IHCL

STAKEHOLDER ENGAGEMENT

Enriching local communities

The hospitality industry, by its very nature, places us in locations of great natural and cultural wealth. This carries with it the responsibility to share with local communities the benefits of our operations and craft strategies to preserve these locations for the future wellbeing of all stakeholders and the society at large.

We are keenly aware of the economic, social and environmental impacts of each of our hotels, and the need to enhance positive outcomes while avoiding or mitigating negative externalities.

Our stakeholder engagement methods are customised to meet the needs of each group, as detailed in the table below. Our overall approach is to maintain an open-door policy for stakeholder interaction, in which concerned parties can easily access the appropriate representatives at individual hotels or within the corporate structure.

The Environmental, Social and Governance (ESG) - related stakeholder interests are represented to IHCL’s sustainability governance bodies through the Company’s representatives who directly interact with these stakeholders, such as hotel HR managers on behalf of employees, the investor relations department on behalf of shareholders, and sales & marketing teams on behalf of institutional customers, amongst others.

41,70,000 Total room nights*

50%
Dividend Proposed*

2,600 Suppliers engaged
in development initiatives^#

`8.54 Crores invested in communities through CSR initiatives* (Including group companies)

2 Heritage sites adopted and
maintained^#

30 Public locations^#

* For FY 2018-19 ^# As on April 30, 2019

STAKEHOLDER GROUP

Employees	Customers	Shareholders	Owners & Partners
WHY THEY ARE IMPORTANT
Our people are at the core of our business; their actions are based on our Values of Trust, Awareness and Joy. This is our biggest strength and differentiator	Satisfaction of our institutional and retail customers Customer loyalty and long-term relationships add to the distinctiveness of the brand	Support from our shareholders and investors is essential to finance the growth and development of our Company	Hotel owners are our partners in business operations and in sustainability Alignment of priorities with owners is critical for efficient operations and business performance
KEY PRIORITIES
Capability building, and skill development and enhancement Positive and enabling work environment Safety and security Employee wellbeing	Service quality Differentiation and product relevance Safety and privacy Ethical business practices Environmental impact	Financial performance and dividends Good governance Transparency Growth and expansion Operational and resource efficiencies	Business performance Health of assets Operational and resource efficiencies
HOW WE ENGAGE
Real-time engagement: VConnect Daily meetings and briefings Monthly town halls Timely internal communications Published training calendar Employee committees, union meetings	Direct feedback from guests during and after each experience Loyalty programme Real-time social media engagement Periodic market research	Quarterly investor calls, annual investor meets, AGM, public and media announcements Annual report and sustainability disclosures A dedicated investor relations department	Annual partner meet Ongoing communication from business development department
HOW WE DELIVER VALUE
`1,470.79 Crores of salaries and benefits (Consolidated) `7.9 Crores invested in employees’ learning and development World-class performance management and career development programme for employees	Focus on delivering superior customer experiences, consistently 41,70,000 room nights	50% Dividend Proposed Market capitalisation up 21% over the previous year	Revenues shared with asset owners through licence fees and other partnership models Emphasis on efficiency and maintenance of infrastructure

STAKEHOLDER GROUP

Suppliers	Local Community	Government & Regulators	Lenders
WHY THEY ARE IMPORTANT
Our suppliers provide materials and services that influence the quality of our customers’ experiences Supplier relationships ensure efficiency, quality, reliability and an ethical value chain	A positive relationship with local communities ensures our social licence to operate Furthering livelihoods, heritage and culture of regions we operate in are important for our destination's sustainability and our long-term business viability	We comply with the regulations governing our properties and engage with regulators frequently to drive important policies in the sector We partner the government in various policies and community improvement initiatives	A positive relationship with lenders enables us to raise growth capital in a timely and cost-effective manner We have a credit rating of AA+ by CARE and AA by ICRA
KEY PRIORITIES
Quality and availability of goods and services Resource efficiency Supplier development	Livelihood opportunities Environmental protection Community development Preservation of culture and heritage	Timely compliance with regulations Transparent and open operations Timely tax payments Support to various schemes of central and state governments	Timely repayment of both principal and interest amount Adherence to a healthy credit discipline Timely updates on financial performance of the Company
HOW WE ENGAGE
Supplier development initiatives Supplier feedback surveys throughout the year Annual suppliers’ meet Onboarding process and constantly open communication channels	CSR partnerships Minimisation of environmental footprint Community welfare programmes Participation in neighbourhood associations Annual volunteering calendar	Participation in government consultation programmes Representation through trade bodies	Meetings Ongoing communication and relationship Sharing regular updates on financial performance
HOW WE DELIVER VALUE
`7+ Crores worth of goods and services sourced through NGOs and inclusion efforts 2,600 suppliers engaged in supplier development initiatives 60% of suppliers are with IHCL for over four years	`8.54 Crores invested as CSR funds towards ongoing livelihoods & heritage-linked programmes 4,000+ livelihoods for under-served communities supported through our CSR programmes & partnerships More than 23% of energy sourced from renewable sources like wind and solar	Timely tax payment High compliances with regulations Support government initiatives	Maintaining high credit discipline Timely pre-payment of loans