Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — H1 FY2015-16 Earnings Presentation
44 slides from Indian Hotels's earnings presentation, Nov 10, 2015
Slide 1: The Indian Hotels Company Limited Analyst Meet
The Indian Hotels Company Limited Analyst Meet Results for the Half Year ended September 30, 2015 1 November 10, 2015
Slide 2: Disclaimer
Disclaimer These presentations may 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 gu
Slide 3: Presenter Panel
Presenter Panel Rakesh Sarna - Managing Director & CEO Anil P. Goel - Executive Director & CFO Chinmai Sharma – Chief Revenue Officer 3
Slide 4: Outline of Presentation
Outline of Presentation Industry Trends New Inventory – Taj Group Sales & Marketing Initiatives Financial Results - Standalone & Consolidated Treasury Update International Restructuring & Amalgamation 4
Slide 5: Industry Trends: Global outlook
Industry Trends Global outlook International travel and tourism grew by 4% in the period (Jan to Sep) of 2015. Strong growth in Americas (+4%), Asia Pacific (+5%), Europe (+5%), the Middle East (+5%) and llimited data available for Africa points to an estimated (-6%). For 2015, UNWTO forecasts inter
Slide 6: Industry Trends: India Market Overview
Industry Trends India Market Overview H1 2015-16 saw a supply growth of 4.1%, where demand increased by 11.1% over the previous year. (Source: STR Global) Most key cities witnessed an increase in supply in the range of 3% - 7% Healthy demand growth in Pune, Ahmedabad, New Delhi, Gurgaon, Bengaluru a
Slide 7: Foreign Tourist Arrivals in India
Foreign Tourist Arrivals in India 24.00 23.48 In Lakhs 23.19 22.04 22.00 21.54 20.48 20.11 19.69 19.66 20.00 17.86 18.00 16.54 17.46 16.19 16.00 15.02 14.46 14.00 13.19 13.22 13.43 12.35 12.55 12.00 10.00 Jan-Mar Apr- Jun Jul- Sep Oct- Dec 2011 2012 2013 2014 2015 Foreign tourist arrivals in India h
Slide 8: India Hotel Performance – Key cities Apr–Sep 2015-16
India Hotel Performance – Key cities Apr – Sep 2015-16 Supply Demand Scenario - Apr 2015 to Sept 2015 25% 20.7% 20% 18.2% 17.7% 16.4% 16.7% 14.3% 14.5% 15% 13.3% 11.1% 9.6% 9.7% 10.0% 10% 7.2% 6.4% 5.7% 4.8% 5% 4.1% 3.5% 3.3% 3.4% 3.0% 3.4% 2.0%2.5% 0% Supply % Change Demand % Change •There has been
Slide 9: Occupancies % – Year on Year Trend
Occupancies % – Year on Year Trend For half year ended September 2015/16 2014/15 80 71 70 66 65 67 66 66 61 62 60 61 58 59 58 58 60 54 56 56 55 52 53 50 50 47 47 44 40 30 20 10 - India Goa Kolkata Mumbai Pune Ahmedabad New Delhi Gurgaon Jaipur Bengaluru Chennai Hyderabad All Cities , except Kolkata,
Slide 10: ARR – Year on Year Trend
ARR– Year on Year Trend For half year ended September 2015/16 2014/15 8,000 6,834 7,000 6,806 6,017 5,990 5,716 5,971 5,819 6,000 5,474 5,545 5,389 5,011 5,334 5,293 4,901 5,000 4,989 4,081 4,792 4,472 4,357 3,883 3,700 4,000 3,678 3,747 3,785 3,000 2,000 1,000 - India Goa Kolkata Mumbai Pune Ahmeda
Slide 11: Taj Group New Inventory in the pipeline
Taj Group New Inventory in the pipeline 11
Slide 12: Taj Group Inventory
Taj Group Inventory 62 66 76 82 88 99 103 107 112 118 125 131 133 12
Slide 13: Taj Group Inventory Brand Distribution - October 2015
Taj Group Inventory Brand Distribution - October , 2015 Brands Domestic International Total No of Inventory No of Inventory No of Inventory Hotels Hotels Hotels 18 2,996 9 1,821 28 4,817 34 4,778 5 575 39 5,363 32 2,548 1 208 33 2,756 34 3,121 - - 34 3,121 Total 118 13,443 15 2,604 133 16,057 13
Slide 14: Hotels Opened/Opening In 2015/16
Hotels Opened/Opening In 2015/16 Hotel Company Rooms Opened Taj Downtown, Dubai Management Contract 296 Gateway Hotel, Nashik (Expansion) Piem Hotels 78 Gateway Hotel, Hinjewadi, Pune Management Contract 150 Ginger Udayee, Tirupati Roots Corporation 119 3 Hotels 643 To be opened Taj Santacruz Hotel,
Slide 15: Upcoming Development In 2016/17
Upcoming Development In 2016/17 Hotel Company Rooms Vivanta by Taj Vivanta by Taj, Rishikesh Management Contract 70 Vivanta by Taj, Andamans Kaveri Hotels (JV) 50 Gateway Gateway Hotel, Jallundar Management Contract 132 Gateway Hotel , Shimla Management Contract 70 Gateway Hotel , Tirupati Managemen
Slide 16: Sales & Marketing Initiatives
Sales & Marketing Initiatives 16
Slide 17: A more complex environment requiring robust technology platforms
A more complex environment that requires robust technology platforms and skilled resources Critical need for Digital Market Dynamics Platforms and Skilled professionals Advent of New reservation 1 channels B2B and B2C Sales Migration to online channels New online models (OTAs) Metasearch & Ranking w
Slide 18: Building a sustainable and scalable Revenue Platform
Building a sustainable and scalable Revenue Platform: Marketing / Sales / PR Loyalty / Digital Pricing / Distribution Revenue Management and Analytics Operational Efficiency GOP% 18
Slide 19: Taj InnerCircle Relaunch
Taj InnerCircle Relaunch KEY ASPECTS OF THE NEW PROGRAM 19
Slide 20: Digital Transformation
Digital Transformation Internet has become our fastest growing channel and more than 20% of our room revenue now coming from online channels Within internet - Mobile is the fastest growing channel Multiple enhancements made in the last 6 months to booking engine and mobile experience Significant inv
Slide 21: Digital Transformation
Digital Transformation Taj Group Desktop Booked Revenues Taj Group Mobile Booked Revenues Booking Engine Enhancements done in June Mobile Booking Engine Enhancements done in July Desktop site Bookings Mobile Bookings April May June July August Sep April May June July August Sep 2014 2015 2014 2015 S
Slide 22: We plan to serve all platforms for seamless visibility
We plan to serve all platforms to enable seamless visibility for our Guests Tablet Mobile Desktop Night Morning Day Evening 12:00 AM Source: 3:00 AM Google Internal 6:00 AM Data % of each 9:00 AM platform’s traffic 12:00forPM shown hourly one day. 3:00 DoesPM 6:00 PM 9:00 PM not indicate absolute or
Slide 23: Focus on Social Media
Focus on Social Media 17% in followers 22.3% in followers 133% in followers Taj has one of the highest share of voice and a steady growth in positive sentiment 23 Effective campaign and promotion of Taj Inner Circle on social media
Slide 24: Awards & Accolades: Taj Hotels Resorts and Palaces
Awards & Accolades Taj Hotels Resorts and Palaces Awards Taj Hotels Resorts and Palaces featured on the list & of 10Accolades of the World's Best Luxury Hotel Brands by Forbes magazine Named the best Hotel Group in India at the Travel + Leisure India and South Asia’s Best Awards The Taj Mahal Palace
Slide 25: Awards & Accolades: Grand Palaces
Awards & Accolades Grand Palaces Taj Lake Palace, Udaipur, Rambagh Palace, Jaipur and Taj Falaknuma Palace, Hyderabad ranked 6th, 9th and 15th respectively on the list of World's Best Hotels in Asia & the Indian Subcontinent in the Conde Nast Traveller UK Readers' Travel Awards . Umaid Bhawan Palace
Slide 26: Awards & Accolades: Grand Palaces
Awards & Accolades Grand Palaces Taj Falaknuma Palace, Hyderabad was named the Best Heritage Hotel in India at the Travel + Leisure India & South Asia's Best Awards 26
Slide 27: Awards & Accolades: Taj Safaris
Awards & Accolades Taj Safaris Taj Mahua Kothi, Bandhavgarh and Taj Banjaar Tola, Kanha have featured in the category of Best Remote Hotels in The Town & Country Travel 100: The Best Hotels in the World list 27
Slide 28: Standalone Financial Performance for the Half Year ended September 30, 2015
Standalone Financial Performance for the Half Year ended September 30, 2015 28
Slide 29: Profit and Loss Account
Profit and Loss Account Period ended September 30, 2015 Quarter II Half Year `/ crores 2015/16 2014/15 % Change 2015/16 2014/15 % Change Net Sales/Income from Operations 470.35 415.66 13 923.83 813.46 14 Other Operating Income - - - Total Income from Operations 470.35 415.66 13 923.83 813.46 14 Cost
Slide 30: Financials Summary
Financials Summary Period ended September 30, 2015 `/crores Quarter II Half Year Particulars 2015/16 2014/15 2015/16 2014/15 Total Income 505.38 441.10 985.78 850.07 EBITDA 62.67 45.92 130.86 92.82 EBITDA % 12% 10% 13% 11% Profit before Finance Cost & Exceptional Item 32.53 16.42 71.22 33.58 Profit/
Slide 31: IHCL Standalone Balance Sheet Summary
IHCL Standalone Balance Sheet Summary ` / crores September 30, 2015 March 31, 2015 Shareholders’ Funds 2664.90 2615.15 Non- Current Liabilities Long Term Borrowings 2960.93 2898.10 Other Long Term Liabilities 587.91 585.47 Long-term Provisions/ Deferred Tax Liabilities (net) 245.77 218.37 Current Li
Slide 32: Consolidated Financial Performance for the Half Year Ended September 30, 2015
Consolidated Financial Performance for the Half Year Ended September 30, 2015 32
Slide 33: Taj Group Major Companies
Taj Group Major Companies Company Name Effective Company Name Effective Holding Holding % % Subsidiaries Joint Ventures Piem Hotels Ltd 51.57 Taj GVK Hotels & Resorts Ltd 25.52 Taj SATS Air Catering Ltd 51.00 Taj Madras Flight Kitchen Pvt Ltd 50.00 TIFCO Holdings Ltd [Investment Company] 100.00 Taj
Slide 34: IHCL Consolidated - Profit and Loss Account
IHCL Consolidated - Profit and Loss Account Period ended September 30, 2015 Quarter II Half Year `/ crores 2015/16 2014/15 % Change 2015/16 2014/15 % Change Net Sales/Income from Operations 1020.58 937.00 9 2053.50 1874.46 10 Other Operating Income - - - Total Income from Operations 1020.58 937.00 9
Slide 35: IHCL Consolidated - Financials Summary
IHCL Consolidated - Financials Summary Period ended September 30, 2015 `/crores Quarter II Half Year Particulars 2015/16 2014/15 2015/16 2014/15 Total Income 1057.82 958.30 2120.00 1912.68 EBITDA 98.93 36.09 234.71 133.24 EBITDA % 9% 4% 11% 7% Profit/(Loss) before Finance Cost & 22.86 (38.77) 84.69
Slide 36: International Hotels
International Hotels Occupancy (%) ARR ($) RevPAR ($) Hotel Name 2015/16 2014/15 2015/16 2014/15 2015/16 2014/15 The Pierre, New York 77 78 622 626 477 487 Taj Boston 80 81 333 323 267 262 Taj Campton Place, 77 83 345 330 265 275 San Francisco St. James Court, London (₤) 86 83 224 202 193 168 36
Slide 37: Overview of Taj Group
Overview of Taj Group For the half year ended September 30, 2015 Particulars 2015/16 2014/15 2013/14 2012/13 Number of Hotels 133 125 123 115 Rooms Inventory 16,057 15,391 15,089 13,887 `/crores) Total Revenue (` 2,962 2,663 2,464 2,288 Total Revenue denotes the arithmetical aggregate of the turnove
Slide 38: Treasury
Treasury Debt Position – September 2015 `/crores Particulars Standalone Consolidated Gross Debt * 2,297 4,331 Debenture Redemption Premium 562 562 Less : Liquidity (803) (1,104) Net Debt 2,056 3,789 Net Debt/ Equity** 0.56 1.17 Net Debt/ EBITDA*** 4.32 5.50 Post the acquisition of Shares of LEPPL ,
Slide 39: International Restructuring
International Restructuring 39
Slide 40: Rationale and Benefits
Rationale and Benefits Simplified structure with one Apex Holding Company Consolidates value of assets under a single overseas entity Enhances fund raising ability. Value of underlying assets would be appropriately reflected in IHCL’s books Efficiency in debt service due to bigger size of holding co
Slide 41: Schemes of Amalgamation
Hal) Schemes of Amalgamation
Slide 42: Amalgamation IHMS LLC & LEPPL
Amalgamation IHMS LLC & LEPPL On October 19, 2015, the Board of Directors of the company have approved the amalgamation of International Hotel Management Services LLC (formerly known as IHMS Inc.) (IHMS LLC) and Lands End Properties Private Limited (LEPPL), two wholly owned subsidiaries (“transferor
Slide 43: Amalgamation Rationale and Benefits
Amalgamation Rationale and Benefits IHMS LLC Pursuant to the international restructuring exercise , the utility of retaining IHMS LLC as a separate entity is diminished and hence it is sought to be amalgamated with the company. The amalgamation of IHMS LLLC would simplify the overseas holding struct
Slide 44: Thank you
Hotels Reso and Palaces Thank you
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