Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q2 FY20 Earnings Presentation
69 slides from Mahindra Holidays & Resorts India's earnings presentation, Nov 4, 2019
Slide 1: Mahindra Holidays & Resorts India Limited Q2 FY20 Investor Presentation
ClubMahindra November 4, 2019 MHRIL/SE/ 2019-20/92 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-Kurla Complex Dalai Street Bandra (E), Mumbai - 400 051 Mumbai — 400 001 Scrip
Slide 2: Operating Performance
Slide 3: Forward looking statements disclaimer
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 at this time and our view
Slide 4: Contents
v Qe. Contents Unique Leadership Impact of Q2 FY20 Business Model Position in Transition to Results Vacation IND AS 115 & Update Ownership 116
Slide 5: Business Model
Business Model Club Mahindra (CMH 25) Flagship Product Offering Target Profile of CMH 25 Member Product Portfolio Strategic Priorities Strengthen & Leverage Grow Member Base Brand Bliss for CMH 25 Create Marquee resorts in 50+ year unexplored destinations Member Engagement Age group Drive Operationa
Slide 6: Sales Network and Revenue & Cost Model
Sales Network and Revenue & Cost Model Sales Network Cost Model • 124 branch offices, sales offices & channel partners • ASF funds maintenance, renovation of resorts & • Leads generated through Digital route, Referrals, member servicing Alliances, On-ground Events/Activities, Campaigns • Share of pu
Slide 7: Unique Business Model
Unique Business Model 6
Slide 8: Unique Business Model
Unique Business Model Zero Debt Status Unique Consistently High Strong Balance Sheet Business Occupancy Model 7
Slide 9: Unique Business Model - Strong Balance Sheet
Unique Business Model - Strong Balance Sheet Deferred Strong Cash Receivables Strong Asset Revenue Position Base Rs. 5,412 Cr Rs. 675 Cr Rs. 1,678 Cr Rs. 1,845 Cr* Income which Organic Growth Opportunity for 61 Resorts will be can be met Inorganic Includes Land recognized over without relying growth
Slide 10: Unique Business Model - Consistently High Occupancy
Unique Business Model - Consistently High Occupancy 4,000 95% 85% 85% 83%* 83% ** 82% 3,700 81% 3,595 3,609 3,472 75% 3,400 3,152 55% 3,100 2,879 2,816 35% 2,800 2,500 15% FY15 FY16 FY17 FY18 FY19 H1 FY20 Room Inventory (Units) Occupancy % *Low Occupancy due to unprecedented rains/floods in Kerala &
Slide 11: Leadership Position in Vacation Ownership
Leadership Position in Vacation Ownership 10
Slide 12: Leadership Position in Vacation Ownership
Leadership Position in Vacation Ownership 2.51 Lakh+ Member Choice of 61 fully base Trusted Brand serviced resorts for Track record of over Members two decades Significant Recurring Income Member Engagement streams/Revenue Visibility 11
Slide 13: Resort Diversity
Resort Diversity Hill Stations Beaches Backwaters ▪ Manali, Shimla, Naldhera, Kandaghat ▪ Varca, Emerald Palms, Acacia Palms - ▪ Ashtamudi Goa ▪ Kumarakom ▪ Dharamshala, Kanatal, Binsar ▪ Cherai ▪ Poovar ▪ Mussorie, Naukuchiatal, Srinagar ▪ Pondicherry ▪ Allepey ▪ Munnar, Ooty, Kodaikanal, Coorg, Ye
Slide 14: Member Engagement
Member Engagement Dreamscapes Heart-to-Heart Curated Vacations Exchange Program • • Festivals & theme-based • Creating choice of Wide variety of in-city • In-city meets include experiences especially vacation experiences for destinations for members for leisure & edutainment curated for members memb
Slide 15: Transition to IND AS 115 & 116
Transition to IND AS 115 & 116 14
Slide 16: Transition to IND AS 115 – Impact on Revenue & Cost
Transition to IND AS 115 – Impact on Revenue & Cost Ind AS VO Income Ind AS VO Income 18 115 60% non refundable admission fee Recognized over the tenure of recognized upfront, 40% of Entitlement Fee membership deferred over tenure of membership Ind AS Ind AS Cost 115 Cost 18 Direct Costs are charged
Slide 17: Transition to IND AS 115 – Key Takeaways
Transition to IND AS 115 – Key Takeaways ▪ Income recognized equally over the tenure of membership (4% per year for 25 year product) as against 60% upfront in AS 18 ▪ Only incremental costs to obtain the membership are amortized over the tenure of membership ▪ Unit economics remains the same over th
Slide 18: Transition to IND AS 116 – Key Takeaways
Transition to IND AS 116 – Key Takeaways • The Ministry of Corporate Affairs (MCA) vide notification dated March 30, 2019 has made Ind-AS 116 "Leases" (Ind-AS 116) applicable w.e.f. April 1, 2019. • The Company has applied the modified retrospective approach as per para C5(b) of Ind-AS 116 to existi
Slide 19: Member Engagement
Slide 20: Q2 FY20 Performance
Q2 FY20 Performance IND AS 115 & 116 Membership Total Base Income Member Addition Total Income Margin Occupancy 3,905 Levels Rs. 250 Cr Occupancy PBT Margin 12.4% 74.4%* YOY growth 11.1% 90 bps YOY growth *Low Occupancy due to unprecedented rains/floods in Himachal Pradesh, Uttarakhand, Maharashtra,
Slide 21: H1 FY20 Performance
H1 FY20 Performance IND AS 115 & 116 Membership Total Base Income Member Addition Total Income 8,276 Occupancy Rs. 514 Cr Margin Levels Occupancy 10.8% PBT Margin YOY growth 83.0% 10.9% 140 bps YOY growth 20
Slide 22: Cumulative Member Base
Cumulative Member Base 2,51,424* 2,44,005 2,25,635 2,07,561 1,90,859 1,75,693 Q2 FY15 Q2 FY16 Q2 FY17 Q2 FY18 Q2 FY19 Q2 FY20 * Net of one-off cancellation of 9,556 overdue members, in Q4 FY19. 21
Slide 23: Occupancy Trend
Occupancy Trend Occupancy Trend 80% 81% 76%* 76% 75% 74%** Q2 FY15 Q2 FY16 Q2 FY17 Q2 FY18 Q2 FY19 Q2 FY20 *Low Occupancy due to unprecedented rains/floods in Kerala & Coorg. **Low Occupancy due to unprecedented rains/floods in Himachal Pradesh, Uttarakhand, Maharashtra, Kerala & Coorg. 22
Slide 24: Our growing International presence
Our growing International presence 48 destinations & growing…. UAE & Asia – 6 destinations Europe & US – 42 destinations •Bangkok -1 •Finland - 25 •Kuala Lumpur -1 •Sweden – 2 •Singapore -1 •Spain - 6 •Srilanka -1 •Orlando – 7 •Dubai - 1 • Las Vegas - 2 •Bhutan - 1 23
Slide 25: Slide 25
Slide 26: Theme Activities at Resorts
Theme Activities at Resorts Ocean Theme at Village Theme at Emerald Palms Varca Grand Mela theme Street food theme Monsoon Camp at all at Shimla at Kandaghat Resorts
Slide 27: World Family Day 2019
World Family Day 2019 Multi-media association which aligns with our brand mission of ‘Good Living, Happy Families’ Using Origami (a Japanese art form) to make families learn together, laugh together and bond together Media Innovation Resort & Mall Activation Social Media & PR TOI Front Page that fam
Slide 28: Brand Campaigns
Brand Campaigns Resort-led print ads Innovative hoardings A film that showcases our experiences and our offers
Slide 29: Historical Financial Performance Ind AS 18
Slide 30: Income Trend
Income Trend IND AS 18 VO Income Resort Income Rs. Crs +6% Rs. Crs +14% 583 209 220 539 545 557 190 173 444 132 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 ASF Income Interest & Others Rs. Crs Rs. Crs +11% +14% 109 240 89 93 210 217 173 64 67 156 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY
Slide 31: Performance Trend
Performance Trend IND AS 18 Total Income EBITDA Margin PBT Margin Rs. Crs 21% +10% 1170 25% 25% 1090 1094 24% 24% 24% 19% 964 18% 808 17% 16% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 30
Slide 32: Profits
Profits IND AS 18 Rs. Crs PBT Rs. Crs PAT 156 241 +19% +23% 131 134 201 207 114 168 79 105 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 31
Slide 33: Cash from Operations continue to grow
Cash from Operations continue to grow Rs Crs 400 350 332 301 300 266 Rs. 1,015 Crs 250 200 Cumulative operating Cash since FY16 150 116 100 50 0 FY16 FY17 FY18 FY19 32
Slide 34: Strong Balance Sheet Position
Strong Balance Sheet Position Rs Crs 3,986 1,129 Land Assets Revalued 2,752 during Sep’18 & stands 2,539 167 2,251 161 664 at Rs. 1,129 Cr as on 1,865 157 717 682 Mar’19 107 745 666 1,621 Cash growing at a 1,396 1,434 healthy rate 1,265 1,066 470 572 26 26 84 84 265 2015 2016 2017 2018 FY19 Ind AS 1
Slide 35: Financial Performance - Standalone
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Slide 36: Q2 Income Trend
Q2 Income Trend IND AS 115 & 116 VO Income Resort Income Rs. Crs Rs. Crs 88 +16% +4% 76 44 42 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 ASF Income Interest & Others Rs. Crs Rs. Crs 72 +11% 65 29 +13% 26 Q2 FY19 Q1 FY20 Q2 FY19 Q2 FY20 35
Slide 37: Q2 Performance Trend
Q2 Performance Trend IND AS 115 & 116 Total Income EBITDA Margin* PBT Margin* Rs. Crs 22.5% +12% 250 16.1% 11.1% 222 10.2% Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 *FY20 numbers are post IND AS 116 impact 36
Slide 38: Q2 Profit Growth
Q2 Profit Growth IND AS 115 & 116 Rs. Crs PBT* Rs. Crs PAT* 28 +23% 23 18 +24% 14 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 *FY20 numbers are post IND AS 116 impact 37
Slide 39: Income Break Up – Q2 FY'20
Income Break Up – Q2 FY’20 Rs. In Lakhs Growth Total Income Q2 FY20 Q2 FY19 YoY Income from Vacation Ownership 8,803 7,604 15.8% ASF 7,222 6,506 11.0% Resort Income 4,408 4,247 3.8% Room 725 793 -8.7% F&B 2,882 2,681 7.5% Holiday Activity & Others 801 773 3.6% Interest & Others 2,921 2,583 13.1% Non
Slide 40: Impact of Ind AS 116 – Standalone Q2 FY'20
Impact of Ind AS 116 – Standalone Q2 FY’20 (Rs. in lakhs) Standalone (Unaudited) Quarter ended Quarter ended September 30, 2019 September Sl. No Particulars 30,2018 Amount without Amount without Impact of Ind AS As reported adoption of Ind adoption of Ind 116 AS 116 AS 116 1. Profit prior to Rent, F
Slide 41: Profit & Loss Statement – Q2 FY'20
Profit & Loss Statement – Q2 FY’20 Rs. In Lakhs As reported (With impact of IND AS 116) Without impact of IND AS 116 Particulars Q2 FY20 Q2 FY19 YoY Gr Q2 FY20 Q2 FY19 YoY Gr Revenue from Operations 23,354 20,940 11.5% 23,354 20,940 11.5% Non-Operating Income 1,608 1,271 26.5% 1,608 1,271 26.5% Tota
Slide 42: Financial Performance H1 FY20 IND AS 116
Financial Performance IND AS 116 Hi FY20
Slide 43: H1 Income Trend
H1 Income Trend IND AS 115 & 116 VO Income Resort Income Rs. In Crs +12% 172 Rs. In Crs +6% 113 154 107 H1 FY19 H1 FY20 H1 FY19 H1 FY20 ASF Income Interest & Others Rs. In Crs Rs. In Crs +13% 141 125 -2% 59 58 H1 FY19 H1 FY20 H1 FY19 H1 FY20 42
Slide 44: H1 Performance Trend
H1 Performance Trend IND AS 115 & 116 Total Income EBITDA Margin* PBT Margin* Rs. In Crs 514 +11% 22.0% 464 15.2% 10.9% 9.5% H1 FY19 H1 FY20 H1 FY19 H1 FY20 H1 FY19 H1 FY20 *FY20 numbers are post IND AS 116 impact 43
Slide 45: H1 Profit Growth
H1 Profit Growth IND AS 115 & 116 Rs. In Crs PBT* Rs. In Crs PAT* 56 +27% 36 +28% 44 28 H1 FY19 H1 FY20 H1 FY19 H1 FY20 *FY20 numbers are post IND AS 116 impact 44
Slide 46: Income Break Up – H1 FY'20
Income Break Up – H1 FY’20 Rs. In Lakhs Growth Total Income H1 FY20 H1 FY19 YoY Income from Vacation Ownership 17,247 15,357 12.3% ASF 14,106 12,528 12.6% Resort Income 11,294 10,651 6.0% Room 2,258 2,187 3.3% F&B 7,046 6,555 7.5% Holiday Activity & Others 1,990 1,909 4.2% Interest & Others 5,762 5,
Slide 47: Impact of Ind AS 116 – Standalone H1 FY'20
Impact of Ind AS 116 – Standalone H1 FY’20 (Rs. in lakhs) Standalone (Unaudited) Half year ended Half year ended September 30, 2019 September Sl. No Particulars 30,2018 Amount without Amount without Impact of Ind AS As reported adoption of Ind adoption of Ind 116 AS 116 AS 116 1. Profit prior to Ren
Slide 48: Profit & Loss Statement – H1 FY'20
Profit & Loss Statement – H1 FY’20 Rs. In Lakhs As reported (With impact of IND AS 116) Without impact of IND AS 116 Particulars H1 FY20 H1 FY19 YoY Gr H1 FY20 H1 FY19 YoY Gr Revenue from Operations 48,409 44,393 9.0% 48,409 44,393 9.0% Non-Operating Income 3,035 2,050 48.0% 3,035 2,050 48.0% Total
Slide 49: Summarized Balance Sheet
Summarized Balance Sheet Rs. in Lakhs Description As at 30 Sep 2019 As at 31 March 2019 ASSETS Property, Plant & Equipment 2,04,044 2,02,146 Right of Use Asset (IND AS 116) 17,349 - Trade receivables 1,67,837 1,62,091 Cash and cash equivalents 67,527 57,193 Deferred Tax (Net) 43,601 42,555 Other Ass
Slide 50: HCRO We Create and Sell Dream Holidays
HCRO We Create and Sell Dream Holidays
Slide 51: Key Facts
Key Facts ▪ Holiday Club Resorts is the largest vacation ownership company in Europe and the leading leisure travel company in Finland ▪ A total of 33 resorts - 25 in Finland, 2 in Sweden, 6 in Spain (5 in Gran Canary, 1 in Costa del Sol) ▪ Mahindra Holidays owns 96.47% of HCR Oy ▪ ~62,000 families
Slide 52: Core Competencies
Core Competencies ◼ Spa hotel business ◼ Marketing and sales ◼ Resort management ◼ Design of holiday houses and apartments
Slide 53: Figures of the Resorts
Figures of the Resorts Spa Hotels 8 Other Holiday Resorts 25 Hotel Rooms 1,149 Timeshare apartments 1,560 Villas Apartments 600 Restaurants & Bars 44 Aqua Parks with Saunas 8 Spa Treatment Departments 8 Golf Courses 4 Angry Birds Activity Parks 4 Shopping Centre 1
Slide 54: Resort Map
Resort Map one | ‘apa ail iw Abartnient A se g Apartments et Spa hotel — + apartments Holiday Club pp.kk.www
Slide 55: Northern lights in winter
Northern lights in winter https://www.youtube.com/watch?v=Lc3FxNXjBs0
Slide 56: Midnight sun in summer
Midnight sun in summer
Slide 57: Nature - Clean air and thousands of lakes
Nature - Clean air and thousands of lakes
Slide 58: The real Santa lives in Finland
The real Santa lives in Finland
Slide 59: Financial Performance Holiday Club
Financial Performance Holiday Club
Slide 60: Turnover : Q2 2019-20
Turnover : Q2 2019-20 Turnover by Business Areas* Euro Mn HCRO Particulars Q2 FY 20 Q2 FY 19 H1 FY 20 H1 FY 19 Timeshare 10.89 11.77 20.32 20.67 Spa Hotels 18.60 16.69 34.07 31.20 Renting 1.94 1.70 3.44 3.10 Real Estate Management 1.47 1.41 2.97 2.87 Villas 5.14 5.77 12.46 8.76 Other Sales 0.49 0.53
Slide 61: P&L Q2 2019-2020
P&L Q2 2019-2020 Euro Mn Particulars Q2 FY 20 Q2 FY 19 H1 FY 20 H1 FY 19 Turnover 40.43 39.60 77.43 70.53 Operating Profit 3.83 3.03 3.18 -0.05 Less: Depreciations and impairments 1.44 1.42 2.89 2.85 (Add)/Less Financial (income) and expenses -0.14 -0.33 -0.41 -0.60 Profit before Tax 2.25 1.28 -0.12
Slide 62: COMMENTS Q2 FY19-20
COMMENTS Q2 FY19-20 ❑ HCRO has earned a revenue of 77.43 m€ as compared to 70.53 m€ LY in H1 ▪ Finland turnover increased by 16% to 64.2 m€ backed by high occupancy and growth in Spa hotels revenue by 10% at 30.1 m€ compared to previous year ▪ Highest occupancy at 74% in Finland Spa hotels. ▪ Overal
Slide 63: Financial Performance- Consolidated
Slide 64: Segment Revenue
Segment Revenue IND AS 115 & 116 Rs. In Lakhs Particulars Q2 FY'20 Q2 FY'19 H1 FY'20 H1 FY'19 FY 18-19 - MHRIL 25,157 22,562 52,018 47,161 97,636 - HCRO 31,947 30,553 67,651 55,686 1,31,268 Total Segment Revenue 57,104 53,115 1,19,669 1,02,847 2,28,904 - Other Unallocable Revenue 280 173 328 223 662
Slide 65: Segment Profitability (PBT)
Segment Profitability (PBT) IND AS 115 & 116 Rs. In Lakhs Particulars Q2 FY'20 Q2 FY'19 H1 FY'20 H1 FY'19 FY 18-19 - MHRIL 2,611 1,955 5,447 4,054 9,698 - HCRO 958 852 (18) (2,864) 936 Segment Results 3,569 2,807 5,429 1,190 10,634 - Other Unallocable Revenue 63 (1,974) (834) (2,204) (829) Total Seg
Slide 66: Impact of Ind AS 116 – Consolidated Q2 FY'20
Impact of Ind AS 116 – Consolidated Q2 FY’20 (Rs. in lakhs) Consolidated (Unaudited) Quarter ended Quarter ended September 30, 2019 September Sl. No Particulars 30,2018 Amount without Amount without Impact of Ind AS As reported adoption of Ind adoption of Ind 116 AS 116 AS 116 1. Profit prior to Ren
Slide 67: Impact of Ind AS 116 – Consolidated H1 FY'20
Impact of Ind AS 116 – Consolidated H1 FY’20 (Rs. in lakhs) Consolidated (Unaudited) Half year ended Half year ended September 30, 2019 September Sl. No Particulars 30,2018 Amount without Amount without Impact of Ind AS As reported adoption of Ind adoption of Ind 116 AS 116 AS 116 1. Profit prior to
Slide 68: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement IND AS 115 & 116 Rs. In Lakhs Particulars Q2 FY'20 Q2 FY'19 H1 FY'20 H1 FY'19 FY 18-19 Income from Operations 55,567 51,585 1,16,700 1,00,559 2,23,899 Non Operating Revenue 1,817 1,703 3,297 2,511 5,667 Total Income 57,384 53,288 1,19,997 1,03,070 2,29,566 Cost o
Slide 69: Thank You
Mahindra Holidays & Resorts India — Q2 FY20 Earnings Presentation on 6ix