Indian Hotels Co. Ltd. · NSE:INDHOTEL

Indian Hotels — The Indian Hotels Company — Investor Presentation (February 2020)

28 slides from Indian Hotels's investor presentation, February 2020

  1. Slide 1: Investor Presentation February 2020

    Investor Presentation February 2020

  2. Slide 2: South Asia's largest hospitality company with a legacy of 116 years

    We are South Asia’s largest hospitality company with a legacy of 116 years 100+ 4 12 locations continents countries 197 23,000+ $1 Billion+ hotels keys Group revenue 32,000+ associates 2

  3. Slide 3: Consolidated Financial Performance – Q3 FY 2019/20

    Consolidated Financial Performance – Q3 FY 2019 / 20 Revenue EBITDA EBITDA Margin PAT ₹ 1,409 cr ₹ 462 cr 32.78% ₹ 203 cr 662 5% 32% 26% bps ₹ 1,338 cr ₹ 350 cr 26.16% ₹ 162 cr *Pre-IND AS - EBITDA: ₹ 416 cr (+19%), EBITDA Margin: 29.56% (+339 bps); PAT: ₹ 214 cr *Pre-Ind AS - Operating EBITDA: ₹ 38

  4. Slide 4: Consolidated Financial Performance – 9M FY 2019/20

    Consolidated Financial Performance – 9M FY 2019 / 20 Revenue EBITDA EBITDA Margin PAT ₹ 3,495 cr ₹ 854 cr 24.44% ₹ 280 cr 659 5% 44% 63% bps ₹ 3,314 cr ₹ 592 cr 17.85% ₹ 172 cr *Pre-IND AS - EBITDA: ₹ 719 cr (+21%), EBITDA Margin: 20.56% (+271 bps); PAT: ₹ 310 cr *Pre-IND AS - Operating EBITDA: ₹ 62

  5. Slide 5: Best Q3 and 9 Months Financial Performance in a Decade

    Best Q3 and 9 Months Financial Performance in a Decade Particulars – Q3 2019/20 2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 Revenue 1,409 1,338 1,217 1,146 1,185 1,235 1,169 1,074 1,027 838 EBITDA 462 350 300 280 274 266 247 223 225 194 EBITDA Margin (%) 32.8% 26.2% 24.7%

  6. Slide 6: Standalone Financial Performance – Q3 FY 2019/20

    Standalone Financial Performance – Q3 FY 2019 / 20 Revenue EBITDA EBITDA Margin PAT ₹ 890 cr ₹ 353 cr 39.61% ₹ 168 cr 602 9% 29% 22% bps ₹ 816 cr ₹ 274 cr 33.59% ₹ 138 cr *Pre-IND AS - EBITDA: ₹ 331 cr (+21%), EBITDA Margin: 37.2% (+361 bps); PAT: ₹ 172 cr *Pre-IND AS - Operating EBITDA: ₹ 296 cr (+

  7. Slide 7: Standalone Financial Performance – 9M FY 2019/20

    Standalone Financial Performance – 9M FY 2019 / 20 Revenue EBITDA EBITDA Margin PAT ₹ 2,124 cr ₹ 646 cr 30.43% ₹ 309 cr 569 6% 31% 213% bps ₹ 1,996 cr ₹ 494 cr 24.73% ₹ 99 cr *Pre-IND AS - EBITDA: ₹ 582 cr (+18%), EBITDA Margin: 27.39% (+266 bps); PAT: ₹ 321 cr *Pre-IND AS – Operating EBITDA: ₹ 483

  8. Slide 8: Aspiration 2022

    ASPIRATION 2022 8

  9. Slide 9: Aspiration 2022

    Aspiration 2022 Unveiled on Capital Market Day, Feb. 2018 15 NEW PROJECTS EVERY YEAR 8% EBITDA MARGIN EXPANSION 50-50 PORTFOLIO 9

  10. Slide 10: Aspiration 2022 – 8% Margin Expansion

    Aspiration 2022 – 8% Margin Expansion Drivers of margin expansion Particulars Margin Improvement Revenue RevPAR Growth Other Operating Income 3 to 4 % Management Fee Income Incremental Income from New Inventory 8% EBITDA Costs MARGIN Operational Payroll EXPANSION Procurements (Raw Materials, Stores

  11. Slide 11: Aspiration 2022 – Strategic Initiatives

    Aspiration 2022 – Strategic Initiatives Path to Execution Re-structure Re-imagine Re-engineer  Scale up Inventory  Manage Brandscape  Expand Margins  Sell Non Core Assets  Multiply Portfolio  Embrace Technology  Simplify Holding Structure  Manoeuvre Excellence  Engage People 11

  12. Slide 12: Aspiration to Execution: Key Highlights

    Aspiration to Execution: Key Highlights 12

  13. Slide 13: Re-imagined Brandscape

    GROWTH REVENUE PROFITABLIITY Re-imagined Brandscape 13

  14. Slide 14: All-time High Hotel Signings

    GROWTH REVENUE PROFITABLIITY All-time High Hotel Signings New Hotels Signed 24 22 14 5 FY 2016/17 FY 2017/18 FY 2018/19 YTD 2019/20 #Rooms 1,174 468 3,118 2,804 14

  15. Slide 15: Opened One Hotel a Month in 2019, to Open More in 2020

    GROWTH REVENUE PROFITABLIITY Opened One Hotel a Month in 2019, to Open More than One Hotel a Month in 2020 New Hotels Opened in 2019 Hotels Rooms Taj 5 662 9 Hotels Opened SeleQtions 1 207 in the First Vivanta 1 110 9 months of Ginger 5 428 FY 2019/20 Total 12 1,407 Total Pipeline by Brand Hotels Ro

  16. Slide 16: Significant Growth in Portfolio – Asset Light

    GROWTH REVENUE PROFITABLIITY Significant Growth in Portfolio – Asset Light #Hotels #Rooms 197 179 155 160 24,223 22,231 18,965 18,361 March 2017 March 2018 March 2019 Jan 2020 Mgmt. % 31% 32% 39% 42% *Including Pipeline 16

  17. Slide 17: Creating Alternate Revenue Streams

    GROWTH REVENUE PROFITABLIITY Creating Alternate Revenue Streams S. M. A. R. T. Asset SMART Growth Strategy 200+ Additions, ₹ 30 Cr Incr. Revenue 9M Management fees ₹ 163 Cr (+7%) Focus on F&B – Scale & Synergy Launched and Scaling Up Launching Soon in Bengaluru 13 Bungalows operational 17

  18. Slide 18: Ginger Achieves a Key Milestone

    GROWTH REVENUE PROFITABLIITY Ginger Achieves a Key Milestone 50 20% Hotels Lean Luxe Today 26% 7.4% Growth in Q3 ARR for RevPAR Growth Lean Luxe Portfolio in 9M FY 19/20 ~4500 50% Keys Lean Luxe by Mar ‘21 18

  19. Slide 19: Continuous Improvement in Operating Cost Base

    GROWTH REVENUE PROFITABLIITY Continuous Improvement in Operating Cost Base Raw Material Cost Payroll Cost 23.6% 34.9% 23.3% 22.5% 34.2% 33.4% 21.6% 33.1% 9M 2016/17 9M 2017/18 9M 2018/19 9M 2019/20 9M 2016/17 9M 2017/18 9M 2018/19 9M 2019/20 Fuel, Power and Light Other Expenditure 6.6% 6.6% 29.2% 28

  20. Slide 20: Continuing our Journey of EBITDA Margin Expansion

    GROWTH REVENUE PROFITABLIITY Continuing our Journey of EBITDA Margin Expansion EBITDA Margin Expansion (bps) 728 Launch of Aspiration 2022 662 585 458 405 339 304 230 183 148 150 Q4 2017/18 Q1 2018/19 Q2 2018/19 Q3 2018/19 Q4 2018/19 Q1 2019/20 Q2 2019/20 Q3 2019/20 Margin Expansion Pre Ind AS Margi

  21. Slide 21: Journey so far..

    Journey so far.. Managed EBITDA Net Debt / Portfolio* ₹ / crores Revenue EBITDA PAT Portfolio Margin EBITDA (#Hotels) (%) Aspiration 2022 25% < 2.00 225 50% YTD Dec’19 3,495 719 20.6% 310 1.76 197 42% FY 2018 / 19 4,595 913 19.9% 287 2.11 179 39% FY 2017 / 18 4,165 732 17.6% 101 2.58 160 32% FY 2016

  22. Slide 22: Acquisitions and Monetization YTD 2019/20

    Acquisitions and Monetization YTD 2019/20 ₹ 4,000 crore (USD 600 Mn) Sale of Non – core Assets Simplification & Monetization Investment Platform Commercial Closure Achieved Residential Apartments, Land 100% Completed for 1 Transaction 22

  23. Slide 23: Continuous Improvement in Net Debt / EBITDA and Net Debt / Equity

    Continuous Improvement in Net Debt / EBITDA and Net Debt / Equity 1.65 1.25 6.47 0.45 0.37 0.34 4.74 2.58 2.11 1.76 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Dec 2019 Net Debt to EBITDA Net Debt to Equity *Trailing Twelve Months Basis **Net Debt, EBITDA on Pre IND AS basis ***Net Debt as at Dec’19 was ₹ 1

  24. Slide 24: Taj Fateh Prakash Palace, Udaipur

    24 Taj Fateh Prakash Palace, Udaipur

  25. Slide 25: Our Operational Portfolio

    Our Operational Portfolio Inventory by Geography Inventory by Contract Type Intl, 2654 Management Contracts, 5538 Group Companies, 8635 Dom, 15942 Holding Company, 4423 Group Companies Holding Company Dom Intl Management Contracts As of 31st January 2020, IHCL has 157 hotels with 18,596 Rooms 25

  26. Slide 26: Group Major Companies

    Group Major Companies Effective Effective Company Name Company Name Holding % Holding % Subsidiaries Joint Ventures Piem Hotels Ltd 51.57 Taj SATS Air Catering Ltd 51.00 Benares Hotels Ltd 51.68 Taj GVK Hotels & Resorts Ltd 25.52 United Hotels Ltd 55.00 Taj Kerala Hotels & Resorts Ltd 28.30 Roots Co

  27. Slide 27: Awards and Accolades continue to reinforce our direction

    Awards and Accolades continue to reinforce our direction 27

  28. Slide 28: Disclaimer

    Disclaimer These presentations may contain forward-looking statements within the meaning of applicable securities laws. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Forward-looking statements are not g

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