Indian Hotels Company Ltd (IHCL)

The Indian Hotels Company Limited is a holding company. The Company is engaged in short-term accommodation activities, and restaurants and mobile food service activities.

1. Indian Hotels Company Ltd A TATA Enterprise

2. Introduction Presence in the World Leadership Team Business Performance Balance Sheet Statement of Profit & Loss Statement of Cash Flows Ratio Analysis IHCL Market capitalization Dividend Distribution Share Prices in last One Year Awards won by IHCL CSR Policy of IHCL List of Subsidiary companies Auditor’s Report Future Goals of the Company Index

3. The Indian Hotels Company Limited is a holding company. The Company is engaged in short-term accommodation activities, and restaurants and mobile food service activities. The Company is primarily engaged in the business of owning, operating and managing hotels, palaces and resorts. The Company's segments include Hoteliering and Others, which consists of air catering and investing activities. Its area of business includes Taj, Taj Safaris, Vivanta by Taj, The Gateway Hotel, Ginger, and Taj Trade and Transport. Its other areas of business include Taj Air. Listed on National Stock Exchange (NSE) with ticker symbol as “ INDHOTEL” . The Indian Hotels Company Limited was founded in 1899 and is based in Mumbai, India. Introduction

4. Presence

5. Leadership Team

6. Business Performance during FY 2017-18

7. 3.2 billion liters of water saved through water recycling and rainwater harvesting 58,580 tonnes of CO2 emissions avoided by switching to renewable energy 5,329 tonnes of waste diverted from landfills through composting 79 hotels certified under the EarthCheck certification partnership ₹5.27 crores spent on Corporate Social Responsibility (CSR ) Business Performance - Non-Financial

8. Balance Sheet as of March 31, 2018

9. Balance Sheet ( Continued)

10. Statement of Profit & Loss for the year ended March 31, 2018 Mar-18 Mar-17 INCOME Revenue From Operations 3,912.68 3,845.62 Other Operating Revenues 190.87 174.95 Total Operating Revenues 4,103.55 4,020.57 Other Income 61.73 54.94 Total Revenue 4,165.28 4,075.51 EXPENSES Operating And Direct Expenses 1,239.04 1,229.61 Employee Benefit Expenses 1,346.62 1,364.65 Finance Costs 269.04 323.83 Depreciation And Amortisation Expenses 301.2 299.37 Other Expenses 847.54 816.69 Total Expenses 4,003.44 4,034.15 Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax 161.84 41.36 Exceptional Items 22.45 -10.78 Profit/Loss Before Tax 184.29 30.58 Tax Expenses-Continued Operations Current Tax 138.37 125.76 Less: MAT Credit Entitlement Deferred Tax -17.31 -12.02 Tax For Earlier Years Total Tax Expenses 121.06 113.74 Profit/Loss After Tax And Before ExtraOrdinary Items 63.23 -83.16 Profit/Loss From Continuing Operations 63.23 -83.16 Profit/Loss For The Period 63.23 -83.16 Minority Interest -2.65 -17.6 Share Of Profit/Loss Of Associates 40.29 37.56 Consolidated Profit/Loss After MI And Associates 100.87 -63.2

11. Statement of Cash Flows for the year ended March 31, 2018

12. Statement of Cash Flows ( Continued)

13. Ratio Analysis Mar-18 Mar-17 Mar-16 Mar-15 Mar-14 Per Share Ratios           Basic EPS (Rs.) 0.91 -0.6 -2.34 -4.68 -6.86 Diluted EPS (Rs.) 0.91 -0.6 -2.34 -4.68 -6.86 Cash EPS (Rs.) 3.06 2.19 1.04 -0.69 -2.66 Book Value[ExclRevalReserve]/Share (Rs.) 41.69 32.91 33.59 36.09 41.07 Book Value[InclRevalReserve]/Share (Rs.) 41.69 32.91 33.59 36.72 41.76 Revenue from Operations/Share (Rs.) 34.5 40.64 40.67 51.87 50.36 PBDIT/Share (Rs.) 6.16 6.72 6.59 7.27 7.67 PBIT/Share (Rs.) 3.62 3.69 3.71 3.67 3.85 PBT/Share (Rs.) 1.55 0.31 -0.92 -2.88 -5.1 Net Profit/Share (Rs.) 0.53 -0.84 -1.84 -4.3 -6.48 NP After MI And SOA / Share (Rs.) 0.85 -0.64 -2.34 -4.68 -6.86 Profitability Ratios PBDIT Margin (%) 17.84 16.52 16.2 14.02 15.23 PBIT Margin (%) 10.5 9.08 9.12 7.06 7.65 PBT Margin (%) 4.49 0.76 -2.26 -5.55 -10.13 Net Profit Margin (%) 1.54 -2.06 -4.51 -8.28 -12.86 NP After MI And SOA Margin (%) 2.45 -1.57 -5.74 -9.02 -13.62 Return on Networth/Equity (%) 2.41 -2.51 -8.95 -17.36 -21.46 Return on Capital Employed (%) 1.26 -0.93 -3.12 -4.47 -7.64 Return on Assets (%) 1.07 -0.73 -2.35 -3.82 -5.81 Total Debt/Equity (X) 0.56 1.12 1.36 2.13 1.26 Asset Turnover Ratio (%) 43.77 46.56 40.98 42.36 42.71

14. Ratio Analysis (continued) Mar-18 Mar-17 Mar-16 Mar-15 Mar-14 Liquidity Ratios Current Ratio (X) 0.88 0.5 0.39 1.2 0.41 Quick Ratio (X) 0.81 0.46 0.36 1.13 0.37 Inventory Turnover Ratio (X) 47.87 49.98 50.14 40.68 39.84 Dividend Payout Ratio (NP) (%) 34.32 Dividend Payout Ratio (CP) (%) 8.61 Earnings Retention Ratio (%) 65.68 Cash Earnings Retention Ratio (%) 91.39 Coverage Ratios Interest Coverage Ratios (%) 1.6 1.13 0.98 1.69 1.85 Interest Coverage Ratios (Post Tax) (%) 1.6 1.13 0.98 1.69 1.85 Valuation Ratios Enterprise Value (Cr.) 17,987.02 15,862.89 13,896.73 14,504.72 9,635.67 EV/Net Operating Revenue (X) 4.38 3.95 3.45 3.46 2.37 EV/EBITDA (X) 24.57 23.87 21.32 24.7 15.56 MarketCap/Net Operating Revenue (X) 3.69 3.12 2.44 2.25 1.44 Retention Ratios (%) 65.67 Price/BV (X) 3.62 4.99 3.81 4.33 2.26 Price/Net Operating Revenue 3.69 3.12 2.44 2.25 1.44 Earnings Yield 0.01 -0.01 -0.02 -0.04 -0.09

15. Year Gross Revenue (₹ Cr.) Dividend (₹ Cr.) Rate of Dividend on Ordinary Shares (%) 2010-11 1737.14 75.95 100 2011-12 1864.72 75.95 100 2012-13 1924.79 69.4 80 2013-14 1977.33 NIL NIL 2014-15 2103.6 NIL NIL 2015-16 2374.12 29.68 30 2016-17 2459.58 34.62 35 2017-18 2639.58 47.57 40 Dividend Distribution from FY 2010-11 IHCL Market capitalization stands at ₹ 15406.84 cr.

16. Share Prices in last One Year (Monthly basis) (in INR) Date Open High Low Close Adj Close Volume 30-09-2017 108.842 118.5 103.4 113.25 112.8946 17653188 31-10-2017 113.4 124.95 109.1 123.6 123.2121 21362730 30-11-2017 124.95 125 116.35 117.8 117.4303 15866578 31-12-2017 117.1 160.95 116.95 138.2 137.7663 50129524 31-01-2018 139.6 144.55 125.1 137.15 136.7195 24779060 28-02-2018 136.8 138.6 125.05 129.4 128.9939 25228860 31-03-2018 131.2 156 130.7 147.95 147.4857 46000288 30-04-2018 147.95 150.3 134 141.95 141.5045 19434768 31-05-2018 141.85 143.95 127.55 132.05 131.6356 17697639 30-06-2018 132.9 134.4 123.9 133 132.5826 18519775 31-07-2018 133 138.4 122.1 137.25 137.25 33793459 31-08-2018 138.25 139.5 126.55 129.15 129.15 4192361 07-09-2018 127.75 129.4 126.55 129.15 129.15 321618

17. Awards

18. CSR Policy of IHCL The Company intends to be a significant contributor to CSR initiatives in India by devising and implementing social improvement projects for the benefit of underprivileged communities, towns and villages. Focus Areas: - Vocational skill development programs Partnerships to preserve & promote indigenous heritage, culture, arts and handicrafts Disaster relief and rehabilitation programs Income-generation and livelihood enhancement programs CSR Committee:- The CSR Committee shall comprise three or more directors of which, at least one will be an independent director. CSR Budget:- Presently 2% of the average net profits of the Company for the preceding three financial years Target Communities & Project Locations :- Target communities shall include rural, less-privileged, school dropout, differently abled, marginalized youth and women; indigenous artisans, disaster victims and other such groups associated with focus areas.

19. List of Subsidiary companies Vivanta by Taj TajAir United Hotels Limited TIFCO Holdings Limited PIEM Hotels Limited Taj Safaris Limited ELEL Hotels and Investments Limited Lands End Properties Private Limited Kaveri Retreat & Resorts Ltd KTC Hotels Limited Taj Trade & Transport Co. Ltd. IHOCO B.V. Gateway Hotels & Getaway Resorts Limited Samsara Properties Limited IHMS Hotels (SA) (Proprietary) Ltd. St. James Court Hotels Ltd. International Hotel Management Services LLC Indi Travels Limited Amalgam Foods & Beverages Ltd. Taj International Hotels (South Africa) (Pty) Ltd Ihms Inc. United Overseas Holding Inc. Indian Resorts Hotels Ltd. Hotel City Inn Taj International Hotels Limited Roots Corporation Limited Apex Hotel Management Services (Australia) Pty. Ltd. Taj International Hotels (H.K.) Ltd. TajSATS Air Catering Limited Asia Pacific Hotels Ltd. Taj Hotels, Resorts and Palaces Ltd .

20. Auditor’s Report Auditor Firm: - BSR & Co. LLP Chartered Accountants Firm Registration Number : 101248W/W-100022 An audit report is a formal document where internal audit formal document where internal audit summarizes its work on an audit and reports its findings and recommendations based on that work. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors on separate financial statements and on the other financial information of the subsidiaries, associates and joint ventures, the aforesaid consolidated financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group, its associates and joint ventures as at March 31, 2018, and their consolidated profit (including other comprehensive income), consolidated statement of changes in equity and consolidated cash flows for the year ended on that date.

21. Future Goals of the Company A refreshed brandscape, logo and brand i mage. New B2B hotels such as TajSATS . improve its EBIDTA margin from 17% now to 25% by 2022. Three ‘ R’s - Restructuring, Reengineering And Reimagining the company's portfolio. Ramp up the room inventory by 50% by 2022 IHCL expects a 3-4% margin improvement from revenue enhancement and another 3-5% from cost efficiency measures. 

22. Thank You