Escolar Documentos
Profissional Documentos
Cultura Documentos
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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Market Place
Online retail
10 9 8 7 6 5 4 3 2
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
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
Fun
75% of all cinema tickets sold online are booked on BMS, resulting in sales
Prithvi Theater, Mumbai, NCPA Mumbai, Indian Habitat Centre Delhi and Rangshankara Bangalore.
Source: Four-S Services PE Report
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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
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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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
Ticket Price
Average: Rs 150 10% Total revenue per ticket = Rs 15 2% Cost = Rs 3 8% Rs 12 per ticket
Bookmyshow share
Physically at movie counters Book online Book on mobile Ask a friend to book Black Market Advance booking
Net Revenue
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2013P
2014P
2015P
2016P
of TV subscription by 2016
Mobile connectivity will drive the next phase of growth, as
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
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Quantitative Analysis
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%
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
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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
Investment Total Equity Equity Share of Private Equity P/ E Return PE Value CashFlow IRR
-50 37%
Revenue
Total Debt Investment Total Equity Equity Share of Private Equity EV/Sales Equity PE Value CashFlow IRR
15
-50 39%
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Differential Access
Contacts and relationships Special access to markets Special access to resources
Management Superiority
agency problem
Provides monitoring and mentoring for
managers
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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%
Listed entity