Indian Hotels Co. Ltd. · NSE:INDHOTEL

Indian Hotels — The Indian Hotels Company — 9M FY2015-16 Earnings Presentation

43 slides from Indian Hotels's earnings presentation, Jan 18, 2016

  1. Slide 1: The Indian Hotels Company Limited Analyst Meet

    The Indian Hotels Company Limited Analyst Meet Results for the Nine Months ended December 31, 2015 1 January 18, 2016

  2. Slide 2: 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 gu

  3. Slide 3: Presenter Panel

    Presenter Panel Rakesh Sarna - Managing Director & CEO Anil P. Goel - Executive Director & CFO Chinmai Sharma – Chief Revenue Officer 3

  4. Slide 4: Outline of Presentation

    Outline of Presentation  Industry Trends  New Inventory – Taj Group  Sales & Marketing Initiatives  Financial Results - Standalone & Consolidated  Treasury Update  International Restructuring & Amalgamation - Update 4

  5. Slide 5: Industry Trends - Global outlook

    Industry Trends Global outlook  International travel and tourism arrivals reached 1,014 million in the period (Jan to Oct) of 2015.  Strong growth in Americas (+5%), Asia Pacific (+4%), Europe (+5%), the Middle East (+5%) and limited data available for Africa points to an estimated (-5%).  Total

  6. Slide 6: Industry Trends - India Market Overview

    Industry Trends India Market Overview  2015-16 (Apr to Dec) saw a supply growth of 4.1%, where demand increased by 10.6% over the previous year. (Source: STR Global)  Most key cities witnessed an increase in supply in the range of 3% to 6%  Healthy demand growth in Bengaluru, New Delhi, Chennai,

  7. Slide 7: Foreign Tourist Arrivals in India

    Foreign Tourist Arrivals in India 24.08 24.00 23.48 In Lakhs 23.19 22.04 22.00 21.54 20.48 20.11 19.69 19.66 20.00 17.86 18.00 16.54 17.46 16.19 16.00 15.02 14.46 14.00 13.19 13.22 13.43 12.35 12.55 12.00 10.00 Jan-Mar Apr- Jun Jul- Sep Oct- Dec 2011 2012 2013 2014 2015  Foreign tourist arrivals in

  8. Slide 8: India Hotel Performance – Key cities Apr – Nov 2015-16

    India Hotel Performance – Key cities Apr – Nov 2015-16 20% Supply Demand Scenario 18.4% 18% 16% 15.1% 14% 13.2% 13.2% 13.3% 11.8% 12.1% 12% 11.2% 10.6% 10% 9.3% 8.0% 7.6% 8% 6.5% 5.8% 6% 4.1% 4.1% 4.3% 3.6% 3.6% 3.7% 3.7% 4% 2.8% 2.8% 1.8% 2% 0% Supply % Change Demand % Change •There has been a 4.1%

  9. Slide 9: Occupancies % – Year on Year Trend

    Occupancies % – Year on Year Trend For April 2015 to November 2015 2015/16 2014/15 80 71 68 70 67 66 65 64 65 62 63 62 59 60 60 58 60 56 57 57 57 58 55 52 50 53 49 50 40 30 20 10 - India Goa Kolkata Mumbai Pune Ahmedabad New Delhi Gurgaon Jaipur Bengaluru Chennai Hyderabad  All Cities , except Kolk

  10. Slide 10: ARR – Year on Year Trend

    ARR– Year on Year Trend For April 2015 to November 2015 2015/16 2014/15 8,000 7,064 7,045 7,000 6,613 6,202 6,316 6,322 6,258 6,023 6,000 5,246 5,531 5,415 5,482 5,391 4,884 5,217 5,000 4,773 4,604 4,541 4,006 4,210 4,241 3,745 4,000 3,819 3,654 3,000 2,000 1,000 - India Goa Kolkata Mumbai Pune Ahme

  11. Slide 11: Taj Group New Inventory in the pipeline

    Taj Group New Inventory in the pipeline 11

  12. Slide 12: Taj Group Inventory

    Taj Group Inventory 62 66 76 82 88 99 103 107 112 118 125 131 136 12

  13. Slide 13: Taj Group Inventory Brand Distribution - December, 2015

    Taj Group Inventory Brand Distribution - December, 2015 Brands Domestic International Total No of Inventory No of Inventory No of Inventory Hotels Hotels Hotels 19 3,146 9 1,821 28 4,967 35 4,896 5 575 40 5,471 33 2,643 1 208 34 2,851 34 3,170 - - 34 3,170 Total 121 13,855 15 2,604 136 16,459 13

  14. Slide 14: Hotels Opened/Opening In 2015/16

    Hotels Opened/Opening In 2015/16 Hotel Company Rooms Opened Taj Downtown, Dubai Management Contract 296 Taj Bangalore Hotel , Bangalore Management Contract 154 Taj Santacruz Hotel, Mumbai Taj GVK 283 Gateway Hotel, Nashik (Expansion) Piem Hotels 78 Gateway Hotel, Hinjewadi, Pune Management Contract

  15. Slide 15: Upcoming Development In 2016/17

    Upcoming Development In 2016/17 Hotel Company Rooms Vivanta by Taj Vivanta by Taj, Amritsar PIEM Hotels 157 Vivanta by Taj- Udaipur Management Contract 112 Vivanta by Taj, Andamans Kaveri Hotels (JV) 50 Gateway Gateway Hotel, Jallundar Management Contract 132 Gateway Hotel , Shimla Management Contra

  16. Slide 16: Sales & Marketing Initiatives

    Sales & Marketing Initiatives 16

  17. Slide 17: Key Projects

    KEY PROJECTS  Overall objective is to synchronise and integrate systems for better distribution, revenue management and Business intelligence.  Centralized Property Management System rollout underway  Move to a single GDS code “TJ” in January  Focus on all direct channels like call centre, brand

  18. Slide 18: Automated Revenue Management System

    Automated Revenue Management System 18 18

  19. Slide 19: Taj Experiences Gift Card

    Taj Experiences Gift Card  Launched the Taj Experiences Gift Card on 7th October 2015  A gifting option is available for the first time on the Taj website for the consumer  The product has been extremely well received with sales in the first quarter of launch crossing Rs1cr 19 19

  20. Slide 20: Focus on Digital

    Focus on Digital Taj Group Desktop Booked Taj Group Mobile Booked Revenues Revenues Desktop site Bookings Mobile Bookings `/crores `/crores Apr May Jun Jul Aug Sep Oct Nov Dec Apr May Jun Jul Aug Sep Oct Nov Dec 2014-15 2015-16 2014-15 2015-16 20

  21. Slide 21: New Openings

    New Openings The Gateway Hotel - Hinjawadi Pune 21

  22. Slide 22: The Gateway Resort Pushkar Bypass Ajmer – soft opening

    The Gateway Resort Pushklar Bypass Ajmer – soft opening 22

  23. Slide 23: Vivanta By Taj, Guwahati

    Vivanta By Taj, Guwahati Lo wu oo one» Wi 10 1 DO & om zp an Dw lwo if at 1m mw) Ww mM iW wo a il TI Wo Ow ow

  24. Slide 24: An Urban oasis – A sensorial junction for the North East of India

    An Urban oasis – A sensorial junction for the North East of India 24

  25. Slide 25: New Openings - Media Coverage

    New Openings - Taj Bangalore, Vivanta by Taj Guwahati & The Gateway Hotel Hinjawadi, Pune VIVANTA BY TAJ, TAJ BANGALORE GATEWAY HINJAWADI, GUWAHATI PUNE The Telegraph Indienaktuell.de, Germany The Economic Times Discover India Bloulin Art Business Traveler - UK Info- US The Economic The Hindu Times

  26. Slide 26: Awards & Accolades in this Quarter

    Awards & Accolades in this Quarter  Taj Campton Place wins second Michelin Star  Taj Falaknuma Palace, Hyderabad was the named the best heritage hotel in India at the Travel + leisure India And South Asia’s Best Awards  Taj Falaknuma to Hyderabad has been awarded first place in the ranking of the

  27. Slide 27: Large Format Stories

    Large Format Stories Departures - US Man’s World Telegraph Platinum- Intimate wedding GQ - France Man’s World – President Forbes - US (ILTM) Vogue - Italy ET Now – MagicBricks - Coorg 27 DNA Food & Hospitality World 27

  28. Slide 28: CNN – Mr. Rakesh Sarna's Interview with Richard Quest

    CNN – Mr.Rakesh Sarna’s Interview with Richard Quest • The Interview speaks about growth prospects and way forward for Taj • It highlights the uniqueness of Taj and its essence called Tajness 28 28

  29. Slide 29: Standalone Financial Performance for the Nine Months ended December 31, 2015

    Standalone Financial Performance for the Nine Months ended December 31, 2015 29

  30. Slide 30: Profit and Loss Account Period ended December 31, 2015

    Profit and Loss Account Period ended December 31, 2015 Quarter III Nine Months `/ crores 2015/16 2014/15 % Change 2015/16 2014/15 % Change Net Sales/Income from Operations 663.05 600.15 10 1586.88 1413.61 12 Other Operating Income - - Total Income from Operations 663.05 600.15 10 1586.88 1413.61 12

  31. Slide 31: Financials Summary

    Financials Summary Period ended December 31, 2015 `/crores Quarter III Nine Months Particulars 2015/16 2014/15 2015/16 2014/15 Total Income 680.73 621.51 1666.51 1471.58 EBITDA 194.79 169.98 325.65 262.80 EBITDA % 29% 27% 20% 18% Profit/(Loss) before Finance Cost & 163.64 140.56 234.86 174.14 Except

  32. Slide 32: Consolidated Financial Performance for the Nine Months Ended December 31, 2015

    Consolidated Financial Performance for the Nine Months Ended December 31, 2015 32

  33. Slide 33: Taj Group Major Companies

    Taj Group Major Companies Company Name Effective Company Name Effective Holding Holding % % Subsidiaries Joint Ventures Piem Hotels Ltd 51.57 Taj GVK Hotels & Resorts Ltd 25.52 Taj SATS Air Catering Ltd 51.00 Taj Madras Flight Kitchen Pvt Ltd 50.00 TIFCO Holdings Ltd [Investment Company] 100.00 Taj

  34. Slide 34: IHCL Consolidated - Profit and Loss Account

    IHCL Consolidated - Profit and Loss Account Period ended December 31, 2015 Quarter III Nine Months `/ crores 2015/16 2014/15 % Change 2015/16 2014/15 % Change Net Sales/Income from Operations 1308.97 1206.88 8 3362.47 3081.34 9 Other Operating Income - - - - - - Total Income from Operations 1308.97

  35. Slide 35: IHCL Consolidated - Financials Summary

    IHCL Consolidated - Financials Summary Period ended December 31, 2015 `/crores Quarter III Nine Months Particulars 2015/16 2014/15 2015/16 2014/15 Total Income 1,333.34 1,235.30 3,453.34 3,147.98 EBITDA 290.37 265.72 525.08 398.96 EBITDA % 21.8% 21.5% 15.2% 12.7% Profit/(Loss) before Finance Cost &

  36. Slide 36: International Hotels

    International Hotels Occupancy (%) ARR ($) RevPAR ($) Hotel Name 2015/16 2014/15 2015/16 2014/15 2015/16 2014/15 The Pierre, New York 77 76 651 675 499 511 Taj Boston 77 79 320 313 247 247 Taj Campton Place, 75 80 347 339 260 273 San Francisco St. James Court, London (₤) 83 83 221 201 184 166 36

  37. Slide 37: Overview of Taj Group

    Overview of Taj Group For the Nine Months ended December 31, 2015 Particulars 2015/16 2014/15 2013/14 2012/13 136 130 125 116 Number of Hotels 16,459 15,708 15,391 14,052 Rooms Inventory 4,851 4,383 4,087 3,702 Total Revenue (`/crores) Total Revenue denotes the arithmetical aggregate of the turnover

  38. Slide 38: Treasury - Debt Position December 2015

    Treasury Debt Position – December 2015 `/crores Particulars Standalone Consolidated Gross Debt * 2,307 5,337 Debenture Redemption Premium 562 727 Less : Liquidity (905) (1,231) Net Debt 1,964 4,833 Net Debt/ Equity** 0.52 1.48 Weighted cost of Debt 7.18% 7.10% * Excluding Compulsory Convertible Debe

  39. Slide 39: Restructuring - Update

    Hotels Resorts and Palares Restructuring - Update

  40. Slide 40: Restructuring – Update

    Restructuring – Update  IHOCO BV , the 100 % offshore subsidiary company has since become IHCL’s apex offshore investment holding company.  Based upon past RBI , Board and other regulatory approvals , the company has substantially shifted its various investments in overseas assets into IHOCO BV. 

  41. Slide 41: Restructuring – Update

    Restructuring – Update  IHCL has acquired the 100% shareholding in LEPPL , the entity that controls 85% ownership of ELEL the company that is Lessee of the Sea Rock site.  Pending required approvals for the amalgamation of LEPPL into IHCL , company has received shareholders approval to facilitate

  42. Slide 42: Restructuring – Update

    Restructuring – Update  On October 19, 2015, the Board of Directors of the company have approved the amalgamation of International Hotel Management Services LLC (formerly known as IHMS Inc.) (IHMS LLC) and Lands End Properties Private Limited (LEPPL), two wholly owned subsidiaries (“transferor comp

  43. Slide 43: Thank you

    Thank you 43

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