The Indian Hotels Company Limited Corporate Presentation 1 May - - PowerPoint PPT Presentation

1

The Indian Hotels Company Limited

May ,2016

Corporate Presentation

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

3

Taj Group portfolio touches 136 Hotels; Room inventory Of 16759

Key Highlights

Currently in process of amalgamating two WOS with IHCL World GDP growth projected at 3.2% for 2016

Domestic Tourists & F&B to drive growth

Taj Group crowned the Best Hotel Group in India at the T+L India's Best Awards To Pursue Divestment

• f Taj Boston, whilst

Retaining management contract Growth rate in Domestic rooms Demand Outpaces supply growth

Taj Group featured

• n the list of

10 of the World’s Best Luxury Hotel Brands by Forbes

Focus on growth by management contracts to ensure minimal capital requirement India’s GDP projected to grow by 7.5 % in 2016/17 Occupancies show improvement However, ARRs remain flat 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

Monsoon, Inflation, Oil Prices, Reforms key areas to look out for in India’s growth Foreign Tourists arrivals growth at 10 % for Jan to April 2016 (E visa Scheme) 2015 GDP growth

• f India higher

than China 7.3% vs 6.9%

4

• Industry Highlights
• Taj Group – An Overview
• New Inventory
• Land Bank
• Financial Performance
• Awards & Accolades

Presentation Structure

5

Industry Highlights

6

• International travel and tourism arrivals grew by 4.4% to reach a total of 1,184 million in 2015,

50 million more than in 2014.

• 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.

• 2015 /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.

Industry Highlights - Outlook

Source : WTTC, UNWTO, Ministry of tourism India, STR Global

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 82.42 lakh, a growth of 6.2%

Source : Ministry of tourism India

8

Source:- INDIA TOURISM STATISTICS 2015

India : Source Markets

In Lakhs Country of Nationality No of Arrivals Percentage Share 2013 2014 2015 2013 2014 2015 America North America 13.4 13.9 14.9 19.2% 18.1% 18.6% Central and South America 0.7 0.7 0.7 1.0% 0.9% 0.9% 14.1 14.6 15.7 20.2% 19.0% 19.5% Europe Western Europe 18.6 18.6 18.8 26.6% 24.2% 23.4% Eastern Europe 4.1 4.2 3.3 5.8% 5.5% 4.1% 22.6 22.8 22.1 32.4% 29.7% 27.5% Asia West Asia 3.4 4.1 4.2 4.9% 5.4% 5.2% South Asia 12.2 16.9 19.5 17.4% 22.1% 24.2% South East Asia 6.3 6.9 7.0 9.0% 8.9% 8.7% East Asia 5.5 5.5 5.6 7.9% 7.1% 6.9% 27.4 33.4 36.2 39.3% 43.5% 45.1% Africa 2.8 2.8 2.9 4.0% 3.7% 3.7% Australia & New Zealand 2.6 2.9 3.1 3.8% 3.7% 3.9% Others 0.2 0.3 0.2 0.3% 0.4% 0.3% 69.7 76.8 80.3 100.0% 100.0% 100.0%

9

Domestic Visits – Growing over the Years

Source: INDIA TOURISM STATISTICS 2014

Domestic travel visits continue to show robust growth and grew 12.9 % in 2014

Figures in crores

10

India Hotel Performance – Key cities 2015 / 16

• There has been an overall 3.9% increase in Supply in 2015 /16 as compared to the same

period last year.

• Demand growth has been 10.5% for this period However, the supply / demand gap is still

significant in most cities, impacting ARRs

Source : STR Global

11

Occupancies % – Year on Year Trend

• All Cities have witnessed improved occupancy levels over the previous year

Source : STR Global

12

ARRs– Year on Year Trend

• Despite growth in domestic demand , ARRs have continued to be flat , across India

Source : STR Global

13

Taj Group – An Overview

14

Business Structure

Owned hotels Managed hotels Associate companies Subsidiary companies Joint ventures IHCL

By business portfolio By legal entity

Leased/ Licensed hotels

15

Taj Group Major Companies

Company Name Effective Holding % Company Name Effective Holding %

Subsidiaries

Joint Ventures

Piem Hotels Ltd 51.57 Taj GVK Hotels & Resorts Ltd 25.52 Taj SATS Air Catering Ltd 51.00 Taj Madras Flight Kitchen Pvt Ltd 50.00 TIFCO Holdings Ltd [Investment Company] 100.00 Taj Kerala Hotels & Resorts Ltd 28.30 Benares Hotels Ltd 51.68 Taj Karnataka Hotels & Resorts Ltd 44.27 United Hotels Ltd 55.00 Taj Safaris Ltd 28.96 Roots Corporation Ltd 63.25 Kaveri Retreat & Resorts Ltd 50.00 Lands End Properties Pvt Ltd 100.00 IHMS (SA) Pty Ltd 50.00 Skydeck Properties Pvt Ltd 100.00 TAL Hotels & Resorts Ltd 27.49 United Overseas Holdings, Inc. 100.00 St James Court Hotel Ltd 72.25 Associates IHOCO BV [Investment Company] 100.00 Oriental Hotels Ltd 35.67 Samsara Properties Ltd [Investment Company] 100.00 Lanka Island Resorts Ltd 24.66 TAL Lanka Hotel PLC 24.62

16

Taj Brand Extensions

17

Taj Group Inventory Brand Distribution

Brands Domestic International Total No of Hotels Inventory No of Hotels Inventory No of Hotels Inventory 20 3,415 10 1849 30 5,264 35 4,946 5 575 40 5,521 31 2,596 1 208 32 2,804 34 3,170

• 34

3,170 Total 120 14,127 16 2,632 136 16,759

18

# Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms HOLDING COMPANY SUBSIDIARY COMPANIES SUBSIDIARY COMPANIES (Continued) The Indian Hotels Company Limited Piem Hotels Limited Roots Corporation Limited 4406 (Taj Group – 51.57%, Nagpals – 39.47%) 922 (Taj Group – 66.9%, Tata Fund– 27.6%) 2655 1 Taj Mahal Palace, Mumbai 550 26 Vivanta by Taj - President, Mumbai 287 41 Ginger Hotel - Agartala 100 2 Taj Lands End, Mumbai 493 27 Vivanta by Taj - Blue Diamond, Pune 110 42 Ginger Hotel - Ahmedabad 93 3 Taj Wellington Mews, Mumbai 78 28 Vivanta by Taj - Gomti Nagar, Lucknow 110 43 Ginger Hotel - Bangalore (Whitefield) 101 4 Taj Mahal Hotel, New Delhi 292 29 Vivanta by Taj - M G Road, Bangalore 167 44 Ginger Hotel - Bangalore (Inner Ring Road) 88 5 Taj Palace, New Delhi 403 30 The Gateway Hotel - Ambad, Nashik 148 45 Ginger Hotel – Bhubaneshwar 101 6 Taj Bengal, Kolkata 229 31 The Gateway Hotel- Fatehabad Road ,Agra 100 46 Ginger Hotel - Chennai (Vadapalani) 79 7 Taj West End, Bangalore 117 47 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 135 10 Taj Exotica, Goa 140 32 Vivanta by Taj - Ambassador, New Delhi 88 50 Ginger Hotel – Guwahati 70 11 Vivanta by Taj - Aurangabad, Maharashtra 63 51 Ginger Hotel – Indore 95 12 Vivanta by Taj - Connemara, Chennai 150 Benares Hotels Limited 52 Ginger Hotel – Jaipur 103 13 Vivanta by Taj - Dwarka, New Delhi 250 (Taj Group – 53.7%, Royal Family – 8.8%) 174 53 Ginger Hotel – Jamshedpur 94 14 Vivanta by Taj - Fort Aguada, Goa 145 33 Nadesar Palace – Varanasi 10 54 Ginger Hotel – Mangalore 79 15 Vivanta by Taj - Holiday Village, Goa 142 34 The Gateway Hotel - Ganges, Varanasi 130 55 Ginger Hotel - Mumbai (Andheri East) 116 16 Vivanta by Taj - Hari Mahal, Jodhpur 93 35 The Gateway Hotel - Balaghat Road, Gondia 34 56 Ginger Hotel – Mysore 98 17 Vivanta by Taj - Whitefield, Bangalore 199 57 Ginger Hotel – Nashik 92 18 Vivanta by Taj - Yeshwantpur, Bangalore 327 International Hotel Mgmt Services Inc (Taj Group - 100%) 572 58 Ginger Hotel - Delhi (Rail Yatri Niwas) 109 19 Jai Mahal Palace, Jaipur 100 36 The Pierre, New York 189 59 Ginger Hotel - East Delhi 82 20 Usha Kiran Palace, Gwalior 40 37 Taj Boston, Boston 273 60 Ginger Hotel – Noida 83 21 Vivanta by Taj - Guwahati 150 38 Taj Campton Place, San Francisco 110 61 Ginger Hotel – Pantnagar 98 22 The Gateway Hotel - Residency Road, Bangalore 98 62 Ginger Hotel – Pondicherry 94 23 The Gateway Hotel - Beach Road, Calicut 74 St James Court Hotels Limited 63 Ginger Hotel - Pune (Wakad) 128 24 Hotel Chandela, Khajuraho 90 (Taj Group – 100 % ) 423 64 Ginger Hotel - Pune (Pimpri) 97 25 Hotel Savoy, Ooty 40 39

• St. James Court, A Taj Hotel, London

338 65 Ginger Hotel – Surat 98 40 Taj 51 Buckingham Gate Suites, London 85 66 Ginger Hotel – Thane 46 67 Ginger Hotel – Trivandrum 101 68 Ginger Hotel – Vadodara 99

Current Portfolio

19

Current Portfolio

# Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms # Company/ Hotel/ Unit Rooms MANAGED PROPERTIES – ROOTS CORP 525 MANAGEMENT AGREEMENTS 3607 69 Ginger Hotel - Chandigarh 102 Taj GVK Hotels & Resorts Limited 70 Ginger Hotel - Gurgaon (Manesar) 61 (Taj Group- 25.52%, GVK Group - 49.57%) 1083 105 Taj Santacruz 279 71 Ginger Hotel - Katra, Jammu 80 87 Taj Krishna, Hyderabad 260 106 Umaid Bhawan Palace, Jodhpur 64 72 Ginger Hotel – Tirupur 91 88 Vivanta by Taj - Begumpet , Hyderabad 181 107 Rambagh Palace, Jaipur 78 73 Ginger Hotel – Vizag 72 89 Taj Banjara – Hyderabad 122 108 Imperial Club by Taj, Mumbai 9 74 Ginger Hotel – Tirupati 119 90 Taj Deccan, Hyderabad 151 109 Taj Dubai 296 91 Taj Club House, Chennai 220 110 Taj Bangalore 154 ASSOCIATE COMPANIES 92 Taj Chandigarh, Chandigarh 149 111 Vivanta by Taj – Bekal, Kerala 66 112 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%) 166 114 Vivanta by Taj – Kovalam, Kerala 59 75 Taj Coromandel, Chennai 212 93 Vivanta by Taj - Kumarakom, Kerala 28 115 Vivanta by Taj – Panaji, Goa 170 76 Vivanta by Taj - Fisherman's Cove, Chennai 152 94 The Gateway Hotel - Marine Drive, Ernakulam 108 116 Vivanta by Taj – Sawai Madhopur 36 77 Vivanta by Taj - Malabar, Cochin 95 95 The Gateway Hotel-Janardhanapuram, Varkala 30 117 Vivanta by Taj – Surajkund 286 78 Vivanta by Taj - Surya, Coimbatore 178 118 Taj Pamodzi – Zambia 193 79 Vivanta by Taj - Trivandrum, Kerala 137 Kaveri Retreats & Resorts Limited 119 Taj Tashi, Thimpu, Bhutan 66 80 The Gateway Hotel - Beach Road, Visakhapatnam 95 (Taj Group - 50%, Pramod Ranjan Group - 50%) 120 Vivanta by Taj - Reebak Island, Langkawi 94 81 The Gateway Hotel - Church Road, Coonoor 32 96 Vivanta by Taj - Madikeri, Coorg 63 121 The Gateway Hotel – Akota Gardens, Vadodara 86 82 The Gateway Hotel - Old Port Road, Mangalore 96 122 The Gateway Hotel – Athwalines, Surat 206 83 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%) 54 124 The Gateway Hotel – EM Bypass, Kolkata 79 TAL Lanka Hotels PLC ( TAL - 58.14%, IHCL – 24.62%) 97 Mahua Kothi - Bandhavgarh 12 125 The Gateway Hotel – Gir Forest ,Junagadh 28 84 Taj Samudra, Colombo 300 98 Banjaar Tola – Kanha 18 126 The Gateway Hotel – GE Road, Raipur 109 99 Pashan Garh – Panna 12 127 The Gateway Hotel – IT Expressway, Chennai 200 Lanka Island Resorts Limited 100 Baghvan – Pench 12 128 The Gateway Hotel – Lakeside Hubli 92 (Hirdaramanis–50%, Taj Group – 50 %) 129 The Gateway Hotel – Pune 150 85 Vivanta by Taj - Bentota, Sri Lanka 160 MANAGED PROPERTIES – Taj Safaris Limited 130 The Gateway Hotel – MG Road ,Vijayawada 108 101 Meghauli Serai - Chitwan National Park 30 131 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 166 86 The Gateway Hotel- KM Road, Chikmagalur 29 TAL Maldives Resorts Private Limited (Taj Group -50% Choudhury – 50%) 126 103 Taj Exotica, Maldives 64 104 Vivanta by Taj - Coral Reef, Maldives 62

20

Midscale Brand

Competitive Set

21

Overview of Taj Group

For the Year ended March 31, 2016

Total Revenue denotes the arithmetical aggregate of the turnover of all hotels/units irrespective of ownership, including Management Contracts

Particulars 2015/16 2014/15 2013/14 2012/13 Number of Hotels 136 130 125 118 Rooms Inventory 16,459 15,658 15,391 14,331 Total Revenue (`/crores) 6,717 6,015 5,677 5,102

22

New Inventory

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 1423

24

New Launches in 2015 / 16

Taj Santacruz

25

New Launches in 2015 / 16

Taj Bangalore

26

New Launches in 2015 / 16

Taj Santacruz Taj Bangalore VBT Guwahati Vivanta by Taj, Guwahati

27

New Launches in 2015 / 16

Taj Safaris-Meghauli Serai, Nepal

28

New Launches in 2015 / 16

The Gateway Hotel, Hinjewadi, Pune

29

New Launches in 2015 / 16

Taj Safaris-Meghauli Serai Gateway Hotel, Hinjewadi The Gateway Resort, Ajmer

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 90 10 Hotels 926

31

Land Bank

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.

33

Financial Performance Year ended March 31, 2016

34

IHCL Standalone Key Indicators

2,104 2,382

1,500 2,000 2,500

2014/15 2015/16

Turnover

231 322

100 200 300

Profit Before Tax

(before Exceptional Items) 438 537

• 200

400 600

2014/15 2015/16

EBITDA

201

100 200 300

2014/15 2015/16

Profit After Tax

13 % 23 % 39 %

`/crores `/crores `/crores `/crores

35

Profit and Loss Account Year ended March 31, 2016

`/ crores

Quarter IV Full Year 2015/16 2014/15 % Change 2015/16 2014/15 % Change Net Sales/Income from Operations 686.82 610.77 12 2273.70 2024.38 12 Other Operating Income

• Total Income from Operations

686.82 610.77 12 2273.70 2024.38 12 Cost of Materials Consumed 57.60 49.63 16 209.82 181.88 15 Employee Benefits Expense 163.15 138.86 17 615.98 531.37 16 License Fees 43.97 39.04 13 146.87 128.39 14 Fuel, Power and Light 40.48 39.33 3 179.98 174.27 3 Depreciation and Amortisation Expense 36.29 29.19 24 127.08 117.85 8 Other Expenditure 199.09 190.07 5 692.50 649.80 7 Total Expenditure 540.58 486.12 11 1972.23 1783.56 11 Profit/ (Loss) from operations before Other Income, Finance Costs and Exceptional Items 146.24 124.65 17 301.47 240.82 25 Other Income 28.99 21.25 36 108.62 79.22 37 Profit/ (Loss) before Finance Costs and Exceptional Items 175.23 145.90 20 410.09 320.04 28 Finance Costs 22.21 19.77 12 88.20 89.46 (1) Profit/ (Loss) after Finance Costs but before Exceptional Items 153.02 126.13 21 321.89 230.58 40 Exceptional items (17.18) (196.54) (10.21) (228.70) Profit/ (Loss) before tax 135.84 (70.41) 311.68 1.88 Provision for Taxes 47.70 48.74 110.64 83.90 Profit/ (Loss) After Tax 88.14 (119.15) 201.04 (82.02)

36

Financials Summary

Year ended March 31, 2016

Particulars Quarter IV Full Year

2015/16 2014/15 2015/16 2014/15 Total Income 715.81 632.02 2382.32 2103.60 EBITDA 211.52 175.09 537.17 437.89 EBITDA % 30% 28% 23% 21% Profit/(Loss) before Finance Cost & Exceptional Item 175.23 145.90 410.09 320.04 Profit/(Loss) after Finance Costs but before Exceptional Item 153.02 126.13 321.89 230.58 Exceptional Item – Exchange Gain/( Loss) (16.83) 7.41 (56.56) (24.75) Exceptional Item – Others (0.35) (203.95) 46.35 (203.95) Profit /(Loss) before Tax 135.84 (70.41) 311.68 1.88 Tax Expense (47.70) (48.74) (110.64) (83.90) Profit / (Loss) after Tax 88.14 (119.15) 201.04 (82.02)

`/crores

37

Income Details

Rs / Crores

2015/16 2014/15 % Change

Room Income

1002.33 908.34 10

Food &Beverages and Banquet Income

918.20 813.42 13

Management & Operating fees

148.95 137.74 8

Other Operating Income

204.22 164.88 24

Income from Operations

2273.70 2024.38 12

Non Operating Income

108.62 79.22 37

Total Income

2382.32 2103.60 13

• 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.

38

Exceptional Items

Particulars 2015/16 2014/15 Profit on Sale of Investments 56.53

• 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) Rs/ Crores

• The company divested its holding in Tata Projects Ltd during the year and earned a gain
• n sale of such investment of Rs 56.53 crores
• Exchange Loss mainly comprise of notional restatement of company’s USD long term

loans on account of exchange rate movement

39

Expenditure

• Raw Materials Cost – Rs 209.82 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 615.98 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

• f new hotels at Dwarka & Guwahati as also due to actuary driven non cash charge taken for

retirement benefits

• License Fees – Rs 146.87 crores

Increase linked to higher Turnover

• Fuel, Power & Light – Rs 179.98 crores

Same levels as PY notwithstanding increase in turnover of the company during the current year and addition of new inventory

40

Expenditure

• Other Expenditure - Rs 692.5 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 127.08 crores

Higher due to opening of new hotel at Dwarka

• Finance Costs – Rs 88.20 crores

Lower levels due to deleveraging measures of the Company resulting in reduced debt

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 485 585 Long-term Provisions/ Deferred Tax Liabilities (net) 352 218 Current Liabilities Short Term borrowings 7 1 Other Current Liabilities 942 638 Trade Payables/Short-term provisions 332 242 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 158 788 Short term loans and advances /inventories/ trade receivables/Other currents assets 972 268 Assets 7,562 7,198

IHCL Standalone Financials Balance Sheet

42

Consolidated Financial Performance for the Year Ended March 31, 2016

43

IHCL Consolidated Key Indicators

10 % 41 % 25 %

`/crores `/crores `/crores `/crores

4,287 4,706

1,000 2,000 3,000 4,000 5,000 2014/15 2015/16

Turnover

587 732

• 200

400 600 800 2014/15 2015/16

EBITDA

120 169

50 100 150 200

Profit Before Tax (before Exceptional Items)

(61)

(300) (200) (100) 2014/15 2015/16

Profit After Tax

44

IHCL Consolidated - Financials Summary

Year ended March 31, 2016 Particulars Full Year

2015/16 2014/15 Total Income

4,706.27 4,287.36

EBITDA

731.93 587.28

EBITDA % 15.6% 13.7% Profit/(Loss) before Finance Cost & Exceptional Item

415.26 296.00

Profit/ (Loss) after Finance Costs but before Exceptional Item

169.30 120.43

Exceptional Item – Exchange Gain/( Loss)

(63.21) (51.07)

Exceptional Item – Others

(3.95) (301.84)

Profit/(Loss) before Tax

102.14 (232.48)

Profit/(Loss) after Tax, Minority Interest & share of profit/(loss) in associates

(60.53) (378.10)

`/crores

45

IHCL Consolidated - Profit and Loss Account

Year ended March 31, 2016

`/ crores

Full Year 2015/16 2014/15 % Change Net Sales/Income from Operations 4,590.92 4,188.64 10 Other Operating Income

• Total Income from Operations

4,590.92 4,188.64 10 Cost of Materials Consumed 504.48 443.09 14 Employee Benefits Expense 1609.71 1462.46 10 License Fees 232.99 209.61 11 Fuel, Power and Light 322.90 320.43 1 Depreciation and Amortisation Expense 316.67 291.29 9 Other Expenditure 1304.26 1264.49 3 Total Expenditure 4291.01 3991.37 8 Profit/ (Loss) from operations before Other Income, Finance Costs and Exceptional Items 299.91 197.27 52 Other Income 115.35 98.71 17 Profit/(Loss) before Finance Costs and Exceptional Items 415.26 296.00 40 Finance Costs 245.96 175.57 40 Profit/ (Loss) after Finance Costs but before Exceptional Items 169.30 120.43 41 Exceptional item (67.16) (352.91) Profit/ (Loss) before tax 102.14 (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)

46 Particulars March 31, 2016 March 31, 2015 Shareholders’ Funds 3,182 2,227 Minority Interest 835 738 Non- Current Liabilities Long-term borrowings 3,685 4,598 Other Long Term Liabilities 489 586 Long-term Provisions/ Deferred Tax Liabilities (net) 451 306 Current Liabilities 2,303 1,432 Equity and Liabilities 10,945 9,887 Non-current Assets Fixed Assets (including CWIP) 6,997 6,126 Goodwill on Consolidation (net) 1,346 478 Non-current investments 914 1,041 Long Term Loans and Advances/ Other Non Current Assets 566 518 Current Assets Cash and Cash Equivalents /Current Investments 395 1,050 Inventories/Trade Receivables/Other Current Assets 727 673 Assets 10,945 9,887

IHCL Consolidated Financials Balance Sheet

`/crores

47

Treasury

Debt Position

Particulars Standalone Consolidated Gross Debt

2,108 4,781

Debenture Redemption Premium (Accrued)

318 331

Less : Liquidity

(158) (395)

Net Debt

2,268 4,717

Net Debt/ Equity

0.58 1.47

Weighted cost of Debt 8.8% 7.3%

`/crores

• 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

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

49

Restructuring of Overseas Investments

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)

51

Scheme(s) of Arrangement - Update

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.

53

Amalgamation – Impact

• 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 .

• The Impact on IHCL’s reserves on account of the two proposed amalgamation is summarised

below Particulars Standalone Books Consolidated Books Reserve & Surplus as on March 31, 2016 3,822 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

`/crores

54

Amalgamation - Timelines

54

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
• n March 31 , 2016 or alternatively as on April 1 , 2016

55

Divestment

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.

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

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

59

Awards & Accolades

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

61

Stock Price Movement

20 40 60 80 100 120 140 5,000 10,000 15,000 20,000 25,000 30,000 35,000 1/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

IHCL v/s BSE Sensex

Sensex IHCL

62

Thank you