Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q3 FY22 Earnings Presentation
46 slides from Mahindra Holidays & Resorts India's earnings presentation, Feb 3, 2022
Slide 1: Cover letter to stock exchanges
ClubMahindra February 3, 2022 MHRIL/SE/21-22/92 Listing Compliance Department of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block Floor 25, PJ Towers, Bandra-Kuria Complex Dalai Street Bandra E, Mumbai — 400 051 Mumbai — 400 001 Scrip Code
Slide 2: Investor Presentation - Q3 FY22
INDIA'S 't.,N je INDIA'S ".;;Nt INDIA'S BEST '414 f 17 FAVOURITE I I l'f° MOST POPULAR 1:1 i i f COMPANIES TO „.!. RESORT U %/4 RESORT l/1/ WORK FOR - ‘ 41.$ CHAIN 17 ''t‘..!, CHAIN Cr '4 TOP 50, 2021 o' HOLIDAY IQ AWARD 2017 TIMES TRAVEL AWARD 2019 GREAT PLACE Wow TO INSTITUTE Mahindra Holidays & R
Slide 3: Outline
Outline Ac 4 CLubMahindm Executive Summary 03 MHRIL - Unique Hospitality Business 06 - Business Environment 12 - Q3 Et 9M FY22 Performance 16 - Long-Term Value Creation 26 Holiday Club Resorts - Q3 Er 9M FY22 Performance 32 MHRIL Consolidated - Q3 Er 9M FY22 Financials 37 • MHRIL - Historical Perfor
Slide 4: Executive Summary
Ae 4 CLubMahindm Executive Summary CLUB MAHINDRA KANHA MADHYA PRADESH
Slide 5: MHRIL Q3 FY22 Financial Performance surpasses Pre-Pandemic levels
MHRIL Q3 FY22 Financial Performance surpasses Pre-Pandemic levels fir` CLubikiahindra 26% 5% Highest Ever I 55.0 • 48.7 66.5 70.0 38.7 Pre-Covid 44.6 NJ level Pre-Covid Profit Before level Resort Tax (PBT) Income (Rs. Crs) (Rs. Crs) Q3 FY20 Q3 FY21 Q3 FY22 Q3 FY20 Q3 FY21 Q3 FY22 260 bps Rs. 414 Crs
Slide 6: MHRIL Strong Performance Continues in Q3 despite Omicron challenges
'kV MHRIL Strong Performance Continues in Q3 despite Omicron challenges alier OubMattindm Member Base Resort Performance Room Inventory 3,701 80% 123 Member Additions Operational Occupancy Rooms Added this Quarter 262,000+ Rs. 70 Crs 4,356 Highest ever Resort Revenue Cumulative Member Base Total Roo
Slide 7: MHRIL Unique Hospitality Business
Ae 4 CLubMahindm MHRIL Unique Hospitality Business lam • mim • • .Mir -411111. CLUB MAHINDRA VARCA GOA 6
Slide 8: MHRIL - At a Glance
MHRIL - At a Glance Ac 4 CLubMahindm A Strong Our Key Long-Term Industry Outlook Performance Differentiators Value Creation Track Record Well Poised to Drive Domestic • Unique and resilient business • Multiple annuity revenue Key Strategic Initiatives to Leisure Travel Demand model streams Drive Con
Slide 9: Unique and sustainable Vacation Ownership business
Over 25 years, MHRIL has created a unique and sustainable Vacation Ownership business and is the #1 Leisure Hospitality AV( player in the country CLubMahindra MHRIL Vacation Ownership business consists of .. ...with unique competitive advantages Strong economic model and difficult to replicate Mir C
Slide 10: Club Mahindra's Product Portfolio
Club Mahindra's Product Portfolio 11111 Target Consumer 41 'V CLubMahindni Consumer Preferences Couples with Young Children ▪ Cautious explorers Er comfort CMH 25 – 25 years, 7 nights per year Affluent, NCCS A, travelers 30-40 years of age ▪ Plan vacations in advance ▪ Financially secure Er free fro
Slide 11: Unique and Resilient Business Model
Unique and Resilient Business Model AP 4 CLubMahindm r Income From • • I I I • • Admission Fee Resort - FIT Resort - Members Annual Subscription Fee al Interest MI Financing i Recurring Revenue Streams : ASF* , Resort Income Value Creation 1 Upfront Admission fees Built- In Multiple Annuity Streams
Slide 12: Business Model with Large & Growing VO Member Base
MHRIL Business Model is Distinct due to its Large & Growing I VO Member Base with Predictable Occupancies Er Cash 4 CLubMahindm Generation Create a variety of vacation options and Growing experiences through a choice of Inventory destinations, unique properties & accommodation types Growing and Loya
Slide 13: MHRIL Business Environment
A tp 4 CLubMahindm MHRIL Business Environment CLUB MAHINDRA BINSAR UTTARAKHAND 12
Slide 14: Consumer spending indicated clear V-shaped recovery post second Covid-19 wave
In Q3, Consumer spending indicated clear V-shaped recovery post the second Covid-19 wave Aifc ci hmahindra 1 RBI Consumer Confidence demonstrated increasing optimism Private Consumption started to normalize post second wave .Current Situation Index Future Expectations Index Real GDP, QoQ (R) Real PF
Slide 15: Mobility and Travel Sentiment showing positive uptick in Q3
Mobility and Travel Sentiment was showing positive uptick in Q3 jove Oil CI I hiMailirkdr a Google Mobility Trend for Retail Er Recreation had Domestic Airline Passenger Traffic was very strong in improved in Q3 Q3 Retail and Recreation, rolling 7-day average Domestic Passengers (in million) 3 25 -2
Slide 16: Jan'22 surge in Omicron and Delta cases slowed contact intensive sectors
However, in Jan'22, India witnessed a surge in the Omicron and Delta cases, which has slowed down the contact intensive sectors er CI hNtahindra • Mobility restrictions: Weekend lockdowns Er night curfews were imposed by various state governments including Karnataka, Tamil Nadu, Delhi, and others Sp
Slide 17: MHRIL Q3 & 9M FY22 Performance
4 CLubMahindm MHRIL Q3 Et 9M FY22 Performance U11111,1illig -- • • • CLUB MAHINDRA ASHTAMUDI = - - 4.• • - - -• .7 KERALA 16
Slide 18: Strong Business Performance Continued in Q3 FY22
Strong Business Performance Continued in Q3 FY22 AP 4 CLubMahindra , Operational Resilience Financial Resilience E m Occupancy* 1- Resort Revenue Rs. 70 Crs (57% YoY) Member Additions Deferred Revenue Pool Rs. 5,052 Crs r Operating Cash flow r Cash Position Rs. 1,108 Crs 1 Total Room Inventory 4,356
Slide 19: Member Acquisitions grew YoY
Member Acquisitions grew YoY Ae E 13% 1 4 CLubMahindm Nos. 4,789 Robust Demand for • 3,943 3,701 Vacation Ownership 3,291 reflected in Member 2,681 Additions. 1,270 I 1,062 ea Cumulative member base is 2,62,250. 01 FY21 02 FY21 03 FY21 04 FY21 01 FY22 02 FY22 03 FY22 • Member additions witnessed ste
Slide 20: Highest Ever Resort Revenues Driven By Higher Occupancies
Highest Ever Resort Revenues Driven By Higher Occupancies ff & Increased Room Inventory ..d•we 4 CLubMahindm 85% 80% 75% 73% Resort Occupancy* 51% (%) 30% 0% 01 FY21 02 FY21 03 FY21 04 FY21 I 01 FY22 02 FY22 03 FY22 57% 70.0 53.1 50.8 44.6 Resort Income (Rs. Crs) 15.1 0 6.7 01 FY21 02 FY21 03 FY21 0
Slide 21: Q3 FY22 - Income, PBT & EBITDA surpassed pre-Covid levels
Q3 FY22- Income, PBT & EBITDA surpassed pre-Covid levels A tp Rs. Crs Total Income Q3 FY22 vs Q3 FY20 (pre-Covid) EBITDA PBT 4 CLubMahindm 7% 21% 1 26% • 1 55 285 267 85 49 83 246 15 70 39 VO 19 66 45 Resorts 186 182 197 Others Q3 FY20 Q3 FY21 Q3 FY22 Q3 FY20 Q3 FY21 Q3 FY22 Q3 FY20 Q3 FY21 Q3 FY22
Slide 22: 9M FY22 - EBITDA & PBT surpassed pre-pandemic levels
9M FY22 - EBITDA & PBT surpassed pre-pandemic levels and grew YoY 9M FY22 vs 9M FY20 (pre-Covid) Rs. Crs Total Income 1 EBITDA PBT 4 CLubMahindm -2% 35% V 1 52% 1 781 • 767 247 144 654 223 137 45 O 17 136 183 VO 95 Resorts 557 Others 9M FY20 9M FY21 9M FY22 9M FY20 9M FY21 9M FY22 9M FY20 9M FY21 9M
Slide 23: Q3 FY22 - Total Income growth of 16% YoY
Q3 FY22 - Total Income growth of 16% YoY Ae Quarter ended Nine months ended 4CLubMahindm Total Income (Rs. Lakhs) Q3 FY22 Q3 FY21 YoY Gr 9M FY22 9M FY21 YoY Gr Income from Vacation Ownership 10,234 8,878 15.3% 28,939 25,638 12.9% ASF 7,775 7,500 3.7% 22,900 22,334 2.5% Interest & Others 1,713 1,820
Slide 24: P&L - Q3 & 9M FY22 PBT higher than pre-Covid period
P&L - Q3 8- 9M FY22 PBT higher than pre-Covid period Ae Quarter end Nine months ended 4 Pre-Covid 19 CLubMahindm Particulars (Rs. Lakhs) Q3 FY22 Q3 FY21 YoY Gr 9M FY22 9M FY21 YoY Gr Q3 FY20 9M FY20 Revenue from Operations 26,726 22,657 18.0% 70,165 58,937 19.1% 25,224 73,633 Non-Operating Income 1,
Slide 25: Balance Sheet and Liquidity Growing from Strength to Strength
Balance Sheet and Liquidity Growing from Strength to Strength Ac 4 CLubMahindm Rs. 5,052 Cr Rs. 1,108 Cr Rs. 2,266 Cr Zero debt Q3 addition of Along with Includes Land Credit Rating for Rs. 40 Cr to the Receivables of Rs. worth Rs. 1,233 Cr Long-term pool, highest 1,135 Cr, total and facilities Affi
Slide 26: Snapshot of Balance Sheet
Snapshot of Balance Sheet In Rs. Lakhs Ac ASSETS Description As on 31st Dec 2021 As on 31st March 2021 4 CLubMahindm Property, Plant and Equipment 2,26,560 2,14,285 Right of Use Asset (IND AS 116) 25,229 15,412 Trade receivables 1,13,530 1,20,479 Cash and cash equivalents (regrouped) 1,10,798 93,967
Slide 27: MHRIL Long Term Value Creation
CLUB MAHINDRA KANDAGHAT HIMACHAL PRADESH dlOc 4 CLubMahindm MHRIL Long Term Value Creation 26
Slide 28: Strategy to Drive Consistent Growth
Strategy to Drive Consistent Growth AP 4 CLubMahindm Mi. Accelerate Room Inventory Additions Grow Cumulative Member Base ) ( Improve Operational Efficiencies Strengthen Brand ( Deliver Superlative Customer Experience Digital 11 Enablers Pull Transformation Enablers II 27
Slide 29: Robust Inventory Addition
Robust Inventory Addition A tp Total Room Inventory 4 ClubMahindra in Nos 5,500+ 4,197 3,595 3,732 3,472 3,152 2,816 2,879 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Estimated L Room inventory additions are planned to achieve 5,500+ room units in the next 3 years 28
Slide 30: Creating Superlative & Innovative Customer Experience
Creating Superlative Et Innovative Customer Experience Ac 4 aubMahindra Kebab and Biryani Festival Rajasthani Theme Pottery Making -111 .10 C {r bappv hours for your nistelbuds_ It!kir 1 4P 4112 Yoga Session Celebration Platter New Café Brand - Unwind Kids Magic Show Rocksport Happy Hub Experiences
Slide 31: Accelerate Member Additions
Accelerate Member Additions 4 CLubMahindm Scale up Member acquisition through Referrals, Digital and Alliances Use a multi-product portfolio to acquire members based on life- stage segmentation (Go Zest, CMH-25 and Bliss) P Scale up resort onsite sales teams to acquire new members and upgrade existi
Slide 32: Strengthening Brand Pull through Targeted Marketing Campaigns
Strengthening Brand Pull through Targeted Marketing Campaigns AViip C.i UbMailirldra Jaana Kahan Hai" - Regional Focused Campaigns "We cover India, You A National School painting Competition in Discover India" 4"", ClubMahindra Association with "The Hindu" T - NDU GROUP EXPREN YOUR Integrated Market
Slide 33: Holiday Club Resorts
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Slide 34: Holiday Club Resorts - The Largest European Timeshare Company
Holiday Club Resorts - The Largest European Timeshare Company 'fir CI hNtahindr a • 33 Timeshare Destinations - 25 in Finland, 2 in Sweden, 6 in Spain (5 in Gran Canary, 1 in Costa del Sol) • 60,000+ Timeshare owners • 8 large Spa resorts in Finland, 1 in Sweden • 1,200+ Hotel Rooms • 1.3 million vi
Slide 35: HCR Revenue grew by 9% YoY
NCR Revenue grew by 9% YoY Ac CI 1 hNtahindr a • In Nov'21, a rise in Omicron infections and related Particulars Quarter ended Nine months ended restrictions started impacting business, specifically (Euro Mn) Q3 FY22 Q3 FY21 9M FY22 9M FY21 in Finland, with the situation worsening in Dec'21 Timeshar
Slide 36: HCR PBT
HCR PBT clubmat Particulars (Euro Mn) Quarter ended Nine months ended • As the infections increased, multiple restrictions were imposed leading to Q3 FY22 Q3 FY21 9M FY22 9M FY21 operations being impacted. Turnover 33.41 30.56 88.89 75.92 Operating Profit / (Loss) (1.35) (1.57) (0.92) (4.76) • Despi
Slide 37: HCR Outlook
HCR Outlook Ac 4 CLubMahindm • Covid related restrictions for restaurants, spa, sports, and indoor activities are being relaxed, in time for the Winter holiday season which starts in mid-February. • The 2 Spa Resorts (out of 9) that were shut since mid-Jan'22 due to various restrictions on restauran
Slide 38: MHRIL Consolidated Q3 & 9M FY22 Financials
CLUB MAHINDRA POOVAR KERALA olf Clobivtahincira MHRIL Consolidated Q3 & 9M FY22 Financials 37
Slide 39: Segment Financials
Segment Financials Segment Revenue (Rs. Lakhs) Quarter ended Q3 FY22 Q3 FY21 Nine months ended 9M FY22 9M FY21 4 CLubMahindm - MHRIL 28,428 24,764 77,441 65,399 - HCRO 29,204 26,836 81,348 69,571 Total Segment Revenue 57,632 51,600 1,58,789 1,34,970 - Others 813 (96) 813 136 Total Income 58,445 51,5
Slide 40: 9M FY22 - Profitability improved significantly despite Covid headwinds
9M FY22 - Profitability improved significantly despite Covid headwinds l ir Quarter ended Nine months ended 4 CLubMahindm Particulars (Rs. Lakhs) Q3 FY22 Q3 FY21 YoY % 9M FY22 9M FY21 YoY % Income from Operations 55,344 48,915 1,47,072 1,26,455 Non-Operating Revenue 3,101 2,589 12,530 8,651 Total In
Slide 41: MHRIL Historical Performance
CLUB MAHINDRA MASHOBRA HIMACHAL PRADESH Ae 4 CLubMahindm MHRIL Historical Performance •-gc ••• I :E 1 40
Slide 42: Large base of committed members continues to grow
Large base of committed members continues to grow Ac 4 CLubMahindm Fully paid members crossed 200,000+ in FY21 (CAGR of 8% over the FY16-21 period) CAGR Total Member Base 1,99,617 2,18,138 2,35,792 2,43,574* 2,58,336 2,54,431# 5.0% 1,91,615 2,08,967 Fi 1,77,277 1,62,875 1,45,960 1,41,947 Fully Paid
Slide 43: Investment in Room Inventory continues with High Occupancy Levels
Investment in Room Inventory continues with High Ae Occupancy Levels and a growing Cash position 4 CiubMahindtlt Occupancy L 81% I 85% L 85% 1,200 4,000 1,000 3,472 800 3,500 600 3,000 2,879 _ 332 331 400 266 301 267 265 2,500 -um 200 83 116 2,000 FY16 FY17 FY18 FY19 FY20 FY21 '3 Occupancy (%) Cash
Slide 44: A Strong and Consistent Performance Track Record
A Strong and Consistent Performance Track Record Oil CI .1NM.ailirLdr a Total Revenue CAGR of 10% (FY15-19) PBT CAGR of 23% (FY15-19); PBT CAGR of 30% (FY19-21) In Crs In Crs 1,170 1,090 1,094 I 0 Mbl= =AN 109 1,037 241 964 89 963 ■ 93 60 12 909* 808 67 190 220 209 87 12 173 64 228 132 210 240 104 2
Slide 45: Growing Profit Margins
Growing Profit Margins Ae 4 CLubMahindm EBITDA Margin PBT Margin 32% 21% 18% 19% 19% 25% 24% 25% 17% 23% 13% 12% 16% 10% FY15 FY16 FY17 FY18 FY19 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 FY19 FY20 FY21 IND AS 18 IND AS 115 IND AS 115 Er 116 IND AS 18 IND AS 115 IND AS 115 £x116 PAT Margin 14% 13% 12%
Slide 46: Thank You
CLUB MAHINDRA MANALI HIMACHAL PRADESH CLubMattincha Thank You For further enquiries, please contact: Investor Relations Officer Mahindra Holidays Er Resorts India Ltd. Email: investors@mahindraholidays.com 45
Mahindra Holidays & Resorts India — Q3 FY22 Earnings Presentation on 6ix