Sterling Holiday Resorts (India) LtdSterling Holiday Resorts (India) Ltd

June 2012June 2012

Financials as of 31st March 2012IP

7

ContentContent

� Company History

� Board of Directors

� Mission

� Business Strengths

� Resort Experience

2

� Resort Experience

� Sales & Marketing

� Highlights FY’12

� Growth Indicators FY’12

� Financials FY’12

� Long Term Strategy

)

Company HistoryCompany History

� Incorporated in 1986. Went public in 1989

� Pioneered and marketed the Property Timeshare & Vacation

Timeshare products successfully in India

� By 1995, 11 resorts in 9 destinations were operational; No. of

customers increased to 86,000; annual revenue touched the Rs.917

Million mark

Went through a 12 years hiatus

3

� Went through a 12 years hiatus

� Fresh equity investments in 2009

� Post financing, past liabilities settled; resorts renovation and

consolidation of operations taken up

� Currently on a high growth trajectory

� Expert professional leadership team in place; more skilled

professionals being recruited

)

ThenThen NowNow

4

The great escape It’s a wonderful world!

)

Board of DirectorsBoard of Directors

Name Designation

Mr.Siddharth Mehta Chairman

Mr.S.Sidharth Shankar Vice Chairman

Mr.Ramesh Ramanathan Managing Director

5

Mr.Amit Jatia Director

Mr.Shahzaad Dalal Director

Mr.Utpal Sheth Director

Mr.K.Chandrasekaran Director

Mr.M.N.Rangamani Director

)

MissionMission

� Sterling Holidays aims to be the No.1 Vacation

Ownership company in India by FY 2016

� Sterling Holidays will deliver a superior and memorable

holiday experience in aesthetically designed, full-

service resorts located in scenic leisure destinations in

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service resorts located in scenic leisure destinations in

India and around the globe

� Sterling Holidays and its employees are committed to

service excellence, good corporate governance and

sustainable development to create wealth for its

stakeholders and be a responsible corporate citizen

)

Business StrengthsBusiness Strengths

� Among the leading Vacation Ownership companies in India

� 63,435 active Vacation Ownership customers

� 19* Full service resorts, 15 destinations, 1444 apartments

� Strong brand with high recall

� National footprint with large inventories across India

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� National footprint with large inventories across India

� 15 additional scenic vacationing sites with a scope of expansion of

about 2000 plus apartments

� 25 years of expertise in Vacation Ownership and Resort Operations

� Multi location sales & service network

� 2000 strong work force

* Count of operational resorts

)

Integrated Business ModelIntegrated Business Model

Resort Creation

- Scenic holiday spots

- Resort design & development

Holiday Experience

- Full service resorts

- Value creation

- Community building

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Member Management

- Holiday planning & reservations

- Customer satisfaction benchmarking

Marketing & Sales

- Lifestyle need-based segmentation

- Multi-channel sales initiatives

)

Customer Centric OfferingCustomer Centric Offering

Conventional Model Sterling Holidays Model

� Fixed Week Fixed Resort

� Variable Price Model

� Limited Service Resort

Flexible Week & Resort Usage*

Fixed Retail Price

� Transparency

Full Service Resort

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� Limited Service Resort

� Distinct Developer, Marketer and

Service Operator

� Conventional Timeshare Resorts

Full Service Resort

� Enhanced Holiday Experience

Vertically Integrated Operations

� Deliver on promised value

Mixed Use Resorts

� Maximize Revenue & Maintain Quality

* Right-to-use membership of one week every year for 25 years in season, resort

and apartment type of customer choice.

)

Product RangeProduct Range

Vacation Ownership

•The 3rd generation and most contemporary product

Hotel Stays & Holiday Packages

•For Individuals and Groups

Conferences

•MICE

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contemporary product modeled on the international

points system. Offers Ultimate flexibility of usage

)

Multiple Revenue StreamsMultiple Revenue Streams

� Membership Fee

� Annual Maintenance / Utility Charges / Annual Subscription Fee

� Interest on EMI Installments

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� Revenue from Resort Operations

• Admission FeeUpfront

Cash

• AAC, Utility, ASF

• Resort Income

• Interest Income

Recurring Income

)

Unique Revenue Model Value created continuously Unique Revenue Model Value created continuously from a single resort unit..from a single resort unit..

Recurring Revenue Streams*: ASF, Usage Fee, Resort

Income from Financing

Admission FeeEntitlement Fee

Resort - MembersResort – FITInterest on EMI

Annual Subscription Fee

Timeline (years)

*Inflation not considered

0 25

Valu

e R

ealized

Recurring Revenue Streams*: ASF, Usage Fee, Resort

Revenues

Upfront Cash:

Admission Fee

Residual Value *:Opportunity for 2nd cycle - ZERO Marginal Cost of

Inventory

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Value Creation Profile

Large Upfront Cash-flow

Built in Annuity Stream

Residual Value

耀�

Sterling Holidays Hotels

OccupancyStable Occupancy - Less

vulnerable to economic recession

Occupancy subject to economic

cycles

Revenue

StreamsMultiple revenue streams - Yearly

and Annuity basedLimited revenue streams

Debt Structure Debt free High levels of debt

The Sterling Holidays AdvantageThe Sterling Holidays Advantage

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Debt Structure 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

Holiday

ExperienceHigh Quality – Focus on every

member of the Family.

Generally less focus on Holiday

Experience and no focus on

individuals within the Family.

^

Resort Experience

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^

Wonderful Holiday ExperienceWonderful Holiday Experience--Full Serviced ResortsFull Serviced Resorts

Enhanced Holiday Experience

� Multi-Cuisine Restaurants

� Food Masti Value Meals

� Gamut of In-house &

Outdoor Holiday Activities

Resort Design Strategy

� Located to offer

breathtaking vistas of

destination

� Architecture to blend with

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Outdoor Holiday Activities

� Wellness Spa

� MICE Facilities

� Architecture to blend with

topography

� Apartments designed to

offer stunning views

^

1919resorts inresorts in

15 15 destinationsdestinations

& growing…& growing…Fern Hill, Fern Hill, OotyOoty Woods n SpiceWoods n Spice, , ThekkadyThekkady

Glimpse of a few resorts...Glimpse of a few resorts...

16Emerald Bay, Emerald Bay, KarwarKarwar

VillagioVillagio Inn, GoaInn, Goa

White Mist, White Mist, ManaliManali Golden Sands, Golden Sands, PuriPuri Rock Perch, Rock Perch, YercaudYercaud Valley Valley View,KodaikanalView,Kodaikanal

Silver Oaks, DarjeelingSilver Oaks, DarjeelingElk Hill, Elk Hill, OotyOoty

River View Retreat, CorbettRiver View Retreat, Corbett

)

Glimpse of a few resorts...Glimpse of a few resorts...

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Fern Hill,OotyFern Hill,Ooty Emerald Bay, KarwarEmerald Bay, Karwar

X

Glimpse of a few resorts...Glimpse of a few resorts...

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Golden Sands, Golden Sands, PuriPuri White Mist, ManaliWhite Mist, Manali

X

Resorts Resorts –– ‘Then & Now’‘Then & Now’

New resort identityNew resort identity

NowNow

No resort identity No resort identity

ThenThen

No resort identity No resort identity

ThenThen

New resort identityNew resort identity

NowNow

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Lake View, Kodaikanal Green Vistas, Munnar

B

ThenThen NowNow

20KodaiKodai By The Lake By The Lake -- Rooms Rooms

ۓ̠

TT

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ee

nn

21KodaiKodai By The Lake By The Lake -- RestaurantRestaurant

NN

oo

ww

ꀀ�

TT

hh

ee

nn

22MunnarMunnar -- Terrace Greens Terrace Greens -- RoomsRooms

NN

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ᵠԜ

Range of FacilitiesRange of Facilities

Holiday Activities Room

Children’s Play Area

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Barbeque with live music

Billiards Room

Children’s Play Area

ۓ̠

21 Resorts in 17 Destinations21 Resorts in 17 Destinations

Manali (80)

Musoorie (62)

Additional Units - 49

Gangtok (30)

Lonavala (40)

Goa (88)

Villagio Inn (58)

Camphor Resorts (30)

Karwar (50)

Sariska (25)

*By November 2012

Daman (54)

*By July 2012

Corbett(12)

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Gangtok (30)

Darjeeling (103)

Additional Units - 29

Puri (69)

Additional Units - 131

65 rooms

Yelagiri (34+65)

*By Dec 2012, additional

65 rooms

Kodaikanal (260)

Kodai by the Lake (104)

+ Valley View (156)

Munnar (125)

Additional Units - 184

Yercaud (66)

Thekkady (53)

Ooty (307)

Elk Hill (130 ) + Fern Hill

(177)

No. of Apartments

Owned: 1072 + Leased: 451 Total:1523 + scope for 400 Addl units

* New Resort operations start date mentioned above

A

Available LandAvailable Land--bankbank

Corbett

4.50 Acres

Bhimtal

6.66 Acres

Gangtok

15.10 Acres

Mahabaleshwar

5.13 Acres

Igatpuri

2.47 Acres

Alibaug

3.0 Acres

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Available for

Greenfield projects

15 Destinations

150 Acres

2000+ Rooms

Ooty

Koda Kodai

Villapatti – 8.74 Acres

Lake View – 2.52 Acres

Yelagiri

20.00 Acres

Coorg

Mercara - 30 Acres

Virajpet - 5.75 Acres

Rameshwaram

2.19 Acres

Thekkady

2.80 Acres

Goa

Chapora-4.51 Acres

Vagator-0.90 Acres

Peermade

28.28 AcresMunnar

7.0 Acres

Ooty

1.00 Acres

ۓ̠

Sales and Marketing

26

A

Sales Channel Sales Channel –– VO BusinessVO Business

Home Sits

- Direct to Home sales teams (28 teams)Venue

- Holiday Worlds (9 Venues)

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Franchisee /Agents

- Direct Sale Agents (10 DSAs)

On site

- Sales offices at Resorts (3 Onsite Venues)

㘐Ԝ

Nagpur

New Delhi

Ahmedabad

Sales & Customer Service OfficesSales & Customer Service Offices

Chandigarh

Lucknow

28

Chennai

Hyderabad

MaduraiThiruvananthapuram

Mumbai

Pune

Kolkata

Kochi

Coimbatore

15 Sales & Customer Service

Offices

Franchisee Locations

Onsite Sales Venues

Bengaluru

鼠Ԝ

AdvertisementsAdvertisements

29

ꏠԜ

On ground PromotionsOn ground Promotions

30

Ԝ

Web initiativesWeb initiatives

31

ἰԝ

Highlights FY’12

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摠ԝ

Highlights FY‘12Highlights FY‘12

� Total income (Rs Lac) 7,827 ( 78%)

� Vacation Ownership Income (Rs Lac) 3,376 ( 122%)

� Resort Income (Rs Lac) 4,106 ( 48%)

� Number of Resorts (#) 19 ( 36%)

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� Number of rooms (#) 1,362 ( 13%)

� Number of room nights (#) 1,85,330 ( 17%)

� Occupancy ( in %) 40% ( 8%)

︰�

Highlights FY‘12Highlights FY‘12

� Q4 FY’12 EBIDTA - 183 Lacs

� Change in Income Recognition - 45% to 60%

� VO Price increase – 15%

� New product launched

� AAC and Utility fee increase – 75% & 40% respectively

� Secured land parcels & renewed licenses

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� Secured land parcels & renewed licenses

� 5 New Leased Resorts

� Resort Refurbishment and Renovation on

� 50 seater Customer Contact Centre established

� CRM implemented using Salesforce.com

� Middle management structure established

� Renewed Banking relationships

� Strengthened Vendor relationships

ᙐ�

Growth Indicators FY’12

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嫐�

Financial Performance FY’12Financial Performance FY’12

2,771

4,106

Resort Income – Rs. Lac

4,395

7,827

Total Income – Rs. Lac

78%

1,518

3,376

VO Income- Rs. Lac

122%48%

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FY 11 FY 12FY 11 FY 12

1,518

FY 11 FY 12

竐�

Operational Performance FY’12Operational Performance FY’12

2,490

No of Customers acquired (#)3,702

Receivables- Rs. Lac

119%

232%

37

40

Occupancy -%

8%

37

1,135

FY 11 FY 12

1,116

FY 11 FY 12 FY 11 FY 12

<

Long Term StrategyLong Term Strategy

� Become a leader in the holiday sector over the next 5 years

� Build resorts with varying themes

� Reposition brand

� Create a strong leadership team; plan for leadership succession

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� Develop a futuristic organization structure in line with strategy

� Make the company a fun place to work

� Build global base for business

� Transcend to become a holiday lifestyle company

胰�Thank You.

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Thank You.