Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Motilal Oswal 19th Annual Global Investor Conference 2023
46 slides from Indian Hotels's conference presentation, Aug 22, 2023
Slide 1: Aspiration x Execution = Performance
ASPIRATION X EXECUTION = PERFORMANCE Motilal Oswal 19th Annual Global Investor Conference, 22nd August, 2023
Slide 2: India Growth Story: Favourable Macro-Economic Tailwinds
INDIA GROWTH STORY FAVOURABLE MACRO-ECONOMIC TAILWINDS Services Economy Stable Favorable Demographics Interest Rates Higher 80 Million Passport Discretionary Income Holders with rising level of purchasing power MACRO TAILWINDS Source: S&P Global, FICCI Report, Equity Research Reports 2
Slide 3: India Growth Story: Rising Per Capita Income
INDIA GROWTH STORY RISING PER CAPITA INCOME India’s Per Capita GDP (in USD) – to more than DOUBLE in ten years 5,242 Rising Per Capita Income leading to surge in Disposable Income, 2,278 Driving Higher 1,460 Discretionary Spends. 270 301 451 1982 1992 2002 2012 2022 2032 INDIA POISED TO BECOME THE 3
Slide 4: India Growth Story: Government Focus on Infrastructure
INDIA GROWTH STORY GOVERNMENT FOCUS ON INFRASTRUCTURE Developing Tourism in 80 New Airports Mission Mode Expected in next 5 years US$ 1 Trillion 45 Projects Direct Contribution of tourism and Sanctioned under hospitality industry to GDP by 2047 PRASAD Scheme e-Visa Facility for US$ 1.5 Trillion 165
Slide 5: Indian Hospitality Upcycle to Continue
INDIAN HOSPITALITY UPCYCLE TO CONTINUE Hotel Demand Grew By Rooms Supply Grew By 11.1% 4.5% (vs. FY20) IN FY23, (vs. FY20) IN FY23, Growth In All Key Supply Growth To Remain Markets Tepid DEMAND GROWTH TO CONTINUE OUTPACING SUPPLY Source: STR 5
Slide 6: Indian Hospitality Key Demand Drivers
INDIAN HOSPITALITY 5 KEY DEMAND DRIVERS G20 Miss World Pageant International Travel Cricket World Cup New Destinations 6
Slide 7: IHCL Well-Placed to Benefit from Industry & Macro Tailwinds
IHCL WELL-PLACED TO BENEFIT FROM INDUSTRY & MACRO TAILWINDS India Growth Story MACRO-ECONOMIC Hospitality Upcycle, Strong Tailwinds HOSPITALITY INDUSTRY Industry leading Brandscape, Portfolio, Pipeline, Profitability 7
Slide 8: IHCL: A Story of Aspiration, Execution & Performance
IHCL A STORY OF ASPIRATION, EXECUTION & PERFORMANCE ASPIRATION TO RESET DURING SIGHTS ON THE EXECUTION COVID-19 FUTURE CONSISTENT EMERGING AHVAAN PERFORMANCE STRONGER 2025 8
Slide 9: We Promised Profitability, We Delivered Record Performance
WE PROMISED PROFITABILITY, WE DELIVERED RECORD PERFORMANCE 9
Slide 10: Record Financial Performance Achieving Key Milestones
RECORD FINANCIAL PERFORMANCE ACHIEVING KEY MILESTONES ₹ 11,000 Crore ₹ 1,000 Crore ₹ 1,000 Crore ₹ 50,000 Crore Enterprise Consol. Free Cash Market Revenue PAT Flows Capitalization 1.5X 2.8X 3.5X 2.5X PRE-COVID LEVEL 10
Slide 11: Underpinned by Resilient Balance Sheet, Strong FCF
UNDERPINNED BY Resilient Balance Sheet, Strong FCF FROM NET DEBT TO NET CASH STRONG REBOUND IN FREE CASH FLOWS 987 1,017 98 Net Cash Positive 290 -1,915 -92 -870 -3,110 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 19-20 FY 20-21 FY 21-22 FY 22-23 ₹ /crores ₹ /crores 11
Slide 12: We Promised a Re-imagined Brandscape, We Delivered Performance Across Brands
WE PROMISED A RE-IMAGINED BRANDSCAPE, WE DELIVERED PERFORMANCE ACROSS BRANDS 12
Slide 13: We Continued to Invest Strongly in Brand-Building
WE CONTINUED TO INVEST STRONGLY IN BRAND-BUILDING 13
Slide 14: Taj Ranked Strongest Brand in India
paceeeeeeeeel Sd, bt TAJ Ranked Once Again as STRONGEST BRAND IN INDIA ACROSS SECTORS & INDUSTRIES By Brand Finance’ 2023 ¢ 2022 + 2020
Slide 15: World's Strongest Hotel Brand
WORLD’S STRONGEST HOTEL BRAND 2021, 2022 WORLD’S4th4th STRONGEST HOTEL BRAND 2023 2023 15
Slide 16: Rambagh Palace Rated World's #1 Hotel by TripAdvisor
RAMBAGH PALACE RAMBAGH PALACE RATED WORLD’S #1 HOTEL RATED WORLD’S #1 HOTEL BY TRIPADVISOR Source Source : 2023 : 2023 Travellers’ Travellers’ Choice Choice Awards Awards byby TripAdvisor TripAdvisor 16
Slide 17: Focus on F&B: Scaling-Up Brands, Introducing New Concepts
FOCUS ON F&B SCALING-UP BRANDS, INTRODUCING NEW CONCEPTS SCALING-UP EXISTING BRANDS Delhi, Bhopal, Jaipur Delhi, Bhopal, Jaipur, Bangalore Cape Town, Dubai, London Mumbai, Dubai, Kerala, Kolkata INTRODUCING NEW CONCEPTS Mumbai, Goa Goa, Bangalore Goa Mumbai, Delhi, Bangalore 17
Slide 18: New Businesses Well Geared to Scale-Up
NEW BUSINESSES WELL GEARED TO SCALE-UP ₹ 170 Crore GMV Since Inception 125+ Properties across 40 Outlets (50%: Ginger) 50+ Presence Across Locations 19 Cities 18
Slide 19: We Unleashed the Power of All Brands
WE UNLEASHED THE POWER OF ALL BRANDS Enterprise Revenue (₹ Crores) FY 2017-18 FY 2022-23 4600 8000 1800 1800 200 360 420 640 IHCL Enterprise Revenue 7,000 11,000 Note: Rounded off-values 19
Slide 20: We Promised Growth, We Delivered Unprecedented Expansion
WE PROMISED GROWTH, WE DELIVERED UNPRECEDENTED EXPANSION 20
Slide 21: Development Strategy: Asset SMART
DEVELOPMENT STRATEGY ASSET SMART S M A R T Margin Asset Strategic Enhancement Management Relationships Tracking 21
Slide 22: Industry Leading Portfolio, Pipeline
INDUSTRY LEADING PORTFOLIO, PIPELINE PORTFOLIO OF HOTELS SHIFT IN 190 80 PORTFOLIO MIX Operational + Pipeline = 270 50:50 Owned V/S Managed 101 83 86 As on 31st July 2023
Slide 23: Portfolio Growth
PORTFOLIO GROWTH NO. OF HOTELS 175 187 200+ 190 149 158 165 145 73 80 56 60 30 42 20 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Operational Pipeline (YTD 31st July) (Projection) 101 86 83 50 59 46 Note: Including pipeline
Slide 24: Highest Signings in the Country by Any Operator in 2022
HIGHEST SIGNINGS IN THE COUNTRY BY ANY OPERATOR IN 2022 NO. OF HOTEL SIGNINGS 36 29 22 19 17 12 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 (YTD 31st July) #2 #1 #1 #1 #1 Source: HVS Anarock India Hospitality Review 2022
Slide 25: Highest Number of Openings: 50+ Hotels in Five Years
HIGHEST NUMBER OF OPENINGS: 50+ HOTELS IN FIVE YEARS NO. OF HOTELS OPENED 20+ 16 12 13 7 5 5 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 (YTD 31st July) Projection 25
Slide 26: We Promised Iconic Hospitality, We Delivered World-Class Customer Centricity
WE PROMISED ICONIC HOSPITALITY, WE DELIVERED WORLD-CLASS CUSTOMER CENTRICITY 26
Slide 27: Excellence - Best NPS Scores & Reviews Globally
EXCELLENCE - BEST NPS SCORES & REVIEWS GLOBALLY NPS Online Ratings 70 67.8 68.6 68 66 64 62 60.3 60 96.32 85.52 91.28 TAJ* 58 56 Peer Set Avg. 2nd Best TAJ* NPS Peer Set 86.92 82.56 87.42 Brands in the NPS subscriber base: Mandarin Oriental, Fairmont, Pullman, Sofitel, Grand Mercure, Aman, Movenpick
Slide 28: Loyalty Re-imagined: Tata Neu
LOYALTY RE-IMAGINED TATA NEU 4.6 Mn Total Members (↑ 130% Vs FY19-20) ₹ 2,200 Cr+ Loyalty Led Revenues Award-winning Enhanced Scale, (↑ 83% Vs FY19-20) Signature loyalty Efficiency and Customer program of IHCL Engagement 20% contribution to IHCL Enterprise Revenues 28
Slide 29: Integrated Marketing Campaigns
INTEGRATED MARKETING CAMPAIGNS Industry-Leading Campaigns | Comprehensive Calendar | Brand- First Outreach Cyber Monday Urban Getaways Woyage Dekho Apna Desh Valentine’s Day 4D - Driveable Holidays Innergise Azadi ka Amrit Mahotsav Suite Surprises 29
Slide 30: Enabled by Focus on Culture & ESG
ENABLED BY FOCUS ON CULTURE & ESG 30
Slide 31: Living the IHCL Values
LIVING THE IHCL VALUES TATA VALUES VALUES Excellence Trust Awareness Joy Integrity Unity Pioneering Responsibility 31
Slide 32: Culture of Camaraderie Celebrating Spirit of Tajness
CULTURE OF CAMARADERIE CELEBRATING SPIRIT OF TAJNESS OBJECTIVES KEY ELEMENTS OF THE DAY Looking back at our journey since Leaders Speak March 24, 2020 Memorial Service Resilience, Responsiveness and Resurgence Special Meals Engaging Activities A day of gratitude 32
Slide 33: Culture of Responsible Business
CULTURE OF RESPONSIBLE BUSINESS PRESERVE PROMOTE Heritage & Brand Environmental Stewardship PROGRESS PROMISE Sustainable Growth Social Responsibility PA R T N E R PRUDENT Transformation Corporate Governance 33
Slide 34: Culture of Responsible Business: 2030 Goals
CULTURE OF RESPONSIBLE BUSINESS 2030 GOALS 100% 100,000 50% 100% Waste Water Youth Energy from Hotels Recycled / Reused Skilled for Livelihood Renewable Sources EarthCheck Certified 100% 100% 100% Hotels go Beyond Adoption of UNESCO’s Intangible Business Meetings & Single-Use Plastic Free Cultural H
Slide 35: Progressing Well on Paathya
PROGRESSING WELL ON PAATHYA 2030 TARGETS Waste Waste Water Energy All hotels to provide Skilling 100% elimination of 100% operating hotels 100% water 50% energy use to EV charging stations Empowering livelihoods single-use plastic will have an organic recycling be from renewables of 100,000 youth wa
Slide 36: Taj Mahal Palace, Mumbai 100% Green
TAJ MAHAL PALACE, MUMBAI 100% GREEN 36
Slide 37: The Result: Delivering Responsible Profitable Growth
THE RESULT: DELIVERING RESPONSIBLE PROFITABLE GROWTH 37
Slide 38: Journey of Financial Turnaround – Consolidated P&L
JOURNEY OF FINANCIAL TURNAROUND – CONSOLIDATED P&L PARTICULARS FY FY FY FY FY FY FY FY FY FY FY FY FY (₹ CR) 22-23 21-22 20-21 19-20 18-19 17-18 16-17 15-16 14-15 13-14 12-13 11-12 10-11 REVENUE 5,949 3,211 1,740 4,596 4,595 4,165 4,076 4,123 4,287 4,126 3,804 3,515 2,898 EBITDA 1,943 560 (197) 1100
Slide 39: Sustained Performance: Best-Ever Q1
SUSTAINED PERFORMANCE BEST-EVER Q1 ↑ 22% Enterprise Revenue ₹ 2,840 Crore ₹ 1,516 Crore ↑ 17% Enterprise Revenue Consol. Revenue Consol. Revenue INCREASE ↑ 13% OVER Q1 FY23 Consol. EBITDA ₹ 459 Crore ₹ 222 Crore Consol. EBITDA Consol. PAT ↑ 31% Consol. PAT 39
Slide 40: Asset Light & High Margin Focus - Management Fees
ASSET LIGHT & HIGH MARGIN FOCUS - MANAGEMENT FEES 550+ 399 400+ AHVAAN 2025 213 204 213 POTENTIAL UPDATED ₹/ Crores 17-18 18-19 19-20 22-23 AHVAAN 2025 UPDATED POTENTIAL POTENTIAL Rapid increase in hotels under management, to fuel High Flow Through Management Fee Growth 40
Slide 41: Significant Increase in Consolidated ROCE %
SIGNIFICANT INCREASE IN CONSOLIDATED ROCE % 13 8 7 5 2017-18 2018-19 2019-20 2022-23 41
Slide 42: Enterprise Performance & Potential
ENTERPRISE PERFORMANCE & POTENTIAL ~7,000 ~11,000 ~15,000 2017-18 2022-23 AHVAAN 2025 Potential ₹ Crores 42
Slide 43: Well Positioned for the Future: AHVAAN 2025
WELL POSITIONED FOR THE FUTURE AHVAAN 2025 43
Slide 44: We Promise, and We Will Deliver
WE PROMISE, AND WE WILL DELIVER 44
Slide 45: Aspiration x Execution = Performance
ASPIRATION X EXECUTION = PERFORMANCE Motilal Oswal 19th Annual Global Investor Conference, 22nd August, 2023
Slide 46: Disclaimer
Disclaimer This presentation contains selected information about the activities of the Company and the Group as at the date of this presentation. The information in this document have been collected with the purpose to provide interested parties with information about the Group including but not lim
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