Prozone Realty Ltd · NSE:PROZONER
Prozone Realty — Prozone Intu Properties — Q3 FY18 Earnings Presentation
52 slides from Prozone Realty's earnings presentation, February 2018
Slide 1: Q3 FY18 Results Update Presentation
Upward And Forward •........ ....• .. ••••••• . • ..• • •• ... ..._" '!tIIe-";' ::"-:. ..: ~ prozone .......:-- ...... •• • •••• • III II!!I II!!I • •• •• • • II:: I!I • • • - • ..... : -JIII!!'_' -"~ intu _ .... ---_- .•....... ••• • ••• ••• · .• · re~• ,.~~ • • • •• • • •• • • • •• • "iIII'~~ III
Slide 2: Prozone Intu on a strong footing
Prozone Intu on a strong g footing g prozone intu~ • Coimbatore mall stabilization progressing well, working towards increasing footfall and trading density at the mall • Aurangabad and Coimbatore mall leased out space currently at 83% and 87% respectively, annuity income to increase significantly g
Slide 3: Regulatory tailwind underpinning sector re-rating
Regulatory g y tailwind underpinning p g sector re-rating g prozone intu~ Real Estate (Regulation and Development) Act, 2016 (RERA) became effective from 1st May 2016 State notification for RERA fully completed Extremelyyp positive in the longg run as reputed p developers p would reap p the be
Slide 4: Q3 FY18 – Key Highlights
Q3 FY18 – KEY HIGHLIGHTS prozone intu~ Fig in INR mn 250 0 250.0 300 311 200.0 154 54% 250 150.0 200 156 62% 150 100.0 88 100 99% 128 46% 50.0 38% 54 50 0 0.0 Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Revenue (Rs mn) S l off Premises Sale P i S l off Services Sale S i 180 50.4% 80 50.0% 160 70 140 36 9% 36.9%
Slide 5: Quarterly Business Update
QUARTERLY BUSINESS UPDATE prozone intu~ • Q3 FY18 revenues were higher with increase in sale of services along with increase sale of premises- • Coimbatore mall became operational in Q2 FY2018 and is stabilinsg at a rapid pace • Revenue from sale of premises up significantly as the revenue recogniti
Slide 6: Quarterly Business Update
QUARTERLY BUSINESS UPDATE prozone intu~ • Initiation of the Asset Monetization phase – • Nagpur project has shown a healthy profitability, f revenue recognition at Nagpur leading to higher sales off premises during the quarter • Coimbatore residential project construction is expected to start in Q1
Slide 7: Our Current Focus Areas
OUR CURRENT FOCUS AREAS prozone intu~ AURANGABAD MALL COIMBATORE MALL • Focus remains on providing international shopping • Aurangabad Mall lease currently stands at 83% experience to the customers • Big Bazaar, Max, Jeep, Shake & Bites, Arrow • Leasing stands at 87%, working towards further increas
Slide 8: Discussion Summary
prozone DISCUSSION SUMMARY intu~ • Quarterly Business Update • Financial Results • Asset Snapshot • Aurangabad • Coimbatore • Nagpur • Indore • Annexure 7 prozone intu
Slide 9: Quarterly Business Update: Aurangabad Mall
prozone QUARTERLY BUSINESS UPDATE intu Retail– Aurangabad Mall update • Revenue from sale of services remains robust with over 40 brands crossing thresholdrevenue share limits at Aurangabad • Leasing currently stands at 83% including the stores under tenant fit-outs • Installed solar panel over mall
Slide 10: Quarterly Business Update: Coimbatore Mall
prozone QUARTERLY BUSINESS UPDATE intu~ • Retail – Nagpur: Retail design finalized and approvals have been applied, expected to start construction i FY2019 in • Retail– Coimbatore Mall • Co ba o e mall Coimbatore a stabilization s ab a o p progressing og ess g well, e , largest a ges mall a in the e
Slide 11: Brand Partners
BRAND PARTNERS prozone intu JACI(=JONES' a §KECHER§ VEROMODA ARROW I "" • , II 1101 - U.S. P~LO ASSN. TIS SOT o WORLD "f TITAN ~ PARK AVENUE ~ III t'ETRO _MOCHI IIFWlltmr.] s" 0 l S HOLlYW 0 OPTltlAHS LAVIE 1A01 • IHOII SDykarl! Hush Puppies I - GOCaORS' """j,p ~ cltmlcifu UNITED COLORS INOlAN T RRA
Slide 12: Quarterly Business Update
QUARTERLY BUSINESS UPDATE prozone intu~ • Residential – Nagpur • Project complied with RERA requirement, 336 units will be delivered under the project, revenue recognition continuing in a phased manner • Registered with RERA; reforms expected to bring long term benefits for the sector • Focus on com
Slide 13: Quarterly Business Update
QUARTERLY BUSINESS UPDATE prozone intu~ • Residential – Coimbatore • Soft launch initiated for the Coimbatore Residential Project, 96 units sold till date at an average base price of 3,540 psf • Currently legal documents are being finalized including the Sale & Construction agreements for the custom
Slide 14: Financial Results: Consolidated Income Statement
FINANCIAL RESULTS: CONSOLIDATED INCOME STATEMENT prozone intu~ Rs. Mn. Q3 FY18 Q3 FY17 YoY % Revenue from Real Estate Projects j 128.5 53.9 138% % Lease Rental & Related Income 153.8 88.1 75% Total Income from operations 282.3 142.0 99% Other Income 29.0 14.0 107% Total Income including other income
Slide 15: Asset Snapshot
ASSET SNAPSHOT prozone intu~ 14 prozone intu
Slide 16: Retail Update: Aurangabad Mall
RETAIL UPDATE prozone AURANGABAD MALL intu~ Mall Matrix Key y Operating p g Parameters Q3 FY2017-18 Gross Leased Area (lakh sq.ft.) 5.67 Current Leasing Status 83% Current Occupancy Status 82% Number of Stores Signed 101 Retailer Sales (Rs. Mn.) 598 Average Monthly Trading Density (Rs/sqft) 498 Foot
Slide 17: Financial Snapshot Aurangabad
FINANCIAL SNAPSHOT prozone AURANGABAD intu~ Operational Details (Rs. Mn.) Q3 FY18 Q2 FY18 Q1 FY18 Area Leased (lakh sq. ft.) 5.67 5.57 5.41 % Leased 83% 82% 80% Sale of Premises 34.9 30.7 28.9 Rental Income 46.9 43.9 49.0 Recoveries (CAM & Other) 39.9 37.4 38.4 T t l IIncome Total 121 7 121.7 112 0
Slide 18: New Stores Opened in Q3 FY18 Aurangabad Mall
NEW STORES OPENED IN Q3 FY18 prozone AURANGABAD MALL intu~ Big Bazaar Max 17 prozone intu
Slide 19: Brand Partners Aurangabad Mall
BRAND PARTNERS prozone AURANGABAD MALL - 'intu - (31--01]_"]_3 Tf!tj!, ~l:'IHLI'LJc.Jl ~~fl_ INOX UVE THlE, MDVI E I partarens ;~ ST SID lE ------1' rnrru <0. VANHEU5EH -- rnaroosh ARROW .~. i)[j I<-LOUNGE.. l<II..L>:n_ ~,_ A" """ 0.,.,,,,,,.,<> easl<>s >"l' ~""=TnO -..-...."""'"~ .[TAN MONTE CARLO
Slide 20: Events Aurangabad Mall
EVENTS prozone AURANGABAD MALL lntu Big Bazaar Fashion Show – 3rd Dec 2017 My FM - Anniversary – 13th Dec 2017 19 p~Oll1e' intll,jll
Slide 21: Commercial Update Aurangabad PTC Phase 1
COMMERCIAL UPDATE prozone AURANGABAD PTC PHASE 1 intu Prozone Trade Center (PTC) Phase 1 Q3 FY 2017 2017-18 18 Total Area Launched (sqft) 190,528 Total Units Launched (No) 117 Total Area Sold (sqft) 184,796 % Total Area Booked 96% Avg. Sale Rate per sqft (Rs) 3,258 Prozone Trade Centre (PTC) Phase 1
Slide 22: Commercial Update Aurangabad PTC Phase 1
COMMERCIAL UPDATE prozone 'i ntu AURANGABAD PTC PHASE 1 .r-"'-~. ~ 21 IPFD!One ii'n~u
Slide 23: Retail Update Aurangabad – Saral Bazar
RETAIL UPDATE prozone AURANGABAD – SARAL BAZAR intu~ Saral Bazar Phase 1 Q3 FY 2017-18 Total Carpet Area Launched (sqft) 17,893 Total Units Launched (No) 177 Total Carpet Area Booked (sqft) 16,837 % Total Area Sold 94% • Saral Bazaar - A community street market concept with small shop spaces of 80-1
Slide 24: Retail Update Aurangabad – Saral Bazar
RETAIL UPDATE prozone AURANGABAD – SARAL BAZAR intu~ Exhibitions Shops New Operational Shops 23 prozone Intu
Slide 25: Project Update Coimbatore - Residential
PROJECT UPDATE prozone COIMBATORE - RESIDENTIAL intu~ • Location – COIMDATORI! • Prozone land parcel is Located on - - -- Cl~"'. the Sathyamangalam road a.k.a. the IT Corridor of Coimbatore. • Site has main access via National Highway No 209 providing excellent connectivity to the site • Project Siz
Slide 26: Project Update Coimbatore – Retail & Residential
PROJECT UPDATE prozone COIMBATORE – RETAIL & RESIDENTIAL intu~ • Residential Update - • Soft launch initiated for the Coimbatore Residential Project, 96 units sold till date at an average base price of 3,540 psf • Currently legal documents are being finalized including the Sale & Construction agreem
Slide 27: Financial Snapshot Coimbatore Mall
FINANCIAL SNAPSHOT prozone COIMBATORE MALL intu~ Operational Details (Rs. Mn.) Q3 FY18 Q2 FY18 Area Leased (lakh sq. ft.) 4.37 4.23 % Leased 87% 85% Rental Income 48.2 21.0 Recoveries (CAM & Other) 24.1 12.8 Total Income 72.3 33.8 EBIDTA 48 9 48.9 84 8.4 EBIDTA Margin % (as % of Total Income) 68% 25
Slide 28: Project Update Coimbatore - Retail
PROJECT UPDATE prozone COIMBATORE - RETAIL lntu Strong traction from Premium Anchor Brands 27 p~Oll1e' intll,jll
Slide 29: Project Update Coimbatore - Retail
PROJECT UPDATE prozone COIMBATORE - RETAIL lntu Strong traction from Premium Anchor Brands 28 p~Oll1e' intll,jll
Slide 30: Project Update Coimbatore - Retail
PROJECT UPDATE prozone COIMBATORE - RETAIL lntu Strong traction from Premium Brands 29 p~Oll1e' intll,jll
Slide 31: Project Update Coimbatore - Retail
PROJECT UPDATE prozone COIMBATORE - RETAIL lntu Strong traction from Premium Brands 30 p~Oll1e' intll,jll
Slide 32: Marketing Update Coimbatore - Residential
MARKETING UPDATE prozone COIMBATORE - RESIDENTIAL lntu Property Portals – 99 Acres, Magic Bricks . ~ ......... "I-"- .. _I,II~I"IIIlII! .. rI.( IIMi!II! ~~ lIuI _ ......... ' ~, _,. ...... :, ..• ~ ~ ..~ .:- P:. ~:~ ...~.~~ ... ~ ... ...:.. ~ , • .r~' 31 p~Oll1e' intll,jll
Slide 33: Project Update Coimbatore - Residential
PROJECT UPDATE prozone COIMBATORE - RESIDENTIAL lntu Sales & Marketing Office , Show Flat - ~ ..& , PF()]'C: rJ::- r" ~~i, ,\..1'I 32 p~Oll1e' intll,jll
Slide 34: Project Update Coimbatore - Residential
PROJECT UPDATE prozone COIMBATORE - RESIDENTIAL lntu Club House & Infrastructure Work in Progress 33 p~Oll1e' intll,jll
Slide 35: Project Update Nagpur - Residential
PROJECT UPDATE prozone NAGPUR - RESIDENTIAL intu • Location – NAG PUR City Map • Prozone Palms is strategically located just off Wardha Road, a prime residential location at Nagpur. • It is in close proximity to the MIHAN (M lti (Multi-modal d l IInternational t ti lCCargo Hub and Airport at Nagpur)
Slide 36: Project Update Nagpur - Residential
PROJECT UPDATE prozone NAGPUR - RESIDENTIAL intu~ • Sales Update & Revenue Recognition Update – • Project P j t complied li d with ith RERA requirement, i t 336 units it will ill be b delivered d li d under d the th project, revenue recognition continuing in a phased manner • Residential Constructio
Slide 37: Project Update Nagpur - Residential
PROJECT UPDATE NAGPUR - RESIDENTIAL Sales Office & Show Flat 36
Slide 38: Project Update Nagpur - Residential
PROJECT UPDATE prozone NAGPUR - RESIDENTIAL . 'i ntu ..-----._~ Tower Nearing Completion 37 p,romnl!' intUi
Slide 39: Project Update Nagpur - Residential
PROJECT UPDATE NAGPUR - RESIDENTIAL Tower Nearing Completion li'iI"II"'PJ"IInl!' P'!I~V _ 38 _. intUi
Slide 40: Project Update Nagpur - Residential
PROJECT UPDATE prozone NAGPUR - RESIDENTIAL intu~ 39 prozone intu
Slide 41: Project Update Indore - Residential
PROJECT UPDATE prozone INDORE - RESIDENTIAL intu~ • Location – • Prozone Palms is situated on Kanadia Road, a prime residential Ring Road location at Indore. Kanadia Road • Well connected byy Bypass yp road, Bypass proposed RE-2, it is strategically located within a 5 min drive from high end residen
Slide 42: Project Update Indore - Residential
PROJECT UPDATE prozone INDORE - RESIDENTIAL intu~ • Residential update – • Infrastructure development work in progress. • M k ti Offi Marketing Office and d Sample S l Fl Flatt Civil Ci il structure and Interiors work completed. • Access road as well as Site Infrastructure completed. • Club House Ci
Slide 43: Project Update Indore - Residential
PROJECT UPDATE prozone INDORE - RESIDENTIAL intu~ Landscape & Boundary wall Club House & Swimming Pool Access Road Kids play area & Landscape 42 prozone intu
Slide 44: Corporate Overview
CORPORATE OVERVIEW prozone intu~ 43 prozone intu
Slide 45: Company Overview – About Us: Brief Overview
COMPANY OVERVIEW – ABOUT US prozone BRIEF OVERVIEW intu~ • Prozone Intu Properties Ltd. (Prozone Intu) is jointly developed by Promoters and Intu Properties Plc set up to create, develop and manage world-class regional shopping centres and associated mixed-use developments Pan-India. BUSINESS • Proz
Slide 46: Understanding Our Business Model: Business Strategy
UNDERSTANDING OUR BUSINESS MODEL prozone BUSINESS STRATEGY intu~ Business Strategy – • Develop Large scale Land Parcels for Mixed Use development. development • 75% of the Land to be developed as Residential & Commercial – Build & Sell model • 25% of the Land to be developed as Retail – Build & Leas
Slide 47: Understanding Our Business Model: Business Strategy
UNDERSTANDING OUR BUSINESS MODEL prozone BUSINESS STRATEGY - lntu Regional Malls Yield under own Lease Management Model Debt Free Large g scale Assets land parcels FUTURE Profits & GROWTH for mixed use developments Shareholder Residential & Cash Value Commercial Sales Developments Model • Locations
Slide 48: Our Board of Directors
COMPANY OVERVIEW – ABOUT US prozone OUR BOARD OF DIRECTORS intu~ Nikhil Chaturvedi David Fischel Mr David Fischel is the Chief Founder and Managing Director, Executive of Intu Properties Plc Nikhil is a visionary and hands-on (formerly CSC) He converted the leader, who inspires the business into a R
Slide 49: Our Board of Directors
COMPANY OVERVIEW – ABOUT US prozone OUR BOARD OF DIRECTORS intu~ Punit Goenka Dushyant Sangar (Independent Director) Mr. Dushyant Sangar is the Mr. Goenka, Director of Essel Group, Corporate Development Director of is CEO of Zee Entertainment Intu Properties plc ("Intu") and is a Enterprises Limited
Slide 50: Key Shareholders Trading Update
Key shareholders prozone Trading update intu~ Shareholding in % – Dec 2017 Key Investors Holding (%) ACACIA Partners 3.25% Others, 31. 2% Promoters, Rakesh Jhunjhunwala 2.46% 31.8% Aditya Chandak & Family 2.29% Ramesh Damani & Family 1.21% Cavendish AM 1.18% FII, 4.6% Intu Life Insurance Corporation
Slide 51: Important Note Disclaimer
IMPORTANT NOTE prozone DISCLAIMER intu~ Generic Disclaimer The following is a general overview of Prozone INTU Limited (the “Company”) and is qualified in its entirety by reference to the applicable offering memorandum, memorandum and articles of association or other constitutional documents and sub
Slide 52: Thank You
THANK YOU prozone intu~ Anurag Garg, A G Chief Chi f Fi Finance Offi Officer (CFO) Ravindra R i d Bhandari Bh d i Contact: 022 30653111 Dickenson Seagull IR Contact: +91 92836 14197 Email: anurag.garg@prozoneintu.com Email: ravindra.bhandari@dickensonIR.com Website: www.prozoneintu.com www prozonein
Prozone Intu Properties — Q3 FY18 Earnings Presentation on 6ix