Slide 1: Cover letter to stock exchanges: Analyst Presentation
DLF LIMITED DLF Gateway Towet R Block, DLF City Phase - lll, Gurugram - 122 OO2, Haryana (lndia) Tel. :+9'l -'1244769000 DtF^S, 30th January 2021 To, I To, The General Manager I The Vice-President Dept. of Corporate Services I National Stock Exchange of India Limited BSE Limited I Exchange Plaza, P.
Slide 2: DLF Limited Q3FY21 Results Presentation
Cyber Park Gurgaon DLF Limited Q3FY21 Results Presentation 1
Slide 3: Agenda
01 Overview DLF Limited: AGENDA 02 Business Update DCCDL: 03 Business Update 2
Slide 4: Overview: DLF Group
OVERVIEW : DLF Group Residential Offices Retail Other Business Business Apartments/Plotted/ Cyber City/Cyber Service & Facility Parks/IT SEZ Management/Hospitality Townships/Low-rise 75 150+ 330 msf+ 100 msf+ Track Years of experience in Real estate Area developed Deliveries since IPO record real es
Slide 5: ESG Update
ESG Update ❖ DLF Limited recognized as an index component of Dow Jones Sustainability Index (2020) in the Emerging markets category. ❖ Demonstrates DLF’s focus on Environmental, Social and Governance initiatives. Leadership position 100th Percentile DLF is the only real 93rd Percentile 18th out of 2
Slide 6: Key Recognitions
Key Recognitions ❑ World’s first organization to achieve “WELL Health & Safety Rating”, by IWBI at Group level. ❑ Across Offices, retail & residential complexes, DLF has the largest number of properties across the world to achieve this certification. ❑ The certification demonstrates focused approach
Slide 7: Business Update
Club Ultima, New Gurgaon DLF Limited Business Update 6
Slide 8: Outlook
Outlook ❑ The economy is exhibiting signs of recovery; Consumer sentiments showing consistent improvement over the past few months ❑ Consolidation & increase in market share for large & credible developers being witnessed Industry ❑ Initiatives by the Government & Central bank helping speedy revival
Slide 9: Strategy
Strategy Remain committed and confident in delivering our business goals Development Business: Rental Business: Liquidity: Land Bank: ❑ Scaling up launches of ❑ Continued focus on ❑ Core land bank to be ❑ Strong Liquidity position: New Products growth through better developed for sustainable Maintai
Slide 10: Development Potential
Development Potential Strategically located land bank at low carrying cost; will enable steady & sustainable growth Location Development Potential1 (in msf) Gurgaon 104 DLF 5/DLF City 24 New Gurgaon 81 Delhi Metropolitan Region 13 Chennai 12 Hyderabad 3 Chandigarh Tri-City Region 16 Kolkata 2 Mahara
Slide 11: Development Update: New Products
Development Update New Products; key tenets to the next growth cycle ❑ Scaling Up: ✓ ~ 35 msf of New Products planned in medium term ✓ Established locations with infrastructure in place ❑ Diversified Offerings: ✓ Products across multiple categories catering different target segments; ❖ Low-rise deve
Slide 12: Identified Pipeline of New Products – Launch Calendar
Development Update Identified Pipeline of New Products – Launch Calendar of 35 msf Area in msf ~ Project Sales Potential Project Size H2 FY21 H1 FY22 H2 FY 22 FY22-23 FY23-24 Beyond FY24 ( ~ in Rs crore) (~ in msf) DLF - GIC 12,000 - Residential JV, 8 - - 2.03 - - 6.0 15,000 Central Delhi DLF – Hine
Slide 13: Identified Pipeline of New Products
Identified Pipeline of New Products Diversified Offerings across geographies & segments 2% Geographical Diversity ( % of Total Area) 8% 5% 18% DLF 5 /DLF City 10% New Gurgaon Delhi NOIDA Chennai Goa Chandigarh Tri-city Segment Diversity 24% Product Diversity 34% (% of Total Area) (% of Total Area) 8
Slide 14: Highlights – Q3FY21
Highlights – Q3FY21 Pick up in New Sales continues Net Sales Possession Operating Booking Letters Issued Cashflow Positive Operating Rs 1,022 crore 462 units Cashflow : Rs 115 crore Pipeline Launch Net Debt New Products New Products Independent Floors 35 msf Rs 5,100 crore launched 13
Slide 15: Sales Booking : Q3FY21
Sales Booking : Q3FY21 Significant growth in New Sales - Rs 1,022 crore Y-o-Y comparison Q-o-Q comparison ₹ 1,022 cr ₹ 1,022 cr 20% 40% ₹ 853 cr ₹ 731 cr Q3FY20 Q3FY21 Q2FY21 Q3FY21 DLF 5 & DLF City, Gurgaon: National Devco: ❖ New Sales of Rs 750 crore. ❖ New Sales of Rs 267 crore ❖ Sold 11 units of
Slide 16: Sales Booking: Independent Floors
Sales Booking : Q3FY21 New Sales booking of ~ Rs 350 crore from Independent Floors Concept image; Not an actual image Independent Floors Product Details: Product Attributes: ✓ New Sales: ~ Rs 350 crore ✓ Established location -DLF City ✓ Total launch (Q3) 0.31 msf ✓ Supporting infrastructure already
Slide 17: Q3FY21 Results
Q3FY21 Results Strong Financial Performance during the Quarter ❑ Revenue stood at Rs 1,668 crore, reflecting a Y-o-Y growth of 9% ❑ EBITDA at Rs 624 crore, reflecting a Y-o-Y growth of 49%. EBITDA margins improved to 37% due to product mix (LY-27%) ❑ PBT at Rs 387 crore, reflecting a Y-o-Y growth of
Slide 18: Consolidated Profit & Loss Q3 FY21
Consolidated Profit & Loss Q3 FY21 Revenue growth of 9% Y-o-Y, Net Profit up by 7% Y-o-Y % Change % Change % Change Particular Q3 FY21 Q2 FY21 Q3FY21 - Vs Q3 FY20 Q3FY21 - Vs 9M FY21 9M FY20 9MFY21 - Vs Q2FY21 Q3FY20 9MFY20 I II III=(I-II) IV Income a) Revenue from operations 1,543 1,610 (4%) 1,342
Slide 19: Finance cost
Finance cost 95 bps reduction achieved YTD December in line with guidance ~ 95 bps 9.8% 9.7% 9.1% 8.9% Q4FY20 Q1FY21 Q2FY21 Q3FY21 ❑ Targeting further reduction of 30-40 bps ❑ Recent funding cost 8-8.25% ❑ Annualized savings of ~ Rs 75 - 80 crore 18
Slide 20: Cash Overheads
Cash Overheads Reduction on track inline with guidance Targeted reduction ~ 30- 35% Initiatives ₹ 619 cr ₹ 328 cr ❑ Zero based budgeting exercise done for the first time ❑ Significant cut in discretionary spends; ~ 50% achieved ❑ Tight control on cash flows ❑ Transforming the Organization: 9MFY20 9M
Slide 21: Residual EBITDA as on 31.12.2020
Residual EBITDA as on 31.12.2020 EBIDTA to be recognized from sales EBIDTA to be recognized from Inventory Project done till 31st Dec-20 as on 31st Dec-20 Camellias 2,715 2,755 DLF 5 180 20 New Gurgaon 285 70 National Devco 560 640 New Products (launched during Q3) 185 - TOTAL 3,925 3,485 Total EBIT
Slide 22: Completed Inventory
Completed Inventory Q3FY21 Till 31st Dec-20 Receivables/Completed Inventory Sales Sales Sales Sales Revenue Balance Value Total Area Area Project Booking Booking Booking Booking recognized till Receivable (in Rs (msf) (in msf) (in msf) (in Rs crore) (in msf) ( in Rs crore) date (in Rs crore) crore)
Slide 23: Consolidated Cash Flow – Q3FY21
Consolidated Cash Flow – Q3FY21 Particulars Q3FY21 Q2FY21 Inflow •Collection from Sales 645 541 •Rental Inflow (DLF Limited) 48 40 Sub-Total Inflow 693 581 Outflow •Construction (Net) 232 207 ▪ Q-o-Q improvement in collections •Government / Land Charges 31 16 •Overheads 93 125 ▪ Higher spend on Gove
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet As on December 31, 2020 As on March 31, 2020 Particulars ( Unaudited) ( Audited) ASSETS Non-current assets Property, plant and equipment 944 1,177 Right-of-use assets 304 319 Capital work-in-progress 88 89 Investment property 2,571 2,595 Goodwill 944 944 Other intangible a
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet As on December 31, 2020 As on March 31, 2020 Particulars ( Unaudited) ( Audited) EQUITY AND LIABILITIES Equity Equity share capital 495 495 Warrant - - Other equity 34,368 33,952 Equity attributable to owners of Holding Company 34,863 34,447 Non-controlling interests 20 18
Slide 26: Debt Update – Q3FY21
Debt Update – Q3FY21 Net Bank Debt Sources NCD, Particulars Q3FY21 Q2FY21 ₹ 1,000 cr ECB, ₹ 404 cr Gross opening debt (Net of IndAS adj.) 6,714 7,496 Banks, ₹ 3,452 cr HDFC/Others , ₹ 1,563 cr Less : Debt repaid during quarter (294) (1,152) Repayment Schedule < 1 Yr, ₹ 1,270 Add : New Borrowing duri
Slide 27: Debt Management
Debt Management Committed to bring down debt in medium term Particulars Amount (in Rs crore) Net Debt as on 31.12.2020 (5,100) Receivables (including New Products) 2,835 Construction Payables (including New Products) (1,100) Other Recoveries/Refunds 750 Residual Net Debt (2,615) Completed Inventory
Slide 28: Rental Portfolio Snapshot (DLF Limited) – Q3FY21
Rental Portfolio Snapshot (DLF Limited) – Q3FY21 Weighted Current/M Leasable Leased Vacant Average Rental arket WALE GAV1 Area Area Area % Leased Building rate Rentals Area (in msf) (in msf) (in msf) (in Rs psf) (in Rs psf) (months) (in Rs crore) DLF Center, Delhi 0.2 0.1 0.0 83% 367 400 65 1,044 DL
Slide 29: DCCDL Business Update
One Horizon Center, DLF 5, Gurgaon DCCDL Business Update 28
Slide 30: Acquisition - One Horizon Centre (OHC)
Acquisition - One Horizon Centre(OHC) DCCDL entered into definitive agreements to increase its ownership of OHC to 100%, Marquee Tenants: for a purchase consideration of ~ INR 780 Crore(subject to closing adjustments). Transaction Closing expected in February 2021 ❑ Gross Leasable Area: 0.8 msf; inc
Slide 31: REIT Update
REIT Update ❑ Favorable market indicators for REIT listing ✓ Enough liquidity in capital markets ✓ Low interest rate regime ✓ Efficient listing framework by the regulator ✓ Successful listing of 2 REITs ❑ Consultants have been appointed: ✓ Legal Advisor: Shardul Amarchand Mangaldas & Co ✓ Banker: Mo
Slide 32: Outlook & Key Updates
Outlook & Key Updates Office business steady; Retail picking up; Long term outlook remains positive • Collections continue to be robust, c. at ~ 98% levels • Gross leasing of 1.7 msf achieved; Vacancy contained within 10% Offices • Our office buildings are expected to have vastly better indoor air q
Slide 33: Portfolio Snapshot – Q3FY21
Portfolio Snapshot – Q3FY21 Weighted Average Current/Market Leasable Area Leased Area Vacant Area % Leased WALE GAV1 Building Rental rate Rentals Area (in msf) (in msf) (in msf) (in Rs psf) (in Rs psf) (months) (in Rs crore) Cyber City 10.2 9.2 1.0 90% 111 121 63 15,817 Cyber Sez 2.9 2.7 0.2 95% 84
Slide 34: Result Highlights – Q3FY21
Result Highlights – Q3FY21 Offices business resilient; Retail gaining momentum Rental Revenue Operating Cashflow Net Debt Rs 817 crore Rs 411 crore Rs 18,090 crore Operational Rating Gross Leasing Portfolio ICRA AA(-) 33.3 msf 1.7 msf (Stable) 33
Slide 35: Historical Performance: Office
Historical Performance : Office Particulars 9MFY21 FY20 FY19 FY18 Area(msf) - Completed 29.5 26.4 26.4 25.5 - Under 3.9 6.6 3.3 4.2 Construction Total area 33.3 33.1 29.7 29.7 Occupancy % - Completed 90% 95% 94% 94% New Leases (msf) 1.2 1.5 2.1 1.5 Re Leasing (msf)* 1.1 1.3 1.9 3.1 Re Leasing MTM (%
Slide 36: Re-leasing Potential
Re-leasing Potential Cyber City, Gurugram Cyber City, Chennai Total Annualized incremental Total Annualized incremental revenue1 ~ INR 64 crore revenue ~ INR 40 crore Rates in INR psf/month Rates in INR psf/month 134 85 121 128 76 80 92 90 95 56 58 60 FY 21 FY 22 FY 23 FY 21 FY 22 FY 23 Wt. Avg-Term
Slide 37: Mark-to-Market Potential
Mark-to-Market Potential Cyber City, Gurugram Cyber Sez, Gurugram Cyber City, Chennai 10% 22% 12% 102 121 84 76 111 68 Weighted Avg. Rental Market Rental Weighted Avg. Rental Market Rental Weighted Avg. Rental Market Rental Note: Weighted Average Rentals is the weighted base rental for leased area M
Slide 38: Office Portfolio - Tenant Mix
Office Portfolio - Tenant Mix Tenant % of Revenue Cognizant 5% IBM 3% KPMG 3% ▪ Well diversified & balanced portfolio Concentrix 2% ▪ Tenants Profile: Predominantly IT/ITES American Express 2% companies, financial/engineering BA Continuum 2% services, etc. TCS 2% ▪ Lower concentration risk as Top 10
Slide 39: Development Update
Development Update ~ Project Project Current Status Latest Update Size ▪ Block 2 & 3 under Downtown, ▪ Phase-I (~1.5 msf) under 11 msf construction Gurugram development ▪ Pre-leasing: ~0.5 msf Downtown, ▪ Phase I (~ 2 msf) under 6.8 msf ▪ Pre-leasing: 0.77 msf Chennai development Block-12, Cyber Cit
Slide 40: Q3FY21 Results
Q3FY21Results Strong Financial performance in the Quarters ❑ Revenue at Rs 1,122 crore, remained flat as compared to last year. ✓ Offices rental growth of 19% Y-o-Y driven by Cyber Park, Chennai Block 11 and renewals/escalations ✓ Retail revenues improving month-on-month, Y-o-Y drop of 38% due to pa
Slide 41: DCCDL Consolidated Financial Summary - Q3FY21
DCCDL Consolidated Financial Summary - Q3FY21 % change % change Particulars Q3FY21 Q2FY21 Q3FY20 Q-o-Q Y-o-Y Rental Income 817 718 14% 759 8% Office 722 667 8% 604 19% Retail 95 51 87% 155 (38%) Service & Other Operating Income 242 252 (4%) 319 (24%) Other Income 63 70 (10%) 53 20% Total Revenue 1,1
Slide 42: DCCDL Consolidated Cash Flow Abstract
DCCDL Consolidated Cash Flow Abstract Particulars Q3FY21 Q2FY21 Q1FY21 Operating Cash flow before Interest & tax 848 707 646 Interest Expense (435) (407) (401) Interest Income 47 58 18 Tax (net)* (49) (24) (65) Operating Cash flow after Interest & tax 411 334 198 Capex (267) (221) (81) Net Surplus/D
Slide 43: DCCDL Consolidated Balance Sheet Abstract
DCCDL Consolidated Balance Sheet Abstract Particulars As on 31.12.2020 As on 31.03.2020 Non-Current Assets 27,412 27,042 Current Assets 2,083 1,783 Total Assets 29,495 28,825 Equity 5,597 5,311 Non-current Liabilities 18,573 20,478 Current Liabilities 5,325 3,036 Total Liabilities 29,495 28,825 42
Slide 44: DCCDL Consolidated - Debt Update
DCCDL Consolidated - Debt Update Sources Particulars Q3FY21 Q2FY21 Banks, HDFC/Others, Gross opening debt (Net of IndAS adj.) 19,488 19,361 ₹ 12,054 cr ₹ 6,934 cr Less : Debt repaid during quarter (2,153) (172) NCD, ₹ 746 cr Repayment Schedule Add : New Borrowing during Qtr. 2,400 300 < 1 Yr, ₹ 882
Slide 45: DCCDL Consolidated – Interest rates
DCCDL Consolidated – Interest rates YTD Reduction of 115 bps inline with guidance ~ 115 bps 8.90% 8.64% 8.46% 7.75% Q4FY20 Q1FY21 Q2FY21 Q3FY21 ▪ Targeting to achieve 7.5% (exit FY21). Annualized savings of ~ Rs 270 - 280 crore ▪ Latest funding happening at 7% - 7.30% ▪ Debt levels to hold in the sh
Slide 46: Disclaimer
Disclaimer This presentation contains certain forward-looking statement concerning DLF’s future business prospects and business profitability, which are subject to a number of risks and uncertainties & the actual results could materially differ from those in such forward-looking statements. The risk
Slide 47: Thank You
Club Ultima, New Gurgaon THANK YOU 46