Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Investor Day (February 2020)
99 slides from Indian Hotels's investor day presentation, Feb 24, 2020
Slide 1: Intimation of Capital Market Day to stock exchanges
February 24, 2020 BSE Limited National Stock Exchange oflndia Corporate Relationship Department Limited Exchange Plaza 1 st Floor, New Trading Ring, Bandra Kurla Complex Rotunda Building, P. J. Towers, Bandra (E) Dalal Street, Fort, Mumbai 400 051 Mumbai - 400 001. • cnn _ode: I DHOTEL Scrip Cod -·:
Slide 2: Iconic Like Always, Profitable Like Never Before
Iconic Like Always, Profitable Like Never Before CAPITAL MARKET DAY | 24th February, 2020
Slide 3: South Asia's largest hospitality company
PIONEER LEGACY SOUTH ASIA’S of Indian hospitality of 116 years largest hospitality company REACHES A KEY MILESTONE OF 100+ 20032,000+ HOTELS $1 BILLION+ LOCATIONS IN THE PORTFOLIO ASSOCIATES REVENUES across 12 countries serving with heart and soul at an enterprise level 2
Slide 4: Indian Hotels – A Story of Aspiration, Execution and Turnaround
INDIAN HOTELS – A STORY OF ASPIRATION, EXECUTION AND TURNAROUND ₹ / crores Where Where Where we we we were landed are 4,595 4,123 4,076 4,165 3,495 3,013 2,601 1,875 370 - - - - 249 355 287 310 101 -231 -63 r------- 1 2005/06 2006/07 2007/08 2015/16 2016/17 2017/18 2018/19 I 9m 2019/20 I L------- ■
Slide 5: On a Journey of Re-imagination Since February 2018
INDIAN HOTELS – ON A JOURNEY OF RE-IMAGINATION SINCE FEBRUARY 2018 What if the symbol of iconic hospitality took center stage and wrote the next 100 years? 4
Slide 6: Aspiration 2022
ASPIRATION 2022 Unveiled on Capital Market Day, Feb 2018 Hospitality Company 15 NEW PROJECTS Re-imagine _,- EVERY YEAR Service, Brandscape,,,' Portfolio ,. 8% Scale, Simplify, ,/ Re-engineer , , / Margins, Technolog Sell People EBITDA MARGIN High Customer 50-50 Strong Brand Equity EXPANSION Engageme
Slide 7: Aspiration 2022 – 8% Margin Expansion
ASPIRATION 2022 – 8% MARGIN EXPANSION Drivers of Margin Expansion PARTICULARS MARGIN IMPROVEMENT Revenue RevPAR Growth Other Operating Income 3 to 4 % Management Fee Income Incremental Income from New Inventory 8 % EBITDA Costs MARGIN Operational Payroll EXPANSION Procurements (Raw Materials, Stores
Slide 8: Strategic Initiatives
STRATEGIC INITIATIVES Path to Execution Re-imagine Re-structure Re-engineer Manage Brandscape Scale up Inventory Expand Margins Multiply Portfolio Sell Non Core Assets Embrace Technology Manoeuvre Excellence Simplify Holding Structure Engage People 7 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11-
Slide 9: From Aspiration to Execution – Re-imagined
From Aspiration to Execution RE-IMAGINED Brandscape, Portfolio and Operational Excellence 8
Slide 10: Re-imagined Brandscape
RE-IMAGINED l BRANDSCAPE Brand Equity Like Always, Diverse and Enabling Like Never Before 9
Slide 11: From a Branded House to a House of Brands
FROM A BRANDED HOUSE TO A HOUSE OF BRANDS 10
Slide 12: Diverse Brandscape Catering to Different Customer Segments
DIVERSE BRANDSCAPE CATERING TO DIFFERENT CUSTOMER SEGMENTS LUXURY SELECT HOTELS UPSCALE LEAN LUXE 25,000+ KEYS / 200 HOTELS SELE~IONS VIVANTA G I N G ER 13,000 KEYS / 88 HOTELS 1400 KEYS / 14 HOTELS 4,700 KEYS / 34 HOTELS 5,900 KEYS / 64 HOTELS *Portfolio figures include operational hotels and hotel
Slide 13: 100 Days Campaign
a1 01v1n1ty Trails Stx Taj hotels at five spin for a divine experience In the lap of luxury 100 Days Campaign Like Always. Like Never Before. 12
Slide 14: Executing the Re-imagined Brandscape
EXECUTING THE RE-IMAGINED BRANDSCAPE G ER TAI - -~ ~ • L---? 13 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 15: Scaling Up Our New Brands
SCALING UP OUR NEW BRANDS • a n1u you. nau SELE~IONS 14 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 16: Re-imagined Ginger
RE-IMAGINED l GINGER Value Like Always, Lean Luxe Like Never Before 15
Slide 17: Ginger – Evolution
GINGER – EVOLUTION ORIGIN METAMORPHOSIS 2004 Dec 2018 onwards - I GE R ROOMS CENTRIC BRAND NEW GINGER Self Service Smart Basics Vibrant & Interactive F&B offering Spaces Lifestyle Approach 16 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 18: Brand Characteristics
BRAND CHARACTERISTICS Work & Play Individual & Collective Global & Local Ginger - the first Indian brand to adopt a lifestyle approach in the Midscale segment 17 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~ 17
Slide 19: Lean Luxe Footprint
LEAN LUXE FOOTPRINT › GOA, PANAJI › GOA, DONA PAULA › GOA, MADGAON › MUMBAI, ANDHERI EAST › PUNE, WAKAD › AURANGABAD › DWARKA, GUJARAT › AHMEDABAD, SANAND › SURAT, CITY CENTRE › NOIDA, CITY CENTER › BHUBANESHWAR › PATNA REFRESHING, LIBERATING AND LIVELY 18 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TA
Slide 20: Lean Luxe Impact
LEAN LUXE IMPACT REVAMPED ENHANCED AGGRESSIVE PORTFOLIO PERFORMANCE GROWTH Achieved ARR ***** 50TH HOTEL 12 Lean Luxe Hotels Growth in Q3 26% 111111 111111 MILESTONE Of 24% portfolio in FY20 Rating of 4.27 across Ginger 5 New Hotels in 2019 of 50% portfolio 1,000 + Launch of new rooms signed New res
Slide 21: Experience Lean Luxe
EXPERIENCE LEAN LUXE Website: www.gingerhotels.com 20
Slide 22: Re-imagined TajSATS
RE-IMAGINED l TajSATS Leadership in Volume Catering Like Always, F&B Offerings Like Never Before 21
Slide 23: TajSATS: Who Are We
TAJ SATS: WHO ARE WE.. TAJ SATS AIR CATERING LTD, IS A JOINT VENTURE COMPANY FORMED IN 2001 BETWEEN THE INDIAN HOTELS COMPANY LTD (IHCL) HOLDING A STAKE OF 51% AND SATS LTD, HOLDING 49% Over 40 years of catering 23 million meals prepared Over 40 Domestic & International Over 65,000 meals crafted dai
Slide 24: Our Strategy Over Last 4+ Years
OUR STRATEGY OVER LAST 4+ YEARS.. › Re-invigorate Taj SATS Brand 03 and launch a new Brand for Non-Aviation Business › Simplify shareholding › Diversify revenue base to ,, 02 increase contribution from “International Airlines” and “Non Aviation Sources” › Focus on ‘Operational 01 Excellence’ and “ge
Slide 25: Delivering to Our Strategy
DELIVERING TO OUR STRATEGY… Geographical Diversification Driving Operational Excellence Simplification of Shareholding › Secured many new international airline › Won Platinum award worldwide (from Structure accounts across different geographies amongst 60 countries and 270 kitchens) › Won Gold award
Slide 26: Invigorating the TajSATS Brand
INVIGORATING THE TAJSATS BRAND • In February 2019, TajSATS launched its new brand identity. • The brand evolution encompasses everything, right from our new logo and visual identity to the way we communicate with the world. THE ~ HINDU ,, In . < MENU 0 44mins On valentine's ~y. transwomiln~man weddi
Slide 27: Our Aspiration
OUR ASPIRATION… ASPIRATION 2022 Market Share of 34% Enhanced Revenue Growth, Profitability Continued Profitable Input Output Profitably Operate Operations CDA I largest kitchen R6 capacity in India Unlevered Balance Sheet @ I Market Share exceeding 50% Healthy Cash Flows › Consolidation in Airline C
Slide 28: Re-imagined Portfolio
RE-IMAGINED | PORTFOLIO Hospitality Like Always, an Ecosystem Like Never Before 27
Slide 29: From a Hotels Business to a Hospitality Ecosystem
FROM A HOTELS BUSINESS TO A HOSPITALITY ECOSYSTEM Jiva Spa Khazana Topline Drivers amã Stays & Trails The Chambers Margin Drivers HOTELS Salon- F&B Market Share Drivers niu&nau Concepts Air Catering 28 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 30: Expressions
EXPRESSONS A ,-.,.J JIVA Kr1AZANA ama STAYS & TRAILS 72 13 37 380+ -~.- 7CLUBS ***** 20 ~ SPAS U:lllW . ~,~ . -. 11 1 11 1 BOUTIQUES SALONS ~T~ RESTAURANTS & BARS ,. ! .' PROPERTIES 29 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 31: Focus on F&B: Scale Up Existing F&B Brands
FOCUS ON F&B: SCALE UP OUR EXISTING F&B BRANDS SLIAMiA A P HA V I GOLDE~ DRAGO~ 30 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 32: Focus on F&B: Brew Pub with AB InBev
FOCUS ON F&B: LAUNCH OF NEW CONCEPTS – BREW PUB WITH AB InBev 31
Slide 33: Focus on F&B: Paper Moon
FOCUS ON F&B: LAUNCH OF NEW CONCEPTS – PAPER MOON ~i, il ~ ~~ [@ . · ~ ri] ,. . I] 32
Slide 34: Focus on F&B: GTR
FOCUS ON F&B: LAUNCH OF NEW CONCEPTS – GTR 33
Slide 35: Unlocking Expressions: The Re-imagined Chambers
UNLOCKING EXPRESSIONS: THE RE-IMAGINED CHAMBERS 115 NEW MEMBERS 150 MIGRATIONS ₹ 32 Crore INCR. REVENUE 34
Slide 36: The Chambers locations
,~ l· i·i·i+i·t·i·l·i·i·l·i+i ·I TAj THE TAJ MAHAL PALACE LANDS END MUMBAI MUMBA I ,~ ~~ TAJ MAHAL KRISHNA NEW DEL!l l HYDERABAD 11\ ,~ TAj TAj BENGAL COROMANDEL KOL KATA CHENNAI t\ ~~ TAJ DUBAI 35
Slide 37: The Chambers Locations
THE CHAMBERS LOCATIONS Taj Mahal Delhi Taj West End Taj 51 Buckingham Gate Under renovation, - ~ Bangalore,- - - + - ~ -London, . - - Opening 2020 Opening 2020 Opening 2020 36 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 38: Unlocking Expressions: amã Stays & Trails
UNLOCKING EXPRESSIONS: amã STAYS & TRAILS A distinctive branded offering by IHCL, amã Stays & Trails Combining elegance with homely The beauty, tranquility and unique comprise untouched experiential comfort and warm service, amã local flavors found across carefully escapes ranging from Stays & Trail
Slide 39: amã Stays & Trails – Bungalows Portfolio
amã STAYS & TRAILS - 20 BUNGALOWS PORTFOLIO 7 BUNGALOWS IN PIPELINE Uttarakhand › 1 upcoming Karnataka › 10 operational Goa › 2 Operational › 1 upcoming Tamil Nadu › 1 upcoming Maharashtra Kerala › 2 upcoming › 1 operational › 2 upcoming *20 Bungalows portfolio includes the 7 bungalows in pipeline 3
Slide 40: Unlocking Expressions: niu&nau salon
UNLOCKING EXPRESSIONS: niu&nau salon reimagined A social hub, a private sanctuary, a creative space, an experience personalised to your needs and lifestyle - this is the salon reimagined. 39
Slide 41: niu&nau – Brand Experiences
UNLOCKING EXPRESSIONS: niu&nau – BRAND EXPERIENCES Consultations Snackbar Facilities Social Gallery Sessions Social Mixers The Host
Slide 42: Re-imagined Operational Excellence
RE-IMAGINED | OPERATIONAL EXCELLENCE Customer Centricity Like Always, Focus on Excellence Like Never Before 41
Slide 43: Our Customers
OUR CUSTOMERS 42 () TAJ SELE~IONS VI VANTA GINGER EXPRESSIONS l'i,• TAj 11-1c1 -., ~
Slide 44: Our Customers
OUR CUSTOMERS ... SANOFI V Star Toyota Kirloskar BOSTON CONSULTING > ---~~ GROUP accenture a Abbott LEVI STRAUSS & CO. P&G ill ERNST &YOUNG amazon asianpaints K,ondelez e:' ~ International pwc 43 () TAJ SELE~IONS VI VANTA GINGER EXPRESSIONS l'i,• TAj 11-1c1 -., ~
Slide 45: Corporates, Entertainment, Government
ERSHIP CORPORATES, ENTERTAINMENT, GOVT PM MODI - HT LEADERSHIP SUMMIT Taj Palace, New Delhi JEFF BEZOS WITH INDUSTRY CAPTAINS The Taj Mahal Palace, Mumbai U2 PM MODI AND PRESIDENT XI The Taj Mahal Palace, Mumbai 2nd India China Summit Taj Fisherman’s Cove, Chennai 44 TAJ () SELE~IONS VI VANTA GINGER
Slide 46: Customer Landscape and Voice of the Customer
CUSTOMER LANDSCAPE VOICE OF THE CUSTOMER #1 2018 2019 15 L+ | 23 L+ Net Online • * * unique customers/ year & Promoter Reputation Average annual visits* Score (NPS) Score 67 TY vs. 65 91 TY vs. 90 2.6 L for PY for PY • Active TIC Customers 17%+ TOP CUSTOMER ATTRIBUTES members in higher tiers Service
Slide 47: Consistent Growth Like Always, Re-imagined Experience
CONSISTENT GROWTH LIKE ALWAYS, RE-IMAGINED EXPERIENCE LIKE NEVER BEFORE Seamless, on-brand booking experience Independent brand websites www.ihcltata.com www.tajhotels.com ~,-•us"~''"'' N ' ~~ Conversion Rate Revenue Cost of Sale , . - . ~-:=-e-~ i '' +19% YoY +10% YoY -10% YoY - -- ~-n • - - -- •,-
Slide 48: Data as the Accelerator
DATA AS THE ACCELERATOR O O l) S Tailored content and promotions ~ 0 0 r"\ r"\ • Travel Inspiration Real-time response management Tailored search, prospecting, and personalised communication remarketing • Post Stay • Research CUSTOMER JOURNEY .. Capturing preferences and social data to create hyper-
Slide 49: Evolution from Online Reputation Management to User Delight Stories
EVOLUTION FROM ONLINE REPUTATION MGMT TO USER DELIGHT STORIES 95% 15 209 539 min Response Rate Response Time Guest Delights Sales Leads 48 () TAJ SELE~IONS VI VANTA GINGER EXPRESSIONS l'i,• TAj 11-1c1 -., ~
Slide 50: Integrated Marketing Campaign
INTEGRATED MARKETING CAMPAIGN Like Always, Like Never Before. taj.fatehprakashpalace Taj Fateh Prakash Palace, Udaipur MEDIA: National Print, Digital, Social Offline Reach Social Media 3.7 million 2.5 million • •• uT Liked by tajhotels and 7 others taj.fatehprakashpalace Taj Lake Palace has always b
Slide 51: Like Always. Like Never Before campaigns
Dd @ TAJ TAJ TE OONTRE Rn CET ere? LIKE ALWAYS. LIKE NEVER BEFORE A PALACE STAY LIKE ALWAYS. THE TA] YOU LOVE LIKE ALWAYS. A ROYAL EXPERIENCE LIKE NEVER BEFORE. A CHOICE OF FOUR STUNNING HOTELS LIKE NEVER BEFORE. THIS VALENTINE'S DAY, ‘A ROMANCE LIKE ALWAYS. sven BMD HH e.2ec eee aan aan g fi 1 TA a
Slide 52: Operational Initiatives to Drive Performance
OPERATIONAL INITIATIVES TO DRIVE PERFORMANCE SHARED SERVICES PROJECT SCORE RE-IMAGINED F&B SC RE > ac,ce1 nturestrategy Finance Laundry Human Energy Guest Business High quality Procurement Synergy (AR/AP, Operations Resources efficiency Amenities Travel convenience standards with Taj Stores) (Recrui
Slide 53: Deep Dive on Hotels to Drive Efficiency
DEEP DIVE ON HOTELS TO DRIVE EFFICIENCY Phoenix FLAGSHIP Cross PHOENIX Functional Projects Sunrise MISSION 200 SUNRISE 52
Slide 54: High Speed Trains Need Strong and High Speed Rails
HIGH SPEED TRAINS NEED STRONG AND HIGH SPEED RAILS AS IHCL EMBARKS UPON A JOURNEY OF SCALE, SYNERGY AND SIMPLIFICATION ASPIRATION PROJECT EXCELLENCE TO BUILD A STRONGER 2022 FOUNDATION OF PROCESSES, KNOWLEDGE AND EXPERTISE 53 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 55: Project Excellence
PROJECT EXCELLENCE 725+ Processes Reviewed, ~0 o 0 Revalidated and Refreshed rd lili1 l.l Processes in Safety & Process validation against Security, Operations, Real its relevance to Aspiration Estate & Development and Human Resources 1 2 3 2022 Our commitment toward Aspiration 2022 Identification o
Slide 56: Digitization of Taj Positive Assurance Model
DIGITIZATION OF TAJ POSITIVE ASSURANCE MODEL Safety Reporting Revenue Business 9 Cycles Processes IT Controls Expenditure Human Resources 2000 40 Controls Statutory Compliance Guest Services Fixed assets Sub Processes ~ 250 1111 55 () TAJ SELE~IONS VI VANTA GINGER EXPRESSIONS l'i,• TAj 11-1c1 -., ~
Slide 57: Re-structured
From Aspiration to Execution RE-STRUCTURED For Scale, Enabled by Organization 56
Slide 58: Growth: Key Highlights
GROWTH: KEY HIGHLIGHTS 200 50 18 43% Hotels Portfolio New Hotels Signed New Hotels Opened Mgmt Contract Mix (158 Hotels Operational) in the Last Two Years in the Last Two Years vs Owned in Portfolio *Portfolio includes operational hotels and hotels under various stages of development 57 TAJ SELE~ION
Slide 59: Re-structured | Scale
RE-STRUCTURED | SCALE Market Leader Like Always, Growth Like Never Before 58
Slide 60: Development Strategy
DEVELOPMENT STRATEGY NEITHER ASSET LIGHT NOR ASSET HEAVY.. BUT ASSET SMART S M A R T Margin Asset Strategic Enhancement Management Relationships Tracking 59 TAJ SELE~IONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICl__.j
Slide 61: Development Strategy Across Brands
DEVELOPMENT STRATEGY ACROSS BRANDS ASSET SMART Management Contract Pure Management Pure Management with Sliver Investment Contract Contract Operating Lease/ Ownership Management Contract Pure Management Pure Management with Sliver Investment SELE~IONS Contract Contract Operating Lease/ Ownership Man
Slide 62: Inorganic Growth
INORGANIC GROWTH STRATEGIC INITIATIVE FOR ACQUIRING MARQUEE ASSETS ₹ 4000 crore Investment 30% Equity Contribution Platform Acquisition of Luxury, Upper Upscale Asset Right Strategy & Upscale Hotels in key cities L------------------------------------------------------------- L-----------------------
Slide 63: From Signing 1000 Rooms to Over 3,500 Rooms a Year
FROM SIGNING 1000 ROOMS TO OVER 3,500 ROOMS A YEAR 3,542 3,258 1,174 632 468 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 YTD Feb 2019/20 ,-----------, I I I I I #Hotels __________ I I I 8 14 5 22 27 - New Rooms Signed 62 TAJ SELE~IONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICl__.j
Slide 64: From Slowdown to Accelerated Openings
FROM SLOWDOWN TO ACCELERATED OPENINGS (1+ HOTEL A MONTH) 1,556 1,065 625 524 442 T T FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 YTD Feb 2019/20 ,- - - - - - - - - - -1 8 I I I I I #Hotels __________ I I I 5 10 5 12 - New Rooms Opened 63 TAJ SELE~IONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICl__.j
Slide 65: From a Portfolio of 141 Hotels to 200 Hotels
FROM A PORTFOLIO OF 141 HOTELS TO 200 HOTELS 200 179 155 160 25,023 141 22,231 18,965 18,361 16,920 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 YTD Feb 2019/20 1------------ I 31% 39% 43% I I I I I Mgmt. % I I ------------1 28% 32% - #Hotels 0 #Rooms 64 TAJ SELE~IONS VIVANTA GINGER EXPRESSIONS TAJ.
Slide 66: Continue Growth Momentum
CONTINUE GROWTH MOMENTUM ON TARGET TO REACH ASPIRATION 2022 AHEAD OF TIME ■'------------' ■ OPERATIONAL – PIPELINE – PORTFOLIO – •--------- 158 Hotels | 18,845 Keys 42 Hotels | 6,178 Keys 200 Hotels | 25,023 Keys 23% 24% 24% 23% 47% 54% 23% 54% 52% 23% 24% 29% ■ Taj ■ SeleQtions / Vivanta ■ Ginger ■
Slide 67: Re-structured | Organization
RE-STRUCTURED | ORGANIZATION Heart and Soul Like Always, Inclusion & Empowerment Like Never Before 66
Slide 68: Preserving the Core: Tajness
PRESERVING THE CORE: TAJNESS 67 () TAJ SELE~IONS VI VANTA GINGER EXPRESSIONS l'i,• TAj 11-1c1 -., ~
Slide 69: Renewing and Living the Values
RENEWING AND LIVING THE VALUES: TRUST, AWARENESS, JOY Culture Meets Strategy Meets Breakfast Meets Lapel Pins • SOARING HIGHER We Promise We Deliver STARS Long Service Awards The Difference You Make 68 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 70: Enhanced Inclusion and Diversity
ENHANCED INCLUSION AND DIVERSITY Capability-building of under-served women, .,~,, backward communities, artisans & differently abled TAJ PUBLIC SERVICE WELFARE TRUST Affirmative Action, inclusion & diversity in workforce & value chains Varanasi Weavers Program Women’s Micro Enterprise Supported by T
Slide 71: Org Structure Changes to Drive Empowerment
ORG STRUCTURE CHANGES TO DRIVE EMPOWERMENT Area and Zone roles create greater Creation of Centers of Excellence for span of control focused effort and innovation ft1tQ Enhanced Zones for SVP (Operations): career growth Cluster Sales & Revenue to drive greater synergy ,~, Empowered Area roles – .....
Slide 72: Re-engineered: Financial Performance
From Aspiration to Execution RE-ENGINEERED Financial Performance 71
Slide 73: Re-engineered Financial Performance: Key Highlights
RE-ENGINEERED FINANCIAL PERFORMANCE: KEY HIGHLIGHTS Turnaround Sustained EBITDA Margin Healthy Balance Performance Expansion Sheet after 6 Years of Losses Best in a Decade in Consistently over the Sustained Reduction in 9M FY 2019/20 Last 8 Quarters Net Debt / EBITDA 72 TAJ SELE~IONS VIVANTA GINGER
Slide 74: Best Financial Performance in a Decade
BEST FINANCIAL PERFORMANCE IN A DECADE (9 MONTHS FY 2019/20) Particulars – 9M 2019/20 2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 ~ Revenue 3,495 3,314 3,001 3,006 3,035 3,148 3,021 2,775 2,522 2,088 ~ EBITDA 719 592 467 470 480 399 439 398 417 316 EBITDA Margin ~ (%) 20.
Slide 75: Re-engineered | Financial Performance
RE-ENGINEERED | FINANCIAL PERFORMANCE Topline Growth Like Always, Profitability and Margin Expansion Like Never Before 74
Slide 76: IHCL Network Revenue
IHCL NETWORK REVENUE 140 149 200+ HOTELS HOTELS HOTELS ■ ■ ■ 16,900+ 17,800+ 25,000+ CII CII CII = KEYS = KEYS = KEYS II ₹ 6,800+ cr REVENUE 11 ₹ 7,000+ cr REVENUE 11 ? FY 2017 FY 2019 FY 2023 POTENTIAL 75 TAJ SELE~IONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICl__.j
Slide 77: Multiple Revenue Streams Providing Balance of Topline & Margins
MULTIPLE REVENUE STREAMS PROVIDING BALANCE OF TOPLINE & MARGINS ROOM REVENUE F&B REVENUE › 45% SHARE › 40% SHARE › 70% FLOWTHROUGH › 50% FLOWTHROUGH MANAGEMENT CHAMBERS, SPA, FEES KHAZANA › 5% SHARE › 10% SHARE › 75% FLOWTHROUGH › 60% FLOWTHROUGH 76 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--
Slide 78: Room Revenue Performance
ROOM REVENUE PERFORMANCE Superior RevPAR performance in Key Markets +8% +7% +10% +9% +10% Mumbai New Delhi Chennai Hyderabad Bangalore Focus on Maximizing Market Share Retaining No.1 and No. 2 position in Micro Markets *Q3 Same Store RevPAR 77 TAJ SELE~IONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICl__.
Slide 79: F&B Revenue
F&B REVENUE F&B Strong MICE Standardising Leadership presence & Simplifying F&B operations Domestic Rev Domestic Rev to improve ₹2,200 Cr profitability ₹1,000 Cr 78 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 80: Strong Revenue Potential of The Chambers
STRONG REVENUE POTENTIAL OF THE CHAMBERS MORE NEW MEMBERS EACH YEAR HIGHER MEMBERSHIP FEES INCREASE IN ROOM & F&B REVENUE STRATEGIC INVESTMENT IN NEW CHAMBERS LONDON, BENGALURU 79
Slide 81: Management Properties Including Pipeline
84 MANAGEMENT PROPERTIES INCLUDING PIPELINE ~ ₹ 235 Cr Management fees (₹ Crore) 235 EST. MANAGEMENT FEES FOR FY 20 223 210 190 ~70% 173 FLOWTHROUGH TO EBITDA 15-16 16-17 17-18 18-19 19-20E >15% SHARE OF EBITDA TARGETED 50% OF PORTFOLIO ASSET LIGHT 80
Slide 82: Continuous Improvement in Operating Cost Base
RE-ENGINEERED FINANCIAL PERFORMANCE CONTINUOUS IMPROVEMENT IN OPERATING COST BASE 23.5% 23.6% 35.8% 23.3% 34.9% 22.5% 34.2% 33.4% 33.1% 21.6% RAW PAYROLL MATERIAL 9m 15/16 9m 16/17 9m 17/18 9m 18/19 9m 19/20 COST 9m 15/16 9m 16/17 9m 17/18 9m 18/19 9m 19/20 COST 7.2% 28.7% 29.2% 28.4% 28.3% 6.6% 6.6
Slide 83: Consistent EBITDA Margin Expansion (Q-o-Q)
CONSISTENT EBITDA MARGIN EXPANSION (Q-o-Q) Q1 +304 bps Q2 +153 bps +183 bps +404 bps , , 10.8% 17/18 10.8% 15.7% ,---------, : 7.8% : , I I I I I I 17/18 I ..,,, ,' ,, 18/19 7.8% . 19/20 13.3% 18/19 19/20 Q3 Q4 +230 bps +339 bps +148 bps +458 bps 24.7% 24.7% . 29.6% 18.2% 18.2% . 25.1% 17/18 18/19 1
Slide 84: Upswing in US & UK Hotel Performance
UPSWING IN US & UK HOTEL PERFORMANCE PROFIT BEFORE TAXES ($ MN) 1.9 -1.2 -6.7 -6.6 -7.9 83 9M 2015/16 9M 2016/17 9M 2017/18 9M 2018/19 9M 2019/20
Slide 85: Re-engineered | Balance Sheet
RE-ENGINEERED | BALANCESHEET Strong Fundamentals Like Always, Healthy Like Never Before 84
Slide 86: From a Net Debt / EBITDA of 6.47 to 1.76
FROM A NET DEBT / EBITDA OF 6.47 TO 1.76 1.65 ...... ...... ...... ...... ...... ...... ...... ......1.25 ' '' '' 6.47 '' ' ' 0.45 4.74 ' ------ ---------- 2.58 0.37 2.11 0.34 1.76 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Dec 2019 *Trailing Twelve Months Basis | **Net Debt, EBITDA on Pre IND AS basis - N
Slide 87: Approach to Funding
APPROACH TO FUNDING Ginger Portfolio Special Situations High › Sale & Lease Back to generate cash for › GIC Platform renovations › New Ginger in Santa Cruz Cash Requirement Piem, OHL & other Associates Current IHCL Standalone Portfolio › All Group Companies beginning to generate › Low Cash Flows to
Slide 88: Asset Smart Growth
ASSET SMART GROWTH SMARTER BALANCE SHEET SALE AND UNLOCKING VALUE OF MANAGE BACK LATENT ASSETS MONETIZATION OF SIMPLIFY CONTROLS & NON-CORE ASSETS HOLDING STRUCTURES MANAGEMENT GREENFIELD CONTRACTS PROJECTS Low INVESTMENT High 87 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 89: Sale and Manage Back
GATEWAY VIZAG SALE AND MANAGE BACK VIVANTA TRIVANDRUM ₹ 170 CRORES 88 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 90: Unlocking Value of Latent Assets: Ginger Santacruz
UNLOCKING VALUE OF LATENT ASSETS GINGER SANTACRUZ 89 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 91: Monetization of Non-Core Assets
RESIDENTIAL FLATS MONETIZATION OF NON-CORE ASSETS PUNE LAND ₹ 150 crores 90 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 92: Simplify Controls and Holding Structures
SIMPLIFY CONTROLS AND HOLDING STRUCTURES Sea Rock, Taj Enterprises, Taj Madras Flight Kitchen 91 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 93: Monetisation in Last Two Years
SALE AND MANAGE BACK UNLOCKING VALUE OF LATENT ASSETS Gateway Vizag; Vivanta Trivandrum Ginger Santacruz MONETISATION IN LAST TWO YEARS ₹ 425 CRORES MONETIZATION OF NON-CORE ASSETS SIMPLIFY CONTROLS AND HOLDING STRUCTURES Pune Land and Residential flats Sea Rock, Taj Enterprises, Taj Madras Flight K
Slide 94: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED ROCE on TOTAL CAPITAL Hotel EMPLOYED OTHER HOTEL Assets (₹ 7,474 CR) ASSETS ASSETS >16% ₹ 3,580 cr ₹ 3,894 cr *ROCE on Hotel Assets Pertains to Domestic Hotels. Figures as of FY 19. 93 TAJ SELE~IONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICl__.j
Slide 95: Incremental Capital Employed Is Value Accretive
INCREMENTAL CAPITAL EMPLOYED IS VALUE ACCRETIVE 7.9% 6.1% 5.6% 4.2% RETURN ON CAPITAL EMPLOYED FY 15/16 FY 16/17 FY 17/18 FY 18/19 On Incremental Capex & Renovation, we expect to do at least a double-digit Return 94 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~
Slide 96: Strong Institutional Shareholding
STRONG INSTITUTIONAL SHAREHOLDING 14% Retail 39% G 12% Tata Group TATA FII 35% DII * As on 31st December 2019 95 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICl__.j
Slide 97: Recap
RECAP Re-imagined Brandscape: Brand Equity Like Always, Diverse and Enabling Like Never Before Re-imagined Ginger: Value Like Always, Lean Luxe Like Never Before Re-imagined TajSATS: Leadership in Volume Catering Like Always, F&B Offerings Like Never Before Re-imagined Portfolio: Hospitality Like Al
Slide 98: A Short Film on IHCL's Journey of Aspiration to Execution
A SHORT FILM ON IHCL’s JOURNEY OF ASPIRATION TO EXECUTION 97
Slide 99: Iconic Like Always, Profitable Like Never Before
Iconic Like Always, Profitable Like Never Before CAPITAL MARKET DAY | 24th February, 2020
The Indian Hotels Company — Investor Day (February 2020) on 6ix