Slide 1: Analysts / Investors Meet cover letter to exchanges
ITC Limited Virginia House 37 J. L. Nehru Road Kolkata 700 071, India Tel. : 91 33 2288 9371 Fax : 91 33 2288 4016 / 1256 / 2259 / 2260 24th July, 2023 The Manager The General Manager The Secretary Listing Department Dept. of Corporate Services The Calcutta Stock National Stock Exchange of BSE Ltd.
Slide 2: cc: Securities Exchange Commission
cc: Securities Exchange Commission Division of Corporate Finance Office of International Corporate Finance Mail Stop 3-9 450 Fifth Street Washington DC 20549 U.S.A. cc: Societe de la Bourse de Luxembourg 35A Boulevard Joseph II L-1840 Luxembourg
Slide 3: Proposed Demerger of Hotels Business Investor Presentation
Proposed Demerger of Hotels Business Investor Presentation 24th July, 2023 |1|
Slide 4: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements including those describing the Company’s strategies, strategic direction, objectives, future prospects, estimates etc. Investors are cautioned that “forward looking statements” are based on certain assumptions o
Slide 5: ITC Contributing to all sectors of the economy
ITC Contributing to all sectors of the economy Agriculture, Manufacturing & Services Leading FMCG Marketer Pre-eminent Hotel chain | Trailblazer in Responsible Luxury Foremost Agri Player Clear Market leader in Paperboards, Paper & Packaging 3 |3|
Slide 6: Hotels Business Overview
Hotels Business Overview |4|
Slide 7: ITC Hotels Investment-led Growth phase: 2003 to 2017
ITC Hotels Investment-led Growth phase: 2003 to 2017 • Prior to 2004, ownership of Hotels Business was split between ITC Ltd. and ITC Hotels Ltd. & its subsidiaries • ITC Hotels Ltd. (separate listed entity) & Ansal Hotels Ltd. merged with ITC Ltd. wef. 1st April, 2004 - Consolidation of the Hotels
Slide 8: ITC Hotels Strategy Refresh c.2018 Pivot to Asset Right
ITC Hotels Strategy Refresh c.2018 Pivot to Asset Right ASSET RIGHT CONTINUED DIGITAL FIRST CAPITAL EMPLOYER OF CHOICE INVESTMENT TO PRODUCTIVITY ENHANCE BRAND EQUITY • Bouquet of brands Key Differentiators • Smart Revenue • Sweating existing assets • D & I amongst best in catering to relevant • Res
Slide 9: Rapid Scale up of Hotels Business post Merger in 2004
Rapid Scale up of Hotels Business post Merger in 2004 Room Inventory Rapid scale up Revenue (in Rs cr.) CAGR: 11% Richer Mix Owned keys Managed keys 300 0 120 00 11600+ 250 0 2689 200 0 100 00 6223 1747 800 0 150 0 600 0 4472 100 0 400 0 2322 978 200 0 5377 500 2150 0 349 0 FY03 Current FY03 FY10 FY
Slide 10: ITC Hotels Group India's Pre-eminent Hospitality Chain
ITC Hotels Group India’s Pre-eminent Hospitality Chain 70+ Destinations | 120+ Hotels | 11600+ Rooms Luxury Upper Upscale Boutique Mid to Upscale Heritage ITC Grand Chola ITC Narmada Hotels that define the destinations |8|
Slide 11: Iconic Hotels
Iconic Hotels ITC GRAND CHOLA, CHENNAI ITC KOHENUR, HYDERABAD ITC ROYAL BENGAL, KOLKATA ITC MAURYA, DELHI ITC MARATHA, MUMBAI ITC GRAND GOA ITC NARMADA, AHMEDABAD ITC GRAND BHARAT, GURUGRAM |9|
Slide 12: Globe's finest Indian & India's finest Global Cuisine
Globe’s finest Indian & India’s finest Global Cuisine | 10 |
Slide 13: Responsible Luxury / Transition 2030
‘Responsible Luxury’ Integrating world-class Luxury with Sustainability ‘Transition 2030’ 22 LEED Platinum certified Keeping Ahead of the sustainability Curve hotels; Largest chain in the world to achieve this feat Net Zero Carbon Goal LEED Zero Carbon status for all owned hotels to exceed World’s f
Slide 14: Best-in-class Digital Architecture
Best-in-class Digital Architecture Best in Class Mobile App / Brand.com Frictionless Guest Experience • Industry Leading Features • In-Room Automation* • Native | Progressive Web App • Seamlessly Integrated Online - Offline Journey Superior Loyalty Platform Sharper Targeting Using Data Lake • Instan
Slide 15: Synergistic Growth
Synergistic Leveraging institutional strengths for Source of sustainable competitive advantage Growth Competitive Advantage for ITC FMCG Businesses Corporate Brand Robust Governance, High quality Cuisine Knowledge: Packaged Foods & Food Tech reputation Systems & Processes Talent Pool Globally acclai
Slide 16: Winner of several Marquee Awards over the Years
Winner of several Marquee Awards over the Years 2022 2022 2022 2023 2023 Best Hotel for Best Luxury Hotel Best New Hotel Weddings Best South Indian Best Takeaway Chain (Domestic) (Domestic) – Fine Dining Restaurant category Editor’s Choice Award Dakshin ITC Hotels ITC Narmada ITC Grand Goa ITC Kakat
Slide 17: Hospitality Industry poised for Strong Growth
Hospitality Industry poised for Strong Growth | 15 |
Slide 18: Hospitality Industry poised for strong growth
Hospitality Industry poised for strong growth Growing societal aspirations Infrastructure & Tourism Thrust Strong industry recovery Govt’s Thrust on Infrastructure & Tourism Low Room Supply Penetration Next 5 yr. Supply CAGR 5% Vs. Demand CAGR >7% Source: HVS Anarock Favourable Macros Median Age amo
Slide 19: ITC Hotels Poised for Next Horizon of Growth
ITC Hotels Poised for Next Horizon of Growth | 17 |
Slide 20: Proposed Demerger of Hotels Business
Proposed Demerger of Hotels Business 1 Strategic Rationale 2 Transaction Summary 3 Proposed Demerger | 18 |
Slide 21: Strategic Rationale
Strategic Rationale 1 Hotels Business has matured over the years; well poised to chart its own growth path as a separate entity - Asset Right strategy to accelerate growth whilst continuing to leverage ITC’s institutional strengths & brand equity 2 Creation of a separate Pure Play Hotels entity to e
Slide 22: Transaction Summary
Transaction Summary Proposed Transaction Transaction Highlights Transaction Perimeter1 Key Approvals Required ▪ Board accorded in-principle approval ▪ ITC shareholders to get direct stake ▪ Assets, liabilities, contracts and ▪ Proposed transaction is subject to final to demerge the Hotels Business o
Slide 23: Proposed Demerger
Proposed Demerger Proposed Demerger Resultant Structure Shareholders Equity Shares Shareholders appx. 60% 100% 100% 100% appx. Resulting 40% Resulting ITC ITC Company Company FMCG, Cigarettes, FMCG, Cigarettes, Paperboards & Hotel Business Paperboards & Hotel Business Packaging, Agri, IT Demerger Pa
Slide 24: Thank You
ITC HOTELS RESPONSIBLE LUXURY THANK YOU