q3 & 9m fy17 result update february 2017bsmedia.business-standard.com/_media/bs/data/...q3 &...

Q3 & 9M FY17 RESULT UPDATE – FEBRUARY 2017

DISCUSSION SUMMARY

Q3 & 9M FY17 RESULTS HIGHLIGHTS

Q3 & 9M FY17 PORTFOLIO UPDATE

AMUSEMENT PARK, BANGALORE

RESORT, BANGALORE

AMUSEMENT PARK, KOCHI

AMUSEMENT PARK, HYDERABAD

COMPANY OVERVIEW

ANNEXURE

2


3

In Rs Mn

REVENUES EBITDA & EBITDA MARGIN CASH PAT, PAT & PAT MARGIN

504.2

700.9

Q3 FY16 Q3 FY17

182.0

133.4

36.1%

19.0%

Q3 FY16 Q3 FY17

EBITDA EBITDA Margin %

122.6

42.1

150.8121.6

24.3%

6.0%

Q3 FY16 Q3 FY17

PAT Cash PAT PAT Margin %

39 %

Q3 FY17 YoY Analysis

27 %

REVENUES EBITDA & EBITDA MARGIN CASH PAT, PAT & PAT MARGIN

1,608.6

2,092.0

9M FY16 9M FY17

732.0627.3

45.5% 30.0%

9M FY16 9M FY17EBITDA EBITDA Margin %

522.5

296.3

634.0524.4

32.5% 14.2%

9M FY16 9M FY17PAT Cash PAT PAT Margin %

30 %

9M FY17 YoY Analysis

14 % -43 %

-17 %

- 66 %

-19 %


4

FINANCIAL UPDATE

Q3 FY17 Revenues from Operations grew by 39% YoY to Rs 700.9 mn driven by 6% growth in average revenue per visitor and footfallsincrease by 32%.

Bangalore park witnessed 4% increase in average ticket revenue, 39% increase in average non-ticket revenue and 1% increase in footfalls

Celebration of Christmas and Dussehra festivals in the park along with introduction of exciting new culinary options led to higher consumption by visitors.

Kochi park witnessed 3% increase in average ticket revenue, 8% increase in average non-ticket revenue and 3% increase in footfalls

Two new rides – Equinox 360 and Flash Tower were introduced in December and received good response from the visitors.

Hyderabad park continued to witness good traction, recording 0.45 mn footfalls in 9M FY17.

Q3 FY17 EBITDA declined by 26.7% YoY to Rs 133.4 mn. EBITDA margin decreased from 36.1% in Q3 FY16 to 19.0% in Q3 FY17.

The increase in employee expense was primarily on account of Hyderabad Park.

Operating costs increased primarily due to

Higher advertising & marketing expenses mainly on account of Hyderabad Park

Increase in provisions of Rs 103.8 mn on account of taxes and levies which are under litigation before authorities

Q3 & 9M FY17 REVENUE ANALYSIS

SERVICES VS. PRODUCTS

84.6%81.5%

86.2% 82.8%

15.4% 18.5% 13.8% 17.2%

Q3 FY16 Q3 FY17 9M FY16 9M FY17

Services Products

In Rs Mn

5

TICKET VS. NON-TICKET

77.1% 74.1% 78.9% 75.9%

22.9% 25.9% 21.1% 24.1%

Q3 FY16 Q3 FY17 9M FY16 9M FY17

Ticket Non-Ticket

TOTAL FOOTFALLS (In ‘000)

566 748

Q3 FY16 Q3 FY17 9M FY16 9M FY17

32% 17 %

51.6% 41.5% 54.5% 44.1%

42.8%33.2%

40.5%31.6%

20.6% 19.9%

Q3 FY16 Q3 FY17 9M FY16 9M FY17

Park - Bangalore Park - Kochi Park - Hyderabad Resort - Bangalore

PORTFOLIO BREAKUP

504.2 700.9 1608.6 2092.0 504.2 700.9 1608.6 2092.0

504.2 700.9 1,608.6 2,092.01,742

2,036

Q3 & 9M FY17 REVENUE ANALYSIS

AVG. REVENUE PER VISITOR (PARKS) (In Rs)*

845.9

PORTFOLIO UPDATE – AMUSEMENT PARK, BANGALORE

LOCATION BANGALORE

Total Land Available (In Acres) 81.75

Developed Land (In Acres) 39.20

Land Availability for Futuredevelopment (In Acres)

42.55

Total No of Rides 61

No of Wet Rides 21

No of Dry Rides 40

• Launched in 2005 by the name ‘Wonderla’

• Wonderla Bangalore is located off the Bangalore-Mysore highway, 28 km from Central Bangalore

• Situated on 81.75 acres of land with 61 land and water based attractions and other allied facilities

• 5 restaurants offering various cuisines, of which three are operated by the Company

• The park has won 11 awards since inception

Q3 FY17 Q3 FY16 YoY %

Total Revenues (Rs Mn) * 292.9 261.8 11.9%

No of Visitors (In ‘000) 269.6 266.1 1.3%

Avg. Revenue Per Visitor (Rs) 1,086.4 983.8 10.4%

* Includes sale of services, sales of products & other operating income.

7

9M FY17 9M FY16 YoY %


No of Visitors (In ‘000) 806.5 918.2 -12.2%

Avg. Revenue Per Visitor (Rs) 1,150.9 961.6 19.7%

8

BANGALORE PARK – REVENUE & FOOTFALL ANALYSIS

FOOTFALLS – WALK-IN Vs. GROUP / CHANNEL (‘000) FOOTFALLS – REGIONWISE BREAKUP (‘000)

AVG. TICKET REVENUE PER VISITOR (In Rs)

813.0 849.0 791.0

931.0

Q3 FY16 Q3 FY17 9M FY16 9M FY17

4 % 18 %

AVG. NON-TICKET REVENUE PER VISITOR (In Rs)

170.8

237.4

170.6

219.9

Q3 FY16 Q3 FY17 9M FY16 9M FY17

39 % 29 %

59% 58% 70% 72%

41% 42%30% 28%

Q3 FY16 Q3 FY17 9M FY16 9M FY17

Walk-in Group

9.7% 9.1% 5.9% 5.7%

75.3% 80.3%73.4% 79.4%

6.5% 3.0% 11.2% 7.3%4.6% 4.1% 5.6% 4.2%

3.9% 3.5% 3.9% 3.5%

Q3 FY16 Q3 FY17 9M FY16 9M FY17

Kerala Karnataka Tamil Nadu Andhra Pradesh Others

266.1 269.6 806.5918.2 266.1 269.6 806.5918.2

BANGALORE PARK

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PORTFOLIO UPDATE – WONDERLA RESORT, BANGALORE

• Three Star leisure resort attached to the amusement park; launched in March 2012

• The resort has 84 luxury rooms

• The resort also has 4 banquet halls / conference rooms, totalling 8,900 sq. ft. with a capacity to hold 800 guests and a well equipped board room

• Suitable for hosting wedding receptions, parties and other corporate events and meetings

• Other amenities include a multi-cuisine restaurant, rest-o-bar, solar heated swimming pool, recreation area, kids’ activity centre and a well equipped gym


PORTFOLIO UPDATE – AMUSEMENT PARK, KOCHI

LOCATION KOCHI



Land Availability for Futuredevelopment(In Acres)

64.42


No of Wet Rides 22

No of Dry Rides 33

• Launched in 2000 by the name ‘Veegaland’ and operating under the name ‘Wonderla’ since April 2008

• Situated on 93.17 acres of land, and currently occupying 28.75 acres for 55 land and water based attractions and other allied facilities

• 5 restaurants offering various cuisines, of which two are operated by the Company

• The park has won 16 awards since inception


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No of Visitors (In ‘000) 309.6 300.0 3.2%

Avg. Revenue Per Visitor (Rs) 753.6 723.0 4.2%

9M FY17 9M FY16 YoY %


No of Visitors (In ‘000) 777.5 823.3 -5.5%

Avg. Revenue Per Visitor (Rs) 854.4 795.7 7.4%

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KOCHI PARK – REVENUE & FOOTFALL ANALYSIS

FOOTFALLS – WALK-IN Vs. GROUP / CHANNEL (‘000)


575.0 594.0 659.0 696.0

Q3 FY16 Q3 FY17 9M FY16 9M FY17

3 % 6 %


148.0 159.6

136.7 158.4

Q3 FY16 Q3 FY17 9M FY16 9M FY17

8 % 16 %

40% 38% 60% 57%

60% 62%40% 43%

Q3 FY16 Q3 FY17 9M FY16 9M FY17

Walk-in Group

300.0 309.6 777.5823.3

FOOTFALLS – REGIONWISE BREAKUP (‘000)

84.2% 79.2% 72.9% 68.1%

1.7% 2.6% 1.1% 1.7%11.0% 15.2%

22.1% 26.7%0.6% 0.7% 0.5% 0.5%2.6% 2.3% 3.3% 3.0%

Q3 FY16 Q3 FY17 9M FY16 9M FY17

Kerala Karnataka Tamil Nadu Andhra Pradesh Others

300.0 309.6 777.5823.3

KOCHI PARK

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PORTFOLIO UPDATE – AMUSEMENT PARK, HYDERABAD

LOCATION HYDERABAD



Land Availability for Futuredevelopment(In Acres)

22.5


No of Wet Rides 18

No of Dry Rides 25

• Launched in April 2016 by the name ‘Wonderla’.

• Situated on 49.5 acres of land, and currently occupying 27.0 acres for 43 land and water based attractions and other allied facilities.

• 4 restaurants offering various cuisines, of which 3 are operated by the Company.


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Q3 FY17 Q2 FY17 QoQ %


No of Visitors (In ‘000) 168.8 75.9 122.5%

Avg. Revenue Per Visitor (Rs) 857.8 1,040.0 -17.5%

9M FY17

Total Revenues (Rs Mn) * 417.7

No of Visitors (In ‘000) 451.6

Avg. Revenue Per Visitor (Rs) 924.9

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HYDERABAD PARK – REVENUE & FOOTFALL ANALYSIS

FOOTFALLS – WALK-IN Vs. GROUP / CHANNEL (‘000)


739.0 631.0 656.0

Q2 FY17 Q3 FY17 9M FY17


301.0

226.8

268.9

Q2 FY17 Q3 FY17 9M FY17

74%45% 71%

26%55%

29%

Q2 FY17 Q3 FY17 9M FY17

Walk-in Group

75.9 451.6

FOOTFALLS – REGIONWISE BREAKUP (‘000)

2.5% 5.9% 17.0%

93.9% 90.9% 78.5%

3.6% 3.1% 4.5%

Q2 FY17 Q3 FY17 9M FY17

Andhra Pradesh Telengana Others

75.9 168.8 451.6168.8

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HYDERABAD PARK

FINANCIALS – P&L STATEMENT

17

Note –Income from services includes income from sale of entry tickets, share of revenue from restaurant sales and income from resort. Income from sale of products includes income from sale of traded goods, packaged food and other merchandise sold within amusement parks

Particulars (Rs Mn) Q3 FY17 Q3 FY16 YoY % 9M FY17 9M FY16 YoY %

Sale of Services 571.0 426.4 33.9% 1,732.0 1,385.8 25.0%

Sale of products 129.9 77.8 66.9% 359.9 222.8 61.6%

Total Revenue from Operations 700.9 504.2 39.0% 2,092.0 1,608.6 30.1%

Direct Operating Expenses 149.0 77.2 92.9% 448.6 247.1 81.5%

Purchase of Stock-in-Trade 57.9 36.0 60.8% 181.5 110.3 64.5%

Changes in Inventories of Stock-in-trade 4.3 -0.8 - -9.3 -4.3 -

Employee Expenses 97.3 81.5 19.4% 291.6 228.8 27.4%

Other Expenses 259.0 128.3 101.9% 552.3 294.6 87.5%

EBITDA 133.4 182.0 -26.7% 627.3 732.0 -14.3%

EBITDA Margin % 19.0% 36.1% -1707 bps 30.0% 45.5% -1552 bps

Depreciation 79.4 28.2 182.1% 228.1 111.5 104.6%

Other Income 13.5 26.6 -49.2% 49.7 156.9 -68.3%

Finance Cost 4.1 3.4 20.8% 8.6 10.8 -20.7%

PBT 63.4 177.1 -64.2% 440.2 766.6 -42.6%

Tax Expense 21.3 54.5 -61.0% 143.9 244.1 -41.0%

PAT 42.1 122.6 -65.7% 296.3 522.5 -43.3%

PAT Margin % 6.0% 24.3% -1830 bps 14.2% 32.5% -1832 bps

Earnings Per Share (EPS) 0.75 2.17 -65.4% 5.24 9.25 -43.4%

COMPANY OVERVIEW – ABOUT US

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• Own and operate three amusement parks under the brand name Wonderla situated at Kochi, Bangalore and Hyderabad and a resort at Bangalore

• The Company recently opened its third amusement park in Hyderabad in April 2016 spread over 49.5 acres of land (27 acres developed)

• In-house manufacturing facility located at Kochi which manufactures / constructs rides and attractions for both the parks

• The Company and its first two parks have won 30 awards / certifications since inception, including National Awards for Excellence from Indian Association of Amusement Parks & Industries in the areas of total number and variety of rides, most innovative ride, etc

OUR PEDIGREE

BUSINESS OVERVIEW

STRONG FINANCIALS

• One of the largest amusement park operators in India with over 16 years of successful operations. Management has operational experience in the amusement park industry for over a decade

• The promoters launched the first amusement park in 2000 in Kochi under the name Veegaland and later successfully launched the second park in Bangalore in 2005 and third park in Hyderabad in 2016 under the name “Wonderla”

• Promoted by Mr. Kochouseph Chittilappilly and Mr. Arun Chittilappilly – Mr. Kochouseph Chittilappilly also incorporated V-Guard Industries Ltd., a publicly listed company since 2008

• Consolidated Revenues, EBITDA and PAT were Rs 2,053.6 mn, Rs 842.0 mn and Rs 598.2 mn in FY16 having grown at CAGR of 15.7%, 10.3% and 19.0% over FY12 to FY16.

• Both the Parks Operational in Kochi and Bangalore are generating positive cash flows from operations.

• Robust balance sheet with Total Debt to Equity at 0.01x as of FY16.

• Healthy Return Ratios: FY16 ROCE – 18.1%, FY16 ROE – 15.8%

250

300

350

400

450

500

9-Feb-16 9-Apr-16 9-Jun-16 9-Aug-16 9-Oct-16 9-Dec-16

Share Price Performance

COMPANY OVERVIEW – SHAREHOLDING STRUCTURE

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Market Data As on 31.01.17 (BSE)

Market capitalization (Rs Mn) 21,038.0

Price (Rs.) 372.4

No. of shares outstanding (Mn) 56.5

Face Value (Rs.) 10.0

52 week High-Low (Rs.) 420.0 - 316.0

% Shareholding – December-16

Promoter70.99%

Public29.01%

Source: BSE

Source: BSE Source: Company

Key Institutional Investors at December-16 % Holding

Svenska Hendelsbanken 2.22%

Steinberg India Emerging Opp. Fund Limited 2.12%

Valuequest India Moat Fund Limited 2.00%

UTI Mid Cap Fund 1.65%

DNB Asian Small Cap Fund 1.50%

IDFC Sterling Equity Fund 0.92%

HDFC Capital Builder Fund 0.86%

CMP Rs 372.4

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COMPANY OVERVIEW – BOARD OF DIRECTORS & MANAGEMENT TEAM

KOCHOUSEPH CHITTILAPPILLYPROMOTER ANDNON EXECUTIVE DIRECTOR

• 16 yrs in the industry

• Founded V-Guard Industries Ltd., a publicly listed company since 2008 and is currently its Chairman

• Post Graduate Degree in Physics

ARUN KOCHOUSEPH CHITTILAPPILLYPROMOTER ANDMANAGING DIRECTOR

• 12+ yrs in the industry

• Holds a masters degree in industrial engineering

• Actively involved in day-to-day operations and management of Wonderla since 2003

GEORGE JOSEPHCHAIRMAN & NON-EXECUTIVEINDEPENDENT DIRECTOR

• 38+ yrs of total work experience

• Director in MuthootFinance Ltd.

GOPAL SRINIVASANINDEPENDENT DIRECTOR

• 25+ yrs of work experience

• Chairman of TVS Capital Funds & Independent Director in TVS & Sons Limited.

PRIYA SARAH CHEERANJOSEPHEXECUTIVE DIRECTOR

• 12+ yrs in the Industry

• Involved in F&B Operations and HR department of Wonderlasince 2005

SIVADAS M.SENIOR GM -OPERATIONS

• 27 yrs of experience

• Bachelor’s Degree in Physics

AJIKRISHNAN A. G.DEPUTY GM -TECHNICAL


• B.E, MBA

RAMANAKUMAR V.B.AGM - MARKETING


• Degree in Marketing Management

MAHESH M.B.AGM –COMMERCIAL


• MBA in International Business

ANIL SHINDECHIEF PEOPLE OFFICER


• BE, MBA(IIM Ahmedabad)

• Worked for L&T, Reliance Digital and Suzlon Energy

D.S. SACHDEVA (DIPY)CHIEF EXECUTIVE OFFICER (CEO)

• 26+ years of work experience

• Prior experience in well established companies at M/s 3M India Ltd, Hindustan Unilever Ltd

• Holds a degree in engineering from BIT, Ranchi and is also an alumnus of IIM-Bangalore

R LAKSHMINARAYANANINDEPENDENT DIRECTOR

• 10+ yrs of work experience in Retail

• Independent Director in Jyothi Laboratories Limited

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COMPANY OVERVIEW – UNDERSTANDING THE WONDERLA ADVANTAGE

HIGHLY CAPITAL INTENSIVE BUSINESS

AFFORDABILITY –TICKET PRICES ARE HIGH

LAND AVAILABILITY, LOCATION &

CONNECTIVITY

KEY CONCERNS ON SCALABILITY WONDERLA ADVANTAGE

• In-House Design Capability for the Amusement Park• In-House Ride Manufacturing Facility in Kochi• Manufactured / constructed 42* rides / attractions in-house• Typical Capex for a New Park is ~Rs 2,500 mn including Land cost

• Typical Target Audience is the Middle class which can spend Rs 4,000-5,000 per trip for a Family

• All three Parks have Land as well as Water rides under the same Ticket• Average Ticket prices are in the Range of Rs 600-900 per person

• All three Operational Parks have large Land Parcels and have good connectivity (Within 15-25 km from the city)

• Parks witness audiences from neighbouring states like Tamil Nadu and Kerala

OUR SUSTAINABLE COMPETITIVE ADVANTAGES

22

OVER A DECADE OF OPERATIONALEXPERIENCE AND BRAND EQUITY

• 16 yrs of successful operations of the parks has built significant brand equity

• Mr. Kochouseph and Mr. Arun have over 16 yrs and 12+ yrs of experience respectively in amusement park industry

• Won several awards, including ‘best tourism destination’ and ‘highest number and variety of innovative rides’

PROXIMITY TO CITY WITH AMPLE LAND AVAILABLE FOR FUTURE DEVELOPMENT

• Owns 93.17 acres in Kochi, 81.75 acres in Bangalore and 49.5 acres in Hyderabad, within which further expansion of existing parks can be undertaken

• All the three parks - Kochi, Bangalore and Hyderabad - are situated in the proximity of the main city.

IN-HOUSE MANUFACTURING FACILITYAT WONDERLA KOCHI

• Benefits from certain cost efficiencies and improves maintenance efficiency of rides

• Enables customisation and modification of rides purchased

• Manufactured / constructed 42* rides / attractions in-house

STRONG CUSTOMER INSIGHTS -CONSTANTLY INNOVATING NEW

ATTRACTIONS

• In-depth understanding of customer preference and needs helps while conceptualising new rides

• Won the IAAPI** excellence award for the highest number and variety of innovative rides four times

OUR FUTURE GROWTH STRATEGY

23

SCALABILITY – EXPANSION THROUGH SETTING NEW AMUSEMENT PARKS

• Currently in process of acquiring land in Chennai as well as identifying potential opportunities for setting up new parks in other key geographies

FOCUS ON IMPROVISING EXISTING PARKS TO IMPROVE FOOTFALLS

• Evaluate customer preferences to innovate attractions based on popular concepts• Develop the undeveloped land at existing parks to increase operational capacity

ENHANCED VISITOREXPERIENCE THROUGH PARKSINTEGRATED WITH RESORTS

• Wonderla Resort enables visitors to stay longer at the park and increases spend per head

• Enhance visitor experience at other parks by integrating them with resorts

EXPAND IN-HOUSE RIDE DESIGNAND MANUFACTURING CAPABILITIES

• Introduce new rides and attractions based on customer preferences and research done by visiting parks in other parts of the world

• Continue to invest in new manufacturing facilities at upcoming parks

EXPAND REVENUE STREAMS ANDINNOVATING MARKETING INITIATIVES TOSUPPLEMENT INCOME FROM ENTRY FEES

• Bolster revenues from entry tickets by offering value-added services• Introduce character and theme based attractions and promote this through marketing

initiatives , ad campaigns using media as well as tour operators

COMPANY OVERVIEW – GLOBAL RANKING AND RECOGNITION

Wonderla parks were ranked at #1 and #2 in India by Tripadvisor for 2015.

Wonderla parks were ranked at #7 and #9 in Asia by TripAdvisor for 2015, highest for any Indian theme parks.

Other Indian parks rated were: Adlabs Imagica, Mumbai (#18); Ramoji Film City, Hyderabad (#21); Essel World, Mumbai (#23).

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DISCLAIMER

This presentation and the following discussion may contain “forward looking statements” by Wonderla Holidays Limited

(“Wonderla” or the Company) that are not historical in nature. These forward looking statements, which may include statements

relating to future results of operations, financial condition, business prospects, plans and objectives, are based on the current

beliefs, assumptions, expectations, estimates, and projections of the management of Wonderla about the business, industry and

markets in which Wonderla operates.

These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other

factors, some of which are beyond Wonderla’s control and difficult to predict, that could cause actual results, performance or

achievements to differ materially from those in the forward looking statements. Such statements are not, and should not be

construed, as a representation as to future performance or achievements of Wonderla.

In particular, such statements should not be regarded as a projection of future performance of Wonderla. It should be noted that

the actual performance or achievements of Wonderla may vary significantly from such statements.

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THANK YOU

FOR FURTHER QUERIES

Mr. D. S. SachdevaWonderla Holidays Ltd.CEOEmail - [email protected]

Nilesh Dalvi / Rohan RegeDickenson Seagull IR Contact No : +91 9819289131/ 9167300142Email - [email protected]

[email protected]

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mailto:[email protected]



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