Mahindra Lifespace Developers Limited · NSE:MAHLIFE
Mahindra Lifespace Developers — Investor Presentation (March 2014)
38 slides from Mahindra Lifespace Developers's investor presentation, March 2014
Slide 1: Investor Presentation
Investor Presentation March 2014
Slide 2: Mahindra Lifespaces: Leading real estate player
Mahindra Lifespaces: Leading real estate player Company overview Shareholding pattern (31 Mar 2014) One of the leading Indian real estate players with presence in 9 city clusters across India Balanced business model with focus on residential and large format integrated business cities Complete
Slide 3: Geographic presence of Mahindra Lifespaces
Geographic presence of Mahindra Lifespaces Total (m sq. ft.) Completed* 7.70 Ongoing 4.68 Completed* 1.95 Forthcoming 6.57 Ongoing 0.97 Forthcoming 1.10 Land inventory 12.44 Land inventory – Total 31.39 Total 4.02 Delhi Gurgaon Faridabad Jaipur Completed* – Ongoing – Forthcoming – Completed* 2.81 La
Slide 4: Evolution of business over the last two decades
Evolution of business over the last two decades Recognized as one of ‘India’s Launched its first large Real Estate arm of GE Top 10 Builders’ by format integrated First developer in India Shipping demerges and Construction World magazine business city - Mahindra to launch green homes lists as GE
Slide 5: Key investment themes
Mahindra LIFESPACES Key investment themes
Slide 6: Key investment themes
Key investment themes 1 7 Supportive Parentage and industry brand fundamentals Successfully developing two 2 Experienced large format 6 management integrated team business cities Track record of Land inventory to execution with accommodate focus on future growth sustainability Consistent financial 3
Slide 7: Key investment themes
Key investment themes 1 7 Supportive Parentage and industry brand fundamentals Successfully developing two 2 Experienced large format 6 management integrated team business cities Track record of Land inventory to execution with accommodate focus on future growth sustainability Consistent financial 3
Slide 8: Parentage of Mahindra Group
1 Parentage of Mahindra Group Strong parentage and brand Part of c.US$20.26bn (by market cap.)* Mahindra Group: Operations span 18 industries and has presence in 100+ countries across the globe One of the world’s largest tractor-manufacturers by volume Received the Financial Times ‘Boldness
Slide 9: Customer centric practices and high corporate governance standards
1 Customer centric practices and high corporate governance standards Differentiated customer centric practices at Mahindra Lifespaces Design validation Focus on delivery − Consumer feedback, expert speak, − Phased release of inventory competition profiling as key inputs to − Approved projects enab
Slide 10: Mahindra Lifespaces: Well recognized and awarded brand
1 Mahindra Lifespaces: Well recognized and awarded brand Key awards ISO certifications Recognized as one of ‘India’s Top 10 Builders’ by CII-ITC Sustainability Construction World and Award 2012 for strong Construction World commitment to Interiors for the fourth sustainability consecutive year in 20
Slide 11: Key investment themes
Key investment themes 1 7 Supportive Parentage and industry brand fundamentals Successfully developing two 2 Experienced large format 6 management integrated team business cities Track record of Land inventory to execution with accommodate focus on future growth sustainability Consistent financial 3
Slide 12: Successfully developing two large format integrated business cities
2 Successfully developing two large format integrated business cities Developing two large format integrated business cities at Chennai and Jaipur under public private partnership (PPP) model Partnered with TIDCO (11% stake) for Chennai to facilitate the development Partnered with RIICO for Ja
Slide 13: Destination of choice for world class customers
2 Destination of choice for world class customers Chennai Jaipur Marquee customers (60+ customers as of Mar-14) Marquee customers (50+ customers as of Mar-14) Auto Ancillary Apparel Handicrafts DTA SEZ IT SEZ SEZ DTA Engg. SEZ IT SEZ SEZ Large format integrated business cities have well diversified
Slide 14: Experience from Chennai and Jaipur developments
2 Experience from Chennai and Jaipur developments Have developed 4,437* acres for industrial, commercial, social and residential use Customers across sectors such as IT/ITES, automotive, auto ancillaries, light engineering, handicrafts Partnership with State governments – two Large scale devel
Slide 15: Key investment themes
Key investment themes 1 7 Supportive Parentage and industry brand fundamentals Successfully developing two 2 Experienced large format 6 management integrated team business cities Track record of Land inventory to execution with accommodate focus on future growth sustainability Consistent financial 3
Slide 16: Track record of execution
3 Track record of execution Strong track record of execution Residential developments Large format integrated business cities – Chennai Construction spend (US$m) 37 69 33 30 59 17 9 9 7 38 4 24 FY11 FY12 FY13 FY14 Sales value (US$m) Area sold (acres) FY11 FY12 FY13 FY14 Large format integrated busin
Slide 17: City wise execution experience
3 City wise execution experience Ongoing projects Residential developments Est. saleable Sales Revenue Total area – 12.38 mn sq ft* MLDL area % sold % Value Recognised Location Project Name Mumbai (22.7%) Holding mn MLDL (area)3 completion1 till date till date2 sq ft share (US$m) (US$m) NCR (23.6%)
Slide 18: Realizations grow as projects progress
3 Realizations grow as projects progress Growth of realisation across select residential projects Large format integrated business cities City Chennai NCR Mumbai Pune Hyderabad Chennai Project Iris Court Aura Eminente Royale Ashvita 31 25 15 14 15,738 FY11 FY12 FY13 FY14 Jaipur 15 Sale price (INR pe
Slide 19: Sustainability: A core business value
3 Sustainability: A core business value Environmental initiatives for “Green Developments” Amongst one of 18 projects for Clinton Climate Initiative’s Climate+ development program (CCI)* Registered with Indian Green Building Council (IGBC) – Recognized as the 3rd largest contributor to the count
Slide 20: Sustainability: A core business value (contd.)
3 Sustainability: A core business value (contd.) Social community initiatives Well established Standard Operating Parameters (SOPs) as per standards set by Building Sustainable Productivity through Occupational Health and Safety Management System (BS OHSAS 18001:2007 certification) Dedicated qua
Slide 21: Key investment themes
Key investment themes 1 7 Supportive Parentage and industry brand fundamentals Successfully developing two 2 Experienced large format 6 management integrated team business cities Track record of Land inventory to execution with accommodate focus on future growth sustainability Consistent financial 3
Slide 22: Consistent financial performance…
4 Consistent financial performance… Operating Income (US$m) Witnessed consistent performance driven by – Focus on execution – Adding high quality land inventory 102 117 123 118 FY11 FY12 FY13 FY14 – Improving price realisation at MWC Company reported EBITDA improved margin at operating level in
Slide 23: …has balanced leverage and low cost of debt
4 …has balanced leverage and low cost of debt Net Debt* (US$m) Net Debt (US$m) Net Debt/Equity 0.96 Net Debt / Equity is 0.55 currently less than 1.0 0.31 0.22 Cost effective funding 40 60 118 202 – Raised INR5bn FY11 FY12 FY13 FY14 (US$83m) in Apr-13 through listed NCDs at cost of 10.78% p.a. I
Slide 24: Key investment themes
Key investment themes 1 7 Supportive Parentage and industry brand fundamentals Successfully developing two 2 Experienced large format 6 management integrated team business cities Track record of Land inventory to execution with accommodate focus on future growth sustainability Consistent financial 3
Slide 25: Land inventory to accommodate future growth
5 Land inventory to accommodate future growth Residential projects Residential land inventory Est. Saleable Projects snapshot** (mn sq ft) Category Location Name of the Project MLDL Area ** Holding Chennai mn sq ft Land holding located within Other cities Forthcoming Projects MWC Chennai New Phases
Slide 26: Focus on quick turn-around
5 Focus on quick turn-around Land to design Key enablers Land for residential projects is considered as inventory Dedicated teams for key markets Project conceptualisation moves parallel to acquisition Strong understanding of local market conditions and of land parcels during the due diligen
Slide 27: Key investment themes
Key investment themes 1 7 Supportive Parentage and industry brand fundamentals Successfully developing two 2 Experienced large format 6 management integrated team business cities Track record of Land inventory to execution with accommodate focus on future growth sustainability Consistent financial 3
Slide 28: Experienced Board of Directors
6 Experienced Board of Directors Director since Brief profile – Key leadership roles Education Chairman of Mahindra Holidays & Resorts Non – Executive Director of Mahindra & Mahindra Holds degree in Law Arun K. Nanda Apr, 2001 Chairman Emeritus of the Indo-French Chamber of Commerce from the
Slide 29: Matrix structure for management team
6 Matrix structure for management team Managing Director & CEO Anita Arjundas Large format integrated Corporate Residential businesses business cities CEO - IC * Head-Business Development Head-Architecture & Design Head – Projects Affordable housing West Business Head – South(Residential)** Business
Slide 30: Key investment themes
Key investment themes 1 7 Supportive Parentage and industry brand fundamentals Successfully developing two 2 Experienced large format 6 management integrated team business cities Track record of Land inventory to execution with accommodate focus on future growth sustainability Consistent financial 3
Slide 31: Indian Real estate sector: Poised for growth
7 Indian Real estate sector: Poised for growth Long term story intact Demand drivers for residential sector Economic growth Real estate’s contribution to India’s GDP expected to double leading to increase in Large scale urbanization from c.6.3% in 2013 to almost c.13% in 2025. Completed disposable
Slide 32: Growth strategy
Mahindra LIFESPACES Growth strategy 32
Slide 33: Company strategy for future growth
Company strategy for future growth Maintain focus Continue to cater to the mid and premium residential segments while expanding into luxury offerings on core In advanced stages of structuring an “affordable housing” product business; Drawing upon learnings from Chennai and Jaipur integrated bu
Slide 34: Glossary
Glossary Classification of projects is as under: a. Completed: projects where construction has been completed CII Confederation of Indian Industry and completion certificates have been granted by the relevant authorities DTA Domestic Tariff Area b. Ongoing: projects where (i) all title or developmen
Slide 35: Appendices
Mahindra LIFESPACES Appendices SFT Tro Ele: . stots Ww — i Meade Rae . \ E A ae 35
Slide 36: Recent developments: Real Estate Regulation and Residential Development Bill, 2013
Recent developments Provision Analysis Impact on Mahindra Lifespaces Project launch possible only after all Registration with Real Estate Regulatory No impact – Company does not launch projects regulatory approvals and receipt of Authority prior to sale pending approvals commencement certifica
Slide 37: Disclaimer
Disclaimer This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase or sell any securities. This presentation should not be considered as a recommendation that any investor should subscribe for or purchase a
Slide 38: Thank You
Thank You 38
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