Indian Hotels Co. Ltd. · NSE:INDHOTEL

Indian Hotels — The Indian Hotels Company — Investor Presentation (August 2019)

29 slides from Indian Hotels's investor presentation, August 2019

  1. Slide 1: Investor Presentation

    Investor Presentation August 2019

  2. 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 182 22,000+ $1 Billion+ hotels keys Group revenue 32,000+ associates 2

  3. 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

  4. Slide 4: Indian hospitality – short-term headwinds but good long-term potential

    Indian hospitality – short-term headwinds but good long-term potential Headwinds Tailwinds • Impact of elections on occupancies, MICE • Increasing foreign tourist arrivals (14% yoy, < 1% global) • Hold back of discretionary spends • Improving domestic demand • Increasing local airfare / turmoil in a

  5. Slide 5: Supply & Demand Scenario – Q1 2019/20

    Supply & Demand Scenario – Q1 2019/20 Luxury Supply growth 2.9% Demand growth 4.6% Upper Upscale 80% Supply growth 1.6% Total Industry Portfolio Demand growth 4.0% Supply growth 3.2% Demand growth 3.0% Upscale Supply growth 3.7% Demand growth 4.0% Midscale and Economy Supply growth 3.4% Demand growt

  6. Slide 6: Q1 FY 2019/20 Sustained RevPAR Growth at 2.0%

    For Indian Hospitality, Q1 FY 2019/20 has been one of Sustained RevPAR Growth at 2.0% ₹ 5,762 ₹ 5,705 ₹ 4,649 ₹ 4,399 ₹ 4,221 ₹ 4,181 ₹ 4,166 ₹ 4,057 ₹ 3,980 ₹ 3,746 ₹ 3,684 ₹ 3,671 ₹ 3,526 ₹ 3,381 ₹ 3,353 ₹ 3,286 ₹ 3,281 ₹ 3,245 ₹ 3,232 ₹ 3,154 ₹ 3,102 ₹ 2,832 ₹ 2,329 ₹ 2,284 ₹ 2,209 ₹ 2,204 ₹ 2,18

  7. Slide 7: Aspiration 2022

    Aspiration 2022 Unveiled in February, 2018 15 NEW PROJECTS EVERY YEAR 8% EBITDA MARGIN EXPANSION 50-50 PORTFOLIO 7

  8. Slide 8: 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 8

  9. Slide 9: Reimagining Brandscape: To cater to all segments and price points

    Reimagining Brandscape: To cater to all segments and price points Luxury 85 hotels 12,800 keys Upper Upscale 12 hotels 1,200 keys Upscale 27 hotels 3,800 keys 182 Hotels Lean Luxe 22,000+ Keys 58 hotels 4,900 keys *Portfolio including pipeline Low ARR High 9

  10. Slide 10: Restructuring Portfolio: Momentum Continues

    Restructuring Portfolio: Momentum Continues SMART Strategic Margin Asset Relationships Tracking Enhancing Management 22 9 4 Signings - FY 2018/19 Signings - YTD 2019/20 Openings - YTD 2019/20 10

  11. Slide 11: Our Portfolio – India Focus, selective International Expansion

    Our Portfolio – India Focus, selective International Expansion 22 3900 22% 182* Hotels 22,000+* Keys Brandscape 56% 17% (Post migrations) 18802 5% 160 Domestic International Domestic International Taj SeleQtions Vivanta Ginger 182 hotels with 152 operational and another 30 under development *includi

  12. Slide 12: Shift in Business Mix

    Shift in Business Mix 23% 20% Holding Company Holding Company 32% 41% Management Contracts Management Contracts 45% 39% Group Companies Group Companies Portfolio as on 31st March 2018 Portfolio as on 31st July 2019 12

  13. Slide 13: Onground Operational Excellence driving Business Performance

    Onground Operational Excellence driving Business Performance Employee Guest Engagement Engagement Operational Excellence Margin Process Enhancement Excellence 13

  14. Slide 14: Financial Turnaround

    Financial Turnaround 14

  15. Slide 15: 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     15

  16. Slide 16: 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 16

  17. Slide 17: Performance Highlights – Q1 FY 2019/20

    Performance Highlights – Q1 FY 2019 / 20 Revenue EBITDA EBITDA Margin PAT ₹ 1,057 cr ₹ 166 cr 15.68% ₹ 14 cr 304 6% 32% (8%) bps ₹ 995 cr ₹ 126 cr 12.63% ₹ 15 cr *Consolidated Performance – Excludes IND AS Lease Standard Impact (like-for-like) 17

  18. Slide 18: Consolidated Profit & Loss Statement – Q1 2019/20

    Consolidated Profit & Loss Statement – Q1 2019/20 ₹ /crores Q1 2019/20 2019/20 Actual Particulars Ind AS 116 2018/19 Actual Actual Pre Ind AS Vs Impact Actual Post Ind AS Pre Ind AS PY Revenue from Operations 1,020 0 1,020 980 4% Non-Operating Revenue 37 0 37 15 147% Total Revenue 1,057 0 1,057 995

  19. Slide 19: Continued Outperformance by USA and UK Hotels – Q1

    Continued Outperformance by USA and UK Hotels – Q1 REVENUE EBITDA St. James Court, London 22% St. James Court, London 68% The Pierre, NY 6% The Pierre, NY 315% Taj Campton Place, SFO 2% Taj Campton Place, SFO 28% EBITDA MARGIN RGI St. James Court, London 820 pp St. James Court, London 102  121 The

  20. Slide 20: 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

  21. Slide 21: 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 21

  22. Slide 22: 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

  23. Slide 23: Managing Leverage: Preserving Balance Sheet health

    Managing Leverage: Preserving Balance Sheet health ₹ /crores 1.27 3912 1889 1925 1975 4216 0.97 3151 0.82 Improving D / E 0.38 0.39 0.37 3323 3256 4958 5147 5013 4748 2015 / 16 2016 / 17 2017 / 18 2018 / 19 2019 / 20 Q1 Pre 2019 / 20 Q1 IndAS 116 Post IndAS 116 Equity Net Debt Net Debt : Equity Net

  24. Slide 24: 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 Q1 2019/20 EBITDA 652 665 732 913 166 Divestments* 151 1,163 - 246 42 Equity - 1,500 * Divestments include – Taj Boston; Holding in Belmond, Tata Projects, Titan Ltd, Vizag & Tr

  25. Slide 25: 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

  26. Slide 26: New Platform furthers our SMART approach to Acquisitions

    New Platform furthers our SMART approach to Acquisitions ₹ 4,000 crore (USD 600 Mn) Investment Platform 26

  27. Slide 27: Summary: Key Imperatives for Aspiration to Execution

    Summary: Key Imperatives for Aspiration to Execution ASPIRATION: TO BE THE MOST ICONIC AND PROFITABLE HOSPITALITY COMPANY 27

  28. Slide 28: Strong institutional shareholding

    Strong institutional shareholding Shareholding Pattern* Top institutional investors* Investors % stake in IHCL Retail, 13% Reliance Mutual Fund 7.89 Tata Group, HDFC Mutual Fund 5.91 39% ICICI Prudential Life Insurance Company Ltd. 2.80 FII, 12% Government Pension Fund Global 2.65 ICICI Prudential M

  29. Slide 29: 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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