Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q4 FY22 Earnings Presentation
60 slides from Mahindra Holidays & Resorts India's earnings presentation, May 2, 2022
Slide 1: Club Mahindra cover letter to stock exchanges
ClubMahindra May 2, 2022 MHRIL/SE/22-23/13 Listing Compliance Department 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: MHR
Slide 2: Investor Presentation - Q4 FY22 & FY22
0, INDIA'S "A le INDIA'S ''s% 00,e INDIA'S BEST '1.^,11 0,:r INDIA'S BEST Ir FAVOURITE NI 10 MOST POPULAR It COMPANIES TO ‘I It WORKPLACE \I 1/16 1/ 0 '1,1 .4 WORK FOR - 1, 1 IN HOSPITALITY. ,y RESORT CHAIN HOLIDAY IQ AWARD 2017 RESORT CHAIN I I' TIMESTRAVEL AWARD 2019 1.10 4 +, TOP 50, 2021 0 - GRE
Slide 3: Outline
Outline Ac 4 CLubMahindm Highlights of MHRIL (Standalone) Performance i 03 MHRIL - Unique Er Profitable Vacation Ownership Business 1 08 - Business Environment I 17 - Q4 Er FY22 Performance I 23 - Long-Term Value Creation 37 - ESG Initiatives 42 Holiday Club Resorts - Q4 Et FY22 Performance 45 MHRIL
Slide 4: Highlights of MHRIL (Standalone) Performance
CLUB MAHINDRA KANDAGHAT HIMACHAL PRADESH 4CLubMahindm Highlights of MHRIL (Standalone) Performance
Slide 5: MHRIL Strong Performance Continues in Q4 despite Omicron wave
MHRIL Strong Performance Continues in Q4 despite Ae Omicron wave 4 CLubMahindm Member Base Resort Performance Room Inventory 4,058 77% 226 Member Additions Operational Occupancy Rooms Added this Quarter —2,66,000 Rs. 57 Crs 4,568 Cumulative Member Base Resort Revenue Total Room Inventory Profitabili
Slide 6: Q4 FY22 Financial Performance has improved since onset of pandemic
MHRIL Q4 FY22 Financial Performance has improved since V the onset of the pandemic in Mar'20 Ac 4 CLubMahmdm 85% 4,789 77%2 4,0582 7C, /0 3,616 • Resort Member Occupancy Additions Q4 FY20 ilk Q4 FY211 Q4 FY221 1 M Q4 FY20 Q4 FY21 Q4 FY22 59.0 0.1 26.3 56.9 48.9 53.1 29.1 32.4 32.6 Resort 8.6 Income
Slide 7: MHRIL FY22 - Healthy Member to Room Ratio
MHRIL FY22 - Healthy Member to Room Ratio Ae r 4CLubMahindm No. of Resorts 70 awl 84 15,697 4,197 4,568 12,031 12,764 3,732 Despite the Member Room pandemic, in FY21 & Additions Inventory FY22 we (Nos) (Units) added 800+ keys 2 2 FY20 FY21 FY22 FY20 FY21 FY22 Annual Room Addition (Units) 137 3853 69
Slide 8: MHRIL FY22 - Robust growth in PBT & EPS despite Two Waves of Covid-19
MHRIL FY22 - Robust growth in PBT Er EPS despite Two Waves of Covid-19 CLubMahindm 1,037 1,071 228 909 193 Total Resort Income 104 Income (Rs. Crs) (Rs. Crs) FY20 FY21 FY22 FY20 FY21 FY22 * 204** 169 * 76** 19.0% 6.3 PBT 124 2 18.6% Adjusted 4.6 (Rs. Crs), PBT Margin 12.0% EPS1 (Rs.) (%) FY20 FY21 F
Slide 9: MHRIL Unique & Profitable Vacation Ownership Business
Ae 4 CLubMahindm MHRIL Unique Et Profitable Vacation Ownership Business CLUB MAHINDRA VARCA GOA
Slide 10: A Large & Attractive Market for Vacation Ownership in India
A Large Er Attractive Market for Vacation Ownership in India fir` CLubMahindm 01 • -3 Crs High-income Households with an annual income > Rs. 275 lakhs expected by CY30 There is a huge potential target market for VO as household • • Rs. 55 Lakh Crs Annual Consumption from high-income households by CY
Slide 11: MHRIL has created a unique and sustainable Vacation Ownership business
Over 25 years, MHRIL has created a unique and sustainable Vacation Ownership business and is the #1 Leisure Hospitality AV( player in the country CLubMahindra MHRIL Vacation Ownership business consists of .. ...with unique competitive advantages Strong economic model and difficult to replicate Club
Slide 12: Club Mahindra's Product Portfolio
Club Mahindra's Product Portfolio .11.-Ptahindra CMH – 25 years, 7 nights per year Target Consumer: Lifestyle Parameters Consumer Holiday Needs Couples (Age 30-45 years) • Provider, adaptive to changes & • Plan vacations in advance with young children aspirational • Seek family bonding 1 have dreams
Slide 13: Expanding Choice of Destinations available to members
Expanding Choice of Destinations available to members across MHRILIF and Holiday Club Resorts (NCR) along with 300+ Partner Hotels - CLubMahindm C1,41,Nial-anclra CLUB Holiday•Club HOriZ 011S SELECT 33 Timeshare/Spa Holiday Exchange Offer 365-day 4,500+ rooms across 84 Resorts Hotel Program with 260
Slide 14: Our Business Model is Differentiated
Our Business Model is Differentiated A4e OubMahindra Focus on Family Vacations Multi-Product Portfolio serving diverse customer needs A II Spacious Resortsi Kith Larger Apartments • Memorable family experiences • Portfolio approach to help • Members prioritize vacationing o New Er popular destinatio
Slide 15: Multi-Year Sources of Value Creation in Vacation Ownership
Multi-Year Sources of Value Creation in Vacation Ownership across ia the Tenure of the Membership ) ve CLubMahindm New member joins Vacation Ownership Income • Membership Fee over the entire tenure of membership • Admission Fee & Entitlement Fee • Interest Income \LE Annual Subscription Fee (ASF) •
Slide 16: Business Model with Large & Growing VO Member Base
MHRIL Business Model is Distinct due to its Large & Growing I VO Member Base with Predictable Occupancies Er Cash 4 CLubMahindm Generation Create a variety of vacation options and Growing experiences through a choice of Inventory destinations, unique properties & accommodation types Growing and Loya
Slide 17: MHRIL - At a Glance
MHRIL - At a Glance Ac 4 CLubMahindm A Strong Our Key Long-Term Industry Outlook Performance Differentiators Value Creation Track Record Well Poised to Drive Domestic • Unique and resilient business • Multiple annuity revenue Key Strategic Initiatives to Leisure Travel Demand model streams Drive Con
Slide 18: MHRIL Business Environment
A tp 4 CLubMahindm MHRIL Business Environment CLUB MAHINDRA BINSAR UTTARAKHAND
Slide 19: In Q4, Consumer spending improved post the Omicron wave
In Q4, Consumer spending improved post the Omicron wave Ae RBI Consumer Confidence demonstrated increasing optimism 4 CLubMahindm Private Consumption started to normalize -Current Situation Index (CSI) ;Future Expectations Index (FEI) —Real GDP, YoY (R) 140.0 • - -. • 30% i ‘, 20% 120.0 20%, 110% 10
Slide 20: Mobility and Travel Sentiment has shown positive uptick in Q4
Mobility and Travel Sentiment has shown positive uptick in Q4 le Oil CI .1 btflatlindr a Google Mobility Trend for Retail Er Recreation improved Domestic Airline Passenger Traffic gained traction in in Q4 Q4 post the Omicron wave Domestic Passengers (in million) Retail and Recreation, rolling 7-day
Slide 21: Emerging Travel Trends in the Indian Hospitality Sector
Emerging Travel Trends in the Indian Hospitality Sector Ae 4 Cr..1 btitahindr a • • Seeking the Newfound Vacation Curated Experiences Er Family Bonding DIY Packages Outdoors Ideas Long periods of staying Multi-generational travel indoors have led to Newfound vacation ideas Travelers are seeking has
Slide 22: MHRIL well-positioned to capitalize on consumer preferences in post Covid Era
MHRIL is well-positioned to capitalize on varying consumer preferences in the post Covid Era _re CLubMahindm e pandemic has led to certain trends emerging i ... which MHRIL is well placed to capitalize on the Indian Hospitality industry... TICKET FCTI Revenge Tourism due to pent-up demand for leisur
Slide 23: Mitigating actions amid inflationary pressures & geopolitical backdrop
Amidst Inflationary Pressures & Geopolitical Backdrop, we have taken certain mitigating actions Ae 4CLubMahindm 0 Geopolitical Risks • Rise in oil prices due to supply chain • Inflationary pressures affecting disruptions caused by the Russia- household budgets and consumer Ukraine conflict impacted
Slide 24: MHRIL Q4 & FY22 Performance
Ae 4 CLubMahindm MHRIL Q4 6- FY22 Performance 23
Slide 25: Robust Business Performance Delivered in Q4 & Full Year
Robust Business Performance Delivered in Q4 Er Full Year AP 4 CLubMahindra • Q4FY22 FY22 Operational Excellence 04FY22 FY22 Financial Delivery I Occupancy* I id ■ Resort Revenue Rs 57 Cr (7% YoY t) Rs 193 Cr (85% YoYt) Member Additions 12,764 PBT Rs 59 Cr Rs 204 Cr Total Room Inventory L r Cash Posi
Slide 26: Member Acquisitions remained robust despite multiple Covid-19 waves
Member Acquisitions remained robust despite multiple AVc Covid-19 waves 4 CLubMahindm Nos. 12,764 4,789 12,031 4,058 Robust Demand for 3,943 I 3,701 3,291 Vacation Ownership 2,681 reflected in Member 1,270 I 1,062 Additions. Cumulative member base is -2.66 Lakh c-\] N c\] c\] CV c\] c\] c\] >- >- >-
Slide 27: Member Acquisition & Holidaying improved in FY22 vs FY21
With an uptick in travel sentiment, Member Acquisition Er Holidaying improved in FY22 vs FY21 Ae Member Holidaying 4 Member Booking ClubMahindni Customer Acquisition Behaviour Preferences Customer acquisitions I Members holiday in a 58% through referral and 36% group of 4 or more digital route 3.2 R
Slide 28: Resort Revenues Growth Driven by Increased Occupancies & Room Inventory
Resort Revenues Growth Driven by Increased Occupancies & al r Room Inventory 1 CLubMahindm 85% I 75% 73% 80% 77% I 72% 74% Resort 51% II Occupancy* 1 (%) 30% I 0% I II i Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4FY22 FY21 FY22 c Highest I Ever in I Quarter 4 I 192.7 I 70.0 I Resort 5
Slide 29: Growing footprint of resorts with wide choice of inventory
Growing footprint of resorts with a wide choice of inventory available to our members _re ClubMahindra II LADAKH India SRINAGAR DHARMASHALA NALDHERA 73 Properties + In addition to the properties in India, we have 11 properties MANALIT in South-East Asia Ey Middle East and 33 Destinations in RISHIKES
Slide 30: Inventory Portfolio expanded to 84 resorts in FY22
Inventory Portfolio expanded to 84 resorts in FY22 as follows Ae 4 Cr..1bMahincha 4,568 • Rameswaram, Tamil • Assonora, Goa • Pattaya, Thailand Nadu • Tungi, Lonavala • Bentota, Sri Lanka • Dindi, Andhra Pradesh • Leh • Ashtamudi, Kerala • Bali, Indonesia • Pushkar, Rajasthan • Kensville, Gujarat In
Slide 31: Q4 FY22 - Improvement in Income, EBITDA & PBT
Q4 FY22- Improvement in Income, EBITDA Er PBT since onset of pandemic 41 ire Rs. Crs Q4 FY22 vs Q4 FY20 CLubMahindm Total Income EBITDA PBT 19% i I- 66% 1 I- 102% + 4 304 59 98 1 I 256 255 VO 15 22 59 64 m 49 53 32 29 I Resorts 192 202 Others 180 Q4 FY20 Q4 FY21 Q4 FY22 Q4 FY20 Q4 FY21 Q4 FY22 Q4 FY
Slide 32: FY22 - Income, EBITDA & PBT
FY22 -Income, EBITDA & PBT a °ill FY22 vs FY20 Rs. Crs 1011 ClubMahindra Total Income EBITDA PBT 3% 43% I 65% 1 • • 204 1,037 345 60 • 110 169 286 PI 7 193 1 221 242 VO 04, 124 Resorts 749 718 Others FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 FY22 vs FY21 (adjusted for one-offs*) Total Income EBIT
Slide 33: Total Income growth YoY 19% in Q4 FY22 and 18% in FY22
Total Income growth YoY in 19% in Q4 FY22 and 18% in FY22 AVe CLubMahindm Quarter ended Year ended Total Income (Rs. Lakhs) Q4 FY22 Q4 FY21 YoY Gr FY22 FY21 YoY Gr VO Income 20,217 17,983 12.4% 76,797 71,786 7.0% Resort Income 5,686 5,305 7.2% 19,271 10,438 84.6% Revenue from Operations 25,903 23,28
Slide 34: P&L - Q4 FY22
P&L - Q4 FY22 Ae Q4 FY22 Q4 FY21 4 YoY Growth CLubMahindm Particulars (In Rs. Lakhs) As Without As Without As Without One-offs One-offs Reported one-offs Reported one-offs Reported one-offs Revenue from Operations 25,903 - 25,903 23,288 - 23,288 Non-Operating Income 1,863 - 1,863 1,322 - 1,322 Inter
Slide 35: P&L - FY22
P&L - FY22 e FY21 4 ClubMahindra YoY Growth FY22 As Without As Without As Without One-offs One-offs Reported one-offs Reported one-offs Reported one-offs Revenue from Operations 96,068 - 96,068 82,224 - 82,224 Non-Operating Income 6,690 - 6,690 5,577 - 5,577 Interest Income from IT Refund 444 444 -
Slide 36: Balance Sheet and Liquidity Growing from Strength to Strength
Balance Sheet and Liquidity Growing from Strength to Strength Ac 4 CLubMahindm Rs. 5,083 Cr Rs. 1,172 Cr Rs. 2,292 Cr Zero debt Q4 addition of Addition of Includes Land Credit Rating for Rs. 31 Cr to the Rs. 232 Crs during valued at Rs. 1,233 Long-term pool the year Cr and facilities at IND A+ exclu
Slide 37: Snapshot of Balance Sheet
Snapshot of Balance Sheet L. Description ASSETS Property, Plant and Equipment In Rs. Lakhs As on 31st March 2022 229,203 As on 31st March 2021 214,285 4 CLubMahindm Right of Use Asset (IND AS 116) 26,781 15,412 Trade receivables 112,817 120,479 Cash and cash equivalents (regrouped) 117,156 93,967 De
Slide 38: MHRIL Long Term Value Creation
CLUB MAHINDRA MANALI HIMACHAL PRADESH dlOc 4 CLubMahindm MHRIL Long Term Value Creation mita- isisineamontesoiremipmArreiwai Wit Vi ; rialimm -16115147 .47111 31 7 411 7117 4:7:fi:71 2F 4;7:: ,„ iddlAkt. • - - 37
Slide 39: Strategy to Drive Consistent Growth
Strategy to Drive Consistent Growth 4 CLubMahindm Mi. Accelerate Room Inventory Additions Grow Cumulative Member Base ) ( Improve Operational Efficiencies Strengthen Brand ( Deliver Superlative Customer Experience Digital Enablers Enablers 11 Pull Transformation 11 38
Slide 40: Creating New & Innovative Customer Experiences
Creating New Er Innovative Customer Experiences Ac 4 aubMahindra Kebab and Biryani Festival Rajasthani Theme Pottery Making -111 .10 C {r bappv hours for your nistelbuds_ It!kir 14P. 4112 Yoga Session Celebration Platter New Café Brand - Unwind Kids Magic Show Rocksport Happy Hub Experiences Pirate
Slide 41: Accelerate Member Additions
Accelerate Member Additions 4 CLubMahindm 1 Scale up Member acquisition through Referrals, Digital and Alliances Use a multi-product portfolio to acquire members based on life- stage segmentation (Go Zest, CMH-25 and Bliss) Scale up resort onsite sales teams to acquire new members and upgrade existi
Slide 42: Strengthening Brand Pull through Targeted Marketing Campaigns
Strengthening Brand Pull through Targeted Marketing Campaigns - FY224•Vir CLubMahindm Brand Campaigns - Jaana Kahan Hai" - "We cover India, You Discover India" Regional Focused Campaigns V A Cluk141111nAng ttlf.P 11, +1,4411.11 THE HINDU GROUP EXPRESS YOUR HOLIDAY MEMORIES IN THE COISURS YOU IgvE. G
Slide 43: ESG Initiatives
ASSONORA GOA OubMahindra ESG Initiatives
Slide 44: Our Sustainability Journey
Our Sustainability Journey Ae 4 CLubMahindra • Achieve Carbon Neutrality by 2040: • Jal Jivan Initiative - improve efficiency of water o RE100 (100% Renewable Energy by 2050) utilization through 4 R principle (Reduce, Reuse, Recycle, Rainwater harvesting) o EP10C (Double the Energy Productivity by 2
Slide 45: CSR efforts to bring positive change in our society
We drive our CSR efforts to bring positive change in our society with a focus on Environmental Sustainability, Skill Development/ Livelihood Creation & AP Disaster Management in & around our Resorts 4 CLubMahindm Skill Development /Women 88 Promoting Education Empowerment • Skilling 75 women in Hosp
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Slide 47: Holiday Club Resorts - The Largest European Timeshare Company
Holiday Club Resorts - The Largest European Timeshare Company 'ft CI hNtahindr a • 33 Timeshare Destinations - 25 in Finland, 2 in Sweden, 6 in Spain (5 in Gran Canary, 1 in Costa del Sol) • 60,000+ Timeshare owners • 8 large Spa resorts in Finland, 1 in Sweden • 1,200+ Hotel Rooms • 1.3 million vis
Slide 48: HCR Revenue grew by 41% in Q4 FY22 YoY & 23% in FY22 YoY
HCR Revenue grew by 41% in Q4 FY22 YoY 8- 23% in FY22 YoY CLubMahindm Q4 FY22 Particulars (Euro Mn) Q4 FY22 Q4 FY21 FY22 FY21 • Omicron and related restrictions impacted the Finland Timeshare 7.9 6.0 29.1 27.4 business specifically from Nov'21 till mid-Feb'22. Spa Hotels 19.0 9.7 65.2 43.1 • Timesha
Slide 49: Delivered close to Breakeven EBITDA in FY22
Delivered close to Breakeven EBITDA in FY22 c,,...,bma Q4 FY22 Particulars (Euro Mn) Q4 FY22 Q4 FY21 FY22 FY21 • Revenue increased by 9.7 M€ primarily due to Revenue growth from Spa Hotels in Finland Turnover 33.2 23.5 122.1 99.5 and Sweden. Operating Profit / (Loss) 0.6 (4.1) (0.3) (8.9) • Delivere
Slide 50: HCR Outlook
HCR Outlook Ae 4 CLubMahindm • Covid related restrictions on restaurants, spa, sports, and indoor activities were eased off from mid-Feb'22 onwards. • The Finnish economy's growth forecast has been revised downwards on account of the ongoing Russia-Ukraine conflict. • While the crisis in Ukraine is
Slide 51: MHRIL Consolidated Q4 & FY22 Financials
CLUB MAHINDRA POOVAR KERALA ClubMahindra MHRIL Consolidated Q4 Et FY22 Financials 50 I
Slide 52: Segment Financials
Segment Financials Segment Revenue (Rs. Lakhs) - MHRIL Q4 FY22 30,442 Q4 FY21 25,837 FY22 107,883 FY21 91,236 4 CLubMahindm - HCRO 27,996 23,509 109,344 93,080 Total Segment Revenue 58,438 49,346 217,227 184,316 - Others (155) 274 658 410 Total Income 58,283 49,620 217,885 184,726 Segment PBT (Rs. L
Slide 53: Highest Ever Consolidated Profit in FY22
Highest Ever Consolidated Profit in FY221 despite multiple Covid waves joiVir CLubMahindm Particulars (Rs. Lakhs) Q4 FY22 Q4 FY21 YoY % FY22 FY21 YoY % Income from Operations 54,258 46,541 16.6% 201,330 172,996 16.4% Non-Operating Revenue 4,025 3,079 30.7% 16,555 11,730 41.1% Total Income 58,283 49,
Slide 54: MHRIL Historical Performance
CLUB MAHINDRA MASHOBRA HIMACHAL PRADESH Ae 4 CLubMahindm MHRIL Historical Performance 53
Slide 55: Large base of committed members continues to grow
Large base of committed members continues to grow Ae 4CLubMahindm In FY22, Cumulative Member Base is -2.66 Lakhs with 85% of Fully Paid Members Total Member Base 1,99,617 2,18,138 2,35,792 2,43,574* 2,58,336 2,54,431* 2,65,980 225,838 191,615 208,967 RI 177,277 162,875 145,960 Fully Paid 141,947 Mem
Slide 56: Investment in Room Inventory continues with High Occupancy and growing Cash
Investment in Room Inventory continues with High Occupancy Levels and a growing Cash position Ae 4CLubMahindm Occupancy L81% I I 85% I r 85% 1 83%* I 72%* 74%* 1,600 4,568 4,500 1,400 1,172 1,200 4,000 3,595 940 1,000 3,472 3,500 800 572 600 3,000 2,879 470 332 331 356 400 266 301 267 2,500 265 8311
Slide 57: A Strong and Consistent Performance Track Record
A Strong and Consistent Performance Track Record Oil CI .1 NM.ailirLdr a Total Revenue CAGR of 10% (FY15-19) PBT CAGR of 23% (FY15-19); PBT CAGR of 27% (FY19-22) In Crs In Crs 1,170 1,090 1,094 18 1,071* 241 964 =JP 109 1,037 89 12 93 963 67 11iim 909* 67 201 207 2042 808 190 209 220 122 12 64 173 8
Slide 58: Revenue contributions from various streams
Revenue contributions from various streams AP 4 CLubMahindm IND AS 18 IND AS 115 . .„, i. e. 1 6% ■ 5% 7% 8% 9% 12% Our cumulative 11% 9% 6% 18% I member base 19% 20% provides us with 27% 28% 29% multiple annuity 32% 18% 17% 19% revenue streams which are 23% 22% 12% 18% predictable, such as VO Incom
Slide 59: Growing Profit Margins
Growing Profit Margins Ae 4 CLubMahindm EBITDA Margin PBT Margin a 32%1- 32%2 21% 2 18% 19% 19%1- 19% 25% 24% 24% 25% 23% 17% 13% 12% 16% 10% FY15 FY16 FY17 FY18 FY19 FY19 FY20 FY21 FY22 FY15 FY16 FY17 FY18 FY19 FY19 FY20 FY21 FY22 IND AS 18 ' IND AS 115 IND AS 115 & 116 IND AS 18 IND AS 115 IND AS
Slide 60: Thank You
ASSONORA Ae 4 CLubMahindm Thank You For further enquiries, please contact: Investor Relations Officer Mahindra Holidays Er Resorts India Ltd. Email: investors@mahindraholidays.com CORBETT UTTARAKHAND
Mahindra Holidays & Resorts India — Q4 FY22 Earnings Presentation on 6ix