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CIN:L55101WB1949PLC017981
CORPORATE OFFICE: 7 SHAM NATH MARG, DELHI -110054, INDIA / TELEPHONE: +91-11-23890505/ WEBSITE: WWW.EIHLTD.COM
13th August 2019
The National Stock Exchange of India Limited Exchange Plaza, 5th Floor Plot No..C/1, G Block Bandra Kurla Complex Bandra(E) Mumbai – 400 051. Code: EIHOTEL
BSE Limited Corporate Relationship Dept. 1st Floor,New Trading Ring Rotunda Building Phiroze Jeejeebhoy Towers Dalal Street,Fort Mumbai-400001 Code:500840
The Calcutta Stock Exchange Limited 7,Lyons Range Kolkata-700001 Code:05
SUB: SUBMISSION OF PRESENTATION TO INVESTOR / ANALYSTS Dear Sir / Madam, In Furtherance to our intimation dated 9th August 2019 and pursuant to Regulation 30(6) of SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015 (Listing Regulations), please find enclosed the copy of the presentation to be circulated to Investor / Analysts in respect of the Financial Results(Standalone and Consolidated) of the Company for the first Quarter ended 30th June 2019. Kindly take the above in your records and host in your website. Thanking you, Yours faithfully For EIH Limited
S.N. Sridhar Company Secretary
1
1. The Oberoi Dharma 2. The Oberoi Group Mission3. Business Overview4. EIH Group Presence5. Balanced Portfolio6. Planned addition of properties7. Operational Statistics8. Financials9. Ind AS 116 Impact
CONTENTS
3
The Oberoi DharmaFundamental Code of Conduct
Conduct which is of highest ethical standards, intellectual, financial and moral, and reflects the highestlevels of courtesy and consideration to others
Conduct which builds and maintains Team work, with mutual trust as the basis of all working relationship
Conduct which puts the customer first, the Company second and the self last
Conduct which exemplifies care for the customer through anticipation of need, attention to detail,excellence, aesthetics and style and respect for privacy along with warmth and concern
Conduct which demonstrates two-way communication accepting constructive debate and dissent whilstacting fearlessly with conviction
Conduct which demonstrates that people are our key asset, through respect for every employee, andleading from the front regarding performance achievements as well as individual development
Conduct which at all times safeguards the safety, security, health and environment of customers,employees and the assets of the Company
Conduct which eschews the short-term quick-fix for the long-term establishment of healthy precedent
We, as members of OBEROI Group are committed to display through our behaviour and actions thefollowing CONDUCT which applies to all aspects of our Business:
4
The Oberoi Group Mission
OUR GUESTSWe are committed to meeting and exceeding the expectations of our guests through our unremitting dedication to perfection, in every aspect of service
OUR PEOPLE We are committed to the growth, development and welfare of our people upon whom we rely to make this happen
OUR DISTINCTIVENESSTogether we shall continue the Oberoi tradition of pioneering in the hospitality industry, striving for unsurpassed excellence in high potential locations all the way from the Middle East to Asia Pacific
OUR SHAREHOLDERS As a result we will create extraordinary value for our shareholders
5
Business Overview
Operations
Oberoi Hotels & Resorts Trident Hotels
Business / Leisure Hotels in the premium segment
Operating in 5 countries –India, Mauritius, Egypt, UAE and Indonesia
First class hotels of International standard
Operations in India
Flight Catering
In-flight catering
Airport lounge & restaurant
Operates out of Mumbai, Delhi,Kolkata, Chennai and Mauritius
Other Businesses
Car Rental
Corporate Air Charter service
Printing Press
Hotels
Other businesses complement the core business of hospitality
6
EIH Group Presence
Figures in brackets indicate the number of rooms in each property; (1) Owned by EIH (2) Owned through subsidiaries / Associate Companies; (3) No Equity Interest
EGYPTThe Oberoi, Sahl Hasheesh (102)
The Oberoi Zahra (Cruiser) (27)
INDONESIAThe Oberoi, Bali (74)The Oberoi, Lombok (50)
MAURITIUSThe Oberoi, Mauritius (71)
UAEThe Oberoi Dubai (252)The Oberoi Al Zorah (104)
Jaipur (71)
The Oberoi Rajvilas(2)
Jaipur (134)(2)
Backwaters of Kerala (8)
The Oberoi M. V. Vrinda(1)
Luxury Cruiser
Cochin (85)(2)
Mumbai (287)
The Oberoi(1)
Mumbai (555)
Nariman Point(1)
Gurgaon (136)(3)
Udaipur (87)
The Oberoi Udaivilas(1)
Udaipur (143)(2)
Ranthambore (25) The Oberoi
Vanyavilas(1)
Chennai (167)(2)
Bangalore (160)
The Oberoi(1)
Bhubaneshwar (62)(2)
Kolkata (209)
The Oberoi Grand(1)
Shimla (75)
The Oberoi Cecil (2)
Mashobra, Shimla Hills (85)
Wildflower Hall(2)
New Delhi (220)
The Oberoi(1)
Agra (137)(2) Agra (102)
The Oberoi Amarvilas(2)
International(2)
The Oberoi
Trident
New Delhi (54)
Maidens Hotel(1)
We own and/or manage 31 Hotels with 4,503 rooms
Bandra Kurla (1)
Mumbai (436)
Gurgaon (202)
The Oberoi Gurgoan(3)
Hyderabd (323(2)
Chandigarh (65)The Oberoi Sukhvilas(3)
7
Balanced Portfolio
Significant presence in major tourist & business destinations with high room inventory Business Destinations - Mumbai, NCR, Kolkata, Bangalore, Chennai, Hyderabad Leisure Destinations - Agra, Jaipur, Udaipur, Kerala and Shimla
Assets irreplaceable in terms of location, ambience and experience Geographic spread helps
achieve synergies in occupancy by cross selling our properties mitigate effect of seasonality by efficiently utilizing personnel by re-deploying them between hotels
Figures in brackets are number of rooms
The Oberoi Mumbai (287)
The Oberoi New Delhi (220)
The Oberoi Grand, Kolkata (209)
The Oberoi, Bangalore (160)
Trident, Gurgaon (136)*
Trident,Nariman Point (555)
Trident, Bandra Kurla (436)
The Oberoi, Gurgaon (202)*
The Oberoi Amarvilas (102)*
The Oberoi Udaivilas (87)
The Oberoi Rajvilas (71)*
The Oberoi Vanyavilas (25)
The Oberoi Sukhvilas (60)*
The Oberoi Cecil (75)*
Wildflower Hall (85)*
The Oberoi M.V.Vrinda(8)
Trident , Chennai (167)*
Trident , Bhubaneswar (62)*
Maidens Hotel (54)
Trident Hyderabad (323)*
Trident, Agra (137)*
Trident,Udaipur (143)*
Trident, Jaipur (134)*
Trident, Cochin (85)*
Business Leisure
* Properties managed by EIH limited
8
Planned Addition/ Renovation
MoroccoThe Oberoi, Marrakech
QatarThe Oberoi, Doha
KenyaThe Oberoi Maasai Mara
ThailandThe Oberoi &Trident, Koh Tan Island
NepalThe Oberoi Kathmandu
Bandhavgarh
The Oberoi Bandhavgarh
International
Bangalore
The Oberoi, HebbalLake, Bangalore
Ahmedabad
The Oberoi GIR
Rajgarh
The Oberoi RajgarhPalace
GOA
The Oberoi, Goa
Agra
The Oberoi Amarvilas1
1Existing properties under renovation
Udaipur
Bangalore The Oberoi1
(Restaurants) New Addition
Hotels Under Renovation
Trident Udaipur1
9
In Flight Catering and Airport Services
EIH Limited was an early mover in the industry In-flight catering and related services to airlines started in 1966 First independent kitchen in 1979 in Delhi. OAS/ OFS has reported an average EBITDA of Rs.63.7 crore per year during the past 15 years.
In FY19, it supplied 13.7 million meals. In Q1 of the current year, it supplied 1.2 million meals as compared to 3.9 million meals Q1 last year.
It also provides laundry, provision of dry stores and bonded warehousing to airlines
EIH operates flight catering services and airport restaurant/lounge at the following locations:
Kitchen / Airport Service Locations
Airport Services Flight Services
Chennai
Delhi
Kolkata
Mumbai
Mauritius
10
OPERATIONAL STATISTICS - AnnualDomestic properties - Owned
6,686 7,308 7,639 7,880 8,490
67.7%
71.7%71.4%
70.1%69.6%9,872 10,202
10,695
11,246
12,200
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
62.0%
64.0%
66.0%
68.0%
70.0%
72.0%
2014-15 2015-16 2016-17 2017-18 2018-19
RevPAR-Rs. Occupancy-% ARR-Rs.
11
OPERATIONAL STATISTICS – Q1Domestic properties - Owned
5,647 5,916 6,265 6,624 6,506
65.5% 65.3% 65.3%64.4%
64.9%8,618
9,061 9,591
10,284 10,023
-
2,000
4,000
6,000
8,000
10,000
12,000
42.0%
47.0%
52.0%
57.0%
62.0%
67.0%
72.0%
Jun-15 Jun-16 Jun-17 Jun-18 Jun-19
RevPAR-Rs. Occupancy-% ARR-Rs.
12
Operational Statistics – Q1Domestic Properties – Owned / Managed
62.61% 63.47%
0.00%
25.00%
50.00%
75.00%
Q1 Jun 18 Q1 Jun 19
1.37%
Note:
1. Occupancy and RevPAR are for Domestic properties only.
2. Includes managed properties.
2. The results of this quarter are not indicative of full year’s performance due to seasonal nature of the hotel industry.
Occupancy (%)
6,270 6,310
-
2,000
4,000
6,000
8,000
Q1 Jun 18 Q1 Jun 19
RevPAR (`)
0.64%
13
Operational Statistics – Q1Domestic + International – Owned / Managed
60.18% 61.14%
0.00%
25.00%
50.00%
75.00%
Q1 Jun 18 Q1 Jun 19
1.60%
Occupancy (%)
6,657 6,700
-
2,000
4,000
6,000
8,000
Q1 Jun 18 Q1 Jun 19
RevPAR (`)
0.65%
Note:
1. Includes managed properties.
2. The results of this quarter are not indicative of full year’s performance due to seasonal nature of the hotel industry.
14
Operational Statistics – Q1Brand Wise ~ Domestic + International – Owned / Managed
51.40% 53.01%
0.00%
25.00%
50.00%
75.00%
Q1 Jun 18 Q1 Jun 19
3.13%
1. Includes managed properties.
2.The results of this quarter are not indicative of full year’s performance due to seasonal nature of the hotel Industry.
Occupancy (%)
7,736 7,918
-
2,500
5,000
7,500
10,000
Q1 Jun 18 Q1 Jun 19
RevPAR (`)
2.35%
Oberoi Hotels
Trident Hotels
71.11% 70.95%
0.00%
25.00%
50.00%
75.00%
Q1 Jun 18 Q1 Jun 19
5,314 5,230
-
2,000
4,000
6,000
Q1 Jun 18 Q1 Jun 19
0.23% 1.57%
15
Market LeaderFY 2018-19
Oberoi Branded Hotels STR Rank
The Oberoi, Mumbai 3
The Oberoi, Bengaluru 1
The Oberoi Grand, Kolkata 1
The Oberoi, Gurgaon 1
The Oberoi, Rajvilas 1
The Oberoi, Udaivilas 2
The Oberoi, New Delhi 1
The Oberoi, Cecil 2
The Oberoi, Sukhvilas 3
Trident Branded Hotels STR Rank
Trident, Nariman Point 2
Trident, Bandra Kurla 2
Trident, Gurgaon 1
Trident, Chennai 6
Trident, Hyderabad 2
Trident, Agra 3
Trident, Jaipur 2
Trident, Udaipur 1
Trident, Cochin 5
Hotel-wise STR ranking suggests Oberoi & Trident branded hotels continue to be the leaders across India with 7 hotels ranked # 1 and 6 hotels ranked # 2 out of total 18 hotels in India
International Oberoi Branded Hotels STR Rank
The Oberoi, Bali 7 of 11The Oberoi, Mauritius 3 of 6The Oberoi, Sahl Hasheesh 1 of 6
* STR date in respect of The Oberoi Amarvilas, The Oberoi Vanyavilas, Wild Flower Hall, The Oberoi MV Vrinda, Trident Bhubaneshwar and Maidens Hotel is not available.
* STR data in respect of other International properties is not available.
16
Historical Financials (EIH CFS)Turnover (Rs. Cr) EBITDA (Rs. Cr)
PAT (Rs. Cr) Net Worth (Rs. Cr)
1697 1700 1618 1705 1880
0400800
120016002000
Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
2729 2712 2781 2883 2993
0500
100015002000250030003500
Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
355 374309
422487
0%
10%
20%
30%
40%
0100200300400500600
Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
EBITDA Margin
63
131103
179
132
0%
2%
4%
6%
8%
10%
12%
0
50
100
150
200
Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
PAT Margin
17
Q1 Financials (EIH CFS)Turnover (Rs. Cr) EBITDA (Rs. Cr)
PAT (Rs. Cr) Net Worth (Rs. Cr)
400 358
0100200300400500
Q1 Jun 18 Q1 Jun 19
2930 2990
0
1000
2000
3000
Q1 Jun 18 Q1 Jun 19
68
4917%
14%
0%
10%
20%
30%
40%
0
20
40
60
80
Q1 Jun 18 Q1 Jun 19EBITDA Margin
15
-1
-1%
0%
1%
2%
3%
4%
-5
0
5
10
15
20
Q1 Jun 18 Q1 Jun 19
PAT Margin
60 cr
42 cr
* The drop in revenue in the current quarter is attributable to slowdown in business travel due to high airline fares, General Elections in India and general slowdown in consumption.
18
Q1 Financials (EIH Standalone)Turnover (Rs. Cr) EBITDA (Rs. Cr)
PAT (Rs. Cr) Net Worth (Rs. Cr)
343 303
0100200300400500
Q1 Jun 18 Q1 Jun 19
2813 2848
0
1000
2000
3000
Q1 Jun 18 Q1 Jun 19
57
3517%
12%
0%
10%
20%
30%
40%
0102030405060
Q1 Jun 18 Q1 Jun 19
EBITDA Margin
10
-7 -3%-2%-1%0%1%2%3%4%
-10
-5
0
5
10
15
Q1 Jun 18 Q1 Jun 19
PAT Margin
35 cr
40 cr
19
FINANCIAL PERFORMANCE (EIH CFS)Q1 FY20
JUN’19 JUN’18 INC / (DEC)
Revenue 358.22 400.35 (42.13)
Expenditure 308.11 331.34 (23.23)
EBITDA 50.11 69.01 (18.90)
Interest 13.51 11.23 2.28
Depreciation 36.31 32.78 3.53
Exceptional item – loss (0.47) - (0.47)
Share of Net Profit of Associates and JVs (1.15) (1.49) 0.34
Profit before tax (1.33) 23.51 (24.84)
Tax including deferred tax (0.20) 8.81 (9.01)
Profit After Tax (1.13) 14.70 (15.83)
OCI (0.50) (1.80) 1.30
Total Comprehensive Income (1.63) 12.90 (14.53)
(Rs. Crore)
20
FINANCIAL PERFORMANCE (EIH Standalone)Q1 FY20
JUN’19 JUN’18 INC / (DEC)
Revenue 302.99 343.46 (40.47)
Expenditure 268.08 286.65 (18.57)
EBITDA 34.91 56.81 (21.90)
Interest 12.12 10.14 1.98
Depreciation 33.57 30.64 2.93
Exceptional item – loss (0.47) - 0.47
Profit before tax (11.25) 16.03 (27.28)
Tax including deferred tax (4.15) 5.84 (9.99)
Profit After Tax (7.10) 10.19 (17.29)
OCI (0.45) (1.79) 1.34
Total Comprehensive Income (7.55) 8.40 (15.95)
(Rs. Crore)
21
Impact on Profit and Loss Statement for the quarter ended June 2019 :
Particular Before Ind AS 116 After Ind AS 116 Net Impact on Profit
Lease Rent 2.16 - 2.16
Others 1.19 - 1.19
Net EBITDA 3.35 - 3.35
Interest expenses 0.08 2.32 (2.24)
Depreciation 0.12 3.24 (3.12)
Profit Before Tax 3.15 5.56 (2.01)
Amount in Rs. crore
Impact of IndAS 116 on Company’s Financials
The impact of adoption of Ind AS 116 on the financial results of Subsidiaries and Associates for the quarter is insignificant.