Indian Hotels Co. Ltd. · NSE:INDHOTEL

Indian Hotels — The Indian Hotels Company — Investor Presentation (June 2019)

34 slides from Indian Hotels's investor presentation, June 2019

  1. Slide 1: Reimagining Brandscape, Restructuring Portfolio, Re-engineering Margins

    Reimagining Brandscape, Restructuring Portfolio, Re-engineering Margins The Art of Execution Puneet Chhatwal MD & CEO, The Indian Hotels Company Limited

  2. Slide 2: South Asia's largest hospitality company with a legacy of 115 years

    We are South Asia’s largest hospitality company with a legacy of 115 years 100+ 4 12 locations continents countries 181 22,000+ $1 Billion+ hotels keys Group revenue 32,000+ associates 2

  3. Slide 3: In February 2018, IHCL embarked on a journey of Reimagination

    In February 2018, IHCL embarked on a journey of Reimagination.. What if the symbol of iconic hospitality took center stage and wrote the next 100 years? 3

  4. Slide 4: Without Strategy, Execution is Aimless, Without Execution, Strategy is Useless

    “Without Strategy, Execution is Aimless, Without Execution, Strategy is Useless” 4 Source: Morris Chang, Founder & Chairman, Taiwan Semiconductor Manufacturing Company

  5. Slide 5: Aspiration 2022

    Aspiration 2022 Unveiled in February, 2018 15 NEW PROJECTS EVERY YEAR 8% EBITDA MARGIN EXPANSION 50-50 PORTFOLIO 5

  6. Slide 6: 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 % 8% Management Fee Income Incremental Income from New Inventory EBITDA Costs MARGIN Operational Payroll EXPANSION Procurements (Raw Materials, Stores

  7. Slide 7: 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

  8. Slide 8: Without Context, Actions have no Meaning

    “Without Context, Actions have no Meaning” 8 Source: Derived from Gregory Bateson’s quote

  9. Slide 9: Megatrends Shaping the Indian Travel & Tourism Industry

    Megatrends Shaping the Indian Travel & Tourism Industry Millennials and Silvers Rising disposable incomes Growing middle class Digital Revolution Emerging destinations Health & Wellness 9

  10. Slide 10: Travel & Tourism in India – The outlook continues to be strong

    Travel & Tourism in India – The outlook continues to be strong 6.7% T&T Contribution to GDP (10 year outlook) $247 Bn 450 2018 - T&T Contribution to GDP 247 12.8% 5.2% 87.2% 94.8% 2018 2028 Domestic International Leisure Business Creation of 10 Mn jobs in the next 10 years Source: WTTC Report - Trav

  11. Slide 11: Indian Hospitality Industry on an Upswing

    Indian Hospitality Industry on an Upswing Industry Same Store Occupancy 65.3% 67.0% (0.2 pp) (1.7 pp) ARR ₹ 5,846 ₹ 5,920 (1.8 %) RevPAR ₹ 3,819 ₹ 3,968 (2.0 %) Source : STR Horwath India Hotel Market Review 2018 report 11

  12. Slide 12: A Good Plan Executed Today is Better than A Perfect Plan Executed Tomorrow

    “A Good Plan Executed Today is Better than A Perfect Plan Executed Tomorrow” 12 Source: Derived from Quote by George S Patton

  13. Slide 13: Reimagining Brandscape: Refreshing and Repositioning our Brands

    Reimagining Brandscape: Refreshing and Repositioning our Brands 13

  14. Slide 14: Reimagining Brandscape: Launching New Brands

    Reimagining Brandscape: Launching New Brands 14

  15. Slide 15: Reimagining Brandscape: Launching New Brands

    Reimagining Brandscape: Launching New Brands 15

  16. Slide 16: Reimagining Brandscape: From a Branded House to a House of Brands

    Reimagining Brandscape: From a Branded House to a House of Brands 16

  17. Slide 17: Reimagining Brandscape: To cater to all segments and price points

    Reimagining Brandscape: To cater to all segments and price points Luxury 85 hotels 12,800 keys Upper Upscale 12 hotels 1,200 keys Upscale 27 hotels 3,800 keys 181 Hotels Lean Luxe 22,000+ Keys 57 hotels 4,900 keys *Portfolio including pipeline Low ARR High 17 17

  18. Slide 18: Restructuring Portfolio: A Monumental Year for New Signings

    Restructuring Portfolio: A Monumental Year for New Signings SMART Strategic Margin Enhancing Asset Management Relationships Tracking 22 + 4 New Contracts Signed in FY 2018/19 Signed in April-May, 2019 18

  19. Slide 19: Restructuring Portfolio: Shift in Business Mix

    Restructuring Portfolio: Shift in Business Mix 23% 20% Holding Company Holding Company 32% 41% Management Contracts Management Contracts 45% 39% Group Companies Group Companies Portfolio as on 31st March 2018 Portfolio as on 30th April 2019 19

  20. Slide 20: Restructuring Portfolio: New Platform for Growth

    Restructuring Portfolio: New Platform for Growth ₹ 4,000 crore (USD 600 Mn) Investment Platform 20

  21. Slide 21: Re-engineering Margins: Cross-Functional Projects with Leadership Focus

    Re-engineering Margins: Cross-Functional Projects with Leadership Focus 21

  22. Slide 22: Re-engineering Margins: Operational Excellence

    Re-engineering Margins: Operational Excellence Employee Guest • High Quality & Smart Renovations Engagement Engagement • Successful Brand Migrations Operational Excellence • Refresh of Brand Standards • Successful Openings Margin Process • Margin Expansion Enhancement Excellence 22

  23. Slide 23: Re-engineering Margins: Do More with Less

    Re-engineering Margins: Do More with Less FOCUS ON IMPACT LEVERAGING PARTNERSHIPS SYNERGIZE One One 23

  24. Slide 24: Vision without Execution is just a Delusion, the Joy is in the RESULTS

    “Vision without Execution is just a Delusion, the Joy is in the RESULTS” 24 Source: Derived from Quote by George S Patton

  25. Slide 25: Strong Consolidated Performance – FY 2018/19

    Strong Consolidated Performance – FY 2018 / 19 Revenue EBITDA EBITDA Margin PAT ₹ 4,595 cr ₹ 913 cr 19.87% ₹ 287 cr 229 10% 25% 184% bps ₹ 4,165 cr ₹ 732 cr 17.58% ₹ 101 cr 25

  26. Slide 26: Achieved Sustainably Quarter on Quarter

    Achieved Sustainably Quarter on Quarter Revenue (₹ Cr) – Up 10% EBITDA (₹ Cr) – Up 25% 1500 1338 1282 400 350 1217 1164 322 300 920 995 864 981 300 265 1000 200 126 116 500 99 100 67 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PY CY PY CY PAT (₹ Cr) – Up 184% EBITDA Margin – Up 229 bps 200 30.0% 25% 26% 25% 162 23%

  27. Slide 27: A Year of Turnaround for USA and UK

    A Year of Turnaround for USA and UK REVENUE EBITDA St. James Court, London 10% St. James Court, London 43% The Pierre, NY 9% The Pierre, NY 24% Taj Campton Place, SFO 8% Taj Campton Place, SFO 69% EBITDA MARGIN RevPAR INDEX St. James Court, London 522 bps St. James Court, London 94  102 The Pierre,

  28. Slide 28: Building a smarter Balance Sheet through Asset Management

    Building a smarter Balance Sheet through Asset Management Monetization Structured Transactions – Sale and Manage Back Unlocking Value of Land Banks – Sale / New Build Exploring Sale & Lease Back Opportunities Management Sale of Non-Core Assets Greenfield Contracts Alliances with Funds and developmen

  29. Slide 29: All levers – EBITDA, Monetization, Equity Infusions used effectively

    All levers – EBITDA, Monetization, Equity Infusions used effectively ₹ /Crores Particulars 2015/16 2016/17 2017/18 2018/19 EBITDA 652 665 732 913 Divestments* 151 1,163 - 246 Equity - 1,500 * Divestments include – Taj Boston; Holding in Belmond, Tata Projects, Titan Ltd, Vizag & Trivandrum hotel, Re

  30. Slide 30: Managing Leverage: Preserving Balance Sheet health

    Managing Leverage: Preserving Balance Sheet health All figures in ₹ /crores 4,216 1,925 1.27 1,889 3,151 0.97 Improving D / E 0.38 0.37 3,323 3,256 4,958 5,148 2015 / 16 2016 / 17 2017 / 18 2018 / 19 Equity Net Debt Net Debt : Equity Net Debt: EBITDA 6.47 4.74 2.58 2.11 30

  31. Slide 31: Strong institutional shareholding

    Strong institutional shareholding Shareholding Pattern* Top institutional investors* Investors % stake in IHCL Retail, 13% Reliance Capital Trustee Company Ltd. 8.07 Tata Group, HDFC Trustee Company Ltd. 5.75 39% ICICI Prudential Life Insurance Company Ltd 2.88 FII, 12% Government Pension Fund Globa

  32. Slide 32: Today, IHCL has a strong foundation in place to reach our Aspiration 2022

    Today, IHCL has a strong foundation in place to reach our Aspiration 2022 2015 / 16 2016 / 17 2017 / 18 Now Industry uptick     Balance Sheet strength     Strategic Clarity     Delivery of Performance     Development Momentum     32

  33. Slide 33: Summary: The Power of Execution

    Summary: The Power of Execution A Strong Beginning ASSET MGMT PORTFOLIO But Miles to Go EXECUTION Before We Reach our Destination Focus on Execution Reimagine | Restructure | Re-engineer 33

  34. Slide 34: Disclaimer

    Disclaimer These presentations may contain forward-looking statements within the meaning of applicable securities laws. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Forward-looking statements are not g

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