Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q4 FY19 Earnings Presentation
66 slides from Mahindra Holidays & Resorts India's earnings presentation, May 15, 2019
Slide 1: Cover letter: Presentation on Financial Results for Q4 and FY ended March 31, 2019
41111 ); 41111 :lubMahindra May 15, 2019 MHRIL/SE/19-20/ 15 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
Slide 2: Q4 FY19 Investor Presentation
Slide 3: Disclaimer
Disclaimer ▪ This note has been prepared exclusively for the benefit and internal use of the recipient and does not carry any right of reproduction or disclosure. Neither this note nor any of its contents maybe used for any other purpose without the prior written consent of Mahindra Holidays & Resor
Slide 4: Contents
AP Sevrsermar Contents Unique Leadership Impact of Q4 FY19 Business Model Position m Transition to Results Vacation IND AS 115 Update Ownership
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: Status
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 IND AS 115 Deferred Strong Cash Receivables Strong Asset Revenue Position Base Rs. 5,239 Cr Rs. 572 Cr Rs. 1,621 Cr Rs. 1,793 Cr Income which Organic Growth Opportunity for 61 Resorts will be can be met Inorganic recognized over without relying growth thr
Slide 10: Unique Business Model - Consistently High Occupancy
Unique Business Model - Consistently High Occupancy 4,000 85% 85% 83%* 90% 81% 82% 3,700 3,595 3,472 70% 3,400 3,152 50% 3,100 2,879 2,816 30% 2,800 2,500 10% FY15 FY16 FY17 FY18 FY19 Room Inventory (Units) Occupancy % *Low Occupancy due to unprecedented floods in Kerala & Coorg in August High occup
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 2.43 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, Mashobra ▪ Cherai ▪ Poovar ▪ Mussorie, Naukuchiatal, Srinagar ▪ Pondicherry ▪ Allepey ▪ Munnar, Ooty, Kodaikanal,
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 curated for members activities for m
Slide 15: Transition to IND AS 115
ClubMahindra Transition to IND AS 115 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: Operating Performance
Slide 19: Q4 FY19 Performance
Q4 FY19 Performance IND AS 18 Membership Margin Base Member Addition PBT Margin 5,671 23.4% Resort Occupancy Income Levels Resort Income Occupancy 83.7% Rs. 55 Cr 18
Slide 20: FY19 Performance
FY19 Performance IND AS 18 Membership Margin Base Member Addition PBT Margin 18,377 20.6% Resort Occupancy Income Levels Resort Income Occupancy 82.9% Rs. 220 Cr 19
Slide 21: Key Indicators
Key Indicators Key indicators (No) FY19 FY18 Cumulative Member Base 2,43,574* 2,35,792 * Net of one-off cancellation of 9,556 overdue members & retirement of 1,039 members Resort Details FY19 FY18 No of Resorts 61 55 No of Rooms 3,595 3,472 Occupancy % 83% 85% 20
Slide 22: Member Additions
Member Additions Member Addition Trend Cumulative Member Base 2,43,574* 2,35,792 18,557 18,377 2,18,138 18,225 16,185 1,99,617 1,83,431 12,813 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 * Net of one-off cancellation of 9,556 overdue members & retirement of 1,039 members 21
Slide 23: Occupancy Trend
Occupancy Trend Occupancy Trend 85% 85% 82% *83% 81% FY 15 FY 16 FY 17 FY 18 FY 19 *Low Occupancy due to unprecedented floods in Kerala & Coorg in August 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: Financial Performance
Slide 26: Income Trend
Income Trend VO Income Resort Income IND AS 18 In Crs +6% 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 In Crs In Crs +11% +14% 109 240 89 93 210 217 173 64 67 156 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 2
Slide 27: Performance Trend
Performance Trend IND AS 18 Total Income EBITDA Margin PBT Margin 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 26
Slide 28: Profitability
Profitability 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 27
Slide 29: Income Break Up – Q4 FY'19
Income Break Up – Q4 FY’19 Rs in Lakhs Ind AS 115 Ind AS 18 Ind AS 18 Growth Particulars Q4 FY19 Q4 FY19 Q4 FY18 YoY Income from Vacation Ownership 8,509 16,675 16,417 1.6% ASF 6,909 6,376 5,804 9.8% Resort Income 5,481 5,481 4,956 10.6% Room 1,223 1,223 966 26.6% F&B 3,248 3,248 2,995 8.5% Holiday
Slide 30: Profit & Loss Statement – Q4 FY'19
Profit & Loss Statement – Q4 FY’19 Rs in Lakhs Ind AS 115 Ind AS 18 Ind AS 18 Growth Particulars Q4 FY19 Q4 FY19 Q4 FY18 YoY Revenue from Operations 23,829 31,384 29,615 6.0% Non-Operating Income 1,384 1,384 984 40.6% Total Income 25,213 32,768 30,599 7.1% Employee Benefit Expenses 6,508 7,372 6,432
Slide 31: Income Break Up – FY'19
Income Break Up – FY’19 Rs in Lakhs Ind AS 115 Ind AS 18 Ind AS 18 Growth Particulars FY 19 FY 19 FY 18 YoY Income from Vacation Ownership 31,546 55,658 54,494 2.1% ASF 26,140 24,040 21,668 10.9% Resort Income 21,971 21,971 20,927 5.0% Room 4,631 4,631 4,036 14.7% F&B 13,386 13,386 12,931 3.5% Holid
Slide 32: Profit & Loss Statement – FY'19
Profit & Loss Statement – FY’19 Rs. in Lakhs Ind AS 115 Ind AS 18 Ind AS 18 Growth Particulars FY19 FY19 FY18 YoY Revenue from Operations 91,829 112,521 106,419 5.7% Non-Operating Income 4,515 4,515 3,000 50.5% Total Income 96,344 117,036 109,419 7.0% Employee Benefit Expenses 24,850 27,044 24,284 F
Slide 33: Income Break up - Sequential
Income Break up - Sequential Rs in Lakhs Ind AS 115 Ind AS 18 Particulars Q4 FY19 Q3 FY19 Q4 FY19 Q3 FY19 Income from Vacation Ownership 8,509 7,680 16,675 12,364 ASF 6,909 6,703 6,376 6,214 Resort Income 5,481 5,838 5,481 5,838 Room 1,223 1,220 1,223 1,220 F&B 3,248 3,583 3,248 3,583 Holiday Activi
Slide 34: Profit & Loss Statement - Sequential
Profit & Loss Statement - Sequential Rs in Lakhs Ind AS 115 Ind AS 18 Particulars Q4 FY19 Q3 FY19 Q4 FY19 Q3 FY19 Revenue from Operations 23,829 23,606 31,384 27,211 Non-Operating Income 1,384 1,081 1,384 1,081 Total Income 25,213 24,687 32,768 28,292 Employee Benefit Expenses 6,508 6,253 7,372 6,41
Slide 35: Movement of Deferred Revenue
Movement of Deferred Revenue Rs In Lakhs Mar'19 Annual Subscription Particulars Vacation Ownership Total Fee Opening Balance 493,103 12,239 505,342 i) Addition during the year 71,295 27,643 98,938 ii) Impact of one off cancellation of overdue members (22,107) (556) (22,663) iii) Income recognized du
Slide 36: Revenue Visibility – Deferred Revenue – Vacation Ownership
Revenue Visibility – Deferred Revenue – Vacation Ownership Rs in Lakhs Time Band As at Mar'19 < 1 Year - Vacation Ownership 34,112 1 - 2 Year 33,812 2 - 3 Year 33,329 3 - 4 Year 33,019 4 - 5 Year 32,878 > 5 Year 343,595 Total 510,745 35
Slide 37: Summarized Balance Sheet
Summarized Balance Sheet Rs. in Lakhs Ind AS 115 Ind AS 18 Description As at 31 Mar 19 As at 31 Mar 19 As at 31 Mar 18 ASSETS Property, Plant & Equipment 202,146 202,146 96,774 Trade receivables 162,091 141,440 143,396 Cash and cash equivalents 57,193 57,193 46,964 Deferred Tax 42,555 (27,398) 1,348
Slide 38: Note
NOTE The financial results of the Company have been prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and the other accounting principles generally accepted in India. a) The M
Slide 39: Ind AS 115 – Reconciliation for Q4 FY'19
Ind AS 115 – Reconciliation for Q4 FY’19 Rs In Lakhs Quarter ended March Quarter ended March 31, 2019 31, 2018 Sl. No Particulars Amount without As reported under Impact of Ind AS Amount without adoption of Ind AS IND AS 115 115 adoption of Ind AS 115 115 1. Revenue from Operations 23,829.32 7,554.5
Slide 40: Ind AS 115 – Reconciliation for Q4FY19
Ind AS 115 – Reconciliation for Q4FY19 Rs In Lakhs Contd.. Quarter ended March Quarter ended March 31, 2019 31, 2018 Sl. No Particulars Amount without As reported under Impact of Ind AS Amount without adoption of Ind AS IND AS 115 115 adoption of Ind AS 115 115 8. Profit after tax for the period (6-
Slide 41: Ind AS 115 – Reconciliation for FY19
Ind AS 115 – Reconciliation for FY19 Rs In Lakhs Year ended March 31, Year ended March 31, 2019 2018 Sl. No Particulars Impact of Ind AS Amount without Amount without As reported 115 adoption of Ind AS 115 adoption of Ind AS 115 1. Revenue from Operations 91,829.15 20,691.68 112,520.83 106,418.57 2.
Slide 42: Ind AS 115 – Reconciliation for FY19
Ind AS 115 – Reconciliation for FY19 Rs. In Lakhs Contd.. Year ended March 31, Year ended March 31, 2019 2018 Sl. No Particulars Amount without As reported under Impact of Ind AS Amount without adoption of Ind AS IND AS 115 115 adoption of Ind AS 115 115 8. Profit after tax for the period (6-7) 6,38
Slide 43: Operating Cash continues to grow
Operating Cash continues to grow Rs In Crs 400 350 332 300 291 250 266 Rs. 1,005 Crs Cumulative operating Cash since 200 FY16 150 116 100 50 0 FY16 FY17 FY18 FY19 42
Slide 44: 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 45: HCRO: We Create and Sell Dream Holidays
HCRO We Create and Sell Dream Holidays
Slide 46: Key Facts
Key Facts ▪ Established in 1986, 30th anniversary in 2016 ▪ 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, including 7 Spa Hotel resorts • 2 in Sweden, including 1 Spa Hotel resort •
Slide 47: Holiday Club Concept
Timeshare bw Meetings Activities Treatments Food&Wine Entertainment Holiday Club
Slide 48: Core Competencies
Core Competencies ◼ Spa hotel business ◼ Marketing and sales ◼ Resort management ◼ Design of holiday houses and apartments
Slide 49: Figures of the Resorts
Figures of the Resorts Spa Hotels 8 Other Holiday Resorts 25 Hotel Rooms 1,149 Timeshare apartments 1,458 Villas Apartments 536 Restaurants & Bars 45 Aqua Parks with Saunas 8 Spa Treatment Departments 8 Golf Courses 4 Angry Birds Activity Parks 4 Shopping Centre 1
Slide 50: Resort Map
Resort Map Resorts = Apartments ™ Spa hotel + apartments © Spa hotel + apartments, + Villas Holiday Club
Slide 51: Northern lights in winter
Northern lights in winter
Slide 52: Midnight sun in summer
Midnight sun in summer
Slide 53: The magical blue moment in winter
The magical blue moment in winter
Slide 54: Nature - Clean air and thousands of lakes
Nature - Clean air and thousands of lakes
Slide 55: Finland ranked as the happiest country in the World
Finland ranked as the happiest country in the World
Slide 56: Access
Access
Slide 57: The real Santa lives in Finland
The real Santa lives in Finland
Slide 58: Financial Performance
Financial Performance Holiday Club
Slide 59: Turnover: 2018-19
Turnover : 2018-19 Turnover by Business Areas* Euro Mn HCRO Particulars 2018-19 2017-18 Timeshare 44.73 44.17 Service Sector 70.69 69.49 Renting 7.08 6.51 Real Estate Management 5.65 5.63 Villas 24.28 31.17 Other Sales 2.13 1.88 154.56 158.85 Turnover by Market Areas* Euro Mn HCRO Particulars 2018-1
Slide 60: P/L 2018-2019: Country Wise Financial Highlights
P/L 2018-2019 COUNTRY WISE FINANCIAL HIGHLIGHTS - 2018-2019* Particulars Finland Sweden Spain Russia Total Turnover 125.10 19.89 9.57 - 154.56 Other operating income 4.98 0.97 0.08 - 6.03 Operating Profit 7.00 (0.81) 1.21 (0.10) 7.30 Less: Depreciations and impairments 4.09 0.64 0.99 - 5.72 Add/(Les
Slide 61: Comments
COMMENTS ❑ HCRO has earned a revenue of 154.6 m€ (158.9 m€) and made a PAT of 0.5 m€ (4.7 m€). ▪ Turnover decreased by -4.3 m€ compared to prior year. • Exceptionally warm summer • Delay in completion of projects due to a problem with contractor in Sweden ▪ Turnover in all other business areas excep
Slide 62: Financial Performance- Consolidated
Slide 63: Segment Revenue
Segment Revenue In Rs. Lakhs Particulars 12M - F19 12M - F19 12M - F18 Under Under Under IndAS 115 IndAS 18 IndAS 18 - MHRIL 97,635 118,408 109,957 - HCRO 131,269 130,211 124,969 Total Segment Revenue 228,904 248,619 234,926 - Other unallocable revenue* 662 326 132 Revenue from Operations 229,566 24
Slide 64: Segment Results
Segment Results In Rs. Lakhs Particulars 12M - F19 12M - F19 12M - F18 Under Under Under IndAS 115 IndAS 18 IndAS 18 - MHRIL 9,698 24,297 20,489 - HCRO 936 2,223 6,709 Segment Results 10,634 26,520 27,198 - Other unallocable revenue (829) (829) (1,401) Segment Results before translation difference 9
Slide 65: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement In Rs. Lakhs Particulars 12M - F19 12M - F19 12M - F18 Under Under Under IndAS 115 IndAS 18 IndAS 18 Income from operations 223,899 243,724 231,692 Non-operating income 5,667 5,667 3,366 Total Income 229,566 249,391 235,058 Cost of Vacation Ownership weeks 30,850
Slide 66: Thank You
Mahindra Holidays & Resorts India — Q4 FY19 Earnings Presentation on 6ix