Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q1 FY25 Earnings Presentation
54 slides from Mahindra Holidays & Resorts India's earnings presentation, Jul 25, 2024
Slide 1: Exchange filing cover letter for Q1 FY25 presentation
ClubMahindra July 25, 2024 MHRIL/SE/24-25/44 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block, Floor 25, PJ Towers, Bandra-Kurla Complex, Dalai Street, Fort, Bandra (E), Mumbai - 400 051. Mumbai - 400 001. Symbol: MHRIL Scrip Code: 533088 Dear Sir/Madam, Sub
Slide 2: Mahindra Holidays & Resorts India Ltd. Q1 FY25 Investor Presentation
8 INDIA.'S ~ ,F INDIA'S ~ K RANK#SI ~ ,~ TOP 50 INOIA'S !IS.ST~ U MOST POPULAR ~ BEST WORKPLACE) (1 ASIA' S BEST \I (l WORKPLACH ~ ~ ~ RESORT CHAIN IP I) ~ ~ . IN HOSPITALITY 2021 & 20.22 • Yi_ WORKPLACES, ~ 2022 C' ,IJ • 8UILOING A CULTVRS M OF l~VATlON 8Y ,(!' ALL· LAAG5, 2021 • ClubMahindra TIMfS
Slide 3: Outline
Outline ClubMahindra Highlights – Q1 FY25 Performance - - - - - - - - - - - - - -' 03 - MHRIL – Unique & Profitable Vacation Ownership Business •···························································································································································
Slide 4: Highlights Q1 FY25 Performance
ClubMahindra Highlights Q1 FY25 Performance CLUB MAHINDRA ASHTAMUDI KERALA 3
Slide 5: Q1 Performance Snapshot
Q1 Performance Snapshot Clu bMahindra Membership Sales Value1 Member Base Inventory Rs. 182 Crs (+3% YoY) 3,692 (-21% YoY) 5273 keys Member Additions Cumulative Inventory Base Rs. 4.9 lakhs (+31% YoY) 3,00,396 4 Ongoing Projects Average Unit Realization (AUR) Cumulative Member Base Treehouse Expansi
Slide 6: MHRIL Standalone Financials: PAT grew by 19% YoY
MHRIL Standalone Financials PAT grew by 19% YoY ClubMahindra Rs. Crs Income EBITDA PAT 8% :-----1 17% ~-----: I I ~----' I I ------i__ 19% 1----- ! I I I I I I I I I I I I 384 I I I : I + I I I 113 I I • I 355 I I I 45 97 38 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 5
Slide 7: MHRIL Standalone Financials: Profit Margin expands
MHRIL Standalone Financials Profit Margin expands by 110 bps ClubMahindra EBITDA Margin PBT Margin PAT Margin 110 bps 1-- r---l 220 bps 1---r I I I I --~ 150 bps hI -- ~ I I I I + I I I I I I 29.5% • I I I ! 15.9% T 27.3% 14.4% 11.8% 10.7% Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 6
Slide 8: MHRIL Standalone Financials: Total Income grew by 8% YoY
MHRIL Standalone Financials Total Income grew by 8% YoY ClubMahindra Quarter ended T otal Incom e {Rs Cr) 0 1 FY25 0 1 FY24 YoY Income from Vacation Ownership 132.2 122.7 7.7% ASF Income 97.9 89.3 9.6% Interest & Others 26.4 23. 1 14. 3% T otal VO Incom e 256.5 235.1 9.1% Resort Income 94. 5 92.5 2.
Slide 9: Profit & Loss Statement
MHRIL Standalone Financials Profit & Loss Statement ClubMahindra Rs Cr Quarter ended 01 01 Particulars YoYGr FY25 FY24 Revenue from Operations 35 1. 0 327.6 7.1% Non -Operating Incom e 33.5 27. 3 22.7% Total Income 384.5 354.9 8.3% Employee Benefit Expenses 96.9 86.4 12.2% Sales & Marketing Expenses
Slide 10: Snapshot of Balance Sheet
MHRIL Standalone Financials Snapshot of Balance Sheet Rs Cr ClubMahindra Description As on Ason 30th June 2024 31st March 2024 ASSETS Property, Plant and Equipment 2,537.4 2,500.5 Right of Use Asset (IND AS 116) 473.9 400.7 Trade receivables 1, 236.5 1, 219.5 Cash and cash equivalents (regrouped) 1,
Slide 11: Consistent growth in Deferred Revenue pool
Consistent growth in Deferred Revenue pool ClubMahindra 5655 5595 Deferred Revenue 5326 Pool (Rs. Cr) 5083 FY22 FY23 FY24 Q1 FY25 Deferred Cost 723 767 814 807 (Rs. Cr) 10
Slide 12: Customer Acquisition
Customer Acquisition ClubMahindra Member Additions AUR* (Rs Lakhs) Sales Value (Rs. Crs.) !---i -21% 1---1 ! I !-----1 31% 1---7 :---~ 3% 1----1 • • I I I I I 4696 I I I I ! 182 I I I I 4.9 177 • I I ! 3692 3.8 48 57 129 125 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 ■ New Membership Sales ■ Up
Slide 13: Strengthening Brand Pull through Targeted Marketing Campaigns
Strengthening Brand Pull through Targeted Marketing Campaigns ClubMahindra Movie Association Club tv1 I R E RD S Mr & Mrs. Mahi & Club Mahindra RefER. AND DIS(oVER. NEW DErnNA1loNS • Club Mahindra associated with Mr. & Mrs. Mahi; a Bollywood movie released le E)((mNti REWARDS wrrn in the month of Ju
Slide 14: Ongoing Inventory Addition Projects
Ongoing Inventory Addition Projects ClubMahindra 4 Projects/ ~630 keys Greenfield Expansion of existing Resorts 2 Projects (~390 keys) 2 Projects (~240 keys) Ganpatipule, MH Kandaghat, HP Commenced in Q1FY24 Commenced in Q4FY22 Theog, HP Treehouse, Jaipur Commenced in Q2FY24 Commenced in Q1FY25 13
Slide 15: Diverse in-resort Experiences
Diverse in-resort Experiences ClubMahindra E-Bike Tour at Madikeri Coffee Plantation walk at Virajpet Pottery at Ooty Adventure Activities at Madikeri Music Session at Saj Fun Cooking with Chef at Ashtamudi Clay Art Unique Dining at Munnar 14
Slide 16: MHRIL Unique & Profitable Vacation Ownership Business
ClubMahindra MHRIL Unique & Profitable Vacation Ownership Business CLUB MAHINDRA VARCA GOA 15
Slide 17: Unique and sustainable Vacation Ownership business
Over the years, MHRIL has created a unique and sustainable Vacation Ownership business and is the #1 Leisure Hospitality player in the country ClubMahindra MHRIL Vacation Ownership business consists of .. …with unique competitive advantages Strong economic model and difficult to replicate mt Club Ma
Slide 18: Our Business Model is Differentiated
Our Business Model is Differentiated ClubMahindra Focus on Family Multi-Product Portfolio serving Spacious Resorts with Vacations diverse consumer needs Larger Apartments • Memorable family experiences • Portfolio approach to help • Members prioritize vacationing o New & popular destinations capture
Slide 19: Multi-Year Sources of Value Creation in Vacation Ownership
Multi-Year Sources of Value Creation in Vacation Ownership across the Tenure of the Membership ClubMahindra Vacation Ownership Income Membership Fee over the entire tenure of membership VO Interest Income Income ~ Annual Subscription Fee (ASF) New member joins Recurring fees Adjusted for inf
Slide 20: Product portfolio evolved to target diverse customer segments
MHRIL’s product portfolio has evolved over time to target diverse customer segments ClubMahindra • MHRIL's product portfolio strategy has evolved significantly to Ol Families s:: include multiple products of different tenures, which enables i, s:: QJ a. targeting diverse consumer segments. (/) >, :;
Slide 21: Expanding Choice of Destinations across MHRIL and HCR
Expanding Choice of Destinations available to members across MHRIL and Holiday Club Resorts (HCR) along with Horizons Exchange Program ClubMahindra .._., ..,___CLUB _ _ _M __ ii C \u b Ma.hindTa. ~ Holiday ■ Club lcforlzons S E L E C T 33 Timeshare/Spa Holiday Exchange Offers 365-day 5,273 rooms acr
Slide 22: MHRIL Long-Term Value Creation
CLUB MAHINDRA MANALI HIMACHAL PRADESH ClubMahindra MHRIL Long-Term Value Creation 21
Slide 23: Accelerate Inventory Addition
Accelerate Inventory Addition Double Inventory base from ~5,000 to ~10,000 keys by FY30 ClubMahindra Total Inventory No of keys 10,000 5,327 4,568 4,940 4,197 3,472 3,595 3,732 2,879 3,152 2,816 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 -------------------------
Slide 24: Inventory addition through Multi-modal route
Inventory addition through Multi-modal route ClubMahindra MHRIL will use a combination of inventory addition routes: A B C D E Greenfield Resorts Brownfield Resort Built-to-Suit Resorts Resort Leases through existing Land Projects Acquisitions with third-party Partially constructed / Banks & PPP lan
Slide 25: Horizons exchange program
Horizons One-of-a-kind holiday exchange program for our Club Mahindra members ClubMahindra C l u b Ma.hln.dra l I c)1:.-rz ·c >11s 1M #MlfrtlfflfH1!-iid MM Program offers our members freedom of choice to book an accommodation in any of the partner hotels around the world in exchange for their VO Roo
Slide 26: Tech-enabled Member Acquisition & Servicing
Tech-enabled accelerated Member Acquisition & enhanced Member Servicing ClubMahindra Tapping improved digital penetration in India through Revamped digital infrastructure & use of technology across touchpoints • Online engagement through feature-rich prospect website & digitization of loyalty progra
Slide 27: Experience Ecosystem: Club M Select
Experience Ecosystem Club M Select: An exclusive member-only program ClubMahindra Travel Planning Lifestyle Experiences ••• Ii e-e i I I 11■111 Curation of premium products and finest offerings, enabling a luxurious lifestyle Hotels, flights, airport services, packages, Cruises, Dining, Wellness ser
Slide 28: Club M Rewards Loyalty Program
Club M Rewards: Loyalty Program exclusive for Club Mahindra members ~~ ClubMahindra Features: Members can earn referral points whenever their referred friend buys a Club Mahindra ClubM vV AR D" membership A P IHM IL IA LOY.\l·y PROGRAM BY CLLB M,\HINDRA Multi-tiered (4 tier) loyalty program base
Slide 29: ESG Initiatives
ASSONORA GOA ClubMahindra ESG Initiatives 28
Slide 30: Our Commitments
Our Commitments ClubMahindra We are India’s first hospitality company to join the Global campaign for RE100 and EP100. These initiatives are aligned with the core principles of ‘RISE’ and our mission of ‘Good Living, Happy Families’. Carbon Neutrality Net Zero Green Resorts EP 100 RE 100 Biodiversit
Slide 31: Our Key Sustainability Initiatives
Our Key Sustainability Initiatives ClubMahindra Water Management Energy Initiatives • Jal Jivan Initiative - improve efficiency • SBTi: Reduce Greenhouse Emissions by of water utilization through 4 R principle 88.3% by 2031 • Separate Grey & Black water treatment • Solar panels at 27 of our resorts
Slide 32: CSR Initiatives
CSR Initiatives ClubMahindra Promoting Education GYANDEEP | Study material & Infrastructure Support • Stationery and Learning material to 60 students at Govt. School, Arookutty • Auditorium refurbishment at St. Joseph Orphanage, Thekkumbhagom • Refurbishing the school assembly hall at Govt. School C
Slide 33: Holiday Club Resorts (HCR)
Holiday Club Resorts (HCR) We Create Dream Holidays 32
Slide 34: HCR – A Leading Timeshare Company
HCR – A Leading Timeshare Company ClubMahindra HCR’s business consists of .. …with unique competitive advantages Timeshare In Finland, leader in Timeshare owner base tiff Widespread network of Spa resorts with varied experiences 33 Timeshare Destinations in 60,000+ Finland, Sweden & Spain Timeshare
Slide 35: HCR Business Model – Finland
HCR Business Model – Finland ClubMahindra Spa hotels and resorts are open for all visitors – timeshare owners are essential and frequent visitors Spa hotels and resorts • Large resort-style destinations with various room types, restaurants, waterparks/spa, & leisure activities generating consistent
Slide 36: HCR Operating Profit in FY24 despite Russia-Ukraine War
HCR has delivered € 5 mn Operating Profit in FY24 despite the impact of Russia-Ukraine War ClubMahindra Revenue (€ Mn) Operating Profit (€ Mn) 12.0 161.9 165.0 161.1 157.3 144.2 142.3 7.8 6.3 6.7 122.1 5.0 5.0 99.5 I (0.3) FY17 FY18 FY19 FY20 FY21* FY22* FY23# FY24# (8.9) # # FY17 FY18 FY19 FY20 FY2
Slide 37: Q1 FY25 Performance
ClubMahindra Q1 FY25 Performance 36
Slide 38: HCR Performance
HCR Performance ClubMahindra Euro Mn Income EBITDA PAT 30.3 30.1 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 -2.5 -2.9 -3.4 -3.6 Q1 FY24 Q1 FY25 Weak consumer sentiment continues to impact In-Resort spending at Spa hotels. Revenue from Timeshare sales grew by 34% YoY on account of higher sales & better sales re
Slide 39: HCR Financials
HCR Financials Quarter ended ClubMahindra Particulars (Euro Mn) 01 FY25 01 FY24 Timeshare 10. 7 8.0 Spa Hotels 15.0 16.4 Renting 2.5 2.5 Real Estate Management 1. 8 1.8 Villas 0. 1 0.5 Other Incon1e - 1.1 Total Revenue 30.1 30.3 Quarter ended Particulars (Euro Mn) 01 FY25 01 FY24 Turnover 30. 1 30.3
Slide 40: MHRIL Consolidated Q1 FY25 Financials
MANALI CLUB MAHINDRA POOVAR HIMACHAL KERALA PRADESH ClubMahindra MHRIL Consolidated Q1 FY25 Financials 39
Slide 41: Consolidated Financials
Consolidated Financials ClubMahindra Rs. Crs Income EBITDA PAT 5% :-----1 14% ~-----: I ~-----' I ++ ------1........__1----- I I I I I I I I I I 686 I : + I 652 I 139 I I I I 122 6 1 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 40
Slide 42: Consolidated Profit & Loss Statement
Consolidated Financials Profit & Loss Statement ClubMahindra Rs Cr Quarter ended Particulars 01 FY25 01 FY24 YoYGr Income from Operations 652.9 614 3 6.3% Non-Operating Revenue 33.2 37.5 -11. 5% Total Income 686.1 651.8 5.3% Cost of vacation ownership weeks 447 43. 1 3. 7% Employee benefits expense
Slide 43: MHRIL Key Trends & Business Environment
ClubMahindra MHRIL Key Trends & Business Environment CLUB MAHINDRA KANHA MADHYA PRADESH 42
Slide 44: Key Trends in Indian Economy
Key Trends in Indian Economy ClubMahindra Domestic Airline Passenger Traffic continues to be higher RBI Consumer Confidence reflects optimism than last year, 6% YoY increase in May’24 Current Situation Index (CSI) Future Expectations Index (FEI) 30 Domestic Passengers (in million) ... ---- ... ✓ ' I
Slide 45: Indian Hospitality Sector's key metrics
Indian Hospitality Sector’s key metrics ClubMahindra ..a Highlights Occupancy Trending lower than LY Seasonal Decline in ADRs Average rates continue to be significantly higher than pre-pandemic May’19 Industry level occupancy of 60% (down by 2 pp YoY) in May’24 rates by 27% & post-pandemic May’23 ra
Slide 46: Market Landscape: Emerging Trends & Consumer Preferences
Market Landscape | Emerging Trends & Consumer Preferences ClubMahindra Rise in Leisure Travel Growing Revenue from MICE & Weddings Hotel demand soaring in 2023, mainly due to rise in leisure CY2023 witnessed resurgence of Corporate MICE and Big Fat Indian travel. High footfall observed in popular to
Slide 47: MHRIL Historical Performance
CLUB MAHINDRA MASHOBRA HIMACHAL PRADESH ClubMahindra MHRIL Historical Performance 46
Slide 48: Large base of committed members continues to grow
Large base of committed members continues to grow ClubMahindra In FY24, Cumulative Member Base is ~2.98 Lakhs with 85% Fully Paid Members Total Member Base 1,99,617 2,18,138 2,35,792 2,43,574* 2,58,336 2,54,431* 2,65,980 2,81,820 2,97,771 2,38,610 2,53,302 2,25,838 1,91,615 2,08,967 1,77,277 1,62,87
Slide 49: Investment in Room Inventory with Higher Occupancy and Operating Cash
Investment in Room Inventory continues with Higher Occupancy and Operating Cash ClubMahindra Occupancy 5,500 DDDDDDDDD 81% 85% 85% 83%* 80%* 72%* 74%* 84% 85% 5,327 1,600 4,940 1,400 5,000 4,568 1,383 1,200 4,500 4,197 1,158 1,172 3,732 1,000 4,000 940 3,472 3,595 800 3,500 781 3,152 519 600 3,000 2
Slide 50: A Strong and Consistent Performance Track Record
A Strong and Consistent Performance Track Record ClubMahindra Total Revenue CAGR: 10% for FY15-19; 8% for FY19-24 PBT CAGR: 23% for FY15-19; 17% for FY19-24 In Crs 1,434 In Crs 1,306 120 241 4 1,170 93 2 214 3 223 1,090 1,094 109 201 207 204 964 44 1,037 1,071* 79 18 30 109 1 89 963 337 168 169 12 9
Slide 51: Revenue contributions from various streams
Revenue contributions from various streams Revenue Mix ClubMahindra 2% 1% 3% 3% 5% 6% 8% 8% 8% 7% 9% 10% 8% 9% 12% 11% 6% 6% Our cumulative 9% 6% 16% 18% member base 17% 19% 12% 18% 25% 24% provides us with 23% 22% multiple annuity 19% 18% 19% 20% revenue streams 32% 29% which are 28% 26% 27% 27% pr
Slide 52: Healthy Profit Margins
Healthy Profit Margins ClubMahindra EBITDA Margin PBT Margin 2 I I 1 32% 32% 4 5 21% I 1 2 I 29% 29% 19% I 19% 19% 17% 18% 4 5 24% 25% 24% 24% 25% I 23% I 16% 16% 13% 12% 16% ii i i11 10% FY15 FY16 FY17 FY18 FY19 FY19 FY20 FY21 FY22 FY23 FY24 I I FY15 FY16 FY17 FY18 FY19 FY19 FY20 FY21 FY22 FY23 FY2
Slide 53: Disclaimer
Disclaimer ClubMahindra This presentation may contain ‘forward looking statements’ within the meaning of applicable laws and regulations. Investors are cautioned that ‘forward looking statements’ are based on certain assumptions, which Mahindra Holidays & Resorts India Limited considers reasonable a
Slide 54: Contact us
if INDIA'S ~ if INDIA'S ~ # RANl<#&1 K TOP so INOIA'S IISST I~ MOST POPULAR ~I \II RESORT 1'' I~ BEST WORKPLACE ~I \II IN HOSPITALITY ,'I (/ ASIA'S BEST \I ~ WORKPLACES, IJ (/ WORt<PLACI.S 8UILDING A CULTURli OF I...OVATION 8Y ,C' i ClubMahindra ~ CHAIN di ~ 2021 & 2022 di ~ 2022 ~ ALL • L A ~ 2021
Mahindra Holidays & Resorts India — Q1 FY25 Earnings Presentation on 6ix