Indian Hotels Co. Ltd. · NSE:INDHOTEL

Indian Hotels — The Indian Hotels Company — Q1 2021/22 Earnings Presentation

58 slides from Indian Hotels's earnings presentation, Aug 9, 2021

  1. Slide 1: Cover letter to stock exchanges: Analyst Presentation

    August 09, 2021 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza 1st Floor, New Trading Ring, Bandra Kurla Complex Rotunda Building, P. J. Towers, Bandra (E) Dalal Street, Fort, Mumbai 400 051 Mumbai – 400 001. Scrip Code: INDHOTEL Scrip Code: 500

  2. Slide 2: Global Conference Call Q1 2021/22 Results

    GLOBAL CONFERENCE CALL Q1 2021/22 RESULTS | 9th AUGUST, 2021

  3. Slide 3: World's Strongest Hotel Brand

    WORLD'S STR&3 NGEST HOTEL BRAND : 4 Brand Finance’ HoTELs 50 REPORT 2021 vs

  4. Slide 4: Light After Darkness

    LIGHT AFTER DARKNESS 5.6% H2 2021 9.5% 9.2% Projected growth for Projected acceleration in India’s estimated India’s unemployment rate global economy in 2021 global employment recovery economic growth forecast declined from 11.9% GLOBAL INDIA Sources: World Bank, International Monetary Fund, Interna

  5. Slide 5: Indian Hospitality Sector Witnessing Steady Recovery

    INDIAN HOSPITALITY SECTOR WITNESSING STEADY RECOVERY Increase in Domestic Air M-o-M increase Q1 RevPAR recovery Traffic by 47% in June across all parameters stronger than last year Source: Hotels & Hospitality Overview India, HVS Anarock – July 2021 4

  6. Slide 6: IHCL Performance Key Highlights

    IHCL PERFORMANCE KEY HIGHLIGHTS 5

  7. Slide 7: Witnessing a Sharp V-Shaped Rebound in Revenues

    WITNESSING A SHARP V-SHAPED REBOUND IN REVENUES Revenue Recovery Enterprise Revenues Consol. Revenues Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul 6

  8. Slide 8: Encouraging Revenue Trend v/s Last Year

    ENCOURAGING REVENUE TREND v/s LAST YEAR ₹ Crores Consolidated Revenues - IHCL July 2021 370 324 > Q1 20/21 175 Q1 2020/21 Q2 2020/21 Q1 2021/22 7

  9. Slide 9: IHCL Has Outperformed the Industry in All Key Cities

    IHCL HAS OUTPERFORMED THE INDUSTRY IN ALL KEY CITIES *Data for Domestic Hotels Incl. Ginger RevPAR as a % of Last Year 1324% 1263% Industry IHCL 526% 440% 289% 260% 242% 244% 208% 208% 158% 145% 129% 99% 89% 86% 52% 30% Goa Rajasthan Kerala Kolkata Chennai Hyderabad Delhi & NCR Mumbai Bengaluru Sour

  10. Slide 10: Growing Direct to Consumer (Non-OTA)

    GROWING DIRECT TO CONSUMER (NON-OTA) Direct Channels (Website, TRW, HRO) Direct Channels (Website, TRW, HRO) 77% 74% 71% 69% FY 2019/20 FY 2020/21 Q1 2019/20 Q1 2021/22  Cherishing Togetherness  IHCL WOP  Qmin  amã  Loyalty 9

  11. Slide 11: Containing Fixed Expenses Despite Growth in Revenues

    CONTAINING FIXED EXPENSES DESPITE GROWTH IN REVENUES ₹ Crores Fixed Expenses per Month FY 2019/20 Q1 2020/21 Q1 2021/22 Minimal Creep Back in Fixed Expenses ↔ Despite 2X Growth in Business 163 123 126 *All Numbers Include Fixed Lease Costs 10

  12. Slide 12: Manpower Optimization Continues Across Brands

    MANPOWER OPTIMIZATION CONTINUES ACROSS BRANDS STAFF TO ROOM RATIO SUBSTANTIALLY REDUCED ACROSS BRANDS 2.17 1.95 1.62 1.60 1.53 1.48 1.33 1.30 1.14 1.09 0.92 0.88 0.48 0.39 0.34 Taj SeleQtions Vivanta Ginger IHCL Mar-20 Mar-21 Jun-21 11

  13. Slide 13: Corporate Overheads Further Reduced

    CORPORATE OVERHEADS FURTHER REDUCED ₹ Crores 3.42 3.32 3.21 1.92 Q1 2021/22 349 345 347 39% ↓ 12% v/s Q1 2020/21 213 2017/18 2018/19 2019/20 2020/21 Corporate Overheads Corporate Overhead/Hotel *Excluding Ginger Hotels 12

  14. Slide 14: Unlocking Value in New Brands & Businesses

    UNLOCKING VALUE IN NEW BRANDS & BUSINESSES 13

  15. Slide 15: Re-imagined Ginger Delivers Consistent Performance

    RE-IMAGINED GINGER DELIVERS CONSISTENT PERFORMANCE 60% of pre-COVID 3X 85% Q1 revenue Growth in F&B revenue Q1 EBITDA losses 4.87/5 Ginger Mysore Q1 Guest satisfaction score Sale and manage back 14

  16. Slide 16: Re-imagined Ginger Delivers Consistent Performance

    RE-IMAGINED GINGER DELIVERS CONSISTENT PERFORMANCE 60% of pre-COVID 3X 85% Q1 revenue Growth in F&B revenue Q1 EBITDA losses 4.87/5 Ginger Mysore Q1 Guest satisfaction score Sale and manage back 15

  17. Slide 17: Qmin Celebrated One Year Anniversary

    QMIN CELEBRATED ONE YEAR ANNIVERSARY Launched on Available in India across 25th June 2020 18 cities 70+ restaurants 35 IHCL hotels Guests ordering from INDIA 1.25+ million ~₹ 30+ crores . USA . happy customers enterprise revenues UK . SINGAPORE . QMIN FOOTPRINT UAE 11 ONLINE CITIES . . AUSTRALIA 07

  18. Slide 18: Qmin Celebrated One Year Anniversary

    QMIN CELEBRATED ONE YEAR ANNIVERSARY Launched on Available in India across 25th June 2020 18 cities 70+ restaurants 35 IHCL hotels Qmin Food Truck 17

  19. Slide 19: Qmin Celebrated One Year Anniversary

    QMIN CELEBRATED ONE YEAR ANNIVERSARY Launched on Available in India across 25th June 2020 18 cities 70+ restaurants 35 IHCL hotels Qmin Food Truck 18

  20. Slide 20: amã Stays & Trails: Unlocking Growth Potential

    amã STAYS & TRAILS: UNLOCKING GROWTH POTENTIAL 44 Current portfolio includes presence across bungalows 11 destinations 5 states 14 in pipeline Cliffs Edge Sangrun, Khadakvasla 19

  21. Slide 21: amã Stays & Trails: Unlocking Growth Potential

    amã STAYS & TRAILS: UNLOCKING GROWTH POTENTIAL 44 Current portfolio includes presence across bungalows 11 destinations 5 states 14 in pipeline Nine Palms, Alibag 20

  22. Slide 22: amã Stays & Trails: Unlocking Growth Potential

    amã STAYS & TRAILS: UNLOCKING GROWTH POTENTIAL 44 Current portfolio includes presence across bungalows 11 destinations 5 states 14 in pipeline Tea Planters’ Estates, Munnar 21

  23. Slide 23: Continued Focus on Strengthening Key Enablers

    CONTINUED FOCUS ON STRENGTHENING KEY ENABLERS 22

  24. Slide 24: Fostering the Culture of Tajness

    FOSTERING THE CULTURE OF TAJNESS RESPONSIBILITY | RELIABILITY | RESILIENCE PREVENT | PROTECT | PROVIDE | PERSEVERE Employee Vaccination Drive Employee Videos COVID Care #MealsToSmiles Quarantine Facilities Employee Assistance 23

  25. Slide 25: Fostering the Culture of Tajness

    FOSTERING THE CULTURE OF TAJNESS 24

  26. Slide 26: Fostering the Culture of Tajness

    FOSTERING THE CULTURE OF TAJNESS 25

  27. Slide 27: Fostering the Culture of Tajness

    FOSTERING THE CULTURE OF TAJNESS 26

  28. Slide 28: Financial Performance – Q1 2021/22

    FINANCIAL PERFORMANCE – Q1 2021/22 27

  29. Slide 29: Revenue & EBITDA Snapshot: IHCL Consolidated

    REVENUE & EBITDA SNAPSHOT: IHCL CONSOLIDATED ₹ Crores ₹ Crores Revenue Improvement Decline in EBITDA Losses Q1 2020/21 Q1 2021/22 Q1 2020/21 Q1 2021/22 370 ↑ 47% 175 -123 ↑ 111% -234 28

  30. Slide 30: Revenue & EBITDA Snapshot: IHCL Standalone

    REVENUE & EBITDA SNAPSHOT: IHCL STANDALONE ₹ Crores ₹ Crores Revenue Improvement Decline in EBITDA Losses Q1 2020/21 Q1 2021/22 Q1 2020/21 Q1 2021/22 226 ↑ 44% 117 -78 ↑ 93% -140 29

  31. Slide 31: IHCL Consolidated Financial Performance (Q1 2021/22)

    IHCL CONSOLIDATED FINANCIAL PERFORMANCE (Q1 2021/22) GIRIDHAR SANJEEVI, EVP & CHIEF FINANCIAL OFFICER

  32. Slide 32: Financial Snapshot

    FINANCIAL SNAPSHOT IHCL Consolidated revenues was more than 2x the previous year, with EBITDA Loss almost half of previous year ₹ /crores IHCL Standalone IHCL Consolidated Q1 2021 Q1 2020 Q1 2021 Q1 2020 Revenue 226 117 Revenue 370 175 EBITDA (78) (140) EBITDA (123) (234) PAT PAT (190) (239) (277) (

  33. Slide 33: Revenue Recovery – Q1 2021/22

    REVENUE RECOVERY – Q1 2021/22 Q1 2021/22 Revenue Recovery @38% vs 19/20, Better than last year Domestic Hotels incl. Ginger - Enterprise Total Revenue as a % of Q1 - 19/20 CY PY 38% 14% 45% 15% 44% 7% 25% 24% April May June Q1 International Hotels Total Revenue as a % of Q1 - 19/20 CY PY 37% 7% 36%

  34. Slide 34: Revenue Recovery in Key Cities Q1 2021/22

    REVENUE RECOVERY IN KEY CITIES Q1 2021/22 DOMESTIC HOTELS (INCL. GINGER) CY PY Mumbai Delhi & NCR Bengaluru Goa Chennai Rajasthan Hyderabad Kolkata Kerala Q1 21/22 35% 33% 22% 37% 43% 45% 44% 38% 31% vs 19/20 Q1 20/21 24% 17% 15% 3% 12% 11% 8% 10% 16% vs 19/20 33

  35. Slide 35: Revenue Recovery in Key Cities Q1 2021/22

    REVENUE RECOVERY IN KEY CITIES Q1 2021/22 INTERNATIONAL HOTELS CY PY USA UK Maldives Dubai Africa Sri Lanka Q1 21/22 vs 28% 21% 43% 123% 28% 31% 19/20 Q1 20/21 vs 8% 5% 1% 8% 2% 12% 19/20 34

  36. Slide 36: IHCL Consolidated – Performance Trend

    IHCL CONSOLIDATED – PERFORMANCE TREND ₹ /crores CY PY CY PY 370 (23) TOTAL EBITDA (44) (56) (58) 175 EBITDA (76) REVENUE 150 (101) 123 (123) 97 87 34 53 TOTAL (234) REVENUE Apr May Jun Q1 Apr May Jun Q1 CY PY CY PY (36) (26) (102) (101) PBT PBT (113) (142) PAT PAT (89) (92) (158) (97) (118) (135) (3

  37. Slide 37: IHCL Standalone – Performance Trend

    IHCL STANDALONE – PERFORMANCE TREND ₹ /crores CY PY CY PY 226 (11) TOTAL EBITDA (26) (40) (45) (33) 117 EBITDA REVENUE 93 (61) 83 (78) 50 36 60 21 TOTAL REVENUE (140) Apr May Jun Q1 Apr May Jun Q1 CY PY CY PY (80) (98) (59) (51) (81) (111) (83) (70) (88) (69) (77) PBT PBT PAT PAT (74) (220) (291) (1

  38. Slide 38: Revenue Drivers

    REVENUE DRIVERS Revenue Recovery Asset Light Growth New & Reimagined Business  Occupancy - 28.5% (+ 7 PP)  Portfolio - 221 Hotels,  Ginger – 54 Operational 27500+ Rooms incl. pipeline Hotels  ADR - ₹ 7024 (+ 45%)  New Openings - 10+  Qmin - 18 Cities, 35 Expected in 2021/22 Hotels, 70+Restaura

  39. Slide 39: Cost Management: Driving Operating Leverage

    COST MANAGEMENT: DRIVING OPERATING LEVERAGE ₹ /crores Consolidated Standalone 111% 20% 93% 18% 493 370 410 304 226 257 175 117 Revenue Expenditure Revenue Expenditure CY PY CY PY  Corporate Overheads at ₹ 54 crores ( Q1 20/21 ₹ 62 crores)  Fixed Cost/Month - ₹ 126 crores (Q1 20/21 ₹ 123 crores) 

  40. Slide 40: International Hotels: USA & UK Showing Improvement

    INTERNATIONAL HOTELS: USA & UK SHOWING IMPROVEMENT ₹ /crores USA UK 312% 208% 57 24 6 18 -14 -13 -42 -5 Revenue EBITDA CY PY Revenue EBITDA CY PY  Cost Rationalisation at The Pierre, includes:  Manpower Rationalization  Lease Renegotiation  Surrender of leased Ball Room Resultant Permanent Cost

  41. Slide 41: Exceptional Items Reducing - Consolidated

    EXCEPTIONAL ITEMS REDUCING - CONSOLIDATED Exceptional Items ₹ /crores Q1 Particulars 2021/22 2020/21 Var. Change in fair value of derivative contracts 6 4 2 Exchange Gain / (Loss) - IHMS SA 7 - 7 Profit on acquisition of JV - 82 (82) Gain on Sale of Property – Ginger Mysore 7 - 7 Total 20 86 (66) Op

  42. Slide 42: Exceptional Items Reducing - Standalone

    EXCEPTIONAL ITEMS REDUCING - STANDALONE Exceptional Items ₹ /crores Q1 Particulars 2021/22 2020/21 Var. Gain / (Loss) on Change in fair value of derivative contracts 6 4 2 Provision for Pierre Cash Loss funding (13) (42) 29 Provision for Taj Cape Town Cash Loss finding (4) (4) Total (11) (38) 27 Ope

  43. Slide 43: Q1 2021/22 - Performance of Key Subsidiaries

    Q1 2021 / 22 - PERFORMANCE OF KEY SUBSIDIARIES ₹ /crores Legal Entity Revenue EBITDA UOH Inc. - USA 57 (14) St. James Court - UK 17 (6) PIEM Hotels Ltd. 25 (20) Roots Corporation Ltd 30 (1) 42

  44. Slide 44: Selective Capex Focus

    SELECTIVE CAPEX FOCUS › Flagship Ginger Hotel in Santa Cruz - ₹ 200 crs › Taj Mahal, New Delhi Renovation › Spent ₹ 105 crs Committed ₹ 70 crs  St James Court London  Chambers & New Coffee Shop - GBP 7 Mn The Pierre, NY – Ballroom Renovation (net)* $ 6 Mn *Pierre Ballroom capex of $ 13 Mn of which

  45. Slide 45: Management of Liquidity & Borrowings

    MANAGEMENT OF LIQUIDITY & BORROWINGS Liquidity  Cash & Lines exceeding ₹ 1,000 crores. Borrowings Q1 - 2021/22  Repaid Cross Currency Swaps ₹ 146 crores. No more exchange fluctuation on this account.  Maximised ECLGS - ₹ 144 crores at attractive interest rates. July, 2021  Replaced high cost 9.9

  46. Slide 46: Debt Position

    DEBT POSITION ₹ /crores Standalone Consolidated Particulars Jun 30, 2021 Mar 31, 2021 Jun 30, 2021 Mar 31, 2021 Gross Debt 2,886 2,592 4,042 3,633 Liquidity (271) (413) (430) (523) Net Debt 2,615 2,179 3,612 3,110 Weighted cost of Debt (%) 8.3 7.8 6.9 6.5 Net Debt to Equity 0.66 0.52 0.91 0.73 45

  47. Slide 47: Summarised Financials

    SUMMARISED FINANCIALS 8 ~ 3S TAJ SELEQTIONS VIVANTA GINGER ama Qmin TA@

  48. Slide 48: IHCL Consolidated - P&L

    IHCL CONSOLIDATED - P&L ₹ /crores Q1 Particulars 2021/22 2020/21 Var% Revenue from Operations 345 144 140% Non-Operating Revenue 26 32 -19% Total Revenue 370 175 111% Raw Material Cost 28 9 206% Employee Benefits 249 240 4% Fuel, Power and Light 44 31 44% Admin Expenses 77 55 40% Other Expenditure 9

  49. Slide 49: IHCL Standalone - P&L

    IHCL STANDALONE - P&L ₹ /crores Q1 Particulars 2021/22 2020/21 Var% Revenue from Operations 207 95 118% Non Operating Revenue 19 22 -14% Total Revenue 226 117 93% Raw Material Cost 18 6 180% Employee Benefits 147 154 -4% Fuel, Power and Light 30 19 59% Admin Expenses 47 34 38% Other Expenditure 62 4

  50. Slide 50: Q&A

    Q&A 49 Tay SELE(QTIONS VIVANTA GINGER EXPRESSIINS Wwe@ | H C l 4

  51. Slide 51: 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

  52. Slide 52: Q1 2021/22 – IHCL Standalone Revenue Metrics

    Q1 2021/22 – IHCL STANDALONE REVENUE METRICS Particulars Apr May Jun Q1 Q1 LY Occupancy % 33.8 19.3 32.3 28.4 20.5 ARR in ₹ 7,503 6,338 6,945 7,024 4,848 RevPAR in ₹ 2,535 1,223 2,242 1,992 992 (₹/ crores) Room Revenue 34 17 30 82 40 F & B Revenue 27 12 27 65 20 Other Revenue* 22 21 36 79 57 Total R

  53. Slide 53: Q1 2021/22 – Domestic Network Revenue Metrics

    Q1 2021/22 – DOMESTIC NETWORK REVENUE METRICS Particulars Apr May Jun Q1 Q1 LY Occupancy % 32.9 20.9 32.3 28.6 15.3 ARR in ₹ 5,236 3,638 4,749 4,656 3,349 RevPAR in ₹ 1,722 761 1,532 1,331 513 (₹/ crores) Room Revenue 85 39 76 201 75 F & B Revenue 62 26 61 149 31 Other Revenue* 21 19 26 65 55 Total

  54. Slide 54: Brandscape

    BRANDSCAPE LUXURY SELECT HOTELS UPSCALE LEAN LUXE 27,500+ KEYS 221 HOTELS 13,600 KEYS 1400 KEYS 5,300 KEYS 7,200 KEYS 92 HOTELS 16 HOTELS 35 HOTELS 78 HOTELS *Portfolio figures include hotels under various stages of development 53

  55. Slide 55: Operating Portfolio

    OPERATING PORTFOLIO Inventory by Geography Inventory by Contract Type Intl, Holding 2654 Management Company, Contracts, 4545 6319 Dom, Group 16914 Companies, 8561 Dom Intl Holding Company Group Companies Management Contracts As of 31st July 2021, IHCL has 167 hotels operational with 19,568 Rooms 54

  56. Slide 56: Shareholding Pattern

    SHAREHOLDING PATTERN 19% Retail 41% 13% Tata Group FII 28% DII * As on 30th Jun 2021 55

  57. Slide 57: Awards and Accolades

    I AWARDS AND ACCOLADES WORLD'S STR&3 NGEST HOTEL BRAND INDIA’S STRONGEST TAJ BRAND AMONGST INDIA'S TOP TWO STRONGEST BRANDS ACROSS SECTORS, Brand Finance tard Vaive Report ings 2021 TAT SELEQTIONS VIVANTA GINGER expressions TI INCL

  58. Slide 58: Global Conference Call Q1 2021/22 Results

    GLOBAL CONFERENCE CALL Q1 2021/22 RESULTS | 9th AUGUST, 2021

The Indian Hotels Company — Q1 2021/22 Earnings Presentation on 6ix