Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company Limited (IHCL) — Investor Presentation (March 2020)
54 slides from Indian Hotels's investor presentation, March 2020
Slide 1: Corporate Presentation March 2020
I Corporate Presentation March 2020
Slide 2: CEO message on reimagining the company
II “Your Company is reimagining itself by leveraging its strong brand equity to multiply its portfolio while aligning to high-growth segments. This includes manoeuvering excellence and reinvigorating the portfolio across all brands.” P U N E E T C H H AT WA L Managing Director and Chief Executive Of
Slide 3: Table of Contents
TA B L E O F C O N T E N T S W H AT W I L L YO U FIND INSIDE? 03 Knowing IHCL 17 Our brands 27 Road ahead 34 Creating value for all stakeholders 39 Growing responsibly 44Financial performance
Slide 4: Knowing IHCL
2 KNOWING IHCL
Slide 5: Legacy of 150+ years: our parentage
our parentage 3 D R A W I N G I N S P I R AT I O N F R O M A S T R O N G PA R E N TA G E “in a free enterprise, the community is not just another stakeholder in the business, but is in fact the very purpose of its existence.” J A M S E T J I TATA Founder Of The Tata Group, Chairman (1868–1904) Legac
Slide 6: Leadership position in multiple industries
our parentage 4 L E A D E R S H I P P O S I T I O N I N M U LT I P L E INDUSTRIES Wholesale voice provider Tea company IT services company Steel maker Integrated power, In room Largest hospitality Manufacturer & retailer of renewable energy company air conditioners company watches, jewellery, eyewea
Slide 7: South Asia's largest hospitality company
about us 5 S O U T H A S I A’ S L A R G E S T H O S P I TA L I T Y C O M PA N Y W I T H A L E G A C Y O F 115 Y E A R S Our diversified portfolio Pioneers in creating destinations Geography (Hotels*) Geography (Keys*) 100+ Locations 4 Continents 21 179 3,600 21,500 Unique F&B concepts across 400+ Re
Slide 8: Our purpose and key financials
about us 6 ` 4,596 Cr Consolidated revenues 24% Our Purpose To create value by operating the best-in-class portfolio of Consolidated EBITDA margin hospitality brands in India and select overseas destinations P U N E E T C H H AT WA L Managing Director and Chief Executive Officer ` 354 Cr Profit Afte
Slide 9: Our purpose and values
our purpose and values 7 OUR VALUES ARE INGRAINED IN EVERYTHING WE DO is built on three broad pillars TRUST AWARENESS JOY
Slide 10: Our brand portfolio across the value chain
our brand portfolio 8 OUR BRANDS COVER THE ENTIRE SPECTRUM O F T H E H O S P I TA L I T Y VA L U E C H A I N LUXURY SELECT HOTELS UPSCALE LEAN LUXE SERVICE RETAIL VOLUME CATERING
Slide 11: Our journey so far
our journey so far 9 R E D E F I N I N G H O S P I TA L I T Y OV E R T H E PA S T 116 Y E A R S 1899 THE INDIAN 2019 – TAJ ARAVALI HOTELS COMPANY RESORT & SPA, LIMITED (IHCL) IS UDAIPUR INCORPORATED –TAJ THEOG RESORT & SPA, SHIMLA 1903 1982 1998 2010 2015 –TAJ RISHIKESH RESORT & SPA, TAJ MAHAL PALAC
Slide 12: Our board of directors
our board of directors 10 LED BY A BOARD WITH DIVERSE E X P E R I E N C E A N D C A PA B I L I T I E S C M C C M M M M M N. CHANDRASEKARAN PUNEET CHHATWAL NASSER MUNJEE VENKATARAMANAN Chairman Managing Director & Non-executive ANANTHARAMAN Chief Executive Officer Independent Director Non-executive I
Slide 13: Our executive leadership team
our executive leadership team 11 A H I G H LY E X P E R I E N C E D EXECUTIVE LEADERSHIP TEAM PUNEET CHHATWAL DR. P.V. RAMANA GIRIDHAR SANJEEVI ROHIT KHOSLA PRABHAT VERMA Managing Director & MURTHY Executive Vice President & Executive Vice President – Executive Vice President – Chief Executive Offic
Slide 14: Our strengths: customer connect and pricing power
our strengths 12 STRONG CUSTOMER CONNECT EMPOWERING US T O B E C O M E B E T T E R E V E R Y D AY Strong brand equity Taj hotels ranked 1st in India for customer experience** Strong presence in domestic market* Strong pricing power 179 Hotels in India across 26 states/UTs Average room rates (`) 8,91
Slide 15: Pioneering destinations
our strengths 13 P I O N E E R I N G D E S T I N AT I O N S Kerala Rajasthan Goa Andamans
Slide 16: Our presence worldwide
our presence 14 DELIGHTING CUSTOMERS ACROSS THE WORLD & ENTERING NEW MARKETS USA San Francisco New York 179 Hotels, 80+ Locations Asia Middle East Nepal Dubai Thimpu Makkah Langkawi Sri Lanka Maldives India Africa UK Lusaka London Cape Town
Slide 17: Our sales and distribution network
our distribution network 15 OUR THRIVING SALES & 500+ Professionals on property DISTRIBUTION NETWORK SERVES NEW AND EXISTING CUSTOMERS WORLDWIDE 12 Global sales offices worldwide*
Slide 18: Our Brands
16 OUR BRANDS
Slide 19: Taj: Authentic, Iconic, Timeless
our brands 17 AUTHENTIC, ICONIC, TIMELESS 85 12,800 Umaid Bhawan Palace, Jodhpur Hotels Rooms Inspired by its Indian heritage and traditions, Taj delivers world-class hospitality that is distinctively noble.
Slide 20: Our palace properties
our brands 18 O U R PA L A C E P R O P E R T I E S : P R O V I D I N G R O YA L E X P E R I E N C E S The Taj Mahal Palace Umaid Bhavan Palace Taj Lake Palace Taj Falaknuma Palace
Slide 21: Our palace properties
our brands 19 O U R PA L A C E P R O P E R T I E S : P R O V I D I N G R O YA L E X P E R I E N C E S Rambagh Palace Taj Nadesar Palace Taj Jai Mahal Palace Taj Usha Kiran Palace
Slide 22: Taj Safaris
our brands 20 TA J S A FA R I S : B R I N G I N G YO U C L O S E R T O N AT U R E Mahua Kothi Banjaar Tola Pashan Garh Baghvan Pench Meghauli Serai
Slide 23: Curated, distinct, hyperlocal
our brands 21 C U R AT E D , D I S T I N C T, H Y P E R L O C A L 15 Hotels 1,400 Rooms Having resounding, storytelling legacies with a unique character within the structure/location a theme or an idea that is central to its definition and local experience.
Slide 24: Vivanta: Spirited, Ambitious, Dynamic
our brands 22 SPIRITED, AMBITIOUS, DYNAMIC 30Hotels 4,400 Rooms Vivanta represents a collection of sophisticated upscale hotels and resorts that cater to both business and leisure travellers. It provides experiences that celebrate individuality through a blend of exclusivity and agility.
Slide 25: Ginger: Refreshing, Liberating, Lively
our brands 23 R E F R E S H I N G , L I B E R AT I N G , L I V E LY 70 Hotels 6,500 Rooms Ginger Hotels, IHCL's revolutionary concept in hospitality, defining the lean luxe segment in India. These hotels are designed and modelled to provide refreshing, reviving and seamless experiences to guests.
Slide 26: Leveraging brands beyond accommodations
our brands 24 LEVERAGING OUR BRANDS TO CAPTURE O P P O R T U N I T I E S B E YO N D A C C O M M O D AT I O N S 400+ 72 17 Bars & restaurants Spas Boutiques 48 Salons* 7Clubs 20 Properties** * Including Taj salons ** Including pipeline
Slide 27: Walk the road less travelled
our brands 25 WALK THE ROAD LESS TRAVELLED 20 Bungalows 14 Operational 4 Locations Bungalows
Slide 28: Our F&B innovation
our brands 26 O U R F & B I N N O VAT I O N Bringing the best from our kitchens to your home. Signature dishes Easy to Sustainable Safety and and best sellers order packaging hygiene ensured
Slide 29: Elevating the air catering experience
our brands 27 E L E VAT I N G T H E A I R C AT E R I N G E X P E R I E N C E # 1 Undisputed market leader in 34% Market share in India 6Units 40+ Airlines handled Indian air catering business (domestic & international)
Slide 30: Road Ahead
28 ROAD AHEAD
Slide 31: Capturing macro opportunities: turning cycle
capturing macro opportunities 29 W E L L P O I S E D T O C A P I TA L I S E O N EMERGING OPPORTUNITIES TURNING CYCLE OF THE HOTELS INDUSTRY Demand Rising Enhanced growth → → occupancies real estate outpacing & RevPARs value supply
Slide 32: Our strategy: Aspiration 2022
our strategy 30 O U R S T R AT E G Y I S A I M E D AT A C H I E V I N G H I G H E R S C A L E A N D C O N S I S T E N T P R O F I TA B I L I T Y 2 02 N2 IO AT ICONIC AND PIR PROFITABLE HOSPITALITY “aspiration 2022 is based on a promise to AS COMPANY work together to create greater enterprise value,
Slide 33: The three Rs driving Aspiration 2022
drivers of our strategy 31 T H E T H R E E ‘ R ’s D R I V I N G A S P I R AT I O N 2022 RE-STRUCTURE RE-ENGINEER RE-IMAGINE Scale Margins Brandscape Sell Technology Portfolio Simplify People Excellence
Slide 34: Our focus on digital
our focus on digital 32 PA R T N E R I N G O U R C U S TO M E R S I N T H E I R D I G I TA L J O U R N E Y 10 Mn+ 2 Mn Unique visitors to the website Social media users >95% Customer engagement 100% Increase in mobile web revenue since 2016
Slide 35: Robust signings reflect sizeable prospects
signings & future pipeline 33 ROBUST SIGNINGS REFLECT OUR SIZEABLE PROSPECTS Taj Connemara, Chennai FY 2019-20: 29 New signings* (3,736 keys) Taj: Agra 239 Jaipur 119 Shillong 100 Dwarka 98 Udaipur 65 Haridwar 35 Noida 261 Mumbai 371 Ahmedabad 315 Gorakhpur 110 Kalinganagar 93 Jaipur 250 Trivandrum
Slide 36: We have a healthy pipeline
signings & future pipeline 34 W E H AV E A H E A LT H Y P I P E L I N E Our approach towards new development New inventory pipeline (keys) Re-imagining a smart approach S M A R T 2,600 350 Strategic Margin Asset Relationships Tracking Enhancement Management 1,200 2,100 Taj Connemara, Chennai * Numbe
Slide 37: Creating value for all stakeholders
35 C R E AT I N G VALUE FOR ALL S TA K EH O L D ER S
Slide 38: Customer initiatives
customer initiatives 36 BUILDING A REWARDING AND LONG LASTING BOND WITH CUSTOMERS Customer loyalty revenues up Membership base up 29% Taj InnerCircle 40% Taj Experiences Gift Card Warmer Welcomes Timeless Weddings
Slide 39: People initiatives
people initiatives 37 F O S T E R I N G A L L- R O U N D DEVELOPMENT OF OUR PEOPLE 8 time Gallup th 32,000+ People* 35.5 Average age of employees 7.8 Average years of experience Great Workplace Award winner 16.4% Women employees 80% Employee retention rate 1:1.9 Employee to room ratio *Includes TajS
Slide 40: Partnerships and alliances
partnerships & alliances 38 PARTNERING AHE AD, GROWING TOGETHER Development support to partners Non-development partners Pre-opening support Google 360 • To set up and launch the hotel • Gives a total view of our web traffic across all our digital platforms Central materials group Shangri-La • Provi
Slide 41: Trusted by institutional investors
investors 39 TRUSTED BY INSTITUTIONAL INVESTORS Shareholding pattern(%)* 14 41 11 34 Tata Group DII FII Retail As of 31st March 2020 *
Slide 42: Growing Responsibly
40 GROWING R E S P O N S I B LY
Slide 43: Corporate social responsibility vision
corporate social responsibility 41 STRENGTHENING OUR COMMUNITY CONNECT FURTHER VISION Give back to target communities & geographies through CSR & volunteering Promote livelihoods Support neighborhoods Welfare Environment stewardship Upskill youth Unique art, culture & heritage Taj Public Service Wel
Slide 44: Creating measurable impact on our communities
corporate social responsibility 42 C R E AT I N G M E A S U R A B L E IMPAC T ON OUR COMMUNIT Y LIVELIHOODS NEIGHBOURHOODS W E L FA R E • Training 1,100+ youth annually at 14 • 3 heritage sites supported • Contributed ` 1 crore+ for Kerala Taj-Tata Strive Skill Training Centers and Kodagu relief • 4
Slide 45: Enhancing our sustainability quotient
sustainability 43 E N H A N C I N G O U R S U S TA I N A B I L I T Y Q U O T I E N T 8.79 Mn kL 25% 30.97 Water recycled in 2019-20 Share of renewable CHG emissions intensity 78 EarthCheck certified energy mix (kg CO2-e/guest night) in 2019-20 hotels in 2019-20
Slide 46: Awards and accolades
awards & accolades 44 MOMENTS WE TREASURE: RECOGNISED FOR OUR BEST PRACTICES ACROSS DOMAINS Leading by example People practices Making a difference
Slide 47: Financial Performance
45 FINANCIAL PERFORMANCE
Slide 48: FY20: Scoring high on all parameters
FY19/20 performance 46 F Y20: SCORING HIGH ON ALL PAR AMETERS 23.9%EBITDA Margin, ` 4,596Cr Revenues, ` 1,100Cr EBITDA, ` 354Cr PAT, up 406 bps up 0% y-o-y up 20% y-o-y up 24% y-o-y ** Excludes RCL
Slide 49: Improving trajectory of consolidated performance
five year performance (consolidated) 47 IMPROVING TRAJECTORY OF C O N S O L I DAT E D PE R F O R M A N C E Significant potential to scale up revenues and profitability Revenues (`/crores) PAT(`/crores) 354 4,596 300 4,595 4,000 4,165 287 4,123 4,076 200 3,000 100 101 2,000 0 (231) -100 (63) 1,000 -2
Slide 50: Consolidated EBITDA margin and net debt to EBITDA
five year performance (consolidated) 48 IMPROVING TRAJECTORY OF C O N S O L I DAT E D PE R F O R M A N C E Focus on driving cost efficiencies Maintain optimal debt levels EBITDA margin (%) Net debt to EBITDA (x) 24 8.0 24 6.47 18 20 6.0 18 4.74 16 16 12 4.0 2.58 2.11 1.74 6 2.0 0 0 FY16 FY17 FY18 FY
Slide 51: Steady growth in standalone financials
five year performance (standalone) 49 STEADY GROWTH IN S TA N DA LO N E FI N A N C I A L S Gradual improvement in revenue and bottom-line Revenues (`/crores) PAT (`/crores) 500 2,878 2,871 2,500 2,639 400 2,460 2,374 401 2,000 300 1,500 264 200 1,000 148 100 143 500 84 0 0 FY16 FY17 FY18 FY19 FY20 F
Slide 52: Standalone EBITDA margin and net debt to EBITDA
five year performance (standalone) 50 STEADY GROWTH IN S TA N DA LO N E FI N A N C I A L S Resilient margins Keeping leverage at comfortable levels EBITDA margin (%) Net debt to EBITDA (x) 3.78 40 4 3.41 31 30 29 3 26 23 1.99 22 1.83 20 2 1.57 10 1 0 0 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY
Slide 53: Disclaimer
DISCLAIMER This presentation contains forward-looking statements within the meaning of applicable securities laws. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. Forward-looking statements are not guaran
Slide 54: corpcomm@ihcltata.com
52 corpcomm@ihcltata.com IHC LTATA .COM
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