Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q4 FY2021/22 Earnings Presentation
53 slides from Indian Hotels's earnings presentation, Apr 27, 2022
Slide 1: Analyst Presentation cover letter to exchanges
ll~C I~ April 27, 2022 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza 1st Floor, New Trading Ring, Bandra Kurla Complex Rotunda Building, P. J. Towers, Bandra (E) Dalal Street, Fort, Mumbai 400 051 Mumbai - 400 001. Scrip Code: INDHOTEL Scrip Co
Slide 2: Global Conference Call Q4, FY 2021/22 Results
GLOBAL CONFERENCE CALL Q4, FY 2021/22 RESULTS | 27th APRIL, 2022
Slide 3: Exotica Resort & Spa, The Palm, Dubai
TA} EXOTICA RESORT & SPA THE PALM, DUBAI
Slide 4: Honoree in Travel + Leisure's Global Vision Awards 2022
Honoree in Travel + Leisure's Global Vision Awards 2022 3
Slide 5: Luxury / Upperscale Hotels, Upscale Hotels, Budget / Economy Hotels
GINGER VISAKHAPATNAM, GAJUWAKA Luxury / Upperscale Hotels Upscale Hotels Budget / Economy Hotels 4
Slide 6: War Sets Back Global Recovery, India Expected to Outperform
WAR SETS BACK GLOBAL RECOVERY, INDIA EXPECTED TO OUTPERFORM GDP GROWTH ESTIMATES – IMF OUTLOOK FOR 2022 8.2% 4.4% 3.6% 3.7% 2.8% WORLD USA EU CHINA INDIA WORLD USA EU CHINA INDIA Source: IMF World Economic Outlook, April 2022 5
Slide 7: Industry Performance in April vs Pre-Pandemic: STR
INDUSTRY PERFORMANCE IN APRIL > PRE-PANDEMIC: STR Leisure markets outperformed Strong recovery in business demand Faster recovery post each wave Trend expected to continue 6
Slide 8: Industry Leading Recovery for IHCL
INDUSTRY LEADING RECOVERY FOR IHCL RevPAR (₹) Industry (India) IHCL (India) 3rd wave 1st wave 2nd wave Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 7
Slide 9: Industry Leading Recovery in Rates and Occupancies
INDUSTRY LEADING RECOVERY IN RATES AND OCCUPANCIES Recovery in FY 2021/22 v/s PRE-COVID (FY 2019/20) Average Rates Occupancies (RPD) RevPAR (Domestic - Same Store) (Domestic - Same Store) (Domestic - Same Store) 88% 94% 81% 74% 76% 65% Industry IHCL Industry IHCL Industry IHCL 8
Slide 10: Industry Leading Recovery Across Key Markets
INDUSTRY LEADING RECOVERY ACROSS KEY MARKETS *Data for Domestic Hotels Incl. Ginger IHCL Domestic Hotels – Full Year RevPAR (% of Pre-COVID Levels) *Calculated on Same Store Basis 110% Industry IHCL (Same Store) 100% 100% 96% 95% 90% 85% 84% 80% 76% 76% April 2022 – Est. Recovery Trend 70% 121% 118%
Slide 11: Industry Leading Growth in Two Consecutive Years
INDUSTRY LEADING GROWTH IN TWO CONSECUTIVE YEARS 2020 2021 Indian hospitality industry hotel signings Indian hospitality industry hotel signings Source: HVS Anarock Indian Hospitality Overview Report 2020 & 2021 10
Slide 12: Industry Leading Growth Across Brands
INDUSTRY LEADING GROWTH ACROSS BRANDS: FY 2021-22 Q4 5 5 Opened more than one hotel a month 11
Slide 13: Industry Leading Footprint in India
INDUSTRY LEADING FOOTPRINT IN INDIA 100 locations in India 29 states and union territories 215+ hotels in India *Including those under development 12
Slide 14: Industry Leading Pipeline
INDUSTRY LEADING PIPELINE 60 Hotels | 7,500+ Rooms Pipeline by Brand Pipeline by Contract Type 32% 26% 40% 74% 9% 19% Taj SeleQtions Vivanta Ginger IHCL Mgmt. Contracts As on 31st March 2022 13
Slide 15: Industry Leading Innovation Through New Businesses
INDUSTRY LEADING INNOVATION THROUGH NEW BUSINESSES • DURING COVID: • DURING COVID: • DURING COVID: • 0 20 Cities • 0 80 Properties • 70 85 Hotels • 0 ₹ 66+ Cr GMV • 0 ~40 Destinations • 96% Recovery in Q4 • ASPIRATION: • ASPIRATION: • ASPIRATION: • 25+ Cities • 500 Properties • 100-150 Hot
Slide 16: Industry Leading Neu Loyalty Program
INDUSTRY LEADING NEU LOYALTY PROGRAM 15
Slide 17: Industry Leading ESG+ Initiative to Lead Change
INDUSTRY LEADING ESG+ INITIATIVE TO LEAD CHANGE PARTNER PRUDENT Transformation Corporate Governance 16
Slide 18: Industry Leading Risk Management
INDUSTRY LEADING RISK MANAGEMENT Master of Risk in Business Model Adaptability Master of Risk in Brand & Social Media Management 17 Special Jury Citation for Risk Management in Hospitality Sector in the Large Cap category
Slide 19: IHCL Has Continued to Deliver..
IHCL HAS CONTINUED TO DELIVER.. INDUSTRY LEADING RECOVERY INDUSTRY LEADING GROWTH INDUSTRY LEADING FOOTPRINT IN INDIA INDUSTRY LEADING PIPELINE INDUSTRY LEADING INNOVATIONS INDUSTRY LEADING LOYALTY INDUSTRY LEADING ESG+: PAATHYA INDUSTRY LEADING RISK MANAGEMENT 18
Slide 20: Financial Performance – Q4 and FY 2021/22
FINANCIAL PERFORMANCE – Q4 and FY 2021/22 19
Slide 21: Performance Snapshot: IHCL Consolidated
PERFORMANCE SNAPSHOT: IHCL CONSOLIDATED ₹ Crores Q4 YTD MARCH 21/22 2020/21 2021/22 Variance 2020/21 2021/22 Variance Revenue 626 955 52% 1,740 3,211 85% EBITDA 83 242 192% (197) 560 + 757 PAT* (91) 74 + 165 (720) (248) + 472 * (After Share of Profit of Associates & JV's and Non Controlling Interest
Slide 22: Journey of EBITDA Margin Expansion
JOURNEY OF EBITDA MARGIN EXPANSION Particulars – Q4 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 955 626 1,101 1,282 1,164 1,069 1,088 1,139 1,105 1,029 992 810 EBITDA 242 83 246 322 265 195 172 188 180 200 200 172 EBITDA Margin (%) 25.3% 13.2% 22.3% 25.1% 22.8% 18
Slide 23: Focus on Structural Cost Reduction
FOCUS ON STRUCTURAL COST REDUCTION FY 2021/22 v/s FY 2019/20 (PRE-COVID) ↓ 24% ↓ 18% ↓ 28% Total Expenditure Total Fixed Costs Corporate Overheads *All Numbers Include Fixed Lease Costs 22
Slide 24: Strengthened Balance Sheet
STRENGTHENED BALANCE SHEET RIGHTS ISSUE QIP Consol. Net Debt (ÌNR Cr) 3,571 ~ ₹ 2,000 crores ₹ 2,000 crores 1.3x+ subscription 2.5x+ bids received -106 (Cash +ve) Closed in Dec. 2021 Closed in Mar. 2022 September 30, 2021 March 31, 2022 23
Slide 25: Capital Market Day – May 2022
rd CAPITAL MARKET DAY – 23 MAY 2022 UNVEILING IHCL’s STRATEGY FOR THE FUTURE 24
Slide 26: IHCL Consolidated Financial Performance (Q4 & FY 2021/22)
IHCL CONSOLIDATED FINANCIAL PERFORMANCE (Q4 & FY 2021/22) GIRIDHAR SANJEEVI, EVP & CHIEF FINANCIAL OFFICER
Slide 27: Performance Snapshot: IHCL Consolidated
PERFORMANCE SNAPSHOT: IHCL CONSOLIDATED ₹ Crores FY 2021/22 Q1 Q2 Q3 Q4 FY Revenue 370 752 1,134 955 3,211 % of 2019/20 35% 73% 80% 87% 70% EBITDA (123) 97 344 242 560 EBITDA Margin -33% 13% 30% 25% 17% Profit Before Tax (315) (130) 109 77 (258) Profit After Tax* (277) (121) 76 74 (248) * (After Sha
Slide 28: Performance Snapshot: IHCL Standalone
PERFORMANCE SNAPSHOT: IHCL STANDALONE ₹ Crores FY 2021/22 Q1 Q2 Q3 Q4 FY Revenue 226 481 771 675 2,152 % of 2019/20 37% 77% 87% 89% 75% EBITDA (78) 80 291 244 537 EBITDA Margin -34% 17% 38% 36% 25% Profit Before Tax (220) (61) 145 109 (27) Profit After Tax (190) (54) 124 86 (34) 27
Slide 29: Revenue & Recovery in Key Cities vs 2019/20
REVENUE & RECOVERY IN KEY CITIES vs 2019/20 Domestic Hotels (incl. Ginger) – Same Store ₹ /crores 92 Jan 22 Feb 22 Mar 22 70 61 45 48 49 44 43 36 36 31 30 30 26 27 24 23 21 23 17 14 15 13 13 7 10 10 Mumbai Delhi & NCR Bengaluru Goa Chennai Rajasthan Hyderabad Kolkata Kerala 38 Jan 22 vs Jan 20 34% 3
Slide 30: Revenue Recovery in Key Cities vs 2019/20 (International)
REVENUE RECOVERY IN KEY CITIES vs 2019/20 International Hotels – Same Store ₹ /crores Jan 22 Feb 22 Mar 22 35 32 29 27 25 20 20 18 18 17 16 16 14 13 10 8 4 5 USA UK Dubai Maldives Africa Sri Lanka Jan 22 vs Jan 20 38% 37% 106% 88% 43% 60% Feb 22 vs Feb 20 45% 74% 131% 92% 49% 74% Mar 22 vs Mar 19 58
Slide 31: Hotels Are a Hedge to Inflation Globally
HOTELS ARE A HEDGE TO INFLATION GLOBALLY Source: Morgan Stanley 30
Slide 32: Domestic Hotels (Same Store – Q4) – Leisure / Non-Leisure
DOMESTIC HOTELS (SAME STORE – Q4) – LEISURE / NON-LEISURE Domestic Hotels including Ginger Occupancy for Jan, Feb & March 22 – 41%, 62% & 68% (Jan 2020 72%, Feb 20 74%, March 2019 65%) OCCUPANCY % ARR in ₹ 14,982 14,456 73% 14,225 63%64% 65% 61% 56% 44% 41% 40% 41% 7,612 6,841 7,226 33% 21% 2,345 2,
Slide 33: Key International Geographies (Same Store – Q4) Occupancy & ARR
KEY INTERNATIONAL GEOGRAPHIES (SAME STORE – Q4) OCCUPANCY & ARR Key Geographies - Occupancy for Jan, Feb & March 22 – 41%, 55% & 68% (Jan 2020 73%,Feb 20 74%, March 2019 83%) OCCUPANCY % ARR in $ 93%95% 634 80% 82% 566 587 73% 532 509 514 65% 62% 372 360 345 44% 322 42% 278 278 30% 20% 18% US UK Dub
Slide 34: Revenue Drivers
REVENUE DRIVERS Revenue Recovery Asset Light Growth New & Reimagined Business Portfolio - 235 Hotels, Ginger – Portfolio 85 Hotels Occupancy – 52% (+ 13 PP) 28100+ Rooms incl. pipeline Qmin - 20 Cities ADR - ₹ 9,717 (+ 32%) New Openings – 13 Openings & 19 signings in amã – 80 Bungalows
Slide 35: Growth in Management Fees / Chambers
GROWTH IN MANAGEMENT FEES / CHAMBERS Management Fees (₹ Cr) 231 Chambers (₹ Cr) 85 204 213 213 177 63 136 49 39 36 39 ‘16-17 ’17-18 ‘18-19 ‘19-20 ‘20-21 ‘21-22 ‘16-17 ’17-18 ‘18-19 ‘19-20 ‘20-21 ‘21-22 34
Slide 36: Q4, Full Year 2021/22 – IHCL Standalone Revenue Metrics
Q4, FULL YEAR 2021/22 – IHCL STANDALONE REVENUE METRICS Particulars Q1 Q2 Q3 Q4 FY PY Occupancy % 28.4 56.6 66.6 58.4 52.5 39.4 ARR in ₹ 7,024 8,273 11,348 10,569 9,717 7,351 RevPAR in ₹ 1,992 4,679 7,559 6,176 5,103 2,895 (₹/ crores) Room Revenue 88 199 311 250 848 472 F & B Revenue 65 165 284 200
Slide 37: Q4, Full Year 2021/22 – Enterprise Revenue Metrics (Domestic)
Q4, FULL YR. 2021/22 - ENTERPRISE REVENUE METRICS (DOMESTIC) Particulars Q1 Q2 Q3 Q4 FY PY Occupancy % 28.6 53.9 62.7 54.5 50.1 36.4 ARR in ₹ 4,656 5,878 8,089 7,671 6,901 5,148 RevPAR in ₹ 1,331 3,168 5,070 4,183 3,457 1,872 (₹/ crores) Room Revenue 207 494 793 652 2,145 1,105 F & B Revenue 188 419
Slide 38: Fixed Costs & Corporate Overheads per Hotel
FIXED COSTS & CORPORATE OVERHEADS PER HOTEL ₹ /crores 2,500 24.4 2,000 18.9 3.21 17.0 1,500 2.11 1.92 1,000 1,949 347 1,590 1,393 249 500 213 - 2019/20 2020/21 2021/22 2019/20 2020/21 2021/22 Fixed Costs Fixed Costs / Hotel Corporate overheads Corporate overheads / hotel Hotels considered are IHCL S
Slide 39: 12M 2021/22 – Performance of Key Subsidiaries
12M 2021 / 22 - PERFORMANCE OF KEY SUBSIDIARIES ₹ /crores Legal Entity Revenue EBITDA PAT UOH Inc. - USA 315 (46) (119)* St. James Court - UK 199 23 (39) PIEM Hotels Ltd. 266 3 (3) Roots Corporation Ltd 179 43 (34) * Cash Loss Funding in The Pierre came down from ₹ 164 crores in 2020/21 to ₹ 56 cror
Slide 40: Equity Issues: Utilisation Actual & Planned
EQUITY ISSUES: UTILISATION ACTUAL & PLANNED ₹ /crores Utilised Till Utilisation Planned Particulars April 27, 2022 going forward Gross Proceeds 3,982 Less: Estimated Issue Expenses (39) Net Proceeds 3,943 Utilisation : Debt Reduction IHCL 2,052 450 Subsidiaries (incl. shareholding consolidation) 125
Slide 41: Net Debt / Cash Position – Standalone & Consolidated
NET DEBT/ CASH POSITION – STANDALONE & CONSOLIDATED ₹ /crores Standalone Consolidated Particulars March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021 Gross Debt 943 2,592 1,985 3,633 Liquidity (1,902) (413) (2090) (523) Net Debt/ (Net Cash) (960) 2,179 (106) 3,110 Weighted cost of Debt (%) 7
Slide 42: Summarised Results
SUMMARISED RESULTS a TAS SELEQTIONS VIVANTA GINGER ama Qenin we IWCL
Slide 43: Q4, 12M 2021/22 – IHCL Consolidated P&L
Q4, 12M 2021 / 22 – IHCL CONSOLIDATED P&L ₹ /crores Q4 12M Particulars 2021/22 2020/21 Actual 2021/22 2020/21 Actual Actual Actual Vs LY % Actual Actual Vs LY % Revenue from Operations 872 615 42% 3,056 1,575 94% Non-Operating Revenue 83 11 623% 155 165 -6% Total Revenue 955 626 52% 3,211 1,740 85%
Slide 44: Q4, 12M 2021/22 – IHCL Consolidated Exceptional Items
Q4, 12M 2021 / 22 – IHCL CONSOLIDATED Exceptional Items: ₹ /crores Q4 12M Particulars 2021/22 2020/21 2021/22 2020/21 Var. Var. Actual Actual Actual Actual Change in fair value of derivative contracts - 2 (2) 6 25 (19) Exchange Gain / (Loss) - IHMS SA 16 (1) 17 2 29 (27) Profit on acquisition of JV
Slide 45: IHCL Consolidated Balance Sheet as at March 31, 2022
IHCL CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2022 ₹ /crores Particulars Mar 31, 2022 March 31, 2021 Non Current Assets Fixed Assets 6,473 6,462 Right to use Assets 1,513 1,530 Goodwill 623 611 Investments 1,064 1,035 Other Non Current Assets 742 722 Current Assets 2,675 1,154 Total Assets 13,090
Slide 46: Q4, 12M 2021/22 – IHCL Standalone P&L
Q4, 12M 2021 / 22 – IHCL STANDALONE P&L ₹ /crores Q4 12M Particulars 2021/22 2020/21 Actual 2021/22 2020/21 Actual Actual Actual Vs LY % Actual Actual Vs LY % Revenue from Operations 594 464 28% 2,003 1,133 77% Non Operating Revenue 81 14 495% 149 111 35% Total Revenue 675 478 41% 2,152 1,244 73% Ra
Slide 47: Q4, 12M 2021/22 – IHCL Standalone Exceptional Items
Q4, 12M 2021 / 22 – IHCL STANDALONE Exceptional Items: ₹ /crores Q4 12M Particulars 2021/22 2020/21 2021/22 2020/21 Var. Var. Actual Actual Actual Actual Gain / (Loss) on Change in fair value of derivative contracts - 2 (2) 6 25 (19) Provision for Pierre Cash Loss funding (34) (32) (2) (56) (164) 10
Slide 48: IHCL Standalone Balance Sheet as at March 31, 2022
IHCL STANDALONE BALANCE SHEET AS AT MARCH 31, 2022 ₹ /crores Particulars March 31, 2022 March 31, 2021 Non Current Assets Fixed Assets 2,538 2,565 Right to use Assets 826 846 Investments 4,877 3,964 Other Non Current Assets 565 786 Current Assets 2,326 986 Total Assets 11,132 9,147 Equity Equity Sha
Slide 49: Annexure
ANNEXURE a2 TA} SeLeQmions VIVANTA GINGER ama Qmin TAQ IWCL
Slide 50: Brandscape
BRANDSCAPE LUXURY SELECT HOTELS UPSCALE LEAN LUXE 28,100+ KEYS 235 HOTELS 13,500 KEYS 2000 KEYS 5,000 KEYS 7,700 KEYS 89 HOTELS 26 HOTELS 35 HOTELS 85 HOTELS *Portfolio figures include hotels under various stages of development 49
Slide 51: Operating Portfolio
OPERATING PORTFOLIO Inventory by Geography Inventory by Contract Type 2885 4485 8657 17696 7439 Domestic International Holding Company Management Contract Group Companies As of 31st March 2022, IHCL has 175 hotels operational with 20,581 Rooms 50
Slide 52: 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
Slide 53: Global Conference Call Q4, FY 2021/22 Results
GLOBAL CONFERENCE CALL Q4, FY 2021/22 RESULTS | 27th APRIL, 2022
The Indian Hotels Company — Q4 FY2021/22 Earnings Presentation on 6ix