Unitech Limited · NSE:UNITECH
Unitech — Investor Presentation (June 2009)
26 slides from Unitech's investor presentation, June 2009
Slide 1: Revitalizing Growth through Affordable Housing
Unitech Ltd. Revitalizing Growth through Affordable Housing June 2009
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: • This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any secur
Slide 3: Improving macroeconomic fundamentals
Improving macroeconomic fundamentals • New Government emphasis on infrastructure and lower cost of borrowing augurs well for real estate industry • Pick up in residential volumes for mid/affordable housing segment; residential affordability is improving • Consumption demand also indicating a pick-up
Slide 4: QIP issuance helped to reduce debt
QIP issuance helped to reduce debt • Approximately Rs. 700 crores of debt repaid • Better negotiating power with banks to restructure loans as well with potential buyers of non-core assets • Increased confidence with customers on project delivery 4
Slide 5: Unitech – Truly diversified developer
Unitech – Truly diversified developer • Only developer to have a large presence in major cities across all four regions – NCR, Mumbai, Chennai, Kolkata • Diversified land bank to offer a wide variety of product – Plots, Low rise, Mid rise and High rise developments – Suburban as well as city centre
Slide 6: Shift in strategy
Shift in strategy Repositioning to attain leadership position in mid/affordable housing segment and improve sustainable cash flows Key focus areas Before Now 1 Residential • Primarily target luxury/upper middle • More focus on mid and affordable segment income housing segment housing segment 2 • Cat
Slide 7: The mid/affordable housing opportunity
The mid/affordable housing opportunity Huge demand projected in the affordable housing segment Number of households (million) 2005 2015 2025 Dwelling Housing shortage Units (mm) High Income Group 1.2 3.3 9.5 Beginning of 11th 5 year plan (2007) 24.71 Middle Income Group 13.3 60.6 128.0 End of 11th 5
Slide 8: Launch plan for FY10: Brand + low cost land + quality construction
Brand + low cost land + high quality construction + competitive pricing = Value for money • Proposed Launch Plan for FY10 Proposed New Projects for FY10 20 30 – Total Area – 30mm Sqft. 16.2 24 25 No. of Projects 15 – Project Mix: 90% Residential, Area Mn sq.ft 10.7 20 Area Launched 10% Non-Residenti
Slide 9: Well-diversified geographic presence across the country
Well-diversified geographic presence across the country Mohali / Chandigarh Dehradun Ambala NCR Agra Siliguri Varanasi Bhopal Kolkata Nagpur Bhubaneshwar Mumbai Visakhapatnam Hyderabad Goa Bangalore Chennai Mysore Kochi 9
Slide 10: Uniworld Gardens II—sold out in 7 Weeks!!
Uniworld Gardens II—sold out in 7 Weeks!! 1st Ad on 27-Mar-09 2nd Ad on 3-Apr-09 3rd Ad on 10-Apr-09 4th Ad on 20-Apr-09 #Bookings : 298 #Bookings : 406 #Bookings : 506 Sold out 10
Slide 11: Launch of Ananda & Brahma, North Town—entry into Chennai
Launch of Ananda & Brahma, North Town— marks Unitech’s entry into Chennai SOLD SOLD OUT!! OUT!! • 70 Acre Project located in the heart of North Chennai • Will house 4,000 families when fully developed • Apartments starting @ INR 19 Lakhs • Ananda – 504 units • Brahma – 672 units 11
Slide 12: Uni Homes – affordable homes from Unitech
– affordable homes from Unitech • Compact, modern, standardized product from Unitech at affordable prices (Rs. 10 – 30 lakhs, depending on the city) • Sizes from 500 sq ft to 1,000 sq ft • Launch planned in 8 cities with estimated saleable area of 8-9mm sq ft, across India in the first phase this ye
Slide 13: Uni Homes – Chennai
– Chennai • Soon to be launched in Chennai – well connected to both OMR and GST Roads in the midst of major industries • To be launched in 11.47 ac in Ph-1, part of 250 acre integrated township • 1,024 apartments – 660 sq ft in size and at an all inclusive price of less than 15 lakhs (lowest ticket
Slide 14: Uni Homes – Prototype
– Prototype 14
Slide 15: SRA Projects: Why Slum Redevelopment?
SRA Projects: Why Slum Redevelopment? • Sizable land tracts available Significant value creation potential • Low cost • Strategic locations Entry vehicle: 50% stake in two slum project developers JV partners JV partners’ key strengths Unitech’s complimentary skills • Fair & transparent • Professiona
Slide 16: Value chain management in SRA
Value chain management in SRA Managed by JV Partner and Unitech Managed by Unitech Getting Master Acquiring slum Detailed approvals planning and dweller consents design and from different design and land parcels planning agencies concept Design and Sales and construction Evacuation Construction Mone
Slide 17: Changing face of slum redevelopments
Changing face of slum redevelopments Area From …. To Professional from IIMs & top Area Relatives & internal network rung advisors like McKinsey & Co. International architects like Local architects maximizing Architect SOM, holistic approach FSI towards town planning Large well organized Construction
Slide 18: A few of our projects
A few of our projects Malad Kandivali Andheri-Kurla Road (Prakashwadi) Juhu Ghatkopar Vile Parle BKC Santacruz (E) Chembur Dadar Worli Parel Byculla VT 18
Slide 19: Our existing Mumbai pipeline
Our existing Mumbai pipeline • # of Projects:15 Advanced projects Details • Total Land Size: 163 acres (Private Land: 80 acres) • Slum Dwellers: 30,714 • Private Land Acquired: 53 acres • Consents Obtained: 18,379 (>85% work done) Work done • LOI Obtained: 5 mm sq ft saleable area so far • Slum Dwel
Slide 20: Recently launched projects
Recently launched projects Right pricing along with Affordable Focus on Right product Residential Strategy Volume and Fast in terms of size and Commercial turnover and specifications products The Chambers: Grade A flexible small office space ideally designed for Entrepreneurs, Professionals & SMEs •
Slide 21: Monetization of non core assets
Monetization of non core assets Transactions Completed • Marriott Courtyard, Gurgaon—Hotel sold for INR 231 Cr • Country Inns & Suites, Gurgaon Advance Stage • Saket Office Deals • Hotel property in Gurgaon • Sale of School plots in Gurgaon Within 6 months – Further Plan • Expected sale of 4 hotels
Slide 22: Debt management
Debt management • Company has been proactively working with all its lenders to – Reschedule loans with near term maturities – Keep the cost of debt under control – Collateralize unsecured loans wherever necessary – Replace short term loans with long term ones Outstanding Debt 1 12,000 10,900 15.0 8,
Slide 23: Unitech Wireless – Creating value
Unitech Wireless – Creating value • Unitech Ltd. has an economic interest of 32.75% in the companies comprising Unitech Wireless • Based on entry valuation of Telenor, Unitech’s economic interest is valued at ~Rs. 3,000 Cr i.e., per share valuation of ~ Rs. 15 • Strong Management team in place – 300
Slide 24: Appendix
Appendix
Slide 25: Recent Launches
Recent Launches Location Project Type NCR – Gurgaon Uniworld Gardens-II Residential Apartments NCR – Gurgaon The Residences Residential Apartments NCR – Noida Willows @ Grande Residential Plots Mumbai Gateway Residential Apartments Mumbai Woodside Residential Apartments Mumbai Ascot Residential Apar
Slide 26: Thank you
Thank you