Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q1 FY21 Earnings Presentation
40 slides from Mahindra Holidays & Resorts India's earnings presentation, Jul 31, 2020
Slide 1: Stock exchange cover letter for results presentation
July 31, 2020 MHRIL/SE/20-21/35 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 Dalal Street Bandra (E), Mumbai - 400 051 Mumbai 400 001 Scrip Code: MHRIL Scrip Co
Slide 2: Mahindra Holidays & Resorts India Limited Q1 FY21 Investor Presentation
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Slide 3: Disclaimer
Vir 4.MI 4 ClubMahindra 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 r
Slide 4: Contents
ClubMahindra Contents 1111011111 H -41kreas, --A Unique & Leadership Q1 FY21 Holiday Club Resilient Position in Results Resorts, Oy Business Model Vacation Update Ownership 3
Slide 5: Business Model
JO ClubMahindra Business Model Club Mahindra (CMH 25) Flagship Product Offering Target Profile of CMH 25 Member r Season 28+ years of age Apartment Size Married; 1-2 children (Age 3-15 years) Blue NCCS A+ & A OffPeak Studio White (2 adults, 1child) Medium 1BR Appreciates quality family time Red (2 a
Slide 6: Sales Network and Revenue & Cost Model
Sales Network and Revenue & Cost Model Sales Network Cost Model • 120+ branch offices, sales offices & channel partners • ASF funds maintenance, renovation of resorts & member servicing • Leads generated through Digital route, Referrals, Alliances, On-ground Events/Activities, Campaigns • Revenue Mo
Slide 7: Unique & Resilient Business Model
Vir 4.MI 4 ClubMahindra Unique & Resilient Business Model 6
Slide 8: Unique Business Model
V1- Unique Business Model 4 ClubMahindra Zero Debt Status Unique Consistently High Strong Balance Sheet Business Occupancy Model 7
Slide 9: Resilient Business Model
Resilient Business Model Income • Admission Fee • Annual Subscription Fee • Resort - Members from Financing • Resort - FIT • Interest 1111111111111111111111117 Recurring Revenue Streams : ASF*, Resort Income ;I -, Value Creation I Upfront Admission Fee Value Realized I Residual Value*: Upfront Admis
Slide 10: Key Takeaways
Key Takeaways Strong and Resilient Business model • Cumulative member base of 258000+ generates multiple annuity revenue streams Predictability of Revenue streams • VO Income (Growing VO income from Deferred Revenue) • Track record of consistently high Occupancy (80%+) ensures resort revenue gro
Slide 11: Unique Business Model - Strong Balance Sheet
e ve op Clublthindra Unique Business Model - Strong Balance Sheet Deferred Strong Cash Receivables Strong Asset Revenue Position Base Rs. 5,430 Cr Rs. 776 Cr Rs. 1,636 Cr Rs. 1,829 Cr* Income which Organic Growth Opportunity for Includes Land will be can be met Inorganic Assets recognized over witho
Slide 12: Unique Business Model - Consistently High Occupancy
Unique Business Model - Consistently High Occupancy 95% 85% 85% 4,000 81% 83% 80% 3,732 3,682 75% 3,700 3,595 3,472 3,400 55% 3,152 3,100 2,879 35% 2,800 2,500 N 0% 15% FY16 FY17 FY18 FY19 FY20 Q1 FY-21 Room Inventory (Units) Occupancy % From June-20 onwards we have started opening the Resorts As on
Slide 13: Cumulative Member Base
Vir 4.MI Cumulative Member Base 4 ClubMahindra 258,336 258,528 * 243,574 * 235,792 218,138 199,617 FY-16 FY-17 FY-18 FY-19 FY-20 Q1 FY21 * Net of one-off cancellation of 9,556 overdue members in Q4 FY19 and 820 in Q1 FY21. 12
Slide 14: Member Addition
Member Addition Net member addition at 1270 in Q1 FY21. One off overdue cancellation of 820 members was done in this quarter. We saw consumer preference for Gozest (3 year membership) in this quarter, aided by its lower transaction value. Improved consumer sentiment was seen in May’20 & June
Slide 15: Q1 FY21 - Cost Savings
Q1 FY21 - Cost Savings ₹ In Crs -7% -55% 71 72 66 -57% 48 32 -26% 20 17 13 7 1 1 1 Sales & Marketing Expenses Rent Employee Benefit Expenses Other Expenses Q1-FY20 Q1-FY21 Significant cost saving measures have resulted in cost reduction by 37% YOY. 14
Slide 16: Cash position
Cash position 781 776 ₹ In Crs 572 470 265 84 FY16 FY17 FY18 FY19 FY20 Q1 FY21 Strong Cash Position, despite shut down of Resort Operations for most of the quarter and lower VO Sales, due to lockdown. 15 1
Slide 17: Leadership Position in Vacation Ownership
Vir 4.MI 4 ClubMahindra Leadership Position in Vacation Ownership 16
Slide 18: Leadership Position in Vacation Ownership
Leadership Position in Vacation Ownership Trusted Brand Choice of 2.58 Lakh+ Member -Most Popular Resort Chain 59 Domestic resorts base (2018) & 51 International Track record of over two - India’s Favorite Resort Chain (2017) resorts decades Inventory exchange program for our Club Member Engagement
Slide 19: Resort Diversity
Resort Diversity M Hill Stations Beaches Cities Manali, Shimla, Naldhera, Kandaghat, Varca, Emerald Palms, Acacia Palms - Cochin Rishikesh, Mysuru Goa Nadiad Dharamshala, Kanatal, Binsar, Bhutan, Cherai Dubai Kashmir Pondicherry Kuala Lumpur Mussorie, Naukuchiatal, Srinagar Gan
Slide 20: Member Engagement
Member Engagement Dreamscapes ..M Heart-to-Heart Curated Vacations Exchange Program • Wide variety of in-city • Festivals & theme-based • Creating choice of • In-city meets include experiences especially vacation experiences for destinations for members for leisure & edutainment curated for members
Slide 21: Member Engagement & Safety Standards
Member Engagement & Safety Standards
Slide 22: Member Engagement
Member Engagement 1. #21DaysOfFamilyMoments 2. #LoveIndiaSeeIndia Inspiring families to rediscover travel and the lovely destinations of India. While were indoors with Our family, let's positively make we of this time, while keeping each other safe #21DaysOfFamilyMomens #MaiPhirAunga with Ayushmann
Slide 23: Best in class Covid Safe protocols at our Resorts
Qubl"-rj r Best in class “Covid Safe” protocols implemented at our Resorts • We have partnered with the top facility services management company, working with hospitals, for creating safety & hygiene guidelines. We have created AV communication for our members covering all safety & hygiene actions t
Slide 24: Financial Performance Q1 FY21
ClubMahindra Financial Performance Q1 FY21
Slide 25: Income Break Up – Q1 FY'21
Income Break Up – Q1 FY’21 Rs. In Lakhs Growth ItIncome Q1 FY-21 Q1 FY-20 YoY Income from Vacation Ownership 8,274 8,444 -2.0% ASF 7,498 6,885 8.9% Interest & Others 1,927 2,841 -32.2% Non-Operating Income 1,946 1,427 36.4% Income other than Resort Income 19,645 19,597 0.2% Resort Income 2 6,885 -10
Slide 26: Profit & Loss Statement – Q1 FY'21
Profit & Loss Statement – Q1 FY’21 Rs. In Lakhs Particulars Q1 FY-21 Q1 FY-20 YoY Gr Revenue from Operations 17,701 25,055 -29.4% Non-Operating Income 1,946 1,427 36.4% Total Income 19,647 26,482 -25.8% Employee Benefits Expense 6,590 7,081 Sales & Marketing Expenses 2,028 4,763 Rent 1,292 1,745 Oth
Slide 27: Summarized Balance Sheet
Summarized Balance Sheet r Rs. in Lakhs Description As at 30 June 2020 As at 31 March 2020 ASSETS Property, Plant, Equipment & Goodwill 2,09,006 2,08,178 Right of Use Asset (IND AS 116) 15,992 17,427 Trade receivables 1,63,630 1,68,188 Cash and cash equivalents (regrouped) 77,571 78,073 Deferred Tax
Slide 28: Holiday Club Resorts Oy
HCRO We Create and Sell Dream Holidays Holiday
Slide 29: Figures of the Resorts
Figures of the Resorts Spa Hotels 8 Other Holiday Resorts 25 Hotel Rooms 1,140 Timeshare apartments 1,916 Villas Apartments 629 Restaurants & Bars 25 Aqua Parks with Saunas 8 Spa Treatment Departments 8 Golf Courses 2 Angry Birds Activity Parks 3 Shopping Centre 1 28 Holiday
Slide 30: 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 100% of HCR Oy ~62,000 families an
Slide 31: Financial Performance Holiday Club
Financial Performance Holiday Club 30 HolidayNClub
Slide 32: Comments Q1 FY20-21: Operations
COMMENTS Q1 FY20-21 Operations Resort operations at Holiday Club Resorts were affected due to Covid 19 from mid March till May end. Most of the resorts have started in June, as domestic travel in Finland has picked up during summer holidays. - As at June, 30 of our 33 resorts were operational. - E
Slide 33: Comments Q1 FY20-21: Revenue and Costs
COMMENTS Q1 FY20-21 Revenue HCRO has earned a revenue of 12.74 M€ in Q1 FY21 as compared to 37.00 M€ in Q1 FY20 down by 66% YOY. Most of the Resorts have opened in June and quick recovery in Spa Hotels Occupancies, Timeshare sales has resulted in Turnover of 8.13 M€. Cost control measures Signif
Slide 34: Turnover : Q1 2020-21
Turnover : Q1 2020-21 Turnover by Business Areas* Euro Mn HCRO Particulars Q1 FY 21 Q1 FY 20 Timeshare 3.49 9.44 Spa Hotels 5.88 15.47 Renting 0.61 1.50 Real Estate Management 1.42 1.50 Villas 1.13 7.31 Other Sales 0.07 0.45 Other Income 0.14 1.33 Total 12.74 37.00 Nos are as per FAS Accounts 33 Hol
Slide 35: P&L Q1 2020-2021
P&L Q1 2020-2021 Euro Mn Particulars Q1 FY21 Q1 FY20 Turnover 12.74 37.00 Operating Profit/(Loss) (5.12) (0.64) Less: Depreciations and impairments 1.35 1.45 (Add)/Less Financial (income) and expenses 0.18 0.27 Profit/(Loss) before Tax (6.65) (2.36) Add/ (Less) : Minority Share + Associate Share 0.4
Slide 36: Financial Performance Consolidated
ClubMahindra Financial Performance Consolidated
Slide 37: Segment Revenue
V,i Segment Revenue a llill1 4 ClubMahirrdra Rs. In Lakhs Particulars Q1 FY'21 Q1 FY'20 - MHRIL 19,500 26,861 - HCRO 13,008 35,704 Total Segment Revenue 32,508 62,565 - Others 13 48 Revenue from Operations 32,521 62,613 36
Slide 38: Segment Profitability (PBT)
V,i Segment Profitability (PBT) a llill1 4 ClubMahirrdra Rs. In Lakhs Particulars Q1 FY'21 Q1 FY'20 - MHRIL 3,550 2,868 - HCRO (5,220) (571) PBT before Ind AS 116 & Consolidation adjustments (1,670) 2,297 - Ind AS 116 Impact (204) (460) Segment Results (1,874) 1,837 - Forex Gain/ (Loss) (861) (583)
Slide 39: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Rs. In Lakhs Particulars Q1 FY'21 Q1 FY'20 Income from Operations 29,403 61,132 • Despite the total income Non-Operating Revenue 3,118 1,481 reduction by 48% YOY, Total Income 32,521 62,613 operational EBITDA is at Rs Cost of vacation ownership weeks 3,085 12,840
Slide 40: Thank You!
INDIA'S if INDIA'S •.,N If INDIA'S BEST N% ft FAVOURITE NI er MOST POPULAR 11 I,lor COMPANIES TO ••••) ) RESORT te. 4, RESORT /1 ‘‘ WORK FOR - IV 1 V C. / Nik TOP100, 2020 /JP' `4 CHAIN CHAIN HOLIDAY 10 AWARD 2017 TMESTRAVEL AWARD 2019 GREAT PLACE TO WORK" INSTITUTE ClubMahindra Thank You!
Mahindra Holidays & Resorts India — Q1 FY21 Earnings Presentation on 6ix