Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q1 FY20 Earnings Presentation
69 slides from Mahindra Holidays & Resorts India's earnings presentation, Jul 31, 2019
Slide 1: Filing cover letter to stock exchanges
ClubMahindra July 31, 2019 MH RI L/SE/19-20/47 Listing Compliance Department of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block Floor 25. PJ Towers. Bandra-Kurla Complex Dalai Street Bandra (E), Mumbai - 400 051 Mumbai — 400 001 Scrip Cod
Slide 2: Q1 FY20 Investor Presentation
Slide 3: Disclaimer
This presentation may contain ‘forward looking statements’ within the meaning of applicable laws and regulations. Investors are cautioned that ‘forward looking statements’ are based on certain assumptions, which Mahindra Holidays & Resorts India Limited considers reasonable at this time and our view
Slide 4: Contents
0 Contents Unique Leadership Impact of Ql FY20 Business Model Position m Transition to Results Vacation IND AS Update Ownership 115/116
Slide 5: Business Model
Business Model Club Mahindra (CMH 25) Flagship Product Offering Target Profile of CMH 25 Member Product Portfolio Strategic Priorities Strengthen & Leverage Grow Member Base Brand Bliss for 50 CMH 25 Create Marquee resorts in year+ Age unexplored destinations Member Engagement group Drive Operationa
Slide 6: Sales Network and Revenue & Cost Model
Sales Network and Revenue & Cost Model Sales Network Cost Model • 124 branch offices, sales offices & channel partners • ASF funds maintenance, renovation of resorts & • Leads generated through Digital route, Referrals, member servicing Alliances, On-ground Events/Activities, Campaigns • Share of pu
Slide 7: Unique Business Model
Unique Business Model 6
Slide 8: Unique Business Model
Unique Business Model Zero Debt Status Unique Consistently High Strong Balance Sheet Business Occupancy Model 7
Slide 9: Unique Business Model - Strong Balance Sheet
Unique Business Model - Strong Balance Sheet Deferred Strong Cash Receivables Strong Asset Revenue Position Base Rs. 5,356 Cr Rs. 655 Cr Rs. 1,669 Cr Rs. 1,786 Cr* Income which Organic Growth Opportunity for 61 Resorts will be can be met Inorganic Includes Land recognized over without relying growth
Slide 10: Unique Business Model - Consistently High Occupancy
Unique Business Model - Consistently High Occupancy 4,000 91% 95% 85% 85% 83%* 82% 3,700 3,619 81% 3,595 75% 3,472 3,400 3,152 55% 3,100 2,879 2,816 35% 2,800 2,500 15% FY15 FY16 FY17 FY18 FY19 Q1 FY20 Room Inventory (Units) Occupancy % *Low Occupancy due to unprecedented floods in Kerala & Coorg in
Slide 11: Leadership Position in Vacation Ownership
Leadership Position in Vacation Ownership 10
Slide 12: Leadership Position in Vacation Ownership
Leadership Position in Vacation Ownership 2.47 Lakh+ Member Choice of 61 fully base Trusted Brand serviced resorts for Track record of over Members two decades Significant Recurring Income Member Engagement streams/Revenue Visibility 11
Slide 13: Resort Diversity
Resort Diversity Hill Stations Beaches Backwaters ▪ Manali, Shimla, Naldhera, Kandaghat ▪ Varca, Emerald Palms, Acacia Palms - ▪ Ashtamudi Goa ▪ Kumarakom ▪ Dharamshala, Kanatal, Binsar ▪ Cherai ▪ Poovar ▪ Mussorie, Naukuchiatal, Srinagar ▪ Pondicherry ▪ Allepey ▪ Munnar, Ooty, Kodaikanal, Coorg, Ye
Slide 14: Member Engagement
Member Engagement Dreamscapes Heart-to-Heart Curated Vacations Exchange Program • Wide variety of in-city • In-city meets include • Festivals & theme-based • Creating choice of experiences especially leisure & edutainment vacation experiences for destinations for members for curated for members acti
Slide 15: Transition to IND AS 115 & 116
Transition to IND AS 115 & 116 14
Slide 16: Transition to IND AS 115 – Impact on Revenue & Cost
Transition to IND AS 115 – Impact on Revenue & Cost Ind AS VO Income Ind AS VO Income 18 115 60% non refundable admission fee Recognized over the tenure of recognized upfront, 40% of Entitlement Fee membership deferred over tenure of membership Ind AS Ind AS Cost 115 Cost 18 Direct Costs are charged
Slide 17: Transition to IND AS 115 – Key Takeaways
Transition to IND AS 115 – Key Takeaways ▪ Income recognized equally over the tenure of membership (4% per year for 25 year product) as against 60% upfront in AS 18 ▪ Only incremental costs to obtain the membership are amortized over the tenure of membership ▪ Unit economics remains the same over th
Slide 18: Transition to IND AS 116 – Key Takeaways
Transition to IND AS 116 – Key Takeaways • The Ministry of Corporate Affairs (MCA) vide notification dated March 30, 2019 has made Ind-AS 116 "Leases" (Ind-AS 116) applicable w.e.f. April 1, 2019. • The Company has applied the modified retrospective approach as per para C5(b) of Ind-AS 116 to existi
Slide 19: Operating Performance
Slide 20: Q1 FY20 Performance
Q1 FY20 Performance Membership Margin Base Member Addition PBT Margin 4,371 Resort Occupancy Levels 10.8% Income Resort Income Occupancy 190 bps YOY growth Rs. 69 Cr 91.0% 7.5 % 160 bps YOY growth YOY growth 19
Slide 21: Key Indicators
Key Indicators Key indicators (No) Q1 FY20 Q1 FY19 Cumulative member base 247,710 * 240,094 * Net of one-off cancellation of 9,556 overdue members, in Q4 FY19 Resort Details Q1 FY20 Q1 FY19 No of Resorts 61 55 No of Rooms 3,619 3,472 Occupancy % 91.0% 89.4% 20
Slide 22: Member Additions
Member Additions Member Addition Trend Cumulative Member Base 2,47,710* 2,40,094 2,22,050 4,577 4,371 2,03,247 4,005 1,86,518 3,630 1,70,790 3,087 2,059 Q1 FY15 Q1 FY16 Q1 FY17 Q1 FY18 Q1 FY19 Q1 FY20 Q1 FY15 Q1 FY16 Q1 FY17 Q1 FY18 Q1 FY19 Q1 FY20 * Net of one-off cancellation of 9,556 overdue memb
Slide 23: Occupancy Trend
Occupancy Trend Occupancy Trend 90% 91% 89% 89% 89% 87% Q1 FY15 Q1 FY16 Q1 FY17 Q1 FY18 Q1 FY19 Q1 FY20 22
Slide 24: Our growing International presence
Our growing International presence 40 destinations & growing…. UAE & Asia – 6 destinations Europe & US – 34 destinations •Bangkok -1 •Finland - 25 •Kuala Lumpur -1 •Sweden – 2 •Singapore -1 •Spain - 6 •Srilanka -1 •Orlando - 1 •Dubai - 1 •Bhutan - 1 23
Slide 25: Member Engagement
Slide 26: In Resort Experiences
In Resort Experiences Goan Theme at Varca Ocean Theme E-Bike tours at Sunshine at Pondicherry Emerald Palms Summer Camp 25
Slide 27: Home Chefs
Home Chefs ▪ Home chefs pop up done for the first time at Club Mahindra Tungi ▪ Weeklong food festival with authentic flavors of Punjab ▪ A special attraction of unique and lesser known vegetarian dishes like Aloo wadiyan, Maah ki dal tempered home style etc 26
Slide 28: World Family Day 2019
World Family Day 2019 Multi-media association which aligns with our brand mission of ‘Good Living, Happy Families’ Using Origami ( a Japanese art form) to make families learn together, laugh together and bond together Media Innovation Resort & Mall Activation Social Media & PR TOI Front Page that fa
Slide 29: Movie Alliance: Spiderman Far From Home
Movie Alliance: Spiderman Far From Home Partnership to drive brand engagement, drive leads as well as activation for Club M Select and Resorts Co-branded Contest TVC Resort & Mall Activation with Digital Engagement official Spiderman mascot
Slide 30: CLUB M SELECT: The Platform of Unique Privileges
CLUB M SELECT: The Platform of Unique Privileges 365-day engagement platform for members across dining, travel & lifestyle experiences Enhances membership value during sales pitch and Increases Member satisfaction driving referrals and spends 22,000 + Members enrolled Upto Upto 40% off 24 golf clubs
Slide 31: Historical Financial Performance Ind AS 18
Slide 32: Income Trend
Income Trend IND AS 18 VO Income Resort Income Rs. In Crs +6% Rs. In Crs +14% 583 209 220 539 545 557 190 173 444 132 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 ASF Income Interest & Others Rs. In Crs Rs. In Crs +11% +14% 109 240 89 93 210 217 173 64 67 156 FY15 FY16 FY17 FY18 FY19 FY15 FY16
Slide 33: Performance Trend
Performance Trend IND AS 18 Total Income EBITDA Margin PBT Margin Rs. In Crs 21% +10% 1170 25% 25% 1090 1094 24% 24% 24% 19% 964 18% 808 17% 16% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 32
Slide 34: Profits
Profits IND AS 18 Rs. In Crs PBT Rs. In Crs PAT 156 241 +19% +23% 131 134 201 207 114 168 79 105 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 33
Slide 35: Cash from Operations continue to grow
Cash from Operations continue to grow Rs In Crs 400 350 332 301 300 266 Rs. 1,015 Crs 250 200 Cumulative operating Cash since FY16 150 116 100 50 0 FY16 FY17 FY18 FY19 34
Slide 36: Strong Balance Sheet Position
Strong Balance Sheet Position Rs In Crs 3,986 1,129 Land Assets Revalued 2,752 during Sep’18 & stands 2,539 167 2,251 161 664 at Rs. 1,129 Cr as on 1,865 157 717 682 Mar’19 107 745 666 1,621 Cash growing at a 1,396 1,434 healthy rate 1,265 1,066 470 572 26 26 84 265 2015 2016 2017 2018 FY19 Ind AS 1
Slide 37: Financial Performance – IND AS 116 Q1 FY20
Slide 38: Income Trend
Income Trend VO Income Resort Income Rs. In Crs Rs. In Crs 84 69 +9% +8% 78 64 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 ASF Income Interest & Others Rs. In Crs Rs. In Crs 69 33 +14% -13% 60 29 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 37
Slide 39: Performance Trend
Performance Trend Total Income EBITDA Margin* PBT Margin* Rs. In Crs 265 10.8% 21.4% 8.9% +9% 14.3% 242 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 *Q1 FY20 numbers are post IND AS 116 impact 38
Slide 40: Profit Growth
Profit Growth Rs. In Crs PBT* Rs. In Crs PAT* 29 18 +32% +32% 22 14 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 *Q1 FY20 numbers are post IND AS 116 impact 39
Slide 41: Income Break Up – Q1 FY'20
Income Break Up – Q1 FY’20 Rs. In Lakhs Growth Total Income Q1 FY20 Q1 FY19 YoY 8,444 7,753 8.9% Income from Vacation Ownership 6,885 6,023 14.3% ASF 6,885 6,404 7.5% Resort Income 1,534 1,394 10.0% Room 4,163 3,874 7.5% F&B 1,188 1,136 4.6% Holiday Activity & Others 2,841 3,274 -13.2% Interest & Ot
Slide 42: Impact of Ind AS 116 - Standalone
Impact of Ind AS 116 - Standalone (Rs. in lakhs) Standalone (Unaudited) Quarter ended Quarter ended June 30, 2019 June 30,2018 Sl. No Particulars Amount without Amount without Impact of Ind AS As reported adoption of Ind adoption of Ind 116 AS 116 AS 116 1. Profit prior to Rent, Finance cost, Deprec
Slide 43: Profit & Loss Statement – Q1 FY'20
Profit & Loss Statement – Q1 FY’20 Rs. In Lakhs As reported (With impact of IND AS 116) Without impact of IND AS 116 Particulars Q1 FY20 Q1 FY19 YoY Gr Q1 FY20 Q1 FY19 YoY Gr Revenue from Operations 25,055 23,454 6.8% 25,055 23,454 6.8% Non-Operating Income 1,427 779 83.1% 1,427 779 83.1% Total Inco
Slide 44: Summarized Balance Sheet
Summarized Balance Sheet Rs. in Lakhs Description As at 30 June 2019 * As at 31 March 2019 ASSETS Property, Plant & Equipment 2,03,009 2,02,146 Right of Use Asset (IND AS 116) 18,549 - Trade receivables 1,66,868 1,62,091 Cash and cash equivalents (regrouped) 65,490 57,193 Deferred Tax (Net) 43,451 4
Slide 45: Awards & Accolades
Slide 46: Awards & Accolades
Awards & Accolades We are in the TOP 50 companies to work for as per the rankings released by GREAT PLACE TO WORK ! 2019 2018 2017 41 66 98
Slide 47: Awards & Accolades
Awards & Accolades Consecutive winners of Porter Accredited with 31 Gold crown Prize for Creating Distinctive resort status Value in Business (2017 & 2018) Recognized as India’s Most Recognized with Golden Peacock Popular Resort Chain - Award for Sustainability in 2018 2019 Significant Achievement i
Slide 48: HCRO We Create and Sell Dream Holidays
HCRO We Create and Sell Dream Holidays
Slide 49: Key Facts
Key Facts ▪ Holiday Club Resorts is the largest vacation ownership company in Europe and the leading leisure travel company in Finland ▪ A total of 33 resorts - 25 in Finland, 2 in Sweden, 6 in Spain ▪ Mahindra Holidays owns 96.47% of HCR Oy ▪ ~60,000 families and over 1,100 companies own HCR timesh
Slide 50: Holiday Club Concept
Timeshare bw Meetings Activities Treatments Food&Wine Entertainment FHloliday@ Club
Slide 51: Core Competencies
Core Competencies ◼ Spa hotel business ◼ Marketing and sales ◼ Resort management ◼ Design of holiday houses and apartments
Slide 52: Figures of the Resorts
Figures of the Resorts Spa Hotels 8 Other Holiday Resorts 25 Hotel Rooms 1,149 Timeshare apartments 1,560 Villas Apartments 600 Restaurants & Bars 44 Aqua Parks with Saunas 8 Spa Treatment Departments 8 Golf Courses 4 Angry Birds Activity Parks 4 Shopping Centre 1
Slide 53: Resort Map
Resort Map Resorts x : SE ne on, G Spa hotel Sabainents 0 Villas esc qge. Holiday Club pp.kk.vwww
Slide 54: Northern lights in winter
Northern lights in winter https://www.youtube.com/watch?v=Lc3FxNXjBs0
Slide 55: Midnight sun in summer
Midnight sun in summer
Slide 56: The magical blue moment in winter
The magical blue moment in winter
Slide 57: Nature - Clean air and thousands of lakes
Nature - Clean air and thousands of lakes
Slide 58: Ease
Ease pp.kk.vvvv
Slide 59: The real Santa lives in Finland
The real Santa lives in Finland
Slide 60: Financial Performance
Financial Performance Holiday Club
Slide 61: Turnover : Q1 2019-20
Turnover : Q1 2019-20 Turnover by Business Areas Euro Mn HCRO Particulars Q1 FY20 Q1 FY19 Timeshare 9.44 8.90 Service Sector 15.47 14.51 Renting 1.50 1.40 Real Estate Management 1.50 1.45 Villa 7.31 2.98 Other Sales 0.45 0.50 Other Income 1.33 1.19 37.00 30.93 Nos are as per FAS Accounts
Slide 62: P/L Q1 2019-2020
P/L Q1 2019-2020 Q1 highlights Euro Mn Particulars Q1 FY20 Q1 FY19 Turnover 37.00 30.93 Operating Profit (0.67) (3.11) Less: Depreciations and impairments 1.45 1.43 Add/(Less) Financial income and (expenses) (0.27) (0.27) Profit before Tax (2.36) (4.77) Add: Minority share + Extraordinary 0.29 0.28
Slide 63: Comments Q1 FY19-20
COMMENTS Q1 FY19-20 ❑ Historically Q1 and Q3 are the low seasons in Finland and Sweden ❑ HCRO has earned a revenue of 37 m€ (30.93 m€) and made a PAT of -1.66 m€ (-3.47 m€) ▪ Turnover increased by 6.07 m€ compared to prior year ▪ Average occupancy in Spa hotels increased by 20% compared to prior yea
Slide 64: Financial Performance- Consolidated
Slide 65: Segment Revenue
Segment Revenue In Rs. Lakhs Particulars Q1 - F20 * Q1 - F19 FY 18 - 19 - MHRIL 26,861 24,600 97,635 - HCRO 35,704 25,133 1,31,268 Total Segment Revenue 62,565 49,732 2,28,904 - Other unallocable revenue 48 50 662 Revenue from Operations 62,613 49,782 2,29,566 *Q1 FY20 numbers are post IND AS 116 im
Slide 66: Segment Results
Segment Results In Rs. Lakhs Particulars Q1 - F20 * Q1 - F19 FY 18 - 19 - MHRIL 2,835 2,099 9,698 - HCRO (976) (3,717) 936 Segment Results 1,859 (1,618) 10,634 - Other unallocable revenue (896) (230) (829) Total segment results 963 (1,848) 9,805 *Q1 FY20 numbers are post IND AS 116 impact 65
Slide 67: Impact of Ind AS 116 - Consolidated
Impact of Ind AS 116 - Consolidated (Rs. in lakhs) Consolidated (Unaudited) Quarter ended Quarter ended June 30, 2019 June 30,2018 Sl. No Particulars Amount without Amount without Impact of Ind AS As reported adoption of Ind adoption of Ind 116 AS 116 AS 116 1. Profit prior to Rent, Finance cost, De
Slide 68: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement In Rs. Lakhs Particulars Q1 - F20 * Q1 - F19 FY 18 - 19 Income from operations 61,132 48,974 2,23,899 Non-operating income 1,480 808 5,667 Total Income 62,612 49,782 2,29,566 Cost of Vacation Ownership weeks 12,840 4,693 30,850 Employee expenses 14,701 14,263 57,
Slide 69: Thank You
Mahindra Holidays & Resorts India — Q1 FY20 Earnings Presentation on 6ix