KM Wedding Events Management Inc. Investor Presentation – NIBA June 17,2014 1

KM Wedding Events Management Inc.
A Comprehensive Wedding Services Company
Investor Presentation – NIBA June 17,2014
1
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.
2
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
– South India constitutes 44% of
the total users
120
$98.53
100
$63.06
60
40
– Offline medium dominates @
88% share of market.
$78.82
80
$50.45
$32.29
– Online market share small but
increasing consistently
$40.36
20
•
0
2010
2011
2012
Matrimony:
2013 2014(E) 2015(E)
Market Size USD Bn
CAGR
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
Partner
Expectations
Expectations
SocioSocioEconomic
Economic
Profiling
Profiling
Match
Match
Making
Making
Executive
Executive
Magazine
Key Benefits
Wide range across multiple touch-points
Comprehensive Match Making Engine
Personal service through Relationship Executives
Enhanced success rate
Successful
SuccessfulMatches
Matches
Recent 20,000  6 months
Next 100,000  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
Wedding Halls on
lease (2014)
Launch online
Wedding Shopping
(Q3, 2014)
Offer Wedding
services in India for
US Indians(2014)
Empanel Infra
providers and
aggregate demand
(2014)
Cross sell to existing
customers
Focused Web Site for
US Indians (Q3, 2014)
Offer Wedding
Services in the US
(2016)
Wedding City @
Chennai (2015)
Destination
Weddings (2015)
Wedding Shopping
Office set up – New
Jersey & San Jose
(2014)
Wedding Infra
US Presence
KM Expansion Plan
Focus on Return Gifts
Opportunities
11
Proven Management Team
Name/Title
Experience Highlights
TV Mohan (aka Venkatesan)
Chairman and Board of
Director
Entrepreneur
30 years of Matrimonial and Wedding Event Management
experience
Meera Nagarajan
President, CEO and Board of
Director
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
Finance, Responsible for Technology and US Operations
15+ years of Business experience
Bachelors Degree in Computer Science
Sridhar Kalyanasundaram
Director – Indian Operations
Head of Indian Operations, Marketing and Wedding Events
24+ years of Business experience
Cost Accountant, Company Secretary & Financial Planner
Lena Kannappan
Director – US Operations
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)
2013A
2014A
2015E
2016E
Revenue:
1,436,632
1,564,825
3,912,063
10,953,775
Net Income:
(278,938)
82,539
586,809
2,190,755
Earnings Per
Share:
Wghtd. Avg.
Shares:
(0.007)
0.002
0.011
0.042
39,246,160
40,732,187
51,646,160
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
15
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
17
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
18
MATRIMONY – SUCCESS STORIES
19
WEDDING EVENT - SUCCESS STORIES
20