Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — 9M FY2008 Earnings Presentation
47 slides from Indian Hotels's earnings presentation, Jan 28, 2008
Slide 1: The Indian Hotels Company Limited Analyst Meet
The Indian Hotels Company Limited Analyst Meet Results for the Nine Months ended December 31, 2007 January 28, 2008 1
Slide 2: Presenter Panel
Presenter Panel Raymond Bickson - Managing Director Anil P Goel – Chief Financial Officer Ajoy Misra - Senior Vice President, Sales & Marketing 2
Slide 3: Outline of Presentation
Outline of Presentation Industry trends Financial performance Update on International Properties Overview of Taj Group New Properties added Expansion Plans Food & Beverage initiatives 3
Slide 4: Industry Trends
spuory, Arsnpuy saueyed pur SUOSOY SPIO
Slide 5: Tourism - Overview
Tourism - Overview Travel & Tourism contributes 10% of the Global GDP Global Travel & Tourism activity expected to increase by 5% in the next ten years India Foreign Tourist arrivals to India increased by 14% to 4.4 million in 2006. Foreign exchange earnings from Tourism amounted to $6.6 Billion in
Slide 6: Foreign Tourist Arrivals
Foreign Tourist Arrival – Current Year Foreign Tourist Arrivals 12% 4.4m 14% 3.9m 3.4m 2005 2006 2007 Period: January – November, Source: Department of Tourism • Continued buoyancy in foreign tourist arrivals in Year 2007 • Strong domestic demand 6
Slide 7: Current Occupancies (April to December)
Current Occupancies (April to December) 76 73 73 74 72 72 71 72 69 70 68 65 65 66 65 64 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai FY08 FY07 Source: Internal Survey Aggregate supply grew by 2% to 18,050 rooms per day Aggregate demand grew by 1% to 12,560 rooms per day 7
Slide 8: Current ARRs (April to December)
Current ARRs (April to December) 11887 11664 11834 11718 11367 10053 9443 8887 7884 7973 7515 6955 6855 6477 5982 5267 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai FY08 FY07 Source: Internal Survey ARR grew across major metro cities in the range of 15% to 30% Hyderabad saw
Slide 9: Current RevPARs (April to December)
Current RevPARs ( April to December) 8610 8389 8117 8460 7676 7312 6513 6169 5398 5549 4929 5158 4583 4442 3788 3831 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai FY08 FY07 Source: Internal Survey Growing RevPAR a testimony to strong rates & occupancy across cities Bangalor
Slide 10: Financial Performance
JIULPWIOJIIg [VIOUPUL (VL
Slide 11: Highlights – Quarter ended December 31, 2007
Highlights – Quarter ended December 31, 2007 Turnover at Rs.527 crores – an increase of 15% EBITDA at Rs.251 crores - higher by 29% PBT at Rs.206 crores - higher by 33% PAT at Rs.135 crores – increase of 31% EPS Higher at Rs.2.23 from Rs.1.70 11
Slide 12: Financial Results – Quarter ended December 31, 2007
Financial Results – Quarter ended December 31,2007 Rs. Crores 2007/08 2006/07 % Change Sales & Other Operating Income 520.62 454.43 15 Other Income 6.49 3.80 71 Total Income 527.11 458.23 15 Consumption of Raw Material 35.79 34.49 (4) Staff Cost 76.44 77.61 2 License Fees 31.71 29.79 (6) Fuel, Power
Slide 13: Highlights – For Nine Months ended December 31, 2007
Highlights – For Nine Months ended December 31, 2007 Turnover of Rs.1256 crores - up by 16% EBITDA of Rs.503 crores - up by 28% PBT of Rs. 367 crores – up by 33% PAT of Rs.243 crores – up by 29% EPS higher at Rs. 4.02 CY vs Rs. 3.12 PY 13
Slide 14: Turnover Trend
Turnover Trend 1256.5 1078.5 761.7 527.1 458.2 Rs. Crores 328.5 Quarter 3 9 Months FY06 FY07 FY08 Nine Months growth - 16% over last year Quarter 3 growth – 15% over last year 14
Slide 15: EBITDA Trend
EBITDA Trend 502.8 392.2 251.2 218.8 194.2 Rs. Crores 115.5 Quarter 3 9 Months FY06 FY07 FY08 Nine months growth - 28% over last year Quarter 3 growth – 29% over last year 15
Slide 16: Financial Results – Nine Months ended December 31, 2007
Financial Results –For the Nine Months ended December 31, 2007 Rs. Crores 2007/08 2006/07 % Change Sales & Other Operating Income 1206.88 1038.04 16 Other Income 49.60 40.49 22 Total Income 1256.48 1078.53 16 Consumption of Raw Material 90.89 85.24 (7) Staff Cost 220.83 204.30 (8) License Fees 69.90
Slide 17: Financial Results – Nine Months ended December 31, 2007
Financial Results – For the Nine Months ended December 31, 2007 Rs. Crores 2007/08 2006/07 % Change Room sales 655.44 559.54 17 F&B Sales 407.61 359.17 13 Other operating income 143.83 119.33 21 Non Operating Income 49.60 40.49 22 Sales & Other Operating Income 1256.48 1078.53 16 Room Sales driven b
Slide 18: ARR & Occupancy
ARR & Occupancy Occupancy (%) ARR (Rs) RevPAR (Rs) 2007 % 2007/08 2006/07 2007/08 2006/07 2006/07 /08 Change Q1 69 68 8513 7168 5887 4863 21 Q2 66 66 8633 7403 5739 4904 17 Q3 76 76 12279 10643 9325 8096 15 Nine Months 71 70 9907 8505 6987 5958 17 18
Slide 19: Expenditure
Expenditure Gross Profit Margin - 40% ( Last year – 36%) Staff cost increases at 8% over last year in line with industry trends Increase in Other Expenses on account of higher A&P spends, increased variable operating costs and a one-time charge for an infructuous project. Higher Interest expense on
Slide 20: Key International Properties – An Update
Key International Properties An Update 20
Slide 21: The Pierre
The Pierre US$ 80 Million renovation commenced on January 1, 2008 Funding through a combination of equity / debt Rooms, Restaurants and public areas shut down for renovations Banqueting business continues to operate Head count reduced through a combination of severance / layoffs All hotel facilities
Slide 22: The Pierre – Performance vis a vis Competition
The Pierre – Performance vis a vis Competition 2007 2007 2007 2007 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Pierre Occupancy (%) 64% 74% 65% 71% ADR ($) 472 582 535 742 RevPAR ($) 302 430 349 527 Competition Occupancy (%) 72% 82% 75% 83% ADR ($) 630 776 758 989 RevPAR ($) 454 633 570 821 Source: STR Report C
Slide 23: The Pierre – Awards & Recognition
The Pierre Awards & Recognition: – January, 2008 – Travel & Leisure - 500 Best Hotels of 2008: The Pierre was rated as 1 of 11 top NYC hotels. – July, 2006 - Travel & Leisure's Annual Readers' Poll - World's Best Awards 2006 – The Pierre was voted amongst the Top 25 hotels in New York 23
Slide 24: Taj Boston – Performance vis a vis competition
Taj Boston – Performance vis a vis competition 2007 2007 2007 2007 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Taj Boston Occupancy (%) 24% 62% 75% 64% ADR 262 329 322 361 Rev PAR 63 204 242 231 Competition Occupancy (%) 61% 80% 87% 73% ADR 272 342 341 354 Rev PAR 165 273 295 258 Source: STR Report Competition
Slide 25: Taj Boston – Awards & Recognition
Taj Boston Awards & Recognition: – January, 2008 - Conde Nast Traveler, USA - 2008 Gold List 721 World's Best Places to Stay - – January, 2008 - Travel & Leisure - The Worlds 500 Best Hotels - Taj Boston; – December, 2007 - Taj Boston included in Institutional Investor’s ranking of The World's Best
Slide 26: Campton Place – Performance vis a vis competition
Campton Place – Performance vis a vis competition 2007 2007 2007 Apr-Jun Jul-Sep Oct-Dec Campton Place Occupancy (%) 65% 75% 68% ADR ($) 289 297 346 Rev PAR ($) 186 224 235 Competition Occupancy (%) 71% 75% 73% ADR ($) 384 408 405 Rev PAR ($) 271 306 296 Source: STR Report Competition set: Four Seas
Slide 27: Campton Place – Awards & Recognition
Campton Place Awards & Recognition:: – January, 2008 – Travel +Leisure 500 Best Hotels 2008: 1 of 4 hotels in San Francisco included, with a score of 87, ahead of Ritz-Carlton, Four Seasons and Mandarin Oriental – January, 2008 - Zagat Northern California Restaurants 2008: Campton Place Restaurant i
Slide 28: Blue – Performance vis a vis competition
Blue – Performance vis a vis competition 2007 2007 2007 Apr-Jun Jul-Sep Oct-Dec Blue Occupancy (%) 63% 64% 72% ADR ($) 249 249 298 Rev PAR ($) 158 158 215 Competition Occupancy (%) 72% 74% 82% ADR ($) 268 278 303 Rev PAR ($) 192 207 247 Source: Australian Hotels Association Competition set: The Obse
Slide 29: Sales & Marketing
Sales & Marketing Other Sales and marketing support through - – Access to 23 LHW offices across the globe – 10 Taj International Sales Offices – Staffing at the offices in the US has been increased. New office opened in San Francisco and sales rep appointed in Russia – Promoted through 13 Sales Offi
Slide 30: Joint Activities Undertaken by all US hotels
Joint Activities Undertaken by all 3 US hotels To improve efficiencies and synergies, a number of activities are being undertaken jointly by all 3 US hotels: – Joint Advertising : print and e channels – Joint collateral – Joint Sales Calling – Joint participation at key Trade Events – Leveraging Cor
Slide 31: Taj Brand Campaign
Taj Brand Campaign Publications used -Conde Nast Traveler -Departures -Travel & Leisure -Forbes -Fortune - Business Week -Economist 31
Slide 32: Taj Brand Campaign
Taj Brand Campaign 32
Slide 33: Taj Brand Campaign
Taj Brand Campaign 33
Slide 34: Taj – An overview
Taj — An overview EES rere)
Slide 35: Taj Group – Inventory
Taj Group – Inventory Hotel (Room) Nos. Luxury Business Leisure International Ginger Total IHCL 8 (2,154) 5 (422) 11 (863) 24 (3,439) Subsidiaries 1 (88) 6 (1,111) 11 (1,101) 18 (2,300) Asscociate Companies 1 (207) 7 (928) 6 (509) 1 (162) 15 (1,806) Joint Venture 1 (260) 3 (422) 7 (251) 3 (418) 14 (
Slide 36: Overview of Taj Group
Overview of Taj Group Particulars 2007/08 2006-07 2005-06 2004-05 9M No. Of Hotels 87 82 76 66 Inventory 10,487 9,931 9,182 8,219 Total Income – Rs / crores 3102 3834 3042 2219 Total Income – USD / Million 795 958 676 493 Total revenues in 2006/07 grew by 26% over previous year and 73% over 2004/05
Slide 37: 25 properties added in last four years
New Properties 25 properties added in last four years 37
Slide 38: New Properties added
New Properties added 2004 2005 2006 2007 Taj Exotica, The Pierre, New Blue, Sydney Ginger, Pune Taj Boston, Ginger, Mauritius York Boston Puducherry 100 Rooms 101 Rooms 65 Rooms 201 Rooms 273 Rooms 100 Rooms Taj Langkawi Ginger, Wellington Mews Umaid Bhavan Mysore Baghvan, Ginger, Baroda 104 Rooms 8
Slide 39: Expansion Plan
uv g uotsuedxy saueyed pur SUOSOY SPIO
Slide 40: Management Contracts – New Hotels to open in Q4
New Hotels to open in Q4 - Current Year Taj ITPL, Bangalore (IHCL) - March ,2008 199 rooms Taj Mount Road, Chennai (Taj GVK Ltd.) – March, 2008 215 rooms Management Contracts Taj Residency, Trivandrum – February, 2008 134 rooms Taj Tashi, Thimpu, Bhutan – February, 2008 66 rooms 40
Slide 41: Rollout in 2008/09
Rollout in 2008/09 Taj Lands End, Mumbai (Expansion) 142 rooms Taj Residency, Bangalore 350 rooms Nadesar Palace, Varanasi 10 rooms Fisherman’s Cove, Chennai (Expansion) 64 rooms 41
Slide 42: Expansion Plan – New Builds
Expansion Plan – New Builds Project Cost Hotel Rooms (Rs / Crores) Year of opening IHCL Taj ITPL, Bangalore 199 112 March, 2008 Taj Lands End (Expansion) 142 76 July, 2008 Taj Residency, Bangalore 350 160 March, 2009 Taj Lake End, Udaipur 80 25 April 2009 Taj Falaknuma Palace, Hyderabad 60 85 August
Slide 43: Expansion Plan – Management Contracts
Expansion Plan – Management Contracts Hotel Rooms Year of opening Domestic Taj Residency, Trivandrum 134 February, 2008 Taj Residency, Nagpur 300 April, 2009 Gateway, Chennai 159 April, 2009 Taj Residency, Panjim 154 April, 2009 Gateway, Gondia 35 April, 2009 Gateway, Raipur 123 September, 2009 Gate
Slide 44: Food & Beverage initiatives
Food & Beverage initiatives 44
Slide 45: Food & Beverages initiatives
Food & Beverages initiatives New Restaurants – Bairo – Lake Palace, Udaipur – Prego – Taj Coromandel, Chennai – Graze – Residency, Bangalore Refurbished – Thai Pavilion – Taj President, Mumbai – Encounters – Taj Krishna, Hyderabad To open – Wasabi – Taj Mahal, Delhi – Souk – Taj Bengal, Kolkata – Ma
Slide 46: IHCL Stock Performance
unt DOUPWIOJIIT YI01IS TOHI | Of3Sd m ANYdAOD STSLOH NVIONI
Slide 47: Thank you
noA yueyL saueyed pur SUOSOY SPIO
The Indian Hotels Company — 9M FY2008 Earnings Presentation on 6ix