Indian Hotels Co. Ltd. · NSE:INDHOTEL

Indian Hotels — The Indian Hotels Company — Investor Presentation (May 2016)

62 slides from Indian Hotels's investor presentation, May 2016

  1. Slide 1: The Indian Hotels Company Limited Corporate Presentation

    The Indian Hotels Company Limited Corporate Presentation May ,2016 1

  2. 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 guara

  3. Slide 3: Key Highlights

    Key Highlights Monsoon, 2015 GDP growth India’s GDP Inflation, World GDP growth of India higher projected to Oil Prices, projected at 3.2% Reforms key areas than China grow by 7.5 % in for 2016 to look out for 7.3% vs 6.9% 2016/17 in India’s growth Growth rate in Foreign Tourists Occupancies Domesti

  4. Slide 4: Presentation Structure

    Presentation Structure  Industry Highlights  Taj Group – An Overview  New Inventory  Land Bank  Financial Performance  Awards & Accolades 4

  5. Slide 5: Industry Highlights

    8 TAJ Industry Highlights

  6. Slide 6: Industry Highlights - Outlook

    Industry Highlights - Outlook  International travel and tourism arrivals grew by 4.4% to reach a total of 1,184 million in 2015, 50 million more than in 2014.  Strong growth in Americas (+5%), Asia Pacific (+5%), Europe (+5%), the Middle East (+3%), whilst limited data available for Africa points

  7. Slide 7: Foreign Tourist Arrivals in India

    Foreign Tourist Arrivals in India  Foreign tourist arrivals in India have shown growth in each quarter for past 5 years .  Foreign tourist arrivals during 2015 / 16 were 82.42 lakh, a growth of 6.2% 7 Source : Ministry of tourism India

  8. Slide 8: India: Source Markets

    India : Source Markets In Lakhs No of Arrivals Percentage Share Country of Nationality 2013 2014 2015 2013 2014 2015 America North America 13.4 13.9 14.9 19.2% 18.1% 18.6% Central and South America 0.7 0.7 0.7 1.0% 0.9% 0.9% 14.1 14.6 15.7 20.2% 19.0% 19.5% Europe Western Europe 18.6 18.6 18.8 26.6%

  9. Slide 9: Domestic Visits – Growing over the Years

    Domestic Visits – Growing over the Years Figures in crores Source: INDIA TOURISM STATISTICS 2014 Domestic travel visits continue to show robust growth and grew 12.9 % in 2014 9

  10. Slide 10: India Hotel Performance – Key cities

    India Hotel Performance – Key cities 2015 / 16 •There has been an overall 3.9% increase in Supply in 2015 /16 as compared to the same period last year. •Demand growth has been 10.5% for this period However, the supply / demand gap is still significant in most cities, impacting ARRs 10 Source : STR G

  11. Slide 11: Occupancies % – Year on Year Trend

    Occupancies % – Year on Year Trend  All Cities have witnessed improved occupancy levels over the previous year 11 Source : STR Global

  12. Slide 12: ARRs – Year on Year Trend

    ARRs– Year on Year Trend  Despite growth in domestic demand , ARRs have continued to be flat , across India 12 Source : STR Global

  13. Slide 13: Taj Group – An Overview

    Taj Group – An Overview 13

  14. Slide 14: Business Structure

    Business Structure IHCL By business portfolio By legal entity Owned hotels Subsidiary companies Leased/ Licensed hotels Joint ventures Managed hotels Associate companies 14

  15. Slide 15: Taj Group Major Companies

    Taj Group Major Companies Company Name Effective Company Name Effective Holding % Holding % Subsidiaries Joint Ventures Piem Hotels Ltd 51.57 Taj GVK Hotels & Resorts Ltd 25.52 Taj SATS Air Catering Ltd 51.00 Taj Madras Flight Kitchen Pvt Ltd 50.00 TIFCO Holdings Ltd [Investment Company] 100.00 Taj

  16. Slide 16: Taj Brand Extensions

    eS fest TH Si, aps TA Hotels Resorts and Palaces VIVANTA BY TAJ —-GATEWAYO | CSU5rreet =Taj Brand Extensions wi, JIVA SPA TAI SATS )) »’ ATR CATERING

  17. Slide 17: Taj Group Inventory Brand Distribution

    Taj Group Inventory Brand Distribution Brands Domestic International Total No of Inventory No of Inventory No of Inventory Hotels Hotels Hotels 20 3,415 10 1849 30 5,264 35 4,946 5 575 40 5,521 31 2,596 1 208 32 2,804 34 3,170 - - 34 3,170 Total 120 14,127 16 2,632 136 16,759 17

  18. Slide 18: Current Portfolio

    Current Portfolio # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms HOLDING COMPANY SUBSIDIARY COMPANIES SUBSIDIARY COMPANIES (Continued) Piem Hotels Limited Roots Corporation Limited The Indian Hotels Company Limited 4406 (Taj Group – 51.57%, Nagpals – 39.47%) 9

  19. Slide 19: Current Portfolio

    Current Portfolio # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms MANAGED PROPERTIES – ROOTS CORP 525 MANAGEMENT AGREEMENTS 3607 69 Ginger Hotel - Chandigarh 102 Taj GVK Hotels & Resorts Limited 70 Ginger Hotel - Gurgaon (Manesar) 61 (Taj Group- 25.52%, GVK Gro

  20. Slide 20: Competitive Set

    Competitive Set Midscale Brand 20

  21. Slide 21: Overview of Taj Group

    Overview of Taj Group For the Year ended March 31, 2016 Particulars 2015/16 2014/15 2013/14 2012/13 136 130 125 118 Number of Hotels 16,459 15,658 15,391 14,331 Rooms Inventory 6,717 6,015 5,677 5,102 Total Revenue (`/crores) Total Revenue denotes the arithmetical aggregate of the turnover of all ho

  22. Slide 22: New Inventory

    8 TAJ New Inventory

  23. Slide 23: Hotels Opened In 2015/16

    Hotels Opened In 2015/16 Hotel Company Rooms TAJ Taj Downtown, Dubai Management Contract 296 Taj Bangalore Hotel , Bangalore Management Contract 154 Taj Santacruz Hotel, Mumbai Taj GVK 283 Vivanta Vivanta by Taj, Guwahati IHCL 150 Gateway Gateway Hotel, Nashik (Expansion) Piem Hotels 78 Gateway Hote

  24. Slide 24: New Launches in 2015/16

    New Launches in 2015 / 16 Taj Santacruz 24

  25. Slide 25: New Launches in 2015/16

    New Launches in 2015 / 16 Taj Bangalore 25

  26. Slide 26: New Launches in 2015/16

    New Launches in 2015 / 16 VBT Guwahati Vivanta by Taj, Guwahati Taj Santacruz Taj Bangalore 26

  27. Slide 27: New Launches in 2015/16

    New Launches in 2015 / 16 Taj Safaris-Meghauli Serai, Nepal 27

  28. Slide 28: New Launches in 2015/16

    New Launches in 2015 / 16 The Gateway Hotel, Hinjewadi, Pune 28

  29. Slide 29: New Launches in 2015/16

    New Launches in 2015 / 16 Taj Safaris-Meghauli The Gateway Resort, Ajmer Serai Gateway Hotel, Hinjewadi 29

  30. Slide 30: Upcoming Development in 2016/17

    Upcoming Development in 2016/17 Hotel Company Rooms Taj Taj Exotica, Havelock, Andamans Kaveri Hotels (JV) 75 Safari Meghauli Serai – Chitwan National Park, Nepal (Soft Opened) Management Contract 26 Vivanta by Taj Vivanta by Taj, Amritsar PIEM Hotels 157 Vivanta by Taj, Udaipur Management Contract

  31. Slide 31: Land Bank

    8 TAJ Land Bank

  32. Slide 32: Land Bank

    Land Bank  The Taj Group currently has more than 900 acres of land at strategic locations in India, across 26 sites  This landbank has been acquired over a period of time in the past and would beneficially impact project viability/feasibility of new developments on such sites  Alternatively, the

  33. Slide 33: Financial Performance Year ended March 31, 2016

    Financial Performance Year ended March 31, 2016 33

  34. Slide 34: IHCL Standalone Key Indicators

    IHCL Standalone Key Indicators Turnover `/crores `/crores 2,500 EBITDA 2,382 600 23 13 537 % % 438 2,104 400 2,000 200 - Profit Before Tax Profit 2014/15 After Tax2015/16 (before Exceptional Items) 1,500 300 2014/15 2015/16 `/crores `/crores 322 300 200 201 231 39 200 % 100 100 0 2014/15 2015/16 34

  35. Slide 35: Profit and Loss Account Year ended March 31, 2016

    Profit and Loss Account Year ended March 31, 2016 Quarter IV Full Year `/ crores 2015/16 2014/15 % Change 2015/16 2014/15 % Change Net Sales/Income from Operations 686.82 610.77 12 2273.70 2024.38 12 Other Operating Income - - Total Income from Operations 686.82 610.77 12 2273.70 2024.38 12 Cost of

  36. Slide 36: Financials Summary

    Financials Summary Year ended March 31, 2016 `/crores Quarter IV Full Year Particulars 2015/16 2014/15 2015/16 2014/15 Total Income 715.81 632.02 2382.32 2103.60 EBITDA 211.52 175.09 537.17 437.89 EBITDA % 30% 28% 23% 21% Profit/(Loss) before Finance Cost & 175.23 145.90 410.09 320.04 Exceptional It

  37. Slide 37: Income Details

    Income Details Rs / Crores 2015/16 2014/15 % Change Room Income 1002.33 908.34 10 Food &Beverages and Banquet Income 918.20 813.42 13 Management & Operating fees 148.95 137.74 8 Other Operating Income 204.22 164.88 24 Income from Operations 2273.70 2024.38 12 Non Operating Income 108.62 79.22 37 Tot

  38. Slide 38: Exceptional Items

    Exceptional Items Rs/ Crores Particulars 2015/16 2014/15 Profit on Sale of Investments 56.53 - Exchange Gain/(Loss) (56.66) (24.75) Diminution in value of long term investments (0.35) (213.49) Others (9.83) 9.54 Total (10.21) (228.70)  The company divested its holding in Tata Projects Ltd during th

  39. Slide 39: Expenditure

    Expenditure  Raw Materials Cost – Rs 209.82 crores Increase in line with higher F&B revenue for the year. Some cost push due to commodity input cost increase.  Employee Benefit Expenses – Rs 615.98 Crores Costs controlled on account of various interventions adopted by the Company. Payroll cost hig

  40. Slide 40: Expenditure

    Expenditure  Other Expenditure - Rs 692.5 crores Increase during the year aligned with increase in turnover. Rent rates & Taxes, Repairs & Maintenance costs nominally increased during the year. Conversely, the advertising costs were lower when compared to PY.  Depreciation & Amortisation – Rs 127.

  41. Slide 41: IHCL Standalone Financials Balance Sheet

    IHCL Standalone Financials Balance Sheet ` / Crores March 31, 2016 March 31, 2015 Shareholders’ Funds 3,886 2,615 Non- Current Liabilities Long-term borrowings 1,558 2,898 Other Long Term Liabilities 485 585 Long-term Provisions/ Deferred Tax Liabilities (net) 352 218 Current Liabilities Short Term

  42. Slide 42: Consolidated Financial Performance for the Year Ended March 31, 2016

    Consolidated Financial Performance for the Year Ended March 31, 2016 42

  43. Slide 43: IHCL Consolidated Key Indicators

    IHCL Consolidated Key Indicators Turnover EBITDA `/crores 5,000 4,706 800 `/crores 732 4,287 4,000 587 600 10 25 % % 3,000 400 2,000 200 1,000 Profit Before Tax (before Exceptional Items)2015/16 2014/15 Profit After Tax `/crores `/crores 200 0 - 2014/15 2015/16 2014/15 2015/16 169 (61) 150 (100) 120

  44. Slide 44: IHCL Consolidated - Financials Summary

    IHCL Consolidated - Financials Summary Year ended March 31, 2016 `/crores Full Year Particulars 2015/16 2014/15 Total Income 4,706.27 4,287.36 EBITDA 731.93 587.28 EBITDA % 15.6% 13.7% Profit/(Loss) before Finance Cost & 415.26 296.00 Exceptional Item Profit/ (Loss) after Finance Costs but before 16

  45. Slide 45: IHCL Consolidated - Profit and Loss Account

    IHCL Consolidated - Profit and Loss Account Year ended March 31, 2016 Full Year `/ crores 2015/16 2014/15 % Change Net Sales/Income from Operations 4,590.92 4,188.64 10 Other Operating Income - - - Total Income from Operations 4,590.92 4,188.64 10 Cost of Materials Consumed 504.48 443.09 14 Employee

  46. Slide 46: IHCL Consolidated Financials Balance Sheet

    IHCL Consolidated Financials Balance Sheet `/crores Particulars March 31, 2016 March 31, 2015 Shareholders’ Funds 3,182 2,227 Minority Interest 835 738 Non- Current Liabilities Long-term borrowings 3,685 4,598 Other Long Term Liabilities 489 586 Long-term Provisions/ Deferred Tax Liabilities (net) 4

  47. Slide 47: Treasury

    Treasury Debt Position `/crores Particulars Standalone Consolidated Gross Debt 2,108 4,781 Debenture Redemption Premium (Accrued) 318 331 Less : Liquidity (158) (395) Net Debt 2,268 4,717 Net Debt/ Equity 0.58 1.47 Weighted cost of Debt 8.8% 7.3%  Of the aggregate Sea Rock debt of Rs 1,400 crores,

  48. Slide 48: IND-AS – Effective April 1, 2016

    IND-AS – Effective April 1, 2016  Effective April 1, 2016, IHCL will migrate to the new Accounting Standards – IND-AS.  Transition to IND-AS will result in change in presentation of accounts, inter alia, in the following areas – Revenue recognition – Fair Value concept – Time Value of Money ( econ

  49. Slide 49: Restructuring of Overseas Investments

    Restructuring of Overseas Investments 49

  50. Slide 50: Restructuring of Overseas Investments

    Restructuring of Overseas Investments  IHOCO BV , the 100 % offshore subsidiary company has since become IHCL’s apex offshore Investment holding company.  Holdings in the, USA, UK , Sri Lanka, Maldives hotels and the two London restaurants have since been shifted to IHOCO BV  Thus, 8 owned hotels

  51. Slide 51: Scheme(s) of Arrangement - Update

    Scheme(s) of Arrangement - Update 51

  52. Slide 52: Amalgamation – Update

    Amalgamation – Update  The Board of Directors at its meeting held on October 19, 2015 have approved the amalgamation of International Hotel Management Services LLC (formerly known as IHMS Inc.) and Lands End Properties Private Limited, two wholly owned subsidiaries (“transferor companies”) into the

  53. Slide 53: Amalgamation – Impact

    Amalgamation – Impact  The Impact on IHCL’s reserves on account of the two proposed amalgamation is summarised below `/crores Particulars Standalone Consolidated Books Books Reserve & Surplus as on March 31, 2016 3,822 3,119 LEEPL- Scheme of Arrangement (307) (293) IHMS- Scheme of Arrangement (1,33

  54. Slide 54: Amalgamation - Timelines

    Amalgamation - Timelines Particulars Dates Milestones achieved Filing of IHMS LLC & LEPPL Scheme with SEBI October 21, 2015 Receipt of SEBI Approval December 19, 2015 High Court order for Shareholders / Creditors Meeting February 26,2016 Shareholders approval vide Postal Ballot ( for LEPPL April 28,

  55. Slide 55: Divestment

    8 TAJ Divestment

  56. Slide 56: Divestments during 2015/16

    Divestments during 2015/16  Divestments during the year :- – Tata Projects Ltd - Rs 56 crores – Belmond shares – Of our holding of 7.13 million shares, 2 million shares were sold during previous year - $ 12 million ( Rs 80 crores)  The Sale Proceeds from above have been utilised to reduce the Debt

  57. Slide 57: Divestments – New Proposal

    Divestments – New Proposal  The Board of Directors has accorded its approval to allow United Overseas Holding Inc (UOH)., a wholly owned subsidiary of the Company, to pursue the option of divestment of Taj Boston by way of sale/ disposal of the LLC interests in IHMS (Boston) LLC (a direct subsidiar

  58. Slide 58: Key Focus Areas

    Key Focus Areas  Asset Light and Asset Right Strategy  Select Brownfield development  Exit from Non Core / Non performing Investments  Invest behind hotel renovations / Asset Refresh  Ensure efficient debt funding mix / cost  Focus on technology upgrade / digital  Ongoing cost rationalization

  59. Slide 59: Awards & Accolades

    e TAJ Awards & Accolades

  60. Slide 60: Awards & Accolades

    Awards & Accolades Taj Hotels Resorts and Palaces Conde Nast Traveller UK Readers’ • Featured on the list of 10 of the World's Best Luxury Hotel Travel Awards Brands by Forbes magazine • The Taj Mahal Palace, • Named the Best Hotel Group in India at the Travel + Leisure Mumbai was the only Indian In

  61. Slide 61: Stock Price Movement

    Stock Price Movement IHCL v/s BSE Sensex 35,000 140 30,000 120 25,000 100 20,000 80 15,000 60 10,000 40 5,000 20 0 0 1/Apr/15 1/May/15 1/Jun/15 1/Jul/15 1/Aug/15 1/Sep/15 1/Oct/15 1/Nov/15 1/Dec/15 1/Jan/16 1/Feb/16 1/Mar/16 1/Apr/16 1/May/16 Sensex IHCL 61

  62. Slide 62: Thank you

    8 TAJ Thank you

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