#1IHCL Investor Presentation August 2019 A TATA Enterprise TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats#2We are South Asia's largest hospitality company with a legacy of 115 years 100+ 4 12 locations continents countries YVYW 11 182 22,000+ hotels keys 32,000+ associates 2 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats $1 Billion+ Group revenue wwww CYKYYYYYYYYY GREEN KEKES IHCL#3Travel & Tourism in India - The outlook continues to be strong 12.8% ■ Domestic 6.7% $247 Bn 2018 - T&T Contribution to GDP 87.2% ■International Source: WTTC Report - Travel & Tourism Economic Impact 2019 3 TAJ SELEQTIONS VIVANTA 5.2% ■Leisure ■ Business 94.8% GINGER EXPRESSIONS TAJ sats T&T Contribution to GDP (10 year outlook) 247 2018 ~7% p.a. 450 2028 Creation of 10 Mn jobs in the next 10 years IHCL#4Indian hospitality - short-term headwinds but good long-term potential Headwinds Tailwinds Impact of elections on occupancies, MICE • Increasing foreign tourist arrivals (14% yoy, < 1% global) • Hold back of discretionary spends • Increasing local airfare / turmoil in airline industry • No direct reliefs (GST / Infra.) in Union Budget 2019 • • Demand growth (3.0%) < Supply growth (3.2%) in Q1 • ● Improving domestic demand 4 TAI SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats Rising middle class and strong demographic dividend Policy continuity Tremendous opportunity for conversions (72% unbranded) IHCL#5- Supply & Demand Scenario – Q1 2019/20 Luxury Supply growth 2.9% Demand growth 4.6% Upper Upscale 80% Supply growth 1.6% Total Portfolio Industry Demand growth 4.0% Supply growth 3.2% Upscale Demand growth 3.0% Supply growth 3.7% Demand growth 4.0% Midscale and Economy Supply growth 3.4% Demand growth 2.3% Source STR Global 5 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats IHCL#6Source: STR Global *3,286 * 3,353 6 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats * 3,281 * 3,684 * 3,381 €3,232 *3,980 * 4,221 * 3,154 * 3,102 * 4,166 * 4,057 * 5,705 * 5,762 * 3,746 * 4,181 India I Hyderabad Pune Bengaluru Chennai New Delhi Mumbai Gurgaon ■■Q1 (2018-19) ■■Q1 (2019-20) Area Chandigarh Kolkata Jaipur Ahmedabad Goa Kochi * 2,832 * 3,245 * 3,671 * 3,526 IHCL * 2,184 * 2,329 For Indian Hospitality, Q1 FY 2019/20 has been one of €2,284 € 2,209 * 1,973 Sustained RevPAR Growth at 2.0% * 4,649 * 4,399 * 2,204#7Aspiration 2022 Unveiled in February, 2018 8% EBITDA MARGIN EXPANSION VALUES ENABLERS INITIATIVES ASPIRATION 2022 Culture Re-structure Iconic and Profitable Hospitality Company Re-imagine Service, Brandscape, Scale, Simplify, Sell Portfolio Re-engineer Margins, Technology People Strong Brand Equity Pan-India Footprint High Customer Engagement Market Leaders in Leisure & Palaces Segment 15 NEW PROJECTS EVERY YEAR 50-50 PORTFOLIO TRUST, AWARENESS, JOY 7 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats INTEGRITY, EXCELLENCE, UNITY, RESPONSIBILITY, PIONEERING IHCL#8Strategic Initiatives Path to Execution Re-structure Re-imagine Re-engineer Scale up Inventory Manage Brandscape Expand Margins Sell Non Core Assets Multiply Portfolio Embrace Technology Simplify Holding Structure Manoeuvre Excellence Engage People 8 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats IHCL#9Reimagining Brandscape: To cater to all segments and price points Luxury Upper Upscale VIVANTA SELEQTIONS 12 hotels 1,200 keys TAJ 85 hotels 12,800 keys Upscale Lean Luxe GINGER 27 hotels 3,800 keys 58 hotels 4,900 keys Low *Portfolio including pipeline 9 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats ARR 182 Hotels 22,000+ Keys High IHCL#10Restructuring Portfolio: Momentum Continues SMART Strategic Margin Enhancing Asset Management Relationships Tracking 22 Signings FY 2018/19 - 10 TAJ SELEQTIONS VIVANTA 9 4 Signings - YTD 2019/20 Openings YTD 2019/20 GINGER EXPRESSIONS TAJ sats IHCL#11- Our Portfolio – India Focus, selective International Expansion *including pipeline 22 3900 22% * 182* Hotels 22,000+* Keys Brandscape 56% 17% (Post migrations) 160 Domestic International 18802 Domestic International 5% ■Taj ■SeleQtions ■ Vivanta ■Ginger 182 hotels with 152 operational and another 30 under development 11 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats IHCL#12Shift in Business Mix 32% Management Contracts 23% Holding Company 41% Management Contracts 20% Holding Company 45% Group Companies Portfolio as on 31st March 2018 12 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats 39% Group Companies Portfolio as on 31st July 2019 IHCL#13Onground Operational Excellence driving Business Performance Employee Engagement Guest Engagement Operational Excellence Margin Enhancement Process Excellence 13 TAI SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats IHCL#14Financial Turnaround#15Journey so far Industry uptick Balance Sheet strength Strategic Clarity 2015/16 2016/17 2017/18 Now Delivery of Performance Development Momentum x ㄨ 15 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS x x TAJ sats ✓ * - - - - IHCL#16Strong Consolidated Performance - FY 2018 / 19 Revenue EBITDA EBITDA Margin * 4,595 cr 913 cr 19.87% 287 cr 10% 25% * 4,165 cr 732 cr 17.58% 16 TAI SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats 229 bps PAT 101 cr 184% IHCL#17Performance Highlights - Q1 FY 2019 / 20 Revenue EBITDA EBITDA Margin 14 cr 1,057 cr 166 cr 15.68% 995 cr 6% 126 cr 32% 12.63% 304 bps *Consolidated Performance - Excludes IND AS Lease Standard Impact (like-for-like) 17 TAI SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats 15 cr PAT (8%) IHCL#18- Consolidated Profit & Loss Statement – Q1 2019/20 */crores Particulars 2019/20 Actual Q1 2019/20 Ind AS 116 Impact 2018/19 Post Ind AS Actual Pre Ind AS Actual Pre Ind AS VS Actual PY Revenue from Operations Non-Operating Revenue Total Revenue Total Expenditure EBITDA Operating EBITDA 1,020 0 1,020 980 4% 37 0 37 15 147% 1,057 0 1,057 995 6% 847 (45) 891 869 3% 210 45 166 126 32% 173 45 129 111 16% EBITDA Margin 19.91% 15.68% 12.63% 3.04 pp Operating EBITDA Margin 17.00% 12.61% 11.30% 1.32 pp Depreciation and Amortization Expense 100 17 83 78 6% Finance Costs 85 39 46 47 -3% Profit Before exceptional Items & Tax Exceptional items Gain/(Loss) 25 (11) 37 0 2 2 (4) + Profit/ (Loss) before tax 28 (11) 39 (4) Provision for Taxes 18 (2) 20 (10) + Profit/ (Loss) After Tax 10 (9) 19 6 Add: Share of Profit/(Loss) in Associates & JV's (5) (1) (4) 3 Less Profit/ (Loss due to Non-Controlling interest) 1 2 (1) 6 Profit/ (Loss) after Non controlling interest, share of associates and JV 6 (8) 14 15 -8% 18 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats IHCL#19Continued Outperformance by USA and UK Hotels - Q1 REVENUE EBITDA MARGIN EBITDA St. James Court, London 22% St. James Court, London 68% The Pierre, NY 6% The Pierre, NY 315% Taj Campton Place, SFO 2% Taj Campton Place, SFO 28% RGI St. James Court, London 820 pp St. James Court, London 102 → 121 The Pierre, NY 100 pp The Pierre, NY 94 → 105 Taj Campton Place, SFO 230 pp Taj Campton Place, SFO 100104 *All figures based on Growth in USD 19 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats *St. James Court includes Taj 51 BG Suites & Residences IHCL#20Aspiration 2022 - 8% Margin Expansion Drivers of margin expansion Particulars Revenue RevPAR Growth Other Operating Income Management Fee Income Incremental Income from New Inventory Costs Operational Payroll Procurements (Raw Materials, Stores & Supplies) Corporate Overheads Admin and General Expenses Fuel, Power & Light Asset Contract Costs EBITDA Margin Improvement Margin Improvement 20 20 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats 3 to 4 % 3 to 5% 8% IHCL#21An Ecosystem for Revenue and Margin Growth Jiva Khazana Topline Drivers Chambers + Travel Desks Hotels Margin Drivers Air Catering Shop Rentals F & B Concepts 21 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats Market Share Drivers IHCL#22SCORE Sustainable Cost Optimization and Re-Engineering Sustainable Cost Optimization And Re-engineering Solution wise contribution to Benefits 01011 10101 SYNERGISE (PRICE) Coverage 1500 crores of cost at network Level across legal entities RE-ENGINEER (CONSUMPTION) RE-IMAGINE (DIGITAL SOLUTIONS) Raw materials Power & Fuel Stores & Supplies Part of Selling Cost SIMPLIFY (SPECIFICATION) 22 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats Separately Shared services and Synergy across units IHCL#23Managing Leverage: Preserving Balance Sheet health Improving D/E 1.27 3912 1925 1889 1975 4216 0.97 0.82 3151 0.38 0.39 0.37 3323 3256 4958 5147 5013 4748 2015/16 2016/17 2017/18 2018/19 2019/20 Q1 Pre IndAS 116 2019 / 20 Q1 Post IndAS 116 Equity Net Debt -Net Debt: Equity Net Debt: EBITDA 6.47 4.74 2.58 2.11 2.07 3.92 23 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats */crores IHCL#24All levers - EBITDA, Monetization, Equity Infusions used effectively EBITDA Particulars ༣/Crores 2015/16 2016/17 2017/18 2018/19 Q1 2019/20 652 665 732 913 Divestments* 151 1,163 Equity 1,500 166 246 42 * Divestments include - Taj Boston; Holding in Belmond, Tata Projects, Titan Ltd, Vizag & Trivandrum hotel, Residential Apt. 2 Generated cash aggregating to 2,900 crs in the last four years. Such cash has judicially been used for Debt Repayment, Capex & operational requirements. 2 Gross debt levels down from peak levels of ~ 5,100 crs as on March 2015 to ~ 2,300 crs as on March 2019. 24 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats IHCL#25Asset Management: Focus on building a smarter Balance Sheet Monetization Structured Transactions - Sale and Manage Back Unlocking Value of Land Banks - Sale / New Build Exploring Sale & Lease Back Opportunities Sale of Non-Core Assets Management Contracts Greenfield Alliances with Funds and development Partners Projects Low Investment 25 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats High IHCL#26New Platform furthers our SMART approach to Acquisitions GIC * 4,000 crore (USD 600 Mn) Investment Platform 26 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats IHCL#27Summary: Key Imperatives for Aspiration to Execution ASPIRATION: TO BE THE MOST ICONIC AND PROFITABLE HOSPITALITY COMPANY 1 Brandscape 2 Growth 3) Collaboration and Partnerships CO 6 4 Operational Excellence 5 Financial Performance and Margin Enhancement Monetization, Asset Management, Simplification and Consolidation 27 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats IHCL#28Strong institutional shareholding Shareholding Pattern* Top institutional investors* Investors % stake in IHCL Retail, 13% Reliance Mutual Fund 7.89 Tata HDFC Mutual Fund 5.91 Group, 39% ICICI Prudential Life Insurance Company Ltd. 2.80 FII, 12% Government Pension Fund Global 2.65 ICICI Prudential Mutual Fund 2.43 SBI Mutual Fund 2.12 Life Insurance Corporation of India 1.78 Franklin Templeton Mutual Fund 1.71 HDFC Life Insurance Company Ltd. 1.55 Vanguard 1.42 DII, 36% Franklin Templeton Investment Fund 1.21 L&T Mutual Fund 1.18 * As on 31st July, 2019 28 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats IHCL#29Disclaimer These presentations may 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. Please visit our corporate website www.ihcltata.com for previous investor communications. 29 TAJ SELEQTIONS VIVANTA GINGER EXPRESSIONS TAJ sats IHCL