Professional Documents
Culture Documents
Investor Presn 30 Sep
Investor Presn 30 Sep
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The MHRIL story
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One of the Leading Leisure Hospitality Providers
Product Portfolio
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Product Portfolio
Flagship Brand : India’s No. 1 holiday brand
1997 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
2008 1 stop shop for family holiday & travel related services
Powered thru e-commerce website, dedicated call center
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Differentiated Approach
Product Features
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Understanding Vacation Ownership
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Integrated & Mixed Use Business Model
Resort Network
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Delivery Through Integrated Value Chain
Club Mahindra
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Multiple Sales Channels
Branch
Offices 19
Retail
Outlets 61#
Franchisee 129**
Expansions Planned
Gir Tungi Ashtamudi, Coorg
Mahabaleshwar Greenfield Development
Panchgani
Kas Tungi (near Lonavala), Theog (near Shimla)
Hyderabad
Varwade
Landbanks for future
Kadapakkam
Goa (2) Pondicherry Maharashtra Kas, Varwade
Coorg
Munnar
Tamil Nadu Kadapakkam
Yercaud
Thekkady Masinagudi
Andhra Pradesh Near Hyderabad
Ashtamudi Ooty (2)
Kodaikanal Karnataka Coorg
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
# Activities and amenities at certain locations are resort specific and may not be available at all locations throughout the year 13
Unique Revenue Model
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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
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Unique Revenue Model
Value created continuously from a single resort unit..
Interest on EMI Resort – FIT Resort - Members
Annual Subscription Fee Entitlement Fee Admission Fee
Income from
Financing
0 Timeline (years) 25 26
*Inflation not considered
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Strong Financial Performance
Highlights H1
Sustained Growth :
Membership Acquisition
Inventory Creation
Financials
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Half Year Ending Sept 30, 2010
• H1 Highlights
– HY Total income at INR 219.94 Cr
– HY PAT at INR 31.49 Cr
– 8,109 members added
– Cumulative member base as on 30th September 2010: 117,993 (CMH 111,733 and Zest 6,260)
– Launched Terra a Tented campsite with adventure activities giving customers an outdoorsy
experience
– MHRIL became the first vacation ownership company in the world to have received the
prestigious COPC certification.
– Won the prestigious Bird Express TravelWorld Awards for Excellence in Operations
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Growth Rate
(Rs. In Cr.)
5 Year
FY 05 FY 06 FY 07 FY 08 FY 09 FY 10
CAGR
Cumulative Member base (No) 28,491 38,691 53,113 73,533 92,825 109,884 31%
Income from sale of Vacation
101.7 152.7 232.3 352.7 393.2 473.5 36%
Ownership & Other Services
PBDITA 27.3 44.6 79.3 144.0 152.1 199.5 49%
PAT 8.3 20.0 42.5 84.0 79.8 117.1 70%
Share Capital 28.4 28.4 28.4 76.4 77.0 83.3 24%
Reserves 0.0 14.9 47.3 66.6 118.8 355.3 713%
EPS (Diluted) (in Rs) 1.69 4.05 5.50 10.77 10.19 14.18 53%
Dividends 0% 0% 30% 30% 30% 40%
Please note, all figures are based on consolidated financial statement , Div for FY 10 is proposed .
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Membership Acquisition & Inventory Creation:
Sustained Growth
Cumulative VO Membership
117,993
109,884
92,825
73,533
53,113
38,691
28,491
FY05 FY06 FY07 FY08 FY09 FY10 H1 FY11 Inventory (Number of Units)
1,476 1,473
1,177
779
675
606
500
516.4
444.3
375.0
240.6
219.9
156.7
106.1
631.5 635.5
484.1
403.4
218.7
145.7
77.4
200.4 117.8
155.6
140.5 80.5 83.4
78.9
41.7
56.2 31.5
44.5
27.2 20.8
9.2
FY05 FY06 FY07 FY08 FY09 FY10 H1 FY11 FY05 FY06 FY07 FY08 FY09 FY10 H1 FY11
FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 H1 FY 11
EBITDA Margin 26% 28% 33% 37% 35% 39% 26%
PAT Margin 9% 13% 17% 21% 19% 23% 14%
Income from sale of Vacation Ownership 348.6 297.21 283.54 181.11 113.49 73.95
Annual subscription fee 51.7 45.56 32.28 22.77 19.94 12.73
Income from travel services & homestays 2.7 1.21 0.08 0 0 0
Income from resorts
- Room rentals 22.3 17.53 14.12 10.52 6.37 5.06
- Food and beverages 30.8 23.12 16.22 13.52 9.32 7.31
- Others 12.7 7.57 5.34 3.98 3.21 2.31
Total Income from Resorts 65.8 49.08 36.83 28.43 19.29 15.03
Total 468.7 393.06 352.73 232.31 152.72 101.71
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Summary Statement of Assets & Liabilities As at 31st March In Rs. crore
2010 2009 2008 2007 2006 2005
Shareholders' funds:
Share capital 83.3 77.0 76.4 28.4 28.4 28.4 Balance
Sheet
Employee stock options outstanding - - 0.0
Reserves and surplus 356.0 118.8 66.6 47.3 14.9 0.0
Minority Interest - 0.0 0.0 0.0 - -
439.3 195.8 143.0 75.7 43.3 28.4
Deferred income
Advance towards members' facilities 805.0 641.0 482.5 324.2 226.3 164.0
Loan funds:
Secured loans 10.0 24.7 20.1 6.0 26.8 22.0
Unsecured loans - - - - - 1.3
Deferred tax liability (net) 33.3 29.5 23.6 20.2 9.2 -
TOTAL 1,287.7 891.0 669.2 426.0 305.6 215.7
APPLICATION OF FUNDS
Fixed assets
Gross block 489.2 429.3 273.4 225.7 191.7 149.3
Less : Depreciation 82.5 64.1 47.9 38.3 30.7 23.5
Net block 406.7 365.2 225.5 187.4 161.0 125.7
Capital work in progress/advances 86.6 42.8 39.0 9.8 1.4 1.4
Expenditure during construction pending allocation
11.3 8.5 6.0 2.9 0.8 0.3
504.6 416.5 270.5 200.1 163.2 127.5
Investments 227.2 0.0 0.0 5.9 0.0 4.5
Deferred tax asset (net) - - - - - 2.2
Current assets, Loans and advances
Inventories 3.0 5.3 3.5 1.8 0.9 0.6
Sundry debtors 631.5 482.6 403.4 218.7 145.7 78.2
Cash and bank balances 24.4 32.8 7.6 9.4 7.8 3.9
Loans and advances 81.2 66.5 62.0 41.9 26.2 18.8
740.1 587.1 476.5 271.8 180.6 101.6
Less: Current liabilities and provisions
Current liabilities 143.2 82.1 60.9 40.6 38.0 25.1
Provisions 41.0 30.6 17.0 11.2 0.3 0.2
184.2 112.6 77.9 51.8 38.2 25.3
Net current assets 555.9 474.5 398.6 220.0 142.3 76.3
Profit and loss account - - - - - 5.2
TOTAL 1,287.7 891.0 669.1 426.0 305.6 215.7
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The Club Mahindra Advantage
Club Mahindra Hotels
Higher and Stable All Year round Lower occupancy subject to
Occupancy occupancy uncertainty and fluctuations
Cash Flows Strong upfront cash flow model Low on cash flow
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MHRIL Growth Strategy
Strategy Formulation
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Strategy Formulation
Travel & VO Industry:
India Story:
Environment Tourism: Nascent
& Industry Strong + Growth
+ market
Fundamentals
Sector New Segments
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Growth Strategy driven by
An enabling environment & our competitive advantage 27
Growth Strategy
• Intensification: Build on the VO Intensify Integrate Diversify
business Product
– Geographic Expansion
– Age Segments Existing New
• Project GYPSY, Senior Citizens
Zest, Fundays, Fractionals,
– Income Segments Club Mahindra Mass Market VO, Club M
+
• Fractionals, Mass-market VO
India
Geographical/
Channel Expansions, Travel Services
Geographical Market
• Integration: Strengthen the Extensions for Sr. Citizens
& Teens
Value Chain Homestays, Svaastha,
Campsites
– Travel Services
• Diversification: Expand into
Holiday Related Services Global
International Expansions
– Homestays, Svaastha
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Thank You!
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