Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q2 FY23 Earnings Presentation
62 slides from Mahindra Holidays & Resorts India's earnings presentation, Nov 2, 2022
Slide 1: Q2 FY23 Investor Presentation
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Slide 2: Outline
Outline Highlights of MHRIL (Standalone) Performance ] — Key Trends & Business Environment Unique 6 Potable Vacation Ownership Business | MONIT OT VAS CeO J SS | Holiday Club Resorts — Business Model BC LO2E IFES Perormance | __ MURIL Consolidated - 2 & HL FY23 Financials | MHRIL — Historical Perfor
Slide 3: Club Mahindra Ashtamudi, Kerala
CLUB MAHINDRA ASHTAMUDI KERALA
Slide 4: Way Forward: Enhance revenue growth and improve earnings
• 200+ keys added in H1 FY23; • Average Unit Realization (AUR) 800+ keys added during shows steady improvement pandemic • Aided by favorable product mix • Enhanced options for members • Highest ever in Q2: through Horizon program (400+ o Member additions ~4,400 partner hotels) o Membership Sales Rs.
Slide 5: Strong Operational Performance in Q2
Strong Operational Performance in Q2 aye 4,397 79% 116 Member Additions Occupancy! Room Additions 2,73,488 Rs. 68 Crs 4,715 Cumulative Member Base Highest ever Q2 Resort Revenue Room Inventory Pioneer in Hospitality sector with ; Rs. 302 Crs Rs. 42 Crs highest number of Green Resorts in Highest ever
Slide 6: Higher Occupancy with increased Room Inventory
Higher Occupancy with increased Room Inventory; Healthy Member Addition with Sales Value Growth of 93% YoY Pe Covi ~ ~ level Member Additions TAZ 73% Pre- covial Resort level Occupancy Q2 FY20 q2Fy22' qa. Fya3t 79% occupancy despite adding ~500 rooms over the past year Q2 FY20 Q2 FY22 a2 FY23* AUR®
Slide 7: MHRIL Q2 & H1 FY23 Performance
C} ClubMahindra MHRIL Q2 & H1 FY23 Performance KANATAL UTTARAKHAND
Slide 8: Robust Business Performance Delivered in Q2 FY23
Robust Business Performance Delivered in Q2 FY23 a¢ Operational Excellence Financial Performance Q2 FY22 Q2 FY23 1 i ! 1 ! 1 ! 1 ! 1 ! 1 ! 1 ! 1 | 1 1 1 9 9, 1 Occupancy! 73% 79% ! ! I ! 1 ! 1 ! 1 ! 1 ' 1 ' 1 H 1 1 | Member Additions 3,943 4397 fi 1 1 ! 1 ! 1 ! 1 ! 1 ! 1 ! 1 ! 1 ! 1 ! 1 ! 1 ! 1 ! 1
Slide 9: Higher Member Additions and AUR Delivers Highest Ever Sales Value
Higher Member Additions and AUR delivers Highest Ever Sales Value in Quarter 2 4,397 Nos et 3,943 Robust Demand for Vacation Ownership drives Member Additions Q2FY22 Q2 FY23" + Member additions of ~4,400, highest in Quarter 2. + Member acquisitions through Referral & Digital routes at 57% in Q2 FY23
Slide 10: Highest ever Resort Revenues in Q2
Highest ever Resort Revenues in Q2 Driven by Higher "] Inventory & Occupancies a¢ “sone nn 79% | 68 13% | 51 Resort Resort Occupancy! Income (%) ' (Rs. Crs) Q2 FY22 Q2 FY23 Qa FY22 Q2 FY23 + Highest ever Resort Revenues in G2 at Rs. 68 Crs, growth of 34% YoY. + Resort Revenues driven by high occupan
Slide 11: Q2 FY22 & H1 FY22 Income, EBITDA & PBT figures note
Note: Q2 FY22 & H1 FY22 Income, EBITDA & PBT Figures exclude one-offs such as Lease Rent Waivers and Interest on Tax Refund. Q2 FY22/H1 FY22 EBITDA & PBT benefitted from lower expenditure due to reduced business activities during pandemic
Slide 12: Q2 FY22 & H1 FY22 Income, EBITDA & PBT figures note
Note: Q2 FY22 & H1 FY22 Income, EBITDA & PBT figures exclude one-offs such as Lease Rent Waivers and Interest on Tax Refund. Q2 FY22/H1 FY22 EBITDA & PBT benefitted from lower expenditure due to reduced business activities during pandemic
Slide 13: Profit Margin expands driven by Revenue Growth & Cost Optimization
Profit Margin expands (vs pre-pandemic) driven by Revenue Growth & "] Cost Optimization EBITDA Margin PBT Margin 19 13.8% Q2 FY20 Q2. FY23 PAT Margin 7 i i i i i i Hi FY20 Hi FY23
Slide 14: Total Income
Quarter ended Half year ended Total Income (Rs. Lakhs) Q2 FY23 Q2 FY22 YoY H1 FY23 H1 FY22 YoY Income from Vacation Ownership 11,102 9,670 14.8% 21,898 18,705 17.1% ASF Income 8,436 7,618 10.7% 16,291 15,125 7.7% Interest & Others 2,045 1,403 45.8% 3,780 3,029 24.8% Total VO Income 21,583 18,691 15.
Slide 15: Profit and Loss Statement
Rs. In Lakhs Quarter ended Half year ended Q2 Q2 H1 H1 Particulars YoY Gr YoY Gr FY23 FY22 FY23 FY22 Revenue from Operations 28,360 23,766 19.3% 57,147 43,440 31.6% • Non-Operating Income 1,820 1,604 13.5% 3,455 3,192 8.2% Interest Income from IT Refund - 444 - 444 Income From Lease Rent waivers - 7
Slide 16: Strong Balance Sheet
Strong Balance Sheet Deferred Strong Cash 1 Strong Asset Revenue Position Base Rs. 5,199 Cr Rs. 1,018 Cr Rs. 2,331 Cr Q2 net addition Post MHR Includes Land (Mauritius) Ltd. loan repayment of 25 ME Cr and excludes Long- Term Leases valued at Holdings Rs. 368 Cr ' valued at Rs. 1,233 RS 63Cr In July'
Slide 17: Balance Sheet as on 30 Sep 2022
In Rs. Lakhs Description As on As on th st 30 Sep 2022 31 March 2022 ASSETS Property, Plant and Equipment 233,052 229,203 Right of Use Asset (IND AS 116) 36,771 26,781 Trade receivables 114,118 112,817 Cash and cash equivalents (regrouped) 101,809 117,156 Deferred Tax (Net) 19,192 19,314 Deferred Ac
Slide 18: Club Mahindra Kanha, Madhya Pradesh
CLUB MAHINDRA KANHA MADHYA PRADESH
Slide 19: Key Trends
Key Trends Muted consumer durable spends ee-bny ee-dy Te-09d Te Bny 2012) Te-ady 02-98 oz-bny 02 Ady 61-99 Consumer Durables, (Base 2011. 6t-Sny in Q2 Domestic Passengers (in million: Domestic Airline Passenger Traffic has shown improvement ) ee-dyv T2-AON Je-ung T2-uet o2-5ny O¢-4eWw 61-20 RBI Cons
Slide 20: Indian Hospitality Sector's key metrics show significant recovery
Indian Hospitality Sector’s key metrics shows significant recovery ¥v post omicron wave & continues to grow ¢ ClubMahindra 2) =z > 7, ” . . 2 > Highest Occupancy hed 66% Highest ADR since FY21 Eg Reaching Pre-pandemic levels i pancy reached 667 in India reached ADR of Rs. 5,950 in Aug'22 In FY20, O
Slide 21: Leisure Accommodation garnering a premium to Business accommodation
Leisure Accommodation is garnering a significant premium to Business Vv accommodation on the back of strong domestic travel demand a¢ ClubMahindra ADR Ratio: Leisure Hotels vs Business Hotels Leisure hotels are commanding a substantial premium (>2X) to Business hotels 15 1 13 4 + 0 © 4 2 3 I 4 a 5 a
Slide 22: Emerging Travel Trends in the Indian Hospitality Sector
Emerging Travel Trends in the Indian Hospitality Sector a. Seeking the ™, Family Bonding PS Outdoors === Newfound Vacation Fa Ideas C} ClubMahindra > Curated Experiences & DIY Packages Long periods of staying indoors have led to vacationers wanting to enjoy nature and an increase in outdoor activiti
Slide 23: MHRIL well-positioned to capitalize on consumer preferences
MHRIL is well-positioned to capitalize on varying consumer Vv preferences in the post Covid Era ie pandemic has led to certain trends emerging in the Indian Hospitality indust Revenge Tourism due to pent-up demand for leisure travel after easing of travel restrictions Importance of holiday and rejuv
Slide 24: Unique & Profitable Vacation Ownership Business
ov ClubMahindra MHRIL Unique & Profitable Vacation Ownership Business 24
Slide 25: A Large & Attractive Market for Vacation Ownership in India
A Large & Attractive Market for Vacation Ownership in India There is a huge potential target market for VO as household income grows... Vv BE sen « ~3 Crs High-income Households with an annual income > Rs. 27.5 lakhs expected by CY30 « Rs. 55 Lakh Crs Annual Consumption from high-income households b
Slide 26: Unique and sustainable Vacation Ownership business, #1 Leisure Hospitality player
Over 25 years, MHRIL has created a unique and sustainable Vacation Ownership business and is the #1 Leisure Hospitality oY. player in the country A ctr MHRIL Vacation Ownership business consists of .. ..with unique competitive advantages Strong economic model and difficult to replicate oO aot ® Club
Slide 27: Multi-Year Sources of Value Creation in Vacation Ownership
Multi-Year Sources of Value Creation in Vacation Ownership across v.. the Tenure of the Membership a¢ New member joins Vacation Ownership Income |_| * Membership Fee over the entire tenure of membership + Interest Income Annual Subscription Fee (ASF) + Recurring fees + Adjusted for inflation Club Ma
Slide 28: Membership products: CMH, Bliss, GoZest
CMH – 25 years, 7 nights per year • • • • • • Bliss - 10 Years, Points Based Membership • • • • • • GoZest! - 3 Years, Points Based Membership • • • • • •
Slide 29: 4,700+ rooms across 86 Resorts
33 Timeshare/Spa 4,700+ rooms across 86 Resorts Hotel Destinations in Europe
Slide 30: Growing footprint of resorts with varied choices
Growing footprint of resorts with varied choices available ") to our members bod LADAKH SRINAGAR ¥- MANALI vawoacnat 1 TANATAL “J YBINSAR MUSSOORIE CORBETTTT NAUKUCHIATAL DHARMASHALA ‘NALDHERA RISHIKESH PUSHKAR Tacra TaaIsALMER TOAIPUR JODHPURT TRANTHAMBORE TKUMBALGARH Sg oun aout APR soya AHMEDABAD
Slide 31: Our Business Model is Differentiated
Our Business Model is Differentiated * Memorable family experiences o New & popular destinations across India & abroad Range of culinary options o ‘Happy Hub’ catering to entire family with indoor & outdoor games and other experiences Wellness & Spa experiences o Soft adventure activities ° ° Portfo
Slide 32: Club Mahindra Manali, Himachal Pradesh
CLUB MAHINDRA MANALI HIMACHAL PRADESH
Slide 33: Strategy to Drive Consistent Growth
Strategy to Drive Consistent Growth ov. Accelerate Room Inventory Additions Improve Operational Efficiencies Grow Cumulative Member Base | Strategic Tenets Customer Experience Strengthen Brand Digital Pull Transformation 4 Deliver Superlative
Slide 34: Robust Inventory Addition
Robust Inventory Addition Vv Total Room Inventory ClubMahindra in Nos 3a72 3595 3.732 3,152 2,816 2,879 FY23 FY24 FY25 Estimated FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Actual We have planned to achieve room inventory of 5,500+ keys over the next 2-3 years
Slide 35: Accelerate Member Additions
Accelerate Member Additions a ——*1—————EEE— mn st Saag = Scale up resort onsite sales teams to acquire new members and upgrade existing members (4 ) Accelerate customer acquisition by expanding geographical reach 35
Slide 36: Creating New & Innovative Customer Experiences
Creating New & Innovative Customer Experiences ¥v Janmashtami & Ganpati celebrations in Maharashtra TIT, ; . Independence Day Celebration (at all resorts) Masala Chowk at Naldehra Oceanic Theme at Puducherry L ae Herbal Garden Tour at Derby, Ooty Rocksport Happy Hub Experiences B-live Cultural tours
Slide 37: Strengthening Brand Pull through Targeted Marketing Campaigns
Strengthening Brand Pull through Targeted Marketing Campaigns — Q2 FY23 Campaign Objective & Theme: Afterall Moms know best i perspective of a mother. q ed : : The campaign is based on the insight that if Holidays feel like a breeze, it ; ot . is because of the little things that mothers take care o
Slide 38: ESG Initiatives
ASSONORA GOA P ) ESG Initiatives
Slide 39: Our Sustainability Journey
Our Sustainability Journey a. C} ClubMahindra Jal Jivan Initiative - improve efficiency of water utilization through 4 R principle (Reduce, Reuse, Recycle, Rainwater harvesting) * Achieve Carbon Neutrality by 2040 o RE100 (100% Renewable Energy by 2050) © EP100 (Double the Energy Productivity by 203
Slide 40: CSR efforts: Environmental Sustainability, Women's Empowerment & Skill Development
We drive our CSR efforts to bring positive change in our society with a ¥ focus on: Environmental Sustainability, Women's Economic Empowerment & Skill Development C} ClubMahingra © Promoting Education Women Empowerment * — Project Udaan: Skilling 80 women in Hospitality sector (F&B Steward role) & i
Slide 41: Holiday Club Resorts (HCR)
Slide 42: Accommodation industry in Nordic countries continuing to grow
The Accommodation industry in Nordic countries is ¥v continuing to grow at a CAGR of 9% between 2022-2027 AS. Paid accommodation industry revenue in Nordic countries Revenue in Euro Bn Projections CCAGR 49%) +9% 19 2020 2021 2022E 2023E 2024E 2025E 2026E 2027E Source: Statista Actual until 2021, For
Slide 43: HCR — A Leading Timeshare Company
HCR — A Leading Timeshare Company ay HCR's business consists of .. ..with unique competitive advantages ier In Finland, leader in Timeshare owner base wooo zo Destinations in Finland, Timeshare owners! of TS & Villas Widespread network of Spa resorts with varied experiences 33 Timeshare 60,000+ ~19,
Slide 44: HCR Business Model — Finland
HCR Business Model — Finland v ClubMahindra Spa hotels and resorts are open for all visitors — timeshare owners are essential and frequent visitors * Large resort-style destinations with various room types, restaurants, waterparks/spa, & leisure activities generating consistent revenue streams * Tim
Slide 45: HCR's Robust Business Model delivered healthy turnover and EBITDA
HCR’s Robust Business Model delivered more than € 150 mnof Turmover per annum and healthy EBITDA except in FY21 & FY22 %C.... which was impacted due to Covid-19 Revenue (€ Mn) EBITDA (€ Mn) 161.9 165.0 161.1 1573 12.0 122.1 i [ i ; i | | (03) FY17 FY19 FY20 FY21* FY22* (8.9) FY17 FY18 FY19 FY20 FY21
Slide 46: HCR has significantly reduced its debt since acquisition
HCR has significantly reduced its debt since acquisition and generated healthy cash Net Debt (€ Mn) flows from operations a Operating Cash Flows (€ Mn) SL7 ~~ 259 ~~~ 215 : 6 Sep-14 Fy2i* FY22* FY17 ro Fy22* z 4) Note: Financials are as per Finnish Accounting Standards (FAS) 46
Slide 47: Holiday Club Q2 & H1 FY23 Performance
Holiday Club Qe & H1 FY23 Performance
Slide 48: Revenue by segment: Timeshare, Spa Hotels, Renting
Particulars (Euro Mn) Q2 FY23 Q2 FY22 H1 FY23 H1 FY22 • Timeshare 8.7 7.8 17.7 13.2 • Spa Hotels 22.8 19.6 41.3 27.9 Renting 3.2 3.3 5.7 5.2 Real Estate Management 1.6 1.6 3.2 3.2 • Villas 0.8 0.6 1.7 1.4 Other Income 0.0 1.6 1.0 4.6 Revenue 37.1 34.5 70.6 55.5 Revenue (excl. one-offs) 37.1 32.6 69.
Slide 49: HCR Profit and Loss
Particulars (Euro Mn) Q2 FY23 Q2 FY22 H1 FY23 H1 FY22 Turnover 37.1 34.5 70.6 55.5 • Operating Profit / (Loss) 1.9 3.9 0.4 0.4 Less: Depreciation and Amortisation Expense 1.1 1.2 2.2 2.4 (Add)/Less Financial (Income) and Expenses 0.2 0.2 0.4 0.5 Profit / (Loss) before Tax 0.6 2.5 (2.2) (2.5) • Add/
Slide 50: HCR: Performance & Outlook
HCR: Performance & Outlook a. C} ClubMahindra * Despite Russia-Ukraine War which adversely affected consumer confidence and had inflationary impact on food, electricity and fuel prices, HCR delivered robust business performance in Q2. * In the face of input cost pressures, HCR delivered a positive E
Slide 51: MHRIL Consolidated Q2 & H1 FY23 Financials
CLUB MAHINDRA POOVAR. & ClubMahindra Garg MHRIL et o = Consolidated :; Q2 & Hi FY23 he — Financials 51
Slide 52: Segment Revenue and Results
Quarter ended Half year ended Particulars (Rs. Lakhs) Q2 FY23 Q2 FY22 H1 FY23 H1 FY22 - MHRIL 30,519 27,225 61,282 49,013 - HCRO 31,061 32,104 63,139 52,145 Total Segment Revenue 61,580 59,329 124,421 101,158 - Others 1,137 - 1,998 - Total Income** 62,717 59,329 126,419 101,158 Quarter ended Half ye
Slide 53: Consolidated Profit and Loss
Quarter ended Half year ended Particulars (In Rs. Lakhs) Q2 FY23 Q2 FY22 H1 FY23 H1 FY22 Income from Operations 59,837 54,640 120,322 91,728 Non-Operating Revenue 2,880 4,689 6,097 9,430 Total Income** 62,717 59,329 126,419 101,158 Cost of vacation ownership weeks 4,119 4,823 9,983 8,311 Employee be
Slide 54: Club Mahindra Mashobra, Himachal Pradesh
CLUB MAHINDRA MASHOBRA HIMACHAL PRADESH
Slide 55: Large base of committed members continues to grow
Large base of committed members continues to grow aye In FY22, Cumulative Member Base is ~2.66 Lakhs with 85% of Fully Paid Members Total Member Base 1,99,617 2,18,138 2,358,792 2,43,574* 2,58,336 2,54,431" 2.65,980 191,615 208,967 225,838 162,875 17.277 145,960 Fully Paid 141,947 Members (in nos. a
Slide 56: Member Acquisition & Holidaying improved in FY22
With an uptick in travel sentiment, Member Acquisition "] & Holidaying improved in FY22 vs FY21 qS. sana Customer Acquisition teint fete [level at Preferences Customer acquisitions 58% _ through referral and digital route ° Members holiday in a 36% | group of 4 or more 3.2 Room nights per stay New m
Slide 57: Investment in Room Inventory with High Occupancy and growing Cash
Investment in Room Inventory continues with High "] Occupancy Levels and a growing Cash position a¢ ClubMahindra Occupancy | 81% 85% 85% 83%* 80%* T2%* TA%* 4568 4.500 1,400 4,000 tre #200 ; 3,732 940 1,000 3,500 3,152 781 800 3,000 2,879 600 ji 331 356 2,500 ry 266 r 267 . g3116 I lj 200 2,000 all
Slide 58: Historical Performance notes
1. Includes one-offs such as Lease Rent Waivers; 2. Includes one-offs such as Profit from Sale of Investment (Nreach) of Rs. 26.3 Crs, Lease Rent Waivers & Interest on IT Refund
Slide 59: Annuity revenue streams
IND AS 18 IND AS 115 Our cumulative member base provides us with multiple annuity revenue streams which are predictable, such as VO Income (including Upgrades), ASF Income, Resort Income, and Interest Income VO Income Resort Income ASF Income Interest Non Operating Income
Slide 60: Historical margins
1. FY21 margins includes one-offs such as Lease Rent Waivers. 2. FY22 margins includes one-offs such as Profit from Sale of Investment (Nreach), IT Refund & Lease Rent Waivers 3. Before one-time transition impact of Rs. 199.7 Crs due to adoption of lower corporate tax rate in Q4FY20
Slide 61: Forward looking statements disclaimer
a 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 vi
Slide 62: Awards and closing
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Mahindra Holidays & Resorts India — Q2 FY23 Earnings Presentation on 6ix