Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — 9M FY2013 Earnings Presentation
47 slides from Indian Hotels's earnings presentation, Feb 11, 2013
Slide 1: Analyst Meet: Results for the Nine Months ended December 31, 2012
The Indian Hotels Company Limited Analyst Meet Results for the Nine Months ended December 31, 2012 1 February 11, 2013
Slide 2: Disclaimer
Disclaimer These presentations 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 guaran
Slide 3: Presenter Panel
Presenter Panel Raymond Bickson - Managing Director & CEO Anil P Goel - Executive Director – Finance Deepa Harris - Senior Vice President – Sales & Marketing 3
Slide 4: Outline of Presentation
Outline of Presentation Industry Trends New Inventory Sales & Marketing Initiatives Financial Results 4
Slide 5: Industry Trends
Hotels Resorts and Palares Industry Trends
Slide 6: International Tourist Arrivals 2012
International Tourist Arrivals 2012 International tourist arrivals worldwide grew by 4% in 2012 and reached 1.035 billion international travelers International Tourist Arrivals were up in all regions of the world, with advanced and emerging economy destinations growing at about the same pace. Growth
Slide 7: International Tourist Arrivals 2012
International Tourist Arrivals 2012 Industry Growth has been consistent over all 12 months of the year In terms of outbound markets, APAC region, mainly China, Russia and Malaysia have contributed to the International Tourism Expenditure Growth in double digits. The Outlook for 2013 is a moderate gr
Slide 8: Foreign Tourist Arrivals in India
Foreign Tourist Arrivals in India 2012 vs 2011 8 Apr - Dec :+3% Foreign Tourist Arrivals in 7 Jan – Dec : +5.4% growth over last 6 India (In Lacs) year 5 4 3 2 1 0 Jan Feb Mar Apr May June July August Sept Oct Nov Dec 2011 2012 International Tourist Arrivals has increased to 4.7 mn travelers in Apri
Slide 9: Global Hotel Performance January – December 2012
Global Hotel Performance January – December 2012 The growth has muted globally in the last 3 months of the year driving down the overall growth numbers Americas and Middle East are the only markets showing a healthy positive trend in the hospitality industry Key Performance Indicators Asia/Pacific,
Slide 10: India Hotel Performance – Key cities April – December 2012
India Hotel Performance – Key cities April – December 2012 Apr - Dec 12, % change in Market Scenario 60% 48% 50% 44% 40% 38% 40% 31%33% 31% 30% 26% 23%21% 23% 21% 20% 10%12% 8% 10% 5% 0% India Goa Mumbai Delhi Jaipur Bangalore Chennai Hyderabad Supply % change Demand % change There has been overall
Slide 11: India Hotel Performance – Key cities April – December 2012
India Hotel Performance – Key cities April – December 2012 Apr - Dec 12, % change in performance 10% 4% 5% 1% 1% 0% -5% -2% -3% -3% -3% -5% -4% -6% -5% -10% -9% -8% -8% -8% -10% -15% -20% India Goa Mumbai Delhi Jaipur Bangalore Chennai Hyderabad Occ % change ADR (INR) % change The Demand – Supply mi
Slide 12: Occupancies – Year on Year Trend
Occupancies – Year on Year Trend 62 64 67 58 57 61 60 61 59 56 57 Delhi 52 54 51 50 53 India Bangalore Hyderabad Mumbai Chennai Jaipur Goa 9M 2011/12 9M 2012/13 Source: STR Global Reports Lower occupancies across all cities except Jaipur & Goa, albeit on a higher rooms inventory base. 12
Slide 13: ARRs – Year on Year Trend
ARRs –Year on Year Trend 8128 7797 7834 7168 6842 6256 6276 5999 6036 6136 5854 5479 5479 5052 4909 4702 Mumbai Delhi India Goa Bangalore Hyderabad Jaipur Chennai 9M 2011/12 9M 2012/13 Source: STR Global Reports Rates lower across all cities barring Goa 13
Slide 14: RevPARs – Year on Year Trend
Rev PARs – Year on Year Trend 4973 4711 4763 4248 4098 3602 3856 3707 3428 3278 3519 3338 2963 2591 2478 2487 India Jaipur Mumbai Delhi Chennai Bangalore Hyderabad Goa 9M 2011/12 9M 2012/13 Source: STR Global Reports RevPAR lower across all cities barring Jaipur & Goa, primarily due to demand not gr
Slide 15: New Inventory
Hotels Resorts and Palares New Inventory
Slide 16: Supply Pipeline As of December 2012
Supply Pipeline As of December 2012 Asia Pacific the Growth Centre for Investments in the Industry No of Rooms in Pipeline December 2012 As Pac, 385113, Americas, 380664, 37% 37% MEA/Africa, Europe, 119233, 12% 141273, 14% The demand in Asia Pacific is supported by the growing supply coming into the
Slide 17: Taj Group Inventory
Taj Group Inventory 116 112 107 103 99 88 76 82 62 66 17
Slide 18: Hotels Opened 2012/13
Hotels Opened 2012/13 Hotel Company Rooms Taj Taj Palace Marrakech, Morocco Management Contract 161 Vivanta by Taj Vivanta by Taj, Madikeri, Coorg Management Contract 62 Ginger Hotels Ginger Hotel Faridabad Roots Corporation Ltd 91 Ginger Hotel Vadapalani (Chennai) Roots Corporation Ltd 79 Ginger Ho
Slide 19: Upcoming Development – Balance of 2012/13
Upcoming Development – Balance of 2012/13 Hotel Company Rooms Vivanta by Taj Vivanta by Taj, Gurgaon Management Contract 200 Ginger Hotels Roots Corporation Ltd Ginger Hotel Kormangla (Bangalore) 67 Ginger Hotel Noida (NCR) 80 New Development in Pipeline 2012/13 3 Hotels 347 Rooms New Hotels Opened
Slide 20: Vivanta by Taj, Gurgaon
Vivanta by Taj, Gurgaon Soft Launch : Jan 14th 2013 Grand Launch : Mar 7th 2013 20 20
Slide 21: Upcoming Development
Upcoming Development Hotel Company Rooms Taj Taj Airport Hotel, Terminal 1C, Mumbai Taj GVK 283 Imperial Club by Taj, Tardeo, Mumbai Management Contract 9 Vivanta by Taj Vivanta by Taj, Dwarka IHCL 250 Gateway Gateway, Kolkata Management Contract 200 Gateway, Hubli Management Contract 92 Gateway OMR
Slide 22: Sales and Marketing Initiatives
Sales and Marketing Initiatives 22
Slide 23: Vivanta by Taj Madikeri Coorg Launch Event and Activation
Vivanta by Taj Madikeri Coorg Launch Event and Activation Launch of Vivanta’s 26th hotel – Vivanta by Taj Madikeri Coorg redefining Coorg as a destination beyond coffee – “One with Nature” (180 acres of rainforest, more than 350 species of flora and fauna) – A new Adventure Destination Dec 2012 - Ex
Slide 24: Vivanta by Taj Madikeri Coorg Launch PR Coverage
Vivanta by Taj Madikeri Coorg Launch PR Coverage UK Sunday Times Style Magazine Deccan Herald UK Times US Travel & Leisure The Hindu 24
Slide 25: Building the Brand: Taj Hotels Resorts and Palaces
Building the Brand Taj Hotels Resorts and Palaces Brand Building Activities Continued Brand campaign to sustain awareness Weekends and Celebrations package with a leisure focus – Created Experiential weekend packages for select hotels such as Taj West End Bangalore, Taj Krishna Hyderabad, Taj Falakn
Slide 26: Cinema Suite Launch, 51 Buckingham Gate
Cinema Suite Launch 51 Buckingham Gate, Suites & Residences Launched in November 2012 by Honorable Minister of Tourism Dr Chiranjeevi Cinema Suite presented to you by 51 Buckingham Gate Suites and Residences, London in association with Sabyasachi The Cinema Suite takes its inspiration from motion pi
Slide 27: Sirio Ristorante New York
Sirio Ristorante New York Sirio Ristorante New York launched at The Pierre, A Taj Hotel, New York in October 2012 in partnership with the Maccioni Group The formal opening took place in October and was attended by over 1000 guests. Attendees included Mayor Michael Bloomberg; Police Commissioner Raym
Slide 28: Building the Brand: Vivanta by Taj Hotels & Resorts
Building the Brand Vivanta by Taj Hotels & Resorts Brand Building Activities Vivanta presented the second edition of Barn Fest at Goa on the 25th and 26th Dec 2012 in association with Blue Frog and presented 6 independent new artistes The event was well received and generated great publicity for the
Slide 29: Building the Brand: The Gateway Hotels & Resorts
Building the Brand The Gateway Hotels & Resorts Gateway Revolutions – The Freedom Series, a movement celebrating artists who have left an indelible mark on culture and changed the world around us – A tribute music concert to Bob Dylan at Gateway Bangalore – Gateway Revolutions Beatles tribute wine ‘
Slide 30: Awards & Accolades
Awards & Accolades Taj Group was conferred the Award for Brand Excellence at the Conde Nast Traveller India Readers' Choice Awards 2012 for taking Brand India global Silver Award for Best Luxury Hotel Spa Resort Company at the British Travel Awards 2012. Taj Inner Circle was honoured with the Award
Slide 31: Standalone Financial Performance for Quarter & Nine Months
Standalone Financial Performance for Quarter & Nine Months ended December 31, 2012 31
Slide 32: Profit and Loss Account Quarter 3 2012/13
Profit and Loss Account Quarter 3 2012/13 `/Crores 2012/13 2011/12 % Change Net Sales/Income from Operations 544.55 521.48 4 Other Operating Income - - - Total Income 544.55 521.48 4 a. Consumption of Raw Materials 47.01 44.25 (6) b. Employee Benefits Expense 112.27 124.55 10 c. License Fees 40.83 3
Slide 33: Profit and Loss Account 9 Months 2012/13
Profit and Loss Account 9 Months 2012/13 `/Crores 2012/13 2011/12 % Change Net Sales/Income from Operations 1,320.03 1,248.58 6 Other Operating Income - - - Total Income 1,320.03 1,248.58 6 a. Consumption of Raw Materials 120.06 108.94 (10) b. Employee Benefits Expense 352.49 351.46 (0) c. License F
Slide 34: Turnover 9 Months 2012/13
Turnover 9 Months 2012/13 ` crores 2012/13 2011/12 % Change Room sales 615.08 599.73 3 F&B sales 538.37 492.87 9 Other Income 84.14 77.40 9 Management Fees & Reimbursables 82.44 78.58 5 Total Income 1,320.03 1,248.58 6 Non – Operating Income 39.33 45.04 (13) Total Income including Other Income 1,359
Slide 35: Expenditure
Expenditure Raw Materials Cost – ` 120.06 crores Increase in line with higher F&B revenue for the quarter & nine months. Some cost push due to commodity input cost increase. Employee Benefit Expenses – ` 352.49 Crores Costs controlled on account of various interventions adopted by the Company. For t
Slide 36: Expenditure
Expenditure Depreciation & Amortisation – ` 93.57 crores Higher due to opening of new hotel in Bangalore and renovations in select hotels Other Expenditure – ` 398.23 crores Increase in variable costs linked to business, full period cost of new hotel in Bangalore & higher A&P spends Finance Costs –
Slide 37: Exceptional Items
Exceptional Items `/ Crores Particulars 2012/13 2011/12 Q3 9M Q3 9M Income/(Expense) on surrender of a 0.73 11.37 project (Net off accumulated capital expenditure) Shortfall of Business Interruption (8.73) (8.73) claim Exchange gain/(loss) (1.50) (8.20) (6.81) (7.64) Total (1.50) (8.20) (14.81) (5.0
Slide 38: Consolidated Financial Performance for Quarter & Nine Months
Consolidated Financial Performance for Quarter & Nine Months ended December 31, 2012 38
Slide 39: Major Taj Group companies
Major Taj Group companies Subsidiaries Associates Indian Oriental Hotels Ltd Piem Hotels Ltd Lanka Island Resorts Ltd Taj SATS Air Catering Ltd TAL Lanka Hotel PLC Others Tifco Holdings Ltd [Investment Company] Benares Hotels Ltd Joint Ventures Inditravel Pvt Ltd Taj GVK Hotels & Resorts Ltd United
Slide 40: Consolidated Financials Quarter 3 2012/13
Consolidated Financials Quarter 3 2012/13 `/ Crores 2012/13 2011/12 % Change Net Sales/Income from Operations 1,060.47 1,006.65 5 Other Operating Income - - - Total Income 1,060.47 1,006.65 5 a. Consumption of Raw Materials 102.35 103.12 1 b. Employee Benefits Expense 317.17 310.68 (2) c. License Fe
Slide 41: Consolidated Financials 9 Months 2012/13
Consolidated Financials 9 Months 2012/13 `/ Crores 2012/13 2011/12 % Change Net Sales/Income from Operations 2,726.84 2,462.15 11 Other Operating Income Total Income 2,726.84 2,462.15 11 a. Consumption of Raw Materials 279.91 263.84 (6) b. Employee Benefits Expense 946.22 851.52 (11) c. License Fees
Slide 42: Consolidated Financial Results 9 Months 2012/13
Consolidated Financial Results 9 Months 2012/13 Key factors influencing the consolidated results are listed below: Domestic Portfolio – Lower profit from operations, lower dividend income & foreign exchange translation loss on borrowings – Previous period had an exceptional gain on account of intere
Slide 43: Consolidation Snapshot 9 Months 2012/13
Consolidation Snapshot 9 Months 2012/13 `/Crores Revenue Profit after tax & Minority Interest 2012/13 2011/12 2012/13 2011/12 IHCL Standalone 1320.03 1248.58 62.29 80.14 Subsidiaries 1350.54 1164.19 (58.22) (83.35) Joint Ventures 129.42 116.77 (9.68) (0.50) Associates (7.43) 10.62 Total 2799.99 2529
Slide 44: Treasury
Treasury Liquidity raised/ committed Received ` 373 crores in June, 2012 on conversion of Warrants by Tata Sons Ltd Raised ` 200 crores by issuing low coupon unsecured NCDs to refinance maturing debt Funds Utilized Repayment of ECB in April, 2012 - $ 30 million Repayment of Fixed Deposits between Ap
Slide 45: International Hotels
International Hotels Occupancy (%) ARR ($) RevPAR ($) 9M 9M 9M 9M 9M 9M Hotel Name 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 The Pierre, New York 66 66 658 627 432 415 Taj Boston 70 67 293 285 204 190 Campton Place, San Francisco 77 75 300 294 230 221 St. James Court, London 84 82 307 295 259
Slide 46: Overview of Taj Group – 9 Months
Overview of Taj Group – 9 Months Particulars 2012/13 2011/12 2010/11 2009/10 Number of hotels 116 112 108 103 Rooms Inventory 14,052 13,606 12,849 12,243 Total Revenue – ` / crores 3,708 3,432 3,037 2,691 Total Revenue denote arithmetical aggregate of turnover of all hotels/units irrespective of own
Slide 47: Thank you
Hotels Reso and Palaces Thank you
The Indian Hotels Company — 9M FY2013 Earnings Presentation on 6ix