Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Investor Presentation (May 2019)
28 slides from Indian Hotels's investor presentation, May 2019
Slide 1: Investor Presentation
Investor Presentation May 2019
Slide 2: South Asia's largest hospitality company with a legacy of 115 years
We are South Asia’s largest hospitality company with a legacy of 115 years 100+ 4 12 locations continents countries 179 22,000+ $1 Billion+ Group revenue hotels keys 32,000+ associates 2
Slide 3: Travel & Tourism in India – The outlook continues to be strong
Travel & Tourism in India – The outlook continues to be strong 6.7% T&T Contribution to GDP (10 year outlook) $247 Bn 450 2018 - T&T Contribution to GDP 247 12.8% 5.2% 87.2% 94.8% 2018 2028 Domestic International Leisure Business Creation of 10 Mn jobs in the next 10 years Source: WTTC Report - Trav
Slide 4: The Indian hospitality market is turning around
The Indian hospitality market is turning around Industry Same Store Occupancy 65.3% 67.0% (0.2 pp) (1.7 pp) ARR ₹ 5,846 ₹ 5,920 (1.8 %) RevPAR ₹ 3,819 ₹ 3,968 (2.0 %) Source : STR Horwath India Hotel Market Review 2018 report 4
Slide 5: Demand growth outpacing supply
Demand growth outpacing supply Luxury Supply growth 3.2% Demand growth 5.0% Industry* Upper Upscale Supply growth 3.6% Supply growth 2.8% Demand growth 4.3% Demand growth 4.3% Upscale Supply growth 4.3% Demand growth 3.5% Source : STR Global *All figures are for calendar year 2018 **Does not include
Slide 6: Aspiration 2022
Aspiration 2022 Unveiled in February, 2018 15 NEW PROJECTS EVERY YEAR 8% EBITDA MARGIN EXPANSION 50-50 PORTFOLIO 6
Slide 7: Strategic Initiatives
Strategic Initiatives Path to Execution Re-structure Re-imagine Re-engineer Scale up Inventory Manage Brandscape Expand Margins Sell Non Core Assets Multiply Portfolio Embrace Technology Simplify Holding Structure Manoeuvre Excellence Engage People 7
Slide 8: Reimagined Brandscape
Reimagined Brandscape Luxury 82 hotels 12,000 keys Upper Upscale 12 hotels 1,200 keys Upscale 27 hotels 4,000 keys 179 Hotels Lean Luxe 22,000+ Keys 58 hotels 4,900 keys *Portfolio including Low ARR pipeline High 8
Slide 9: SMART Strategic Margin Asset Relationships Tracking
Pipeline Ramped up SMART Strategic Margin Asset Relationships Tracking Enhancing Management 22 + 4 New Contracts Signed in FY 2018/19 Signed in April, 2019 9
Slide 10: Our Portfolio – India Focus, selective International Expansion
Our Portfolio – India Focus, selective International Expansion 22 3903 22% 179* Hotels 22,000+* Keys Brandscape 55% 17% (Post migrations) 18328 6% 157 Domestic International Domestic International Taj SeleQtions Vivanta Ginger 179 hotels with 149 operational and another 30 under development *includi
Slide 11: Increasing Salience of Management Contracts underscores Asset Light Approach
Increasing Salience of Management Contracts underscores Asset Light Approach 23% 20% Holding Company Holding Company 32% 40% Management Contracts Management Contracts 45% 40% Group Companies Group Companies Portfolio as on 31st March 2018 Portfolio as on 31st March 2019 11
Slide 12: Onground Operational Excellence driving Business Performance
Onground Operational Excellence driving Business Performance Employee Guest Engagement Engagement Operational Excellence Margin Process Enhancement Excellence 12
Slide 13: Strong Consolidated Performance – FY 2018/19
Strong Consolidated Performance – FY 2018 / 19 Revenue EBITDA EBITDA Margin PAT ₹ 4,595 cr ₹ 913 cr 19.87% ₹ 287 cr 229 10% 25% 184% bps ₹ 4,165 cr ₹ 732 cr 17.58% ₹ 101 cr 13
Slide 14: Achieved Sustainably Quarter on Quarter
Achieved Sustainably Quarter on Quarter Revenue (₹ Cr) – Up 10% EBITDA (₹ Cr) – Up 25% 1500 1338 1282 400 350 1217 1164 322 300 920 995 864 981 300 265 1000 200 126 116 500 99 100 67 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PY CY PY CY PAT (₹ Cr) – Up 184% EBITDA Margin – Up 229 bps 200 30.0% 25% 26% 25% 162 23%
Slide 15: Financial Turnaround
Financial Turnaround 15
Slide 16: Journey so far
Journey so far 2015 / 16 2016 / 17 2017 / 18 Now Industry uptick Balance Sheet strength Strategic Clarity Delivery of Performance Development Momentum 16
Slide 17: Consolidated – Reported Profit & Loss Statement
Consolidated – Reported Profit & Loss Statement ₹ /crores Year Ended 2018/19 Particulars 18/19 17/18 Growth vs PY Revenue from Operations 4,512 4,104 10% Non Operating Revenue 83 62 35% Total Revenue 4,595 4,165 10% Total Expenditure 3,682 3,433 7% EBITDA 913 732 25% Operating EBITDA 830 670 24% EBI
Slide 18: A Year of Turnaround for USA and UK
A Year of Turnaround for USA and UK REVENUE EBITDA St. James Court, London 10% St. James Court, London 43% The Pierre, NY 9% The Pierre, NY 24% Taj Campton Place, SFO 8% Taj Campton Place, SFO 69% EBITDA MARGIN RevPAR INDEX St. James Court, London 522 bps St. James Court, London 94 102 The Pierre,
Slide 19: Aspiration 2022 – 8% Margin Expansion
Aspiration 2022 – 8% Margin Expansion Drivers of margin expansion Particulars Margin Improvement Revenue RevPAR Growth Other Operating Income 3 to 4 % Management Fee Income Incremental Income from New Inventory Costs Operational Payroll Procurements (Raw Materials, Stores & Supplies) Corporate Overh
Slide 20: An Ecosystem for Revenue and Margin Growth
An Ecosystem for Revenue and Margin Growth Jiva Khazana Topline Drivers Travel Chambers Desks Margin Hotels Drivers Air Market Share F&B Catering Concepts Drivers Shop Rentals 20
Slide 21: Sustainable Cost Optimization and Re-Engineering
Sustainable Cost Optimization and Re-Engineering Solution wise contribution to Benefits Coverage SYNERGISE ₹ 1500 crores of cost at network Level across (PRICE) legal entities RE-ENGINEER Raw materials (CONSUMPTION) Power & Fuel Stores & Supplies RE-IMAGINE (DIGITAL SOLUTIONS) Part of Selling Cost S
Slide 22: Managing Leverage: Preserving Balance Sheet health
Managing Leverage: Preserving Balance Sheet health ₹ /crores 1.63 1.25 1889 1925 4216 3151 Improving D / E 0.45 0.44 2580 2518 4181 4348 2015 / 16 2016 / 17 2017 / 18 2018 / 19 Equity Net Debt Net Debt : Equity Net Debt: EBITDA 6.47 4.74 2.58 2.11 22
Slide 23: All levers – EBITDA, Monetization, Equity Infusions used effectively
All levers – EBITDA, Monetization, Equity Infusions used effectively ₹ /Crores Particulars 2015/16 2016/17 2017/18 2018/19 EBITDA 652 665 732 913 Divestments* 151 1,163 - 246 Equity - 1,500 * Divestments include – Taj Boston; Holding in Belmond, Tata Projects, Titan Ltd, Vizag & Trivandrum hotel, Re
Slide 24: Asset Management: Focus on building a smarter Balance Sheet
Asset Management: Focus on building a smarter Balance Sheet Monetization Structured Transactions – Sale and Manage Back Unlocking Value of Land Banks – Sale / New Build Exploring Sale & Lease Back Opportunities Sale of Non-Core Assets Management Alliances with Funds and development Partners Greenfie
Slide 25: New Platform furthers our SMART approach to Acquisitions
New Platform furthers our SMART approach to Acquisitions ₹ 4,000 crore (USD 600 Mn) Investment Platform 25
Slide 26: Summary: Key Imperatives for Aspiration to Execution
Summary: Key Imperatives for Aspiration to Execution ASPIRATION: TO BE THE MOST ICONIC AND PROFITABLE HOSPITALITY COMPANY 26
Slide 27: Strong institutional shareholding
Strong institutional shareholding Shareholding Pattern* Top institutional investors* Investors % stake in IHCL Retail, 13% Reliance Mutual Fund 7.79 Tata Group, HDFC Mutual Fund 5.66 39% Franklin Templeton Mutual Fund 3.07 FII, 12% Government Pension Fund Global 2.74 ICICI Prudential Life Insurance
Slide 28: 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
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