Oberoi Realty Limited · NSE:OBEROIRLTY
Oberoi Realty — Investor Presentation (March 2014)
24 slides from Oberoi Realty's investor presentation, March 2014
Slide 1: Corporate Presentation March 2014
CORPORATE PRESENTATION March 2014
Slide 2: Disclaimer
Disclaimer This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase or sell any securities. This presentation should not be considered as a recommendation that any investor should subscribe for or purchase a
Slide 3: Oberoi Realty: Key Investment Highlights
Oberoi Realty: Key Investment Highlights 1 Established Premium Brand Positioning with “Destination Developments” Across Mumbai 2 Scalable Business Model With Proven Execution Capabilities 3 Strong Pipeline Of Ongoing / Planned Projects Across Segments 4 Prudent Financial Management 5 Cash Flow Stabi
Slide 4: Destination Developments Across Mumbai
Established Premium Brand Positioning with “Destination Developments” Across Mumbai Central Suburbs Mulund (W) Goregaon (E) Western Suburbs South Mumbai Andheri (W) Andheri (E) Leading real estate developer in India Focussed on Mumbai, a premium real estate market in India 5.5 mn sq ft of comp
Slide 5: Integrated Development for Better Pricing–Oberoi Garden City, Goregaon
Integrated Development for Better Pricing–Oberoi Garden City, Goregaon Office Space and Hospitality: Residential: Oberoi Woods & Oberoi Exquisite Commerz I, II & The Westin Mumbai–Garden City 598,200 sq ft (May-08) Estimated area –1,535,670 sq ft 805,606 sq ft (Apr-10)1 725,769 sq ft (Dec-13) Retail
Slide 6: Virtuous Cycle Delivering Superior Sales
Virtuous Cycle Delivering Superior Sales… Average Rate of Area Sold (INR / Sq ft) 1 20,940 Established Brand and Reputation 17,501 13,691 13,116 12,122 Contemporary Architecture, Strong Destination Project Execution Developments and Quality Construction FY10 FY11 FY12 FY13 * FY14 1 Average rate calc
Slide 7: Scalable Business Model
Scalable Business Model Land Regulatory Design & Sales & Identification Execution Maintenance Approvals Architecture Marketing & Purchase In-House Execution Outsourced Activities Land Identification and Purchase Design and Architecture Substantial land acquired between 2002–05, when land prices we
Slide 8: Proven Execution Capability Across Verticals
Proven Execution Capability Across Verticals Commerz I, Goregaon The Westin Mumbai–Garden City, Goregaon Oberoi Woods, Goregaon (Residential) (Office Space) (Hospitality) 598,200 sq. ft (May-08) 423,786 sq. ft (Mar-08) 1 381,820 sq. ft (Apr-10) Oberoi International School, Goregaon Oberoi Springs, A
Slide 9: Strong Pipeline of Ongoing / Planned Projects Across Segments
Strong Pipeline of Ongoing / Planned Projects Across Segments Ongoing Projects Planned Projects Hospitality 4.9% Social Infra 9.5% Office space 10.6% Hospitality 9.8% Retail Residential Residential 2.1% 84.5% 63.0% Office space 15.6% Total Estimated Area: 7.1 mn Sq ft Total Estimated Area: 10.4 mn S
Slide 10: A Well Defined Portfolio of Projects to be Monetized in the Near Term
A Well Defined Portfolio of Projects to be Monetized in the Near Term Projects Under the Sale Model (Residential) (Estimated area in sq ft) Project Location Ongoing Planned Total Area sold/booked for sale as of Mar 31, 2014 Oberoi Garden City Goregaon East 3,040,485 2,205,455 5,245,940 2,033,330 Obe
Slide 11: Oberoi Splendor, Andheri, Mumbai
Oberoi Splendor, Andheri, Mumbai Oberoi Splendor-I (Jul-11) Oberoi Splendor Grande (Sep-13) Oberoi Splendor Aarey Colony (no development zone) S.No Projects Estimated Area (mn sq ft) 2 Residential 1 Oberoi Splendor-I 1.3 2 Oberoi Splendor Grande 0.3 3 6 3 Oberoi Splendor-III 0.3 1 4 Oberoi Splendor-
Slide 12: Exotica, Mulund, Mumbai
Exotica, Mulund, Mumbai Oberoi Exotica S.No Projects Estimated Area (mn sq ft) Residential 2 1 Exotica – I 1.6 2 Exotica – II 1.6 1 Planned projects 18.81 acres of total area acquired from GlaxoSmithKline in 2005 Residential development in central Mumbai suburb Located on LBS Marg, a key road
Slide 13: Oasis Realty, Worli, Mumbai
Oasis Realty, Worli, Mumbai Oasis Realty S.No Projects Estimated Area (mn sq ft) Residential 1 Oasis Residential 1.5 2 Oasis Residential 2 0.2 Hospitality 3 Oasis Hotel 0.3 Ongoing projects Artist impression 3 2 Joint Venture to develop mixed-use project of ~2.1 mn sq ft in Worli Conveniently lo
Slide 14: I-Ven Realty Ltd. Worli, Mumbai
I-Ven Realty Ltd. Worli, Mumbai I-Ven Realty Ltd. Conveniently located on the arterial Annie Besant Road, Worli Estimated area 0.5 mn sq.ft. (Planned residential project) 13
Slide 15: Strong Financial Performance
Strong Financial Performance Revenue EBITDA 6,336 7,120 11,475 6,398 10,588 9,748 8,555 4,891 65.0% 4,918 8,055 62.1% 60.7% 60.4% 57.5% FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 Revenue (INR mn) EBITDA (INR mn) EBITDA Margin% PAT Amount Collected 9,036 8,871 4,582 5,172 5,048 7,755 56.9% 4,6
Slide 16: Prudent Financial Management
Prudent Financial Management 43,964 Significant opportunity to increase leverage in 41,621 order to tap growth opportunities through: 37,341 ‒ Prudent land acquisition strategy 33,476 ‒ Conservative deployment of cash to replenish land bank ‒ Raise debt on large equity base 18,639 14,643 12,934 10
Slide 17: Cash Flow Stability from Lease & Hospitality Properties
Cash Flow Stability from Lease & Hospitality Properties Lease & Hospitality Project Areas (Sq ft) Rental & Hospitality Income Project Completed Ongoing 3 Planned 3 2,736 Office space 1 11,49,555 1,661,650 0 32% Retail 552,893 0 0 2,354 2,187 Social Infrastructure 305,309 0 1,672,602 1,118 897 Total
Slide 18: Experienced Board of Directors
Experienced Board of Directors Vikas Oberoi On the Board since inception and has more than two decades of experience in the real estate sector Chairman and MD Formulation of corporate strategy and planning, overall execution and management of the Company Bindu Oberoi Member of the Board since
Slide 19: Stable and Experienced Management Team
Stable and Experienced Management Team Head, Architecture department; Joined in July 1999 Rajendra Chandorkar Over 18 years of experience Exec VP–Architecture Previously worked with Kalpataru Constructions Overseas Private Limited Head, Engineering department; Joined in April 2003 Raman Sapru Over 2
Slide 20: Prudent Corporate Governance and Processes
Prudent Corporate Governance and Processes Board Driven Decision Making System and Processes Independent directors on board since 2007 SOPs for all functions documented by a Big 4 Firm 50% of the Board of Directors are independent members Internal Audit conducted by another Big 4 Firm Key
Slide 21: Best-in-Class Partners
Best-in-Class Partners Strategic Relationship with Best-in-class Partners One of the world‟s most distinguished Adjudged as the world‟s best construction ) Samsung C&T architectural firm company International planning, design and consulting Largest construction company in India & also firm ranks 27t
Slide 22: Awards & Recognition
Awards & Recognition FY14 • Oberoi Mall received GOLD certification in LEED by US Green Building Council (USGBC) in the Existing Building – Operations and Maintenance • Oberoi Garden City awarded as the „Integrated Township of the Year‟ by Realty Plus Excellence Awards 2013 – West FY13 • Oberoi Exqu
Slide 23: The Way Forward
The Way Forward Continue to Focus on Large Mixed Use Established Premium Brand Positioning Developments in Mumbai with “Destination Developments” Across Mumbai Scalable Business Model with Proven Execution Capabilities Continue to Acquire Land Through Various Modes Strong Pipeline of Ongoing / Plann
Slide 24: Thank You
Thank You 23