Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q2 FY21 Earnings Presentation
51 slides from Mahindra Holidays & Resorts India's earnings presentation, Oct 29, 2020
Slide 1: Exchange filing cover letter for results presentation
4,Ve 4 ClubMahindra October 29, 2020 MHRIL/SE/20-21/67 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 Dalal Street Bandra E, Mumbai – 400 051 Mumbai – 400 001 Scr
Slide 2: Q2 FY21 Investor Presentation
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Slide 3: Disclaimer
clubtodartindra 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 considers reasonabl
Slide 4: Contents
clubmartindra Contents MP' 1 Unique Et Leadership Q2 FY21 Holiday Club ] Resilient Business Model Position in Vacation Ownership Results Update 1 Resorts, Oy 3
Slide 5: Business Model
4 11. 111.4 1 1 11r ClubMakkindra 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 Off Peak ( F p Studio White (2 adults, 1child) Medium 1BR Appreciates quali
Slide 6: Sales Network and Revenue & Cost Model
L./0 ClubMahlndra Sales Network and Revenue & Cost Model 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, Camp
Slide 7: Unique & Resilient Business Model
if 4 ClubNlahirtdra Unique & Resilient Business Model 6
Slide 8: Resilient Business Model
Resilient Business Model .. .• Income from Financing Admission Fee Resort - FIT Annual Subscription Fee • Resort - Members Interest 111,111111111111111111111 Recurring Revenue Streams : ASF*, Resort Income Value Creation Upfront Admission Fee Value Realized Residual Value*: Upfront Built-in Multiple
Slide 9: Key Takeaways
( :II it )Mahindra Key Takeaways ▪ Strong and Resilient Business model • Cumulative member base of 2,60,000+ 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 Deferr
Slide 10: Unique Business Model - Strong Balance Sheet
a4 go ClubMahindra Unique Business Model - Strong Balance Sheet Deferred Strong Cash Debt I Strong Asset I Revenue Position Base Rs. 5,376 Cr Rs. 791 Cr Zero debt Rs. 2,094 Cr* Income earned This together with Includes Land and deferred as Accounts Assets per INDAS 115, receivables book of of Rs. 1,
Slide 11: Unique Business Model - Consistently High Occupancy
(:I‘MMahindra Unique Business Model - Consistently High Occupancy 81% 85% 85% 83% 80% 3,732 3,682 3,595 3,622 3,472 3,152 30% 2,879 0% FY16 FY17 FY18 FY19 FY20 Q1 FY21 Q2 FY21 Room Inventory (Units) Occupancy % Notes: 1. Phased opening of Resorts as per the State Government guidelines. As on 30th Se
Slide 12: Operating Performance
Fir ClubMahindra Operating Performance
Slide 13: Q2 FY21 Performance
4, 4 le ClubMattindra Q2 FY21 Performance Membership Total Base Income Member Addition Margin Occupancy Total Income Levels 2,681* I I Rs. 212 Cr* I I I I Occupancy PBT Margin I I I I (on Operating I I I. I Room Inventory) 21.6% 30%* 1052 bps YOY growth *The Company’s operations have been impacted d
Slide 14: H1 FY21 Performance
• Clubbialtindra H1 FY21 Performance Membership Total Base Income Margin Occupancy Member Addition Levels Total Income 3,951* Occupancy Rs. 408 Cr* PBT Margin (on Operating room inventory) 20.1% 29%* 917 bps YOY growth * The Company’s operations have been impacted due to COVID 19. Hence, the Company
Slide 15: Cumulative Member Base
ClubMahindra Cumulative Member Base 2,58,336 2,60,955 ** 2,43,574 * 1 2,35,792 2,18,138 1,99,617 FY-16 FY-17 FY-18 FY-19 FY-20 H1 FY21 * Net of one-off cancellation of 9,556 overdue members in Q4 FY19. ** Member additions have been adversely impacted by COVID in H1FY21. 14
Slide 16: Member Acquisition
4 clubtodartindra Member Acquisition • We have added 2,681 members in Q2FY21 (1270 members were added in Q1FY21). • Enhanced member engagement by moving from offline “Heart to Heart” to Digital “Heart to Heart” along with other initiatives, has helped to increase Referral & Digital contribution to a
Slide 17: Q2 FY21 - Costs
( I: IN ahindra Q2 FY21 - Costs ₹ In Crs -9% -41% 63 63 58 50 -36% 37 32 -42% 17 10 Sales & Marketing Expenses Rent Employee Benefit Expenses Other Expenses Q2 FY20 Q2 FY21 Significant cost saving measures have resulted in total cost reduction by 29% YoY. 16
Slide 18: Cash position
Ch thMahindra Cash position 781 791 ₹ In Crs 572 470 265 84 FY16 FY17 FY18 FY19 FY20 H1 FY21 • Strong Cash Position continues. • Continuing with planned Capital investments in two ongoing projects at Goa & Ashtamudi, Kerala. 17
Slide 19: Leadership Position in Vacation Ownership
if 4 ClubNlahirtdra Leadership Position in Vacation Ownership 18
Slide 20: Leadership Position in Vacation Ownership
clubtodartindra Leadership Position in Vacation Ownership Trusted Brand Choice of 2.60 Lakh+ Member -Most Popular Resort Chain 58 Domestic resorts base (2018) & 51 International Track record of over two - India’s Favorite Resort Chain (2017) resorts decades Inventory exchange program for our Club Me
Slide 21: Resort Diversity
ClubMahindra Resort Diversity Hill Stations Beaches Cities ▪ Naldehra, Kandaghat, Manali, ▪ Varca, Emerald Palms, Acacia Palms - ▪ Ahmedabad, Nadiad Dharamshala, Mashobra Goa ▪ Bangalore ▪ Kanatal, Binsar, Mussoorie, Naukuchiatal, ▪ Ganpatipule ▪ Cochin Rishikesh ▪ Diu ▪ Dubai ▪ Srinagar ▪ Cherai ▪
Slide 22: Member Engagement
ClubMahindra Member Engagement Dreamscapes Heart-to-Heart Curated Vacations Exchange Program • • Festivals & theme-based • Creating choice of Wide variety of in-city • In-city meets include experiences especially vacation experiences for destinations for members for leisure & edutainment curated for
Slide 23: Member Engagement & Safety Standards
Ow) ahlndra Member Engagement & Safety Standards
Slide 24: Member Feedback
Member Feedback AP 4 CLubMahindm Krish Peanakr Sohl 4000. @KrishPranavSori1 00000 Visit to club ma hindra Kurabhoigo rh @clubmahincfre @@nandrnahindra ''ULe 4ovgl aid seri/ice 1210812020 to 1510812020 Prlyech @Priygt133093507 18 @singhkavinder qrl posi Louid-- tt precautimary measures 190.s taken Mu
Slide 25: 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 26: Travel with confidence
clubtodartindra Travel with confidence We have launched a door to door solution that encompasses the member journey of holidaying under the #TravelwithConfidence platform which addresses the expressed concerns of members through multiple initiatives. Salient features of #Travelwithconfidence Ecosyst
Slide 27: Occupancy Movement
Occupancy Movement Ae No. of Resorts opened 4 CLubMahindm 37 28 Occupancy as % of Operating Room nights 21 41% Jul-20 Aug-20 Sep-20 Operational Inventory as a % of Total Inventory 19% • _. 23% . 69% 56% 36% Jul'20 Aug'20 Sep'20 Jul'20 Aug'20 Sep'20 • Phased reopening of resorts has improved the oper
Slide 28: Financial Performance Q2 FY21
Financial Performance Q2 FY21 L.
Slide 29: Q2 FY’21 Performance Trend
ClubMahirtdra Q2 FY’21 Performance Trend Total Income* EBITDA Margin PBT Margin Rs. Crs 35.2% -15% +1267 bps 21.6% 249 +1052 bps 44 212 22.5% 7 11.1% 205 205 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 VO Resorts *Total income has been affected due to lower Resort Income. 28
Slide 30: Q2 FY’21 Profit Growth
Clt ibMahindra Q2 FY’21 Profit Growth Rs. Crs Rs. Crs PBT PAT 46 +65% 34 +89% 28 18 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 29
Slide 31: Income Break Up – Q2 FY’21
ClubMahirtdra Income Break Up – Q2 FY’21 Rs. In Lakhs Quarter ended Total Income Q2 FY21 Q2 FY20 YoY Gr Income from Vacation Ownership 8,486 8,803 -3.6% ASF 7,336 7,222 1.6% Interest & Others 2,085 2,921 -28.6% Non-Operating Income 1,354 1,608 -15.8% Income From Lease Rent waivers 1,238 - Total Inco
Slide 32: Profit & Loss Statement – Q2 FY’21
( I: IN ahindra Profit & Loss Statement – Q2 FY’21 Rs. In Lakhs Quarter ended Particulars Q2 FY21 Q2 FY20 YoY Gr Revenue from Operations 18,579 23,354 -20.4% Non-Operating Income 1,354 1,608 -15.8% Income From Lease Rent waivers 1,238 - Total Income 21,171 24,962 -15.2% Employee Benefit Expenses 5,7
Slide 33: Financial Performance H1 FY21
ClubMahindra Financial Performance H1 FY21
Slide 34: H1 FY’21 Performance Trend
ClubMahindra H1 FY’21 Performance Trend Rs. In Crs Total Income EBITDA Margin PBT Margin 514 113 401 -21% 408 7 401 22.0% +1226 BPS 34.2% F<v 10.9% +917 BPS 20.1% H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 VO Resorts 33
Slide 35: H1 FY’21 Profit Growth
ClubMahindra H1 FY’21 Profit Growth Rs. In Crs Rs. In Crs PBT PAT fiv 82 +46% 61 +68% 56 36 H1 FY20 H1 FY21 H1 FY20 H1 FY21 34
Slide 36: Income Break Up – H1 FY’21
Sc Income Break Up – H1 FY’21 4 ClubMahlndra Rs. In Lakhs Half year ended Total Income H1 FY-21 H1 FY-20 YoY Income from Vacation Ownership 1 16,760 17,247 -2.8% ASF 14,834 14,106 5.2% Interest & Others 4,012 5,762 -30.4% Non-Operating Income 2,668 3,035 -12.1% Income From Lease Rent waivers 1,869 -
Slide 37: Profit & Loss Statement – H1 FY’21
4 Oubblehindra Profit & Loss Statement – H1 FY’21 Rs. In Lakhs Half year ended Particulars H1 FY-21 H1 FY-20 YoY Gr Revenue from Operations 36,280 48,409 -25.1% Non-Operating Income 2,668 3,035 -12.1% Income From Lease Rent waivers 1,869 - Total Income 40,817 51,444 -20.7% Employee Benefit Expenses
Slide 38: Summarized Balance Sheet
ClubMahindra Summarized Balance Sheet Rs. in Lakhs Description As at 30 Sep 2020 As at 31 March 2020 ASSETS Property, Plant and Equipment 2,09,429 2,08,178 Right of Use Asset (IND AS 116) 14,636 17,427 Trade receivables 1,59,643 1,68,188 Cash and cash equivalents (regrouped) 79,113 78,073 Deferred T
Slide 39: We Create and Sell Dream Holidays
HCRO We Create and Sell Dream Holidays HolidayMClub
Slide 40: 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 39 Holiday• Club
Slide 41: 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 42: Financial Performance
Financial Performance Ilolida 41 Holiday•Club
Slide 43: Comments Q2 FY20-21 - Operations
COMMENTS Q2 FY20-21 ❑ Operations The summer holiday season in Finland is from mid June till end August. This year the international borders were closed due to the pandemic. This has resulted in loss of international tourists while increasing domestic tourism in Finland. Our Spa Hotel operations resu
Slide 44: Comments Q2 FY20-21 - Revenue, Costs, Profits
COMMENTS Q2 FY20-21 ❑ Revenue ▪ HCRO has earned a revenue of 32.61 M€ in Q2 FY21 as compared to 40.43 M€ in Q2 FY20 down by 19% YoY. ❑ Cost control measures ▪ Significant cost control measures have been taken which resulted in reduction of 5.90 M€ during Q2 FY21, a 16% reduction YoY. ❑ Profits ▪ HCR
Slide 45: Turnover : Q2 2020-21
Turnover : Q2 2020-21 Euro Mn FY21 FY20 Particulars Q1 FY 21 Q2 FY 21 H1 FY 21 Q1 FY 20 Q2 FY 20 H1 FY 20 Timeshare 3.44 9.17 12.61 10.06 11.65 21.71 Spa Hotels 5.61 17.96 23.57 16.21 19.89 36.10 Renting 0.74 2.11 2.85 1.67 2.09 3.76 Real Estate Management 1.66 1.62 3.28 1.72 1.60 3.32 Villas 1.15 1
Slide 46: P&L Q2 2020-2021
P&L Q2 2020-2021 Euro Mn FY21 FY20 Particulars Q1 FY 21 Q2 FY 21 H1 FY 21 Q1 FY 20 Q2 FY 20 H1 FY 20 Turnover 12.74 32.61 45.35 37.00 40.43 77.43 Operating Profit / (Loss) -5.12 1.91 -3.21 -0.64 3.83 3.19 Less: Depreciations and impairments 1.35 1.35 2.70 1.45 1.44 2.89 (Add)/Less Financial (income)
Slide 47: Financial Performance Consolidated
ClubMahindra Financial Performance Consolidated
Slide 48: Segment Revenue
ClubMahindra Segment Revenue Rs. In Lakhs Quarter ended Half year ended Particulars Q2 FY'21 Q2 FY'20 H1 FY'21 H1 FY'20 - MHRIL 21,134 25,157 40,635 52,018 - HCRO 29,728 31,947 42,735 67,651 Total Segment Revenue 50,862 57,104 83,370 1,19,669 - Others 219 280 232 328 Revenue from Operations 51,081 5
Slide 49: Segment Profitability (PBT)
( I: IN ahindra Segment Profitability (PBT) Rs. In Lakhs Quarter ended Half year ended Particulars Q2 FY'21 Q2 FY'20 H1 FY'21 H1 FY'20 - MHRIL 4,567 2,827 8,117 5,695 - HCRO 310 1,400 (4,910) 829 PBT before Ind AS 116 & Consolidation adjustments 4,877 4,227 3,207 6,524 - Ind AS 116 Impact (308) (457
Slide 50: Consolidated Profit & Loss Statement
( Mal-tindra Consolidated Profit & Loss Statement Rs. In Lakhs Quarter ended Half year ended Particulars Q2 FY'21 Q2 FY'20 H1 FY'21 H1 FY'20 Income from Operations 48,137 55,567 77,540 1,16,700 Non-Operating Revenue 2,944 1,817 6,062 3,297 Highlights Q2 FY21 Total Income 51,081 57,384 83,602 1,19,99
Slide 51: Thank You!
/( INDIA'S "..1 fo' INDIA'S •••\ /f INDIA'S BEST •••• i f FAVOURITE i f MOST POPULAR NI 1, COMPANIES TO ‘,„11 RESORT /1# RESORT WORK FOR - O • Vit t TOP100.2020 et, t CHAIN te. 4 CHAIN e7 Hall:MY* A'NAgD X11 MACS TV.111. AMP D2019 GREAT PLACE 10 WORK INSTITUTE ClubMahindra Thank You!
Mahindra Holidays & Resorts India — Q2 FY21 Earnings Presentation on 6ix