Phoenix Mills Ltd. · NSE:PHOENIXLTD
Phoenix Mills — The Phoenix Mills — Q3 FY20 Earnings Presentation
72 slides from Phoenix Mills's earnings presentation, Feb 10, 2020
Slide 1: Filing letter to stock exchanges
� ..� THE PHOENIX 9" 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 February 10, 2020 BSE Limited National Stock Exchange of India Limit
Slide 2: Investor Presentation Q3 & 9M FY20 Results
Investor Presentation Q3 & 9M FY20 Results High Street Phoenix, Mumbai Highs Street Phoenix, Mumbai
Slide 3: Our Annuity Income-Generating Portfolio
Our Annuity Income-Generating Portfolio OPERATIONAL PORTFOLIO PORTFOLIO UNDER DEVELOPMENT MALL PORTFOLIO MALL PORTFOLIO (4.90 MSF) (5.96 MSF) HSP & Palladium Mumbai 0.77 Phoenix MarketCity Pune 1.1 Phoenix MarketCity Chennai 1.00 Wakad Palladium Chennai 0.22 Phoenix MarketCity Bengaluru 1.2 Hebbal P
Slide 4: Our Portfolio under Development & Planning
Our Portfolio under Development & Planning Balance PROJECT NAME Retail Office Development Total Potential Retail Portfolio Under-development 4.90 - 4.90 Fountainhead Towers 2-3, Pune - 0.55 - 0.55 Office Portfolio Commercial offices on top of Palladium Under- - 0.42 - 0.42 Chennai development Total
Slide 5: Our Residential Development Portfolio
Our Residential Development Portfolio Kessaku RESIDENTIAL PORTFOLIO One Bangalore West Area Total Area Balance Project launched (msf) area (msf) (msf) Launched in July 2019 One Bangalore 0.24 0.24 - West - Towers 7 Under Planning One Bangalore 0.48 - 0.48 West - Towers 8-9 Total area Project (msf) C
Slide 6: Presence Across Key Gateway Cities in India
Presence Across Key Gateway Cities in India 5
Slide 7: PML Growth Story
PML Growth Story Segments FY 20 FY 24 Retail 5.96 msf 2x 11.71 msf Commercial 1.28 msf 4x 5.44 msf Hospitality 593 keys 593 keys Residential 3.20 msf 3.20 msf 6
Slide 8: Financial Results
Financial Results Business Performance Annexure Palladium, Mumbai
Slide 9: Q3 & 9M FY20 Standalone P&L
Q3 & 9M FY20 Standalone P&L Q3 Q3 YoY % 9M 9M YoY % (Rs. mn) FY20 FY19 Change FY20 FY19 Change Income from operations 1,199 1,121 7% 3,462 3,300 5% 9M FY20 EBITDA Rs. 2,028 mn EBITDA 663 663 2,028 2,025 EBITDA Margin (%) 55% 59% 59% 61% 9M FY20 PAT Profit Before Tax and 413 392 5% 1,530 1,620 -6% ex
Slide 10: Q3 & 9M FY20 Consolidated P&L
Q3 & 9M FY20 Consolidated P&L YoY % 9M 9M YoY % (Rs. mn) Q3 FY20 Q3 FY19 Change FY20 FY19 Change Income from 5,118 4,404 16% 15,419 12,583 23% operations Retail 3,218 2,899 11% 9,288 8,643 7% 9M FY20 EBITDA Residential 481 199 142% 2,664 723 269% 24% Rs. 7,628 mn Commercial 334 327 2% 848 637 33% Ho
Slide 11: Business-wise Consolidated P&L breakup – Q3 FY20
Business-wise Consolidated P&L breakup – Q3 FY20 Q3 FY20 Core Portfolio PAT Rs. 833 Q3 Q3 Q3 FY20 mn Particulars FY20 FY19 % change FY19 Consolidated Core Portfolio PAT (Rs. mn) 833 566 47% 3,222 PAT Residential PAT (Rs. mn) 86 142 -39% 988 Rs.919 mn Q3 FY20 Consol PAT (Rs. mn) 919 708 30% 4,210 Res
Slide 12: Business-wise Consolidated P&L breakup – 9M FY20
Business-wise Consolidated P&L breakup – 9M FY20 9M FY20 Core Portfolio PAT Rs. 2,349 9M 9M 9M FY20 mn Particulars FY20 FY19 % change FY19 Consolidated Core Portfolio PAT (Rs. mn) 2,349 1,762 33% 3,222 PAT Residential PAT (Rs. mn) 531 164 224% 988 Rs.2,880 mn 9M FY20 Consol PAT (Rs. mn) 2,880 1,926
Slide 13: Debt Profile as on 31st Dec 2019
Debt Profile as on 31st Dec 2019 ➢ Average cost of borrowing down to 9.29% from Status Asset Class Amount (Rs. mn) 9.41% in Q2FY20 Retail 32,694 Hospitality 5,142 ➢ 87% of Debt is long-term. Debt on the operational Operational Commercial 2,547 portfolio is primarily lease-rental discounting for Resi
Slide 14: Stable Debt across Operating Assets
Stable Debt across Operating Assets Debt on Operational portfolio (Rs. mn) 42,480 41,827 41,768 41,314 41,256 41,490 41,162 40,121 • Debt on Operational portfolio remains steady FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 • Construction Finance on under development assets (Wakad, Hebbal, D
Slide 15: Effective Cost of Debt & Maturity Profile
Effective Cost of Debt & Maturity Profile Effective cost of debt (%) Debt Maturity Profile^(Rs. mn) 13.0% 12.3% 40,274 12.5% 12.0% 11.8% 11.5% 11.0% 11.0% 10.5% 10.2% 10.0% 9.38% 9.36% 9.29% 9.5% 8.94% 9.0% 3,546 4,579 4,757 8.5% 8.0% Jun-19 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 FY20 FY21
Slide 16: Business Performance - Retail
Financial Results Business Performance - Retail Annexure Phoenix Marketcity Pune
Slide 17: Q3 FY20 – Retail Key Highlights
Q3 FY20 – Retail Key Highlights 5,195 Consumption (Rs. mn) Total Consumption – Rs 20,672 mn, up 10% yoy 4,019 3,747 2,928 3,309 890 586 HSP & Palladium PMC Bangalore PMC Pune PMC Mumbai PMC Chennai & Phoenix United Phoenix United Palladium Lucknow Bareilly 9% 14% 10% 10% 7% 11% 3,620 Trading Density
Slide 18: Q3 FY20 – Retail Key Highlights
Q3 FY20 – Retail Key Highlights 946 Total Rental Income – Rs.2,777 mn, up 8% yoy Rental Income (Rs. mn) 400 458 482 339 90 62 HSP & Palladium PMC Bengaluru PMC Pune PMC Mumbai PMC Chennai & Phoenix United Phoenix United Palladium Lucknow Bareilly 7% 11% 10% 8% 15% 13% Asset EBITDA (Rs. mn) Total EBI
Slide 19: 9M FY20 – Retail Key Highlights
9M FY20 – Retail Key Highlights Consumption (Rs. mn) Total Consumption – Rs. 55,435 mn, up 5% yoy 13,439 10,588 10,221 9,282 7,894 2,432 1,578 HSP & Palladium PMC Bengaluru PMC Pune PMC Mumbai PMC Chennai & Phoenix United Phoenix United Palladium Lucknow Bareilly 3% 8% 9% 10% 4% 9% 3,154 Trading Den
Slide 20: 9M FY20 – Retail Key Highlights
9M FY20 – Retail Key Highlights 2,706 Rental Income (Rs. mn) Total Rental Income – Rs. 7,972 mn, up 7% yoy 1,317 1,424 1,119 987 246 173 HSP & Palladium PMC Bengaluru PMC Pune PMC Mumbai PMC Chennai & Phoenix United Phoenix United Palladium Lucknow Bareilly 6% 7% 11% 8% 12% 10% 2,354 Asset EBITDA (R
Slide 21: Stable Performance at High Street Phoenix
PML owned Assets incl. High Street Phoenix & Palladium Stable Performance at High Street Phoenix Up 9% yoy Consumption (Rs. mn) 4,755 5,195 4,057 4,251 4,025 4,013 4,228 4,017 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Rental Income (Rs. mn) Up 7% yoy 946 886 868 881 879 839 839
Slide 22: PML owned Assets incl. High Street Phoenix & Palladium
PML owned Assets incl. High Street Phoenix & Palladium % yoy % yoy Q3 FY20 Q3 FY19 9M FY20 9M FY19 growth growth Rental Income (Rs. mn) ^ 946 886 7% 2,706 2,564 6% Recoveries 253 236 7% 757 735 3% (CAM and other) (Rs. mn) Total Income (Rs. mn) 1,199 1,121 7% 3,462 3,300 5% Asset EBITDA (Rs. mn) 807
Slide 23: New Store Launches at High Street Phoenix & Palladium
New Store Launches at High Street Phoenix & Palladium 22
Slide 24: New Store Launches at High Street Phoenix & Palladium
New Store Launches at High Street Phoenix & Palladium 23
Slide 25: New Store Launches at High Street Phoenix & Palladium
New Store Launches at High Street Phoenix & Palladium 24
Slide 26: New Store Launches at High Street Phoenix & Palladium
New Store Launches at High Street Phoenix & Palladium 25
Slide 27: New Store Launches at High Street Phoenix & Palladium
New Store Launches at High Street Phoenix & Palladium 26
Slide 28: PML owned Assets Income Split – Commercial & Retail
PML owned Assets Income Split – Commercial & Retail PML (Standalone entity) owns the following assets: • Retail – High Street Phoenix & Palladium: Leasable area of 0.77 msf • Phoenix House: Leasable area of 0.10 msf • Centrium: Leasable area of 0.12 msf • Art Guild House: Leasable area of 0.16 msf P
Slide 29: Phoenix MarketCity Bangalore
Phoenix MarketCity Bangalore Strong consumption drives Rental Income and EBITDA growth Up 14% yoy Consumption (Rs. mn) 3,514 4,019 2,859 3,100 3,183 3,048 3,364 3,205 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Rental Income (Rs. mn) Up 11% yoy 361 347 359 360 400 322 339 345 Q4
Slide 30: Phoenix MarketCity Bangalore
Phoenix MarketCity Bangalore % yoy % yoy Q3 FY20 Q3 FY19 9M FY20 9M FY19 growth growth Rental Income (Rs. mn) 400 361 11% 1,119 1,046 7% Recoveries 179 167 7% 546 512 7% (CAM and other) (Rs. mn) Total Income (Rs. mn) 579 527 10% 1,665 1,557 7% Asset EBITDA^ (Rs. mn) 402 372 8% 1,160 1,080 7% EBIDTA
Slide 31: Phoenix MarketCity Pune
Phoenix MarketCity Pune Strong rental Income growth contributed to superior EBITDA growth Up 10% yoy Consumption (Rs. mn) 3,405 3,331 3,747 3,045 2,937 2,820 3,144 2,616 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Rental Income (Rs. mn) Up 10% yoy 416 406 432 427 458 360 380 387
Slide 32: Phoenix MarketCity Pune
Phoenix MarketCity Pune % yoy % yoy Q3 FY20 Q3 FY19 9M FY20 9M FY19 growth growth Rental Income (Rs. mn) ^ 458 416 10% 1,317 1,183 11% Recoveries 198 192 3% 605 600 1% (CAM and other) (Rs. mn) Total Income (Rs. mn) 656 608 8% 1,921 1,783 8% Asset EBITDA (Rs. mn) 445 400 11% 1,321 1,178 12% EBIDTA Ma
Slide 33: Phoenix MarketCity Mumbai
Phoenix MarketCity Mumbai PMC Mumbai continues strong performance, establishing itself as a premium destination mall Up 10% yoy Consumption (Rs. mn) 2,654 2,589 2,928 1,970 2,266 2,283 2,356 2,378 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Rental Income (Rs. mn) Up 8% yoy 300 31
Slide 34: Phoenix MarketCity Mumbai
Phoenix MarketCity Mumbai % yoy % yoy Q3 FY20 Q3 FY19 9M FY20 9M FY19 growth growth Rental Income (Rs. mn) ^ 339 314 8% 987 911 8% Recoveries 181 175 3% 538 500 8% (CAM and other) (Rs. mn) Total Income (Rs. mn) 519 489 6% 1,525 1,412 8% Asset EBITDA (Rs. mn) 332 310 7% 997 888 12% EBIDTA Margin 98%
Slide 35: Phoenix MarketCity Chennai & Palladium
Phoenix MarketCity Chennai & Palladium Steady Rental Income & EBITDA growth Up 4% yoy Consumption (Rs. mn) 3,065 3,137 3,195 2,960 3,013 3,309 2,609 2,710 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Rental Income (Rs. mn) Up 5% yoy 441 439 458 438 467 475 482 384 Q4 FY18 Q1 FY19
Slide 36: Phoenix MarketCity Chennai & Palladium
Phoenix MarketCity Chennai & Palladium % yoy % yoy Q3 FY20 Q3 FY19 9M FY20 9M FY19 growth growth Rental Income (Rs. mn) ^ 482 458 5% 1,424 1,338 6% Recoveries 284 306 -7% 739 763 -3% (CAM and other) (Rs. mn) Total Income (Rs. mn) 766 765 2,163 2,101 3% Asset EBITDA (Rs. mn) 510 472 8% 1,447 1,380 5%
Slide 37: Renewal Schedule (% of total leasable area)
Renewal Schedule (% of total leasable area) 49% of leasable area for renewal over next 3 years 63% of leasable area for renewal over next 3 years HSP & Palladium PMC Mumbai 21% 34% 16% 12% 24% 5% FY20 FY21 FY22 FY20 FY21 FY22 69% of leasable area for renewal over next 3 years 50% of leasable area fo
Slide 38: Under-construction asset update
Under-construction asset update ➢ We have closed 5 acquisitions – land parcels in Pune, Bangalore and Ahmedabad, under-construction retail assets in Lucknow and Indore – between Aug 2017 & July 2018 ➢ These acquisitions take our under-development retail leasable portfolio to c.4.9 million sft ➢ We h
Slide 39: Phoenix Palassio, Lucknow
Phoenix Palassio, Lucknow The Biggest Lifestyle District Consumption Hub in Lucknow Indicative Render 38
Slide 40: Phoenix Palassio Lucknow – Site Pictures
Phoenix Palassio Lucknow – Site Pictures 39
Slide 41: Phoenix Palassio Lucknow – Site Pictures
Phoenix Palassio Lucknow – Site Pictures 40
Slide 42: Phoenix Palassio Lucknow – Site Pictures
Phoenix Palassio Lucknow – Site Pictures 41
Slide 43: Phoenix Palassio Lucknow – Site Pictures
Phoenix Palassio Lucknow – Site Pictures 42
Slide 44: Phoenix Palassio Lucknow – Site Pictures
Phoenix Palassio Lucknow – Site Pictures 43
Slide 45: Phoenix Palassio Lucknow – Site Pictures
Phoenix Palassio Lucknow – Site Pictures 44
Slide 46: Palladium Ahmedabad
Palladium Ahmedabad The Luxury mall of Gujarat Indicative Render 45
Slide 47: Palladium, Ahmedabad – Site Pictures
Palladium, Ahmedabad – Site Pictures 46
Slide 48: Phoenix MarketCity Wakad, Pune
Phoenix MarketCity Wakad, Pune The New Epicentre for West Pune Indicative Render 47
Slide 49: Phoenix MarketCity Wakad, Pune – Site Pictures
Phoenix MarketCity Wakad, Pune – Site Pictures 48
Slide 50: Mall of Asia, Bangalore
Mall of Asia, Bangalore The Largest Retail led Mixed-use development in Indicative Render Bangalore Concept Architect – Callison49
Slide 51: Mall of Asia, Bengaluru – Site Pictures
Mall of Asia, Bengaluru – Site Pictures 50
Slide 52: Phoenix MarketCity Indore
Phoenix MarketCity Indore The biggest Retail Destination of Madhya Pradesh Indicative Render 51
Slide 53: Phoenix MarketCity Indore
Phoenix MarketCity Indore Indicative Render Indicative Render Indicative Render 52
Slide 54: Phoenix MarketCity Indore – Site Pictures
Phoenix MarketCity Indore – Site Pictures 53
Slide 55: Business Performance - Commercial
Financial Results Business Performance - Commercial Annexure Art Guild House
Slide 56: Our Annuity Income Generating Commercial Portfolio
Our Annuity Income Generating Commercial Portfolio OPERATIONAL OFFICE PORTFOLIO (1.76 MSF) OFFICE PORTFOLIO UNDER DEVELOPMENT (0.96 MSF) Project Total Area Area Sold Net Leasable Area Leased OFFICE PORTFOLIO ( 0.96 MSF) Name (msf) (msf) Area (msf) (msf) Phoenix House 0.10 - 0.10 0.07 Fountainhead –
Slide 57: Operational Update – Art Guild House
Operational Update – Art Guild House Net Area Average Total Area Area Sold Leasable Leased Rate (msf) (msf) Area (msf) (msf) (Rs./sq.ft) Art Guild @ @ 0.80 0.20 0.60 0.55 101 House Q3 FY20 9M FY20 FY19 FY18 Total Income 164 468 582 396 (Rs. mn) EBITDA 79 246 335 157 (Rs. mn) % of Total Income 48% 53
Slide 58: Operational Update – Phoenix Paragon Plaza
Operational Update – Phoenix Paragon Plaza Net Area Average Total Area Area Sold Leasable Leased Rate (msf) (msf) Area (msf) (msf) (Rs./sq.ft) Phoenix 0.41 0.12 0.29 0.21 117 Paragon Plaza Q3 FY20 9M FY20 FY19 FY18 Total Income 118 261 358 219 (Rs. mn) EBITDA (Rs. mn) 44 129 213 91 % of Total Income
Slide 59: Operational Update – Fountainhead Towers 1, 2 & 3
Operational Update – Fountainhead Towers 1,2 & 3 Net Area Average Total Area Area Sold Leasable Leased Rate (msf) (msf) Area (msf) (msf) (Rs./sq.ft) Fountainhead – 0.17 0.00 0.17 0.16 74 Tower 1 Fountainhead – Tower 2 Part of Commercial Portfolio under Development 0.54 – Tower 2 & Tower are currentl
Slide 60: Renewal Schedule (% of total leasable area)
Renewal Schedule (% of total leasable area) 78% of leasable area for renewal over next 4 years 42% 35% Art Guild House 0% 1% FY20 FY21 FY22 FY23 39% of leasable area for renewal over next 4 years Paragon Plaza Phoenix 12% 9% 4% 7% FY20 FY21 FY22 FY23 59
Slide 61: Commercial asset update
Commercial asset update Fountainhead Pune Remarks Tower 1 Leasable area: 0.17 msf. 0.16 msf (95%) area has been leased and operational Tower 2 Leasable area: 0.22 msf. Construction completed for all 16 floors Tower 3 Leasable area: 0.35 msf. Construction commenced in Q1FY20 and completed for all 15
Slide 62: Business Performance - Hotels
Financial Results Business Performance - Hotels Annexure XXO, The St. Regis, Mumbai
Slide 63: The St. Regis, Mumbai
The St. Regis, Mumbai % yoy % yoy Q3 FY20 Q3 FY19 9M FY20 9M FY19 growth growth Revenue from 422 368 15% 1,044 968 8% Rooms (Rs. mn) Revenue from F&B and Banqueting 468 397 17% 1,093 986 11% (Rs. mn) Other Operating 74 74 0% 198 213 -7% Income (Rs. mn) Total Income 962 839 15% 2,335 2,167 8% (Rs. mn
Slide 64: Courtyard by Marriott, Agra
Courtyard by Marriott, Agra Q3 FY20 Q3 FY19 9M FY20 9M FY19 Revenue from Rooms (Rs. 66 67 138 129 mn) Revenue from F&B and 53 49 115 108 Banqueting (Rs. mn) Other Operating Income 6 2 14 5 (Rs.mn) Total Income (Rs. mn) 124 118 266 242 Occupancy (%) 77% 79% 67% 66% ARR (Rs.) 4,919 4,646 3,861 3,876 6
Slide 65: Business Performance - Residential
Financial Results Business Performance - Residential Annexure Actual Site Picture Kessaku, Bengaluru
Slide 66: Operational Update – Residential Portfolio
Operational Update – Residential Portfolio Revenue recognized Saleable area (msf) Cumulative Cumulative Collections in Project Name (Rs. mn) Area Sold Sales Value Q3 FY20 (operational) Total Balance Area launched (msf)^ (Rs. mn) (Rs. mn) in Q3 FY20 Cumulative Area Area One Bangalore West, 2.20 1.61
Slide 67: One Bangalore West, Bangalore
One Bangalore West, Bangalore Actual Site Picture 66
Slide 68: Kessaku, Bangalore
Kessaku, Bangalore Actual Site Picture 67
Slide 69: Annexure
Financial Results Business Performance Annexure High Street Phoenix, Mumbai
Slide 70: Shareholding Pattern as on 31st Dec 2019
Shareholding Pattern as on 31st Dec 2019 Shareholding Pattern Sr. No Top Institutional Investors % Shareholding 2.47% 1.74% 1 Nordea Bank 4.30% 9.11% 2 Schroder 3.33% Promoters 3 TT Funds 2.66% FII 4 Fidelity 2.22% DII 27.54% 5 DSP Mutual Fund 1.77% Public 6 ICICI Prudential Mutual Fund 1.63% Corpor
Slide 71: Q3 FY20 Debt Across Subsidiaries
Q3 FY20 Debt Across Subsidiaries Q2 FY20 Debt Q3 FY20 Debt Asset Type SPV Asset Name PML Ownership (Rs.mn) (Rs.mn) PML Standalone High Street Phoenix, Mumbai 100% 8,453 8,708 Classic Mall Phoenix MarketCity, Chennai 50% 7,410 7,277 Development The Crest C (Residential) Phoenix MarketCity, Pune Vamon
Slide 72: Contact
Varun Parwal Advait Phatarfod Contact: +91 22 3001 6737 Contact: +91 22 3001 6804 Email: varun.p@phoenixmarketcity.in Email: advait.p@phoenixmarketcity.in Saket Somani / Rohan Rege Contact: +91 22 6169 5988 Email: pml@churchgatepartners.com Website: http://www.thephoenixmills.com/investordesk.html 7