The Indian Hotels Company Limited

Transcription

1 The Indian Hotels Company Limited May,2016 Corporate Presentation 1

2 Disclaimer These presentations 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 guarantees of future performance and involve risks and uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Future results, performance and achievements may be affected by general economic conditions, regulatory environment, business and financing conditions, foreign exchange fluctuations, cyclicality and operating risks associated with the hospitality industry and other circumstances and uncertainties. Although we believe the expectations reflected in such forward looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise 2

3 Key Highlights World GDP growth projected at 3.2% for GDP growth of India higher than China 7.3% vs 6.9% India s GDP projected to grow by 7.5 % in 2016/17 Monsoon, Inflation, Oil Prices, Reforms key areas to look out for in India s growth Growth rate in Domestic rooms Demand Outpaces supply growth Occupancies show improvement However, ARRs remain flat Foreign Tourists arrivals growth at 10 % for Jan to April 2016 (E visa Scheme) Domestic Tourists & F&B to drive growth Taj Group portfolio touches 136 Hotels; Room inventory Of Taj Group crowned the Best Hotel Group in India at the T+L India's Best Awards Taj Group featured on the list of 10 of the World s Best Luxury Hotel Brands by Forbes Added 1400 rooms in 2015/16. To add 900 rooms in current year Completed Restructuring of International Overseas Holdings, now housed in a offshore WOS Currently in process of amalgamating two WOS with IHCL To Pursue Divestment of Taj Boston, whilst Retaining management contract Focus on growth by management contracts to ensure minimal capital requirement 3

4 Presentation Structure Industry Highlights Taj Group An Overview New Inventory Land Bank Financial Performance Awards & Accolades 4

5 Industry Highlights 5

6 Industry Highlights - Outlook International travel and tourism arrivals grew by 4.4% to reach a total of 1,184 million in 2015, 50 million more than in Strong growth in Americas (+5%), Asia Pacific (+5%), Europe (+5%), the Middle East (+3%), whilst limited data available for Africa points to a (3%) decrease in that market As per WTTC Travel & Tourism sector generated US $7.2 trillion (9.8% of global GDP) supported 284 million jobs. Over the next ten years, travel and tourism is anticipated to contribute US$ 11.0 trillion in GDP to the world economy, and will support 370 million jobs worldwide /16 saw a supply growth of 3.9%, while demand increased by 10.5% over the previous year. Most key cities witnessed an increase in supply in the range of 3% to 6% E-Tourist Visa scheme for India is now available across 150 countries, at 16 Airports in India. Source : WTTC, UNWTO, Ministry of tourism India, STR Global 6

7 Foreign Tourist Arrivals in India Foreign tourist arrivals in India have shown growth in each quarter for past 5 years. Foreign tourist arrivals during 2015 / 16 were lakh, a growth of 6.2% Source : Ministry of tourism India 7

8 India : Source Markets Country of Nationality In Lakhs No of Arrivals Percentage Share America North America % 18.1% 18.6% Central and South America % 0.9% 0.9% % 19.0% 19.5% Europe Western Europe % 24.2% 23.4% Eastern Europe % 5.5% 4.1% % 29.7% 27.5% Asia West Asia % 5.4% 5.2% South Asia % 22.1% 24.2% South East Asia % 8.9% 8.7% East Asia % 7.1% 6.9% % 43.5% 45.1% Africa % 3.7% 3.7% Australia & New Zealand % 3.7% 3.9% Others % 0.4% 0.3% Source:- INDIA TOURISM STATISTICS % 100.0% 100.0% 8

9 Domestic Visits Growing over the Years Figures in crores Source: INDIA TOURISM STATISTICS 2014 Domestic travel visits continue to show robust growth and grew 12.9 % in

10 India Hotel Performance Key cities 2015 / 16 There has been an overall 3.9% increase in Supply in 2015 /16 as compared to period last year. the same Demand growth has been 10.5% for this period However, the supply / demand gap is still significant in most cities, impacting ARRs 10 Source : STR Global

11 Occupancies % Year on Year Trend All Cities have witnessed improved occupancy levels over the previous year Source : STR Global 11

12 ARRs Year on Year Trend Despite growth in domestic demand, ARRs have continued to be flat, across India Source : STR Global 12

13 Taj Group An Overview 13

14 Business Structure IHCL By business portfolio By legal entity Owned hotels Subsidiary companies Leased/ Licensed hotels Joint ventures Managed hotels Associate companies 14

15 Taj Group Major Companies Company Name Effective Holding % Company Name Effective Holding % Subsidiaries Joint Ventures Piem Hotels Ltd Taj GVK Hotels & Resorts Ltd Taj SATS Air Catering Ltd Taj Madras Flight Kitchen Pvt Ltd TIFCO Holdings Ltd [Investment Company] Taj Kerala Hotels & Resorts Ltd Benares Hotels Ltd Taj Karnataka Hotels & Resorts Ltd United Hotels Ltd Taj Safaris Ltd Roots Corporation Ltd Kaveri Retreat & Resorts Ltd Lands End Properties Pvt Ltd IHMS (SA) Pty Ltd Skydeck Properties Pvt Ltd TAL Hotels & Resorts Ltd United Overseas Holdings, Inc St James Court Hotel Ltd Associates IHOCO BV [Investment Company] Oriental Hotels Ltd Samsara Properties Ltd [Investment Company] Lanka Island Resorts Ltd TAL Lanka Hotel PLC

16 Taj Brand Extensions 16

17 Taj Group Inventory Brand Distribution Brands Domestic International Total No of Hotels Inventory No of Hotels Inventory No of Hotels Inventory 20 3, , , , , , , ,170 Total , , ,759 17

18 Current Portfolio # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms HOLDING COMPANY SUBSIDIARY COMPANIES SUBSIDIARY COMPANIES (Continued) Piem Hotels Limited Roots Corporation Limited The Indian Hotels Company Limited 4406 (Taj Group 51.57%, Nagpals 39.47%) 922 (Taj Group 66.9%, Tata Fund 27.6%) Taj Mahal Palace, Mumbai Vivanta by Taj - President, Mumbai Ginger Hotel - Agartala Taj Lands End, Mumbai Vivanta by Taj - Blue Diamond, Pune Ginger Hotel - Ahmedabad 93 3 Taj Wellington Mews, Mumbai Vivanta by Taj - Gomti Nagar, Lucknow Ginger Hotel - Bangalore (Whitefield) Taj Mahal Hotel, New Delhi Vivanta by Taj - M G Road, Bangalore Ginger Hotel - Bangalore (Inner Ring Road) 88 5 Taj Palace, New Delhi The Gateway Hotel - Ambad, Nashik Ginger Hotel Bhubaneshwar Taj Bengal, Kolkata The Gateway Hotel- Fatehabad Road,Agra Ginger Hotel - Chennai (Vadapalani) 79 7 Taj West End, Bangalore Ginger Hotel - Chennai (IITM) 85 8 Taj Lake Palace, Udaipur 83 United Hotels Limited 48 Ginger Hotel Faridabad 91 9 Taj Falaknuma Palace, Hyderabad 60 (Taj Group 55%, Kumar Family 45%) 49 Ginger Hotel Goa Taj Exotica, Goa Vivanta by Taj - Ambassador, New Delhi Ginger Hotel Guwahati Vivanta by Taj - Aurangabad, Maharashtra Ginger Hotel Indore Vivanta by Taj - Connemara, Chennai 150 Benares Hotels Limited 52 Ginger Hotel Jaipur Vivanta by Taj - Dwarka, New Delhi 250 (Taj Group 53.7%, Royal Family 8.8%) Ginger Hotel Jamshedpur Vivanta by Taj - Fort Aguada, Goa Nadesar Palace Varanasi Ginger Hotel Mangalore Vivanta by Taj - Holiday Village, Goa The Gateway Hotel - Ganges, Varanasi Ginger Hotel - Mumbai (Andheri East) Vivanta by Taj - Hari Mahal, Jodhpur The Gateway Hotel - Balaghat Road, Gondia Ginger Hotel Mysore Vivanta by Taj - Whitefield, Bangalore Ginger Hotel Nashik Vivanta by Taj - Yeshwantpur, Bangalore 327 International Hotel Mgmt Services Inc (Taj Group - 100%) Ginger Hotel - Delhi (Rail Yatri Niwas) Jai Mahal Palace, Jaipur The Pierre, New York Ginger Hotel - East Delhi Usha Kiran Palace, Gwalior Taj Boston, Boston Ginger Hotel Noida Vivanta by Taj - Guwahati Taj Campton Place, San Francisco Ginger Hotel Pantnagar The Gateway Hotel - Residency Road, Bangalore Ginger Hotel Pondicherry The Gateway Hotel - Beach Road, Calicut 74 St James Court Hotels Limited 63 Ginger Hotel - Pune (Wakad) Hotel Chandela, Khajuraho 90 (Taj Group 100 % ) Ginger Hotel - Pune (Pimpri) Hotel Savoy, Ooty St. James Court, A Taj Hotel, London Ginger Hotel Surat Taj 51 Buckingham Gate Suites, London Ginger Hotel Thane Ginger Hotel Trivandrum Ginger Hotel Vadodara 99 18

19 Current Portfolio # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms MANAGED PROPERTIES ROOTS CORP 525 MANAGEMENT AGREEMENTS Ginger Hotel - Chandigarh 102 Taj GVK Hotels & Resorts Limited 70 Ginger Hotel - Gurgaon (Manesar) 61 (Taj Group %, GVK Group %) Taj Santacruz Ginger Hotel - Katra, Jammu Taj Krishna, Hyderabad Umaid Bhawan Palace, Jodhpur Ginger Hotel Tirupur Vivanta by Taj - Begumpet, Hyderabad Rambagh Palace, Jaipur Ginger Hotel Vizag Taj Banjara Hyderabad Imperial Club by Taj, Mumbai 9 74 Ginger Hotel Tirupati Taj Deccan, Hyderabad Taj Dubai Taj Club House, Chennai Taj Bangalore 154 ASSOCIATE COMPANIES 92 Taj Chandigarh, Chandigarh Vivanta by Taj Bekal, Kerala Vivanta by Taj Dal View, Srinagar 83 Oriental Hotels Limited 1060 Taj Kerala Hotels & Resorts Limited 113 Vivanta by Taj Gurgaon, NCR 208 (Taj Group 37.05, Reddy s 26.72%) (Taj Group 31.3% Govt 33.33%) Vivanta by Taj Kovalam, Kerala Taj Coromandel, Chennai Vivanta by Taj - Kumarakom, Kerala Vivanta by Taj Panaji, Goa Vivanta by Taj - Fisherman's Cove, Chennai The Gateway Hotel - Marine Drive, Ernakulam Vivanta by Taj Sawai Madhopur Vivanta by Taj - Malabar, Cochin The Gateway Hotel-Janardhanapuram, Varkala Vivanta by Taj Surajkund Vivanta by Taj - Surya, Coimbatore Taj Pamodzi Zambia Vivanta by Taj - Trivandrum, Kerala 137 Kaveri Retreats & Resorts Limited 119 Taj Tashi, Thimpu, Bhutan The Gateway Hotel - Beach Road, Visakhapatnam 95 (Taj Group - 50%, Pramod Ranjan Group - 50%) 120 Vivanta by Taj - Reebak Island, Langkawi The Gateway Hotel - Church Road, Coonoor Vivanta by Taj - Madikeri, Coorg The Gateway Hotel Akota Gardens, Vadodara The Gateway Hotel - Old Port Road, Mangalore The Gateway Hotel Athwalines, Surat The Gateway Hotel - Pasumalai, Madurai 63 Taj Safaris Limited 123 The Gateway Hotel - Damdama Lake Gurgaon 78 (Taj Group 33.48%, Choudhury group 31.9%) The Gateway Hotel EM Bypass, Kolkata 79 TAL Lanka Hotels PLC ( TAL %, IHCL 24.62%) 97 Mahua Kothi - Bandhavgarh The Gateway Hotel Gir Forest,Junagadh Taj Samudra, Colombo Banjaar Tola Kanha The Gateway Hotel GE Road, Raipur Pashan Garh Panna The Gateway Hotel IT Expressway, Chennai 200 Lanka Island Resorts Limited 100 Baghvan Pench The Gateway Hotel Lakeside Hubli 92 (Hirdaramanis 50%, Taj Group 50 %) 129 The Gateway Hotel Pune Vivanta by Taj - Bentota, Sri Lanka 160 MANAGED PROPERTIES Taj Safaris Limited 130 The Gateway Hotel MG Road,Vijayawada Meghauli Serai - Chitwan National Park The Gateway Hotel Ramgarh Lodge, Jaipur 14 JOINT VENTURE COMPANIES 132 SMS Hotel, Jaipur 27 IHMS (SA) Pty Limited 133 The Gateway Hotel -Airport Garden, Colombo 208 Taj Karnataka Hotels & Resorts (Taj Group - 50%, Tata Africa 50%) 134 The Gateway Resort Pushkar Bypass Ajmer 81 (Taj Group 60 %, Government - 40%) 102 Taj Cape Town, South Africa The Gateway Hotel- KM Road, Chikmagalur 29 TAL Maldives Resorts Private Limited (Taj Group -50% Choudhury 50%) Taj Exotica, Maldives Vivanta by Taj - Coral Reef, Maldives 62 19

20 Competitive Set Midscale Brand 20

21 Overview of Taj Group For the Year ended March 31, 2016 Particulars 2015/ / / /13 Number of Hotels Rooms Inventory Total Revenue (`/crores) 16,459 15,658 15,391 14,331 6,717 6,015 5,677 5,102 Total Revenue denotes the arithmetical aggregate of the turnover of all hotels/units irrespective of ownership, including Management Contracts 21

22 New Inventory 22

23 Hotels Opened In 2015/16 Hotel Company Rooms TAJ Taj Downtown, Dubai Management Contract 296 Taj Bangalore Hotel, Bangalore Management Contract 154 Taj Santacruz Hotel, Mumbai Taj GVK 283 Vivanta Vivanta by Taj, Guwahati IHCL 150 Gateway Gateway Hotel, Nashik (Expansion) Piem Hotels 78 Gateway Hotel, Hinjewadi, Pune Management Contract 150 Gateway Hotel,Ajmer Management Contract 81 Ginger Ginger Udayee, Tirupati Roots Corporation 119 Total 8 Hotels

24 New Launches in 2015 / 16 Taj Santacruz 24

25 New Launches in 2015 / 16 Taj Bangalore 25

26 New Launches in 2015 / 16 VBT Guwahati Vivanta by Taj, Guwahati Taj Santacruz Taj Bangalore 26

27 New Launches in 2015 / 16 Taj Safaris-Meghauli Serai, Nepal 27

28 New Launches in 2015 / 16 The Gateway Hotel, Hinjewadi, Pune 28

29 New Launches in 2015 / 16 The Gateway Resort, Taj Safaris-Meghauli Ajmer Serai Gateway Hotel, Hinjewadi 29

30 Upcoming Development in 2016/17 Hotel Company Rooms Taj Taj Exotica, Havelock, Andamans Kaveri Hotels (JV) 75 Safari Meghauli Serai Chitwan National Park, Nepal (Soft Opened) Management Contract 26 Vivanta by Taj Vivanta by Taj, Amritsar PIEM Hotels 157 Vivanta by Taj, Udaipur Management Contract 112 Gateway Gateway Hotel, Corbett Management Contract 52 Gateway Hotel, Tirupati Management Contract 125 Ginger Vapi, Opp Empress Mall Roots Corporation 87 Bhubaneshwar (Expansion) Roots Corporation 60 Telly Gally, Mumbai Roots Corporation 142 Noida 2, UP Roots Corporation Hotels

31 Land Bank 31

32 Land Bank The Taj Group currently has more than 900 acres of land at strategic locations in India, across 26 sites This landbank has been acquired over a period of time in the past and would beneficially impact project viability/feasibility of new developments on such sites Alternatively, the landbank represents a significant means of options to create liquidity, where owned The Taj Group is currently evaluating strategic options to efficiently leverage the value creation potential in its land bank and project time lines. 32

33 Financial Performance Year ended March 31,

34 IHCL Standalone Key Indicators Turnover 2,500 2,104 2,382 `/crores 13 % EBITDA `/crores % 2, ,500 Profit Before Tax (before Exceptional Items) 2014/ / `/crores - Profit After Tax 2014/ /16 `/crores % / /16 34

35 Profit and Loss Account Year ended March 31, 2016 `/ crores Quarter IV Full Year 2015/ /15 % Change 2015/ /15 % Change Net Sales/Income from Operations Other Operating Income - - Total Income from Operations Cost of Materials Consumed Employee Benefits Expense License Fees Fuel, Power and Light Depreciation and Amortisation Expense Other Expenditure Total Expenditure Profit/ (Loss) from operations before Other Income, Finance Costs and Exceptional Items Other Income Profit/ (Loss) before Finance Costs and Exceptional Items Finance Costs (1) Profit/ (Loss) after Finance Costs but before Exceptional Items Exceptional items (17.18) (196.54) (10.21) (228.70) Profit/ (Loss) before tax (70.41) Provision for Taxes Profit/ (Loss) After Tax (119.15) (82.02) 35

36 Financials Summary Year ended March 31, 2016 `/crores Particulars Quarter IV Full Year 2015/ / / /15 Total Income EBITDA EBITDA % 30% 28% 23% 21% Profit/(Loss) before Finance Cost & Exceptional Item Profit/(Loss) after Finance Costs but before Exceptional Item Exceptional Item Exchange Gain/( Loss) (16.83) 7.41 (56.56) (24.75) Exceptional Item Others (0.35) (203.95) (203.95) Profit /(Loss) before Tax (70.41) Tax Expense (47.70) (48.74) (110.64) (83.90) Profit / (Loss) after Tax (119.15) (82.02) 36

37 Income Details Rs / Crores 2015/ /15 % Change Room Income Food &Beverages and Banquet Income Management & Operating fees Other Operating Income Income from Operations Non Operating Income Total Income Room Income grew by 10%, pushed by higher occupancies as also on account of new hotels at Dwarka - NCR ( full year impact) and at Guwahati Healthy Increase in Restaurant sales and Banqueting business Non Operating Income of Rs 109 crores includes Treasury Income earned on surplus funds being carried by the company during the year as also Dividend Income. 37

38 Exceptional Items Rs/ Crores Particulars 2015/ /15 Profit on Sale of Investments Exchange Gain/(Loss) (56.66) (24.75) Diminution in value of long term investments (0.35) (213.49) Others (9.83) 9.54 Total (10.21) (228.70) The company divested its holding in Tata Projects Ltd during the year and earned a gain on sale of such investment of Rs crores Exchange Loss mainly comprise of notional restatement of company s USD long term loans on account of exchange rate movement 38

39 Expenditure Raw Materials Cost Rs crores Increase in line with higher F&B revenue for the year. Some cost push due to commodity input cost increase. Employee Benefit Expenses Rs Crores Costs controlled on account of various interventions adopted by the Company. Payroll cost higher over PY due to a combination of Increments to employees, additional cost on account of new hotels at Dwarka & Guwahati as also due to actuary driven non cash charge taken for retirement benefits License Fees Rs crores Increase linked to higher Turnover Fuel, Power & Light Rs crores Same levels as PY notwithstanding increase in turnover of the company during the current year and addition of new inventory 39

40 Expenditure Other Expenditure - Rs crores Increase during the year aligned with increase in turnover. Rent rates & Taxes, Repairs & Maintenance costs nominally increased during the year. Conversely, the advertising costs were lower when compared to PY. Depreciation & Amortisation Rs crores Higher due to opening of new hotel at Dwarka Finance Costs Rs crores Lower levels due to deleveraging measures of the Company resulting in reduced debt 40

41 ` / Crores March 31, 2016 March 31, 2015 Shareholders Funds 3,886 2,615 Non- Current Liabilities Long-term borrowings 1,558 2,898 Other Long Term Liabilities Long-term Provisions/ Deferred Tax Liabilities (net) Current Liabilities Short Term borrowings 7 1 Other Current Liabilities Trade Payables/Short-term provisions Equity and Liabilities 7,562 7,198 Non-current Assets Fixed Assets(including CWIP) 2,212 2,154 Non-current investments 2,781 2,546 Long Term loans and advances /Other non-current assets 1,439 1,442 Current Assets Current Investments/ Cash and Cash Equivalents Short term loans and advances /inventories/ trade receivables/other currents assets IHCL Standalone Financials Balance Sheet Assets 7,562 7,198 41

42 Consolidated Financial Performance for the Year Ended March 31,

43 IHCL Consolidated Key Indicators 5,000 4,287 Turnover `/crores 4, EBITDA `/crores 732 4,000 3, % % 400 2, ,000 Profit Before Tax (before Exceptional Items) 2014/ / `/crores Profit After Tax `/crores 2014/ / / /16 (61) 150 (100) % (200) 50 (300) 43

44 IHCL Consolidated - Financials Summary Year ended March 31, 2016 `/crores Particulars Full Year 2015/ /15 Total Income 4, , EBITDA EBITDA % 15.6% 13.7% Profit/(Loss) before Finance Cost & Exceptional Item Profit/ (Loss) after Finance Costs but before Exceptional Item Exceptional Item Exchange Gain/( Loss) (63.21) (51.07) Exceptional Item Others (3.95) (301.84) Profit/(Loss) before Tax (232.48) Profit/(Loss) after Tax, Minority Interest & share of profit/(loss) in associates (60.53) (378.10) 44

45 IHCL Consolidated - Profit and Loss Account Year ended March 31, 2016 `/ crores Full Year 2015/ /15 % Change Net Sales/Income from Operations 4, , Other Operating Income Total Income from Operations 4, , Cost of Materials Consumed Employee Benefits Expense License Fees Fuel, Power and Light Depreciation and Amortisation Expense Other Expenditure Total Expenditure Profit/ (Loss) from operations before Other Income, Finance Costs and Exceptional Items Other Income Profit/(Loss) before Finance Costs and Exceptional Items Finance Costs Profit/ (Loss) after Finance Costs but before Exceptional Items Exceptional item (67.16) (352.91) Profit/ (Loss) before tax (232.49) Less: Provision for Taxes (140.07) (114.60) Add: Share of Profit/(Loss) in Associates 2.85 (0.04) Less: Minority Interest in Subsidiaries (25.45) (30.97) Profit/( Loss) after Tax (60.53) (378.10) 45

46 Particulars March 31, 2016 March 31, 2015 Shareholders Funds 3,182 2,227 Minority Interest Non- Current Liabilities Long-term borrowings 3,685 4,598 Other Long Term Liabilities Long-term Provisions/ Deferred Tax Liabilities (net) Current Liabilities 2,303 1,432 Equity and Liabilities 10,945 9,887 Non-current Assets IHCL Consolidated Financials Balance Sheet Fixed Assets (including CWIP) 6,997 6,126 Goodwill on Consolidation (net) 1, Non-current investments 914 1,041 Long Term Loans and Advances/ Other Non Current Assets `/crores Current Assets Cash and Cash Equivalents /Current Investments 395 1,050 Inventories/Trade Receivables/Other Current Assets Assets 10,945 9,887 46

47 Debt Position Treasury Particulars Standalone Consolidated Gross Debt 2,108 4,781 Debenture Redemption Premium (Accrued) Less : Liquidity (158) (395) Net Debt 2,268 4,717 `/crores Net Debt/ Equity Weighted cost of Debt 8.8% 7.3% Of the aggregate Sea Rock debt of Rs 1,400 crores, an amount of Rs 650 crores has been repaid Balance debt of Rs 750 crores has been refinanced at a lower cost 47

48 IND-AS Effective April 1, 2016 Effective April 1, 2016, IHCL will migrate to the new Accounting Standards IND-AS. Transition to IND-AS will result in change in presentation of accounts, inter alia, in the following areas Revenue recognition Fair Value concept Time Value of Money ( economic interest concept for Borrowings) Equity accounting for JVs Substance Over form ( for determining component entities for consolidation) The company s financial results for Q1-2016/17 will be published under IND-AS along with a comparatives of the previous quarter 48

49 Restructuring of Overseas Investments 49

50 Restructuring of Overseas Investments IHOCO BV, the 100 % offshore subsidiary company has since become IHCL s apex offshore Investment holding company. Holdings in the, USA, UK, Sri Lanka, Maldives hotels and the two London restaurants have since been shifted to IHOCO BV Thus, 8 owned hotels (1584 rooms) & 2 UK restaurants are now being held through IHOCO BV This restructuring allows the company : (i) Efficiency in up streaming of funds (ii) Visibility of International holdings to stakeholders (iii) Fund raising options ( if required in future) 50

51 Scheme(s) of Arrangement - Update 51

52 Amalgamation Update The Board of Directors at its meeting held on October 19, 2015 have approved the amalgamation of International Hotel Management Services LLC (formerly known as IHMS Inc.) and Lands End Properties Private Limited, two wholly owned subsidiaries ( transferor companies ) into the Company, by way of two separate Schemes of Arrangements between the Company The Amalgamation process will be completed after receipt of the requisite orders of the Bombay High Court sanctioning the Schemes and filing of the orders with the Registrar of Companies, Mumbai. 52

53 Amalgamation Impact The Impact on IHCL s reserves on account of the two proposed amalgamation is summarised below `/crores Particulars Standalone Books Consolidated Books Reserve & Surplus as on March 31, ,822 3,119 LEEPL- Scheme of Arrangement (307) (293) IHMS- Scheme of Arrangement (1,338) - Reserve & Surplus as on March 31, 2016 post Impact of Scheme of Arrangement 2,177 2,826 There will be also an additional impact of inter change in Reserve & Surplus. Debit Balance of ` 359 crores Profit & Loss Account will be adjusted with the Securities Premium account. 53

54 Amalgamation - Timelines Particulars Dates Milestones achieved Filing of IHMS LLC & LEPPL Scheme with SEBI October 21, 2015 Receipt of SEBI Approval December 19, 2015 High Court order for Shareholders / Creditors Meeting February 26,2016 Shareholders approval vide Postal Ballot ( for LEPPL scheme) April 28, 2016 Court Convened Meeting/ EGM Shareholders approval May 4, 2016 Way Forward High Court final order for the schemes to be effective July, 2016 (Indicative) Shareholders approval have been secured for the two schemes. Post amalgamation, impact on Balance Sheet will be reported for status as on March 31, 2016 or alternatively as on April 1,

55 Divestment 55

56 Divestments during 2015/16 Divestments during the year :- Tata Projects Ltd - Rs 56 crores Belmond shares Of our holding of 7.13 million shares, 2 million shares were sold during previous year - $ 12 million ( Rs 80 crores) The Sale Proceeds from above have been utilised to reduce the Debt. 56

57 Divestments New Proposal The Board of Directors has accorded its approval to allow United Overseas Holding Inc (UOH)., a wholly owned subsidiary of the Company, to pursue the option of divestment of Taj Boston by way of sale/ disposal of the LLC interests in IHMS (Boston) LLC (a direct subsidiary of UOH), at a consideration not lower than US$ 125 million, This will be subject to Shareholders and other approvals, as would be necessary 57

58 Key Focus Areas Asset Light and Asset Right Strategy Select Brownfield development Exit from Non Core / Non performing Investments Invest behind hotel renovations / Asset Refresh Ensure efficient debt funding mix / cost Focus on technology upgrade / digital Ongoing cost rationalization 58

59 Awards & Accolades 59

60 Awards & Accolades Taj Hotels Resorts and Palaces Featured on the list of 10 of the World's Best Luxury Hotel Brands by Forbes magazine Named the Best Hotel Group in India at the Travel + Leisure India & South Asia's Best Awards Rated Best Business Hotel Chain in India by Business Traveller UK TripAdvisor Travellers Choice Awards 2016 Umaid Bhawan Palace, Jodhpur Best Hotel in the World, Asia and India Taj Lake Palace, Udaipur Rambagh Palace, Jaipur The Taj Mahal Palace, Mumbai Taj Exotica, Goa Taj Exotica Resort and Spa, Maldives Taj 51 Buckingham Gate Suites and Residences, London Taj Cape Town Vivanta by Taj Bentota, Sri Lanka Condé Nast Traveler US Gold List 2016 Taj Falaknuma Palace, Hyderabad Taj Lake Palace, Udaipur The Taj Mahal Palace, Mumbai Umaid Bhawan Palace, Jodhpur Taj Tashi, Bhutan Conde Nast Traveller UK Readers Travel Awards The Taj Mahal Palace, Mumbai was the only Indian hotel in the top three in the Best Overseas Business Hotel category Taj Lake Palace, Udaipur, Rambagh Palace, Jaipur and Taj Falaknuma Palace, Hyderabad ranked 6th, 9th and 15th respectively on the list of World's Best Hotels in Asia & the Indian Subcontinent Town & Country Travel Best Hotels in the World list Mahua Kothi, Bandhavgarh Banjaar Tola, Kanha Umaid Bhawan Palace, Jodhpur TripAdvisor Taj Falaknuma Palace recognized as number one in the Best Palace Hotels in the World 2015 category 60

61 Stock Price Movement 35,000 IHCL v/s BSE Sensex , , , , , , /Apr/15 1/May/15 1/Jun/15 1/Jul/15 1/Aug/15 1/Sep/15 1/Oct/15 1/Nov/15 1/Dec/15 1/Jan/16 1/Feb/16 1/Mar/16 1/Apr/16 1/May/16 0 Sensex IHCL 61

62 Thank you 62