Indian Hotels Co. Ltd. · NSE:INDHOTEL
Indian Hotels — The Indian Hotels Company — Q4 FY2020/21 Earnings Presentation
48 slides from Indian Hotels's earnings presentation, May 1, 2021
Slide 1: Cover letter to BSE and NSE
May 1, 2021 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza 1 s t Floor, New Trading Ring, Bandra Kurla Complex Rotunda Building, P. J. Towers, Bandra (E) Dalal Street, Fort, Mumbai 400 051 Mumbai – 400 001 Symbol: INDHOTEL Scrip Code: 500850 Kin
Slide 2: Global Conference Call Q4 FY 2020/21 Results
GLOBAL CONFERENCE CALL Q4, FY 2020/21 RESULTS | 1st MAY, 2021
Slide 3: Re-imagined Chambers launched at Taj Mahal Delhi
THE RE-IMAGINED CHAMBERS LAUNCHED AT TAJ MAHAL DELHI 2
Slide 4: South-East Asia's first all women managed luxury service residences
LAUNCHING SOUTH-EAST ASIA’s FIRST ALL WOMEN MANAGED LUXURY SERVICE RESIDENCES 3
Slide 5: Key milestone: 200 hotel portfolio in India
KEY MILESTONE: 200 HOTEL PORTFOLIO IN INDIA No. Of Hotels In India DOMESTIC PORTFOLIO OPERATIONAL 63 13 20 54 150* PIPELINE 12 3 11 24 50 TOTAL 75 16 31 78 200 The TOTAL PORTFOLIO including international hotels stands at 221 HOTELS *with the launch of Taj Wellington Mews 4
Slide 6: Industry leading pipeline, highest signings, highest openings
INDUSTRY LEADING PIPELINE, HIGHEST SIGNINGS, HIGHEST OPENINGS 2020 Brand Signings*: 2020 Brand Openings*: * Source: Indian Hospitality Industry Overview 2020, HVS Anarock 5
Slide 7: Enveloping India: #1 hospitality company
IHCL 13 hotels 13 hotels 10 hotels lity Industry 2 1020 Re 3 hotels 14 hotels ——1 hotel verview 2020 | * Enveloping India #1 Hospitality Company in the Country 90+ locations in India 100+ locations hotel —4@ globally 17 International hotels
Slide 8: COVID-19: An unprecedented challenge
COVID-19: AN UNPRECEDENTED CHALLENGE 59% 64% RevPAR RevPAR decline EUROPE decline NORTH AMERICA ₹ 90,000 crores revenue loss ↓57% - 59% drop in RevPAR 56% 71% ↓30 pp+ drop in Occupancies RevPAR RevPAR ↓18% - 20% drop in ADR decline MENA decline ASIA PACIFIC Source: *Indian Hospitality The Stats & Pu
Slide 9: Rising to the occasion
RISING TO THE OCCASSION • Health & Well-being • Serving the Nation • Positivity & Hope • Care of Employees CHANGE AGENTS CREATIVITY • New Business Models • New Ways of Working • Innovative Campaigns • Corporate Overheads • Embracing Digital • Salary Contributions • One IHCL One Tata • Beyond Call of
Slide 10: Pressed the reset button to navigate through the crisis
PRESSED THE RESET BUTTON TO NAVIGATE THROUGH THE CRISIS 9
Slide 11: R.E.S.E.T 2020 initiatives: Revenue
R.E.S.E.T 2020 INITIATIVES REVENUE 1.Promotions & focus on domestic tourism 2.F&B innovations 3.Quarantine, medical & BCP business ₹ 264 Cr 4.Focus on new brands & businesses 5.Re-imagination of existing brands 10
Slide 12: R.E.S.E.T 2020 initiatives: Excellence
R.E.S.E.T 2020 INITIATIVES EXCELLENCE 1.Tajness, A Commitment Restrengthened 2.Service to the nation: 3 Mn+ Meals, Hosting Doctors 3.I-ZEST: Embracing digital #MealsToSmiles 4.Taj For Family 5.Employee-focused initiatives (Health & Safety, L&D) 11
Slide 13: R.E.S.E.T 2020 initiatives: Spend optimization
R.E.S.E.T 2020 INITIATIVES SPEND OPTIMIZATION 1.Hotel closures and phased re-opening 2.Payroll optimization 3.Reduction of hotel costs ₹ 420 Cr 4.New ways of working (A1, Cluster operations) 5.Leveraging partnerships, e.g Tata Power solar energy 12
Slide 14: R.E.S.E.T 2020 initiatives: Effective asset management
R.E.S.E.T 2020 INITIATIVES EFFECTIVE ASSET MANAGEMENT 1.Lease rental waivers and lease re-negotiations 2.Sale of non-core assets 3.Sale & manage back of Ginger hotel ₹ 70 Cr 4.Restructured holding of Taj Cape Town 5.Agreement to acquire 100% holding in ELEL 13
Slide 15: R.E.S.E.T 2020 initiatives: Thrift & financial prudence
R.E.S.E.T 2020 INITIATIVES THRIFT & FINANCIAL PRUDENCE 1.Optimization of corporate overheads 2.Deferment of renovations 3.Prudence in resource allocation ₹ 135 Cr 4.Securing funding tie-ups 5.Liquidity / cash flow management 14
Slide 16: R.E.S.E.T 2020 initiatives: Summary
R.E.S.E.T 2020 INITIATIVES: SUMMARY EFFECTIVE THRIFT & REVENUE EXCELLENCE SPEND OPTIMIZATION ASSET MANAGEMENT FINANCIAL PRUDENCE 1. Promotions & focus 1. Tajness, A 1. Hotel closures and 1. Lease rental waivers 1. Optimization of on domestic tourism Commitment phased re-opening and re-negotiations c
Slide 17: R.E.S.E.T 2020 contribution at consolidated level
R.E.S.E.T 2020 CONTRIBUTION AT CONSOLIDATED LEVEL ₹ 264 crores ₹ 420 crores ₹ 70 crores ₹ 135 crores 16
Slide 18: R.E.S.E.T 2020: Key achievements
R.E.S.E.T 2020: KEY ACHIEVEMENTS 17
Slide 19: R.E.S.E.T helped in business recovery
R E S E T R.E.S.E.T HELPED IN BUSINESS RECOVERY *Data for All Domestic Hotels incl. Ginger Revenue Recovery and Improvement in RevPAR TRevenue as a % of LY RevPAR 3,329 2,573 1,061 513 72% 52% 28% 15% Q1 Q2 Q3 Q4 18
Slide 20: IHCL outperformed across key cities
R E S E T IHCL OUTPERFORMED ACROSS KEY CITIES *Data for Domestic Hotels Incl. Ginger Enterprise RevPAR – As a % of LY Industry IHCL 52% 43% 39% 37% 34% 33% 33% 33% 30% 30% 30% 30% 28% 29% 27% 24% 25% 19% Goa Rajasthan Kolkata Chennai Pune Hyderabad Mumbai Bengaluru Delhi & NCR Source for Industry Re
Slide 21: Ginger, TajSATS: robust revenue recovery
R E S E T GINGER, TAJSATS: ROBUST REVENUE RECOVERY • Revenue for FY 2020/21 at 63% Pre-Covid Level • Over 50% market share in Q4 2020/21 • F&B Revenue doubled with focused efforts • New airline customers added during pandemic • 78 Hotel portfolio • Number of flights catered: Mar ‘21 > Mar ‘20 • EBIT
Slide 22: Focus on scaling up our Expressions brands
R E S E T FOCUS ON SCALING UP OUR EXPRESSIONS BRANDS 21
Slide 23: Continued focus on excellence & well-being
R E S E T CONTINUED FOCUS ON EXCELLENCE & WELL-BEING 22
Slide 24: Sustained cost optimization
R E S E T SUSTAINED COST OPTIMIZATION Fixed Expenses per Month 2019/20 2020/21 ↓ 28% Decline in Fixed Costs 163 118 ↓ 45% Decline in Total Costs FY *All Numbers Include Fixed Lease Costs and Fixed Corporate Overheads 23
Slide 25: New ways of working help optimize manning
R E S E T NEW WAYS OF WORKING HELP OPTIMIZE MANNING 1.53 1.14 Staff to Room Ratio – Apr 2020 Staff to Room Ratio – Mar 2021 Redeployments Multiskilling New Ways of Working *Figures are for All Hotels At Enterprise Level Excluding the Managed Hotels 24
Slide 26: Asset management helps bottomline
R E S E T ASSET MANAGEMENT HELPS BOTTOMLINE CONTRIBUTION TO CONSOLIDATED PROFITABILITY – FY 2020/21 ₹ 49 cr + ₹ 21 cr = ₹ 70 cr LEASE COST SAVINGS SALE OF RESIDENTIAL APARTMENTS TOTAL CONTRIBUTION 25
Slide 27: Significant reduction in corporate overheads
R E S E T SIGNIFICANT REDUCTION IN CORPORATE OVERHEADS • Prudence in All Corporate Expenditure ↓ 39 % • Redeployments & Re-structuring Savings of ₹ 135 Crores in FY 2020/21 26
Slide 28: Q4 & FY 2020/21 performance highlights
Q4 & FY 2020/21 PERFORMANCE HIGHLIGHTS 27
Slide 29: Q-o-Q business recovery
Q-o-Q BUSINESS RECOVERY Consolidated Revenue – INR Cr Consolidated EBITDA – INR Cr 83 38 ₹ 45 cr ₹ 11 cr -83 ₹ 121 cr ₹ 291 cr 615 626 -234 ₹ 151 cr ₹ 149 cr 324 175 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 28
Slide 30: Consolidated financial performance
CONSOLIDATED FINANCIAL PERFORMANCE ₹ /crores Q4 FY Particulars 2020/21 2019/20 Variance 2020/21 2019/20 Variance Total Revenue 626 1,101 (43%) 1,740 4,596 (62%) EBITDA 83 246 (66%) (197) 1,100 (118%) Profit After Tax (91) 74 (223%) (720) 354 (303%) * (After Share of Profit of Associates and JV's) 29
Slide 31: Standalone financial performance
STANDALONE FINANCIAL PERFORMANCE Despite a tough year, IHCL achieved EBITDA break-even in FY 2020/21 ₹ /crores Q4 FY Particulars 2020/21 2019/20 Variance 2020/21 2019/20 Variance Total Revenue 478 754 (37%) 1,244 2,878 (57%) EBITDA 118 249 (53%) 14 895 (98%) Profit After Tax (50) 92 (154%) (525) 401
Slide 32: IHCL consolidated financial performance (Q4 & FY 2020/21)
IHCL CONSOLIDATED FINANCIAL PERFORMANCE (Q4 & FY 2020/21) GIRIDHAR SANJEEVI, EVP & CHIEF FINANCIAL OFFICER 31
Slide 33: IHCL consolidated quarterly trend 2020/21
IHCL CONSOLIDATED QUARTERLY TREND 2020/21 ₹ /crores 2019/20 2020/21 1409 2019/20 2020/21 462 1057 1029 1101 210 246 182 TOTAL EBITDA 38 83 615 626 EBITDA REVENUE 324 175 (83) TOTAL (234) REVENUE Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019/20 2020/21 2019/20 2020/21 275 203 28 98 71 74 PBT 6 PBT PAT PAT (5) (102) (
Slide 34: IHCL consolidated - reported P&L
IHCL CONSOLIDATED - REPORTED P&L ₹ /crores Q4 FY Particulars 2020/21 2019/20 Var % 2020/21 2019/20 Var % Revenue from Operations 615 1,063 -42% 1,575 4,463 -65% Non Operating Revenue 11 38 -70% 165 132 24% Total Revenue 626 1,101 -43% 1,740 4,596 -62% Raw Material Cost 57 84 -32% 144 371 -61% Employ
Slide 35: Q4, FY 2020/21 – IHCL consolidated exceptional items
Q4, FY 2020/21 – IHCL CONSOLIDATED Exceptional Items ₹ /crores Q4 FY Particulars 2020/21 2019/20 Var. 2020/21 2019/20 Var. Change in fair value of derivative contracts 2 (20) 22 25 (22) 47 Exchange Gain / (Loss) - IHMS SA (1) - (1) 29 - 29 Profit on acquisition of Taj Capetown, South Africa - - - 82
Slide 36: IHCL standalone - reported P&L
IHCL STANDALONE - REPORTED P&L ₹ /crores Q4 FY Particulars 2020/21 2019/20 Var % 2020/21 2019/20 Var % Revenue from Operations 464 718 -35% 1,133 2,743 -59% Non Operating Revenue 14 36 -62% 111 134 -18% Total Revenue 478 754 -37% 1,244 2,878 -57% Raw Material Cost 44 56 -21% 108 236 -54% Employee Be
Slide 37: Q4, FY 2020/21 – IHCL standalone exceptional items
Q4, FY 2020/21 – IHCL STANDALONE Exceptional Items ₹ /crores Q4 FY Particulars 2020/21 2019/20 Var. 2020/21 2019/20 Var. Gain / (Loss) on Change in fair value of derivative contracts 2 (20) 23 25 (22) 47 Provision for Pierre Cash Loss funding (32) (42) 10 (164) (69) (95) Provision for impairment of
Slide 38: Q4 2020/21 – IHCL standalone revenue metrics
Q4 2020/21 – IHCL STANDALONE REVENUE METRICS Particulars Jan Feb Mar Q4 Q3 Q2 Occupancy % 56.0 61.8 54.0 57.1 47.4 32.3 ARR in ₹ 8,453 8,700 8,457 8,537 8,300 5,424 RevPAR in ₹ 4,733 5,379 4,567 4,877 3,936 1,751 (₹/ crores) Room Revenue 66 68 67 201 160 71 F & B Revenue 54 62 57 173 161 48 Other Re
Slide 39: Q4 2020/21 – domestic network revenue metrics
Q4 2020/21 – DOMESTIC NETWORK REVENUE METRICS Particulars Jan Feb Mar Q4 Q3 Q2 Occupancy % 54.4 60.7 53.2 55.9 45.6 28.2 ARR in ₹ 5,851 6,094 5,912 5,953 5,643 3,759 RevPAR in ₹ 3,181 3,701 3,144 3,329 2,573 1,061 (₹/ crores) Room Revenue 162 169 159 491 384 154 F & B Revenue 126 143 125 394 353 106
Slide 40: Debt position
DEBT POSITION ₹ /crores Standalone Consolidated Particulars Mar 31, 2021 Mar 31, 2020 Mar 31, 2021 Mar 31, 2020 Gross Debt 2,592 1,943 3,633 2,602 Liquidity (413) (555) (523) (745) Net Debt 2,179 1,388 3,110 1,857 Weighted cost of Debt (%) 7.8 8.1 6.5 7.0 Net Debt to Equity 0.52 0.30 0.73 0.36 Net D
Slide 41: Leading possibilities, managing probabilities
LEADING POSSIBILITIES, MANAGING PROBABILITIES CONTINUE TO FOCUS ON Growth Fitness Portfolio Safety Excellence RE-INFORCING LEADERSHIP WITH TRUST 40
Slide 42: Q&A
Q&A 41 Tay SELE(QTIONS VIVANTA GINGER EXPRESSIINS Wwe@ | H C l 4
Slide 43: 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 44: Brandscape
BRANDSCAPE LUXURY SELECT HOTELS UPSCALE LEAN LUXE 27,500+ KEYS 221 HOTELS 13,600 KEYS 1400 KEYS 5,300 KEYS 7,200 KEYS 92 HOTELS 16 HOTELS 35 HOTELS 78 HOTELS *Portfolio figures include hotels under various stages of development 43
Slide 45: Operating portfolio
OPERATING PORTFOLIO Inventory by Geography Inventory by Contract Type Intl, Holding 2654 Management Company, Contracts, 4545 6319 Dom, Group 16771 Companies, 8561 Dom Intl Holding Company Group Companies Management Contracts As of 31st Mar 2021, IHCL has 165 hotels operational with 19,425 Rooms 44
Slide 46: Shareholding pattern
SHAREHOLDING PATTERN 18% Retail 41% 12% Tata Group FII 29% DII * As on 31st Mar 2021 45
Slide 47: Awards and accolades
I AWARDS AND ACCOLADES Brand Finance | "Tales \ ‘| READERS’ tH \ THE \ CHOICE AWARDS = /; \ GOLD LIST Traveller READERS” CHOICE AWARDS 2020 aWaros h Cyc’e winners <Z TS - TRSGRE 7 é Nasi WORLD’S\ | Tait BEST \ THE AWARDS HoT List —_/ \ eee” NALA” INDIVS BEST TRUSTYOU"™" VIVANTA GINGER EXPRESSI
Slide 48: Global Conference Call Q4 FY 2020/21 Results
GLOBAL CONFERENCE CALL Q4, FY 2020/21 RESULTS | 1st MAY, 2021
The Indian Hotels Company — Q4 FY2020/21 Earnings Presentation on 6ix