February 24, 2020
BSE Limited National Stock Exchange oflndia Corporate Relationship Department Limited Exchange Plaza 1st Floor, New Trading Ring, Bandra Kurla Complex Rotunda Building, P. J. Towers, Bandra (E) Dalal Street, Fort, Mumbai 400 051 Mumbai - 400 001. • cnn _ode: I DHOTEL Scrip Cod -·: 500850
Sub: Intimation of Schedule of Analyst/Institutional Investor Meetings under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Dear Sir,
This has reference to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Regulations").
In accordance with the said Regulations, kindly note that the Company is orgaruzmg Capital Market Day on February 24, 2020 at Taj Lands End, Mumbai at 11.00 A.M. The said event is expected to be attended by Chief Investment Officers and Senior Portfolio Managers of Financial Institutions.
A copy of the presentation has been enclosed herewith.
You are requested to kindly take the same on record.
Y smccrcy. l •. (;al.; J~ · or Vice President Corporate Affairs & Company Secretary (Group)
THE INDIAN HOTELS COMPANY LIMITED CIN L74999MH1902PLC000183
CORP Office: 9th Floor, Express Towers, Barrister Rajni Patel Marg, Nari man Point, Mumbai 400 021, Maharashtra, India T +91 22 6137 1637, F +91 22 6137 1919 REGD Office: Mandlik House, Mandlik Road, Mumbai 400 001, Maharashtra, India www.theindianhotels.com T +91 22 6639 5515, F +91 22 2202 7442
'AOJ SELEQ.:::,IONS V IVANTA G INGER EXPRESSION,. A TI\TI\ Enterprise Iconic Like Always, Profitable Like Never Before CAPITAL MARKET DAY | 24th February, 2020 PIONEER LEGACY SOUTH ASIA’S of 116 years of Indian hospitalityREACHES A KEY MILESTONElargest OF hospitality company 200 HOTELS $1 BILLION+ 100+ 32,000+ LOCATIONS IN THEASSOCIATES PORTFOLIO REVENUES across 12 countries serving with heart and soul at an enterprise level
2 INDIAN HOTELS – A STORY OF ASPIRATION, EXECUTION AND TURNAROUND
₹ / crores Where Where Where we we we were landed are 4,595 4,123 4,076 4,165 3,495 3,013 2,601 1,875
370 355 310 249 101 287
-231 r------63 -- 1 2005/06 2006/07 2007/08 2015/16 2016/17 2017/18 2018/19 I 9m 2019/20 I L------
■ Revenue ■ PAT
*9m 2019/20 PAT is reported basis PRE IND AS (like-for-like for comparison purposes). Reported 9m 2019/20 PAT on POST IND AS basis is ₹ 280 crores
3 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j INDIAN HOTELS – ON A JOURNEY OF RE-IMAGINATION SINCE FEBRUARY 2018
What if the symbol of iconic hospitality took center stage and wrote the next 100 years?
4 ASPIRATION 2022 Unveiled on Capital Market Day, Feb 2018
Hospitality 15 Company NEW PROJECTS _,- EVERY YEAR Re-imagine Service, Brandscape,,,' Portfolio ,. ,/ Re-engineer 8% Scale, Simplify, , , / Margins, Technolog EBITDA Sell People MARGIN Strong Brand Equity High Customer EXPANSION Engagement 50-50 Market Leaders in Leisure & Pan-India Footprint PORTFOLIO Palaces Segment
INTEGRITY, EXCELLENCE, UNITY, TRUST, AWARENESS, JOY RESPONSIBILITY, PIONEERING
5 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ ASPIRATION 2022 – 8% MARGIN EXPANSION Drivers of Margin Expansion PARTICULARS MARGIN IMPROVEMENT
Revenue RevPAR Growth Other Operating Income 3 to 4 % Management Fee Income
Incremental Income from New Inventory 8% EBITDA Costs MARGIN Operational Payroll EXPANSION Procurements (Raw Materials, Stores & Supplies) Corporate Overheads 3 to 5% Admin and General Expenses Fuel, Power & Light Asset Contract Costs
EBITDA Margin Improvement 8%
6 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j STRATEGIC INITIATIVES Path to Execution
Re-imagine Re-structure Re-engineer
Manage Brandscape Scale up Inventory Expand Margins
Multiply Portfolio Sell Non Core Assets Embrace Technology
Manoeuvre Excellence Simplify Holding Structure Engage People
7 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j From Aspiration to Execution
RE-IMAGINED Brandscape, Portfolio and Operational Excellence
8 RE-IMAGINED l BRANDSCAPE Brand Equity Like Always, Diverse and Enabling Like Never Before
9 FROM A BRANDED HOUSE TO A HOUSE OF BRANDS
10 DIVERSE BRANDSCAPE CATERING TO DIFFERENT CUSTOMER SEGMENTS
LUXURY SELECT HOTELS UPSCALE L E A N L U X E
25,000+ KEYS / 200 HOTELS
SELE~IONS VIVANTA G I N G ER
13,000 KEYS / 88 HOTELS 1400 KEYS / 14 HOTELS 4,700 KEYS / 34 HOTELS 5,900 KEYS / 64 HOTELS
*Portfolio figures include operational hotels and hotels under various stages of development
11 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ a1 01v1n1ty Trails Stx Taj hotels at five spin for a divine experience In the lap of luxury
100 Days Campaign
Like Always. Like Never Before.
12 EXECUTING THE RE-IMAGINED BRANDSCAPE
G ER
TAI --~
~• L---?
13 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ SCALING UP OUR NEW BRANDS
a n1u• you. nau
SELE~IONS
14 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ RE-IMAGINED l GINGER Value Like Always, Lean Luxe Like Never Before
15 GINGER – EVOLUTION ORIGIN METAMORPHOSIS - I 2004 Dec 2018 onwards GE R
ROOMS CENTRIC BRAND NEW GINGER Vibrant & Interactive Self Service Smart Basics Spaces Lifestyle Approach F&B offering
16 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ BRAND CHARACTERISTICS
Work & Play Individual & Collective Global & Local
Ginger - the first Indian brand to adopt a lifestyle approach in the Midscale segment
17 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~17 LEAN LUXE FOOTPRINT
› GOA, PANAJI › GOA, DONA PAULA › GOA, MADGAON › MUMBAI, ANDHERI EAST › PUNE, WAKAD › AURANGABAD › DWARKA, GUJARAT › AHMEDABAD, SANAND › SURAT, CITY CENTRE › NOIDA, CITY CENTER › BHUBANESHWAR › PATNA REFRESHING, LIBERATING AND LIVELY
18 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ LEAN LUXE IMPACT
REVAMPED ENHANCED AGGRESSIVE PORTFOLIO PERFORMANCE GROWTH
Achieved TH *****111111 ARR 111111 50 HOTEL 12 Growth in Q3 % MILESTONE Lean Luxe Hotels 26
Of 24% portfolio 4.27 5 New Hotels in 2019 in FY20 Rating of across Ginger of 1,000 + % 50 portfolio Launch of new rooms signed by FY21 New restaurant concept Café et cetera Hotels 10 signed
19 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ EXPERIENCE LEAN LUXE Website: www.gingerhotels.com
20 RE-IMAGINED l TajSATS Leadership in Volume Catering Like Always, F&B Offerings Like Never Before
21 TAJ SATS: WHO ARE WE.. TAJ SATS AIR CATERING LTD, IS A JOINT VENTURE COMPANY FORMED IN 2001 BETWEEN THE INDIAN HOTELS COMPANY LTD (IHCL) HOLDING A STAKE OF 51% AND SATS LTD, HOLDING 49%
Over 40 years of catering 23 million meals prepared Over 40 Domestic & International Over 65,000 meals crafted daily experience annually Airlines handed
~ ~t=J Only flight caterer in India with Only flight caterer in India Market Leader with 34% Market Exclusive Caterer to Vistara Halal certification from producing Fresh Kosher Meals Share & 6 Kitchens and Tata Starbucks Malaysian Airlines in Mumbai
1976 1982 1987 1996 1999 2001 2008 2019
Taj Flight Kitchen Opened unit in Taj Flight Kitchen New unit in Kolkata Opened unit in JV with SATS New unit in Acquired Taj formed by the Taj Delhi name changed to Chennai (Taj Bengaluru Madras Flight Group with a unit Taj Air Caterers Madras Flight Kitchen in Mumbai Brand new kitchen in Kitchen) Mumbai commissioned New unit in Goa
22 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j OUR STRATEGY OVER LAST 4+ YEARS..
› Re-invigorate Taj SATS Brand and launch a new Brand for 03 Non-Aviation Business › Simplify shareholding ,, › Diversify revenue base to increase contribution from 02 “International Airlines” and “Non Aviation Sources”
› Focus on ‘Operational Excellence’ and “getting 01 basics right”
23 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j DELIVERING TO OUR STRATEGY…
Geographical Diversification Driving Operational Excellence Simplification of Shareholding › Secured many new international airline › Won Platinum award worldwide (from Structure accounts across different geographies amongst 60 countries and 270 kitchens)
› Won Gold award in Asia Pacific › Completed acquisition of Taj Madras Flight Kitchen making it a 100% subsidiary PROUD WINNER › Financial consolidation from 1st October 2019
AWARD OF EXCELLENCE ASIA AND WORLDWIDE
L------L------
24 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j INVIGORATING THE TAJSATS BRAND
• In February 2019, TajSATS launched its new brand identity. • The brand evolution encompasses everything, right from our new logo and visual identity to the way we communicate with the world.
,, THE ~ HINDU In ..
0 44mins On valentine's 0 47mins Gold prices 0 50mins Smriti ~y. transwomiln~man rise US, silver gains '147 Milndhana rises to < wedding in Coimbiatore 1cc no ~nkings MENU 30 days " " HOME NEWS OPINION BUS INESS DELHI 2020 SPORT CRICKET CROSSWORD+
BUSINESS WWW.TAJSATS.COM
BUS INESS 65,000• 370,000• 6 f nCATTiltD llOMfSTll"MOltiT[!IHATIO'tll.L Airline caterer TajSATS gets new identity AVCA• AIIU.ht~YRvtO
• SPECIAL CORRESPONDENT NUMBAI, FEBR UARY 26, 2019 22:15 IST UPDATED:HBRUARY 26, 2019 22:15 IST
.,, SHARE ARTICLE 19 • 0 Q PRINT A I IA Indian Hotels Company Ltd. (IHCL) of the Tata Group has unveiled a new visual brand identity for TajSATS, which controls about 45% of the airline catering business in India.
The TajSATS joint venture works with over 40 domestic and international airlines, serving over 65,000 meals a day. The launch of the new identity is a part of the ongoing evolution ofTajSATS, the company sald.
OJLINARY ART IN MOTION
OFFICE HI LOADERS
25 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~ OUR ASPIRATION…
ASPIRATION 2022
Market Share of 34% Enhanced Revenue Growth, Profitability
Continued Profitable Input Output Profitably Operate Operations R6CDA I largest kitchen capacity in India
Unlevered Balance Market Share Sheet @ I exceeding 50%
Healthy Cash Flows Growth in the $60B › Consolidation in Airline Catering Market 0 1F&B Market in India › Launch of Anuka Brand Support of strong “Taj” › Investment into Central Kitchen Production Model Export of frozen and “SATS” Brand Indian Food › Presence in top 15 Airports in India 8 1
26 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j RE-IMAGINED | PORTFOLIO Hospitality Like Always, an Ecosystem Like Never Before
27 FROM A HOTELS BUSINESS TO A HOSPITALITY ECOSYSTEM
Jiva Spa Khazana Topline Drivers
amã Stays & Trails The Chambers Margin Drivers HOTELS
Salon- F & B Market Share Drivers niu&nau Concepts
Air Catering
28 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ EXPRESSONS
A ,-.,.J JIVA Kr1AZANA ama STAYS & TRAILS
U:lllW . . 72 380+ *****11 1 11 1 13 37 RESTAURANTS --.-~ . 7 20 SPAS ~,~ , . ! . ' BOUTIQUES SALONS ~T~ CLUBS PROPERTIES ~
& BARS
29 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ FOCUS ON F&B: SCALE UP OUR EXISTING F&B BRANDS
SLIAMiA A
HA GOLDE~ DRAGO~ P V I
30 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ FOCUS ON F&B: LAUNCH OF NEW CONCEPTS – BREW PUB WITH AB InBev
31 FOCUS ON F&B: LAUNCH OF NEW CONCEPTS – PAPER MOON
[@il ~. ~i~~ ,·~ ri] ,. . I]
32 FOCUS ON F&B: LAUNCH OF NEW CONCEPTS – GTR
33 UNLOCKING EXPRESSIONS: THE RE-IMAGINED CHAMBERS
115 NEW MEMBERS
150 MIGRATIONS
₹ 32 Crore INCR. REVENUE
34 ,~ TAj l· i·i·i+i·t·i·l·i·i·l·i+i·I THE TAJ MAHAL PALACE LANDS END MUMBAI MUMBA I ,~ ~~ TAJ MAHAL KRISHNA NEW DEL!l l HYDERABAD
11\ ,~ TAj TAj BENGAL COROMANDEL KOL KATA CHENNAI
t\~~ TAJ DUBAI
35 THE CHAMBERS LOCATIONS
Taj Mahal Delhi Taj West End Taj 51 Buckingham Gate
Under renovation, - ~ -+--Bangalore, - ~ -.--London, Opening 2020 Opening 2020 Opening 2020
36 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ UNLOCKING EXPRESSIONS: amã STAYS & TRAILS
A distinctive branded offering by IHCL, amã Stays & Trails Combining elegance with homely The beauty, tranquility and unique comprise untouched experiential comfort and warm service, amã local flavors found across carefully escapes ranging from Stays & Trails offer immersive and chosen locations stay with guests charming residences to authentic local experiences to long after they leave. mesmerizing trails in unique guests. locations.
37 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ amã STAYS & TRAILS - 20 BUNGALOWS PORTFOLIO 7 BUNGALOWS IN PIPELINE
Uttarakhand › 1 upcoming
Karnataka › 10 operational Goa › 2 Operational › 1 upcoming Tamil Nadu › 1 upcoming
Maharashtra Kerala › 2 upcoming › 1 operational › 2 upcoming
*20 Bungalows portfolio includes the 7 bungalows in pipeline
38 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ UNLOCKING EXPRESSIONS: niu&nau
salon reimagined
A social hub, a private sanctuary, a creative space, an experience personalised to your needs and lifestyle - this is the salon reimagined.
39 UNLOCKING EXPRESSIONS: niu&nau – BRAND EXPERIENCES
Consultations Snackbar Facilities
Social Gallery
Sessions Social Mixers The Host RE-IMAGINED | OPERATIONAL EXCELLENCE Customer Centricity Like Always, Focus on Excellence Like Never Before
41 OUR CUSTOMERS
42 TAJ() SELE~IONS VI VANTA GINGER EXPRESS IONS TAjll''i, • 11-1c1-., ~ OUR CUSTOMERS Star SANOFI V... Toyota Kirloskar
BOSTON CONSULTING > ---~~ GROUP accenture
LEVI STRAUSS & CO.
a Abbott ERNST &YOUNG P&G ill amazon asianpaints K,ondelez pwc e:' International ~
43 TAJ() SELE~IONS VI VANTA GINGER EXPRESS IONS TAjll''i, • 11-1c1-., ~ ERSHIP CORPORATES, ENTERTAINMENT, GOVT
PM MODI - HT LEADERSHIP SUMMIT Taj Palace, New Delhi
JEFF BEZOS WITH INDUSTRY CAPTAINS The Taj Mahal Palace, Mumbai
U2 PM MODI AND PRESIDENT XI The Taj Mahal Palace, Mumbai 2nd India China Summit Taj Fisherman’s Cove, Chennai
44 TAJ() SELE~IONS VI VANTA GINGER EXPRESS IONS TAjll''i, • 11-1c1-., ~ CUSTOMER LANDSCAPE VOICE OF THE CUSTOMER # 1 2018 2019 Net Online * 15 L+ | 23 L+ * unique customers/ year & Promoter Reputation Average annual visits* Score (NPS) Score • 67 TY vs. 65 91 TY vs. 90 2.6 L for PY for PY • Active TIC Customers 17%+ TOP CUSTOMER ATTRIBUTES members in higher tiers
Revenue from higher tiers Service $ +14% • • Location 60% customers - Indian • 70% 30% Vibe of properties Male Female • • Source: TrustYou, worlds number 1 reputation management company for Hotels * - excluding Ginger Hotels
45 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ CONSISTENT GROWTH LIKE ALWAYS, RE-IMAGINED EXPERIENCE LIKE NEVER BEFORE
Seamless, on-brand booking experience Independent brand websites
www.ihcltata.com www.tajhotels.com
~, -•us"~''"'' N , ' ~~ Conversion Rate Revenue Cost of Sale .. -. ~-:=-e-~i ' ' +19% YoY +10% YoY -10% YoY - -- ~-n • - - -- •,- www.seleqtionshotels.com www.vivantahotels.com
46 TAJ() SELE~IONS VI VANTA GINGER EXPRESS IONS TAjll''i, • 11-1c1-., ~ DATA AS THE ACCELERATOR O O l) S Tailored content and promotions
Travel Inspiration ~0 0 r"\ r"\ • Real-time response management Tailored search, prospecting, and personalised communication remarketing
Post• Stay Research • CUSTOMER JOURNEY
. Capturing preferences and social Data-led personalisation on data to create hyper-personalised owned digital platforms delights and stories. On• Property •Booking
47 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ EVOLUTION FROM ONLINE REPUTATION MGMT TO USER DELIGHT STORIES
95% 15 209 539 min
Response Rate Response Time Guest Delights Sales Leads
48 TAJ() SELE~IONS VI VANTA GINGER EXPRESS IONS TAjll''i, • 11-1c1-., ~ INTEGRATED MARKETING CAMPAIGN
Like Always,
Like Never Before. taj.fatehprakashpalace Taj Fateh Prakash Palace, Udaipur MEDIA: National Print, Digital, Social
Offline Reach Social Media 3.7 million 2.5 million
• ••
uT Liked by tajhotels and 7 others taj.fatehprakashpalace Taj Lake Palace has always been your first choice for luxury in Udaipur, now experience the city of lakes like Display/Search E-DM never before with Taj Fateh Prakash Palace. To 2.4 million 2 million Ian our ro al ex erience, click the link in the
49 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ 50 OPERATIONAL INITIATIVES TO DRIVE PERFORMANCE
SHARED SERVICES PROJECT SCORE RE-IMAGINED F&B SC RE
> ac,ce1nturestrategy
Finance Laundry Human Energy Guest Business High quality Procurement Synergy (AR/AP, Operations Resources efficiency Amenities Travel convenience standards with Taj Stores) (Recruitment products SATS , Payroll)
Focus on Excellence Like Never Before
51 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ DEEP DIVE ON HOTELS TO DRIVE EFFICIENCY
Phoenix FLAGSHIP Cross PHOENIX Functional Projects
Sunrise MISSION 200 SUNRISE
52 HIGH SPEED TRAINS NEED STRONG AND HIGH SPEED RAILS
AS IHCL EMBARKS UPON A JOURNEY OF SCALE, SYNERGY AND SIMPLIFICATION ASPIRATION PROJECT EXCELLENCE TO BUILD A STRONGER 2022 FOUNDATION OF PROCESSES, KNOWLEDGE AND EXPERTISE
53 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ PROJECT EXCELLENCE 725+
Processes Reviewed, ~o0 0 Revalidated and Refreshed rd lili1 l.l Processes in Safety & Process validation against Security, Operations, Real its relevance to Aspiration Estate & Development and 2022 Human Resources 1 2 3
Our commitment toward Aspiration 2022
Identification of risks to Aspiration 2022 IHCL Global Network for Information, l\.:,I I I C Training and Excellence
54 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ DIGITIZATION OF TAJ POSITIVE ASSURANCE MODEL
Safety Reporting Revenue Business 9 Cycles Processes
IT Controls Expenditure Human Resources 2000 40
Controls Statutory Compliance Fixed assets Sub Guest Services Processes ~ 250 1111
55 TAJ() SELE~IONS VI VANTA GINGER EXPRESS IONS TAjll''i, • 11-1c1-., ~ From Aspiration to Execution
RE-STRUCTURED For Scale, Enabled by Organization
56 GROWTH: KEY HIGHLIGHTS
200 50 18 43% Hotels Portfolio New Hotels Signed New Hotels Opened Mgmt Contract Mix (158 Hotels Operational) in the Last Two Years in the Last Two Years vs Owned in Portfolio
*Portfolio includes operational hotels and hotels under various stages of development
57 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j RE-STRUCTURED | SCALE Market Leader Like Always, Growth Like Never Before
58 DEVELOPMENT STRATEGY NEITHER ASSET LIGHT NOR ASSET HEAVY.. BUT ASSET SMART
S M A R T
Margin Asset Strategic Enhancement Management Relationships Tracking
59 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j DEVELOPMENT STRATEGY ACROSS BRANDS ASSET SMART
Management Contract Pure Management Pure Management with Sliver Investment Contract Contract Operating Lease/ Ownership
Management Contract Pure Management Pure Management with Sliver Investment SELE~IONS Contract Contract Operating Lease/ Ownership
Management Contract Pure Management Pure Management with Sliver Investment VIVANTA Contract Contract Operating Lease/ Ownership
Operating Operating Lease / Operating Lease/ G I NG ER Lease Ownership Ownership
QUALIFYING GOOD EXCELLENT LOCATION
60 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j INORGANIC GROWTH STRATEGIC INITIATIVE FOR ACQUIRING MARQUEE ASSETS
₹ 4000 crore Investment 30% Equity Contribution Platform
Acquisition of Luxury, Upper Upscale Asset Right Strategy & Upscale Hotels in key cities
L------L------
61 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j FROM SIGNING 1000 ROOMS TO OVER 3,500 ROOMS A YEAR
3,542 3,258
1,174
632 468
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 YTD Feb 2019/20 ,------, I I I I I #Hotels I I ______I 8 14 5 22 27 -New Rooms Signed
62 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j FROM SLOWDOWN TO ACCELERATED OPENINGS (1+ HOTEL A MONTH)
1,556
1,065
625 524 442
T T FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 YTD Feb 2019/20
,------1 I I I I I #Hotels I 8 I ______I 5 10 5 12 -New Rooms Opened
63 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j FROM A PORTFOLIO OF 141 HOTELS TO 200 HOTELS
200 179 155 160 25,023 141 22,231
18,965 18,361
16,920
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 YTD Feb 2019/20
1------I I I I I I Mgmt. % I 28% 31% 32% 39% 43% I ------1
- #Hotels 0 #Rooms
64 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j CONTINUE GROWTH MOMENTUM ON TARGET TO REACH ASPIRATION 2022 AHEAD OF TIME
OPERATIONAL – PIPELINE – PORTFOLIO – •------158 Hotels | 18,845 Keys ■'------'42 Hotels | 6,178 Keys ■ 200 Hotels | 25,023 Keys
23% 24% 24%
23% 47% 54%23% 54% 52%
23% 24% 29%
■ Taj ■ SeleQtions / Vivanta ■ Ginger ■ Taj ■ SeleQtions / Vivanta ■ Ginger ■ Taj ■ SeleQtions / Vivanta ■ Ginger
65 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j RE-STRUCTURED | ORGANIZATION Heart and Soul Like Always, Inclusion & Empowerment Like Never Before
66 PRESERVING THE CORE: TAJNESS
67 TAJ() SELE~IONS VI VANTA GINGER EXPRESS IONS TAjll''i, • 11-1c1-., ~ RENEWING AND LIVING THE VALUES: TRUST, AWARENESS, JOY
Culture Meets Strategy Meets Breakfast Meets
Lapel Pins •
SOARING HIGHER We Promise We Deliver Long Service Awards The Difference You Make STARS
68 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ ENHANCED INCLUSION AND DIVERSITY
Capability-building of under-served women, .,~,, backward communities, artisans & differently abled TAJ PUBLIC SERVICE WELFARE TRUST
Affirmative Action, inclusion & diversity in workforce & value chains
Varanasi Weavers Program
Women’s Micro Enterprise Supported by Taj Women’s Group Supplying Newspaper & Youth Trained & Recruited from North East Safaris near Kanha National Park Slipper Bags to Vivanta Hotels
69 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ ORG STRUCTURE CHANGES TO DRIVE EMPOWERMENT
Area and Zone roles create greater Creation of Centers of Excellence for span of control focused effort and innovation
ft1tQ Enhanced Zones for SVP Cluster Sales & Revenue to (Operations): career growth drive greater synergy
..... ,~,/.,,, -- Empowered Area roles – Multiple / ' ~ Area Director acts as a mini CEO cross functional projects
··~·...... Simplified level structure Promoting talent from within 0 0
70 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j From Aspiration to Execution
RE-ENGINEERED Financial Performance
71 RE-ENGINEERED FINANCIAL PERFORMANCE: KEY HIGHLIGHTS
Turnaround Sustained EBITDA Margin Healthy Balance Performance Expansion Sheet after 6 Years of Losses Best in a Decade in Consistently over the Sustained Reduction in 9M FY 2019/20 Last 8 Quarters Net Debt / EBITDA
72 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j BEST FINANCIAL PERFORMANCE IN A DECADE (9 MONTHS FY 2019/20)
Particulars – 9M 2019/20 2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11
~ Revenue 3,495 3,314 3,001 3,006 3,035 3,148 3,021 2,775 2,522 2,088
~ EBITDA 719 592 467 470 480 399 439 398 417 316 EBITDA Margin 20.6% 17.9% 15.6% 15.6% 15.8% 12.7% 14.5% 14.3% 16.5% 15.1% ~ (%) PBT before 332 206 34 14 -13 45 78 56 60 -47 ~®t!) Except.
~ PAT 310 172 25 -103 -211 -71 -393 -41 -21 -91
*2019/20 numbers are basis Pre-IND AS figures for like-for-like comparison. On a Post-IND AS basis also, IHCL reports highest EBITDA, EBITDA Margins, PBEIT and PAT in a decade
73 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j RE-ENGINEERED | FINANCIAL PERFORMANCE
Topline Growth Like Always, Profitability and Margin Expansion Like Never Before
74 IHCL NETWORK REVENUE
140 149 200+ HOTELS HOTELS HOTELS
16,900+ 17,800+ 25,000+ ■= CII KEYS ■= CII KEYS ■= CII KEYS ₹ 6,800+ cr ₹ 7,000+ cr REVENUE REVENUE ?
II 11 11 FY 2017 FY 2019 FY 2023 POTENTIAL
75 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j MULTIPLE REVENUE STREAMS PROVIDING BALANCE OF TOPLINE & MARGINS
ROOM REVENUE F&B REVENUE › 45% SHARE › 40% SHARE › 70% FLOWTHROUGH › 50% FLOWTHROUGH
MANAGEMENT CHAMBERS, SPA, FEES KHAZANA › 5% SHARE › 10% SHARE › 75% FLOWTHROUGH › 60% FLOWTHROUGH
76 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ ROOM REVENUE PERFORMANCE
Superior RevPAR performance in Key Markets
+8% +7% +10% +9% +10%
Mumbai New Delhi Chennai Hyderabad Bangalore
Focus on Maximizing Market Share
Retaining No.1 and No. 2 position in Micro Markets
*Q3 Same Store RevPAR
77 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j F&B REVENUE
F&B Strong MICE Standardising Leadership presence & Simplifying F&B operations Domestic Rev Domestic Rev to improve ₹2,200 Cr ₹1,000 Cr profitability
78 TAJ SELEQIONS VIVANTA GINGER EXPRESSIONS TAJ. 11--ICI~ STRONG REVENUE POTENTIAL OF THE CHAMBERS
MORE NEW MEMBERS EACH YEAR
HIGHER MEMBERSHIP FEES
INCREASE IN ROOM & F&B REVENUE
STRATEGIC INVESTMENT IN NEW CHAMBERS LONDON, BENGALURU
79 84 MANAGEMENT PROPERTIES INCLUDING PIPELINE
~ ₹ 235 Cr Management fees (₹ Crore) 235 EST. MANAGEMENT FEES FOR FY 20 223 210 190 ~70% 173 FLOWTHROUGH TO EBITDA
>15% 15-16 16-17 17-18 18-19 19-20E SHARE OF EBITDA
TARGETED 50% OF PORTFOLIO ASSET LIGHT
80 RE-ENGINEERED FINANCIAL PERFORMANCE CONTINUOUS IMPROVEMENT IN OPERATING COST BASE
23.6% 35.8% 23.5% 23.3% 34.9% 22.5% 34.2%
33.4% 33.1% 21.6%
RAW PAYROLL MATERIAL COST COST 9m 15/16 9m 16/17 9m 17/18 9m 18/19 9m 19/20 9m 15/16 9m 16/17 9m 17/18 9m 18/19 9m 19/20
7.2% 28.7% 29.2% 28.4% 28.3% 6.6% 6.6% 6.4%
27.0%
6.2%
FUEL, OTHER POWER AND EXPENDITURE LIGHT 9m 15/16 9m 16/17 9m 17/18 9m 18/19 9m 19/20 9m 15/16 9m 16/17 9m 17/18 9m 18/19 9m 19/20
*All Percentages of Consolidated Revenue *Other Expenditure excludes License fees
81 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j CONSISTENT EBITDA MARGIN EXPANSION (Q-o-Q)
Q1 +304 bps Q2 +153 bps
+183 bps +404 bps , , , ,------, , 10.8% :I :I , ,' I 7.8% ..,,, 10.8% 15.7% I I 7.8% 13.3% I I .. 17/18 18/19 19/20 17/18 18/19 19/20
Q3 Q4 +339 bps +230 bps
+148 bps +458 bps
24.7% 18.2% 24.7% .. 29.6% 18.2% .. 25.1% 17/18 18/19 19/20 16/17 17/18 18/19 *EBITDA for 19/20 is Pre Ind AS
82 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j UPSWING IN US & UK HOTEL PERFORMANCE
PROFIT BEFORE TAXES ($ MN)
1.9
-1.2
-6.7 -6.6 -7.9
83 9M 2015/16 9M 2016/17 9M 2017/18 9M 2018/19 9M 2019/20 RE-ENGINEERED | BALANCESHEET
Strong Fundamentals Like Always, Healthy Like Never Before
84 FROM A NET DEBT / EBITDA OF 6.47 TO 1.76
1.65 ...... 1.25 ' ' ' ' ' 6.47 ' ' ' 0.45 ' 0.37 0.34 4.74 ' ------2.58 2.11 1.76
Mar 2016 Mar 2017 Mar 2018 Mar 2019 Dec 2019 - Net Debt to EBITDA - -Net Debt to Equity *Trailing Twelve Months Basis | **Net Debt, EBITDA on Pre IND AS basis
85 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ APPROACH TO FUNDING
Ginger Portfolio Special Situations
› Sale & Lease Back to generate cash for › GIC Platform
High renovations › New Ginger in Santa Cruz
Piem, OHL & other Associates Current IHCL Standalone Portfolio
› All Group Companies beginning to generate › Cash Flows to be used for renovation Cash Requirement Cash Low cash. › Sweat IHCL Balance Sheet › US losses reducing.
Low High
Cash Generation
Growth envisaged via combination of Equity Raising, Divestment and Partnerships
86 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j ASSET SMART GROWTH
SMARTER BALANCE SHEET
SALE AND UNLOCKING VALUE OF MANAGE BACK LATENT ASSETS
MONETIZATION OF SIMPLIFY CONTROLS & NON-CORE ASSETS HOLDING STRUCTURES MANAGEMENT GREENFIELD CONTRACTS PROJECTS
Low INVESTMENT High
87 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ GATEWAY VIZAG SALE AND MANAGE BACK VIVANTA TRIVANDRUM ₹ 170 CRORES
88 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ UNLOCKING VALUE OF LATENT ASSETS GINGER SANTACRUZ
89 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ RESIDENTIAL FLATS MONETIZATION OF NON-CORE ASSETS PUNE LAND ₹ 150 crores
90 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ SIMPLIFY CONTROLS AND HOLDING STRUCTURES Sea Rock, Taj Enterprises, Taj Madras Flight Kitchen
91 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ SALE AND MANAGE BACK UNLOCKING VALUE OF LATENT ASSETS Gateway Vizag; Vivanta Trivandrum Ginger Santacruz
MONETISATION IN LAST TWO YEARS ₹ 425 CRORES
MONETIZATION OF NON-CORE ASSETS SIMPLIFY CONTROLS AND HOLDING STRUCTURES Pune Land and Residential flats Sea Rock, Taj Enterprises, Taj Madras Flight Kitchen
92 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ RETURN ON CAPITAL EMPLOYED
ROCE on TOTAL CAPITAL Hotel Assets EMPLOYED OTHER HOTEL ASSETS ASSETS (₹ 7,474 CR) >16%
₹ 3,580 cr ₹ 3,894 cr
*ROCE on Hotel Assets Pertains to Domestic Hotels. Figures as of FY 19.
93 TAJ SELE~IONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j INCREMENTAL CAPITAL EMPLOYED IS VALUE ACCRETIVE
7.9% 6.1% 5.6% 4.2%
RETURN ON CAPITAL EMPLOYED
FY 15/16 FY 16/17 FY 17/18 FY 18/19
On Incremental Capex & Renovation, we expect to do at least a double-digit Return
94 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICI~ STRONG INSTITUTIONAL SHAREHOLDING
14% Retail 39% G 12% Tata Group TATA FII
35% DII
* As on 31st December 2019
95 TAJ SELEQIONS VIVANTA GINGER EXPRESS IONS TAJ. 11--ICl__.j RECAP
Re-imagined Brandscape: Brand Equity Like Always, Diverse and Enabling Like Never Before
Re-imagined Ginger: Value Like Always, Lean Luxe Like Never Before
Re-imagined TajSATS: Leadership in Volume Catering Like Always, F&B Offerings Like Never Before
Re-imagined Portfolio: Hospitality Like Always, an Ecosystem Like Never Before
Re-imagined Operational Excellence: Customer Centricity Like Always, Focus on Excellence Like Never Before
Re-structured for Scale: Market Leader Like Always, Growth Like Never Before
Re-structured Organization: Heart and Soul Like Always, Inclusion & Empowerment Like Never Before
Re-engineered Performance: Topline Growth Like Always, Profitability and Margin Expansion Like Never Before
Re-engineered Balancesheet: Strong Fundamentals Like Always, Healthy Like Never Before
96 A SHORT FILM ON IHCL’s JOURNEY OF ASPIRATION TO EXECUTION
97 Iconic Like Always, Profitable Like Never Before CAPITAL MARKET DAY | 24th February, 2020