Itc Limited · NSE:ITC
Itc — Merger or Acquisition (December 2024)
17 slides from Itc's merger presentation, Dec 30, 2024
Slide 1: Cover letter to stock exchanges: Presentation on demerger of Hotels Business - update
ITC Limited Virginia House 37 J. L. Nehru Road Kolkata 700 071, India Tel. : 91 33 2288 9371 Fax : 91 33 2288 4016 / 1256 / 2259 / 2260 30th December, 2024 The Manager The General Manager The Secretary Listing Department Dept. of Corporate Services The Calcutta Stock National Stock Exchange of BSE L
Slide 2: cc: Securities Exchange Commission and Luxembourg Stock Exchange
cc: Securities Exchange Commission Division of Corporate Finance Office of International Corporate Finance Mail Stop 3-9 450 Fifth Street Washington DC 20549 U.S.A. cc: Societe de la Bourse de Luxembourg 35A Boulevard Joseph II L-1840 Luxembourg
Slide 3: Update on Demerger of Hotels Business: Investor Presentation
Update on Demerger of Hotels Business Investor Presentation 30th December, 2024 |1
Slide 4: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements including those describing the Company’s strategies, strategic direction, objectives, future prospects, estimates etc. Investors are cautioned that “forward looking statements” are based on certain assumptions o
Slide 5: Timeline Update
Timeline Update ► Certified copy of the Order of Hon’ble National Company Law Tribunal (‘NCLT Order’), Kolkata Bench, sanctioning the Scheme, received on December 16, 2024 ► ITC and ITC Hotels mutually acknowledged that all conditions specified in Clause 28 of the Scheme have been satisfied, includi
Slide 6: Transaction Structure Recap
Transaction Structure Recap Demerger Resultant Structure Shareholders 1 Share of ITC Hotels Shareholders ~60% for every 100% 10 shares of ITC 100% 100% ~40% ITC ITC Hotels ITC ITC Hotels TSO1: 1,251 Cr TSO1 – 83 Cr TSO1: 1,251 Cr TSO1 – 208 Cr FMCG, Cigarettes, FMCG, Cigarettes, Paperboards & Hotel
Slide 7: Transaction Perimeter – key updates (1/2)
Transaction Perimeter – key updates (1/2) Intellectual property/ trademarks exclusively used in relation to Hotels Business being transferred to ITC Hotels ITC and ITC Hotels to execute a Trademarks License Agreement under which ITC Hotels would be given a license to use: • the ‘ITC’ trademark/ logo
Slide 8: Transaction Perimeter – key updates (2/2)
Transaction Perimeter – key updates (2/2) Investments in Hospitality Entities, forming part of Hotels Business, being transferred to ITC Hotels • Hospitality Entities: Bay Islands Hotels Ltd.; Fortune Park Hotels Ltd.; Landbase India Ltd.; Srinivasa Resorts Ltd.; WelcomHotels Lanka Pvt. Ltd.; Gujara
Slide 9: Strategy Pillars
Strategy Pillars CONTINUED INVESTMENT CAPITAL TO ENHANCE BRAND ASSET RIGHT DIGITAL FIRST EMPLOYER OF CHOICE PRODUCTIVITY EQUITY Key Differentiators ■ Indigenous Experiences ■ Bouquet of brands catering ■ Smart Revenue ■ Sweating existing assets ■ Strong Talent Pool ■ Signature cuisines to relevant n
Slide 10: Strong Growth Enablers in Place
Strong Growth Enablers in Place Strong Zero Debt Balance Sheet & Cash Generation to accelerate growth Capital Investments → Renovations | on-going Projects | new Greenfields & others - Estimated at c.8-10% of Revenue cumulatively Well positioned to execute selective Inorganic Opportunities - Value a
Slide 11: Driving Capital Efficient Growth
Driving Capital Efficient Growth Owned Hotels ► Significant headroom to drive RevPar growth ► About 20% Inventory < 5 years old, operating at 75% of potential Occupancy levels ► ITC Ratnadipa, Colombo → significant contributor to Revenue & EBITDA going forward Welcomhotel Puri Welcomhotel Bhubaneshw
Slide 12: Robust Growth Pipeline: 46 Hotels with ~4300 Keys
Robust Growth Pipeline: 46 Hotels with ~4300 Keys 1 Hotel 13 Hotels 10 Hotels 18 Hotels 4 Hotels 223 Keys# 1796 Keys 578 Keys 1439 Keys 162 Keys ► Opened 28 Managed Hotels in the past 24 months (Nov 2022 – Oct 2024) ► High Quality of signed pipeline; High salience of Brownfield Assets • > 1 Hotel op
Slide 13: Unlocking Full Potential of Recent Launches
Unlocking Full Potential of Recent Launches ITC Narmada (FY23) ITC Royal Bengal (FY20) WH Bhubaneswar (FY22) ITC Ratnadipa (FY25) Significant contributor Significant headroom for growth to Revenue & EBITDA About 20% Inventory operating at 75% of potential Occupancy levels in the years ahead | 11
Slide 14: ITC Ratnadipa, Colombo: A Jewel in Colombo’s Skyline
ITC Ratnadipa, Colombo One of its Kind Mixed Use Development A Jewel in Colombo’s Skyline 352 Hotel Keys + 132 Luxury Apartments 71,000 sqft. 9 Retail & Office Spaces Signature Dining Destinations 40,000 sqft. Banqueting Spaces Sale of Investment Outlay Substantially Sapphire Residences# underway Co
Slide 15: Sapphire Residences, Colombo
Sapphire Residences, Colombo Unique luxury apartments with interiors designed by Philippe Starck (YOO) Most Exclusive and Spacious Elevated living experience in Sri Lanka Located at epicentre of Galle Face Oceanfront | 13
Slide 16: THANK YOU
THANK YOU | 14
Slide 17: Annexure: Pro forma Financials of ITC Hotels
Annexure: Pro forma Financials of ITC Hotels Particulars (in Rs. cr.) H1 FY25 FY24 FY23 FY22 Revenue from Sale of Products and Services 1457 3003 2599 1308 Other Operating Revenue 15 31 30 12 Revenue From Operations 1471 3034 2629 1320 Other Income 17 35 24 24 Total Income 1489 3069 2654 1344 Cost o