Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q3 FY2021 Earnings Presentation
57 slides from Mahindra Holidays & Resorts India's earnings presentation, Jan 25, 2021
Slide 1: ClubMahindra filing cover letter
ClubMahindra January 25, 2021 MHRIL/SE/20-21/89 Listing Compliance ❑epartment of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block Floor 25, PJ Towers, Bandra-Kurla Complex Dalai Street Bandra E, Mumbai — 400 051 Mumbai — 400 001 Scrip Code
Slide 2: Q3 FY'21 Investor Presentation
j/if INDIA'S `,.,„S, ff, INDIA'S IN Aff INDIA'S BEST ,L,S, IT FAVOURITE TI it MOST POPULAR 11 0 COMPANIES TO "a ,,jt RESORT ‘414, RESORT „1 V WORK FOR - 01 -4. CHAIN Ir `1.1 CHAIN C' TOP100, 2020 dr HOLIDAY IQ AWARD 2017 TIMES TRAVEL AWARD 2019 GREAT PLACE TO WORK' INSTITUTE Mahindra Holidays & Reso
Slide 3: Disclaimer
Ilei 41110 N 4 ClubMahindra Disclaimer This presentation may contain ‘forward looking statements’ within the meaning of applicable laws and regulations. Investors are cautioned that ‘forward looking statements’ are based on certain assumptions, which Mahindra Holidays & Resorts India Limited conside
Slide 4: Contents
ClubMahindra Contents 1111011111 H -41kreas, --A Unique & Leadership Q3 FY’21 Holiday Club Resilient Position in Results Resorts, Business Model Vacation Update Finland Ownership 3
Slide 5: Business Model
41 10 ClubMahindra Business Model Club Mahindra (CMH 25) Flagship Product Offering Target Profile of CMH 25 Member Season 28+ years of age Apartment Size Married; 1-2 children (Age 3-15 years) Blue NCCS A+ & A OffPeak Studio White (2 adults, 1child) Medium CD 1BR Appreciates quality family time Red
Slide 6: Sales Network and Revenue & Cost Model
dolif, Sales Network and Revenue & Cost Model 4 ClubMahirrdra Sales Network Cost Model • 120+ branch offices, sales offices & channel partners • ASF funds maintenance, renovation of resorts & member servicing • Leads generated through Digital route, Referrals, Alliances, On-ground Events/Activities,
Slide 7: Unique & Resilient Business Model
Ilei 41110 N 4 ClubMahindra Unique & Resilient Business Model 6
Slide 8: Resilient Business Model
4ClubbAhirldra Resilient Business Model Income Annual Subscription Fee Resort - Members 1111 from Financing Admission Fee Resort - FIT Interest 11111111111111111111rir Recurring Revenue Streams : ASF*, Resort Income I Value Creation Upfront Admission Fee r I -1 Value Realized I Residual Value*: Buil
Slide 9: Key Takeaways
doill, , Key Takeaways 4 ClubMahirrdra Strong and Resilient Business model • Cumulative member base of 2,63,000+ generates multiple annuity revenue streams o Vacation Ownership Income o Annual Subscription Fee o Resort Income Predictability of Revenue streams • VO Income (Growing VO income from
Slide 10: Unique Business Model - Strong Balance Sheet
e ve op Clublthindra Unique Business Model - Strong Balance Sheet Deferred Strong Cash Debt Strong Asset Revenue Position Base Rs. 5,388 Cr Rs. 848 Cr Zero debt Rs. 2,129 Cr* Income earned This together with Includes Land and deferred as Accounts Assets per INDAS 115, receivables book of of Rs. 1,14
Slide 11: Unique Business Model - Consistently High Occupancy
Unique Business Model - Consistently High Occupancy Ilei 41110 N 4 ClubMahindra 85% 85% 83% 81% 80%* • 3,595 3,732 3,472 3,152 2,879 FY16 FY17 FY18 FY19 FY20 Room Inventory (Units) Occupancy % *Resort Occupancies in Q4 FY20 were adversely impacted due to Covid. 10
Slide 12: New Resorts launched this Quarter
New Resorts launched this Quarter Ilei 41110 N 4 ClubMahindra Arookutty Resort, Alleppey - 82 rooms Jaipur Resort - 72 rooms. Taking our Total Inventory count to 3776 as on Dec’20 11
Slide 13: Operating Performance
ClubMahindra Operating Performance
Slide 14: Member Acquisition
doill, , Member Acquisition 4 ClubMahirrdra (Memberships) 3,291 2,681 Improvement in Member 1,270 acquisition quarter on quarter… Q1 FY'21 Q2 FY'21 Q3 FY'21 • During the start of the pandemic (Apr-20), customer acquisition moved to virtual selling. • Member engagement activity (“Heart to Heart”) als
Slide 15: Resort Performance
doill, , Resort Performance 4 ClubMahirrdra 75% Rebuilding Resort 30% occupancy* 0% Q1 FY'21 Q2 FY'21 Q3 FY'21 *Occupancies as a % of operational room inventory 44.6 Resort Income 6.7 0 ₹ In Crs Q1 FY'21 Q2 FY'21 Q3 FY'21 Resort Occupancy has bounced back to 85% in the month of Dec-20. 14
Slide 16: Cash position
doill, , Cash position 4 ClubMahirrdra 848 781 ₹ In Crs 572 470 265 84 FY16 FY17 FY18 FY19 FY20 Q3 FY21 • Strong Cash Position continues. • Continuing with planned Capital investments in two ongoing projects at Goa & Ashtamudi, Kerala. 15
Slide 17: Cumulative Member Base
Cumulative Member Base Ilei 41110 N 4 ClubMahindra 2,58,336 2,63,952 ** 2,43,574 * 2,35,792 2,18,138 1,99,617 FY-16 FY-17 FY-18 FY-19 FY-20 YTD FY-21 * Net of one-off cancellation of 9,556 overdue members in Q4 FY-19. ** Member additions have been adversely impacted by COVID in YTD FY-21. 16
Slide 18: Q3 FY'21 - Costs
dolif, Q3 FY’21 - Costs 4 ClubMahirrdra ₹ In Crs -14% -21% 68 71 -13% 58 57 41 35 -27% 17 12 Sales & Marketing Expenses Rent Employee Benefit Expenses Other Expenses • Q3 FY'20 Q3 FY'21 Significant cost saving measures have resulted in total cost reduction by 17% YoY. 17
Slide 19: Leadership Position in Vacation Ownership
Ilei 41110 N 4 ClubMahindra Leadership Position in Vacation Ownership 18
Slide 20: Leadership Position in Vacation Ownership
doill, , Leadership Position in Vacation Ownership 4 ClubMahirrdra Trusted Brand Choice of 2.63 Lakh+ Member -Most Popular Resort Chain 60 Domestic resorts base (2018) & 51 International Track record of over two - India’s Favorite Resort Chain (2017) resorts decades Inventory exchange program for ou
Slide 21: Resort Diversity
dolif,clubmahiridra Resort Diversity 4 Hill Stations Beaches Cities Naldehra, Kandaghat, Manali, Varca, Emerald Palms, Acacia Palms - Ahmedabad, Nadiad Dharamshala, Mashobra Goa Bengaluru Kanatal, Binsar, Mussoorie, Naukuchiatal, Ganpatipule Kochi Rishikesh Diu Dubai Srinagar C
Slide 22: Member Engagement
dolif,clubmahiridra Member Engagement 4 Dreamscapes Heart-to-Heart Curated Vacations Exchange Program • Wide variety of in-city • Festivals & theme-based • Creating choice of • In-city meets include experiences especially vacation experiences for destinations for members for leisure & edutainment cu
Slide 23: Club Mahindra Safe Stay Program
ClubMahindra Club Mahindra Safe Stay Program
Slide 24: Best in class Covid Safe protocols implemented at our Resorts
Best in class “Covid Safe” protocols implemented at our Resorts • We have partnered with the top facility management services company, working with hospitals, for creating safety & hygiene guidelines. We have created AV communication for our members covering all safety & hygiene actions taken at our
Slide 25: Occupancy Movement
doill, , Occupancy Movement 4 ClubMahirrdra 85% 74% 63% 41% 23% 19% 17% Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Occupancy as a % of Operating Room inventory We have observed increase in overall occupancy month on month from 17% in June-20 to 85% in Dec-20 with the state travel restrictions
Slide 26: Travel with Confidence Offerings
Travel with Confidence Offerings (.-AJUNtahindr • Free seat selection, • Members can get • Covid Insurance cover • Travel Insurance cover meals + flexible Covid test @ home for members for members cancelation on Airline bookings • Car sanitization • Chauffer driven • Exclusive Self Driven packages t
Slide 27: Member Engagement & Safety
ClubMahindra Member Engagement & Safety
Slide 28: Re-Opening Phase
Re-Opening Phase ,re 4 ClubMahindn Resort Experience Contactless Service • Re-aligned spaces and services in restaurants • Contactless touchpoints introduced • New Resort experience & thematic through mobile app to minimize human evenings introduced interaction • Re-engineered menus with in-room din
Slide 29: Engagement Activities at the Resort
Engagement Activities at Engagement Activities Resort the Resort at the ClubMahindra Restaurant Engagement Restaurant Engagement 7 7 ,zt Kids Magic Show Fun Cooking B-Live Tours Mocktail Making 28
Slide 30: Social Media Mentions
Social Media Mentions ,re .3 Vldhi Aurora Club Ma Medea ATnit Washwap nut, hiediiindro 4 Clubitlahindn mi Having a lovely time at*cluhmahindrakandaghat fabulous toed at chit, 1441indro kids painting with Anja Ii teiaskapoor10€2000 • Follow ( pakhi itsidig S. Club Mahalig 12 Jr. a Jaipur, especially
Slide 31: Awards
Awards 4ClubMahindra 4 ClubMahindra White Meadows - Manali . ..... Mashobra dim (11(0)46. Pristine Peaks Naldehra Manali Kandaghat Corbett Binsar Valley Manipur Villa Naukuchiatal Sikkim Gangtok 29 of our resorts have won the Baiguney Jaisalmer TripAdvisor Travellers' Choice Fort Kumbhalgarh Award f
Slide 32: Awards & Accolades
Awards & Accolades AA,,A 6" Edition Congratulations Congtatulations to the winnet! MOBILE to the winners! AWARDS FT BRANDEQUITY0— WMADIR B. CHANNEL/MEDIA STRATEGY B.9 Most Effective Chatbot SHARK AWARDS BEST USE OF PRINT • Solution 2020 WORLD FAMILY DAY WITH CLUB MAHINDRA Rewarding Excellence e in M
Slide 33: Awards & Accolades
Awards & Accolades CII-ITC Sustainability Awards 2020 Excellence in Sustainable Business MHRIL received ‘Commendation for Significant Achievement in Corporate Excellence’. Mahindra Holidays was the only Corporate to receive ‘Excellence in Biodiversity’ for implementing measures 15th CII-ITC for
Slide 34: Financial Performance Q3 FY'21
ClubMahindra Financial Performance Q3 FY’21
Slide 35: Q3 FY'21 Performance Trend
dolif, Q3 FY’21 Performance Trend 4 ClubMahirrdra Total Income* EBITDA Margin PBT Margin Rs. Crs -8% +750 bps 33.8% +788 bps 22.3% 267 246 26.3% 66 45 14.5% 201 201 Q3 FY'20 Q3 FY'21 Q3 FY'20 Q3 FY'21 Q3 FY'20 Q3 FY'21 VO Resorts *Resort Income has improved month on month and grown significantly fro
Slide 36: Q3 FY'21 Profit Growth
dolif, Q3 FY’21 Profit Growth 4 ClubMahirrdra Rs. Crs Rs. Crs PBT PAT 55 41 +42% +63% 39 25 Q3 FY'20 Q3 FY'21 Q3 FY'20 Q3 FY'21 35
Slide 37: Income Break Up - Q3 FY'21
dolif, Income Break Up – Q3 FY’21 4 ClubMahirrdra Rs. In Lakhs Quarter ended Total Income Q3 FY’21 Q3 FY’20 YoY Gr Income from Vacation Ownership 8,878 8,547 3.9% ASF 7,500 7,469 0.4% Interest & Others 1,820 2,562 -29.0% Non-Operating Income 1,587 1,492 6.4% Income From Lease Rent waivers 343 - Tota
Slide 38: Profit & Loss Statement - Q3 FY'21
doill, , Profit & Loss Statement – Q3 FY’21 4 ClubMahirrdra Rs. In Lakhs Quarter ended Particulars Q3 FY’21 Q3 FY’20 YoY Gr Revenue from Operations 22,657 25,224 -10.2% Non-Operating Income 1,587 1,492 6.4% Income From Lease Rent waivers 343 - Total Income 24,587 26,716 -8.0% Employee Benefit Expens
Slide 39: Financial Performance YTD FY'21
ClubMahindra Financial Performance YTD FY’21
Slide 40: YTD FY'21 Performance Trend
dolif, YTD FY’21 Performance Trend 4 ClubMahirrdra Rs. In Crs Total Income EBITDA Margin PBT Margin 782 180 -16% 654 51 23.4% +1062 BPS 34.0% fir 12.1% +881 BPS 20.9% 602 603 YTD FY'20 YTD FY'21 YTD FY'20 YTD FY'21 YTD FY'20 YTD FY'21 VO Resorts 39
Slide 41: YTD FY'21 Profit Growth
dolif, YTD FY’21 Profit Growth 4 ClubMahirrdra Rs. In Crs Rs. In Crs PBT PAT 101 137 +44% +66% 95 61 YTD FY'20 YTD FY'21 YTD FY'20 YTD FY'21 40
Slide 42: Income Break Up - YTD FY'21
dolif, Income Break Up – YTD FY’21 4 ClubMahirrdra Rs. In Lakhs Nine months ended Total Income YTD FY’21 YTD FY’20 YoY Gr Income from Vacation Ownership 25,638 25,794 -0.6% ASF 22,334 21,575 3.5% Interest & Others 5,832 8,324 -29.9% Non-Operating Income 4,255 4,527 -6.0% Income From Lease Rent waive
Slide 43: Profit & Loss Statement - YTD FY'21
dolif, Profit & Loss Statement – YTD FY’21 4 ClubMahirrdra Rs. In Lakhs Nine months ended Particulars YTD FY’21 YTD FY’20 YoY Gr Revenue from Operations 58,937 73,633 -20.0% Non-Operating Income 4,255 4,527 -6.0% Income From Lease Rent waivers 2,212 - Total Income 65,404 78,160 -16.3% Employee Benef
Slide 44: Summarized Balance Sheet
dolif, Summarized Balance Sheet 4 ClubMahirrdra Rs. in Lakhs Description As at 31 Dec 2020 As at 31 March 2020 ASSETS Property, Plant and Equipment 2,12,913 2,08,178 Right of Use Asset (IND AS 116) 13,294 17,427 Trade receivables 1,58,480 1,68,188 Cash and cash equivalents (regrouped) 84,762 78,073
Slide 45: Holiday Club Resorts
HCRO HCRO We Create We and Sell Create and Holidays Dream Holidays Sell Dream HolidayIIIClub
Slide 46: Figures of the Resorts
Figures of the Resorts Spa Hotels 8 Other Holiday Resorts 25 Hotel Rooms 1,140 Timeshare apartments 1,916 Villas Apartments 629 Restaurants & Bars 25 Aqua Parks with Saunas 8 Spa Treatment Departments 8 Golf Courses 2 Angry Birds Activity Parks 3 Shopping Centre 1 45 HolidayMiClub
Slide 47: Key Facts
Key Facts Holiday Club Resorts is the largest vacation ownership company in Europe and the leading leisure travel company in Finland A total of 33 resorts - 25 in Finland, 2 in Sweden, 6 in Spain (5 in Gran Canary, 1 in Costa del Sol) Mahindra Holidays owns 100% of HCR Oy ~62,000 families an
Slide 48: Financial Performance
Financial Performance Holiday 47 HolidayNClub
Slide 49: Comments Q3 FY20-21
COMMENTS Q3 FY20-21 HCRO had turned around in Q2 FY21 and delivered positive PBT for the quarter, as a result of increased occupancies, improved Timeshare Sales and effective cost control measures. This trend continued well into Oct 20. However, the business has been adversely impacted by second
Slide 50: Turnover: Q3 2020-21
Turnover : Q3 2020-21 Euro Mn Quarter ended Nine months ended Particulars Q3 FY’21 Q3 FY’20 YTD FY’21 YTD FY’20 Timeshare 8.99 10.51 21.60 32.22 Spa Hotels 10.88 18.15 34.45 54.25 Renting 5.76 4.28 8.61 8.04 Real Estate Management 1.73 1.62 5.01 4.94 Villas 3.07 6.36 5.94 18.86 Other Income 0.14 0.1
Slide 51: P&L Q3 2020-2021
P&L Q3 2020-2021 Euro Mn Quarter ended Nine months ended Particulars Q3 FY’21 Q3 FY’20 YTD FY’21 YTD FY’20 Turnover 30.56 41.03 75.92 118.46 Operating Profit / (Loss) -1.57 1.16 -4.76 4.35 Less: Depreciations and impairments 1.37 1.42 4.07 4.32 (Add)/Less Financial (income) and expenses 0.23 0.17 0.
Slide 52: QoQ Trends FY 2020-2021
QoQ Trends FY 2020-2021 Euro Mn FY’21 Particulars Q1 FY’21 Q2 FY’21 Q3 FY’21 YTD FY’21 Turnover 12.75 32.61 30.56 75.92 Operating Profit / (Loss) -5.10 1.91 -1.57 -4.76 Less: Depreciations and impairments 1.35 1.35 1.37 4.07 (Add)/Less Financial (income) and expenses 0.19 0.21 0.23 0.63 Profit / (Lo
Slide 53: Financial Performance Consolidated
ClubMahindra Financial Performance Consolidated
Slide 54: Segment Revenue
dolif, Segment Revenue 4 ClubMahirrdra Rs. In Lakhs Quarter ended Nine months ended Particulars Q3 FY'21 Q3 FY'20 YTD FY'21 YTD FY'20 - MHRIL 24,764 26,977 65,399 78,995 - HCRO 26,836 33,213 69,571 1,00,864 Total Segment Revenue 51,600 60,190 1,34,970 1,79,859 - Others (96) (215) 136 113 Revenue fro
Slide 55: Segment Profitability (PBT)
doill, , Segment Profitability (PBT) 4 ClubMahirrdra Rs. In Lakhs Quarter ended Nine months ended Particulars Q3 FY'21 Q3 FY'20 YTD FY'21 YTD FY'20 - MHRIL 5,354 3,921 13,472 9,616 - HCRO (3,098) (628) (8,008) 201 PBT before Ind AS 116 & Consolidation adjustments 2,256 3,293 5,464 9,817 - Ind AS 116
Slide 56: Consolidated Profit & Loss Statement
doill, , Consolidated Profit & Loss Statement 4 ClubMahirrdra Rs. In Lakhs Quarter ended Nine months ended Particulars Q3 FY'21 Q3 FY'20 YTD FY'21 YTD FY'20 Income from Operations 48,915 58,826 1,26,455 1,75,526 Non-Operating Revenue 2,589 1,149 8,651 4,446 Total Income 51,504 59,975 1,35,106 1,79,9
Slide 57: Thank You!
INDIA'S if INDIA'S •.,N If INDIA'S BEST N% ft FAVOURITE NI er MOST POPULAR 11 I,lor COMPANIES TO ••••) ) RESORT te. 4, RESORT /1 ‘‘ WORK FOR - IV 1 V C. / Nik TOP100, 2020 /JP' `4 CHAIN CHAIN HOLIDAY 10 AWARD 2017 TMESTRAVEL AWARD 2019 GREAT PLACE TO WORK" INSTITUTE ClubMahindra Thank You!
Mahindra Holidays & Resorts India — Q3 FY2021 Earnings Presentation on 6ix