Mahindra Holidays & Resorts India Ltd.

Changing the Way India Holidays

(updated as at Dec 31, 2010)

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 The MHRIL story

1 Company Overview

2 Differentiated Approach: Customer Centric Design

3 Integrated and Mixed Use Business Model

4 Unique Revenue Model

5 Proven Financial Performance

6 Way Forward

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 Company Overview

Highlights & Milestones

Product Portfolio

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 Highlights & Milestones
• Among the Top 10 Vacation Ownership Companies in the World#
• India‟s No.1 Vacation Ownership Company
– 121,751 Vacation Ownership (VO) members as at Dec 31, 2010
– 72% of the total active VO members in India with RCI*
– 34 resorts, 1,555 apartments & cottages as at Dec 31,2010
• Impressive Growth Rates
– 5 year CAGR for Income at 43%
– 5 year CAGR for PAT at 54%
• “Club Mahindra Holidays”: Superbrand 2009**
• 10 RCI Gold Crown Resorts: Munnar and Goa for 10 consecutive years
• Ranked 150 in Business Today BT Top 500 (2009)
• One of Best performing Global IPO by Wall street Journal (lone Indian IPO)

# Company Sources * Source: Group RCI as on May 31, 2009 **Source: Brand Council in India

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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

 Offers “Short Breaks” 6 days every year for 10 years

2006  Across 5 resorts
 Target Segment young urban families

2006  Corporate Membership

 Offers Reward & Recognition solutions
 Points based platform to aid flexibility for Corporates

2008  1 stop shop for family holiday & travel related services
 Powered thru e-commerce website, dedicated call center

2008  Provides accommodation in private homes

 Has aggregated 205 homes across 14 states
 Launched in the UK, extended into India

 Tented campsite specially designed for families

2010  Outdoor & Adventure activities to bring people closer to
nature

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 Differentiated Approach

Customer Centric Design

Product Features

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 Understanding Vacation Ownership

‘Concept of Vacation Ownership’

• Key features of the conventional model

– Ownership at a fixed resort location for a fixed week
in the year every year in a fixed season and room type

Conventional Proposition: Essentially

discounted accommodation room nights.
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 Customer Centric Design
Conventional Model Club Mahindra Model

• Fixed Week Fixed Resort • Floating Week Floating Resort

• Variable Price Model
• Limited Service Resort
• Distinct Developer, Marketer and Service
Operator
– Gives customer flexibility: Time of holiday,
duration, destination of choice
• Fixed Retail Price
– Greater transparency
• Full Service Resort
– Amenities, Facilities and Services
– Complete Family Holiday Experience
• Vertically Integrated Operations
– Deliver on promised value

• Pure Timeshare Resorts • Mixed Use Resorts

– Maintain Quality

ONE WEEK EVERY YEAR FOR 25 YEARS, RIGHT-TO-USE MEMBERSHIP

IN THE SEASON AND APARTMENT TYPE THE MEMBER CHOOSES
•For conditions of usage please refer to the Membership Application Form
•available at any of our offices, branches and outlets

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 Integrated & Mixed Use Business Model

Integrated Value Chain

Multiple Sales Channels

Resort Network

Family Holiday Experience

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 Delivery Through Integrated Value Chain

Resort Design & Lifestyle product

Development marketing approach

Pan India multi-

Identification & channel sales
acquisition of land initiatives

Club Mahindra

Additional value Holiday planning

opportunities & reservation
services

Full service Active customer

resorts feedback system

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 Multiple Sales Channels
Branch
Offices 19

Retail
Outlets 36#

Franchisee 126**

Reaching Customers through

Innovative Sales & Marketing Channels
Service
Office
3*
• Follow Permission Marketing Approach
• Retails Outlets: Club Mahindra Holidayworlds
at Malls and shopping complexes
• Direct to home: Meet target members at home
Onsite 11
• Onsite: Club Mahindra Holidayworlds at resorts

*Dubai ; **including Dubai & Kuwait; # 29 Direct and 7 Franchise

Pan India multi-channel sales team

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 Pan India presence
Existing Resorts
Operational
Manali
Own 12 (1047 Apartments)
Dharamsala Under Development
Shimla Binsar (2) Long Lease 16 (426 Apartments)
Naukuchiatal Green Fields
Theog
Mussoorie Short Lease 6(82 Apartments)
Corbett Total 34 (1555 Apartments)
Nawalgarh Ramnagar Gangtok
96% Own & Long Lease
Osian Sariska
Ranthambore
Kumbalgarh

Expansions Planned
Gir Tungi Ashtamudi, Coorg
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 Swamimalai
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

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 Holistic Family Holiday Experience
Activities & amenities
giving complete holiday Accreditation for Strategy to enhance
experience# quality resort services holiday experience

• Fun dining Restaurants & • 10 RCI Gold Crown • Designed to suit

Gourmet takeaways resorts
topography of the
• Svaastha Spas/Ayurvedic • 2 Resorts 5 Star
accredited by Dept. of location
Spas
Tourism GOI • Non-conventional
• Kids Club
• MRD processes certified accommodation such as
• Champs ISO:9001-2000
log huts, tents and
• Bars compliant
• PCMM level 3 assessed floating cottages Resort
• Swimming pool
at Goa Resort Design
• Conferences & Outbound
• BHC certified Hygiene • Adding innovative
Trainings systems
activities

© # Activities and amenities at certain locations are resort specific and may not be available at all locations throughout the year 13
 Unique Revenue Model

Multiple Revenue stream

Continuous Value creation from single unit

The Club Mahindra Advantage

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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

Recurring Income: Upfront Cash:

Entitlement Fee Admission Fee

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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

Recurring Revenue Streams*: ASF, Usage Fee, Resort

Revenues
Value Realized

Value Creation Profile

Large Upfront Cash-flow Residual Value *:
Upfront
Opportunity for
Cash: Built in Annuity Stream 2nd cycle - ZERO
Admission
Marginal Cost of
Fee
Residual Value Inventory

0 Timeline (years) 25 26
*Inflation not considered
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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

Revenue Multiple revenue streams. Yearly Limited revenue streams. No

Streams and Annuity based. Annuity streams.

Debt Structure Almost debt free High levels of debt

Cash Flows Strong upfront cash flow model Low on cash flow

Receivables Receivables can be Securitized. No Securitization opportunity

Generally less focus on Holiday

Holiday High Quality – Focus on every
Experience and no focus on
Experience member of the Family.
individuals within the Family.

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 Details of income
All Figs in Rs crores

Year ended March 31st

Details of Income from sale of Vacation Ownership
and other services 2010 2009 2008 2007 2006 2005

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

Year ended March 31st

2010 2009 2008 2007 2006 2005

Details of Other Income
Other Income 47.6 51.25 22.31 8.34 4.01 4.44
Net Profit before tax, restated 176.7 132.04 126.19 66.77 32.83 15.25
Percentage 27% 39% 18% 12% 12% 29%
Interest
On instalment sales 18.7 37.15 19.68 7.32 3.39 2.84
Income from securitization (refer note 5) 22.3 9.96 1.21 0.72 0.45 1.57
Gain on exchange fluctuation 0.0 2.50 - - - -
Miscellaneous income 6.6 0.16 0.55 0.26 0.16 0.03
Total 47.62 51.25 22.31 8.34 4.01 4.44

For FY 05 to FY 09 numbers are from the MHRIL Prospectus

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 Balance
Summary Statement of Assets & Liabilities As at 31st March In Rs. crore
2010 2009 2008 2007 2006 2005
Shareholders' funds:

Sheet
Share capital 83.3 77.0 76.4 28.4 28.4 28.4
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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 Strong Financial Performance

Sustained Growth

Financials

Highlights: 9M FY11 and Q3

Consolidation Measures for the future

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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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 Sustained Growth
Cumulative VO Membership Inventory (Number of Units)
CAGR FY08 – FY10: 31% 121,751 CAGR FY08 – FY10: 24% 1,555
1,476
109,884

92,825 1,177

73,533
779
53,113 675
606
38,691 500
28,491

FY05 FY06 FY07 FY08 FY09 FY10 9M FY11 FY05 FY06 FY07 FY08 FY09 FY10 9M FY11

Total Income (INR Cr) Receivables Available for securitization (INR Cr)
CAGR FY08 – FY10: 37% CAGR FY08 – FY10: 52%
516.4 733.7
444.3 631.5
375.0 364.4
484.1
403.4
240.6

156.7 218.7
106.1 145.7
77.4

FY05 FY06 FY07 FY08 FY09 FY10 9M FY11 FY05 FY06 FY07 FY08 FY09 FY10 9M FY11

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 Consistent Financial Growth

EBITDA (INR Cr) PAT (INR Cr)

CAGR FY08 – FY10: 49% CAGR FY08 – FY10: 67%
117.8
200.4

155.6 83.4
140.5 80.5

108.1 62.6
78.9 41.7
44.5 20.8
27.2
9.2

FY05 FY06 FY07 FY08 FY09 FY10 9M FY11 FY05 FY06 FY07 FY08 FY09 FY10 9M FY11

PBIDT and PAT Margins

FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 9M FY 11
EBITDA Margin 26% 28% 33% 37% 35% 39% 30%
PAT Margin 9% 13% 17% 21% 19% 23% 17%

Please note, all figures are based on standalone financial statement

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 Nine Month Ending Sept 30, 2010

• 9M F11 Highlights
– 9M Total income at INR 364.44 Cr
– 9M PAT at INR 62.59 Cr
– 11,867 members added
– Cumulative member base as on 31st Dec 2010: 121,751
• CMH 114,879 and Zest 6,872
– Launched Terra a Tented campsite with adventure activities giving customers an
outdoorsy experience
– MOU signed with the Government of Gujarat for setting up 7 resorts
– MHRIL became the first vacation ownership company in the world to have
received the prestigious COPC certification.
– Won prestigious Bird Express TravelWorld Awards for Excellence in Operations

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 Quarter Ending Dec 31, 2010

• Q3 F11 Highlights
– Q3 Total income at INR 144.5 Cr (Growth of 14.1% )
– Q3 PAT at INR 31.1 Cr (Growth of 30.6% )
– Q3 EBITDA at INR 51.9 Cr (Growth of 25.0% )
– 3,758 members added
– Occupancy was 81.4% against 74.1% in Q3 LY
– 3 New destinations added : Osian , Navalgarh and Swamimalai

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 Consolidation Measures for the future
• Measures taken at start of fiscal year
– Move from “Aggressive-Push” to “Assisted-Pull” approach in Acquisition
– Sales processes streamlined
• Price increase 5%
• DP increased to 15%
• Limit Tenure to 48 EMI plans
– Strengthening memberbase health through re-alignments and cancellations
• Upsides
– More committed and actively holidaying member base
– Improved Yield : from New Sales funnel and receivables
– Released old inventory for resale at current prices
• Downsides
– Short term „pains‟: “dampener” impact on Revenues and PAT

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 MHRIL Growth Strategy

Strategy Formulation

Intensify, Integrate & Diversify

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 Strategy Formulation
Travel & VO Industry:
India Story:
Environment Tourism: Nascent
& Industry Strong + Growth
+ market
Fundamentals
Sector New Segments

CHANGE CONSOLIDATE BE FUTURE READY

Growth Identified Business Intensify existing VO Leverage Competences &
Strategy Processes to suit the operations. enter related businesses.
changed times. Enter new segments. Test new initiatives.

Competitive Leading Brand, Mahindra Group,

Management
Advantage Competences
+ Unique & Differentiated Biz Model,
Human Capital

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Growth Strategy driven by
© An enabling environment & our competitive advantage 28
 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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