Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — FY2023 Earnings Presentation
91 slides from Lemon Tree Hotels's earnings presentation, May 30, 2023
Slide 1: Exchange filing letter on financial results
May 30, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street, Mumbai — 400001 Bandra (E), Mumbai — 400051 NSE Scrip Symbol: LEMONTREE BSE Scrip Code: 541233 Re: Financial Results for the quarter and financi
Slide 2: Independent Auditor's Report on consolidated results
Deloitte i Soarteredd Aesountants Haskins H & SellsLLP B Gy oo Tower B Gurugram-122 002 Haryana, india Tel: +91 124 679 2000 Fax; +91 124 679 2012 INDEPENDENT AUDITOR'S REPORT ON AUDIT OF ANNUAL CONSOLIDATED FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL RESULTS To The Board of Directors of Lem
Slide 3: Auditor's Report (continued): list of group entities
Deloitte Haskins & SellsLLP 12. Red Fox Hotel Company Private | Wholly owned subsidiary Limited company 13. Nettle Hotels Private Limited | Wholly =~ owned subsidiary (formerly known as Poplar | company Homestead Heldings Private Limited 14. Madder Stays Private Limited Wholly owned subsidiary compa
Slide 4: Auditor's Report: conclusion on quarterly results
Deloitte Haskins & SellsLLP {b) Conclusion on Unaudited Consolidated Financial Results for the quarter ended March 31, 2023 With respect to the Unaudited Consolidated Financial Results for the quarter ended March 31, 2023, based on our review conducted and procedures performed as stated in paragraph
Slide 5: Auditor's Report: management responsibilities
Deloitte Haskins & Sells LLP The respective Board of Directors of the companies included in the Group and of its associates are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and its associates and for
Slide 6: Auditor's Report: auditor responsibilities
Deloitte Haskins & SelisLLP * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of such controls, + Evaluate the appropriateness of acc
Slide 7: Auditor's Report: review of quarterly results
Deloitte Haskins & SellsLLP We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and
Slide 8: Auditor's Report: other matters
Deloitte Haskins & SellsLLP We did not audit the financial statements of 21 subsidiaries and 1 Limited Liability Partnership Firm included in the Consolidated financial results, whose financial statements includes total assets of Rs. 89,491.53 lakhs as at March 31, 2023 and total revenues of Rs. 5,1
Slide 9: Statement of Consolidated Financial Results
Lemon Tree Hotels Limited Regd Office:- Asset No. 6, Aerocity Hospitality District, New Delhi-110037 Tel: 011-46050101; Fax.: 011-46050110; E-Mail:sectdepiti@lemontrechotels.com:Websi ww.lemontrechotels.com CIN: L74899DL1992PLC049022 Statement of Consolidated Kinancial Results for the Quarter and Ye
Slide 10: Consolidated Assets and Liabilities
Notes: 1. Statement of Consolidated Assets and Liabilities In Lakiss) Particulars Asal A{: al 2 March 31,2023 | March 31,2022 (Audited) (Audited) Assets Non-current assets (a) Property, plant and equipuent 2,45,048.04 2,50,957.65 (b) Capital work-in-progress 4691037 20455.09 {c) Investment Property
Slide 11: Consolidated Equity and Liabilities
(In Lakhs) Particulars Asat Asat March 31,2023 | March 31, 2022 (Audited) (Audited) Equity and Liabilities Equity () Equity share capital 79,160.71 79.081.33 (b) Other Equity 621206 401355 ] Equity attributable to owners ofthe parent 8537277 83,124.88 (c)Non-conirolling interests 55,969.45 56,763.00
Slide 12: Consolidated Cash Flow Statement
2. Statement of Consolidated Cash flow (2 In Lakis) Particulars For the yoar ended] For (e year ended March 31,2023 | March 31,2022 (Audited) (Audited) ‘A, Cash flow from operating activities Profit/(Loss) before tax 17,523.82 (14,459.23)) Non-cash adjustments to reconcile profi(loss) before tax fo
Slide 13: Consolidated Cash Flow and Notes
(@I Lali) Pariicatars [Tor the year ended| Tor the year ended March 31,2023 | March 31,2022 (Audited) (Andited) Net increase In cash and cash equivalents (A + B+ C) (3,060.42) (7.31713), Casli and gash equivalents at the begiing ofthe year 542861 12,7472 Cash and cash equivalents at the end ofyear 2
Slide 14: Independent Auditor's Report on standalone results
Deloitte H - bth Tower B red Haskins & SellsLLP DlEcpbrcty Compex Gurugram-122 002 Haryana, India Tel: +91 124 679 2000 Fax: +51 124 679 2012 INDEPENDENT AUDITOR’S REPORT ON AUDIT OF ANNUAL STANDALONE FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL RESULTS To The Board of Directors of Lemon Tree
Slide 15: Auditor's Report: basis for opinion, standalone
Deloitte Haskins & Sells LLP Basis for Opinion on the Audited Standalone Financial Results for the year ended March 31, 2023 We conducted our audit in accordance with the Standards on Auditing (“SAs") specified under Section 143(10) of the Companies Act, 2013 (“the Act”). Our responsibilities under
Slide 16: Auditor's Responsibilities, standalone
Deloitte Haskins & SellsLLP Auditor’s Responsibilities (a) Audit of the Standalone Financial Results for the year ended March 31, 2023 Our objectives are to obtain reasonable assurance about whether the Standalone Financial Results for the year ended March 31, 2023 as a whole is free from material m
Slide 17: Auditor's Report: materiality and governance
Deloitte Haskins & Sells LLP Standalone Financial Results, which have been audited by other auditor, such other auditor remain responsibie for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. Materiality is the magnitud
Slide 18: Auditor's Report: signature and opinion
Deloitte Haskins & Sells LLP cash outflows of Rs. 12.96 lakhs for the year ended March 31, 2023 as considered in the Statement. The financial statement of the trust have been audited by the other auditors whose reports have been furnished to us, and our opinion and conclusion in so far as it relates
Slide 19: Statement of Standalone Financial Results
Lemon Tree Hotels Limited Regd Office:- Asset No. 6, Acrocify Hospitality District, New Delhi-110037 Tel.: 011-46050101; Fax.: 011-46050110; E-Mail:sectdepti@lemontreehotels.com: Website: w1 ww.lemontrechotels.corm CIN: L74899DL1992P1.C049022 Statement of Standalone Financial Results for the Quarter
Slide 20: Standalone Assets and Liabilities
Notes: 1, Stlt’emcni of Standalone Assets and Liabilties (€ 1 Lakhs) | As at March| As at March - Particulars 31,2023 31,2022 (Audited) | (Audited) Assels ‘Non-current assets (2) Property, plant and equipment 38,753.78) 39,487.86 (b) Capital work-in-progross 2,13505[ 176694 (¢) Investment Property 2
Slide 21: Standalone Equity and Liabilities
€ In Lakiis) As at March] As at March Particulars 31,2023 | 31,2022 (Audited) | (Audited) Equity and Liabilitics Equity (w) Equity share capital 79,160.71{ 79,081.33 (b) Other Equity 27,867.41| _19,725.69 Total Equity 107,028.12 | 95,807.02 Linbilities Non-current liabilitics (a) Financial liabiliti
Slide 22: Statement of Standalone Cash Flow
2. Statement of Standalone Cash flow & In Lakits) For the year| For the year . ended ended Particulars March 31, | March 31, 2023 2022 (Audited) | (Audited) Cash flow from operating activities Profit/(Loss) before tax 11,332.38 (2,260.76) Non-cash adjustments to reconcile profit/(loss) before tax to
Slide 23: Standalone Cash Flow and Notes
€ In Lakhs) Tor fhe year| For the year Particulars ended ended March 31, | March 31, 2023 2022 Net decrease in cash and cash equivalents (A + B+ C) 77439)| (2,074.48) Cash and cash equivalents at the beginning of the year 1,566.64 3,641.12 Cash and cash equivalents at the end of the year 792,25 1,56
Slide 24: Segment note and board signature
9.The Company is into Hoteliering business and operates in a single operating segment therefore it did not give rise to different operating segments in accordance with Ind AS 108 - Operating Segments. By order of the Board for Lemon Trec Hotels Limited ) e Place: New Delhi Patanjali G. Keswani Date
Slide 25: Lemon Tree Hotels Q4 & 12M FY23
30-05-2023 Q4 FY23 Earnings 1 Lemon Tree Hotels Limited Q4 & 12M FY23 Earnings Presentation | 30th May 2023 Aurika, Udaipur
Slide 26: Disclaimer
30-05-2023 Q4 FY23 Earnings 2 Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward- looking statements involve a number of risks, uncertainties and other factors that could cause actual results to
Slide 27: Chairman & Managing Director's Message
Q4 FY23 Earnings 30-05-2023 3 Chairman & Managing Director’s Message Commenting on the performance for Q4 FY23, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “FY23 has been the best year for Lemon Tree Hotels. As anticipated and in line with our initial guidan
Slide 28: Strong Q4 FY23 performance across key financial metrics
30-05-2023 Q4 FY23 Earnings 4 Strong Q4 FY23 performance across key financial metrics Q4 FY23 performance snapshot vs Q4 FY20 Revenue EBITDA EBITDA % Rs. 254.7 Cr Rs. 141.9 Cr 55.7% 44% up 121% up 1,926 bps up PAT Cash Profit Cost of Debt % Rs. 59.0 Cr Rs. 82.5 Cr 9.08%* 411% up 845% up 52 bps reduc
Slide 29: Q4 FY23 Performance Highlights – Operational Metrics
30-05-2023 Q4 FY23 Earnings 5 Q4 FY23 Performance Highlights – Operational Metrics (Consolidated) Inventory Average Room Rate (Rs.) Owned/Leased rooms Managed/Franchised Total rooms 2% rooms QoQ 8,006 YoY 8,382 5% 29% YoY 5,824 5,738 5,824 17% 5,192 5,090 YoY 4,530 3,292 2,814 Q4 FY20 Q4 FY23 Q4 FY2
Slide 30: Q4 FY23 Performance Highlights – Financial Metrics
30-05-2023 Q4 FY23 Earnings 6 Q4 FY23 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operations (Rs. Cr) EBITDA (Rs. Cr) 50% 35% 44% 8% YoY QoQ YoY QoQ 141.9 141.9 252.7 252.7 127.0 233.5 176.1 64.4 Q4 FY20 Q4 FY23 Q3 FY23 Q4 FY23 Q4 FY20 Q4 FY23 Q3 FY23 Q4 FY23 EBITDA Margin
Slide 31: Month on Month Occupancy % and Gross ARR Trend
30-05-2023 Q4 FY23 Earnings 7 Month on Month Occupancy % and Gross ARR Trend 80% 77% 72% 73% 68% 67% 67% 68% 65% 65% 62% 54% 6,258 5,922 5,939 5,666 5,607 5,218 4,998 4,837 4,933 4,984 4,728 4,776 Apr'22 May'22 Jun'22 Jul'22 Aug'22 Sep'22 Oct'22 Nov'22 Dec'22 Jan'23 Feb'23 Mar'23 Gross ARR (Rs.) Occ
Slide 32: Q-o-Q performance
30-05-2023 Q4 FY23 Earnings 8 Q-o-Q performance Q4 FY23 recorded the best ever Gross ARR, EBITDA, PBT, and PAT: Particulars Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY20 Q3 FY20 Q2 FY20 Q1 FY20 Gross ARR (Rs.) 5,824 5,738 4,917 4,822 4,093 3,901 3,028 2,362 4,530 4,644 4,13
Slide 33: Q-o-Q Gross ARR
30-05-2023 Q4 FY23 Earnings 9 Q-o-Q Gross ARR Gross ARR in Q4 FY23 is highest ever and 29% higher than Q4 FY20 5,738 5,824 4,822 4,917 4,644 4,530 4,133 4,093 4,002 3,901 3,028 2,626 2,654 2,654 2,528 2,362 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1 FY23 Q
Slide 34: EBITDA Margin Expansion driven by permanent cost rationalization
30-05-2023 Q4 FY23 Earnings 10 EBITDA Margin Expansion driven by permanent cost rationalization Revenue (Rs. Cr) | EBITDA and EBITDA Margins (%) EBITDA and EBITDA Margin % is the highest ever EBITDA Margin expanded by 1,926 bps 56% 54% 48% 48% 45% 42% 36% 36% 35% 32% 32% 32% 31% 27% 17% 5% 234 142 1
Slide 35: Total management Fees to Lemon Tree Hotels
30-05-2023 Q4 FY23 Earnings 11 Total management Fees to Lemon Tree Hotels Management fees from hotels under managed & franchised portfolio 1.5x 103.7 1.4x 67.9 67.2 49.4 2.5x 26.2 1.3x 10.6 + + = 7.2 9.6 Management Fees from 3rd party Brand Fees from 3rd party asset Management and Brand Fees from To
Slide 36: Market Segments: Q4 FY23 vs Q4 FY20
30-05-2023 Q4 FY23 Earnings 12 Market Segments: Q4 FY23 vs Q4 FY20 Market Segments Room Nights Sold – Q4 FY23 vs Q4 FY20 50 % 47% 38% 45 % 40 % 31% 27% 35 % 30 % 25 % 20 % 15 % 8% 10% 9% 8% 11% 10 % 5% 4% 4% 3% 0% Corporate Airline Travel Trade OTA Web Others FITs Q4 FY20 Q4 FY23 Market Segments Roo
Slide 37: LTH vs Industry – Q4 FY23 vs Q4 FY20
30-05-2023 Q4 FY23 Earnings 13 LTH vs Industry – Q4 FY23 vs Q4 FY20 Gross ARR Occupancy RevPAR (Growth % - Q4 FY23 vs Q4 FY20) (Growth % - Q4 FY23 vs Q4 FY20) (Growth % - Q4 FY23 vs Q4 FY20) 55% 29% 21% 41% 23% 15% Industry Lemon Tree Hotels Industry Lemon Tree Hotels Industry Lemon Tree Hotels Sour
Slide 38: City level: LTH vs Industry
30-05-2023 Q4 FY23 Earnings 14 City level: LTH vs Industry – Q4 FY23 vs Q4 FY20 RevPAR (Growth % - Q4 FY23 vs Q4 FY20) 89% 63% 55% 57% 49% 46% 41% 41% 41% 43% 43% 41% 37% 38% All India Mumbai Hyderabad New Delhi Pune Gurugram Bengaluru Industry LTHL Source: STR India
Slide 39: Q4 FY23 Operational Performance by Brands & Region
30-05-2023 Q4 FY23 Earnings 15 Q4 FY23 Operational Performance by Brands & Region (On full inventory basis) Hotel level Average Daily Rate EBITDAR/room Hotel level EBITDAR Parameters RevPAR (Rs.) Occupancy Rate (%) (Rs.) Margin % (Rs. Lacs) Q4 Q4 Change Q4 Q4 Change Q4 Q4 Change Q4 Q4 Change Q4 Q4 C
Slide 40: Consolidated P&L: Q4 FY23 vs Q4 FY20
30-05-2023 Q4 FY23 Earnings 16 Consolidated P&L: Q4 FY23 vs Q4 FY20 Q4 FY23 Consolidated P&L Waterfall – Revenue to Cash Profit (Rs. Cr) 23.5 82.5 Q4 FY23 vs Q4 FY20 Consolidated P&L waterfall to explain delta (Rs. Cr)
Slide 41: Cost Optimization: Q4 FY23 vs Q4 FY20
30-05-2023 Q4 FY23 Earnings 17 Cost Optimization: Q4 FY23 vs Q4 FY20 Down 1,926 bps *Expenses as a % of total revenue Down 820 bps Down 588 bps Down 196 bps Down 322 bps 24% 16% 8% 5% 8% 6% 23% 17% 64% 44% Payroll expense* F&B/Raw Material expense* Power & Fuel expense* Other Expenses* Total Expense
Slide 42: Lemon Tree Consolidated Profit & Loss Statement – Q4 FY23
30-05-2023 Q4 FY23 Earnings 18 Lemon Tree Consolidated Profit & Loss Statement – Q4 FY23 Q4 FY23 vs Q4 FY23 vs Rs. Cr Q4 FY23 Q3 FY23 Q4 FY20 Q3 FY23 Q4 FY20 Change (%) Change (%) Revenue from operations 252.7 233.5 176.1 8% 43% Other income 2.0 0.6 0.4 264% 394% Total revenue 254.7 234.1 176.5 9% 4
Slide 43: Consolidated Profit & Loss Statement Breakup
30-05-2023 Q4 FY23 Earnings 19 Lemon Tree Consolidated Profit & Loss Statement Breakup Lemon Tree Consolidated Keys Hotels Lemon Tree Consolidated excluding.Keys Hotels Rs. Cr Q4 Q3 Q4 QoQ YoY Q4 Q3 Q4 QoQ YoY Q4 Q3 Q4 QoQ YoY FY23 FY23 FY20 Change Change FY23 FY23 FY20 Change Change FY23 FY23 FY20
Slide 44: Discussion on Consolidated Financial & Operational Performance – Q4 FY23
30-05-2023 Q4 FY23 Earnings 20 Discussion on Consolidated Financial & Operational Performance – Q4 FY23 ❖ Revenue from operations stood at Rs. 252.7 Cr in Q4 FY23 which was up 8.2% from Rs. 233.5 Cr in Q3 FY23 and was up 43.5% as compared to Rs. 176.1 Cr in Q4 FY20 ❖ Gross ARR stood at Rs. 5,824 in
Slide 45: Strong FY23 performance across key financial metrics
30-05-2023 Q4 FY23 Earnings 21 Strong FY23 performance across key financial metrics FY23 performance snapshot vs FY22 & vs FY20 Revenue EBITDA EBITDA % FY23 Rs. 879 Cr Rs. 456 Cr 51.9% vs 111% up 208% up 1,635 bps up FY22 vs 30% up 87% up 1,574 bps up FY20 Aurika, Udaipur * As on 31st March 2023
Slide 46: Consolidated Profit & Loss Statement – 12 Months FY23
30-05-2023 Q4 FY23 Earnings 22 Lemon Tree Consolidated Profit & Loss Statement – 12 Months FY23 12M FY23 vs 12M FY23 vs Rs. Cr 12M FY23 12M FY22 12M FY20 12M FY22 12M FY20 Change Change Revenue from operations 875.0 402.2 669.4 118% 31% Other income 3.6 14.0 5.8 -75% -38% Total Income 878.6 416.3 67
Slide 47: Consolidated Balance Sheet as of 31st March 2023
30-05-2023 Q4 FY23 Earnings 23 Lemon Tree Consolidated Balance Sheet as of 31st March 2023 FY23 vs FY22 FY23 vs FY20 Rs. Cr FY23 FY22 FY20 Change Change Shareholder's Funds 853.7 831.2 988.9 3% -14% Non-controlling interests 559.7 567.6 555.9 -1% 1% Total Shareholder’s equity 1413.4 1398.9 1544.8 1%
Slide 48: Expansion Plans – Hotels under Development
30-05-2023 Q4 FY23 Earnings 24 Expansion Plans – Hotels under Development Expected Opening Under-development hotels Type Rooms Ownership (%) date Aurika, Mumbai International Airport Owned 669 CY23 58.91% Lemon Tree Mountain Resort, Shimla Owned 69 TBD 100.00% Total 738 Total estimated project cos
Slide 49: Expansion Plans – Snapshot of manage & franchise contracts pipeline
30-05-2023 Q4 FY23 Earnings 25 Expansion Plans – Snapshot of manage & franchise contracts pipeline
Slide 50: Pipeline of manage & franchise contracts by opening (1 of 2)
30-05-2023 Q4 FY23 Earnings 26 Expansion Plans – Pipeline of manage & franchise contracts by opening (1 on 2) Opening date as of 31/03/2023 # Hotels Pipeline City Rooms (Q4 FY23) Hotels pipeline as of 31/12/2022 (Q3 FY23) 2051 1 Lemon Tree Hotel, Hubli Hubli 65 Q2FY24 2 Lemon Tree Hotel, Rajkot Rajk
Slide 51: Pipeline of manage & franchise contracts by opening (2 of 2)
30-05-2023 Q4 FY23 Earnings 27 Expansion Plans – Pipeline of manage & franchise contracts by opening (2 on 2) Opening date as of 31/03/2023 # Hotels Pipeline City Rooms (Q4 FY23) 25 Keys Lite by Lemon Tree Hotels, Banswara Banswara, Rajasthan 54 Q1FY25 26 Lemon Tree Hotel, Kharar Kharar 60 Q1FY26 27
Slide 52: Aurika, SkyCity, Mumbai | Representation
30-05-2023 Q4 FY23 Earnings 28 Aurika, SkyCity, Mumbai | Representation
Slide 53: Aurika, SkyCity, Mumbai | Current Status
30-05-2023 Q4 FY23 Earnings 29 Aurika, SkyCity, Mumbai | Current Status
Slide 54: Aurika, SkyCity, Mumbai | Current Status
30-05-2023 Q4 FY23 Earnings 30 Aurika, SkyCity, Mumbai | Current Status
Slide 55: Aurika, SkyCity, Mumbai | Current Status
30-05-2023 Q4 FY23 Earnings 31 Aurika, SkyCity, Mumbai | Current Status
Slide 56: Aurika, SkyCity, Mumbai | Current Status
30-05-2023 Q4 FY23 Earnings 32 Aurika, SkyCity, Mumbai | Current Status
Slide 57: Lemon Tree Mountain Resort, Shimla | Representation
30-05-2023 Q4 FY23 Earnings 33 Lemon Tree Mountain Resort, Shimla | Representation
Slide 58: Roadmap for next 5 years
30-05-2023 Q4 FY23 Earnings 34 Unveiling Lemon Tree Hotels Roadmap for next 5 years Aurika SkyCity, Mumbai (Representation)
Slide 59: Our journey | Two decades of transforming the Indian hospitality landscape
30-05-2023 Q4 FY23 Earnings 35 Our journey | Two decades of transforming the Indian hospitality landscape 2022 2028 2018 • ~8,400 rooms • 20K+ rooms** • Lemon Tree Hotels IPO • 88 hotels • 300+ hotels*** • 50th hotel opened • 54 destinations 2010 • Lemon Tree 2019 2023 Premier brand • 13K+ rooms** l
Slide 60: Lemon Tree 2.0: Roadmap for next 5 years – CY24 to CY28
30-05-2023 Q4 FY23 Earnings 36 Lemon Tree 2.0: Roadmap for next 5 years – CY24 to CY28 Lemon Tree 2.0 Superior financial Mid-market hotel Strong balance Leader in Leader in performance flagbearer sheet digital ESG Strategic Levers Asset Light (How will we make this Digital Simplifying Growth and Ret
Slide 61: Outcomes
30-05-2023 Q4 FY23 Earnings 37 OUTCOMES
Slide 62: LT 2.0: setting clear and achievable outcomes over the next 5 years
30-05-2023 Q4 FY23 Earnings 38 LT 2.0: setting clear and achievable outcomes over the next 5 years Superior financial Mid-market hotel Strong balance Leader in digital Leader in ESG performance leader sheet Bionic Revenue 100% green 20k+ hotel certified Management rooms buildings Stable 50% network*
Slide 63: Strategic Levers
30-05-2023 Q4 FY23 Earnings 39 STRATEGIC LEVERS
Slide 64: Lemon Tree 2.0: Strategic levers (1 on 5)
30-05-2023 Q4 FY23 Earnings 40 Lemon Tree 2.0: Strategic levers (1 on 5) Asset Light Growth Network Effect Rapid expansion at negligible cost 300+ hotels**: Spread across length & breadth of India ~15k rooms network* of managed & franchised Pan-India hotel presence: We are everywhere portfolio 70%+
Slide 65: Accelerated growth in our portfolio planned for next years
30-05-2023 Q4 FY23 Earnings 41 Accelerated growth in our portfolio planned for next 5 years Total Rooms (in ‘000s) CY28 Total: 300+ hotels**, 20k+ rooms network* Total Hotels • Managed and Franchised rooms: >70% 300+ 300 25 • Owned rooms: <30% 150 No of hotel rooms 20 No of hotels 150+ (count) (in '
Slide 66: Lemon Tree 2.0: Strategic levers (2 on 5)
30-05-2023 Q4 FY23 Earnings 42 Lemon Tree 2.0: Strategic levers (2 on 5) Digital Transformation Build on Retail Bionic Pricing & Revenue Management 65% retail share target Next Gen Sales: Data driven sales recommendations Dynamic & Market driven pricing Data Driven decision making across functions &
Slide 67: Lemon Tree 2.0: Strategic levers (3 on 5)
30-05-2023 Q4 FY23 Earnings 43 Lemon Tree 2.0: Strategic levers (3 on 5) Nourish Loyalty Operate Lean Rewards Program: loyalty and churn management 50% EBIDTA: Industry leading efficiencies >40% repeat customers Smart operations: Real-time cost control towers Personalization: Improved customer exper
Slide 68: Lemon Tree 2.0: Strategic levers (4 on 5)
30-05-2023 Q4 FY23 Earnings 44 Lemon Tree 2.0: Strategic levers (4 on 5) Capital recycling of owned network Large network of owned hotels: 40 operational hotels with 5k+ rooms, 2 hotels with 700+ rooms in pipeline ~40% of total capital employed, operationalized in just the last 3 years ~20% of total
Slide 69: Aurika, SkyCity, Mumbai will be a game changer
30-05-2023 Q4 FY23 Earnings 45 Aurika, SkyCity, Mumbai will be a game changer Expected performance by benchmarking: Aurika Hotels and Resorts* Lemon Tree Premier* Aurika, SkyCity** Udaipur Mumbai Mumbai Key metrics (139 rooms) (303 rooms) (669 rooms) H1 FY23 H2 FY23 FY23 H1 FY23 H2 FY23 FY23 FY26 E
Slide 70: Lemon Tree 2.0: Strategic levers (5 on 5)
30-05-2023 Q4 FY23 Earnings 46 Lemon Tree 2.0: Strategic levers (5 on 5) Simplifying group structure Current group structure Lemon Tree Hotels Brand Owner + Asset Owner + Operator As of CY22 directly owns & operates 17 hotels, ~1.8k rooms By/before CY28, propose to transfer all 100% owned assets to
Slide 71: Simplified group structure by CY28
30-05-2023 Q4 FY23 Earnings 47 Simplified group structure by CY28 Simplified group structure Proposed group structure Lemon Tree Hotels Brand Owner + Asset Owner + Operator With Carnation Hotels merged into Lemon Tree and all 100% owned assets transferred to Fleur to recycle capital, Lemon Tree will
Slide 72: Enablers
30-05-2023 Q4 FY23 Earnings 48 ENABLERS
Slide 73: Consumption in India at tipping point
30-05-2023 Q4 FY23 Earnings 49 Consumption in India at tipping point Consumer spending, specially on Hospitality related categories expected to grow significantly faster than Nominal GDP in the coming years Indian GDP Consumer Spending CAGR Average CAGR (Nominal LCU) Multiplier (Nominal GDP to (Nomi
Slide 74: Demand outpacing supply in Indian hospitality landscape till FY28
30-05-2023 Q4 FY23 Earnings 50 Demand outpacing supply in Indian hospitality landscape till FY28 High demand period expected in next 5 years, to drive strong growth in ARR and occupancy % FY08-20 FY23-27E Demand-supply mismatch has significant impact on hotel industry ARR & revenues Hotel Demand to
Slide 75: Growing aspirations, affluence & willingness to pay in Bharat
30-05-2023 Q4 FY23 Earnings 51 Growing aspirations, affluence & willingness to pay in Bharat Average Household (HH) income to increase ~1.4x in the current decade, along with growth of affluence, especially in Tier 2,3 and 4 towns Average Household(HH) India - 2016 India - 2025 income (Lakhs.p.a) 20
Slide 76: Large underserved mid-scale market
30-05-2023 Q4 FY23 Earnings 52 Large underserved mid-scale market India is transitioning from the inverted supply pyramid to a corrected future with strong base of midscale and economy supply India's transitioning to global standards on hotel room supply Potential Future 2002 India: 2022* US: 2020**
Slide 77: Rigorous approach to risk management and risk mitigation
30-05-2023 Q4 FY23 Earnings 53 Rigorous approach to risk management and risk mitigation Identified Assessed Prioritized Mitigated Monitoring LTH's approach to the 14 risk that Tolerance limits Basis the the risks as per Ongoing / Enterprise Risk matters likelihood & Remove / Periodic management impa
Slide 78: ESG Vision FY26
30-05-2023 Q4 FY23 Earnings 54 ESG Vision FY26 Ambitious Targets set for owned properties to become an ESG Leader 100% Certified green building 15% Lower energy consumption* 15% Women in the workforce 50% Renewable energy 30% ODIs** in the workforce 10% Lower water consumption* Majority independent
Slide 79: Strategic Assets
30-05-2023 Q4 FY23 Earnings 55 STRATEGIC ASSETS
Slide 80: Distinct portfolio of brands, operating pan India
30-05-2023 Q4 FY23 Earnings 56 Distinct portfolio of brands, operating pan India Value for money hotel brands to cater from PAN – India network of owned, Expanding Wallet Share economy to upscale Managed & Franchised hotels of India's growing middle-class requirements captured by Lemon Tree LT Inven
Slide 81: Purpose driven culture
30-05-2023 Q4 FY23 Earnings 57 Purpose driven culture ESG* Vision FY26 Office of DE & I** Creating Sustained Value across Employees from Economically/ all stakeholders Socially marginalized Belief: Our business operations backgrounds are inherently integrated with delivering social and environmental
Slide 82: LTH has unique expertise as developer, owner & operator of hotels
30-05-2023 Q4 FY23 Earnings 58 LTH has unique expertise as developer, owner & operator of hotels Sales and Development Ownership Operations Land marketing Guest of hotels of hotels of hotels of hotels Development Ownership Management Brand • Identify strategically located land • Ability to at reason
Slide 83: Q4 FY23 Earnings
30-05-2023 Q4 FY23 Earnings 59
Slide 84: Annexures
30-05-2023 Q4 FY23 Earnings 60 Annexures
Slide 85: Operating performance over 6 years
30-05-2023 Q4 FY23 Earnings 61 Operating performance over 6 years Rooms are being added Occupancy (%) FY18 FY19 FY20 FY21 FY22 FY23 Trends for owned/leased rooms 8,489 8,382 8,006 8,309 5,411 2814 3117 3297 3292 4,870 1841 675 675 675 573 1593 481 573 4,517 4,517 4,517 4,517 46% 26% 23% 36% 49% 77%
Slide 86: Operating Performance over 6 years
30-05-2023 Q4 FY23 Earnings 62 Operating Performance over 6 years Revenue from operations (Rs. Cr) EBITDA (Rs. Cr) & EBITDA margins 875 51.9% 669 36.2% 35.5% 550 29.3% 31.9% 484 28.1% 402 252 144 179 244 75 148 456 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 FY22 EBITDA Margin% is wi
Slide 87: Lemon Tree – Snapshot as on 31st March 2023
30-05-2023 Q4 FY23 Earnings 63 Lemon Tree – Snapshot as on 31st March 2023 Operational Pipeline Operational + Pipeline Group 8,382 3,285 11,667 rooms; rooms; rooms; 88 hotels 42 hotels 130 hotels Brand Current Pipeline Operational + Pipeline Aurika Hotels & Resorts 194 Rooms; 2 Hotels 911 Rooms; 3 H
Slide 88: Portfolio Breakup as on 31st March 2023 - Operational
30-05-2023 Q4 FY23 Earnings 64 Portfolio Breakup as on 31st March 2023 - Operational Owned (incl. on leased Operational Portfolio Leased Managed/ Franchised Total land) Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 1 139 0 0 1 55 2 194 Lemon Tree Premier 7 1442 2 161 9
Slide 89: Portfolio Breakup as on 31st March 2023 - Pipeline
30-05-2023 Q4 FY23 Earnings 65 Portfolio Breakup as on 31st March 2023 - Pipeline Owned (incl. on leased Pipeline Portfolio Leased Managed/ Franchised Total land) Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika Hotels & Resorts 1 669 0 0 2 242 3 911 Lemon Tree Premier 0 0 0 0 2 95 2 95 Le
Slide 90: Conference Call Details
30-05-2023 Q4 FY23 Earnings 66 Conference Call Details Time • 02:30 PM IST on Thursday, June 01, 2023 Conference dial-in Primary number • Primary number: +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221 (Available all over India) • Hong Kong: 800 964 448 • Singapore: 800 101
Slide 91: About Lemon Tree Hotels
30-05-2023 Q4 FY23 Earnings 67 About Lemon Tree Hotels Lemon Tree Hotels Limited is India’s largest hotel chain in the mid-priced hotel sector, and the third largest overall, on the basis of controlling interest in owned and leased rooms, as of June 30, 2017, according to the Horwath Report. We oper