Large Database
More Matches/Responses
AttractsMoreUsers
…. Coupled with a Network effect resulting in a large database of profiles…
991
420 348
Matrimony Site1 Site2
149
26 33
Matrimony Site1 Site2
459
46 48
Matrimony Site1 Site2
28.51 Million Total registrations since 2006 2
Total pages viewed (millions) for June 2017
Time Spent (minutes in millions) for June 2017
Unique visitors (‘000s) for June 2017 3
…. Resulting in Market Leadership
A Differentiated Growth Story
101 Based on “Market study of Online Matrimony & Marriage Services in India” report by KPMG dated May 4, 2017; 2 As on Sept 30, 20173 Source: Traffic distribution data from April 2014 to June 2017 for Matrimony.com, and others complied by ComScore.Inc
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With a Highly Customised “Micro-Market” Strategy….
BharatMatrimony
CommunityMatrimony
EliteMatrimony
• Classic, Classic Advantage and Classic Premium• Till-U-Marry• Assisted Service
• Gold, Diamond and Platinum• Till-U-Marry• Assisted Service
• Gold, Blue, Platinum• Till-U-Marry
A range of targeted and customized products and services…..
.…Catering to Customer Needs through a Layered Product Offering…
Matchmaking Services: 15 Regional Language Portals and Over 300 Community Matrimonial Sites
Model Developed to Cater to Unique Requirements of the Indian Market
Mobile
Offline
Website
• Achieved 6.8 million app installs (BM)1
• Mobile sites and mobile apps accounts for 2
✓ 87% of Profile views
✓ 67% of Personalized messages sent and received
✓ 77% of the total number of free profiles registered
✓ 81% of Express Interest messages
✓ 70% of Phone numbers viewed
Source: 1 According to www.androidrank.org as on 30 September 2017 ;
2 For the month of September 2017
matrimony.com
Strong Technology Platform• Reliable and Scalable technology with focus on Information security
Big Data & Analytics• In-house Intelligent Matchmaking Algorithm (“MIMA”) • Data Analytics algorithms to track consumer trends to assist in driving monetization of user base
Campaign Management
• IBM Unica systems to improve customer experience and subscriptions
… Backed by Strong Technology and Analytics Backbone…
Multi-Channel Customer Outreach…
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Additional Avenues for Growth through Forward Integration..
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Marriage Services : Complements online matchmaking services to provide organized services in the marriage services market
• Provides professional wedding photography and videography services
• Launched in Tamil Nadu, Kerala, Andhra Pradesh, Telangana and Karnataka
A wedding classified portal with 50,000+ listings to connect customers with right service provider
• A wedding venue discovery platform with 500+ wedding venues
• Currently available at Chennai, Coimbatore, Madurai and Trichy in Tamil Nadu, Hyderabad and Secundrabad in Telangana, Bangalore in Karnataka and Kochi in Kerala
• A relationship manager helps customer avail wedding-related services and recommends suitable vendors
• Currently available in Chennai, Coimbatore, Madurai and Trichy
2015 NASSCOM “Certificate of Excellence for
innovative application of analytics for
business solution”
Bharatmatrimony.com awarded India’s most
trusted online matrimony brand by Brand Trust Report India Study 2014
Featured in Limca Book of Records for record number of documented marriages online
Special jury mention for gender sensitivity (2013-2014) for TVC (Bharat Matrimony-Career) at National Laadli Media and
Advertising Awards, 2015
Certified as most used matrimonial search website in 2013-14 for Indian online customers
by JUXT
BharatMatrimonymobile app - Best app in the social category.
Global Mobile App Summit and Awards -
July 2016 and July 2017.
Profile authentication features such as “Identity Trust Badge” help in maintaining and continuously improving the quality of database further increasing consumer trust
Strong Consumer Brand
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Robust Revenue Growth
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Matchmaking + Marriage Services
Matchmaking Services Marriage Services & Related Sale of Products
Note: 1. Financials as per IGAAP2. CAGR (%): Calculated as [{(Revenue in FY17/Revenue in FY13)^0.25}-1]*100 | 3. Segment EBITDA=Segments Results + Depreciation
In ₹ million
13
66
94108
121
-335%
-122%
-138%-161%
-101%
-400%
-350%
-300%
-250%
-200%
-150%
-100%
-50%
0%
0
20
40
60
80
100
120
140
FY13 FY14 FY15 FY16 FY17
Marriage Services Revenue (INR mn) EBITDA Margin (%)
1,8882,073
2,428 2,554
2,929
8.6%6.3% 7.3%
2.8%
20.2%
0%
5%
10%
15%
20%
25%
30%
0
500
1,000
1,500
2,000
2,500
3,000
FY13 FY14 FY15 FY16 FY17Revenue (INR mn) EBITDA Margin (%)
1,873 1,989
2,320 2,440
2,808
14.1% 13.5%
17.1%
14.7%
29.0%
0%
5%
10%
15%
20%
25%
30%
35%
0
500
1,000
1,500
2,000
2,500
3,000
FY13 FY14 FY15 FY16 FY17Matchmaking Revenue (INR mn) EBITDA Margin (%)
… Resulting in Operating Leverage
16
Fixed Costs as % of Revenues have started to taper resulting in Margin Expansion
39.8%42.4%
43.6%
49.0%
39.8%
24.5%23.2%
21.9% 21.1%
17.8%
27.1% 28.1% 27.1% 27.0%
22.2%
8.6%
6.3%7.3%
2.8%
20.2%
0%
5%
10%
15%
20%
25%
30%
0%
10%
20%
30%
40%
50%
60%
FY13 FY14 FY15 FY16 FY17
Employee benefit expenses as % of revenues - LHS
Advertisement and promotion expenses as % of revenues - LHS
Other expenses as % of revenues - LHS
EBITDA Margin (%) - RHS
38.3% 39.3%
16.6%15.4%
21.6% 20.6%
23.5%24.6%
0%
5%
10%
15%
20%
25%
30%
0%
10%
20%
30%
40%
50%
60%
Q1 FY18 Q2 FY18
Note: FY13, FY14, FY15, FY16 and FY17 financials as per IGAAP
Operating Cash Flow
17
136
201 232205
496
296
0
100
200
300
400
500
600
FY13 FY14 FY15 FY16 FY17 H1 FY18
Cash from Operating activities before exceptional items (INR mn)
In ₹ million
Profiles:• Fueled by Increasing internet
and smartphone penetration
• Social adoption & Trust
Conversion Rate:• Continuous product
improvements in online &
mobile
• Leverage campaign
management & Analytics
ATV:• Sustained price increase due
to leadership position
• Higher price packages
Increased
Sales
Matchmaking Growth Cycle
Expand User Base1
Continue Investments in
Mobile Platforms2
Drive Monetization3
Further Strengthen Brands4
Continue to Expand into Marriage Services5
Our Growth Strategy
Our Growth Strategy
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Highly Experienced Board of Directors and Management Team
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Board of Directors
George ZachariasNon-Executive Independent Director
Milind S SarwateNon-Executive Independent Director
Murugavel JanakiramanPromoter, Chairman and Managing Director
Deepa MurugavelNon-Executive Director
Nikhil KhattauNominee Non-Executive Director
Key Managerial and Senior Management Personnel
Sanjeev MisraSenior Vice President, Sales and Operations – Matchmaking Business
Vaasen V.Vice President of Finance
R ChandrasekarChief Technology Operation and Infrastructure Officer
S. SaichitraChief Portal and Mobile Officer
Murugavel JanakiramanPromoter, Chairman and Managing Director
K BalasubramanianChief Financial Officer
S. VijayanandGeneral Manager-Company Secretary and Compliance Officer
C K RanganathanNon-Executive Independent Director
Investor Contacts:
Vijayanand S
Company Secretary
Matrimony.com Ltd.
No: 94, TVH Beliciaa Towers, Tower 2, 10th
Floor,
MRC Nagar, Mandaveli, Chennai - 600 028,
Tamil Nadu, India.
Phone: 044-24631500
Email: [email protected]
CIN: U63090TN2001PLC047432