Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — 9M FY2014 Earnings Presentation
47 slides from Indian Hotels's earnings presentation, Feb 11, 2014
Slide 1: Analyst Meet: Results for nine months ended December 31, 2013
The Indian Hotels Company Limited Analyst Meet Results for nine months ended December 31, 2013 1 February 11, 2014
Slide 2: Disclaimer
Disclaimer These presentations contain forward-looking statements within the meaning of applicable securities laws. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements Forward-looking statements are not guaran
Slide 3: Presenter Panel
Presenter Panel Raymond Bickson - Managing Director & CEO Anil P Goel - Executive Director – Finance Deepa Harris - Senior Vice President – Sales & Marketing 3
Slide 4: Outline of Presentation
Outline of Presentation Industry Trends New Inventory Sales & Marketing Initiatives Financial Results 4
Slide 5: Industry Trends
Hotels Resorts and Palares Industry Trends
Slide 6: International Tourist Arrivals
International Tourist Arrivals International tourist arrivals grew by 5% in 2013 Reached a record 1,087 million arrivals Additional 52 million international tourists travelled around the world in 2013 Strong demand in Asia Pacific (+6%), Africa (+6%) and Europe (+5%) Emerging Economies (+4.8%) and A
Slide 7: Foreign Tourist Arrivals in India
Foreign Tourist Arrivals in India April – December, 2013 9 Apr - Dec:+5.1% Foreign Tourist Arrivals in growth over last 8 year India (In Lacs) 7 6 5 4 3 Jan Feb Mar Apr May June July August Sept Oct Nov Dec 2012 2013 In India, Foreign Tourist Arrivals to India grew by 5.1% in Apr- Dec2013 to 48.2 La
Slide 8: Global Hotel Performance January – December 2013
Global Hotel Performance January – December 2013 Key Hotel Industry performance indicators for Jan – Dec 2013 indicate a growth in the US and Europe markets keeping in line with trends from the previous quarter For Jan – Dec 2013, the RevPAR in Asia/Pacific declined by 4.1% driven down by ARRs where
Slide 9: India Hotel Performance – Key cities April – December 2013
India Hotel Performance – Key cities April – December 2013 Apr – Sep 2013, Apr % Change 13 - Decin 13,Market Supply % change – Demand in Market scenario Scenario 18.0% 16.4% 16.0% Supply Demand 14.0% 12.0% 10.9% 11.3% 10.3% 10.0% 8.0% 6.6% 5.6% 5.3% 6.0% 4.8% 4.9% 4.5% 4.3% 3.6% 4.0% 2.9% 2.4% 2.4%
Slide 10: India Hotel Performance – Key cities April – December 2013
India Hotel Performance – Key cities April – December 2013 Apr 13 - Dec 13, % change in performance 15.0% Occupancy % Change ADR % Change 11.6% 10.0% 7.8% 5.6% 5.7% 5.0% 1.0% 0.0% -0.9% -0.2% -2.3% -1.7% -2.4% -5.0% -3.0% -5.7% -5.1% -6.4% -6.8% -6.8% -7.1% -10.0% -9.1% -15.0% The changing class mix
Slide 11: Occupancies % – Year on Year Trend
Occupancies % – Year on Year Trend 9M 2012/13 9M 2013/14 60 65 63 62 55 55 58 57 57 58 51 52 50 48 48 51 Source: STR Global Reports Mumbai, Bangalore & Jaipur showed improved occupancies, while Chennai, Hyderabad, Goa occupancies were lower. 11
Slide 12: ARRs – Year on Year Trend
ARRs –Year on Year Trend 9M 2012/13 9M 2013/14 Source: STR Global Reports Rates lower across all cities barring Goa 12
Slide 13: RevPARs – Year on Year Trend
Rev PARs – Year on Year Trend 9M 2012/13 9M 2013/14 Source: STR Global Reports Mumbai, Bangalore, Jaipur & Goa witnessed RevPARs higher than last year 13
Slide 14: New Inventory
Hotels Resorts and Palares New Inventory
Slide 15: Taj Group Inventory
Taj Group Inventory 125 118 112 107 103 99 88 76 82 62 66 15
Slide 16: Hotels Opened in 2013/14
Hotels Opened in 2013/14 Hotel Company Rooms Vivanta by Taj Vivanta by Taj, Surajkund, NCR ( Launched) Management Contract 287 Gateway Gateway, Hubli ( Launched) Management Contract 92 Gateway OMR, Chennai ( Launched) Management Contract 193 Gateway, Kolkata ( Launched) Management Contract 200 Ginge
Slide 17: Upcoming Development Financial Year 2014/15
Upcoming Development Financial Year 2014/15 Hotel Company Rooms Taj Imperial Club by Taj, Tardeo, Mumbai Management Contract 9 Taj Downtown, Dubai Management Contract 296 Taj Airport Hotel, Terminal 1C, Mumbai Taj GVK 283 Vivanta Vivanta by Taj, Dwarka, New Delhi IHCL 250 Vivanta by Taj, Guwahati IH
Slide 18: Upcoming Development Financial Year 2014/15
Upcoming Development Financial Year 2014/15 Hotel Company Rooms Gateway (..contd.) Gateway, Kolhapur Management Contract 123 Gateway, Nashik (Expansion) PIEM 78 Gateway, Corbett Management Contract 52 Ginger Hotels Ginger, Gurgaon Sector 29 Roots Corporation Ltd 40 Ginger, Amritsar Management Contra
Slide 19: Sales and Marketing Initiatives
Sales and Marketing Initiatives 19
Slide 20: Taj - The Breakaway Brand
Taj - The Breakaway Brand Rising, Defining and Dominating Brand Asset Valuator 2013 Taj Ranked #1 Breakaway Brand 20
Slide 21: St James Court, A Taj Hotel, London Rebranding and Launch
St James Court, A Taj Hotel, London Rebranding and Launch Migrated both London hotels to Luxury Brand Standards and Service Experience Rebranded and set up Brand Framework to maintain consistency across the globe 21
Slide 22: St James Court, A Taj Hotel, London Collateral and Communication
St James Court, A Taj Hotel, London Collateral and Communication 22
Slide 23: St James Court, A Taj Hotel, London Press Coverage
St James Court, A Taj Hotel, London Press Coverage 23
Slide 24: The Gateway Hotel EM Bypass Kolkata Launch Event and Activation
The Gateway Hotel EM Bypass Kolkata Launch Event and Activation The Gateway Hotels & Resorts announced the launch of The Gateway Hotel EM Bypass Kolkata, first Gateway branded hotel in Kolkata Launch Activities comprised of : Customer launch with key influencers unique and highly successful experien
Slide 25: The Gateway Hotel EM Bypass Kolkata Press Coverage
The Gateway Hotel EM Bypass Kolkata Press Coverage Publication: The Statesman Publication: Business Standard Publication: DNA Publication: Financial Express 25 25 Publication: The Telegraph
Slide 26: Vivanta by Taj Surajkund NCR Launch Event and Activation
Vivanta by Taj Surajkund NCR Launch Event and Activation The brand launched the reflagged Claridges as Vivanta by Taj Surajkund NCR. Positioned as a city resort and an alternative entry into the Golden Triangle Brand experiences and motifs curated around weddings and conferences enhancing the MICE p
Slide 27: Vivanta by Taj Surajkund NCR Press Coverage
Vivanta by Taj Surajkund NCR Press Coverage Financial Express The Economic Times Wedding Vows Business World Hindu Business Line Business Standard – Q&A 27 27 Indian Express
Slide 28: Taj Samudra Renovation and Relaunch
Taj Samudra Renovation and Relaunch 28 28
Slide 29: Taj Samudra Renovation and Relaunch
Taj Samudra Renovation and Relaunch Post a USD 20 M renovation, Taj Samudra opened for CHOGM on 1st November. Reinvented and reinforced guest and service experiences Official launch event in December 2013 attended by all key corporate, media, influencers and key trade Supported by a holistic marketi
Slide 30: Driving Revenues: Taj Holidays Winter Campaign
Driving Revenues Taj Holidays Winter Campaign Advertising in International and India publications Leveraging trade partnerships Airport Outreach 30
Slide 31: Awards and Accolades: Conde Nast Traveller USA Gold List 2014
Awards and Accolades Conde Nast Traveller USA Gold List 2014 31 31
Slide 32: Awards and Accolades: Travel+Leisure India's Top Presidential Suites 2013
Awards and Accolades Travel +Leisure India's Top 25 Presidential Suites 2013 Nizam Suite Rajput Suite Tata Suite 32
Slide 33: Awards and Accolades: T+L World's Best Awards
Awards and Accolades T+L World’s Best Awards 33
Slide 34: Standalone Financial Performance for the Nine Months ended December 31, 2013
Standalone Financial Performance for the Nine Months ended December 31, 2013 34
Slide 35: Standalone Financials
Standalone Financials ` /crores Q3 9M 2013/14 2012/13 2013/14 2012/13 Total Income 571.38 550.65 1395.99 1359.36 EBIDTA 165.28 157.51 281.17 276.95 EBIDTA % 28.93% 28.60% 20.14% 20.37% Profit before Finance Cost & Exceptional Item 135.32 127.02 190.88 183.38 Profit /(Loss) after Finance Costs but be
Slide 36: Profit and Loss Account 9M - 2013/14
Profit and Loss Account 9M - 2013/14 `/Crores 2013/14 2012/13 % Change Net Sales/Income from Operations 1351.79 1320.03 2 Other Operating Income Total Income from Operations 1351.79 1320.03 2 a. Consumption of Raw Materials 127.14 120.06 (6) b. Employee Benefits Expense 348.64 352.49 1 c. License Fe
Slide 37: Turnover 9M - 2013/14
Turnover 9M - 2013/14 ` crores 2013/14 2012/13 % Change Room sales 605.53 615.08 (2) F&B sales 567.49 538.37 5 Other Operating Income 90.28 84.14 7 Management Fees & Reimbursable 88.49 82.44 7 Income from Operations 1,351.79 1,320.03 2 Non – Operating Income 44.20 39.33 12 Total Income 1395.99 1359.
Slide 38: Expenditure
Expenditure Raw Materials Cost – ` 127.14 crores Increase in line with higher F&B revenue for the period. Some cost push due to commodity input cost increase. Employee Benefit Expenses – ` 348.64 Crores Costs controlled on account of various interventions adopted by the Company. License Fees – ` 88.
Slide 39: Expenditure
Expenditure Depreciation & Amortisation – ` 90.29 crores Lower depreciation in select hotels Other Expenditure – ` 425.48 crores Increase in variable costs linked to business, higher marketing & advertisement, repairs & maintenance, BPO costs and other administration spends Finance Costs – ` 75.66 c
Slide 40: Consolidated Financial Performance for the Nine Months ended December 31, 2013
Consolidated Financial Performance for the Nine Months ended December 31, 2013 40
Slide 41: Major Taj Group companies
Major Taj Group companies Subsidiaries Associates Indian Oriental Hotels Ltd Piem Hotels Ltd Lanka Island Resorts Ltd Taj SATS Air Catering Ltd TAL Lanka Hotel PLC Others Tifco Holdings Ltd [Investment Company] Benares Hotels Ltd Joint Ventures Inditravel Pvt Ltd Taj GVK Hotels & Resorts Ltd United
Slide 42: Consolidated Financials 9M – 2013/14
Consolidated Financials 9M – 2013/14 ` crores 2013/14 2012/13 % Change Total Income 3020.96 2774.96 9 EBIDTA 438.88 397.98 10 EBIDTA% 14.52% 14.34% Profit before Finance Cost & Exceptional Item 206.29 180.56 14 Profit/ (Loss) after Finance Costs but before 78.05 55.96 39 Exceptional Item Exceptional
Slide 43: Consolidated Financials 9M - 2013/14
Consolidated Financials 9M - 2013/14 `/ Crores 2013/14 2012/13 % Change Net Sales/Income from Operations 2972.23 2726.84 9 Other Operating Income - - - Total Income from Operations 2972.23 2726.84 9 a. Consumption of Raw Materials 316.05 279.91 (13) b. Employee Benefits Expense 1019.48 947.81 (8) c.
Slide 44: Consolidated Financial Results 9M - 2013/14
Consolidated Financial Results 9M - 2013/14 Key factors influencing the consolidated results are listed below: Domestic Portfolio – Improved operational performance on account of higher turnover and controlled costs International Portfolio – US hotels continued to perform better than last year. Exce
Slide 45: International Hotels
International Hotels Occupancy (%) ARR ($) RevPAR ($) 9M 9M 9M 9M 9M 9M Hotel Name 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 The Pierre, New York 76 66 674 658 511 432 Taj Boston 79 70 286 293 226 204 Campton Place, San 78 77 324 300 251 230 Francisco St. James Court, London (₤) 84 84 203 205
Slide 46: Overview of Taj Group – 9M
Overview of Taj Group – 9M Particulars 2013/14 2012/13 2011/12 2010/11 Number of hotels 125 116 112 108 Rooms Inventory 15,391 14,052 13,606 12,849 Total Revenue ` / crores 4,087 3,702 3,432 3,037 Total Revenue denote arithmetical aggregate of turnover of all hotels/units irrespective of ownership,
Slide 47: Thank you
Hotels Reso and Palaces Thank you
The Indian Hotels Company — 9M FY2014 Earnings Presentation on 6ix