Investor Presentation

Transcription

1 Investor Presentation ICR XChange January 17, 2008

2 Forward-Looking Statements Some of the statements in this presentation constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward looking statements contained in this presentation involve risks and uncertainties, including those outlined under Risk Factors in the Proxy Statement relating to the acquisition as well as statements as to: availability of investment opportunities in hospitality-related assets; changes in our business strategy; our ability to find appropriate business combinations within given time constraints; availability of qualified personnel and their ability to find and evaluate prospective business combinations; changes in governmental regulations, tax rates and similar matters; and the degree and nature of competition in the hospitality, leisure, tourism, travel and related fields. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or are within our control. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict them all.

3 Indian Marketplace Dynamics

4 India Macroeconomic Outlook Population (BN) GDP $BN % CAGR $2,000 $1,500 $1,000 $500 $0 10.5% CAGR $1,520 $906 $ Source: World Bank; India Planning Commission.

5 Growing Middle Class and Growing Consumer Market Per Capita Income USD Annual Household Income, 000s INR 100% $1,500 $1,000 $500 $ % CAGR $797 $1,230 80% 60% 40% 20% $ % < ,000 1,000 + Source: McKinsey Global Institute.

6 Travel Demand Drives Airline Industry Growth Indian Passengers (mm) 15.6% CAGR Domestic International 35 new regional airports + 4 major metropolitan airports under construction $10 billion to be invested in airport infrastructure by 2010 Domestic passengers 64% of total by 2010 from 34% in 2000 Note: Years shown are 12 months ending March 31. Source: Center for Asia Pacific Aviation, Wall Street Research

7 Lodging Supply / Demand Imbalance Drives Opportunity 15% Demand CAGR Rooms 180, , , , ,000 80,000 60,000 40,000 20, % Supply CAGR 162, , , India = 120,000 rooms and population 1.1 billion China = 1 million rooms and population 1.2 billion U.S. = 4.4 million rooms and population 300 million Source: HVS International, Knight Frank Consulting

8 Economic Trends to Drive Restaurant Industry Growth Indian Food Service Transactions Transactions (mm) % CAGR Source: Euromonitor, Knight Frank Consulting. Square Ft. (mm) Retail Mall Growth % CAGR

9 Business Formation August 2006 July 2007 December 2007 IHC raises $103 million in blank check IPO IHC acquires SkyGourmet, Gordon House Hotels, and Mars Restaurants for $110 million HC and Navis invest an additional $28 million Hayground Cove 37% Navis 16% As of December Public Float 47%

10 Experienced Board of Directors Jason Ader Chairman Richard Foyston Deputy Chairman Scott LaPorta Nicholas Bloy Bruno Seghin Anthony Juliano Andrew Sasson Founder, President and CEO, Hayground Cove Asset Management Former Senior Managing Director, Bear Stearns lodging and hospitality industry research Founder Partner and Managing Director of Navis Capital Partners Worked in industries with focus on consumer goods, agribusiness, and financial services CEO, Global Consumer Acquisition Corp.; Managing Director, Hayground Cove Asset Management Former Levi Strauss North American Brand President, CFO of Park Place Entertainment, and Treasurer of Hilton and Host Marriott Founder Partner and Managing Director of Navis Capital Partners Former Head of BCG s main Southeast Asian office in Kuala Lumpur Director of Navis and brings more than 20 years of finance and investment management experience Executive Director, Dubai Investment Group, Global Real Estate and Hospitality Oversees $2 billion US real estate portfolio, including a $700 million hospitality portfolio Developing $500 million non-gaming hotel, part of MGM Mirage s $7 billion Project City Center Owns and operates The Light Group, a $100 million hospitality company in Las Vegas

11 India Hospitality: Business Divisions Second largest airline catering company in India Three facilities, three under construction Serving Kingfisher, Jet Airways, Indian Airlines Boutique properties 4-Star hotel brand Business and leisure Pipeline of new hotels Twelve brands Freestanding Food courts Bakeries

12 Strong Balance Sheet (Dec.) Total Assets: $163 million Total Cash: $20 million Total Debt: $25 million Total Equity: $138 million Source: Company Reports.

13 Consolidated Financial Performance Revenues EBITDA $MM $30 $25 $20 $15 $10 $5 $0 61% CAGR $28.0 $19.7 $ Mars / GHH SkyGourmet $MM $8 $6 $4 $2 $0 48% CAGR $6.6 $4.4 $ Mars / GHH SkyGourmet Fiscal Year Ending March. Source: Company Reports.

14 Warrants to Fund Future Growth 44 Million Warrants Strike price $5/warrant Call $8.50 $220 Million Embedded Growth Capital

15 Business Segment Performance Summary

16 SkyGourmet Catering

17 SkyGourmet Snapshot $MM $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 $19.0 Revenues EBITDA $8.9 $4.3 $3.4 $ $5.5 Major clients include Jet Airways, Kingfisher and India Airlines Three state-of-the-art facilities in Mumbai, Bangalore and Delhi Combined capacity to produce 26,000 meals per day (9mm meals / year) Fiscal Year Ending March. Source: Company Reports.

18 Soaring Service Capacity Meals per Day 250, ,000 52% CAGR 179, , , , , ,000 53,000 50,000 26, Capacity increase 178% in FY 2008 with new facilities in three key cities Target to become largest airline caterer in India by capacity in FY 2009 Planned 116% air capacity increase from key customers drives demand Fiscal Year Ending March. Source: Company Reports.

19 Geographic Expansion Opportunities Fully built out nationwide footprint with capacity for 76 million meals per year by 2012, from 9 million in 2007 Existing Under Construction Potential Expansion Amristar Delhi Jaipur Ahmedabad Mumbai Kolkata Hyderabad Goa Bangalore Chennai Calicut Source: Company Reports. Cochin Trivandrum

20 Gordon House Hotels Current Operations Acquired by Mars FY 2006 Two properties: Mumbai and Pune Mumbai property: 30 rooms, $135 ARR in 2007

21 Gordon House Hotels Growth Pipeline Bangalore - Management contract for 60 room hotel in April 2009 Noida - Option to acquire 41 room property Sahar, Mumbai - Option to acquire 110 room property Four acre plot adjacent to Delhi airport Targeting 25 properties by 2012

22 Mars Restaurants Casual Dining Gourmet Dining Fast Food Other Formats

23 Mars Restaurants Snapshot Attractive portfolio of well known restaurant brands Operator through management contracts and franchises throughout Western India Several brands adapted for retail mall food courts Synergies and cost controls by utilizing SkyGourmet kitchens

24 Exciting Growth Opportunities Indian Restaurant Industry Size ($MM) $14,000 18% CAGR $12,000 $816 $576 $10,000 $480 $8,000 $6,000 $4,000 $7,920 $9,360 $10,992 $2,000 $ Fragmented Branded / Chain Restaurant industry highly fragmented, only handful of regional branded competitors Brands positioned to participate in growth of mall and airport food courts Source: IMAGES F&R Research INDIA RETAIL REPORT 2007

25 Strategic Growth Summary Catering - Capitalize on Indian aviation industry boom. Reinvest free cash flow from catering into hotels and restaurants Restaurants - Expand brands into malls and other venues Hotels - 2 properties in development, 3 in negotiation Targeting 25 properties in 4 years

26 Unique India Investment Opportunity Experienced team with strong corporate governance Diversified, well known brands in growing consumer sectors Healthy balance sheet and access to capital Seize opportunity of exciting macro and microeconomic trends