Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q3 FY2020/21 Earnings Presentation
38 slides from Indian Hotels's earnings presentation, Feb 3, 2021
Slide 1: Letter to BSE and NSE enclosing investor presentation
February 3, 2021 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: 50085
Slide 2: Global Conference Call Q3 FY 2020/21 Results
GLOBAL CONFERENCE CALL Q3 FY 2020/21 RESULTS | 3rd FEBRUARY, 2021
Slide 3: 2
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Slide 4: 2020: A Year of Unprecedented Challenges
2020: A YEAR OF UNPRECEDENTED CHALLENGES GLOBAL PANDEMIC HOSPITALITY SHUTS DOWN DECLINE IN REVENUE JOB LOSSES 100 Mn+ Cases 60 – 70% of all hotels ₹ 900 Billion revenue loss 40 – 45% of all direct employees 2 Mn+ Deaths were closed globally for Indian Hospitality in the organized sector lost their j
Slide 5: The Pandemic Is Re-Shaping Travel Behaviours
THE PANDEMIC IS RE-SHAPING TRAVEL BEHAVIOURS LEISURE & VALUE-DRIVEN & SHORT TERM RENTALS & BLEISURE TRAVEL IMMERSIVE TRAVEL HOMESTAYS WELLNESS TOURISM SUSTAINABLE TOURISM PHYGITAL MICE 4
Slide 6: We Reset Ourselves to Capitalize on the Opportunities
WE RESET OURSELVES TO CAPITALIZE ON THE OPPORTUNITIES 5
Slide 7: R.E.S.E.T 2020: Key Highlights
R.E.S.E.T 2020: KEY HIGHLIGHTS 6
Slide 8: Good Revenue Recovery and Rebound in RevPAR
R E S E T GOOD REVENUE RECOVERY AND REBOUND IN REVPAR *Data for All Domestic Hotels incl. Ginger Revenue Recovery and Improvement in RevPAR TRevenue as a % of LY RevPAR 3,424 2,484 1,794 1,340 975 869 734 466 339 60% 49% 43% 33% 28% 24% 22% 14% 7% Apr May Jun Jul Aug Sep Oct Nov Dec 7
Slide 9: Widening RevPAR Premium vs the Industry
R E S E T WIDENING REVPAR PREMIUM v/s THE INDUSTRY *Data for All Domestic Hotels incl. Ginger Source: STR Global RevPAR vs Industry - Premium RevPAR - IHCL RevPAR - Industry RevPAR Premium 1.59 1.59 1.48 1.50 3,424 Pre-COVID RevPAR Premium: 1.4X 1.28 1.22 1.23 2,484 1.17 2,159 1,794 1,558 1,340 0.89
Slide 10: Leisure Destinations Lead the Path to Recovery
R E S E T LEISURE DESTINATIONS LEAD THE PATH TO RECOVERY *Data for Domestic Hotels Incl. Ginger Enterprise Revenues – As a % of LY Q1 2020/21 Q2 2020/21 Q3 2020/21 80% 55% 53% 51% 50% 48% 44% 45% 41% 39% 38% 33% 33% 24% 23% 23% 24% 22% 21% 21% 18% 17% 16% 15% 15% 11% 12% 10% 8% 3% Goa Rajasthan Kolk
Slide 11: Maintaining the Growth Momentum in 2020/21
R E S E T MAINTAINING THE GROWTH MOMENTUM IN 2020/21 14 6 5 Hotels Signed Hotels Opened amãs Opened 10
Slide 12: Continued Focus on Excellence & Well-Being
R E S E T CONTINUED FOCUS ON EXCELLENCE & WELL-BEING 11
Slide 13: Sustained Optimization of Fixed Costs
R E S E T SUSTAINED OPTIMIZATION OF FIXED COSTS Fixed Expenses per Month 2019/20 2020/21 Decline in Fixed Costs Per Month ↓ 27% in 9M 2020/21 164 120 9M *All Numbers Include Fixed Lease Costs 12
Slide 14: New Ways of Working Help Optimize Manning
R E S E T NEW WAYS OF WORKING HELP OPTIMIZE MANNING 1.53 1.14 Staff to Room Ratio – Apr 2020 Staff to Room Ratio – Dec 2020 Redeployments Multiskilling New Ways of Working *Figures are for All Hotels At Enterprise Level Excluding the Managed Hotels 13
Slide 15: Asset Management Helps Bottomline
R E S E T ASSET MANAGEMENT HELPS BOTTOMLINE CONTRIBUTION TO CONSOLIDATED PROFITABILITY – 9M 2020/21 ₹ 49 cr + ₹ 15 cr = ₹ 64 cr LEASE COST SAVINGS SALE OF RESIDENTIAL APARTMENTS TOTAL CONTRIBUTION 14
Slide 16: Continued Reduction in Corporate Overheads
R E S E T CONTINUED REDUCTION IN CORPORATE OVERHEADS • Prudence in All Corporate Expenditure ↓ 28 % • Redeployments & Re-structuring Savings of ₹ 67 Crores in 9M 2020/21 15
Slide 17: R.E.S.E.T 2020: Helped Improve 9M Performance
R.E.S.E.T 2020: HELPED IMPROVE 9M PERFORMANCE ₹ 205 crores ₹ 280 crores ₹ 64 crores ₹ 67 crores 16
Slide 18: Ginger's R.E.A.P Strategy
GINGER’s R.E.A.P STRATEGY R E A P Build Contain Manage Adapt REVENUE EXPENSES ASSETS PROCESSES 17
Slide 19: Ginger's R.E.A.P Strategy Yielding Results
GINGER’s R.E.A.P STRATEGY YIELDING RESULTS R E A P Revenue Expenses Assets Processes • 9M Revenue - 57% of LY • EBITDA +ve in 9M 2020/21 • Now A 75 Hotel Portfolio • 4.74 TripAdvisor Score • 9M RevPAR Index - 1.23X • 31% Cost Reduction (9M) • 20% Lease Rent Reduction • Focus on Multiskilling • 60%+
Slide 20: Q3 & 9M 2020/21 Performance Highlights
Q3 & 9M 2020/21 PERFORMANCE HIGHLIGHTS 19
Slide 21: Improvement in Performance: EBITDA Positive in Q3
IMPROVEMENT IN PERFORMANCE : EBITDA +ve IN Q3 Consolidated Revenue – INR Cr Consolidated EBITDA – INR Cr 38 90% -83 ₹ 121 cr 615 85% -234 ₹ 151 cr 324 175 Q1 2020/21 Q2 2020/21 Q3 2020/21 Q1 2020/21 Q2 2020/21 Q3 2020/21 20
Slide 22: Trend and Comparison with Previous Year
TREND AND COMPARISON WITH PREVIOUS YEAR ₹ /crores REVENUE EBITDA PROFIT AFTER TAX EBITDA 2019/20 2020/21 2019/20 2020/21 2019/20 2020/21 1409 TOTAL 462 REVENUE 203 1057 1029 71 210 182 6 615 38 (119) 324 (83) 175 (230) (234) PAT (280) Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 TOTAL REVENUE Q1 PAT Includes profit o
Slide 23: Significant Portfolio EBITDA Positive in December 2020
SIGNIFICANT PORTFOLIO EBITDA POSITIVE IN DECEMBER 2020 Domestic Hotels 14% 86% EBITDA +ve EBITDA -ve *Data excludes Ginger hotels 22
Slide 24: IHCL Consolidated Financial Performance (Q3 & 9M 2020/21)
IHCL CONSOLIDATED FINANCIAL PERFORMANCE (Q3 & 9M 2020/21) GIRIDHAR SANJEEVI, EVP & CHIEF FINANCIAL OFFICER 23
Slide 25: IHCL Consolidated - Reported P&L
IHCL CONSOLIDATED - REPORTED P&L ₹ /crores Q3 9M Particulars 2020/21 2019/20 Var % 2020/21 2019/20 Var % Revenue from Operations 560 1,373 -59% 960 3,400 -72% Non Operating Revenue 55 36 51% 153 94 62% Total Revenue 615 1,409 -56% 1,113 3,495 -68% Raw Material Cost 56 117 -52% 87 287 -70% Employee B
Slide 26: Q3, 9M 2020/21 – IHCL Consolidated Exceptional Items
Q3, 9M 2020/21 – IHCL CONSOLIDATED Exceptional Items ₹ /crores Q3 9M Particulars 2020/21 2019/20 Var. 2020/21 2019/20 Var. Change in fair value of derivative contracts 6 (1) 7 23 (1) 24 Exchange gain/loss - IHMS SA 22 - 22 30 - 30 Profit on acquisition of Taj Capetown, South Africa - - - 82 - 82 Pro
Slide 27: IHCL Standalone - Reported P&L
IHCL STANDALONE - REPORTED P&L ₹ /crores Q3 9M Particulars 2020/21 2019/20 Var % 2020/21 2019/20 Var % Revenue from Operations 409 855 -52% 669 2,025 -67% Non Operating Revenue 25 36 -30% 97 99 -2% Total Revenue 434 890 -51% 766 2,124 -64% Raw Material Cost 43 74 -43% 64 180 -65% Employee Benefits 1
Slide 28: Q3, 9M 2020/21 – IHCL Standalone Exceptional Items
Q3, 9M 2020/21 – IHCL STANDALONE Exceptional Items ₹ /crores Q3 9M Particulars 2020/21 2019/20 Var. 2020/21 2019/20 Var. Change in fair value of derivative contracts 6 (1) 7 23 (1) 24 Provision for Pierre cash loss funding (62) - (62) (133) (27) (106) Profit on sale of TMFK shares - - - - 21 (21) To
Slide 29: Q3 2020/21 – IHCL Standalone Revenue Metrics
Q3 2020/21 – IHCL STANDALONE REVENUE METRICS Particulars Oct Nov Dec Q3 Q2 Occupancy % 40.8 46.7 54.6 47.4 32.3 ARR in ₹ 7,068 8,163 9,318 8,300 5,424 RevPAR in ₹ 2,886 3,814 5,087 3,936 1,751 (₹/ crores) Room Revenue 39 51 70 160 71 F & B Revenue 33 59 69 161 48 Other Revenue 25 38 50 113 96 Total
Slide 30: Q3 2020/21 – Domestic Network Revenue Metrics
Q3 2020/21 – DOMESTIC NETWORK REVENUE METRICS Particulars Oct Nov Dec Q3 Q2 Occupancy % 37.9 44.2 54.5 45.6 28.2 ARR in ₹ 4,731 5,619 6,286 5,643 3,759 RevPAR in ₹ 1,794 2,484 3,424 2,573 1,061 (₹/ crores) Room Revenue 90 121 174 384 154 F & B Revenue 73 123 157 353 106 Other Revenue 17 25 37 78 52
Slide 31: Debt Position
DEBT POSITION ₹ /crores Standalone Consolidated Particulars Dec 31, 2020 Sep 30, 2020 Dec 31, 2020 Sep 30, 2020 Gross Debt 2,595 2,499 3,588 3,462 Liquidity (420) (389) (509) (520) Net Debt 2,175 2,110 3,079 2,942 Weighted cost of Debt (%) 7.8 7.8 6.6 6.7 Net Debt to Equity 0.52 0.50 0.71 0.68 Net D
Slide 32: Q&A
Q&A 31 Tay SELE(QTIONS VIVANTA GINGER EXPRESSIINS Wwe@ | H C l 4
Slide 33: 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 34: Brandscape
BRANDSCAPE LUXURY SELECT HOTELS UPSCALE LEAN LUXE 26,000+ KEYS 214 HOTELS 13,100 KEYS 1400 KEYS 4,600 KEYS 7,000 KEYS 89 HOTELS 16 HOTELS 33 HOTELS 76 HOTELS *Portfolio figures include hotels under various stages of development 33
Slide 35: Operating Portfolio
OPERATING PORTFOLIO Inventory by Geography Inventory by Contract Type Intl, Holding 2654 Management Company, Contracts, 4533 6310 Dom, Group 16750 Companies, 8561 Dom Intl Holding Company Group Companies Management Contracts As of 31st Jan 2021, IHCL has 165 hotels with 19,404 Rooms 34
Slide 36: Shareholding Pattern
SHAREHOLDING PATTERN 17% Retail 41% 13% Tata Group FII 29% DII * As on 31st Dec 2020 35
Slide 37: Awards and Accolades
I AWARDS AND ACCOLADES Brand Finance | "Tales \ ‘| READERS’ tH \ THE \ CHOICE AWARDS = /; \ GOLD LIST Traveller READERS” CHOICE AWARDS 2020 aWaros h Cyc’e winners EARTHCHECK <Z TS - TRSGRE 7 é Nasi WORLD’S\ | Tait BEST \ THE AWARDS HoT List —_/ ____F NS INDIA'S BEST TRUSTYOU"™" 6 TAS SELE(QTIONS VIV
Slide 38: Global Conference Call Q3 FY 2020/21 Results
GLOBAL CONFERENCE CALL Q3 FY 2020/21 RESULTS | 3rd FEBRUARY, 2021
The Indian Hotels Company — Q3 FY2020/21 Earnings Presentation on 6ix