Lemon Tree Hotels Ltd. · NSE:LEMONTREE
Lemon Tree Hotels — Q2 FY21 Earnings Presentation
47 slides from Lemon Tree Hotels's earnings presentation, Nov 6, 2020
Slide 1: Exchange filing cover letter on Q2 results
November 6, 2020 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers Bandra (East) Dalal Street, Mumbai - 400 001 Mumbai - 400 051 Name of Scrip: LEMONTREE BSE Scrip Code: 541233 Re: Unaudited Financial Results (Standalone and Consolid
Slide 2: Independent Auditor's Review Report (Consolidated)
* Chartered Accountants Deloitte 7th Floor, Building 10, Tower B, DLF Cyber City Complex, s DLF City Phase - II, Haskins & Sells Gurugram ~ 122 002 Haryana, India Phone: +91 124 679 2000 Fax: +91 124 679 2012 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS TO
Slide 3: Auditor's Review Report: list of subsidiaries
wh Deloitte Haskins & Sells LLP 6. Sukhsagar Complexes Private Limited Wholly owned subsidiary company 2 Oriole Dr Fresh Hotels Private Limited Wholly owned subsidiary company 8. Grey Fox Project Management Company | Wholly owned subsidiary company Private Limited 9. Dandelion Hotels Private Limited
Slide 4: Auditor's Review Report continued
Deloitte Haskins & Sells LLP 7. We did not review the interim financial results of Krizm Hotel Private Limited Employee Welfare Trust (the “Trust”) included in the standalone interim unaudited financial results of the entity included in the Group, whose interim financial results reflect total assets
Slide 5: Statement of Unaudited Consolidated Results
Lemon Tree Hotets Limited Rew Olfices Asvet Na. & Aerncity Hospitality Distriet, New Dellnt- L10037 Feliz O11 16050101; Fax. 011-6050 10; E-Malksvetdep! hatels.coor: Website: wow.d vechuitelscomi CAN: LIS899 DL 1992PLCngya22 Se of Unaudited © ted Results for the Quarter and Hatt Year ended September
Slide 6: Notes to Consolidated Results
Notes: §, Phe Audit Commitice hay reviewed the above results and the Bodrd of Directors kis approved the above consofidated fi Tho stunatory auditors lave cuuried wat a fimited ceview of the shows Consolidated financial resolts, as aro extracted foto the unsidited consolidated tinsmem! statements of
Slide 7: Consolidated Statement of Assets and Liabilities
(@ in Lakish Particnlars As at As at September 30, | Marels 3, 2020 2020 (Unaudited) jAudited) Equity And Lisbitities Equity (a) Share capital 79,032,948 9031.44 ()) Other Equity (4,629.33) 3,267.73 Equity attributable to owners of the parent ABAT $2.299,17 ic) Non-controlling interests: 36,140.48,
Slide 8: COVID-19 impact notes
7, COVED-19 pandemic bas impavted askd contigs fo impact business operations it migay coundies due to tackdown, fravel bans, quaritines atid other emergeney measures resubiing reduction int ¢ realization rate per doom stenting fon the month af Marelt 2020, Management bas endertakenis unlertaking var
Slide 9: Independent Auditor's Review Report (Standalone)
cal Deloitte 7 Si Toner Haskins & Sells LLP ke Haryana, India” Phone: +91 124 679 2000 Fax: +91 124 679 2012 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF LEMON TREE HOTELS LIMITED 1. We have reviewed the accompanying Statement of
Slide 10: Auditor's Review Report continued
Deloitte Haskins & Sells LLP 5. Emphasis of Matter Attention is invited to Note 5 of the Statement of Standalone Unaudited Financial Results which sets out the Company’s assessment of going concern assumption and financial impact on account of COVID 19 pandemic situation. Based on these assessments,
Slide 11: Statement of Unaudited Standalone Results
Regd Office:- Asset OLL-460501 10s Feb: OU1-460501 01; Lemon Tree Hotels Limited ‘0. 6, Acrocity Hospitality District, New Dethi-1 10037 CIN: L7A899DLA992PLC049022 Statement of Unaudited Standalone Financial Results for the Quarter and Half Year ended September 30, 2020 (% In Lakhs, except per shave
Slide 12: Notes to Standalone Results
Notes: L. The Audit Committee has reviewed the above results and the Board of Directors has approved the above standalone financial results at their respective meetings held on November §, 7020 and November 6, 2020. The statutory auditors have curried gut a limited review of the above standalone fin
Slide 13: Standalone Assets and Liabilities
7, Statement of Standalone Assets and Liabilties (In Lakhs) As at As at March September Piveteitard 2 Particulars 30, 2020 31, 2020 (Unaudited) (Audited) Assets Non-current assets (a) Property, plani and equipment (b) Capital work-in-progress (c} Investment Property (d) Intangible assets (c) Right t
Slide 14: Standalone Equity and Liabilities
(@ In Lakhs) As at * Asat March " September Particulars P — ay 31, 2020 (Unaudited) | (Audited) Equity And Liabilities Equity (a) Share capital 79,032.94 79,031.44 {(b) Other Equity 23,407.13 25,345.89 ‘Total Equity 102,440.07 104,377.33 Liabilities Non-current liabilities (a) Financial liabilities
Slide 15: Standalone Cash Flow Statement
§, Statement of Standalone Cash flaw : (@ in Lakhs) For the half | For the halt year ended | year ended September | September 30, 2020 30, 2019 {Unandited) | (Unaudited) Particulars Cash Mow from operating activities (Loss¥/Profit before tax (2,746.16) 1,170.65 Qperating profit hetore working capita
Slide 16: Lemon Tree Hotels Limited Q2 FY21
Lemon Tree Hotels Limited Q2 FY21 Earnings Presentation 6th November, 2020
Slide 17: Disclaimer
Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those s
Slide 18: Table of Contents
Table of Contents 1 Company Overview 2 Chairman & Managing Director’s Message 3 H1 FY21 Operating Performance Trends 4 Q2 FY21 Financial Highlights & Results 5 H1 FY21 Financial Results 6 Pipeline 7 Annexures 3
Slide 19: Lemon Tree – Snapshot as on 31st October, 2020
Lemon Tree – Snapshot as on 31st October, 2020 Current (17% of Branded Pipeline By CY22 (20% of Branded Mid Market Hotels in India*) Mid Market Hotels in India*) 8,044 2,607 10,651 rooms; rooms; rooms; 81 hotels 27 hotels 108 hotels Brand Current Pipeline by FY22 Aurika 139 Rooms; 1 Hotel 669 Rooms;
Slide 20: Lemon Tree – Portfolio
Lemon Tree – Portfolio Key Statistics Q2 FY20 Q2 FY21 YoY Var (%) Cities 34 49 44% Hotels 57 81 42% Rooms 5,828 8,044 37% Loyalty 1.07 mn 1.20 mn 12% Members 5
Slide 21: Chairman & Managing Director's Message
Chairman & Managing Director’s Message Commenting on the performance for Q2 FY21, Mr. Patanjali Keswani, Chairman & Managing Director – Lemon Tree Hotels Limited said, “The pandemic has had a severe impact on the travel, hospitality and tourism industry, with these sectors facing an unprecedented an
Slide 22: H1 FY21 Operating Performance Trends: Operational Inventory
H1 FY21 Operating Performance Trends Increasing Operational Inventory Operational Pick-up 5,000 100.0% 89.6% 85.5% 86.9% 4,500 83.9% 90.0% 4,000 71.5% 80.0% % Operational Invetory Operational Invetory 3,500 70.0% 57.5% 3,000 60.0% 2,500 50.0% 4,439 4,513 4,650 4,356 2,000 40.0% 3,712 1,500 2,987 30.
Slide 23: H1 FY21 Operating Performance Trends: Occupancy
H1 FY21 Operating Performance Trends Rising Occupancy Levels Occupancy-ADR Trend 45.0% 3,600 41.7% 40.5% 39.7% 40.0% 38.6% 38.1% 3,400 34.6% 33.1% 34.3% 33.3% 35.0% 3,200 30.7% 29.8% 30.0% 3,000 Gross ADR (Rs) Occupancy (%) 2,854 25.0% 22.2% 2,796 2,800 20.0% 2,595 2,564 2,638 2,600 2,539 15.0% 2,40
Slide 24: Constantly Improving Operating Efficiency
H1 FY21 Operating Performance Trends Constantly Improving Operating Efficiency Revenue vs OPEX Trend 18.00 15.80 15.91 15.76 16.17 16.00 14.02 14.00 12.00 10.94 11.75 11.34 11.22 10.00 10.76 Rs Cr 10.43 10.37 8.00 6.00 4.00 2.00 - April May June July August September Total Revenue Hotel Operating Ex
Slide 25: Q2 FY21 Performance Highlights – Operational Metrics
Q2 FY21 Performance Highlights – Operational Metrics (Consolidated) Operational Inventory Average Daily Rate (Rs.) Owned/Leased rooms Managed rooms Total rooms 38.0% 4,133 8,044 30.6% 53.9% 1% QoQ 5,828 -36% YoY 5,192 3,975 2,852 2,626 2,654 1,853 End of Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY
Slide 26: Q2 FY21 Performance Highlights – Financial Metrics
Q2 FY21 Performance Highlights – Financial Metrics (Consolidated) Revenue from Operation (Rs. Cr) EBITDA (Rs. Cr) 49.4 152.8 -69% YoY 17% QoQ -71% YoY 92% QoQ 40.7 47.6 14.3 7.5 Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q1 FY21 Q2 FY21 Cash profit EBITDA Margin (%) (Rs. Cr) 32.1% 16.2 26.7% 10.4 964 bps (541)
Slide 27: Consolidated Profit & Loss Statement – Q2 FY21
Consolidated Profit & Loss Statement – Q2 FY21 Rs. Cr Q2 FY20 Q1 FY21 Q2 FY21 QoQ Change (%) YoY Change (%) Revenue from operations 152.8 40.7 47.6 17.0% -68.8% Other income 0.9 3.1 6.0 92.9% 546.9% Total expenses 104.3 36.3 39.3 8.2% -62.3% EBITDA 49.4 7.5 14.3 91.6% -71.0% EBITDA margin (%) 32.1%
Slide 28: Consolidated Expenses – Q2 FY21 vs Q2 FY20
Consolidated Expenses – Q2 FY21 vs Q2 FY20 Cost Rationalization YoY 40.0 35.0 30.0 25.0 -61% Rs Cr 20.0 -60% 36.6 15.0 -53% 30.1 10.0 -76% -65% -61% 14.3 16.0 13.2 12.2 5.0 8.9 7.5 6.2 2.2 3.2 3.4 - Employee Cost of F&B Power & Fuel Repairs and Other Expenses Lease Rental Benefit Expense Consumed Ex
Slide 29: Consolidated P&L Breakup – Q2 FY21
Consolidated Profit & Loss Statement Breakup – Q2 FY21 New Same Hotels Total without Keys Hotels Keys Hotels Total Hotels1 Rs. Cr YoY YoY YoY Q2FY20 Q2FY21 Q2FY21 Q2FY20 Q2FY21 Q2FY21 Q2FY20 Q2FY21 Change Change Change Inventory 3,975 3,975 0.0% 281 3,975 4,256 7.1% 936 3,975 5,192 30.6% ARR 4,133 2
Slide 30: Operational Performance by Brands & Region
Operational Performance by Brands & Region – Q2 FY20 vs. Q2 FY21 Hotel level EBITDAR/room (Rs. Parameters Occupancy Rate (%) Average Daily Rate (Rs.) Hotel level EBITDAR Margin Lacs) Change Change Change By Brand (#Rooms) Q2 FY20 Q2 FY21 (bps) Q2 FY20 Q2 FY21 (%) Q2 FY20 Q2 FY21 Change (%) Q2 FY20 Q
Slide 31: Discussion on Consolidated Financial & Operational Performance
Discussion on Consolidated Financial & Operational Performance – Q2 FY21 Revenue from operations stood at Rs. 47.6 Cr in Q2 FY21, down 68.8% as compared to Rs. 152.8 Cr in Q2 FY20. On a sequential basis, revenue from operations increased 17.0% from Rs 40.7 Cr in Q1 FY21 ADR decreased by 35.8% fr
Slide 32: Consolidated Profit & Loss Statement – H1 FY21
Consolidated Profit & Loss Statement – H1 FY21 Rs. Cr H1 FY20 H1 FY21 YoY Change (%) Revenue from operations 293.7 88.3 -69.9% Other income 2.2 9.1 316.8% Total expenses 200.5 75.6 -62.3% EBITDA 95.4 21.8 -77.2% EBITDA margin (%) 32.2% 22.4% (986) Finance costs 66.2 98.4 48.7% Depreciation & amortiz
Slide 33: Consolidated Balance Sheet Snapshot
Consolidated Balance Sheet Snapshot Rs. Cr Sep ‘19 Mar ‘20 Sep ‘20 Shareholder's Funds 824.7 823.0 744.0 Non-controlling interests 430.9 721.8 861.4 Total Shareholder’s equity 1,255.6 1,544.8 1,605.4 Gross Debt 1,334.9 1,577.5 1,661.7 Other Non-current liabilities 381.4 464.2 467.4 Other Current lia
Slide 34: Expansion Plans – Hotels under Development
Expansion Plans – Hotels under Development Expected Opening Under-development hotels Type Rooms Ownership (%) date Lemon Tree Mountain Resort, Shimla Owned 69 TBD 100.00% Lemon Tree Vembanad Lake Resort, Alleppey, Owned 10 TBD 100.00% Kerela1 Aurika, Intl. Airport, Mumbai2 Owned 669 End of CY22 57.9
Slide 35: Expansion Plans – Pipeline of Management Contracts
Expansion Plans – Pipeline of Management Contracts (as on 31st October, 2020) Management Contracts Pipeline Rooms Expected Opening date Lemon Tree Hotel, Jhansi 60 Nov-20 Lemon Tree Premier, Vijaywada 120 Jan-21 Lemon Tree Hotel, Aligarh 68 Jan-21 Lemon Tree Premier, Bhubaneshwar 76 Feb-21 Lemon Tre
Slide 36: Annexures
lente ANNEXURES
Slide 37: Portfolio Breakup as on 31st October 2020 - Operational
Portfolio Breakup as on 31st October 2020 - Operational Operational Owned Leased Managed/Franchised Total Portfolio 31.10.2020 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika 1 139 0 0 0 0 1 139 Lemon Tree Premier 7 1,442 2 161 7 713 16 2,316 Lemon Tree Hotels 13 1,241 4 321 19 1,128 36 2
Slide 38: Portfolio Breakup as on 31st October 2020 - Pipeline
Portfolio Breakup as on 31st October 2020 - Pipeline In Pipeline Owned Leased Managed/Franchised Total 31.10.2020 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Aurika 1 669# 0 0 0 0 1 669 Lemon Tree Premier 0 0 0 0 5 349 5 349 Lemon Tree Hotels 1 79 0 0 18 1,390 19 1,469 Red Fox Hotels 0 0 0 0
Slide 39: Strategically positioned in key geographies
Strategically positioned in key geographies with Lemon Tree share of total branded hotel sector Jaipur: FY20 – 5.2% FY24E – 3.5% Delhi NCR: FY20 – 6.8% FY24E – 7.1% Ahmedabad:FY20 – 5.4% FY24E – 3.3% Kolkata: FY20 – 3.8% Mumbai: FY20 – 3.2% FY24E – 2.6% FY24E – 6.4% Pune: FY20 – 9.4% FY24E – 8.4% Hy
Slide 40: Strong operating performance
Strong operating performance Rooms are being added… …and occupancy levels increasing… Owned Leased Hotels Managed Hotels FY16 FY17 FY18 FY19 FY20 25% 8,006 2814 79% 4,870 5,411 78% 78% 77% 77% 77%78% 3,698 1841 675 3,249 1593 75% 75% 843 74%74% 461 481 573 73% 74% 283 317 4,517 71% 72% 2,505 2,538 2
Slide 41: Strong Growth and improving margins
Strong Growth and improving margins Revenue has increased at 20% over the last 5 years… …coupled with increasing EBITDA margins Revenue from operations (Rs. million) EBITDA & EBITDA margins 16% 36.2% 6,694 31.9% 27.9% 29.7% 29.3% 5,495 4,843 4,121 3,680 1,033 1,247 1,440 1,787 2,441 FY16 FY17 FY18 F
Slide 42: Consolidated Profit & Loss Statement – FY20
Consolidated Profit & Loss Statement – FY20 FY20 FY20 YoY Change IndAS 116 YoY Change Rs. Cr FY19 Before IndAS 116 After IndAS 116 (%) Impact (%) Impact Impact Revenue from operations 549.5 669.4 21.8% 669.4 21.8% Total expenses 380.7 464.3 21.9% -33.2 431.1 13.2% EBITDA 168.8 205.1 21.6% 33.2 238.3
Slide 43: Consolidated Balance Sheet Snapshot – FY20
Consolidated Balance Sheet Snapshot – FY20 Rs. Cr FY19 FY20 Shareholder's Funds 875.0 823.0 Non-controlling interests 432.2 721.8 Total Shareholder’s equity 1,307.2 1,544.8 Total Debt 1,204.2 1,577.5 Other Non-current liabilities 38.0 464.2 Other Current liabilities 222.4 176.3 Total Equity & Liabil
Slide 44: Operational Performance by Ageing – FY19 vs. FY20
Operational Performance by Ageing – FY19 vs. FY20 Adult Hotels Toddler Hotels Infant Hotels Under-development Parameters Financial year (Stable - older than 3 (Stabilizing - between (New - less than 1 hotels years) 1-3 years old) year old) FY20 24 6 11 Hotels1 2 FY19 21 7 2 Operating Rooms FY20 2,85
Slide 45: The hotel business cycle
The hotel business cycle Occupancy 70% Illustrative: 15 Room Hotel with 65% Investment = 300 60% Cycle Top (2) Middle (3) Bottom (2) Occupancy 70% or more 63-68% 60% or less Rooms Sold 12 10 8 Average Daily Rate 13 10 7 Revenue 156 100 56 3:2:1 Expenses 60 50 40 EBITDA 96 50 16 Hotel RoCE 32% 17% 5%
Slide 46: Conference Call Details
Conference Call Details Lemon Tree Hotels Limited (LTH) Q2 FY21 Earnings Conference Call Time • 3:00 PM IST on Monday, November 9th, 2020 Conference dial-in Primary number • Primary number: +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221(Available all over India) Internatio
Slide 47: About Us
About Us Lemon Tree Hotels (LTH) is the largest mid-priced hotel sector chain, and the third largest overall, on the basis of controlling interest in owned and leased rooms, as of June 30, 2017, according to the Horwath Report. LTH operates in the mid market sector, consisting of the upscale, upper