Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Non-Deal Roadshow (February 2022)
48 slides from Indian Hotels's roadshow presentation, February 2022
Slide 1: Corporate Presentation – Non-Deal Roadshow
Corporate Presentation Non-Deal Roadshow Confidential February 2022
Slide 2: About us
About us One of India’s leading hospitality ecosystem (1) with a legacy of over 120 years Wide portfolio of brands covering the entire hospitality chain with Taj being rated as World’s Strongest Hotel Brand by Brand Finance in 2021 Strong comeback in the financial performance driven by stragility We
Slide 3: Our journey
Our journey @ 1902 The Indian Hotels ‘Company Limited (HCL) is incorporated @ 1903 Launches India's 1 luxury hotel = The Taj Mahal Palace, Mumbaf @ 1970 1° companyto run, Palaces a€hotels with Taj Lake Palace & Rambagh Palace, Jaipur 1974 @ Enters Goa and creates India’s most visited leisure locatio
Slide 4: Our Aspiration
Our Aspiration Iconic and Profitable Hospitality Company Re-imagine Service, Brandscape, Portfolio Re-structure Re-engineer Scale, Simplify, Margins, Technology, Sell People Culture Strong Brand Equity High Customer Engagement Pan-India Footprint Market Leaders in Leisure & Palaces Segment Integrity
Slide 5: Our journey in the recent past
Our journey in the recent past Where Where Where ₹ / crores we we we were landed got to 4,595 4,596 4,123 4,076 4,165 3,013 2,601 1,875 249 370 355 287 354 101 -231 -63 2005/06 2006/07 2007/08 2015/16 2016/17 2017/18 2018/19 2019/20 Revenue PAT 5
Slide 6: Delivering one of the highest Q3 margins in the last 10 years
Delivering one of the highest Q3 margins in the last 10 years Q3 2021/22 shows the results of a strong execution oriented approach leading to a good post Covid recovery and a strong turnaround Revenue and EBITDA for Q3 of respective year (₹/crore) ₹ / crores EBITDA 23.2% 21.9% 20.8% 21.1% 21.5% 23.1
Slide 7: Delivering our promises
Delivering our promises Iconic (1) Portfolio (2) FY2017-18 9M FY2021-22 17% 23% 32% 46% 38% 45% HoldCo Group companies Management contracts Brandscape Growth New rooms signed Close to 70 new hotels signed in 3 years 3,582 3,258 2,146 1,174 1,127 632 468 2015/16 2016/17 2017/18 2018/19 2019/20 2020/2
Slide 8: What differentiates us?
What differentiates us? TAJ SELEQTIONS VIVANTA GINGER a
Slide 9: Visible QoQ recovery, with IHCL outperforming peers
Visible QoQ recovery, with IHCL outperforming peers Robust recovery in rates and occupancies Recovery v/s Pre-Covid (2019/20): IHCL Domestic Hotels (Same store) Average rates Occupancy % (RPD) RevPAR 95% 95% 94% 88% 89% 91% 83% 74% 87% 79% Industry Industry Industry 48% 35% Q1 Q2 Q3 Market leadershi
Slide 10: IHCL's hospitality ecosystem with a wide brand portfolio
IHCL’s hospitality ecosystem with a wide brand portfolio ESTABLISHED BRANDS NEW AND REIMAGINED BRANDS ESTABLISHED BRANDS to be complemented by strengthening of NEW AND REIMAGINED BRANDS, thereby providing a spectrum of offerings to customers 10
Slide 11: Integration of Technology and Digitalization
Integration of Technology and Digitalization I-ZEST Qmin Exclusive food and beverage delivery mobile application Zero-touch services transformation ensuring safety of guests and associates Achieved significant scale since inception Qmin Footprint 16 04 Provides a suite of digital solutions across br
Slide 12: Creating value through asset light growth
Creating value through asset light growth Operational Pipeline Total 2% 17% + = 23% 35% 24% 46% 74% 38% 43% HoldCo Group companies Management contracts 2017/18 2019/20 9M 2021/22 Operational Hotels 145 158 171 Managed Portfolio (1) 32% 46% 46% Management Fees ₹210 cr ₹219 cr ₹158 cr Note: Data as of
Slide 13: Wide reach with a global footprint
Wide reach with a global footprint Pan-India footprint (1) Presence across major international travel destinations (1) Asia Nepal Thimpu Sri Lanka Maldives USA San Francisco Middle East New York Dubai Makkah 29 States & UTs Africa Lusaka 210+ Hotels Cape Town UK London 97 Destinations Collection of
Slide 14: Continued spend optimization driving operating leverage (1/2)
Continued spend optimization driving operating leverage (1/2) Optimization of fixed and operating costs (1) Substantial reduction in staff to room ratio ₹ / crores Staff to room ratio 3,496 163 2.9 2.3 118 2 1.9 1,920 1.5 1.4 1.5 1.5 1.3 1 0.4 0.32 Total operating cost Fixed expenses per month Taj P
Slide 15: Continued spend optimization driving operating leverage (2/2)
Continued spend optimization driving operating leverage (2/2) Structural cost reduction continues Q3 2021/22 v/s Q3 2019/20 (Pre-Covid) 17% 15% 23% Total expenditure Total fixed costs Corporate overheads Note: All numbers include fixed lease costs 15
Slide 16: Balance sheet strengthening with focus on RoCE
Balance sheet strengthening with focus on RoCE Targeted debt reduction through rights issue proceeds RoCE – Standalone (2) Net Debt - ₹/Crores (1) Total Capital Employed ₹ 7,522 cr COVID Impact Current Debt Level 2.58 ₹ 4,223 cr 2.11 1.69 ROCE on 3,110 1,905 ₹ 3,299 cr Operating 1,925 Other Operatin
Slide 17: Experienced management team with a distinguished board oversight
Experienced management team with a distinguished board oversight Distinguished Board Chairman Non-Executive Non-Executive Director Independent Director N. Chandrasekaran Nasser Munjee Non-Executive Non-Executive Independent Director Independent Director Hema Ravichandar Venkataraman Anantharaman Non
Slide 18: Experienced management team with a distinguished board oversight (contd.)
Experienced management team with a distinguished board oversight (contd.) Experienced management team Puneet Chhatwal Managing Director and CEO Recipient of Carlson Fellowship Giridhar Sanjeevi Beejal Desai Suma Venkatesh Rohit Khosla EVP and CFO SVP – Corporate EVP – Real Estate and EVP – Operation
Slide 19: Strong parentage
Strong parentage Shareholding pattern (as of December 31, 2021) 150+ years 1 of legacy Presence in 100+ countries across Retail, 17% Tata Group, 6 continents 2 41% Tata Sons – principal investment holding company and promoter of Operating 30 3 Tata companies companies across 4 FII, 15% US$100bn+ 10
Slide 20: ESG at our core
ESG at our core Environment Implementation of Tata Code of Conduct to ensure ethical and responsible conduct of 78 907,021kl 1,397t 27 business Earth check certified Water recycled Organic waste IHCL hotels powered hotels composed by renewable energy Collaboration with IFC to pilot a project on Soci
Slide 21: Culture rooted in our core values
Culture rooted in our core values INTEGRITY UNITY EXCELLENCE RESPONSIBILITY PIONEERING TRUST AWARENESS JOY 21
Slide 22: Business strategy
Business strategy TA] SELEQTIONS VIVANTA GINGER ama
Slide 23: Our journey: Going from Aspiration to RESET
Our journey : Going from Aspiration to RESET (1) Particulars Aspiration to Execution (2018 to 2020) RESET (2020 till date) Portfolio Growth from 158 hotels in March 2018 to 209 Growth hotels in March 2020 Portfolio grew to 221 in December 2021 Redefined Brandscape. Launch of SeleQtions & Expre
Slide 24: RESET helped us to navigate through the pandemic
RESET helped us to navigate through the pandemic R.E.S.E.T 2020 Initiatives R EVENUE GROWTH E XCELLENCE S PEND OPTIMIZATION E FFECTIVE ASSET MANAGEMENT T HRIFT & FINANCIAL PRUDENCE • Promotion & focus on • Tajness, a commitment • Hotel closures and phased • Lease rental waivers and • Optimization of
Slide 25: Strategic imperatives going forward
Strategic imperatives going forward Revenue Recovery and Enhancement Asset Light Growth • Focus on enhancement of market share • New operating leases (Ginger), mgmt. contracts • Strive for widening the rate premium v/s industry • Incur selective capex on priority strategic projects • Innovative cust
Slide 26: Taj: Iconic and legacy brand
Taj : Iconic and legacy brand Taj Mahal Palace Hotel, Mumbai Taj Lake Palace, Udaipur Taj Falaknuma Palace, Hyderabad Umaid Bhawan Palace, Jodhpur Rambagh Palace, Jaipur 26
Slide 27: Further strengthening the portfolio of key brands
Further strengthening the portfolio of key brands 89 hotels* 24 hotels* 35 hotels* Taj is IHCL’s iconic luxury SeleQtions is a named Vivanta represents a portfolio brand for the most discerning collection of hotels, each of of sophisticated upscale hotels travelers and the World’s which has a distin
Slide 28: Unlocking the potential of new and re-imagined ancillary businesses
Unlocking the potential of new and re-imagined ancillary businesses 84 hotels* 70+ bungalows* 35+ hotels* Ginger is revolutionizing the amã Stays & Trails is India’s first Qmin is IHCL’s culinary and food lean luxe segment and has branded homestay portfolio that delivery platform present in 20 poten
Slide 29: Unlocking the potential of new and re-imagined ancillary businesses (contd.)
Unlocking the potential of new and re-imagined ancillary businesses (contd.) TajSATS is India’s largest airline The Chambers is India’s first Jiva is IHCL’s award-winning catering company and a exclusive business club with wellness brand deeply rooted in market leader in India. It has presence acros
Slide 30: Financial performance
Financial performance TA] SELEQTIONS VIVANTA GINGER ama
Slide 31: Financial snapshot – Q3 2021/22
Financial snapshot – Q3 2021 / 22 ₹ /crores IHCL Standalone IHCL Consolidated 1,134 Total Revenue ↑ 78% 771 ↑ 85% 615 434 344 EBITDA ↑ ₹ 218 Cr 291 ↑ ₹ 307 Cr 73 38 ↑ ₹ 264 Cr 145 ↑ ₹ 258 Cr 109 PBT (119) (148) ↑ ₹ 219 Cr ↑ ₹ 195 Cr 124 76 PAT (95) (119) PY CY Note: Rounded off to the nearest whole
Slide 32: Financial snapshot – 9M 2021/22
Financial snapshot – 9M 2021 / 22 ₹ /crores IHCL Standalone IHCL Consolidated 2,257 1,478 Total 766 Revenue ↑ 93% ↑ 103% 1,113 ↑ ₹ 398 Cr ↑ ₹ 598 Cr 318 EBITDA 293 (280) (105) (136) (335) PBT ↑ ₹ 446 Cr (582) ↑ ₹ 412 Cr (747) (120) (322) PAT ↑ ₹ 355 Cr (475) ↑ ₹ 307 Cr (629) PY CY Note: Rounded off
Slide 33: QoQ revenue and revenue recovery
QoQ revenue and revenue recovery Q3 2021/22 revenue recovery across same hotels @85% vs 19/20, 11pp better than Q2 Domestic hotels (incl. Ginger) – Same store ₹ /crores 71% 89% 33% 80% 2,580 50% 36% 1,210 15% 28% 1,353 849 754 378 157 299 Q1 Q2 Q3 9M International hotels – Same store 56% 74% 59% 811
Slide 34: Revenue and revenue recovery in key cities Q3 2021/22
Revenue and revenue recovery in key cities Q3 2021/22 Domestic hotels revenue (Incl. Ginger) – Same store ₹ /crores 35% 66% 68% 31% 62% 73% 22% 55% 82% 34% 108% 126% 43% 73% 94% 41% 131% 101% 44% 85% 92% 38% 73% 90% 29% 60% 75% 240 163 169 168 117 126 107 90 82 80 80 62 65 58 56 51 41 40 23 23 30 22
Slide 35: IHCL consolidated – EBITDA +ve since July 2021, PAT +ve in Q3
IHCL consolidated – EBITDA +ve since July 2021, PAT +ve in Q3 Total revenue EBITDA ₹ /crores 344 1,134 97 752 38 615 370 324 175 (123) (83) (234) Q1 Q2 Q3 Q1 Q2 Q3 PBT PAT 76 109 (1) (1) (130) (148) (121) (119) (263) (315) (1) (230) (336) (277) (1) (280) Q1 Q2 Q3 Q1 Q2 Q3 CY PY Note: Rounded off to
Slide 36: IHCL standalone – EBITDA +ve since July 2021, PAT +ve in Q3
IHCL standalone – EBITDA +ve since July 2021, PAT +ve in Q3 Total revenue EBITDA ₹ /crores 771 291 481 434 80 73 226 215 117 (38) (78) (140) Q1 Q2 Q3 Q1 Q2 Q3 PBT PAT 145 124 (61) (119) (54) (173) (95) (220) (142) (291) (190) (239) Q1 Q2 Q3 Q1 Q2 Q3 CY PY Note: Rounded off to the nearest whole numbe
Slide 37: Occupancy and ARR trend
Occupancy and ARR trend Domestic hotels - Leisure / Non-Leisure Occupancy % ARR in ₹ 66% 67% 58% 16,446 54% TOTAL EBITDA 11,218 REVENUE 10,112 7,547 30% 5,697 21% 4,551 Leisure Non - Leisure Leisure Non - Leisure Key international geographies Occupancy % ARR in $ 92% 736 75% 611 607 616 64% 61% 59%
Slide 38: Revenue drivers
Revenue drivers Revenue recovery Asset light growth New & Reimagined business Portfolio Occupancy Ginger 232 Hotels, 27,900+ Rooms Portfolio 80+ Hotels 51% (+ 17 PP) incl. pipeline New Openings ADR Qmin 1+ Expected per month in 20 Cities, 35+ Hotels ₹ 9,395 (+ 41%) 2021/22 RevPAR Management Fee Amã
Slide 39: Cost management
Cost management Driving operating leverage Key highlights Consolidated Standalone Corporate Overheads at ₹ 178 crores ( 9M 19/20 ₹ 230 crores) -23% reduction 127% 39% Overall Fixed Cost/Month -₹ 133 crores (9M 19/20 ₹ 164 crores) –19% reduction 111% 2,184 36% 1,938 1,393 1,410 1,185 Manpower rationa
Slide 40: Appendix – Summary financials
Appendix Summary financials
Slide 41: Consolidated financials – Balance sheet
Consolidated financials – Balance sheet ₹ /crores 2019-20 2020-21 H1 2020-21 H1 2021-22 ₹ /crores 2019-20 2020-21 H1 2020-21 H1 2021-22 Net fixed assets and CWIP 5,514 5,893 5,799 5,858 Equity share capital 119 119 119 119 Right-of-use assets 1,583 1,530 1,552 1,511 Other equity 4,238 3,530 3,571 3,
Slide 42: Consolidated financials – Income statement
Consolidated financials – Income statement ₹ /crores 2019-20 2020-21 9M 2020-21 9M 2021-22 Revenue from operations 4,463 1,575 960 2,184 Other income 132 165 153 72 Total income 4,596 1,740 1,113 2,257 Food and beverage consumed 371 144 87 188 Employee benefit expenses 1,495 894 686 840 Finance cost
Slide 43: Consolidated financials – Cash flow statement
Consolidated financials – Cash flow statement ₹ /crores 2019-20 2020-21 H1 2020-21 H1 2021-22 Cash flow from operating activities PBT 396 (850) (599) (445) Depreciation 404 410 203 204 Adjustments (incl finance costs) 206 175 43 227 (Increase)/ Decrease in working capital 23 (77) (145) 72 Less: Taxe
Slide 44: Appendix – Additional reference pages
Appendix Additional reference pages
Slide 45: Industry overview
Industry overview Massive growth potential in the Indian hotel industry on the back of favorable growth drivers All India – Rooms supply vs Demand (FY22-FY25) 200 100% Business related 80% travel Diplomatic travel 150 65% 60% 100 45% Leisure Key demand 40% Airline crew 124 drivers 50 20% MICE 0 0% W
Slide 46: 9M 2021/22 – Performance of key subsidiaries
9M 2021 / 22 – Performance of key subsidiaries ₹ /crores Legal Entity Revenue EBITDA PBT before Exc. Items PAT UOH Inc. - USA 249 (16) (70) (70) St. James Court - UK 147 25 (26) (21) PIEM Hotels Ltd. 189 (2) (46) 2 Roots Corporation Ltd 128 28 (35) (28) Note: Rounded off to the nearest whole number
Slide 47: Debt position – standalone and consolidated
Debt position – standalone and consolidated ₹ /crores Standalone Consolidated Particulars Dec 31, Sept 30, June 30, March 31, Dec 31, Sep 30, June 30, March 31, 2021 2021 2021 2021 2021 2021 2021 2021 Gross Debt 1,665 2,886 2,886 2,592 2,730 4,081 4,042 3,633 Liquidity (580) (311) (271) (413) (825)
Slide 48: Disclaimer
Disclaimer This presentation and the accompanying slides have been prepared by and are the sole responsibility of The Indian Hotels Company Limited (“Company”) and its subsidiaries, associates and affiliates (together, the “Group”). This presentation contains selected information about the activitie
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