Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q2 FY22 Earnings Presentation
43 slides from Mahindra Holidays & Resorts India's earnings presentation, Oct 22, 2021
Slide 1: Club Mahindra cover letter to stock exchanges
e ClubMahindra October 22, 2021 MHRIL/SE/21-22/76 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 Co
Slide 2: Investor Presentation - Q2 & H1 FY22
fi INDIA'S Arr IN A'S !NOW % 6E5T mosr POPULAR' cOmPANEES TO rAVED1.1 ATTE RESORT 44 CHAIN t•" e RESORT CHAIN trer WO R K Mgr TOP 50. 2021 poxifvf on! !NIA. rk.1.111 GREATI'LACE nyedunK° grariE Mahindra Holidays & Resorts India Ltd. India's Best Workplace in Hospitality, 2021 reat Place to Work® Ins
Slide 3: Outline
Outline Ac 4 CLubMahindm MHRIL - Unique Hospitality Business 03 - Business Environment 10 - Q2 Er H1 FY22 Performance 13 - Long-Term Value Creation 23 Holiday Club Resorts - Q2 Er H1 FY22 Performance 29 MHRIL Consolidated - Q2 Er H1 FY22 Financials 34 MHRIL - Historical Performance 37
Slide 4: MHRIL Unique Hospitality Business
Ae 4 CLubMahindm MHRIL Unique Hospitality Business 3
Slide 5: MHRIL Delivered Strong Q2 Performance at pre-COVID levels
MHRIL Delivered Strong Q2 Performance at pre-COVID levelsOe CLubMahindm Member Base Occupancy Er Room Inventory Profits 3,943 73% EBITDA Rs. 89 Crs Member Additions Operational Occupancy Growth: 19.5% YoY Er 21.9% QoQ 258,000+ 4,233 PBT Rs. 55 Crs Cumulative Member Base Total Room Inventory Growth:
Slide 6: 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 7: 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 Difficult to replicate model with strong economic moat
Slide 8: Club Mahindra's Product Portfolio
Club Mahindra's Product Portfolio 11111 41 'V CLubMahindni Target Consumer 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 9: 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 10: MHRIL Business Model is Distinct due to its 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 11: MHRIL Business Environment
Ae 4 CLubMahindm MHRIL Business Environment
Slide 12: Consumer spending has shown a clear V-shaped recovery
Consumer spending has shown a clear V-shaped recovery post the second Covid-19 wave i vy Jbmahindra RBI Consumer Confidence indicates increasing optimism Private Consumption had started its upward trend from Q4 amongst consumers FY21 onwards Current Situation Index Future Expectations Index eal GDP,
Slide 13: Mobility and Travel Sentiment is showing positive uptick
Mobility and Travel Sentiment is showing positive uptick 4,,,Jbmah Google Mobility Trend for Retail & Recreation has Domestic Airline Passenger Traffic has witnessed an significantly improved upward trajectory Retail and Recreation, rolling 7-day average Domestic Passengers (in million) 30 "." • • •
Slide 14: MHRIL Q2 & H1 FY22 Performance
4CLubMahindm MHRIL Q2 6- H1FY22 Performance 13
Slide 15: MHRIL Financial Performance better than Pre-Pandemic levels
MHRIL Financial Performance better than Pre-Pandemic levels joire CLubMahindm 54.9 50.8 45.8 44.1 PBT _._._._._ Pre-Covid level 27.7 Resort Income Pre-Covid level 6.7 (Rs. Crs) (Rs. Crs) Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY20 Q2 FY21 Q2 FY22 3,905 3,943 74% 73% Pre-Covid . . Pre-Covid level 2,681 • level M
Slide 16: Strong Business Performance Continues in Q2 FY22
Strong Business Performance Continues in Q2 FY22 AP 4 CLubMahindra • • = 1 Operational Resilience: Execution Strength Financial Resilience: Predictable Annuity Revenues Occupancy* L PBT growth 20% (YoY) Member Additions 3,943 units Deferred Revenue Pool Rs. 5,012 Crs r Operating Cash flow r Cash Pos
Slide 17: Member Acquisitions at Pre-Pandemic levels in Q2 FY22
Member Acquisitions at Pre-Pandemic levels in Q2 FY22 Ac 4 CLubMahindm Nos. 4,789 Robust Demand for 3,943 Vacation Ownership 3,291 reflected in higher 2,681 member additions this quarter vs 3,905 1,270 members added in Q2 1,062 FY20 (pre-pandemic) 01 FY21 02 FY21 03 FY21 04 FY21 01 FY22 02 FY22 • Me
Slide 18: Resort Occupancies & Revenues have Strongly Bounced Back
Resort Occupancies Et Revenues have Strongly Bounced Back this Quarter A eclubmat 85% 4 75% 73% d Rebuilding Resort 51% Occupancy* 30% 0% 01FY21 02 FY21 03 FY21 04 FY21 01 FY22 02 FY22 53.1 50.8 44.6 Resort Income (Rs. Crs) 15.1 6.7 0 01FY21 02 FY21 03 FY21 04 FY21 01 FY22 02 FY22 • Pace of forward
Slide 19: Q2 & H1 FY22 Performance
Q2 Et 141 FY22 Performance Q2 FY22 AP 4 CLubMahindm Total Income EBITDA PBT Rs. Crs Rs. Crs Rs. Crs 265 55 89 w 74 46 I 212 I VO 51 Resorts Others Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 H1 FY22 Total Income EBITDA PBT Rs. Crs Rs. Crs Rs. Crs 482 162 96 140 I 408 82 VO Resorts 45 7 356 r Oth
Slide 20: Income Break Up - Q2 & H1 FY22
Income Break Up - Q2 Er 1-11 FY22 Ac Quarter ended Half Year ended 4 CLubMahindm Total Income (Rs. Lakhs) Q2 FY22 Q2 FY21 YoY Gr H1 FY22 H1 FY21 YoY Gr Income from Vacation Ownership 9,670 8,486 14.0% 18,705 16,760 11.6% ASF 7,618 7,336 3.8% 15,125 14,834 2.0% Interest & Others 1,403 2,085 -32.7% 3,
Slide 21: Profit & Loss Statement - Q2 & FY22
Profit Er Loss Statement - Q2 Er 141 FY22 Particulars (Rs. Lakhs) Quarter end Half Year ended AP 4CLubMahindm Q2 FY22 Q2 FY21 YoY Gr H1 FY22 H1 FY21 YoY Gr Revenue from Operations 23,766 18,579 27.9% 43,440 36,280 19.7% Non-Operating Income 2,049 1,354 51.3% 3,636 2,668 36.3% Income From Lease Rent
Slide 22: Balance Sheet and Liquidity Growing from Strength to Strength
Balance Sheet and Liquidity Growing from Strength to Strength Ac 4 CLubMahindm Deferred Revenue Rs. 5,012 Cr Rs. 1,041 Cr Rs. 2,255 Cr Zero debt Deferred Revenue In addition, Includes Land Credit Rating for pool will flow Receivables of Rs. worth Rs. 1,233 Cr Long-term into the P&L over 1,129 Cr pro
Slide 23: Snapshot of Balance Sheet
Snapshot of Balance Sheet Rs. Lakhs Ac ASSETS Description th As on 30 Sept 2021 As on 31st March 2021 4 CLubMahindm Property, Plant and Equipment 2,25,549 2,14,285 Right of Use Asset (IND AS 116) 26,295 15,412 Trade receivables 1,12,946 1,20,479 Cash and cash equivalents (regrouped) 1,04,131 93,967
Slide 24: MHRIL Long Term Value Creation
dlOc 4 CLubMahindm MHRIL Long Term Value Creation 23
Slide 25: 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 24
Slide 26: 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 4 years 25
Slide 27: Creating Superlative & Innovative Customer Experience
Creating Superlative b. Innovative Customer Experience Ac 4 aubMahindra Pottery Making Kebab and Biryani Festival Kids Magic Show Yoga Session Rajasthani Theme 26
Slide 28: Accelerate Member Additions
Accelerate Member Additions AP 4CLubMahindm 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 exis
Slide 29: Strengthening Brand Pull through Targeted Marketing Campaigns
Strengthening Brand Pull through Targeted Marketing Campaigns 11" Regional Focused Campaigns ±wHir CLubMahindm nJaana Kahan Hai" actot 341?6, An Integrated Campaign across Kunal & Soha Print, Digital Er Radio with Divya #Jaana Digital Branded Content Bhaskar - Gujarat Market Ka han Hai a. 9 [ARAI ME
Slide 30: Holiday Club Resorts
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Slide 31: Holiday Club Resorts - The Largest European Timeshare Company
Holiday Club Resorts - The Largest European Timeshare Company 11L. CLubMahindm Largest Vacation Ownership company in Scandinavia • 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 Leading Resort Operator in Scandinav
Slide 32: HCR - Multiple Revenue Streams
HCR - Multiple Revenue Streams CI .1 bMahincha Quarter ended Half Year ended • Q2 FY22 Revenue from Spa Hotels increased by Particulars (Euro Mn) 16% YoY on account of: Q2 FY22 Q2 FY21 H1 FY22 H1 FY21 o All resorts were fully operational during the Timeshare 7.76 9.14 13.24 12.51 quarter while last
Slide 33: HCR Delivered PBT better than Q2 FY20 (Pre-Pandemic)
NCR Delivered PBT better than Q2 FY20 (Pre-Pandemic) AV( clubmat Particulars (Euro Mn) Quarter ended Half year ended Highlights: Q2 FY22 Q2 FY21 H1 FY22 H1 FY21 • Q2 FY22 Revenue increased by 6% YoY Turnover 34.48 32.61 55.48 45.35 as resorts were fully operational Operating Profit / (Loss) 3.89 1.9
Slide 34: HCR Outlook - H2 FY22
HCR Outlook - H2 FY22 Ae 4 CLubMahindm • Vaccination rollout is improving the sentiment for tourism in Europe. • Domestic leisure travel was strong during Q2 FY22 in Finland Et Sweden. Travel restrictions have been eased off in a phased manner in the EU region. • In Finland, occupancies and average
Slide 35: MHRIL Consolidated Q2 & FY22 Financials
11101" ClubMahindra MHRIL Consolidated 1 Q2 & 141 FY22 Financials 34 I
Slide 36: Q2 FY22 Growth - Revenue 16% and PBT 91% YoY
Q2 FY22 Growth - Revenue 16% and PBT 91% YoY Quarter ended Half Year ended AP 4CLubMahindm Segment Revenue (Rs. Lakhs) Q2 FY22 Q2 FY21 H1FY22 H1FY21 - MHRIL 27,225 21,134 49,013 40,635 - HCRO 32,104 29,728 52,145 42,735 Total Segment Revenue 59,329 50,862 1,01,158 83,370 - Others - 219 - 232 Total I
Slide 37: Consolidated Profit & Loss Statement
Consolidated Profit Et Loss Statement Quarter ended Half Year ended AP 4 CLubMahindm Particulars (Rs. Lakhs) Q2 FY22 Q2 FY21 H1 FY22 H1 FY21 • Total Income for Q2 FY22 at Income from Operations 54,640 48,137 91,728 77,540 Rs. 593.3 Crs, up by 16.1% Non-Operating Revenue 4,689 2,944 9,430 6,062 YoY T
Slide 38: MHRIL Historical Performance
Ae 4 CLubMahindm MHRIL Historical Performance
Slide 39: 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 40: 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% 83%* 80%* 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
Slide 41: A Strong and Consistent Performance Track Record
A Strong and Consistent Performance Track Record AP 4 CLubMahindm Total Revenue CAGR of 10% (FY15-19) PBT CAGR of 23% (FY15-19) In Crs In Crs 1,170 1,090 1,094 10 Mbl= =AN 109 1,037 241 964 89 963 17 93 60 -...- 45 909* 207 808 67 220 111 201 190 209 87 22 t 19 64 173 AL 168 169 228 132 210 240 104
Slide 42: 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 43: Thank You
dot 4 ClubMattincha Thank You For further enquiries, please contact: Investor Relations Officer Mahindra Holidays Er Resorts India Ltd. Email: investors@mahindraholidays.com
Mahindra Holidays & Resorts India — Q2 FY22 Earnings Presentation on 6ix