Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q1 FY23 Earnings Presentation
56 slides from Mahindra Holidays & Resorts India's earnings presentation, Jul 30, 2022
Slide 1: ClubMahindra Presentation on Financial Results Q1 FY23
ClubMahindra July 30, 2022 MHRIUSE/22-23/43 Listing Compliance Department of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block Floor 25, PJ Towers, Bandra-Kurla Complex Dalai Street Bandra E, Mumbai — 400 051 Mumbai — 400 001 Scrip Code: MH
Slide 2: Club Mahindra awards and resorts
/' INDIA'S /f RANK #20 NA /, INDIA'S NA li I MOST POPULAR 0 V 'ts1 v if INDIA'S BEST If ,— ' BEST WORKPLACE N1 0 RESORT ),,, ‘,4 COMPANIES TO iy k4 IN HOTELS& RESORTS, afl s& ' CHAIN ,',., '44WORK FOR, 2022 it , 4 2021& 2022 di,' ClubMahindra TIMES TRAVEL AWARD 2019 GREAT PLACE GREAT PLACE TO WORK°
Slide 3: Outline
Outline Ac 4 CLubMahindm Highlights of MHRIL (Standalone) Performance . 1 03 MHRIL, - Q1 FY23 Performance 07 J - Key Trends Er Business Environment 1 18 - Unique Er Profitable Vacation Ownership Business ! 22 - Long-Term Value Creation 30 - ESG Initiatives 36 Holiday Club Resorts - Q1 FY23 Performan
Slide 4: Highlights of MHRIL (Standalone) Performance
Ae 4 CLubMahindm Highlights of I MHRIL (Standalone) - - 7 7— • Performance • • _ • .•_ . __ • • -' . • -• - - - • -- I .- CLUB MAHINDRA ASHTAMUDI • . - - - KERALA _ •
Slide 5: Record-setting Quarterly Results despite challenging environment
Record-setting Quarterly Results despite challenging environment joVir CLubMahindm Inventory Acceleration ( • 800+ keys added during pandemic Improved Sales Mix • Enhanced options for members • Higher Sales realizations (AUR) • Improved product mix Growing Resort Revenues • Rise in Occupied Room Nig
Slide 6: Strong Operational Performance in Q1
Strong Operational Performance in Q1 Ae 4 CLubMahindm Member Base Resort Performance Room Inventory 3,807 89% 107 Member Additions Occupancy' Room Additions 2,69,445 Rs. 84 Crs 4,617 Cumulative Member Base Highest ever Resort Revenue Room Inventory Profitability Balance Sheet Er Liquidity Great Plac
Slide 7: PBT growth driven by Higher Room Inventory, Occupancies and Resort & VO Incomes
PBT growth driven by Higher Room Inventory, Occupancies sa and Resort Er VO Incomes Ave CLubMahindm Sales Value incl. Room Inventory 3,619 4,198 4,617 upgrades 193 20 146 (No. of keys) (Rs. Crs) I 89% 4,371 91% 3,807 Pre-Covid Pre-Covid level level 51% Member Resort Occupancy1 Additions 1,062 Q1 FY2
Slide 8: MHRIL Q1 FY23 Performance
Ae 4 CLubMahindm MHRIL Q1 FY23 Performance 7
Slide 9: Robust Business Performance Delivered in Q1 FY23
Robust Business Performance Delivered in Q1 FY23 AP 4 CLubMahindra • Operational Excellence Financial Performance 01FY2301FY22 01FY23 01FY22 I Occupancy' Resort Revenue PBT Rs 45 Cr Member Additions 3,807 1,062 Rs 41 Cr (24% YoY)2 Room Inventory 4,617 rooms Cash Position Rs 1,172 Cr I L 8 1. On oper
Slide 10: Higher Member Additions and AUR delivers Robust Sales Value Growth
Higher Member Additions and AUR delivers Robust Sales V Value Growth Ae CLubMahindm 3,807 146 Nos. 3.8 Robust Demand for Vacation Ownership Sales Value reflected in Member including Upgrades Additions. 1,062 (Rs. Crs) Cumulative member 20 base at -2.7 Lakh 1.9 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Average
Slide 11: Highest ever Resort Revenues Driven by Higher Inventory, Occupancies & Member Spends
Highest ever Resort Revenues Driven by Higher Inventory, Occupancies Er Member Spends Ae 4 CLubMahindm 89% H ighest Ever 84 51% Resort Resort Occupancy Income (%) (Rs. Crs) 15 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 • Highest ever Resort Revenues in a quarter of Rs. 84 Crs. • Resort Revenues driven by high
Slide 12: Significant Improvement in Income, EBITDA & PBT YoY
Significant Improvement in Income, EBITDA Er PBT YoY AP 4 CLubMahindm Rs. Crs Total Income PBT EBITDA 43% 1 1 22% + 304 * 84 69 r 24% 1 213 + 45 VO Resorts 204 -1 37 r Others I Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Note: Figures exclude one-offs such as Lease Rent Waivers in Q1 FY22
Slide 13: Healthy Growth in Income, EBITDA & PBT vs pre-pandemic levels
Healthy Growth in Income, EBITDA & PBT vs pre-pandemic levels Ae Rs. Crs Total Income EBITDA PBT 4CLubMahindm MI i 1 48% + 304 84 59% 265 69 213 RIP 57 ■ + 45 VO Resorts 182 15 182 1 201 29 37 P Others I Q1 FY20 Q1FY22 Q1 FY23 Q1FY20 Q1 FY22 Q1 FY23 Q1FY20 Q1 FY22 Q1 FY23 Note: Figures exclude one-o
Slide 14: Profit Margin expands driven by Revenue growth & Cost Optimization
Profit Margin expands (vs pre-pandemic) driven by Revenue growth Er Cost Optimization Ac 4 CLubMahindm EBITDA Margin PBT Margin Revenue Growth & Cost 630 bps Optimization Initiatives: • Driving Vacation Ownership product price increases • Proactive pricing of F&B to 1 I- 410 bps mitigate rising inpu
Slide 15: Income Breakup - Q1 FY23
Income Breakup - Q1 FY23 Ae 4CLubMahindm Quarter ended Total Income (Rs. Lakhs) Q1 FY23 Q1 FY22* YoY Gr Income from Vacation Ownership 10,796 9,035 19.5% ASF Income 7,855 7,507 4.6% Interest & Others 1,734 1,626 6.6% Total VO Income 20,385 18,168 12.2% Resort Income 8,401 1,506 457.8% Revenue from O
Slide 16: Profit & Loss Statement - Q1 FY23
Profit Et Loss Statement - Q1 FY23 Ae Ah Quarter end 4 OubMahindra Particulars (Rs. Lakhs) Q1 FY23 Q1 FY22* YoY Gr • Total Income has increased by 40.3% Revenue from Operations 28,786 19,674 46.3% YoY mainly driven by highest ever Non-Operating Income 1,636 1,588 3.0% Resort Income. Income From Leas
Slide 17: Strong Balance Sheet
Strong Balance Sheet Ae Aci.. 4 CLubMahindm Strong Asset IW Base Rs. 5,135 Cr Rs. 1,172 Cr Rs. 2,314 Cr Zero debt Subsidiary Loan Includes Land Q1 addition of repayment of Rs. valued at Rs. 1,233 Rs. 52 Cr 30 Cr Cr and excludes Long- Term Leases valued at Rs. 354 Cr In July'22, MHRIL provided a loan
Slide 18: Snapshot of Balance Sheet
Snapshot of Balance Sheet In Rs. Lakhs Description ASSETS As on 30th June 2022 As on 31st March 2022 4 CLubMahindm Property, Plant and Equipment 231,362 229,203 Right of Use Asset (IND AS 116) 35,431 26,781 Trade receivables 113,694 112,817 Cash and cash equivalents (regrouped) 117,151 117,156 Defer
Slide 19: Key Trends & Business Environment
Ac 4 CLubMahindm MHRIL Key Trends 6- Business Environment CLUB MAHINDRA KANHA MADHYA PRADESH
Slide 20: Key Trends
Key Trends OubMahindm RBI Consumer Confidence reflects subdued consumer demand Muted consumer durable spends urrent Situation Index (CS -Future Expectations Index (FEI) Consumer Durables, (Base 2011-2012) 140.0 150 120.0 100 1 1 100.0 80.0 50 60.0 • 0 CO cc) co CO CS) Ot c at —1 O O 40.0 C] ``) N N
Slide 21: Emerging Travel Trends in the Indian Hospitality Sector
Emerging Travel Trends in the Indian Hospitality Sector Ae 4 Cr..1 btitahindr a • • Seeking the Newfound Vacation Curated Experiences Er Family Bonding DIY Packages Outdoors Ideas Long periods of staying Multi-generational travel indoors have led to Newfound vacation ideas Travelers are seeking has
Slide 22: MHRIL is well-positioned to capitalize on varying consumer preferences in the post Covid Era
MHRIL is well-positioned to capitalize on varying consumer preferences in the post Covid Era _re CLubMahindm e pandemic has led to certain trends emerging i ... which MHRIL is well placed to capitalize on the Indian Hospitality industry... TICKET FCTI Revenge Tourism due to pent-up demand for leisur
Slide 23: Unique & Profitable Vacation Ownership Business
Ae 4 CLubMahindm MHRIL Unique Et Profitable Vacation Ownership Business CLUB MAHINDRA VARCA GOA 22
Slide 24: A Large & Attractive Market for Vacation Ownership in India
A Large Er Attractive Market for Vacation Ownership in India fir` CLubMahindm 01 • -3 Crs High-income Households with an annual income > Rs. 275 lakhs expected by CY30 There is a huge potential target market for VO as household • • Rs. 55 Lakh Crs Annual Consumption from high-income households by CY
Slide 25: MHRIL has created a unique and sustainable Vacation Ownership business
Over 25 years, MHRIL has created a unique and sustainable Vacation Ownership business and is the #1 Leisure Hospitality AV( player in the country CLubMahindra MHRIL Vacation Ownership business consists of .. ...with unique competitive advantages Strong economic model and difficult to replicate Club
Slide 26: Multi-Year Sources of Value Creation in Vacation Ownership
Multi-Year Sources of Value Creation in Vacation Ownership across ij the Tenure of the Membership ) ve CLubMahindm New member joins Vacation Ownership Income • Membership Fee over the entire e • tenure of membership Interest Income L ( Annual Subscription Fee (ASF) • Recurring fees • Adjusted for in
Slide 27: Club Mahindra's Product Portfolio
Club Mahindra's Product Portfolio .11.-Ptahindra CMH – 25 years, 7 nights per year Target Consumer: Lifestyle Parameters Consumer Holiday Needs Couples (Age 30-45 years) • Provider, adaptive to changes & • Plan vacations in advance with young children aspirational • Seek family bonding 1 have dreams
Slide 28: Expanding Choice of Destinations available to members
Expanding Choice of Destinations available to members across MHRIL and Holiday Club Resorts (HCR) along with 360+ Partner Hotels 4 OubMattindm C1,41,Nial-anclra CLUB ivl Holiday•Club HOriZ 011S SELECT 33 Timeshare/Spa Holiday Exchange Offer 365-day 4,600+ rooms across 84 Resorts Hotel Program with 2
Slide 29: Growing footprint of resorts with varied choices for members
Growing footprint of resorts with varied choices available to our members Ac T India 4 OubMahindra LADAKH ir SRINAGAR Overall 117 destinations/properties including 73 properties I DHARMASHALA NALDHERA 73 Properties in India, 11 properties in South-East Asia & Middle East and MANAL TIT RISHIKESH SHIM
Slide 30: Our Business Model is Differentiated
Our Business Model is Differentiated A4e OubMahindra Focus on Family Vacations Multi-Product Portfolio serving diverse consumer needs A II Spacious Resortsi Kith Larger Apartments • Memorable family experiences • Portfolio approach to help • Members prioritize vacationing o New Er popular destinatio
Slide 31: Long Term Value Creation
CLUB MAHINDRA MANALI HIMACHAL PRADESH dlOc 4 CLubMahindm MHRIL Long Term Value Creation mita- isisineamontesoiremipmArreiwai Wit Vi ; rialimm -16115147 .47111 31 7 411 7117 4:7:fi:71 2F 4;7:: ,„ iddlAkt. • - - 30
Slide 32: Strategy to Drive Consistent Growth
Strategy to Drive Consistent Growth 4 CLubMahindm Mi. Accelerate Room Inventory Additions Grow Cumulative Member Base ) ( Improve Operational Efficiencies Strengthen Brand ( Deliver Superlative Customer Experience Digital Enablers Enablers 11 Pull Transformation 11 31
Slide 33: Robust Inventory Addition
Robust Inventory Addition A tp Total Room Inventory 4 ClubMahindra in Nos 5,500+ 4,568 4,197 3,595 3,732 3,472 3,152 2,816 2,879 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Estimated L We have planned to achieve room inventory of 5,500+ keys over the next 2-3 years 32
Slide 34: Accelerate Member Additions
Accelerate Member Additions 4 CLubMahindm I Scale up Member acquisition through Referrals, Digital and Alliances Use a multi-product portfolio to acquire members based on life- stage segmentation (Go Zest, CMH-25 and Bliss) Scale up resort onsite sales teams to acquire new members and upgrade existi
Slide 35: Creating New & Innovative Customer Experiences
Creating New Er Innovative Customer Experiences Ac 4 aubMahindra ifs bapp hours jor your rastaluds. BBQ Bay Restaurant New Café Brand - Unwind Zorbing Kathakali at Ashtamudi Masala Chowk at Naldehra Pottery Making Yoga Session Rocksport Happy Hub Experiences Wall Climbing at Puducherry Adventure Zon
Slide 36: Strengthening Brand Pull through Targeted Marketing Campaigns
Strengthening Brand Pull through Targeted Marketing Campaigns - Q1 FY23 V CLubMahindm Digital Brand Campaign - Digital Brand IP - Family Premier League "We cover India, You Discover India" (Season 3) outmahrldra FAMILY PREMIER LEAGUE ' .6# A LEAGUE CELEBRATING EVERY KIND OF FAMILY HOLIDAY. • SEASON
Slide 37: ESG Initiatives
ASSONORA GOA OubMahindra ESG Initiatives
Slide 38: Our Sustainability Journey
Our Sustainability Journey la illif CLubMahindra • Achieve Carbon Neutrality by 2040: • Jal Jivan Initiative - improve efficiency of water o RE100 (100% Renewable Energy by 2050) utilization through 4 R principle (Reduce, Reuse, o EP100 (Double the Energy Productivity by 2030) Recycle, Rainwater har
Slide 39: CSR efforts to bring positive change in society
We drive our CSR efforts to bring positive change in our society with a focus on: Environmental Sustainability, Women's Economic Empowerment Ey Skill Development/ Livelihood Creation around our resorts . CLubMahindm Promoting Education • Project Nanhi Kai': Supporting the education of -2,500 girl ch
Slide 40: Holiday Club Resorts
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Slide 41: Holiday Club Resorts - The Largest European Timeshare Company
Holiday Club Resorts - The Largest European Timeshare Company 'ft CI hNtahindr a • 33 Timeshare Destinations - 25 in Finland, 2 in Sweden, 6 in Spain (5 in Gran Canary, 1 in Costa del Sol) • 60,000+ Timeshare owners • 8 large Spa resorts in Finland, 1 in Sweden • 1,200+ Hotel Rooms • 1.3 million vis
Slide 42: Significant growth in HCR Revenue by 60% YoY
Significant growth in HCR Revenue by 60% YoY CI .1 bMahincha • Timeshare sales grew by 64% YoY aided by higher sales of Particulars (Euro Mn) Q1 FY23 Q1 FY22* timeshare weeks and better sales realization. Timeshare 9.0 5.5 • In Finland Er Sweden, Spa Hotel performance significantly Spa Hotels 18.5 8
Slide 43: HCR Reduced its Operating Losses to 1.5 M€
HCR Reduced its Operating Losses to 1.5 M€ from 3.5 M€ in if JO e Q1 FY22 4 OubMahindm Particulars (Euro Mn) Q1 FY23 Q1 FY22 Revenue: • Turnover increased by 12.5 M€ YoY; Growth Turnover 33.5 21.0 of 60% largely driven by higher Timeshare sales and better occupancies & ARRs in Spa Operating Profit /
Slide 44: HCR Outlook
HCR Outlook Ae 4 CLubMahindm • Domestic travel is robust and summer season has started well from mid-June onwards until mid- August. Q2 is traditionally a strong quarter for HCR. • In Finland, elevated inflation driven by food, electricity and fuel prices has led to a drop in consumer sentiment whic
Slide 45: MHRIL Consolidated Q1 FY23 Financials
CLUB MAHINDRA POOVAR KERALA ClubMahindra MHRIL Consolidated Q1 FY23 Financials
Slide 46: Segment Financials
Segment Financials Segment Revenue (Rs. Lakhs) - MHRIL Q1 FY23 30,762 Q1 FY22 21,788 4 CLubMahindm - HCRO 32,079 20,041 Total Segment Revenue 62,841 41,829 Others 861 - Total Income 63,702 41,829 Segment PBT (Rs. Lakhs) Q1 FY23 Q1 FY22 - MHRIL 4,616 4,030 - HCRO (1,098) (4,317) PBT before Ind AS 116
Slide 47: Income from Operations grew by 63% YoY and EBITDA by 75% YoY
Income from Operations grew by 63% YoY and EBITDA has grown by 75% YoY Ac 4 OubMahindra Particulars (Rs. Lakhs) Q1 FY23 Q1 FY22 YoY % Revenue: Income from Operations 60,485 37,088 63.1% • Standalone Income grew by 40% YoY and HCR by 60% YoY. Non-Operating Revenue 3,217 4,741 -32.1% • Non-operating I
Slide 48: MHRIL Historical Performance
CLUB MAHINDRA MASHOBRA HIMACHAL PRADESH Ae 4 CLubMahindm MHRIL Historical Performance 47
Slide 49: Large base of committed members continues to grow
Large base of committed members continues to grow Ae 4CLubMahindm In FY22, Cumulative Member Base is -2.66 Lakhs with 85% of Fully Paid Members Total Member Base 1,99,617 2,18,138 2,35,792 2,43,574* 2,58,336 2,54,431* 2,65,980 225,838 191,615 208,967 RI 177,277 162,875 145,960 Fully Paid 141,947 Mem
Slide 50: Member Acquisition & Holidaying improved in FY22 vs FY21
With an uptick in travel sentiment, Member Acquisition Er Holidaying improved in FY22 vs FY21 Ae Member Holidaying 4 Member Booking ClubMahindni Customer Acquisition Behaviour Preferences Customer acquisitions g Members holiday in a 58% through referral and 36% group of 4 or more digital route 3.2 R
Slide 51: Investment in Room Inventory with High Occupancy and growing Cash
Investment in Room Inventory continues with High Occupancy Levels and a growing Cash position Ae 4CLubMahindm Occupancy L81% I I 85% I r 85% 1 83%* I 72%* 74%* 1,600 4,568 4,500 1,400 1,172 1,200 4,000 3,595 940 1,000 3,472 3,500 800 572 600 3,000 2,879 470 332 331 356 400 266 301 267 2,500 265 8311
Slide 52: A Strong and Consistent Performance Track Record
A Strong and Consistent Performance Track Record Oil CI .1 NM.ailirLdr a Total Revenue CAGR of 10% (FY15-19) PBT CAGR of 23% (FY15-19); PBT CAGR of 27% (FY19-22) In Crs In Crs 1,170 1,090 1,094 18 1,071* 241 964 =JP 109 1,037 89 12 93 963 67 11iim 909* 67 201 207 2042 808 190 209 220 122 12 64 173 8
Slide 53: Revenue contributions from various streams
Revenue contributions from various streams AP 4 CLubMahindm IND AS 18 IND AS 115 . .„, i. e. 1 6% ■ 5% 7% 8% 9% 12% Our cumulative 11% 9% 6% 18% I member base 19% 20% provides us with 27% 28% 29% multiple annuity 32% 18% 17% 19% revenue streams which are 23% 22% 12% 18% predictable, such as VO Incom
Slide 54: Growing Profit Margins
Growing Profit Margins Ae 4 CLubMahindm EBITDA Margin PBT Margin a 32%1- 32%2 21% 2 18% 19% 19%1- 19% 25% 24% 24% 25% 23% 17% 13% 12% 16% 10% FY15 FY16 FY17 FY18 FY19 FY19 FY20 FY21 FY22 FY15 FY16 FY17 FY18 FY19 FY19 FY20 FY21 FY22 IND AS 18 ' IND AS 115 IND AS 115 & 116 IND AS 18 IND AS 115 IND AS
Slide 55: Disclaimer
Disclaimer CI .1 bMahincha This presentation may contain 'forward looking statements' within the meaning of applicable laws and regulations. Investors are cautioned that 'forward looking statements' are based on certain assumptions, which Mahindra Holidays b- Resorts India Limited considers reasonab
Slide 56: Contact us
/" OF ENDIA'S 04, ,... IIe. RANK #20 INDIA'S Si MOST POPULAR 0 INDIA'S BEST ,d Mr BEST WORKPLACE ml VI RESORT I, COMPANIES TO I/ to " IN HOTELS 81 RESORTS, IFS NA t, -04 CHAIN ter "Zik.WORIC FOR, 2022 ef '44 2021,4,2022 tr,..0 ev A ClubMahindra TIMES TRAVEL AWARD 2019 GREAT PLACE GREAT PLACE TO WORK
Mahindra Holidays & Resorts India — Q1 FY23 Earnings Presentation on 6ix