Phoenix Mills Ltd. · NSE:PHOENIXLTD
Phoenix Mills — The Phoenix Mills — Shareholder Meeting (September 2019)
83 slides from Phoenix Mills's shareholder meeting presentation, Sep 24, 2019
Slide 1: Presentation made to Shareholders at the 114th AGM
tt.t.at THE PHOENIX ,p" MILLS LIMITED Corp. Office : Shree Laxmi Woolen Mills Estate, 2nd Floor, R.R. Hosiery, Off Dr. E. Moses Rd. Mahalaxmi, Mumbai - 400 011 Tel : (022) 3001 6600 Fax : (022) 3001 6601 CIN No.: L17100MH1905PLC000200 September 24, 2019 BSE Limited National Stock Exchange of India L
Slide 2: Performing with Practice and Precision
Performing with PRACTICE and PRECISION. 114TH AGM | 24TH SEPTEMBER 2019 1
Slide 3: Destination Consumption Hubs for the City
Destination Consumption Hubs for the City 2
Slide 4: High Street Phoenix & Palladium: The Best Performing Retail Asset
High Street Phoenix & Palladium (HSP) The Best Performing Retail Asset In India 3
Slide 5: High Street Phoenix & Palladium: The Best Performing Retail Asset
High Street Phoenix & Palladium (HSP) The Best Performing Retail Asset In India 4
Slide 6: High Street Phoenix & Palladium key metrics
High Street Phoenix & Palladium (HSP) 0.74 Million Sq. Ft. Total Leasable Area 93% FY19 Occupancy 270 No of Stores Rs 17,044 Million FY19 Consumption Rs 2,943 psf pm FY19 Trading Density The Best Performing Retail Asset In India 5
Slide 7: HSP consumption and rental income growth
High Street Phoenix & Palladium (HSP) Consumption 3.9x to Rs. 1,704 cr between FY10 - FY19 Retail Rental Income 4.1x to Rs. 343 cr between FY10 - FY19 Leasable Area for renewal 49% of GLA is up for renewal by FY22 6
Slide 8: Phoenix MarketCity Bangalore
Phoenix MarketCity Bangalore The Biggest & The Best Mall in Bangalore 7
Slide 9: Phoenix MarketCity Bangalore key metrics
Phoenix MarketCity Bangalore The Biggest & The Best Mall in Bangalore 1.0 Million Sq. Ft. Total Leasable Area 97% FY19 Occupancy 296 No of Stores Rs. 12,843 Million FY19 Consumption Rs 1,680 psf pm FY19 Trading Density 8
Slide 10: Bangalore consumption and rental income growth
Phoenix MarketCity Bangalore Consumption 3.6x to Rs. 1,284 cr between FY13 - FY19 Retail Rental Income 2.2x to Rs. 139 cr between FY13 - FY19 Leasable Area for renewal 69% of GLA is up for renewal by FY22 9
Slide 11: Phoenix MarketCity Pune
Phoenix MarketCity Pune The Biggest & The Best Mall in Pune 10
Slide 12: Phoenix MarketCity Pune key metrics
Phoenix MarketCity Pune The Biggest & The Best Mall in Pune 1.19 Million Sq. Ft. Total Leasable Area 98% FY19 Occupancy 352 No of Stores Rs. 12,207 Million FY19 Consumption Rs 1,334 psf pm FY19 Trading Density 11
Slide 13: Pune consumption and rental income growth
Phoenix MarketCity Pune Consumption 2.7x to Rs. 1,221 cr between FY13 - FY19 Retail Rental Income 2.5x to Rs. 159 cr between FY13 - FY19 Leasable Area for renewal 50% of GLA is up for renewal by FY22 12
Slide 14: Phoenix MarketCity Chennai
Phoenix MarketCity Chennai The Biggest & The Best Mall in Chennai 13
Slide 15: Phoenix MarketCity Chennai key metrics
Phoenix MarketCity Chennai The Biggest & The Best Mall in Chennai 1.0 Million Sq. Ft. Total Leasable Area 99% FY19 Occupancy 263 No of Stores Rs. 11,071 Million FY19 Consumption Rs. 1,505 psf pm FY19 Trading Density 14
Slide 16: Chennai consumption and rental income growth
Phoenix MarketCity Chennai Consumption 2.3x to Rs. 1,107 cr between FY14 - FY19 Retail Rental Income 1.8x to Rs. 153 cr between FY14 - FY19 Leasable Area for renewal 53% of GLA is up for renewal by FY22 15
Slide 17: Phoenix MarketCity Mumbai
Phoenix MarketCity Mumbai The Biggest – and the Fastest growing – Mall in Mumbai 16
Slide 18: Phoenix MarketCity Mumbai key metrics
Phoenix MarketCity Mumbai 1.14 Million Sq. Ft. Total Leasable Area 98% FY19 Occupancy 311 No of Stores Rs. 9,559 Million FY19 Consumption Rs. 1,174 psf pm FY19 Trading Density The Biggest – and the Fastest growing – Mall in Mumbai 17
Slide 19: Mumbai consumption and rental income growth
Phoenix MarketCity Mumbai Consumption 3.4x to Rs. 956 cr between FY13 - FY19 Retail Rental Income 1.6x to Rs. 122 cr between FY13 - FY19 Leasable Area for renewal 63% of GLA is up for renewal by FY22 18
Slide 20: The St. Regis, Mumbai
The St. Regis, Mumbai 80% FY19 Occupancy Rs. 11,776 FY19 ARR 395 No of Keys 10 Restaurants and Bars The Best Destination in Mumbai and Amongst the highest yielding hospitality assets in India 19
Slide 21: St. Regis Mumbai revenue and EBITDA growth
The St. Regis, Mumbai Revenue 3.5x to Rs. 304 cr between FY14 - FY19 EBITDA 10x to Rs. 123 cr between FY14 - FY19 The Best Destination in Mumbai and Amongst the highest yielding hospitality assets in India 20
Slide 22: Upcoming Developments
Upcoming Developments 21
Slide 23: Phoenix Palassio, Lucknow
Phoenix Palassio, Lucknow The Biggest Lifestyle District Consumption Hub in Lucknow Indicative Render 22
Slide 24: Phoenix Palassio, Lucknow - Site Pictures
Phoenix Palassio, Lucknow - Site Pictures 23
Slide 25: Phoenix Palassio, Lucknow - Site Pictures
Phoenix Palassio, Lucknow - Site Pictures Mall targeted to operationalize in H2FY20 24
Slide 26: Phoenix Palassio, Lucknow - Site Pictures
Phoenix Palassio, Lucknow - Site Pictures 25
Slide 27: Phoenix Palassio, Lucknow - Site Pictures
Phoenix Palassio, Lucknow - Site Pictures 26
Slide 28: Phoenix Palassio, Lucknow
Phoenix Palassio, Lucknow Mall Arcade View Inside View Indicative Render Indicative Render 27
Slide 29: Phoenix Market City Indore
Phoenix Market City Indore The biggest Retail Destination of Madhya Pradesh Indicative Render 28
Slide 30: Phoenix Market City Indore
Phoenix Market City Indore The biggest Retail Destination of Madhya Pradesh Indicative Render 29
Slide 31: Palladium Ahmedabad
Palladium Ahmedabad The Luxury mall of Gujarat Indicative Render 30
Slide 32: Palladium Ahmedabad
Palladium Ahmedabad The Luxury mall of Gujarat
Slide 33: Phoenix MarketCity Wakad, Pune
Phoenix MarketCity Wakad, Pune The New Epicentre for West Pune Indicative Render 32
Slide 34: Phoenix MarketCity Wakad, Pune
Phoenix MarketCity Wakad, Pune The New Epicentre for West Pune Indicative Render 33
Slide 35: Phoenix MarketCity Wakad, Pune
Phoenix MarketCity Wakad, Pune The New Epicentre for West Pune Indicative Render 34
Slide 36: Mall of Asia, Bangalore
Mall of Asia, Bangalore The Largest Retail led Mixed-use development in Bangalore Indicative Concept Render Architect – Callison35
Slide 37: Mall of Asia, Bangalore
Mall of Asia, Bangalore The Largest Retail led Mixed-use development in Bangalore Indicative Concept Render Architect – Callison36
Slide 38: Retail 2.0 – The Phoenix Experience
Retail 2.0 – The Phoenix Experience Creating a Wow Community FUTURE Experience Mobility & Evolving Brand Convenience Mix READY 37
Slide 39: Bringing Communities Together
Bringing Communities Together Guru Randhwa concert at PMC Mumbai 38
Slide 40: Bringing Communities Together
Bringing Communities Together Guru Randhwa concert at PMC Mumbai Sonu Nigam concert at PMC Mumbai 39
Slide 41: Bringing Communities Together
Bringing Communities Together Thakuddam Bridge at PMC Chennai 40
Slide 42: Bringing Communities Together
Bringing Communities Together Thakuddam Bridge Badshah at PMC at PMC Chennai Chennai 41
Slide 43: Creating a WOW Experience
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Slide 44: Ever evolving Guest Experience – High Street Phoenix
Ever evolving Guest Experience – High Street Phoenix 43
Slide 45: Ever evolving Guest Experience – PMC Mumbai
Ever evolving Guest Experience – PMC Mumbai 44
Slide 46: Ever evolving Guest Experience – PMC Pune
Ever evolving Guest Experience – PMC Pune
Slide 47: Ever evolving Guest Experience – PMC Chennai
Ever evolving Guest Experience – PMC Chennai
Slide 48: Evolving Brand Mix
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Slide 49: Best-in-class Brand Mix
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Slide 50: F&B Village dining experience
F&B Village - A Spectacular Dining experience with over 50 options at our exclusive F&B Village offering Global cuisines amidst an awe-inspiring landscape spread over 2 floors
Slide 51: Ice Skating Rink
Ice Skating Rink – Thrilling experience within the F&B village
Slide 52: 7 Star Multiplex
7 Star Multiplex 12 Audis offering Dolby ATMOS sound, spectacular life-like 4k resolution & Smartcrystal
Slide 53: Mobility & Convenience
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Slide 54: Phoenix Shuttle – Bringing the Mall to your Doorstep
Phoenix Shuttle – Bringing the Mall to your Doorstep
Slide 55: Multiple Entry and Car Drop Off Points into the Mall
Multiple Entry and Car Drop Off Points into the Mall Main Mall Entrance from Ground Floor MLCP with Mall access from 2nd & 3rd Floors Uber/Ola Access from 1st Floor Hotel entry into Mall from Ground and Main Arrival Level (2nd Floor) Easy access to F&B village from Main level drop off on 2
Slide 56: Optimizing Development Potential across Assets
Optimizing Development Potential across Assets 55
Slide 57: Mastering the concept of Mixed-Use development
Mastering the concept of Mixed-Use development Phoenix MarketCity, Centrium Phoenix Paragon Art Guild House Mumbai Plaza Asset Class GLA (msf) Retail 1.14 Commercial 1.50 Total 2.64 Thakuddam Bridge Badshah at PMC at PMC Chennai Chennai 56
Slide 58: Replicating the Mixed-Use model in Bangalore
Replicating the Successful Mixed-Use model in Bangalore Existing Proposed Mall Office Tower B Proposed Office Tower 3rd and 4th A Retail expansion Asset Class Current GLA Additional Total GLA (msf) GLA (msf) (msf) Retail 1.00 0.35 1.35 Commercial - 1.00 1.00 Total 1.00 1.35 2.35
Slide 59: Replicating the Mixed-Use model in Pune
Replicating the Successful Mixed-Use model in Pune Fountainhead Remarks Pune Leasable area: 0.17 msf - 0.16 msf (94%) area has Tower 1 been leased. 0.08 msf is currently operational as of June 2019 Leasable area: 0.22 msf. Construction completed upto Tower 2 10th floor of this 16 floor tower Leasabl
Slide 60: Replicating the Mixed-Use model in Chennai
Replicating the Successful Mixed-Use model in Chennai 0.42 msf of offices on top of Palladium Chennai 59
Slide 61: The Biggest unlocking of Value at HSP
The Biggest unlocking of Value at HSP Potential to add GLA of >1.5 msf GLA in Lower Parel Balance The St. Existing Developme Regis Total Area Area nt Potential Hotel (msf) (msf) in FSI Terms (msf) Retail 0.74 >0.50 >1.24 Palladium Commercial 0.14 >1.00 >1.64 Hotel 0.66 - 0.66 Total 1.54 >1.50 >2.54
Slide 62: What sets us apart?
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Slide 63: Realistic Vision, Focused Execution
Realistic Vision, Focused Execution Superior Asset Operation Robust Execution Bandwidth Dominant Consumption Hubs Selective Opportunities Prudent Capital Structure Value Creation 62
Slide 64: Selective Opportunities
Realistic Vision, Focused Execution Superior Asset Operation Robust Execution Bandwidth Dominant Consumption Hubs Selective Opportunities Prudent Capital Structure Value Creation Focus on city-centric land parcels surrounded by dense residential and commercial catchments Target under-served reta
Slide 65: Robust Execution Bandwidth
Realistic Vision, Focused Execution Superior Asset Operation Robust Execution Bandwidth Dominant Consumption Hubs Selective Opportunities Prudent Capital Structure Value Creation • Superior architecture benchmarked to the best global standards • Partnering with world class architects, Grade A contra
Slide 66: Superior Asset Operation
Realistic Vision, Focused Execution Superior Asset Operation Robust Execution Bandwidth Dominant Consumption Hubs Selective Opportunities Prudent Capital Structure Value Creation • Seamless and superior Mall operations to deliver a five-star guest experience • Focus on driving consumption at each re
Slide 67: Dominant Consumption Hubs
Realistic Vision, Focused Execution Superior Asset Operation Robust Execution Bandwidth Dominant Consumption Hubs Selective Opportunities Prudent Capital Structure Value Creation • Retail centres which are typically the largest in the city • Best in class brand mix • Catering to evolving consumer pr
Slide 68: Prudent Capital Structure
Realistic Vision, Focused Execution Superior Asset Operation Robust Execution Bandwidth Dominant Consumption Hubs Selective Opportunities Prudent Capital Structure Value Creation • Adequate cash flow generation and flexible equity raising through market cycles • Addition of rent-generating annuity o
Slide 69: Value Creation
Realistic Vision, Focused Execution Superior Asset Operation Robust Execution Bandwidth Dominant Consumption Hubs Selective Opportunities Prudent Capital Structure Value Creation • Unlocking full development potential of land over phases spread over years • Significant re-rating of land value upon a
Slide 70: Our Portfolio
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Slide 71: PML Growth Story
PML Growth Story Segments FY 19 FY 24 Retail 5.93 msf 2x 11.68 msf Commercial 1.32 msf 4x 5.28 msf Hospitality 593 keys 593 keys Residential 3.20 msf 3.20 msf 70
Slide 72: Beyond 2024 – Target Cities
Beyond 2024 – Target Cities Our endeavour is to add 1 msf of Retail area every year post 2024 in key catchments in following cities Kolkata Chandigarh Gurgaon Hyderabad Chennai Mumbai / Navi Mumbai
Slide 73: Our Profitability Growth Drivers
Our Profitability Growth Drivers Sustained EBITDA growth in operational assets Addition of new, rent generating office assets to boost annuity income Addition of 1 million sft of new retail centres each year between FY20 to FY24 Residential business to generate significant surplus cash flows
Slide 74: Cash Flow Impact of Recently Announced Tax Cuts
Cash Flow Impact of Recently Announced Tax Cuts Lower Effective Tax on Existing Assets Tax Shield on Carry Forward Losses No Tax Outflow on Newly Commissioned Assets till they turn Profitable Higher Profits, Cash Flows 73
Slide 75: Sustainability Initiatives
Sustainability Initiatives 74
Slide 76: We care for the world we live in: Check Dams
We care for the world we live in PML’s Promise Inspired by Hon. Prime Minister of India’s call for Water Conservation, PML along with Aakar Charitable Trust is committed to construct 150 Check dams in FY20 The yeoman work of constructing Check Dams done by Aakar Charitable Trust under the leadership
Slide 77: Check Dams Built in FY19
We care for the world we live in 33 Check Dams Built in FY19 142 Cr Litres of Water Saved PML supports extensive work in building check dams helping improve the quality of life of thousands of villagers in Rajasthan and other states in association with Aakar Charitable Trust 76
Slide 78: Reduced CO2 by use of Solar Power
We care for the world we live in • Reduced 17,415 tonnes of CO2 equivalents by use of Solar Power • Equivalent to carbon sequestered by 20,500 acres of forest in a year 77
Slide 79: Value Creation for all Stakeholders
Value Creation for all Stakeholders 78
Slide 80: Strong Operational Cash Flow Generation
Strong Operational Cash Flow Generation Growth of Operational Free Cash flow to Growth in EBITDA to Rs. 991 cr Rs. 525 cr between FY13 – FY19 between FY13 & FY19 79
Slide 81: Share Price Performance and Dividend Pay-out
Share Price Performance and Dividend Pay-out PML Share Price Performance Dividend Payout 800 729.8 10 year CAGR 14.9% 700 3 year CAGR 11% 3.0 2.6 600 2.4 2.2 500 400 300 182.0 200 100 0 Sep-09 Jun-10 Feb-11 Nov-11 Jul-12 Apr-13 Dec-13 Sep-14 Jun-15 Feb-16 Nov-16 Jul-17 Apr-18 Dec-18 Sep-19 FY16 FY17
Slide 82: PML Share price performance vis a vis Indices
PML Share price performance vis a vis Indices 770.0 Company Performance PML 720.0 The Phoenix Mills 19.6% 670.0 S&P BSE Sensex 17.5% S&P BSE Realty (9.0)% 620.0 SENSEX Rebased to PML Price 570.0 520.0 470.0 BSE REALTY 420.0 370.0 PML has outperformed S&P BSE Sensex and BSE Realty Indices from Mar 20
Slide 83: Thank You
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The Phoenix Mills — Shareholder Meeting (September 2019) on 6ix