Phoenix Mills Ltd. · NSE:PHOENIXLTD
Phoenix Mills — The Phoenix Mills — Investor Presentation (November 2022)
65 slides from Phoenix Mills's investor presentation, Nov 15, 2022
Slide 1: Exchange filing cover letter: Corporate Presentation
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 Date: November 15, 2022 To, BSE Limited. National Stock Exchange of India Limited. Phiroze Jeejeebhoy To
Slide 2: Corporate Presentation November 2022: Shaping our Tomorrow, Always
The Phoenix Mills Ltd. Corporate Presentation November 2022 Shaping our Tomorrow, Always ✓ Creating future-ready destinations ✓ Future-proofing existing destinations ✓ Strategic Partnerships driving next leg of growth ✓ Prudent capital allocation ✓ Growth triggers in operational assets ✓ New-age ini
Slide 3: India's largest retail mall owner and operator with ~13 msft retail GLA by FY26
India’s largest retail mall owner and operator with ~13 msft retail GLA by FY26… GLA across 9 GLA of ~7 msft operational RETAIL under-development & ~6 msft malls in 6 cities under-planning RETAIL Leased occupancy EBITDA margin >100% across operational ~98% in Retail Malls malls Retail EBITDA Growth
Slide 4: Adding sustainable, futuristic and urban workspaces to anchor retail destinations
… adding sustainable, futuristic and urban workspaces to anchor our existing retail destinations GLA across 7 offices GLA under-development ~5 ~2 msft and under-planning office spaces in 2 cities msft spaces ~1.3 New leasing in Renewal leasing ~0.7 lakh sft YTD Oct-22 in YTD-Oct 22 lakh sft Rental I
Slide 5: Expansion through densification of operational assets up to FY26
Expansion through densification of operational assets upto FY26 Current GLA GLA under Expansion FY26 GLA Asset (in msft) Retail Office Retail Office Retail Office COMPLETED DENSIFICATION EXPANSIONS Phoenix Marketcity, Pune ~1.19 ~0.84 - - ~1.19 ~0.84 Phoenix Marketcity, Mumbai ~1.14 ~1.74 - - ~1.14
Slide 6: Expansion through new, under-development assets up to FY26
Expansion through new, under-development assets upto FY26 Planned GLA Asset (in msft) Retail Operations Commence Retail Office Phoenix Citadel, Indore Dec-22 ~1.00 - Phoenix Palladium, Ahmedabad Jan-23 ~0.77 - Phoenix Mall of the Millennium, Pune FY24 ~1.1 ~1.2 Phoenix Mall of Asia, Bangalore FY24 ~
Slide 7: Growth in annuity portfolio by FY26
Growth in annuity portfolio by FY26 Segments FY 22 FY 26 Retail 6.9 msft 1.9x 13.0 msft Offices 2.0 msft 3.6x 7.1 msft Hotels 588 keys 1.7x 988 keys Robust growth trajectory to solidify leadership position in mixed use developments in India 6
Slide 8: Creating destinations of the future
Creating destinations of the future Indicative Render 7
Slide 9: A palatial retail experience spread over 15 acres
A palatial retail experience spread over 15 acres Indicative Render 8
Slide 10: A palatial retail experience spread over 15 acres
A palatial retail experience spread over 15 acres Actual Photo 9
Slide 11: A palatial retail experience spread over 15 acres
A palatial retail experience spread over 15 acres Actual Photo 10
Slide 12: Interior shots
Interior shots Actual Photo Actual Photo 11
Slide 13: Interior shots
Interior shots Actual Photo 12
Slide 14: Commenced operations in July 2020
Commenced operations in July 2020 ▪ Palatial interior, Expansive spaces ▪ Retail GLA of ~0.9 msft* ▪ ~97% leased occupancy* ▪ Acquisition to operations in ~24 months Actual Photo *Data as of Q2 FY23 Gross leasable area is an estimate based on current plans and market/company norms and is subject to
Slide 15: Case Study: Attractive starting yields on Phoenix Palassio
Case Study: Attractive starting yields on Phoenix Palassio PMC malls are currently in Retail GLA of ~0.9 msft* second leg of this growth 200 ~97% leased occupancy* Lease renewal at Q2 FY23 Trading Density – ~Rs. 1,181 pspm Rent PSF (Rebased to 100) 180 significantly higher rates Q2 FY23 rental rate
Slide 16: The Retail destination of Madhya Pradesh – Opening in December 2022
The Retail destination of Madhya Pradesh – Opening in December 2022! Indicative Render 15
Slide 17: The Retail destination of Madhya Pradesh – Opening in December 2022
The Retail destination of Madhya Pradesh – Opening in December 2022! Actual Photo 16
Slide 18: The Retail destination of Madhya Pradesh – Opening in December 2022
The Retail destination of Madhya Pradesh – Opening in December 2022! Actual Photo 17
Slide 19: Interior Shots
Interior Shots Indicative Render Actual Photo 18
Slide 20: Opulent Grand Arrivals, Venetian inspired Chandeliers & Glasswork
Opulent Grand Arrivals, Venetian inspired Chandeliers & Glasswork Actual Photo Actual Photo ▪ Retail GLA of ~1 msft* ▪ ~88% leased* ▪ Opulent grand arrivals ▪ Magnificent chandeliers in sky lit atrium ▪ Landscaped gardens ▪ Spectacular Musical fountains ▪ Interiors inspired by the beauty of Italy *D
Slide 21: The Luxury Retail Destination of Gujarat – Opening in January 2023
The Luxury Retail Destination of Gujarat – Opening in January 2023! Indicative Render 20
Slide 22: The Luxury Retail Destination of Gujarat
The Luxury Retail Destination of Gujarat Actual Photo 21
Slide 23: Timeless Luxury
Timeless Luxury ▪ Retail GLA of ~0.77 msft* ▪ ~99% leased* ▪ Luxurious atrium with green art and elegant cafés ▪ Deluxe 9 Audi multiplex ▪ ~20,000+ sft entertainment space Indicative Render *Data as of Q2FY23 22
Slide 24: An Iconic 1.2 msft Mall at Hebbal, Bangalore
An Iconic 1.2 msft Mall at Hebbal, Bangalore … Indicative Render 23
Slide 25: Anchored with Grade A office spaces
…anchored with Grade A office spaces Indicative Render Indicative Render 24
Slide 26: Arrival at Ground Floor into Eden Arcadia
Arrival at Ground Floor into Eden Arcadia ▪ Retail GLA of ~1.2 msft* ▪ Anchored by offices of ~1.2 msft* ▪ Retail ~78% leased* ▪ Part of an integrated campus – ~4,000 homes; ~4msft office space ▪ Multiple grand arrivals, ~40+ open plan restaurants, Indoor Fan Park Indicative Render *Data as of Q2FY2
Slide 27: Pune's Gateway to Luxury
Pune’s Gateway to Luxury Indicative Render 26
Slide 28: Rains of Nourish – 2nd floor grand entry
Rains of Nourish – 2nd floor grand entry ▪ Retail GLA of ~1.2 msft* ▪ Anchored by offices of >1msft* ▪ Retail ~86% leased* ▪ Open plan restaurants; eclectic F&B village ▪ Indoor Fan park ▪ 14 screen megaplex ▪ Grand arrival and luxury Indicative Render boulevard *Data as of Q2FY23 27
Slide 29: Project Rise – the Jewel in the Phoenix crown
Project Rise – the Jewel in the Phoenix crown Project Rise: Office GLA: ~1.1 msft Retail GLA: ~0.20 msft 28
Slide 30: Alipore, Kolkata: East India's retail destination – commenced construction
Alipore, Kolkata: East India’s retail destination – commenced construction Indicative Render 29
Slide 31: Future-proofing our existing assets by densification
Future-proofing our existing assets by densification Indicative Render 30
Slide 32: Case Study: Future Proofing of Operational assets
Case Study: Future Proofing of Operational assets • All approvals in place to expand Retail GLA from ~0.77 msft to over 1.40 msft • ~150,000 sft of retail GLA - August 2022 • ~250,000 sft of retail GLA - 2024 Retail + Office Expansion Retail + Office Expansion • ~200,000 sft of retail GLA -2025 Towe
Slide 33: Phoenix Palladium, Mumbai: Expansion & New Stores opened
Phoenix Palladium, Mumbai: Expansion & New Stores opened 32
Slide 34: Phoenix Palladium, Mumbai: Expansion & New Stores opened
Phoenix Palladium, Mumbai: Expansion & New Stores opened 33
Slide 35: Phoenix Palladium, Mumbai: Expansion & New Stores opened
Phoenix Palladium, Mumbai: Expansion & New Stores opened 34
Slide 36: Phoenix Marketcity, Pune – Fountainhead Office Towers
Phoenix Marketcity, Pune – Fountainhead Office Towers added to the existing retail development ▪ Existing Mall GLA: ~1.1 msft ▪ Planning addition of ~100,000 sft of Retail GLA ▪ Completed addition of Office GLA: ~8,00,000 sft Render ▪ Offices seamlessly connected with the mall ▪ 10,000+ office goers
Slide 37: Fountainhead Office Towers: Significantly accretive incremental yields
Fountainhead Office Towers: Significantly accretive incremental yields Grade A Scalable Office Spaces City centric location – Viman Nagar An expansion of Pune’s most prominent mixed-use development – PMC Pune Render of Phoenix Fountainhead Tower 2 – Lobby Phoenix Fountainhead ~Rs. 3,700 psf Developm
Slide 38: Growth by Densification – Phoenix Marketcity, Bangalore
Growth by Densification – Phoenix Marketcity, Bangalore ▪ Expansion Potential: ▪ Office: ~1msft ▪ Retail: ~300,000 sft ▪ Hotel: 400 Keys ▪ All approvals in place ▪ Construction commenced 37
Slide 39: Operational Office portfolio to grow from ~2msft to ~7msft
Operational Office portfolio to grow from ~2msft to ~7msft in the next 4 years Offices at Phoenix MarketCity, Mumbai Asia Towers, Hebbal, Bangalore Millennium Towers, Wakad, Pune Fountainhead Offices at Rise Offices at Phoenix Offices at Phoenix MarketCity, Phoenix MarketCity, Pune Palladium, Mumbai
Slide 40: Prudent Capital Allocation
Prudent Capital Allocation Indicative Render 39
Slide 41: Raised equity capital of ~Rs. 4,533 cr in the last 24 months
Raised equity capital of ~Rs. 4,533 cr in the last 24 months… Qualified Institutional August 2020 ~Rs. 1,100 cr Placement (QIP) JV with CPPIB for Kolkata May 2021 ~Rs. 384 cr Development 49% stake for CPPIB Equity Infusion in existing retail May 2021 & Dec 2021 ~Rs. 539 cr platform with CPPIB (ISML)
Slide 42: Balanced Debt Mix and Prudent Funding Strategy for Growth
Balanced Debt Mix and Prudent Funding Strategy for Growth Effective cost of debt is down ~130bps from end-FY20 to Debt drawdowns deferred to last 15-18 months ~7.89% at end-Q2 FY23 of the construction period for under construction assets At end-Q2 FY23, ✓ ~91% of debt is in the form of LRDs on indiv
Slide 43: Focus on optimizing cost of debt and reducing Net Debt levels
Focus on optimizing cost of debt and reducing Net Debt levels Effective cost of debt reduced by 130 bps and Net Debt reduced from ~Rs. 4,600 cr (FY20) to ~Rs. 1,964 cr (Q2FY23) of which PML share was ~Rs. 1,573 cr 9.19% Effective cost of debt (%) 8.17% 7.90% 7.89% 7.84% 7.61% 7.30% 7.45% 4.90% 4.90%
Slide 44: Negligible debt on under construction assets
Negligible debt on under construction assets Debt o/s Capex till Operations Asset Name Q2FY23 Q2FY23 Commence Phoenix Citadel, Indore ~Rs. 101 cr ~Rs. 613 cr Dec-22 Palladium, Ahmedabad ~Rs. 308 cr ~Rs. 780 cr Jan-22 Retail: FY24 Phoenix Millennium, Pune ~Rs. 10 cr ~Rs. 729cr Office: FY25 Retail: FY
Slide 45: Steady decline in debt on operating portfolio
Steady decline in debt on operating portfolio Debt on Operational Portfolio (Rs. cr) 4,395 4,386 4,457 4,288 4,170 4,202 4,166 4,177 4,019 3,858 3,723 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Debt on Under Construction Portfolio (Rs. cr) 554 579 531 328 202 80% to
Slide 46: September 2022 Debt and Cash Position
September 2022 Debt and Cash Position Group Level PML Share Amount Rs. cr Liquidity (Bank balance + 2,300^ 1,692 Investments + DSRA)* Gross Debt 4,264 3,265 Net Debt 1,964 1,573 H1 FY23 EBITDA 716^ 589 ^ Includes Starboard which does not form part of PML Consolidated * Does not include Rs. 1,022 cr
Slide 47: Retail target cities beyond 2022
Retail target cities beyond 2022 Under early evaluation Nagpur Jaipur Chandigarh Navi Mumbai Goa NCR Hyderabad Thane Vizag 46
Slide 48: Strategic Partnerships driving the next leg of growth
Strategic Partnerships driving the next leg of growth By the Mekong, The St. Regis, Mumbai 47
Slide 49: Strategic Partnerships: PML CPPIB Alliance
Strategic Partnerships driving next leg of growth: PML CPPIB Alliance Phoenix Marketcity Bangalore Phoenix Citadel, Rise (Office + Retail), + Under-development offices ▪ Retail GLA: ~5.8 msft Indore Mumbai + hotel & Retail expansion ▪ Offices GLA: ~4.1 msft ▪ ~400 keys Grand Hyatt hotel Mall of the
Slide 50: Strategic Partnerships: PML GIC Alliance
Strategic Partnerships driving next leg of growth: PML GIC Alliance ▪ FY20 NOI of ~Rs. 370 crores ▪ Enterprise Value of ~Rs. 5,500 crores ▪ Capital infused by GIC of ~Rs. Phoenix MarketCity, Pune Phoenix Marketcity, Kurla 1,500 crores ▪ GIC’s equity stake – 33% ▪ Capital infusion to fund potential a
Slide 51: ~33% of operational retail GLA up for repricing in next three years
~33% of current operational retail GLA up for repricing in the next three years % of operational 13% 10% 10% 33% retail GLA ~0.7 msft ~2.2 msft ~0.6 msft + = ~0.9 msft + FY23 FY24 FY25 GLA up for repricing in next three years 50
Slide 52: Strong Operational performance across asset-classes
Strong Operational performance across asset-classes Asset class Parameter FY22 YTD Oct-22 Retail ~Rs. 5,011 cr ~Rs. 5,367 cr Consumption ~72% of FY20 ~127% of YTD Oct-19 Office Gross Leasing ~400,000 sft ~223,000 sft (Oct-22) Occupancy ~59% ~79% (Oct-22) Hospitality* ARR ~Rs. 7,306 ~Rs. 14,154 (Oct-
Slide 53: Strong Financial performance across asset-classes
Strong Financial performance across asset-classes Asset class Parameter FY22 H1FY23 Retail EBITDA ~Rs. 786 cr ~Rs. 704 cr 40% over H1 FY20 Office Total ~Rs. 158 cr ~Rs. 84 cr Income 65% over H1 FY20 Hospitality* EBITDA ~Rs. 32 cr ~Rs. 67 cr 35% over H1 FY20 *Information pertaining to The St. Regis,
Slide 54: Residential Development
Residential Development • 9 Towers - One Bangalore West • Towers 1 to 6 – OC received • Tower 7 – Under construction • Towers 8, 9 – Under Planning • 5 Towers – Kessaku • OC received for all Indicative Render 53
Slide 55: Residential Portfolio – Significant free cash flows from inventory
Residential Portfolio – Significant free cash flows from ready inventory and under- construction inventory Receivable against Gross value of Average Price achieved in H1 FY23 sold inventory inventory* Value of ~Rs. 250 cr ~ Rs. 2,750 cr ~Rs. 16,473 psf inventory* ~ Rs. 2,500 cr Inventory of saleable
Slide 56: Residential segment: Sizable opportunity for growth
Residential segment: Sizable opportunity for growth PML Advantage Natural extension of our asset mix and consumption story Prudent capital management Riding the evolution of rising consumer discretionary spend towards residential Rich history in consumer Rising preference of Landowners, capital hold
Slide 57: New age initiatives
Download the Phoenix Nhane to book your table at any Phoenix ‘restaurant in easy steps. w PHOENIX ‘shonce: | your bills on the Nhance app and points to redeem "vouchers from top brands. w PHOENIX hance’ yw PHOENIX ‘hones = | resent ill Book your table in seconds at any Phoenix Palassio restaurant by
Slide 58: Digital Initiatives
Digital Initiatives E-mall/ Omni-channel Customer Reward Program Adoption of multi-channel approach to reach Provide preference-based offerings to loyal customers based on their out to mall customers to shop from the stores shopping preferences and behavior with the help of analytics in the mall on
Slide 59: Native Customer Reward Program - Phoenix Nhance
Native Customer Reward Program - Phoenix Nhance Phoenix Palladium, Mumbai Phoenix MarketCity, Live across 6 Malls Bangalore 700,000 active members Phoenix MarketCity, Chennai Delivering experience enhancing services like Phoenix MarketCity, parking, baggage drops! Pune Expanding gratification Phoeni
Slide 60: Environmentally conscious & responsible efforts
Environmentally conscious & responsible efforts 59
Slide 61: ESG at Phoenix – initiatives at operational assets
ESG at Phoenix – initiatives at operational assets 30% of energy requirement across retail portfolio is met from green energy (mostly solar) 14 EV charging stations across our malls (Mumbai, Pune, Chennai, Bangalore) Multiple energy efficient and water efficient fixtures used across portfolio Organi
Slide 62: ESG at Phoenix – initiatives at under-construction assets
ESG at Phoenix – initiatives at under-construction assets Certifications targeted for under construction assets Target Under development projects Location Certification USGBC LEED Phoenix Citadel Indore Silver Retail Phoenix Millenium Pune USGBC LEED Phoenix Mall of Asia Bangalore Gold Phoenix Marke
Slide 63: CSR at Phoenix: Cherishing our Environment and Society
CSR at Phoenix: Cherishing our Environment and Society Some of direct initiatives by Phoenix in recent times Select Collaborative Efforts Promotion of the Uplifted tribals and Attempt at eradicating education other poverty, of underprivileged socio-economically malnutrition and creating children. ch
Slide 64: India's Most Prolific Water Conservation Initiative
India’s Most Prolific Water Conservation Initiative – Over a million lives transformed 1 458 11 2 35 3 16 State Check-dams Built Lives Directly Benefited Lives Indirectly Benefited Rajasthan 458 6,50,000 5,70,000 Madhya Pradesh 35 8,900 81,800 Maharashtra 16 7,650 Uttar Pradesh 11 14,454 20,008 Odis
Slide 65: Thank you
Thank you Varun Parwal Madhurima Kane Email: varun.p@phoenixmills.com Email: madhurima.kane@phoenixmills.com Website: https://www.thephoenixmills.com/investors 64
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