Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q4 2019-20 Earnings Presentation
51 slides from Indian Hotels's earnings presentation, Jun 11, 2020
Slide 1: Cover letter to BSE and NSE
June 11, 2020 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza 1 s t Floor, New Trading Ring, Bandra Kurla Complex Rotunda Building, P. J. Towers, Bandra (E) Dalal Street, Fort, Mumbai 400 051 Mumbai – 400 001. Symbol: INDHOTEL Scrip Code: 500850
Slide 2: Global Conference Call Q4 & FY 2019-20 Results
Global Conference Call Q4 & FY 2019-20 Results | 11th June, 2020
Slide 3: Top 10 Strongest Brands
Top 10 Strongest Brands ~~ ~II" 1 - NEW TAJ 2020: 905 MA+ 2019: - e 2 ... 1 2020 88.7 MA 2019: 87.0 MA ~ 3 12 le/ 2020 82.8 MA· 2019: 80.1 MA· 2.- n SUZUKI 4 .4 2020: 82.4 MA· -2.1 2019: 84.4 MA- NATION'S 5 ... 2 @ ::1=!·!:1:1 2020: STR C~ NGEST 82.3 MA- -4.2 2019: 865 MA BRAND IN 2020 6 TAJ ... 5 2
Slide 4: Rewind FY 2019/20: The Year Gone By
REWIND FY 2019 / 20: THE YEAR GONE BY RE-STRUCTURING PORTFOLIO | RE-IMAGINING BRANDSCAPE | RE-ENGINEERING FINANCIAL PERFORMANCE 3
Slide 5: Re-structuring Portfolio: Journey So Far
Re-structuring Portfolio: Journey So Far 200 50 17 42% Hotels Portfolio New Hotels Signed New Hotels Opened Mgmt Contract Mix (158 Hotels Operational) in the Last Two Years in the Last Two Years vs Owned in Portfolio 4
Slide 6: Re-structuring Portfolio: Growth Trajectory
Re-structuring Portfolio: Growth Trajectory 200 179 155 160 25,168 141 22,231 18,965 18,361 16,920 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 Mgmt. % 28% 31% 32% 39% 42% #Hotels #Rooms *Portfolio includes operational hotels and hotels under various stages of development 5
Slide 7: Re-structuring Portfolio: Key Highlights of FY 2019/20
Re-structuring Portfolio: Key Highlights Of FY 2019 / 20 Delivered on our promise to open one hotel a month in FY 2019 / 20 with 12 hotels opened in the year 1 Consolidated presence in Goa with Cidade de Goa and Taj Hotel & Convention Centre, Goa (500+ keys) 2 Added iconic palace – Taj Fateh Prakash
Slide 8: Re-imagining Brandscape: Now A Hospitality Ecosystem
Re-imagining Brandscape: Now A Hospitality Ecosystem Khazana Topline Drivers Jiva Spa amã Stays & Trails The Chambers Margin Drivers HOTELS Salon- F&B Market Share Drivers niu&nau Concepts Air Catering 7
Slide 9: Re-imagining Brandscape: Integrated Marketing Campaign
Re-imagining Brandscape: Integrated Marketing Campaign Like Always, Like Never Before. MEDIA: National Print, Digital, Social Offline Reach Social Media 3.7 mn 2.5 mn Display/Search E-DM 2.4 mn 2 mn 8
Slide 10: Re-engineering Financial Performance: FY 2019/20 Consolidated
Re-engineering Financial Performance: FY 2019 / 20 (Consol) Revenue EBITDA EBITDA Margin ~ 4,596 cr ~ 1100 cr 23.94% ~ 354 cr 406 0% 20% 24% bps ~ 4,595 cr ~ 913 cr 19.87% ~ 287 cr ~~ 9 TAJ SELE~IONS VIVANTA GINGER EXPRESSIONS TAJ. II~CI~
Slide 11: Re-engineering Financial Performance: Best In A Decade
Re-engineering Financial Performance: Best In A Decade Particulars – FY 2019/20 2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 Revenue 4,596 4,595 4,165 4,076 4,123 4,287 4,126 3,804 3,515 2,898 EBITDA 1,100 913 732 665 652 587 619 598 617 488 EBITDA Margin 23.9% 19.9% 17.6%
Slide 12: Significant Inroads into Meeting Aspiration 2022: Scorecard
Significant Inroads into Meeting Aspiration 2022: Scorecard Aspiration 2022 - Scorecard Target – 2022/23 Achieved – 2019/20 Re-structuring Growth: New Hotels Signed 15 per year 50+ in Two Years Re-structuring Portfolio: Mix b/w Owned and Managed 50 – 50 42 % Managed Taj – Re-imagining Excellence: Be
Slide 13: COVID-19: An Unprecedented Challenge
COVID-19: An Unprecedented Challenge 12
Slide 14: COVID-19: An Unprecedented Global Challenge For Hospitality
COVID-19: An Unprecedented Global Challenge For Hospitality −6% $2.1 tn 75 mn $252 bn estimated global Fall in global aviation economy Estimated loss in revenue Jobs at risk revenues 10.3% Source: WTTC | UNTWO | International Monetary Fund (IMF) | Organisation for Economic Co-operation and Developme
Slide 15: Significant Impact On Indian Travel & Hospitality Sector
Significant Impact On Indian Travel & Hospitality Sector India’s estimated GDP ₹10 lac cr. 38 mn Upto 25% growth in FY 20 / 21 Estimated value at risk Jobs at risk Impact on international −3.2% travel Source: World Bank | FAITH | STR ‘World Economic Forum’ | IMF | IBEF | WTTC 14
Slide 16: R.E.S.E.T 2020: Our Response to COVID-19
R.E.S.E.T 2020: Our Response to COVID-19 ~· SPEND OPTIMIZATION I N GU EST WELL- BEING . EXPER l ENC E & O PE RAT I ONS ~ II~CI~ ® REVENUE THRIFT & GROWTH FINANCIAL •••••• .• 2020 PRUDENCE 15
Slide 17: Revenue Growth Initiatives
REVENUE GROWTH INITIATIVES 16
Slide 18: Revenue Growth Initiatives
Revenue Growth Initiatives Pursuing multiple lines of business like BCP, repatriation, quarantine, medical fraternity etc. Enhancing hotel Clear strategies in place for corporate, leisure, weddings, MICE across different states occupancies through business initiatives Sales & marketing campaigns (4D
Slide 19: Excellence Initiatives
EXCELLENCE INITIATIVES 18 TAY SELE(QTIONS VIVANTA GINGER EXPRESSINS Wwe@ | H C l 4
Slide 20: Safety and hygiene standards for guests and associates
Building on the values of Tajness, IHCL has put together a comprehensive set of protocols and measures to ensure that Guests have a safe stay at our hotels even as they continue to enjoy the best of hospitality that IHCL is synonymous with. Standards of: Social Distancing Personal Protection for
Slide 21: Humanitarian Efforts
2 mn meals distributed to Doctors Medical fraternity HUMANITARIAN Migrant workers EFFORTS & 25,000+ room nights Health fraternity 20
Slide 22: Spend Optimization Initiatives
SPEND OPTIMIZATION INITIATIVES 21
Slide 23: Operations Shut Down & Staggered Re-opening
Operations Shut Down & Staggered Re-opening 50% of our hotels across portfolio were closed/acting as active quarantine centers as on 31st May 2020 Post relaxation of lockdown, there is a staggered re-opening plan in place Factors considered while creating the plan 1 Rules and regulations of the stat
Slide 24: Focus on Spend Optimization Initiatives
Focus on Spend Optimization Initiatives Organizational & HLP Repairs & Stores & A&P Administration Payroll Optimization Costs Maintenance Supplies Expenses Costs 23 TAj SELE~IONS VIVANTA GINGER EXPRESSIONS TAJ. II~CI~
Slide 25: Effective Asset Management Initiatives
Effective Asset Management Initiatives Monetization Monetization Minimization of Non-Core of Hotel of Lease Assets Assets Costs 24
Slide 26: Thrift And Financial Prudence Initiatives
Thrift And Financial Prudence Initiatives Reduction in Renovation Corporate Raising Debt Deferments Overheads 25
Slide 27: IHCL Financial Performance (Q4 & FY 2019/20)
IHCL FINANCIAL PERFORMANCE (Q4 & FY 2019 / 20) Giridhar Sanjeevi, EVP & Chief Financial Officer 26
Slide 28: Q4 2019/20 - IHCL Consolidated Reported P&L
Q4 2019 / 20 - IHCL Consolidated Reported P&L (Post Ind AS) Despite lockdowns, we put up a creditable performance in Q4 ₹ /crores Jan - Feb March Q4 Particulars Actual vs Actual Actual 2019/20 2018/19 2019/20 2018/19 2019/20 2018/19 PY vs PY vs PY Actual Actual Actual Actual Actual Actual Revenue 88
Slide 29: Q4 2019/20 - IHCL Consolidated Exceptional Items
Q4 2019 / 20 - IHCL Consolidated Exceptional Items ₹ /crores Q4 Particulars Var. 2019/20 2018/19 Change in fair value of derivative contracts (20) 15 (35) Profit on sale of Padma Vilas property 55 - 55 Gain on Sale of Property 6 - 6 Total 40 15 25 Gain on Sale of Flats included in Non Operating Reve
Slide 30: Full Year 2019/20 - IHCL Consolidated Reported P&L
Full Year 2019/20 - IHCL Consolidated Reported P&L (Post Ind AS) We have achieved the highest ever PAT ₹ /crores YTD December Q4 YTD March Particulars Actual Actual Actual 2019/20 2018/19 2019/20 2018/19 2019/20 2018/19 vs PY vs PY vs PY Actual Actual Actual Actual Actual Actual Revenue 3,495 3,314
Slide 31: Full Year 2019/20 - IHCL Consolidated Exceptional Items
Full Year 2019 / 20 - IHCL Consolidated Exceptional Items ₹ /crores YTD March Particulars Var. 2019/20 2018/19 Change in fair value of derivative contracts (22) (41) 19 Profit on sale of Padma Vilas property 55 - 55 Gain on Sale of Property 6 - 6 Profit on sale of TMFK shares 2 - 2 Boston Lease Modi
Slide 32: Continuous Performance Improvement
Continuous Performance Improvement ₹ /crores EBITDA PAT Revenue 5000 4595 4596 4500 1250 4123 4076 4165 1100 4000 913 3500 732 750 652 665 3000 2500 354 287 2000 250 101 1500 1000 -250 -63 500 -231 2015/16 2016/17 2017/18 2018/19 2019/20 31
Slide 33: Q4 2019/20 - IHCL Standalone Reported P&L
Q4 2019 / 20 - IHCL Standalone Reported P&L (Post Ind AS) ₹ /crores Jan - Feb March Q4 Particulars Actual Actual Actual 2019/20 2018/19 2019/20 2018/19 2019/20 2018/19 vs PY vs PY vs PY Actual Actual Actual Actual Actual Actual Revenue 603 592 2% 151 282 -47% 754 875 -14% Operating Expenses 356 367
Slide 34: Q4 2019/20 - IHCL Standalone Exceptional Items
Q4 2019 / 20 – IHCL Standalone Exceptional Items ₹ /crores Q4 Particulars Var. 2019/20 2018/19 Change in fair value of derivative contracts (20) 15 (35) Profit on sale of Padma Vilas property 54 - 54 Provision for impairment of investment in Pierre that incurred cash losses (42) - (42) Provision for
Slide 35: FY 2019/20 - IHCL Standalone Financial Highlights
FY 2019 / 20 - IHCL Standalone Financial Highlights Revenue EBITDA EBITDA Margin ~ 2,878 cr ~ 895 cr 31.12% ~ 401 cr 9% 256 0.2% 52% bps ~ 2,871 cr ~ 820 cr 28.56% ~ 264 cr *Pre-IND AS EBITDA: ₹ 809 cr, EBITDA Margin: 28.13% [YTD Feb 29.90% (+208 bps)]; PAT: ₹ 418 cr ~~ 34 TAJ SELE~IONS VIVANTA GING
Slide 36: FY 2019/20 - IHCL Standalone Reported P&L
FY 2019 / 20 - IHCL Standalone Reported P&L (Post Ind AS) We have achieved the highest ever PAT ₹ /crores YTD December Q4 YTD March Particulars 2019/20 2018/19 Actual vs 2019/20 2018/19 Actual 2019/20 2018/19 Actual vs Actual Actual PY Actual Actual vs PY Actual Actual PY Revenue 2124 1996 6% 754 87
Slide 37: FY 2019/20 - IHCL Standalone Exceptional Items
FY 2019 / 20 - IHCL Standalone Exceptional Items ₹ /crores YTD March Particulars Var. 2019/20 2018/19 Change in fair value of derivative contracts (22) (41) 19 Profit on sale of Padma Vilas property 54 - 54 Profit on sale of TMFK Investment 21 - 21 Provision for impairment of investment in Pierre th
Slide 38: Q4 2019/20 - IHCL Standalone Revenue Metrics
Q4 2019 / 20 - IHCL Standalone Revenue Metrics ₹ /crores Jan - Feb March Q4 Growth Growth Growth Particulars over over over CY PY CY PY CY PY PY % PY % PY % Occupancy % 77.2 76.3 0.9 32.3 67.6 -35.3 61.9 73.3 -11.4 ARR 12,912 13,106 -1.5% 11,646 11,637 0.1% 12,687 12,639 0.4% RevPAR 9,967 10,000 -0.
Slide 39: Full Year 2019/20 - IHCL Standalone Revenue Metrics
Full Year 2019 / 20 - IHCL Standalone Revenue Metrics ₹ /crores YTD February March YTD March Growth Growth Growth Particulars over PY over PY over PY CY PY CY PY CY PY % % % Occupancy % 69.9 67.8 2.1 32.3 67.6 -35.3 66.7 67.8 -1.1 ARR 10,694 10,943 -2.3% 11,646 11,637 0.1% 10,734 11,003 -2.4% RevPAR
Slide 40: Continuous Improvement In Operating Cost Base
Continuous Improvement In Operating Cost Base 23.5% 23.2% 23.2% 35.4% 22.3% 33.9% 33.5% 21.4% 32.8% 32.6% RAW MATERIAL PAYROLL COST COST 15/16 16/17 17/18 18/19 19/20 15/16 16/17 17/18 18/19 19/20 6.8% 28.9% 29.2% 29.2% 6.4% 27.9% 6.3% 6.1% 6.0% 27.2% FUEL, POWER OTHER AND LIGHT EXPENDITURE 15/16 16
Slide 41: Simplification and Monetization
Simplification and Monetization Sale of Residential Sale of Land Simplification Apartments Land in Pune 24 Apartments Sale proceeds ₹ 63 crore ₹ 105 crore ₹ 29.8 crore TOTAL MONETIZATION FY 19/20 40 ₹ 211 CRORES
Slide 42: Balance Sheet and Liquidity Update
BALANCE SHEET AND LIQUIDITY UPDATE 41
Slide 43: Leverage: Preserving Balance Sheet Health
Leverage: Preserving Balance Sheet Health ₹ /crores 4500 1.40 1.27 4000 1.20 3500 0.97 1.00 3000 2500 0.80 2000 0.60 1500 0.38 0.37 0.36 0.40 1000 4216 3151 1889 1925 1857 0.20 500 0 0.00 2015 / 16 2016 / 17 2017 / 18 2018 / 19 2019 / 20 Net Debt Net Debt : Equity Net Debt : EBITDA 6.47 4.74 2.58 2.
Slide 44: Debt Position
Debt Position ₹ /crores Standalone Consolidated Particulars March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019 Gross Debt 1,943 1,784 2,602 2,326 Liquidity (555) (282) (745) (401) Net Debt 1,388 1,502 1,857 1,925 Weighted cost of Debt (%) 8.1 8.2 7.0 7.2 Net Debt to Equity 0.30 0.33 0.36 0.
Slide 45: Funding Update
Funding Update Particulars ₹/Crores Long Term Loans Raised since March Kotak Mahindra Bank Term Loan 185 Axis Bank Term Loan 200 Non-Convertible Debenture Issue (Axis Bank) – Unsecured 150 Non-Convertible Debenture Issue (ICICI Bank) – Unsecured 300 Funds Raised Till Now 835 • Recent fund raising –
Slide 46: Q&A
Q&A 45 TAY SELE(QTIONS VIVANTA GINGER EXPRESSINS Wwe@ | H C l 4
Slide 47: 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
Slide 48: Global Conference Call Q4 & FY 2019-20 Results
Global Conference Call Q4 & FY 2019-20 Results | 11th June, 2020
Slide 49: IHCL Portfolio
IHCL Portfolio LUXURY SELECT HOTELS UPSCALE LEAN LUXE 25,000+ KEYS 200 HOTELS 12,800 KEYS 1400 KEYS 4,400 KEYS 6,400 KEYS 85 HOTELS 15 HOTELS 30 HOTELS 70 HOTELS *Portfolio figures include hotels under various stages of development 48
Slide 50: Strong Institutional Shareholding
Strong Institutional Shareholding 14% Retail 11% 41% Tata Group FII 34% DII * As on 31st May 2020 49
Slide 51: Awards and Accolades continue to reinforce our direction
Awards and Accolades continue to reinforce our direction Brand Financee India ( \ /ffive~~ ) THE HOT LIST / 100 ~2o2oA ......_ _./ 2020 ® Golden Peacock Awards TATLEK firivekt\ ( READERS' \ CHOICE AWARDS / ) '~ 2019 /~ 50 ~~ TAJ SELE~IONS VIVAN TA GINGER EXPRESSIONS TAj ,.. .. '-- / EARTH(HECK II~CI
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