Transcript PowerPoint / PDF - Small Cap Financial Wire
KM Wedding Events Management Inc.
A Comprehensive Wedding Services Company Investor Presentation – NIBA June 17,2014
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Forward Looking Statements
This presentation contains forward-looking statements, including, without limitation, revenue and net income forecasts, estimated rates of growth in the Indian wedding market, and projected performances of future wedding halls and future financial and business performance, together with other statements identified by or containing words like “believes,” “expects,” “anticipates,” “intends,” “estimates,” “projects,” “potential,” “target,” “goal,” “plans,” “objective,” “should”, or similar expressions. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward looking statements. Actual results may differ materially from those expressed herein due to many factors, including, without limitation: our ability to capitalize on the conversion of our matrimonial service into our wedding event services, our inability to raise additional capital when needed to support our expected growth, the loss of critical members of our management team, and our ability to be competitive in the Indian wedding market, together with the factors discussed under “Risk Factors” in our registration statement on Form S-1 declared effective by the Securities and Exchange Commission on March 11, 2014 (http://www.sec.gov/Archives/edgar/data/1591768/000155479514000120/kmwedd022114forms1a4.ht
m) . Although we believes that our expectations reflected in such forward looking statements are reasonable, we cannot guarantee that we will achieve these future results, levels of activity, performance or achievements.
Consequently, neither we, nor any other person or entity, assumes responsibility for the accuracy and completeness of any forward looking statement. In addition, we are not assuming any duty to update any of the forward looking statements after the date of this presentation to conform them to actual results.
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Company Background
Incorporated in the US during October 2012 Acquired KM Wedding Events Management Pvt Ltd, India in Feb 2013., which has been providing wedding services to Indian customers since 2004 Full time Employees : 81 PPM Offering in May 2013 : Common Stock at $0.20 per share, total raised $810,000 S1 Effective : March 2014 Direct Public Offering : 10 Million shares of common stock at $0.30 per share Total $3,000,000 Shares Outstanding: 41,646,160 Estimated Float: 7,912,660 Anticipated Ticker OTCBB:KMWE Filed DTC, expect to quote bid and offer before end of June 2014 3
Business Overview
• • • • • • • Leading and comprehensive Wedding Services Provider for Indian & US Indian markets Wide range of services – Match Making (Matrimony) to Wedding Event Management and Wedding Shopping Event Management includes Wedding Halls, Food & Beverages, Bridals, Honeymoon packages, Concept, Theme and Celebrity Weddings 600,000+ matrimonial customer profiles registered 220,000+ weddings enabled over a decade and 30,000 in year 2013 The company has strong brand and presence in the Indian Market A multi touch point, multi location service delivery & customer acquisition infrastructure (Web, TV, Print, Branches) 4
Investment Highlights
• • • • • Anticipated Revenue mix shifting to higher margin wedding event management services from matrimony services Current High Volume Matrimony customers provide strong pipeline for expected High Value Event Management Services Building scale by creating Wedding Event Infrastructures across India Proven management team with strong domain expertise and 70 man years of industry experience Focusing on untapped US Indian Market for turnkey solutions 5
Global Wedding Market
• Global Wedding Markets is estimated @ USD 298 Bn. ( SplendidInsights.com 2011 ) 6
Indian Wedding Market
Market Size USD Bn 120 100 80 60 40 20 0 $32,29 $40,36 $50,45 $63,06 $78,82 $98,53 2010 2011 2012 2013 2014(E) 2015(E) Market Size USD Bn CAGR • • Matrimony: – South India constitutes 44% of the total users – Offline medium dominates @ 88% share of market. – Online market share small but increasing consistently Wedding Events: – 5 metro’s constitute 50% of the Indian market – Dominated by a large number of un-organized players Source: Splendid Communications 7
Matrimonial Services
(Brand: Kalyanamalai)
Effectively combining Online & Offline Services
Online & Call center Branches and Events TV Program Matrimony Services Partner Expectations Expectations Socio Economic Profiling Profiling Match Making Executive Executive Magazine
Key Benefits
Wide range across multiple touch-points Comprehensive Match Making Engine Personal service through Relationship Executives Enhanced success rate
Recent 20,000
Next 100,000
6 months 4 Years
First 100,000 9 years, 8
Wedding Event Management Services (Brand: Athithi) • • • •
Leveraging the existing match making business platform by forward integrating into Wedding Event Management Service
Asset Light Strategy in creating Quality Wedding
Infrastructure Chain. Establishing a Branded Wedding Hall Chain Network through a long term lease arrangement (Key factor to drive revenue growth) Offering a comprehensive suite of 30 services which encompass a wedding event under the chain
Centralizing Planning, Quality, Procurement, Kitchen & Supply
Chain for the halls (Hub & Spoke Model) 9
Wedding Halls – Forecast
• Plan to operate 10 Wedding halls over next 36 months: – Signed LOI for 3 wedding halls operation and identified 8 more properties – 1st hall estimated to be operational by Sep 2014 and additional 2 halls before Feb 2015 and 3 more halls by March 2016 and 4 halls in FY2016-17 10
KM Expansion Plan
Office set up – New Jersey & San Jose (2014) Wedding Halls on lease (2014) Offer Wedding services in India for US Indians(2014) Empanel Infra providers and aggregate demand (2014) Focused Web Site for US Indians (Q3, 2014) Wedding City @ Chennai (2015) Offer Wedding Services in the US (2016) Destination Weddings (2015) Launch online Wedding Shopping (Q3, 2014) Cross sell to existing customers Focus on Return Gifts Opportunities 11
Proven Management Team
Name/Title
TV Mohan (aka Venkatesan) Chairman and Board of Director Meera Nagarajan President, CEO and Board of Director
Experience Highlights
Entrepreneur 30 years of Matrimonial and Wedding Event Management experience Responsible for overall business, 20+ years experience in wedding services Editor for KM Kalyanamalai magazine, Masters Degree in Public Administration and Economics Vijaya Bhaskar CFO and Board of Director Sridhar Kalyanasundaram Director – Indian Operations Lena Kannappan Director – US Operations Finance, Responsible for Technology and US Operations 15+ years of Business experience Bachelors Degree in Computer Science Head of Indian Operations, Marketing and Wedding Events 24+ years of Business experience Cost Accountant, Company Secretary & Financial Planner US Business Development 25 years of Business experience Entrepreneur and COO of 8K Miles Active member of several indian associations 12
Financial ($) Forecast
Year (March 31)
Revenue:
2013A
1,436,632 Net Income: (278,938)
2014A
1,564,825 82,539
2015E
3,912,063 586,809
2016E
10,953,775 2,190,755 Earnings Per Share: Wghtd. Avg. Shares: (0.007) 39,246,160 0.002
40,732,187 0.011
51,646,160 0.042
51,646,160 • • • • In FY 2014, Revenue growth is 20% over 2013 in Indian Rupees FYI, Indian Rupees depreciated by 11% against US$ between 2013 and 2014, so the Net Revenue Growth in US$ is approximately 9% For Public listing and setting up of US Business operations, the company spent approximately $268,000 in FY 2013 and $150,000 in FY 2014 A indicates Actuals and E indicates Estimated 13
Key Takeaways
• • • • • A compelling unique business opportunity Moving up the value chain resulting in high margin managing wedding events Proven management team 400M Indians estimated to get married in the next 15 years and 26M Indians get married every year across the globe Recession proof wedding market 14
Appendixes
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Business Drivers for Indian Market Growth • • • • • Lack of Quality Wedding Hall Infrastructure to keep up with the demand Limitation in Hotel Banquet Halls to perform traditional religious weddings Industry Largely un-organized and fragmented lacking quality, scale, resources, technology and most importantly innovation Unorganized players include Caterers and Stand alone Wedding halls Lack of comprehensive service provider to give a one stop solutions 16
SUITE OF 30 WEDDING SERVICES
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The Indian wedding industry
Wedding industry, which is currently estimated around $60bn is all set to grow by 25 per cent annually.
As wedding industry shoots with burgeoning demand for events, lavish wedding planning industry gets a boost for demand of organized and structured planning services Online portals like Shaadi.com, bharatmatrimonial and others rack up revenues of $40-50 Million from match-making annually, and believe the business can only get bigger.
The estimated cost of a wedding is between $10,000 to $1 Million. A destination wedding in Goa or Jaipur can easily cost between $200,000 to $400,000 Trends – Theme wedding, Destination wedding, Wedding planning online software, Online classified players diversifying into wedding planning Few facts and figures related to the industry: • No. of Indian marriages in a year: Approx 10 Million • Pandal and venue decoration market: $5 Billion • Venue Rent and Catering: $8 Billion • Wedding invitation card market: $2 Billion • Bridal Mehendi market in India: $1 Billion Source –
Indian retailer.com & technopak
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MATRIMONY – SUCCESS STORIES
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WEDDING EVENT - SUCCESS STORIES
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