Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q3 FY19 Earnings Presentation
42 slides from Mahindra Holidays & Resorts India's earnings presentation, Feb 8, 2019
Slide 1: ClubMahindra
ClubMahindra February 8, 2019 MHRIL/SE/ 2018-19/537 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 Scri
Slide 2: Investor Presentation
Slide 3: Disclaimer
Disclaimer ▪ This note has been prepared exclusively for the benefit and internal use of the recipient and does not carry any right of reproduction or disclosure. Neither this note nor any of its contents maybe used for any other purpose without the prior written consent of Mahindra Holidays & Resor
Slide 4: Contents
AP Sevrsermar Contents Unique Leadership Impact of Q3 FY19 Business Model Position m Transition to Results Vacation IND AS 115 Update Ownership
Slide 5: Business Model
Business Model Club Mahindra (CMH 25) Flagship Product Offering Target Profile of CMH 25 Member Product Portfolio Strategic Priorities Strengthen & Leverage Grow Member Base Brand Bliss for 50 CMH 25 Create Marquee resorts in year+ Age unexplored destinations Member Engagement group Drive Operationa
Slide 6: Sales Network and Revenue & Cost Model
Sales Network and Revenue & Cost Model Sales Network Cost Model • 117 branch offices, sales offices & channel partners • ASF funds maintenance, renovation of resorts & • Leads generated through Digital route, Referrals, member servicing Alliances, On-ground Events/Activities, Campaigns • Share of pu
Slide 7: Unique Business Model
Unique Business Model 6
Slide 8: Unique Business Model Status
Unique Business Model Zero Debt Status Unique Consistently High Strong Balance Sheet Business Occupancy Model 7
Slide 9: Unique Business Model - Strong Balance Sheet
Unique Business Model - Strong Balance Sheet IND AS 115 Deferred Strong Cash Receivables Strong Asset Revenue Position Base Rs. 5,196 Cr Rs. 521 Cr Rs. 1,792 Cr Rs. 1,792 Cr Provides Organic Growth Opportunity for 59 Resorts Visibility of can be met Inorganic Revenues without relying growth through
Slide 10: Unique Business Model - Consistently High Occupancy
Unique Business Model - Consistently High Occupancy 5,000 100% 85% 85% 82% 81% 4,000 80% 3,472 3,152 3,000 2,816 2,879 60% 2,000 40% 1,000 20% - 0% FY15 FY16 FY17 FY18 Room Inventory (Units) Occupancy % High occupancy in resorts at 80%+ even with growing Inventory 9
Slide 11: Unique Business Model - Zero Debt (Standalone) Status
Unique Business Model - Zero Debt (Standalone) Status Self-Funded Model Membership Fee from Used to Fund Capex requirements for Members Building New Resorts Room Inventory (Units) Cash & Equivalent (in Rs Crs) 4,000 3,472 3,540 600 521 3,152 470 2,816 2,879 500 3,000 400 2,000 300 265 200 1,000 84 1
Slide 12: Leadership Position in Vacation Ownership
Leadership Position in Vacation Ownership 11
Slide 13: Leadership Position in Vacation Ownership
Leadership Position in Vacation Ownership 2.47 Lakh+ Member Choice of 59 Full base Trusted Brand service resorts for Track record of over Members two decades Significant Recurring Income Member Engagement streams/Revenue Visibility 12
Slide 14: Resort Diversity
Resort Diversity Hill Stations Beaches Backwaters ▪ Manali, Shimla, Naldhera, Kandaghat ▪ Varca, Emerald Palms, Acacia Palms - ▪ Ashtamudi Goa ▪ Kumarakom ▪ Dharamshala, Kanatal, Binsar, Mashobra ▪ Cherai ▪ Poovar ▪ Mussorie, Naukuchiatal, Srinagar ▪ Pondicherry ▪ Allepey ▪ Munnar, Ooty, Kodaikanal,
Slide 15: Member Engagement In Resorts & Cities
Member Engagement In Resorts & Cities Dreamscapes Heart-to-Heart Curated Vacations Exchange Program • Wide variety of in-city • In-city meets include • Festivals & theme-based • Creating choice of experiences especially leisure & edutainment vacation experiences for destinations for curated for memb
Slide 16: Transition to IND AS 115
ClubMahindra Transition to IND AS 115 15
Slide 17: Transition to IND AS 115 – Impact on Revenue & Cost
Transition to IND AS 115 – Impact on Revenue & Cost Ind AS VO Income Ind AS VO Income 18 115 60% non refundable admission fee Recognized over the tenure of recognized upfront, 40% of Entitlement membership Fee deferred over tenure of membership 30% Ind AS Ind AS 115 Cost 18 Cost Ind AS 115 Direct Co
Slide 18: Transition to IND AS 115 – Illustrative Example
Transition to IND AS 115 – Illustrative Example As Per IND AS 18 (60:40) As Per IND AS 115 (Spread over 25 years) Particulars FY18 Particulars FY18 New Members New Members ~18,000 ~18,000 (Units) (Units) Avg. Realization Avg. Realization ~3.5 ~3.5 (Rs. Lakh) (Rs. Lakh) 60% Revenue Recognized in FY18
Slide 19: Transition to IND AS 115 – Illustrative Example
Transition to IND AS 115 –Illustrative Example As a result of Transition to IND AS 115, Deferred Revenue will be restated and significantly higher Would get Deferred Revenue restated as pertaining to period Deferred Revenue pertaining FY18 would be Rs. to period FY18 would be Rs. 604.8 Cr under 252
Slide 20: Transition to IND AS 115 – Key Takeaways
Transition to IND AS 115 – Key Takeaways ▪ Income recognized equally over the tenure of membership (4% per year for 25 year product) as against 60% upfront & 40% deferred in AS 18 ▪ Only incremental costs to obtain the membership are amortized over the tenure of membership ▪ Unit economics remains t
Slide 21: Operating Performance
Slide 22: Q3 FY19 Performance
Q3 FY19 Performance IND AS 18 Membership Margin Base Member Addition PBT Margin 3,984 20.6% Resort Occupancy Income Levels 200 bps Resort Income Occupancy YoY growth 81.9% Rs. 58 Cr 4.1% YoY growth 21
Slide 23: YTD FY19 Performance
YTD FY19 Performance IND AS 18 Membership Margin Base Member Addition PBT Margin 12,706 19.5% Resort Occupancy Income Levels 6.7% 80 bps Resort Income YoY growth Occupancy YoY growth 82.6% Rs. 165 Cr 3.2% YoY growth 22
Slide 24: Key Indicators
Key Indicators Key indicators (No) Q3 FY19 Q3 FY18 YoY Cumulative Member Base 247,716 229,643 7.9% Resort Details Q3 FY19 Q3 FY18 No of Resorts 59 53 No of Rooms 3,540 3,362 Occupancy % 82% 85% ARR (Rs) 4,176 4,505 23
Slide 25: Member Additions
Member Additions YTD Member Addition Trend YTD Cumulative Member Base +7% 12706 +8% 12380 11307 11904 247716 229643 211997 194738 7899 178483 YTD Dec’14 YTD Dec’15 YTD Dec’16 YTD Dec’17 YTD Dec’18 YTD Dec’14 YTD Dec’15 YTD Dec’16 YTD Dec’17 YTD Dec’18 24
Slide 26: Occupancy Trend
Occupancy Trend Q3 Occupancy 84% 85% 85% 81% 82% Q3FY15 Q3FY16 Q3FY17 Q3FY18 Q3FY19 25
Slide 27: Our growing International presence
Our growing International presence 40 destinations & growing…. UAE & Asia – 6 destinations Europe & US – 34 destinations •Bangkok -1 •Finland - 25 •Kuala Lumpur -1 •Sweden – 2 •Singapore -1 •Spain - 6 •Srilanka -1 •Orlando - 1 •Dubai - 1 •Bhutan - 1 26
Slide 28: Financial Performance
Slide 29: Income Trend
Income Trend VO Income Resort Income IND AS 18 In Crs In Crs +7% 583 +17% 539 545 209 190 444 173 165 390 132 FY15 FY16 FY17 FY18 YTD Dec 18 FY15 FY16 FY17 FY18 YTD Dec 18 ASF Income Interest & Others In Crs In Crs +12% 217 +14% 210 93 173 89 80 177 156 64 67 FY15 FY16 FY17 FY18 YTD Dec 18 FY15 FY16
Slide 30: Performance Trend
Performance Trend IND AS 18 Total Income EBITDA Margin PBT Margin In Crs +11% 24.8% 18.9% 19.5% 1,094 23.8% 24.0% 23.9% 24.2% 18.4% 1,090 17.4% 964 15.7% 808 843 FY15 FY16 FY17 FY18 YTD Dec 18 FY15 FY16 FY17 FY18 YTD Dec 18 FY15 FY16 FY17 FY18 YTD Dec 18 29
Slide 31: Income Break Up – Q3FY19
Income Break Up – Q3FY19 In Lakhs Ind AS 115 Ind AS 18 Ind AS 18 Growth Total Income Q3 FY19 Q3 FY19 Q3 FY18 YoY Income from Vacation Ownership 7,680 12,364 12,732 -2.9% ASF 6,703 6,214 5,431 14.4% Resort Income 5,838 5,838 5,608 4.1% Room 1,220 1,220 1,117 9.2% F&B 3,583 3,583 3,445 4.0% Holiday Ac
Slide 32: Income Break Up – YTD Dec’18
Income Break Up – YTD Dec’18 In Lakhs Ind AS 115 Ind AS 18 Ind AS 18 Growth Total Income YTD Dec’18 YTD Dec’18 YTD Dec’17 YoY Income from Vacation Ownership 23,038 38,982 38,078 2.4% ASF 19,231 17,665 15,864 11.4% Resort Income 16,489 16,489 15,971 3.2% Room 3,407 3,407 3,070 11.0% F&B 10,138 10,138
Slide 33: Profit & Loss Statement – Q3FY19
Profit & Loss Statement – Q3FY19 In Lakhs Ind AS 115 Ind AS 18 Ind AS 18 Growth Rs. Q3 FY19 Q3 FY19 Q3 FY18 YoY Revenue from Operations 23,606 27,211 26,080 4.3% Non-Operating Income 1,081 1081 503 114.9% Total Income 24,687 28,292 26,583 6.4% Employee Benefit Expenses 6,253 6,415 6,095 Finance Cost
Slide 34: Profit & Loss Statement – YTD Dec’18
Profit & Loss Statement – YTD Dec’18 In Lakhs Ind AS 115 Ind AS 18 Ind AS 18 Growth Rs. YTD Dec’18 YTD Dec’18 YTD Dec’17 YoY Revenue from Operations 68,000 81,137 76,804 5.6% Non-Operating Income 3,131 3131 2016 55.3% Total Income 71,131 84,268 78,820 6.9% Employee Benefit Expenses 18,342 19,673 17,
Slide 35: Ind AS 115 – Reconciliation for Q3FY19
Ind AS 115 – Reconciliation for Q3FY19 In Lakhs Quarter ended Dec Quarter ended December 31, 2018 (Unaudited) 31, 2017 (Unaudited) Sl. No Particulars Amount without As reported under Impact of Ind AS Amount without adoption of Ind AS IND AS 115 115 adoption of Ind AS 115 115 1. Revenue from Operatio
Slide 36: Ind AS 115 – Reconciliation for Q3FY19
Ind AS 115 – Reconciliation for Q3FY19 In Lakhs Contd.. Quarter ended Dec Quarter ended December 31, 2018 (Unaudited) 31, 2017 (Unaudited) Sl. No Particulars Amount without As reported under Impact of Ind AS Amount without adoption of Ind AS IND AS 115 115 adoption of Ind AS 115 115 8. Profit after
Slide 37: Ind AS 115 – Reconciliation for YTD Dec’18
Ind AS 115 – Reconciliation for YTD Dec’18 In Lakhs Nine Months ended Nine Months ended December 31, 2018 (Unaudited) December 31, 2017 (Unaudited) Sl. No Particulars Amount without Amount without Impact of Ind As reported adoption of Ind AS adoption of Ind AS AS 115 115 115 1. Revenue from Operatio
Slide 38: Ind AS 115 – Reconciliation for YTD Dec’18
Ind AS 115 – Reconciliation for YTD Dec’18 In Lakhs Contd.. Nine months ended Nine months ended December 31, 2018 (Unaudited) Dec 31, 2017 (Unaudited) Sl. No Particulars Amount without As reported under Impact of Ind AS Amount without adoption of Ind AS IND AS 115 115 adoption of Ind AS 115 115 8. P
Slide 39: Ind AS 115 – Key Balance Sheet Items
Ind AS 115 – Key Balance Sheet Items In Lakhs As at 31-Dec-18 As at 30-Sept-18 As at 31-Mar-18 Description (Ind AS 115) (Ind AS 115) (Ind AS 18) ASSETS Property, Plant and Equipments 199,668 196,686 96,774 Trade Receivables 179,165 176,551 143,396 Cash & Cash Equivalents 52,119 48,377 46,964 Deferre
Slide 40: Operating Cash continues to grow
Operating Cash continues to grow In Crs 332 201 266 Rs. 915 Crs Cumulative operating 116 Cash since FY16 FY16 FY17 FY18 YTD Dec 18 39
Slide 41: Strong Balance Sheet Position
Strong Balance Sheet Position In Crs 4,309 1,125 Land Assets Revalued 2,752 during Sep’18 & stands 2,539 871 2,251 161 167 at Rs. 1,125 Cr 1,865 157 682 717 107 745 666 1,792 Cash growing at a 1,396 1,434 healthy rate 1,265 1,066 470 521 26 26 84 265 2015 2016 2017 2018 YTD Dec 18 Ind AS 18 Ind AS 1
Slide 42: Thank You
Mahindra Holidays & Resorts India — Q3 FY19 Earnings Presentation on 6ix