Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — H1 FY2010 Earnings Presentation
60 slides from Indian Hotels's earnings presentation, Oct 30, 2009
Slide 1: Analyst Meet: Results for half year ended September 30, 2009
The Indian Hotels Company Limited Analyst Meet Results for half year ended September 30, 2009 October 30, 2009 1 1
Slide 2: Disclaimer
Disclaimer These presentations 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 guaran
Slide 3: Presenter Panel
Presenter Panel Raymond Bickson - Managing Director Anil P Goel – Executive Director – Finance Ajoy Misra - Senior Vice President, Sales & Marketing 3 3
Slide 4: Outline of Presentation
Outline of Presentation Industry Trends – Quarter on Quarter New inventory Key Initiatives – Sales and Marketing Financial Results Treasury Initiatives 4 4
Slide 5: Industry Trends
Hotels Resorts and Palaces Industry Trends
Slide 6: Outlook
Outlook The Outlook has improved and there is a feel good factor in the market . We 6 are witnessing occupancies picking up across cities
Slide 7: Foreign Tourist Arrivals April to September 2009
Foreign Tourist Arrivals April to September 2009 700 600 500 400 300 200 100 0 January February March April May June July August September 2008 2009 Source: Ministry of Tourism 7
Slide 8: Occupancies - Quarter on Quarter Trend
Occupancies - Quarter on Quarter Trend 65 62 66 58 59 56 55 57 51 53 51 49 53 53 47 48 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai Q1 2009/10 Q2 2009/10 Source: Internal Survey Aggregate supply grew by 1500 rooms during the half year Occupancies in 2nd quarter show growth
Slide 9: ARRs – Quarter on Quarter Trend
ARRs – Quarter on Quarter Trend 9703 9409 8787 8982 8805 8418 7991 7865 6875 6573 6687 6741 5929 5672 5168 4667 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai Q1 2009/10 Q2 2009/10 Source: Internal Survey ARR’s in 2nd quarter softened whilst volume growth pursued 9
Slide 10: RevPARs – Quarter on Quarter Trend
Rev PARs – Quarter on Quarter Trend 5708 5123 5065 4931 5019 4681 4207 3932 4020 3779 3354 3634 3396 3021 2829 2449 South North Delhi Bangalore Chennai Hyderabad Kolkata Goa Mumbai Mumbai Q1 2009/10 Q2 2009/10 Source: Internal Survey RevPARs growth gradually visible 10
Slide 11: New Inventory
Hotels Resorts and Palaces New Inventory 11
Slide 12: Taj Group Inventory
Taj Group Inventory 11,546 12,027 9,182 9,931 10,464 7,942 8,219 101 97 88 82 76 66 62 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 12
Slide 13: New hotels in 2009/10
New hotels in 2009/10 Rooms IHCL Taj Lands End – Expansion - Launched 120 Taj Falaknuma Palace, Hyderabad (Feb 10) 60 Taj Group Taj Palace, Cape Town (Dec 09) Taj International SA 172 Fishcove Expansion, Chennai (Dec 09) Oriental Hotels Ltd. 64 Ginger Hotels – 2 cities – launched Roots Corporation L
Slide 14: Taj Lands End
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Slide 17: Taj Lands End
Taj Lands End
Slide 18: Vivanta by Taj, Panjim
Vivanta by Taj, Panjim
Slide 19: Vivanta by Taj, Panjim
Vivanta by Taj, Panjim
Slide 20: Vivanta by Taj, Panjim
Vivanta by Taj, Panjim
Slide 21: Vivanta by Taj, Panjim
Vivanta by Taj, Panjim
Slide 22: Vivanta by Taj, Panjim
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Slide 23: Vivanta by Taj, Panjim
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Slide 24: The Pierre, New York
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Slide 25: The Pierre, New York
The Pierre, New York
Slide 26: The Pierre, New York
The Pierre, New York
Slide 27: The Pierre, New York
The Pierre, New York
Slide 28: The Pierre, New York
The Pierre, New York
Slide 29: Vivanta by Taj Coral Reef Maldives
Vivanta by Taj Coral Reef Maldives
Slide 30: Vivanta by Taj Coral Reef Maldives
Vivanta by Taj Coral Reef Maldives
Slide 31: Vivanta by Taj Coral Reef Maldives
Vivanta by Taj Coral Reef Maldives
Slide 32: Vivanta by Taj Coral Reef Maldives
Vivanta by Taj Coral Reef Maldives
Slide 33: Vivanta by Taj Coral Reef Maldives
Vivanta by Taj Coral Reef Maldives
Slide 34: Vivanta by Taj Coral Reef Maldives
Vivanta by Taj Coral Reef Maldives
Slide 35: Vivanta by Taj Coral Reef Maldives
Vivanta by Taj Coral Reef Maldives
Slide 36: Vivanta by Taj Coral Reef Maldives
Vivanta by Taj Coral Reef Maldives
Slide 37: Vivanta by Taj Coral Reef Maldives
Vivanta by Taj Coral Reef Maldives
Slide 38: Domestic Management Contracts in pipeline
Domestic Management Contracts in pipeline Rooms Vivanta Vivanta by Taj, Bekal 72 Vivanta by Taj, Gurgaon 208 Vivanta by Taj, Karkarduma, Delhi 180 Vivanta by Taj, Nagpur 337 Vivanta by Taj, Pondichery 60 Gateway Gateway, OMR, Chennai 159 Gateway, Hinjewadi 150 Gateway, Karkarduma 300 Gateway, Kolkat
Slide 39: International Management Contracts in pipeline
International Management Contracts in pipeline Rooms Taj Taj Palace Temple of Heaven China 60 Taj Palace, Hainan China 500 Exotica Resort & Spa, Palm Island Dubai 262 Taj Exotica Resort & Spa, Doha Qatar 150 Taj Mahal, Yas Island, Abu Dhabi UAE 500 Taj Hotel, Mina Zayed, Abu Dhabi UAE 300 Taj Tangie
Slide 40: Key initiatives – Sales and Marketing
Key initiatives – Sales and Marketing 40
Slide 41: Our Response to Changing Market Dynamics
Our Response to Changing Market Dynamics 41
Slide 42: Key initiatives
Key initiatives Launch of Surprises Stay A bit Longer Taj Holidays FlyNStay Re opening of The Pierre 42
Slide 43: Launch Of Surprises
Launch Of “ Surprises ” The thought: This season, we hope to make every guest’s stay memorable and “Surprising”. The Surprises are in the form of the various offers or rewards offered by the Taj. 43
Slide 44: Stay A Bit Longer
Stay A Bit Longer: May 09 Length of Stay Based Launched on 22nd May 2009 44
Slide 45: Taj Holidays FlyNStay
Taj Holidays FlyNStay: Jun 09 Leverage Taj Holidays Platform Joint Partnership: Travelocity and Visa Bundled Offer First In Class 45
Slide 46: Re Launch of The Pierre
Re Launch of The Pierre A Taj Hotel , New York The hotel has just undergone a 100 million renovation of all the guest rooms, corridors, public areas and lobby & reopened on June1st 2009. 189-guest rooms including 49 suites have undergone a complete renovation. Their high ceilings and abundant natura
Slide 47: Advertising: Taj – Pierre And Pierre Again
Advertising : Taj – Pierre And Pierre Again 47
Slide 48: Financial result H1 2009/10
Financial result H1 2009/10 48 48
Slide 49: Highlights – Half year ended 2009/10
Highlights – Half year ended 2009/10 Turnover of Rs.592 crores PBIT of Rs.67 crores PBT of Rs.43 crores PAT of Rs.28 crores EPS at Rs. 0.39 49 49
Slide 50: Turnover Trend
Turnover Trend 744.7 686.3 592.1 Rs. Crores 340.6 367.8 307.2 Q2 H1 2007/08 2008/09 2009/10 50 50
Slide 51: PBIT Trend
PBIT Trend 216.4 190.0 Rs. Crores 97.4 98.9 66.9 48.4 Q2 H1 2007/08 2008/09 2009/10 51 51
Slide 52: Financial Results Half year ended 2009/10
Financial Results Half year ended 2009/10 Rs. Crores 2009/10 2008/09 % Change Net Sales/Income from Operations 548.28 744.73 (26) Other Operating Income 43.79 - - Total Income 592.07 744.73 (20) a. Consumption of Raw Materials 46.13 60.72 (24) b. Staff Costs 172.89 176.02 (2) c. License Fees 35.94 4
Slide 53: Financial Results Half year ended 2009/10
Financial Results Half year ended 2009/10 Rs. Crores 2009/10 2008/09 % Change Room sales 262.07 399.36 (34) F&B Sales 211.07 257.72 (18) Other operating income 118.93 87.65 36 Non Operating Income 31.61 52.72 (40) Sales & Other Operating Income 623.68 797.45 (22) Other operating Income includes Rs 4
Slide 54: Quarterly Trends
Quarterly Trends 2009/10 2008/09 Rs. Crores Q1 Q2 Variance Q1 Q2 Variance Room Revenue 125.74 136.32 8% 205.73 193.63 -6% F & B Revenue 99.20 111.86 13% 127.38 130.34 2% EBITDA 48.17 73.00 52% 131.75 112.11 -15% Occupancy (%) 52 60 + 8 Pts 66 64 - 2 Pts ARR (Rs) 8052 7453 -7% 10049 9763 -3% Rev PAR
Slide 55: Expenditure
Expenditure Raw Materials Cost – Rs 46.1 crores Raw Materials cost as a % of F&B revenues were lower at 21.9% ( PY 23.6%). Staff Cost – Rs 172.9 crores Lower by Rs 3.1 crores despite increased inventory ( Vivanta, Bangalore and Taj Lands End, Mumbai) Depreciation – Rs 50.3 crores Higher depreciation
Slide 56: Exceptional item
Exceptional item Sale of Assets / Investments – Rs 45.6 crores Includes profit on sale of investments – Rs 38.8 crores and profit on sale of a hotel project – Rs 6.8 crores Exchange Gain / (Loss) – Rs 4.0 Crores Gain on revaluation of foreign currency liabilities 56 56
Slide 57: Taj Mahal Mumbai - Insurance
Taj Mahal Mumbai - Insurance Discussions with the Insurers are underway and claim expected to be finalized by year end On account payments have been received aggregating to Rs 130 crores thus far towards the claim 57 57
Slide 58: Treasury Initiatives
Hotels Resorts and Palaces Treasury Initiatives 58
Slide 59: Treasury Initiatives
Treasury Initiatives Solutions to address the Company’s current consolidated leverage are in an advanced stage of finalisation which will facilitate accomplishment of the following key objectives: – Migrate short tern debt into long term debt – Reduce cost of borrowings – Other initiatives to improv
Slide 60: Thank you
Hotels Res: and Palace Thank you 60
The Indian Hotels Company — H1 FY2010 Earnings Presentation on 6ix