Mahindra Holidays & Resorts India Limited · NSE:MHRIL
Mahindra Holidays & Resorts India — Q2 FY14 Earnings Presentation
36 slides from Mahindra Holidays & Resorts India's earnings presentation, Oct 30, 2013
Slide 1: Mahindra Holidays & Resorts India Limited
Slide 2: Section I: Company Overview
Slide 3: Domain Expertise
Op Sssien Domain Expertise ¢ Rapidly increase unique location footprint ¢ Delight customer at every touch point
Slide 4: Achievements and Recognition
HS... Achievements and Recognition 2012: ‘ Product of the Year’ Award 2011: RCI President's award 2010: ISO-27001 certified : First VO company ei 2010: COPC certification to MRC 2010: ECOTEL certification: Coorg and Goa: 2009: 100,000 strong Member Family 2009: Munnar- ‘RCI Ten Year Award’ 2009: Vot
Slide 5: Integrated Business Model
A) cone Integrated Business Model MHRIL value chain Member Management *Land * Lifestyle product * Holiday planning & + Full service resorts identification & marketing approach reservation services — . a qgitional value BOCiLISH CI * Pan-India multi * Active customer opportunities *Resort design & —
Slide 6: Section II: Environment Changes
Slide 7: Context
Ss osnin Context * Club Mahindra: India's No 1 vacation ownership brand * Reimagining customer engagement and experience * The journey of retmagining commenced quite some time back — Members — Prospects
Slide 8: TRAI Act amendments: Disruptive event
€ TRAI Act amendments: ; Disruptive event * Recent amendments to UCC (Unsolicited Commercial Communications) regulations, TRAI Act * Implications for our customer acquisition model with its dependence on telemarketing Reference: The Telecom Commercial Communications Customer Preference Regulations,
Slide 9: Our response
OSes Our response * We have installed extensive processes in place to ensure DNC compliance and respect prospect privacy — Offline — Online * We have renewed our commitment to retmagining the business
Slide 10: Section III: Reimagining Vacation Ownership
Slide 11: Magical moments
ssn Magical moments Make Every Moment Magical * New visual identity * Sell Smart «Member Engagement Satisfied Member base * Leverage the solid foundation of satisfied members * Bring alive the brand promise across touch points
Slide 12: Our most valuable asset is our 165,719-strong member base
Our most valuable asset is our 165,719-strong member base who continue to be delighted by their resort experience
Slide 13: Referrals: The power of word-of-mouth
Ne Referrals: The power of word-of-mouth ¢ Increasing the ease of providing referrals — More proactive — Multiple avenues to refer ¢ Facilitating connection between members and leads ° Leveraging “magical moments” across touch points
Slide 14: The digital opportunity
av. . | A) cn The digital opportunity * Geographic strategy: — Targeting based on market behavior ¢ Faster response time on all digital leads * More engaging website launched, including a mobile-friendly version
Slide 15: The science behind Sell Smart
ov. ‘emmn The science behind Sell Smart ¢ Standardisation — Of product information * Engagement with prospect — Touchscreen-based — Builds credibility ° Analytics — By module — By salesperson
Slide 16: Menu of presentation modules
Y] ry) Pause Tour a) End Tour 5 mm Club Mahindra Agenda About Us About You 9 ui Manager Takeover 2) About You Summary Websites 63] Video Library Why Holiday? How it Works Annual Subscription World of Opportunity Fee Member Upgrade i) Season Charts os eo 3 8 8S 86 Inflation Change @ Virtual Keyboard
Slide 17: Sample screenshot: Sell Smart
& Gn Sample screenshot: Sell Smart What time of year do you like to travel? Where would be your ideal next 4 Is this something you do every holidays? year? Knowing the prospect's beliefs, habits and preferences
Slide 18: Sample screenshot: Sell Smart
Vv ewan Sample screenshot: Sell Smart Membership - How it works 1 Choose Size of unit Annual mui QO Subscription Fee Explaining the what, when and how of membership
Slide 19: Sample screenshot: Sell Smart
Vv ewan Sample screenshot: Sell Smart Membership - How it works Choice of room sizes to suit the family’s needs
Slide 20: Sample screenshot: Sell Smart
Vv ewan Sample screenshot: Sell Smart Membership - How it works Time Of Year To Travel Monsoon Annual Subscription Fee Choice of seasons as per family’s preferred travel time
Slide 21: Sample screenshot: Sell Smart
i Sample screenshot: Sell Smart indra is a Yes, we are committed to iv) company we can trust with taking holidays in the future ‘our future holidays ne Pas membership is easy to use? Hotel vs @ >) Your Chosen Membership Option Taking the prospect's feedback at each stage
Slide 22: New Brand Identity
v 2d ; MS none New Brand Identity * Inspired by the thought ‘Make Every Moment Magical, which reflects organisation ethos v ¢ Symbol made up of four hearts “A ClubMahindra — Depicts families and friends coming together — Inspired by the colours of holidays’
Slide 23: New Brand Identity
A cssnrinan New Brand Identity ¢ Much deeper than a change of symbol — Reflects our renewed focus on delivering the best vacations to our members — Encourages a fresh consideration of Club Mahindra among those who arent with us
Slide 24: Early results
rn Early results Website Visits * 86% rise in website visits since unveiling of new brand identity
Slide 25: Section IV: Q2 FY14 Results Snapshot
Slide 26: Highlights — H1 FY14
Ye Highlights — H1 FY14 * Total income at Rs 37,883 Lacs v Rs 32,941 Lacs in H1'13 (Growth 15% YOY) ¢ PAT at Rs 4,984 Lacs v Rs 4,598 Lacs (Growth 8 % YOY) * Basic EPS at Rs 5.68 in H1FY14, Rs 5.48 in H113 * Added 5,467 v 7942 members during the period (Discontinuance of Zest impact 1,477 members) *
Slide 27: Highlights — Q2 FY14
<_ Highlights — Q2 FY14 ¢ Total income at Rs 19,380 Lacs v Rs 16,766 Lacs in Q2'13 (Growth 16% YOY) ¢ PAT at Rs 2,885 Lacs v Rs 2,701 Lacs (Growth 7 % YOY) * Basic EPS at Rs 3.27 in Q2'FY14, Rs 3.22 in Q2'13 * Added 2,416 v 4,162 members during the quarter (Discontinuance of Zest impact 737 members)
Slide 28: Income, PBT and PAT: H1 FY14 vs H1 FY13
Rs 37,883 Lacs Rs 32,941 Lacs Income H114 Vs H113 (Y-O-Y) Rs 7,435 Lacs Rs 4,984 Lacs 12% Rs 6,626 Lacs Rs 4,598 Lacs PBT PAT
Slide 29: Income, PBT and PAT: Q2 FY14 vs Q2 FY13
Rs 19,380 Lacs Q2'14 Vs Q2'13 (Y-O-Y) Rs 4,323 Lacs Rs 2,883 Lacs Rs 16,766 Lacs Income Rs 3,936 Lacs Rs 2,701 Lacs PBT PAT
Slide 30: Summary of Results
Ne Summary of Results New Members - added 2,416 4162} -42% 5,467 7,942 -31% Cumulative Members 165,719 151,200 10% 165,719 151,200 10% Income 19,380 16,766 16% 37,883 32,941 15% Expenses 14,991 12,827 17% 30,373 26,308 15% PBT 4,323 3,936 10% 7A35 6,626 12% PAT 2,883 2,701 7% 4,984 4,598 8% PAT % 15
Slide 31: Profit & Loss Statement
Ne Profit & Loss Statement Particulars (Rs. Lacs) Quarter ended Half year ended Year ended Sep-13 Jun-13 Sep-12 Sep-13 Sep-12 Mar-13 Income from operations 17,143 16,606 15,187 33,748 29,873 65,854 Other Operating income 1772 1424 1,267 3,197 2,326 4301 Other Income 465 473 311 938 742 1439 Total in
Slide 32: Balance Sheet
ClubMahindra Balance Sheet LIABILITIES (Rs. Lacs) As on As on As on Sep-13 Sep-12 Mar-13 Shareholder's funds 78,667 61,484 63,432 Secured Loans 191 155 195 Deferred tax liabilitites 4552 4,014 4120 Deferred Income - Advance from members 139,544 120,555 131,318 Current Liabilities and Provisions 27,2
Slide 33: Ratio Analysis
Vv %K... Ratio Analysis Quarter ended Half year ended Year ended Sep-13 Jun-13 Sep-12 Sep-13 Sep-12 Mar-13 EBIDTA as % of total income 27% 21% 27% 24% 23% 25% PBT as % of total income 22% 17% 23% 20% 20% 22% PAT as % of revenue 15% 11% 16% 13% 14% 15% ROCE % (excludes def income) 22% 17% 26% 19% 22%
Slide 34: Resort Details
© sin Resort Details No of Resorts At At 0% At At 0% 44 No of Rooms 2309 «= 276 5% 2,309 2276 5% 2,480 Occupancy % 15% 74h 2h 82% 81% i% 81% ARR (in Rs) 3,609 3,897 Th 4668 4904 5% 4116
Slide 35: Income Break-up
ov BE rev Income Break-up Total income(Aslas) 2M 2A %Crame HIF HLS Charge A3 | Income from sale of VO 11204 10,148 10% 21822 19.754 10% 44,586 ASF 3,424 2779 23% == 6,444 5,433 19% 11,380 Resort Income 2,369 2,141 11% 5,157 4407 17% 9314 Income from TRS & MHS 149 119 o5% 326 279 17% 574 Income from
Slide 36: Thank You
Mahindra Holidays & Resorts India — Q2 FY14 Earnings Presentation on 6ix