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

The Indian Hotels Company Limited Corporate Presentation 1 May ,2016

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

Key Highlights Monsoon, 2015 GDP growth India’s GDP Inflation, World GDP growth of India higher projected to Oil Prices, projected at 3.2% Reforms key areas than China grow by 7.5 % in for 2016 to look out for 7.3% vs 6.9% 2016/17 in India’s growth Foreign Tourists Growth rate in Occupancies Domestic Tourists arrivals growth at Domestic show improvement & rooms Demand 10 % for However, ARRs F&B to drive Outpaces supply Jan to April 2016 remain flat growth growth (E visa Scheme) Taj Group crowned Taj Group featured Taj Group Added 1400 rooms the Best Hotel on the list of portfolio in 2015/16. Group in India 10 of the World’s touches 136 Hotels; To add 900 rooms Best Luxury Hotel at the T+L India's Room inventory in current year Brands by Forbes Of 16759 Best Awards Focus on growth Currently in To Pursue Divestment Completed Restructuring of by management process of of Taj Boston, whilst International Overseas contracts to ensure Holdings, now housed amalgamating two Retaining management minimal capital in a offshore WOS WOS with IHCL contract requirement 3

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

Industry Highlights 5

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

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% 7 Source : Ministry of tourism India

India : Source Markets In Lakhs No of Arrivals Percentage Share Country of Nationality 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% 8 69.7 76.8 80.3 100.0% 100.0% 100.0% Source:- INDIA TOURISM STATISTICS 2015

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

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 10 Source : STR Global

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

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

Taj Group – An Overview 13

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

Taj Group Major Companies Company Name Effective Company Name Effective Holding % Holding % Subsidiaries Joint Ventures Piem Hotels Ltd 51.57 Taj GVK Hotels & Resorts Ltd 25.52 Taj Madras Flight Kitchen Pvt Ltd Taj SATS Air Catering Ltd 51.00 50.00 Taj Kerala Hotels & Resorts Ltd 28.30 TIFCO Holdings Ltd [ Investment Company ] 100.00 Taj Karnataka Hotels & Resorts Ltd Benares Hotels Ltd 51.68 44.27 Taj Safaris Ltd United Hotels Ltd 55.00 28.96 Kaveri Retreat & Resorts Ltd Roots Corporation Ltd 63.25 50.00 IHMS (SA) Pty Ltd Lands End Properties Pvt Ltd 100.00 50.00 TAL Hotels & Resorts Ltd Skydeck Properties Pvt Ltd 100.00 27.49 United Overseas Holdings, Inc. 100.00 Associates St James Court Hotel Ltd 72.25 Oriental Hotels Ltd IHOCO BV [ Investment Company ] 100.00 35.67 Lanka Island Resorts Ltd Samsara Properties Ltd [ Investment Company ] 100.00 24.66 TAL Lanka Hotel PLC 24.62 15

Taj Brand Extensions 16

Taj Group Inventory Brand Distribution Brands Domestic International Total No of Inventory No of Inventory No of Inventory Hotels Hotels Hotels 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 17