Presentation Transcript

1. Mahindra Holidays & Resorts India Ltd.

   Changing the Way India Holidays (updated as at Dec 31, 2010)
2. The MHRIL story Company Overview 1 Differentiated Approach: Customer Centric Design 2 Integrated and Mixed Use Business Model 3 Unique Revenue Model 4 Proven Financial Performance 5 Way Forward 6
3. Company Overview Highlights & Milestones Product Portfolio
4. Highlights & Milestones Among the Top 10 Vacation Ownership Companies in the World# India’s No.1 Vacation Ownership Company 121,751 Vacation Ownership (VO) members as at Dec 31, 2010 72% of the total active VO members in India with RCI* 34 resorts, 1,555 apartments & cottages as at Dec 31,2010 Impressive Growth Rates 5 year CAGR for Income at 43% 5 year CAGR for PAT at 54% “Club Mahindra Holidays”: Superbrand 2009** 10 RCI Gold Crown Resorts: Munnar and Goa for 10 consecutive years Ranked 150 in Business Today BT Top 500 (2009) One of Best performing Global IPO by Wall street Journal (lone Indian IPO) # Company Sources * Source: Group RCI as on May 31, 2009 **Source: Brand Council in India
5. Product Portfolio Flagship Brand : India’s No. 1 holiday brand Offers “Family Holidays” 7 days every year for 25 years 27 resorts in India & Thailand. 5,087 resorts through RCI Age Segment 30 – 55 years 1997 Offers “Short Breaks” 6 days every year for 10 years Across 5 resorts Target Segment young urban families 2006 Corporate Membership Offers Reward & Recognition solutions Points based platform to aid flexibility for Corporates 2006 FAMILY HOLIDAYS 1 stop shop for family holiday & travel related services Powered thru e-commerce website, dedicated call center 2008 Provides accommodation in private homes Has aggregated 205 homes across 14 states Launched in the UK, extended into India 2008 Tented campsite specially designed for families Outdoor & Adventure activities to bring people closer to nature 2010
6. Differentiated Approach Customer Centric Design Product Features
7. Understanding Vacation Ownership ‘Concept of Vacation Ownership’ Key features of the conventional model Ownership at a fixed resort location for a fixed week in the year every year in a fixed season and room type Conventional Proposition: Essentially discounted accommodation room nights.
8. Customer Centric Design Conventional Model Club Mahindra Model Fixed Week Fixed Resort Variable Price Model Limited Service Resort Distinct Developer, Marketer and Service Operator Pure Timeshare Resorts Floating Week Floating Resort Gives customer flexibility: Time of holiday, duration, destination of choice Fixed Retail Price Greater transparency Full Service Resort Amenities, Facilities and Services Complete Family Holiday Experience Vertically Integrated Operations Deliver on promised value Mixed Use Resorts Maintain Quality ONE WEEK EVERY YEAR FOR 25 YEARS, RIGHT-TO-USE MEMBERSHIP IN THE SEASON AND APARTMENT TYPE THE MEMBER CHOOSES For conditions of usage please refer to the Membership Application Form available at any of our offices, branches and outlets
9. Integrated & Mixed Use Business Model Integrated Value Chain Multiple Sales Channels Resort Network Family Holiday Experience
10. Delivery Through Integrated Value Chain
11. Reaching Customers throughInnovative Sales & Marketing Channels Follow Permission Marketing Approach Retails Outlets: Club Mahindra Holidayworlds at Malls and shopping complexes Direct to home: Meet target members at home Onsite: Club Mahindra Holidayworlds at resorts Multiple Sales Channels BranchOffices 19 Retail Outlets 36# Franchisee 126** ServiceOffice 3* Onsite 11 *Dubai ; **including Dubai & Kuwait; #29 Direct and 7 Franchise Pan India multi-channel sales team
12. Operational Under Development Pan India presence Manali Dharamsala Shimla Binsar (2) Green Fields Naukuchiatal Theog Mussoorie Corbett Gangtok Nawalgarh Ramnagar Sariska Osian Ranthambore Kumbalgarh Gir Tungi Panchgani Kas Hyderabad Varwade Kadapakkam Goa (2) Pondicherry Coorg Munnar Yercaud Masinagudi Thekkady Swamimalai Ashtamudi Ooty (2) Kodaikanal Poovar *Also present in Thailand **Besides resorts shown in map Club Mahindra members have access to a total of 5,087 RCI affiliated resorts across the world 12
13. Holistic Family Holiday Experience Activities & amenities giving complete holiday experience# Accreditation for quality resort services Strategy to enhance holiday experience Fun dining Restaurants & Gourmet takeaways Svaastha Spas/Ayurvedic Spas Kids Club Champs Bars Swimming pool Conferences & Outbound Trainings 10 RCI Gold Crown resorts 2 Resorts 5 Star accredited by Dept. of Tourism GOI MRD processes certified ISO:9001-2000 compliant PCMM level 3 assessed at Goa Resort BHC certified Hygiene systems Designed to suit topography of the location Non-conventional accommodation such as log huts, tents and floating cottages Resort Design Adding innovative activities # Activities and amenities at certain locations are resort specific and may not be available at all locations throughout the year
14. Unique Revenue Model Multiple Revenue stream Continuous Value creation from single unit The Club Mahindra Advantage
15. Revenue Streams From Members Membership Fee: Admission Fee Entitlement Fee Annual Subscription Fee: (ASF) Interest: On Instalments (EMI’s) Resort Revenue: Revenue generated at the resort during the holiday Recurring Income:Entitlement Fee Upfront Cash:Admission Fee
16. Unique Revenue Model Value created continuously from a single resort unit.. Timeline (years) Resort – FIT Interest on EMI Resort - Members Annual Subscription Fee Entitlement Fee Admission Fee Income from Financing Recurring Revenue Streams*: ASF, Usage Fee, Resort Revenues Value Creation Profile Large Upfront Cash-flow Residual Value *: Opportunity for 2nd cycle - ZERO Marginal Cost of Inventory Value Realized Built in Annuity Stream Upfront Cash: Admission Fee Residual Value 26 0 25 *Inflation not considered
17. The Club Mahindra Advantage
18. Details of income All Figs in Rs crores For FY 05 to FY 09 numbers are from the MHRIL Prospectus
19. Balance Sheet
20. Strong Financial Performance Sustained Growth Financials Highlights: 9M FY11 and Q3 Consolidation Measures for the future
21. Growth Rate Please note, all figures are based on consolidated financial statement , Div for FY 10 is proposed .
22. Sustained Growth Inventory (Number of Units) Cumulative VO Membership CAGR FY08 – FY10: 31% CAGR FY08 – FY10: 24% Receivables Available for securitization (INR Cr) Total Income (INR Cr) CAGR FY08 – FY10: 52% CAGR FY08 – FY10: 37%
23. Consistent Financial Growth EBITDA (INR Cr) PAT (INR Cr) CAGR FY08 – FY10: 49% CAGR FY08 – FY10: 67% PBIDT and PAT Margins Please note, all figures are based on standalone financial statement
24. Nine Month Ending Sept 30, 2010 9M F11 Highlights 9M Total income at INR 364.44 Cr 9M PAT at INR 62.59 Cr 11,867 members added Cumulative member base as on 31st Dec 2010: 121,751 CMH 114,879 and Zest 6,872 Launched Terra a Tented campsite with adventure activities giving customers an outdoorsy experience MOU signed with the Government of Gujarat for setting up 7 resorts MHRIL became the first vacation ownership company in the world to have received the prestigious COPC certification. Won prestigious Bird Express TravelWorld Awards for Excellence in Operations
25. Quarter Ending Dec 31, 2010 Q3 F11 Highlights Q3 Total income at INR 144.5 Cr (Growth of 14.1% ) Q3 PAT at INR 31.1 Cr (Growth of 30.6% ) Q3 EBITDA at INR 51.9 Cr (Growth of 25.0% ) 3,758 members added Occupancy was 81.4% against 74.1% in Q3 LY 3 New destinations added : Osian , Navalgarh and Swamimalai
26. Consolidation Measures for the future Measures taken at start of fiscal year Move from “Aggressive-Push” to “Assisted-Pull” approach in Acquisition Sales processes streamlined Price increase 5% DP increased to 15% Limit Tenure to 48 EMI plans Strengthening memberbase health through re-alignments and cancellations Upsides More committed and actively holidaying member base Improved Yield : from New Sales funnel and receivables Released old inventory for resale at current prices Downsides Short term ‘pains’: “dampener” impact on Revenues and PAT
27. MHRIL Growth Strategy Strategy Formulation Intensify, Integrate & Diversify
28. Strategy Formulation India Story: Strong Fundamentals Travel & Tourism: Growth Sector VO Industry: Nascent market New Segments Environment & Industry + + CHANGEIdentified Business Processes to suit the changed times. CONSOLIDATEIntensify existing VO operations. Enter new segments. BE FUTURE READYLeverage Competences & enter related businesses. Test new initiatives. Growth Strategy Management Competences Leading Brand, Mahindra Group, Unique & Differentiated Biz Model, Human Capital Competitive Advantage + 28 Growth Strategy driven byAn enabling environment & our competitive advantage
29. Product Existing New Club Mahindra + Geographical/ Channel Expansions, Extensions for Sr. Citizens & Teens Zest, Fundays, Fractionals, Mass Market VO, Club M India Travel Services Homestays, Svaastha, Campsites Geographical Market International Expansions Global Growth Strategy Intensification: Build on the VO business Geographic Expansion Age Segments Project GYPSY, Senior Citizens Income Segments Fractionals, Mass-market VO Integration: Strengthen the Value Chain Travel Services Diversification: Expand into Holiday Related Services Homestays, Svaastha Intensify Integrate Diversify 29

30. Thank You!