Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — FY2016 Earnings Presentation
63 slides from Indian Hotels's earnings presentation, May 19, 2016
Slide 1: Analyst Meet: Results for the Year ended March 31, 2016
The Indian Hotels Company Limited Analyst Meet Results for the Year ended March 31, 2016 1 May 19, 2016
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
Slide 3: Presenter Panel
Presenter Panel Rakesh Sarna - Managing Director & CEO Anil P. Goel - Executive Director & CFO Chinmai Sharma – Chief Revenue Officer 3
Slide 4: Outline of Presentation
Outline of Presentation Industry Trends New Inventory – Taj Group Sales & Marketing Initiatives Financial Results - Standalone & Consolidated Treasury Other Update 4
Slide 5: Industry Trends: Global outlook
Industry Trends Global outlook International travel and tourism arrivals grew by 4.4% to reach a total of 1,184 million in 2015, 50 million more than in 2014. Strong growth in Americas (+5%), Asia Pacific (+5%), Europe (+5%), the Middle East (+3%), whilst limited data available for Africa points
Slide 6: Industry Trends: India Market Overview
Industry Trends India Market Overview 2015 /16 saw a supply growth of 3.9%, where demand increased by 10.5% 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, Jaipur, Kochi, Hyderabad, Chandi
Slide 7: Foreign Tourist Arrivals in India
Foreign Tourist Arrivals in India 28.00 In Lakhs 25.08 25.00 24.08 22.81 22.04 22.17 22.00 20.48 21.54 19.69 20.11 19.66 19.00 17.86 17.62 16.54 15.64 16.00 15.02 14.46 13.19 13.2213.43 13.00 12.3512.55 10.00 Jan-Mar Apr- Jun Jul- Sep Oct- Dec 2011 2012 2013 2014 2015 2016 Foreign tourist arrivals
Slide 8: India Hotel Performance – Key cities
India Hotel Performance – Key cities 2015 / 16 20% Supply Demand Scenario 18% 17.2% 16% 14% 13.5% 12.3% 12.3% 12.6% 11.9% 12% 11.4% 10.5% 9.9% 10% 8.2% 8% 7.4% 6.7% 6% 5.3% 3.9% 4.1% 4.0% 4.3% 3.7% 3.6% 3.4% 3.6% 4% 2.8% 3.0% 2.0% 2% 0% Supply % Change Demand % Change •There has been an overall 3.9%
Slide 9: Occupancies % – Year on Year Trend
Occupancies % – Year on Year Trend 2015/16 2014/15 80 73 71 70 71 70 66 63 67 66 65 62 61 61 62 62 61 59 60 58 58 58 60 55 55 57 53 50 40 30 20 10 - India Goa Kolkata Mumbai Pune Ahmedabad New Delhi Gurgaon Jaipur Bengaluru Chennai Hyderabad All Cities have witnessed improved occupancy levels over
Slide 10: ARRs– Year on Year Trend
ARRs– Year on Year Trend 2015/16 2014/15 8,000 7,499 7,328 7,434 7,032 7,000 6,493 6,458 6,323 6,448 5,740 5,637 5,572 6,000 5,575 5,667 5,544 4,982 4,913 4,867 4,892 4,780 5,000 4,115 4,197 4,870 3,876 4,000 3,806 3,000 2,000 1,000 - India Goa Kolkata Mumbai Pune Ahmedabad New Delhi Gurgaon Jaipur
Slide 11: Taj Group New Inventory in the pipeline
Taj Group New Inventory in the pipeline 11
Slide 12: Taj Group Inventory
Taj Group Inventory 62 66 76 82 88 99 103 107 112 118 125 131 136 12
Slide 13: Taj Group Inventory Brand Distribution
Taj Group Inventory Brand Distribution Brands Domestic International Total No of Inventory No of Inventory No of Inventory Hotels Hotels Hotels 20 3,415 10 1849 30 5,264 35 4,946 5 575 40 5,521 31 2,596 1 208 32 2,804 34 3,170 - - 34 3,170 Total 120 14,127 16 2,632 136 16,759 13
Slide 14: Hotels Opened In 2015/16
Hotels Opened In 2015/16 Hotel Company Rooms TAJ Taj Downtown, Dubai Management Contract 296 Taj Bangalore Hotel , Bangalore Management Contract 154 Taj Santacruz Hotel, Mumbai Taj GVK 283 Vivanta Vivanta by Taj, Guwahati IHCL 150 Gateway Gateway Hotel, Nashik (Expansion) Piem Hotels 78 Gateway Hote
Slide 15: New Launches in 2015/16: Taj Santacruz
New Launches in 2015 / 16 Taj Santacruz 15
Slide 16: New Launches in 2015/16: Taj Bangalore
New Launches in 2015 / 16 Taj Bangalore 16
Slide 17: New Launches in 2015/16
New Launches in 2015 / 16 VBT Guwahati Taj Santacruz Taj Bangalore 17
Slide 18: New Launches: Taj Safaris-Meghauli Serai
New Launches in 2015 / 16 Taj Safaris-Meghauli Serai 18
Slide 19: New Launches: Gateway Hotel, Hinjewadi
New Launches in 2015 / 16 Gateway Hotel, Hinjewadi 19
Slide 20: New Launches in 2015/16
New Launches in 2015 / 16 Taj Safaris-Meghauli The Gateway Resort, Ajmer Serai Gateway Hotel, Hinjewadi 20
Slide 21: Upcoming Development in 2016/17
Upcoming Development in 2016/17 Hotel Company Rooms Taj Taj Exotica, Havelock, Andamans Kaveri Hotels (JV) 75 Safari Meghauli Serai – Chitwan National Park, Nepal (Soft Opened) Management Contract 26 Vivanta by Taj Vivanta by Taj, Amritsar PIEM Hotels 157 Vivanta by Taj, Udaipur Management Contract
Slide 22: Sales & Marketing Initiatives
Sales & Marketing Initiatives 22
Slide 23: Update on Key Projects
Update on Key Projects Standardized Opera PMS rollout IDEAS Revenue Management System installation at key hotels Moved to a single GDS code “TJ” Loyalty program revamped Focus on Analytics and Business Intelligence Digital Platforms 23
Slide 24: New website launched in March, 2016
New website launched in March, 2016 Our goal is to close the gap between the wonderful hotel experiences and the online user experiences across all devices and platforms 24
Slide 25: Tajhotels.com
Tajhotels.com TAJ OUR HOTELS TA} INNERCIRCLE HOME | contactus Q ] menu = | HAPPENINGS AT TAJ ao adh i fi a oi) a iD 1 up wa a i GD wh a ao ay Gu (1D Ti) oh a0 a MEGHAULI SERAI, A TAJ SAFARI LODGE INTRODUCING: VIVANTA BY TAJ GUWAHATI Ta| Safaris expands their footprint, from the tiger heartland in Ce
Slide 26: Tajhotels.com Authentic and unbiased Guest reviews
Tajhotels.com Authentic and unbiased Guest reviews 26
Slide 27: Digital Transformation
Digital Transformation Desktop & Mobile Bookings Sep Oct Nov Dec Jan Feb Mar 2014-15 2015-16 27
Slide 28: PR & Media Outreach
PR & Media Outreach Global Communications • Brand building efforts in UK, US, MENA and South East Asia • CNN interview with Mr. Sarna – Quest Means Business segment – 3.45 minutes on prime time television aired worldwide in January, 2016 • CNN Business Traveller show – Interview with Chinmai / Tajne
Slide 29: Cover Stories
COVER STORIES wl ie COVER STORY ‘TREE HOUSE DESIGNS ae she ite ri rs Bac Aga y- HOSPITALITY
Slide 30: Social Media Footprint- 2015/16 vs. 2014/15
Social Media Footprint- 2015 / 16 vs. 2014/15 28% in followers 42% in followers 267% in followers 30
Slide 31: Few of Our Esteemed Guests
Few of Our Esteemed Guests PM Shinzo Abe President Francois Hollande HH Al Nahyan Sheikh Hamad Morgan Freeman Make in India Week - Mumbai President Ameenah Gurib-Fakim PM John Key President Atambayev Premier Kathleen Waynne Duke & Duchess of Cambridge 31
Slide 32: Standout Recognition
Standout Recognition Umaid Bhawan Palace, Jodhpur Recognized as the Best Hotel in the World by TripAdvisor 32
Slide 33: Awards & Accolades
Awards & Accolades Taj Hotels Resorts and Palaces Conde Nast Traveller UK Readers’ • Featured on the list of 10 of the World's Best Luxury Hotel Brands by Travel Awards Forbes magazine • The Taj Mahal Palace, Mumbai was • Named the Best Hotel Group in India at the Travel + Leisure India & the only I
Slide 34: Standalone Financial Performance for the Year ended March 31, 2016
Standalone Financial Performance for the Year ended March 31, 2016 34
Slide 35: IHCL Standalone Key Indicators
IHCL Standalone Key Indicators `/crores `/crores Turnover EBITDA 2,500 2,382 600 23 13 537 % 2,104 % 438 400 2,000 200 1,500 - 2014/15 2015/16 2014/15 2015/16 `/crores `/crores Profit Before Tax (before Exceptional Items) Profit After Tax 322 300 300 231 201 200 200 39 % 100 100 0 - 2014/15 2015/16
Slide 36: Profit and Loss Account Year ended March 31, 2016
Profit and Loss Account Year ended March 31, 2016 Quarter IV Full Year `/ crores 2015/16 2014/15 % Change 2015/16 2014/15 % Change Net Sales/Income from Operations 686.82 610.77 12 2273.70 2024.38 12 Other Operating Income - - Total Income from Operations 686.82 610.77 12 2273.70 2024.38 12 Cost of
Slide 37: Income Details
Income Details ` / Crores 2015/16 2014/15 % Change Room Income 1002.33 908.34 10 Food &Beverages and Banquet Income 918.20 813.42 13 Management & Operating fees 148.95 137.74 8 Other Operating Income 204.22 164.88 24 Income from Operations 2273.70 2024.38 12 Non Operating Income 108.62 79.22 37 Tota
Slide 38: Expenditure
Expenditure Raw Materials Cost – ` 209.82 crores Increase in line with higher F&B revenue for the year. Some cost push due to commodity input cost increase. Employee Benefit Expenses – ` 615.98 Crores Costs controlled on account of various interventions adopted by the Company. Payroll cost highe
Slide 39: Expenditure
Expenditure Other Expenditure - ` 692.5 crores Increase during the year aligned with increase in turnover. Rent rates & Taxes, Repairs & Maintenance costs nominally increased during the year. Conversely, the advertising costs were lower when compared to PY. Depreciation & Amortisation – ` 127.08
Slide 40: Exceptional Items
Exceptional Items ` / Crores Particulars 2015/16 2014/15 Profit on Sale of Investments 56.53 - Exchange Gain/(Loss) (56.66) (24.75) Diminution in value of long term investments (0.35) (213.49) Others (9.83) 9.54 Total (10.21) (228.70) The company divested its holding in Tata Projects Ltd during th
Slide 41: Financials Summary
Financials Summary Year ended March 31, 2016 `/crores Quarter IV Full Year Particulars 2015/16 2014/15 2015/16 2014/15 Total Income 715.81 632.02 2382.32 2103.60 EBITDA 211.52 175.09 537.17 437.89 EBITDA % 30% 28% 23% 21% Profit/(Loss) before Finance Cost & 175.23 145.90 410.09 320.04 Exceptional It
Slide 42: IHCL Standalone Financials Balance Sheet
IHCL Standalone Financials Balance Sheet ` / Crores March 31, 2016 March 31, 2015 Shareholders’ Funds 3,921 2,615 Non- Current Liabilities Long-term borrowings 1,558 2,898 Other Long Term Liabilities 485 585 Long-term Provisions/ Deferred Tax Liabilities (net) 352 218 Current Liabilities Short Term
Slide 43: Dividend
Dividend The Board of Directors have recommended a final dividend of 30% for 2015/16. 43
Slide 44: Consolidated Financial Performance for the Year Ended March 31, 2016
Consolidated Financial Performance for the Year Ended March 31, 2016 44
Slide 45: 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
Slide 46: IHCL Consolidated Key Indicators
IHCL Consolidated Key Indicators `/crores `/crores Turnover 5,000 4,706 EBITDA 4,287 800 732 4,000 10 25 587 % 600 % 3,000 400 2,000 200 1,000 2014/15 2015/16 - 2014/15 2015/16 `/crores `/crores Profit Before Tax (before Exceptional Items) Profit After Tax 0 200 2014/15 2015/16 169 (61) 150 41 (100)
Slide 47: IHCL Consolidated - Profit and Loss Account
IHCL Consolidated - Profit and Loss Account Year ended March 31, 2016 Full Year `/ crores 2015/16 2014/15 % Change Net Sales/Income from Operations 4,590.92 4,188.64 10 Other Operating Income - - - Total Income from Operations 4,590.92 4,188.64 10 Cost of Materials Consumed 504.48 443.09 14 Employee
Slide 48: IHCL Consolidated - Financials Summary
IHCL Consolidated - Financials Summary Year ended March 31, 2016 `/crores Full Year Particulars 2015/16 2014/15 Total Income 4,706.27 4,287.36 EBITDA 731.93 587.28 EBITDA % 15.6% 13.7% Profit/(Loss) before Finance Cost & 415.26 296.00 Exceptional Item Profit/ (Loss) after Finance Costs but before 16
Slide 49: IHCL Consolidated Financials Balance Sheet
IHCL Consolidated Financials Balance Sheet `/crores Particulars March 31, 2016 March 31, 2015 Shareholders’ Funds 3,218 2,227 Minority Interest 835 738 Non- Current Liabilities Long-term borrowings 3,685 4,598 Other Long Term Liabilities 489 586 Long-term Provisions/ Deferred Tax Liabilities (net) 4
Slide 50: Overview of Taj Group
Overview of Taj Group For the Year ended March 31, 2016 Particulars 2015/16 2014/15 2013/14 2012/13 136 130 125 118 Number of Hotels 16,459 15,658 15,391 14,331 Rooms Inventory 6,717 6,015 5,677 5,102 Total Revenue (`/crores) Total Revenue denotes the arithmetical aggregate of the turnover of all ho
Slide 51: Treasury: Debt Position
Treasury Debt Position `/crores Particulars Standalone Consolidated Gross Debt 2,108 4,781 Debenture Redemption Premium (Accrued) 318 331 Less : Liquidity (158) (395) Net Debt 2,268 4,717 Net Debt/ Equity 0.58 1.47 Weighted cost of Debt 8.8% 7.3% Of the aggregate Sea Rock debt of ` 1,400 crores, a
Slide 52: IND-AS – Effective April 1, 2016
IND-AS – Effective April 1, 2016 Effective April 1, 2016, IHCL will migrate to the new Accounting Standards – IND-AS. Transition to IND-AS will result in change in presentation of accounts, inter alia, in the following areas – Revenue recognition – Fair Value concept – Time Value of Money ( econ
Slide 53: Restructuring of Overseas Investments
Restructuring of Overseas Investments 53
Slide 54: Restructuring of Overseas Investments
Restructuring of Overseas Investments IHOCO BV , the 100 % offshore subsidiary company has since become IHCL’s apex offshore Investment holding company. Holdings in the, USA, UK , Sri Lanka, Maldives hotels and the two London restaurants have since been shifted to IHOCO BV Thus, 8 owned hotels
Slide 55: Scheme(s) of Arrangement - Update
Scheme(s) of Arrangement - Update 55
Slide 56: Amalgamation – Update
Amalgamation – Update The Board of Directors at its meeting held on October 19, 2015 have approved the amalgamation of International Hotel Management Services LLC (formerly known as IHMS Inc.) and Lands End Properties Private Limited, two wholly owned subsidiaries (“transferor companies”) into the
Slide 57: Amalgamation – Impact
Amalgamation – Impact The Impact on IHCL’s reserves on account of the two proposed amalgamation is summarised below `/crores Particulars Standalone Consolidated Books Books Reserve & Surplus as on March 31, 2016 3,822 3,119 LEEPL- Scheme of Arrangement (307) (293) IHMS- Scheme of Arrangement (1,33
Slide 58: Amalgamation - Timelines
Amalgamation - Timelines Particulars Dates Milestones achieved Filing of IHMS LLC & LEPPL Scheme with SEBI October 21, 2015 Receipt of SEBI Approval December 19, 2015 High Court order for Shareholders / Creditors Meeting February 26,2016 Shareholders approval vide Postal Ballot ( for LEPPL April 28,
Slide 59: Divestment
Divestment 59
Slide 60: Divestments during the year
Divestments during the year Divestments during the year :- – Tata Projects Ltd - ` 56 crores – Belmond shares – Of our holding of 7.13 million shares, 2 million shares were sold during previous year - $ 12 million ( ` 80 crores) The Sale Proceeds from above have been utilised to reduce the Debt.
Slide 61: Divestments – New Proposal
Divestments – New Proposal The Board of Directors has accorded its approval to allow United Overseas Holding Inc (UOH)., a wholly owned subsidiary of the Company, to pursue the option of divestment of Taj Boston by way of sale/ disposal of the LLC interests in IHMS (Boston) LLC (a direct subsidiar
Slide 62: Stock Price Movement April 2015 – March 2016
Stock Price Movement April 2015 – March 2016 IHCL v/s BSE Sensex 35,000 140 30,000 120 25,000 100 20,000 80 15,000 60 10,000 40 5,000 20 0 0 1/Apr/15 1/May/15 1/Jun/15 1/Jul/15 1/Aug/15 1/Sep/15 1/Oct/15 1/Nov/15 1/Dec/15 1/Jan/16 1/Feb/16 1/Mar/16 1/Apr/16 1/May/16 Sensex IHCL 62
Slide 63: Thank you
Hotels Reson and Palares. Thank you
The Indian Hotels Company — FY2016 Earnings Presentation on 6ix