Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — H1 FY2012 Earnings Presentation
52 slides from Indian Hotels's earnings presentation, Oct 28, 2011
Slide 1: The Indian Hotels Company Limited Analyst Meet
The Indian Hotels Company Limited Analyst Meet Results for the Half Year ended September 30, 2011 October 28, 2011
Slide 2: Disclaimer
Disclaimer These presentations 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 guaran
Slide 3: Presenter Panel
Presenter Panel Raymond Bickson - Managing Director Anil P Goel - Executive Director – Finance Deepa Misra Harris - Vice President –Marketing 3
Slide 4: Outline of Presentation
Outline of Presentation Industry Trends New Inventory Sales & Marketing Initiatives Financial Results Treasury Initiatives 4
Slide 5: Industry Trends
Hotels Resorts and Palaces Industry Trends
Slide 6: Tourism Industry - Worldwide
Tourism Industry - Worldwide International tourist arrivals in the first half of 2011 were up 4.5% from last year in line with the forecast. Asia Pacific & Middle East expected to show highest growth in 2011. 6
Slide 7: Tourism Industry - Worldwide
Tourism Industry - Worldwide Continued Positive Growth observed in Key Cities worldwide – both in Occupancies and in Rates Source: 7
Slide 8: Tourism Industry - Worldwide
Tourism Industry - Worldwide 8
Slide 9: Foreign Tourist Arrivals in India Jan – Sep 2011
Foreign Tourist Arrivals in India Jan – Sep 2011 Tourist Arrivals in India show a growth of 10% above last year much higher than the world average of 4.5% 9 Source: Ministry of Tourism 9
Slide 10: Key Cities in India
Key Cities in India H1 of 2011 has seen increased occupancies and rates across all key cities in India, with the exception of Delhi-NCR where we see an impact of increased supply 10 Source: 10
Slide 11: Occupancies – Year on Year Trend
Occupancies – Year on Year Trend 69% 66% 66% 66% 64% 63% 62% 62% 61% 61% 60% 59% 58% 56% 50% 49% 48% 46% 39% 40% Kolkata Goa Jaipur Hyderabad Bangalore Pune Delhi South Mumbai Chennai North Mumbai Source: Internal Survey 2010/11 2011/12 Increase in occupancies in Bangalore, Chennai, Kolkata, Pune &
Slide 12: ARRs – Year on Year Trend
ARRs –Year on Year Trend 9324 9248 9329 9061 8745 8420 8018 8185 6940 6914 6455 6530 5989 6055 6117 5882 5751 5761 5534 5250 Kolkata Goa Jaipur Hyderabad Bangalore Pune Delhi South Mumbai Chennai North Mumbai 2010/11 2011/12 `/room day Source: Internal Survey Rate increases in most of the cities bar
Slide 13: RevPARs – Year on Year Trend
Rev PARs – Year on Year Trend 6106 6123 5425 5215 5238 4663 4834 4742 4447 4553 4116 3920 3459 3366 3227 3408 2722 2675 2454 2218 Kolkata Goa Hyderabad Jaipur Bangalore Pune Delhi South Mumbai Chennai North Mumbai 2010/11 2011/12 `/room day Source: Internal Survey Increase in RevPAR in all markets b
Slide 14: India - Supply and Demand Scenario
India - Supply and Demand Scenario Market Demand Drivers Prospects Mumbai Gateway city and financial capital Supply likely to be absorbed NCR Gateway city Oversupply likely in the near term Bengaluru Foreign IT/ ITES, business travellers Oversupply likely in the near term Pune Foreign IT/ ITES, busi
Slide 15: New Inventory
Hotels Resorts and Palaces New Inventory 15
Slide 16: Taj Group Inventory – September 2011
Taj Group Inventory – September 2011 One Hotel Every 4 Weeks As of Sept 2011: in 2011-12 110 Hotels 5 ,6 79 , 63 15 13,237 Rooms 95 14 4 43 ,7 75 ,2 12 7 11 , 12 1 , 58 82 ,93 10 130 1 9 120 2 21 9 9, ,94 8, 107 7 103 99 88 76 82 62 66 4 5 6 7 8 9 0 1 2 3 -0 -0 -0 -0 -0 -0 -1 -1 -1 -1 03 04 05 06 07
Slide 17: New Hotels in 2011/12
New Hotels in 2011/12 Hotel Indicative Timeline Company Rooms IHCL – Direct/ Management Contract Vivanta by Taj, Yeshwantpur Launched IHCL 327 Vivanta by Taj, Srinagar Launched Management Contract 88 Vivanta by Taj, Bekal, Kerala December, 2011 Management Contract 75 Taj Palace, Marrakech, Morocco F
Slide 18: Vivanta by Taj, Bekal
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Slide 19: Taj Palace, Marrakech, Morocco
Taj Palace, Marrakech, Morocco 19
Slide 20: Vivanta by Taj, Gurgaon
Vivanta by Taj, Gurgaon ENCLOSED COURTYARD DROP OFF
Slide 21: Vivanta by Taj, Begumpet, Hyderabad
Vivanta by Taj, Begumpet, Hyderabad 21
Slide 22: Vivanta by Taj, Coimbatore
Vivanta by Taj, Coimbatore 22
Slide 23: Vivanta by Taj, Coorg
Vivanta by Taj, Coorg 23
Slide 24: Hotels in Pipeline - Next 2 Years
Hotels in Pipeline - Next 2 Years New Development in Pipeline 19 Hotels 2591 Rooms Hotel Indicative Timeline Company Rooms Vivanta by Taj Vivanta by Taj, Nagpur 2013 Management Contract 255 Vivanta by Taj, Pondicherry 2013 Management Contract 60 Vivanta by Taj, Dwarka 2013 IHCL 250 Vivanta by Taj, G
Slide 25: Sales and Marketing Initiatives
Sales and Marketing Initiatives 25
Slide 26: Vivanta by Taj, Yeshwantpur, Bangalore
Vivanta by Taj, Yeshwantpur, Bangalore Launched - September 2011 The third Vivanta in Bangalore and the biggest Launched on the first brand anniversary at the city where the Vivanta story began 327 palatial rooms and over 18,000 sq ft of well planned meeting spaces, one of the largest in the city It
Slide 27: Launch Coverage – Vivanta by Taj, Yeshwantpur
Launch Coverage – Vivanta by Taj, Yeshwantpur, Bangalore, September 2011 Coverage Deccan Herald Business Standard Hindu Business Line DNA GQ Express Hospitality You and I Travel Biz Monitor Trav Talk Hospitality Biz Prajavani Eenadu Sakshi 27
Slide 28: Relaunched – September 2011
Relaunched – September 2011 Located at the edge of the world-renowned Gir Forest, The Gateway Hotel is the ideal getaway for nature lovers, holidaying families and honeymooners alike. Our 28 aesthetically-designed rooms offer the best of modern-day comforts to relax in after a Safari A visit to the
Slide 29: Launch Overview, September 2011
Launch Overview, September 2011 29
Slide 30: Launched – April 2011
Launched – April 2011 Inaugurated on 17th April 2011 by the Honorable Chief Minister Omar Abdullah and Union Minister Farooq Abdullah Located on Kralsangri Hill overlooking the scenic Dal Lake Spread across 6 acres consists of 48 spacious rooms 30
Slide 31: Vivanta by Taj, Dal View, Srinagar Launch Coverage
Vivanta by Taj, Dal View, Srinagar Launch Coverage, April 2011 Financial Times UK Metro Room with a Mountain View 31
Slide 32: New Taj Website – Launched June 2011
New Taj Website – Launched June 2011 Result of extensive consumer research Experiential, sophisticated and rich new design New and richer functionality, booking mechanism, tools and content 32
Slide 33: Awards and Accolades
Awards and Accolades The Indian Hotels Company Limited has won the award for "Outstanding Exporter Of The Year - Travel & Tourism" at the DHL & CNBC-TV18 International Trade Awards 2010-11 The Taj Mahal Palace Mumbai - Conde Nast Traveller, UK Readers’ Poll runner up for Overseas Business Hotel - 12
Slide 34: Awards and Accolades
Awards and Accolades Vivanta by Taj Hotels & Resorts featured in Travel + Leisure Editors’ Choice Awards 2011 ‘It’ list on Spin-Off Brands The Gateway Hotel – Excellence in Personnel Welfare – GMR Express Travel World Awards 2010/2011 34
Slide 35: Standalone Financial Performance Half Year ended September, 2011
Standalone Financial Performance Half Year ended September, 2011 35
Slide 36: Highlights – H1 2011/12
Highlights – H1 2011/12 Total Turnover of ` 758 crores higher by ` 80 crores 11% PBIET of ` 83 crores higher by ` 22 crores 36% PBT of ` 46 crores vs ` (4) crores 1277% PAT of ` 29 crores higher vs ` (3) crores 1091% EPS at ` 0.39 vs ` (0.04) 1091% 36
Slide 37: Turnover Trend
Turnover Trend 679 758 375 344 `/ crores 335 383 2010/11 2011/12 Q1 Q2 Both Q1 & Q2 showed healthy growth over the previous year 37
Slide 38: PBIET Trend
PBIET Trend 83 61 28 `/ crores 26 55 35 2010/11 2011/12 Q1 Q2 H1 PBIET up by 36% over previous year 38
Slide 39: Profit and Loss Account – H1 2011/12
Profit and Loss Account – H1 2011/12 `/ crores 2011/12 2010/11 % Change Net Sales/Income from Operations 727.10 657.24 11 Other Operating Income - - - Total Income 727.10 657.24 11 a. Consumption of Raw Materials 64.69 59.36 (9) b. Staff Costs 226.91 192.15 (18) c. License Fees 44.01 40.74 (8) d. Fu
Slide 40: Turnover – H1 2011/12
Turnover – H1 2011/12 ` crores 2011/12 2010/11 % Change Room sales 343.89 311.16 11 F&B sales 287.65 260.77 10 Other Income 49.55 43.67 13 Management Fees 46.01 41.64 10 Total Income 727.10 657.24 11 Non – Operating Income 31.23 21.30 47 Total Income including Other Income 758.33 678.54 12 Improved
Slide 41: Expenditure
Expenditure Staff Cost – ` 226.91 Crores Increase due to annual increments and launch of new properties in Bangalore & Hyderabad Raw Materials Cost – ` 64.69 crores Increase in line with higher F&B revenue. License Fees – ` 44.01 crores Higher by ` 3 crores on account of higher turnover of licensed
Slide 42: Exceptional items
Exceptional items Income of ` 9.6 crores in the current year against an expense of ` (1.0) crores in the previous year Particulars 2011/12 2010/11 Income on surrender of a project (Net off 10.6 - accumulated capital expenditure) Profit on sale of hotel - 4.3 Profit/(loss) on divestment - (8.6) Excha
Slide 43: Change in Accounting Policy: Net Investment Hedge Accounting
Change in Accounting Policy: Net Investment Hedge Accounting Background $ Assets - The Company has placed Deposits with foreign subsidiaries $ Liabilities – The company has taken Cross Currency Swap Derivatives on existing Rupee Loan to hedge the currency fluctuation on deposits placed. Previous Acc
Slide 44: Change in Accounting Policy: Net Investment Hedge Accounting
Change in Accounting Policy: Net Investment Hedge Accounting Net Investment Hedge Accounting Effective April 1 2011, the company has adopted hedge accounting principles On application of the same, the foreign currency translation difference of both – the hedging instrument (i.e. the borrowings) – an
Slide 45: Statement of Assets & Liabilities as at September 30, 2011
Statement of Assets & Liabilities as at September 30, 2011 As at As at ` / Crores September 30, 2011 September 30, 2010 Shareholders’ Funds 3346.04 2681.60 Loan Funds 2330.78 2362.76 Long Term Trade Deposits 13.12 22.67 Deferred Tax Liability 58.82 - Foreign Currency Monetary Item Translation Differ
Slide 46: Overview of Taj Group – H1
Overview of Taj Group – H1 Particulars 2011/12 2010/11 2009/10 2008/09 Number of hotels 110 107 103 97 Rooms Inventory 13,237 12,795 12,243 11,546 Total Revenue – ` / crores 2,069 1,822 1,603 1,921 Total Revenue denotes arithmetic aggregate of turnover of all hotels/units irrespective of ownership,
Slide 47: International Hotels
International Hotels Occupancy (%) ARR ($) RevPAR ($) H1 H1 H1 H1 H1 H1 Hotel Name 2011/12 2010/11 2011/12 2010/11 2011/12 2010/11 The Pierre, New York 67 62 571 571 382 353 Taj Boston 71 73 287 263 203 192 Campton Place, San Francisco 75 72 287 252 216 180 St. James Court, London 85 84 323 271 274
Slide 48: Treasury Update
Hotels Resorts and Palaces Treasury Update 48
Slide 49: Treasury Update
Treasury Update Repayment of 6% NCD in May, 2011 - ` 603 crores Repayment of select overseas debt by shifting the same on IHCL to take advantage of tax breaks on interest cost Recent Balance Sheet restructuring facilitates reduction in interest cost Sufficient liquidity in the system to fund on-goin
Slide 50: Focus Areas – Going Forward
Focus Areas – Going Forward 50
Slide 51: Focus Areas – Going Forward
Focus Areas – Going Forward Key Focus areas: Continued thrust on US operations to make the portfolio cash neutral in the near term Measurable initiatives put in place to drive US sales Manage the leverage at the consolidated level efficiently Speedy completion of new projects in India Facilitate spe
Slide 52: Thank you
Hotels Resorts and Palaces Thank you
The Indian Hotels Company — H1 FY2012 Earnings Presentation on 6ix