Phoenix Mills Ltd. · NSE:PHOENIXLTD
Phoenix Mills — The Phoenix Mills — Q2 & H1 FY20 Earnings Presentation
69 slides from Phoenix Mills's earnings presentation, Nov 11, 2019
Slide 1: Cover letter to stock exchanges
i. .-,11 THE PHOENIX ,p' MILLS LIMITED Corp. Of!ice : 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.: L 17100MH1905PLC000200 November 11, 2019 BSE Limited National Stock Exchange of India
Slide 2: Investor Presentation Q2 & H1 FY20 Results
Investor Presentation Q2 & H1 FY20 Results Phoenix MarketCity Bangalore
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 See table on Retail Portfolio Under-development 4.90 - 4.90 previous page Fountainhead Towers 2-3, Pune - 0.55 - 0.55 Office Portfolio Commercial offices on top of Palladium Under- - 0.42 - 0.42
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 19 FY 24 Retail 5.96 msf 2x 11.71 msf Commercial 1.38 msf 4x 5.28 msf Hospitality 593 keys 593 keys Residential 3.20 msf 3.20 msf 6
Slide 8: Q2 & H1 FY20 Highlights
Q2 & H1 FY20 Highlights Our Portfolio Financial Results Business Performance Annexure Phoenix MarketCity Mumbai
Slide 9: Q2 & H1 FY20 Operational Highlights
Q2 & H1 FY20 Operational Highlights Operational H1 FY20 Retail consumption increased by 1% yoy to Rs. 16,948 mn in Q2 FY20 and 3% yoy to Consumption 3% Rs. 34,762 mn in H1 FY20 Rs. 34,762 mn Retail rental Income is up 7% yoy in Q2 FY20 at Rs. 2,594 mn; Retail EBITDA came in strong at Rs. 2,468 m
Slide 10: Q2 & H1 FY20 Financial Highlights
Q2 & H1 FY20 Financial Highlights Financial Consolidated Income from operations is up 3% YoY to Rs. 4,151 mn in Q2 FY20 while its H1 FY20 Revenue up 26% in H1 FY20 to Rs. 10,301 mn Rs. 10,301 mn 26% Consolidated Profit after tax & minority interest is up 6% YoY to Rs. 657 mn in Q2 FY20 H1 FY20 C
Slide 11: Financial Results
Q2 & H1FY20 Highlights Our Portfolio Financial Results Business Performance Annexure Phoenix MarketCity Pune
Slide 12: Q2 & H1 FY20 Standalone P&L
Q2 & H1 FY20 Standalone P&L Q2 Q2 YoY % H1 H1 YoY % (Rs. mn) FY20 FY19 Change FY20 FY19 Change Income from operations 1,131 1,086 4% 2,264 2,178 4% H1 FY20 EBITDA EBITDA 665 674 1,365 1,362 - Rs. 1,365 mn EBITDA Margin (%) 59% 62% 60% 63% Profit Before Tax and 658 781 -16% 1,116 1,228 -9% exceptiona
Slide 13: Q2 & H1 FY20 Consolidated P&L
Q2 & H1 FY20 Consolidated P&L YoY % YoY % (Rs. mn) Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 Change Change Income from 4,151 4,047 3% 10,301 8,179 26% operations H1 FY20 EBITDA Retail 3,024 2,839 7% 6,070 5,744 6% 28% Residential 112 243 -54% 2,183 524 317% Rs. 5,034mn Commercial 264 161 64% 514 310 66% Hospi
Slide 14: Business-wise Consolidated P&L breakup
Business-wise Consolidated P&L breakup H1 FY20 Core Portfolio PAT Rs. 1,516 H1 H1 H1 FY20 mn Particulars FY20 FY19 % change FY19 Consolidated Core Portfolio PAT (Rs. mn) 1,516 1,196 27% 3,222 PAT Residential PAT (Rs. mn) 445 22 - 988 Rs.1,961 mn H1 FY20 Consol PAT (Rs. mn) 1,961 1,218 61% 4,210 Resi
Slide 15: Debt Profile as on 30th Sept 2019
Debt Profile as on 30th Sept 2019 Average cost of borrowing up marginally to 9.41% Status Asset Class Amount (Rs. mn) Retail 32,484 87% of Debt is long-term. Debt on the operational Hospitality 5,398 portfolio is primarily lease-rental discounting for Operational Commercial 2,574 retail and comm
Slide 16: Stable Debt across Operating Assets
Stable Debt across Operating Assets Debt on Operational portfolio (Rs. mn) 42,480 41,827 • Debt on Operational portfolio remains 41,314 41,256 41,490 41,162 steady 40,121 • Increase in debt on Under-development portfolio on account of gradual draw-down of Phoenix Palassio development in FY18 Q1FY19
Slide 17: 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% 11.0% 11.5% 11.0% 10.5% 10.2% 10.0% 9.38% 9.36% 9.41% 9.5% 8.94% 9.14% 9.0% 3,546 4,579 4,757 8.5% 8.0% Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Sep-18 Mar-19 Sep-19 Jun
Slide 18: Business Performance - Retail
Q2 & H1 FY20 Highlights Our Portfolio Financial Results Business Performance - Retail Annexure Phoenix MarketCity Bangalore
Slide 19: Q2 FY20 – Retail Key Highlights
Q2 FY20 – Retail Key Highlights 4,017 Consumption (Rs. mn) Total Consumption – Rs. 16,948 mn, up 1% yoy 3,205 3,144 3,013 2,378 728 463 HSP & Palladium PMC Bengaluru PMC Pune PMC Mumbai PMC Chennai & Phoenix United Phoenix United Palladium Lucknow Bareilly 0% 1% 7% 4% 1% 6% 2,816 Trading Density (Rs
Slide 20: Q2 FY20 – Retail Key Highlights
Q2 FY20 – Retail Key Highlights 879 Rental Income (Rs. mn) Total Rental Income – Rs. 2,594 mn, up 7% yoy 427 475 360 320 79 55 HSP & Palladium PMC Bengaluru PMC Pune PMC Mumbai PMC Chennai & Phoenix United Phoenix United Palladium Lucknow Bareilly 5% 4% 11% 7% 19% 4% 767 Asset EBITDA (Rs. mn) Total
Slide 21: H1 FY20 – Retail Key Highlights
H1 FY20 – Retail Key Highlights 8,245 Consumption (Rs. mn) Total Consumption – Rs. 34,762 mn, up 3% yoy 6,570 6,475 5,973 4,967 1,542 992 HSP & Palladium PMC Bengaluru PMC Pune PMC Mumbai PMC Chennai & Phoenix United Phoenix United Palladium Lucknow Bareilly 0% 5% 8% 9% 2% 8% 2,921 Trading Density (
Slide 22: H1 FY20 – Retail Key Highlights
H1 FY20 – Retail Key Highlights 1,760 Rental Income (Rs. mn) Total Rental Income – Rs. 5,190 mn, up 7% yoy 859 942 719 644 156 111 HSP & Palladium PMC Bengaluru PMC Pune PMC Mumbai PMC Chennai & Phoenix United Phoenix United Palladium Lucknow Bareilly 5% 5% 12% 8% 29% 8% Asset EBITDA (Rs. mn) Total
Slide 23: Stable Performance at High Street Phoenix
PML owned Assets incl. High Street Phoenix & Palladium Stable Performance at High Street Phoenix Down 0% yoy Consumption (Rs. mn) 4,574 4,755 4,057 4,251 4,025 4,013 4,228 4,017 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Rental Income (Rs. mn) Up 5% yoy 886 868 881 879 839 839 8
Slide 24: PML owned Assets incl. High Street Phoenix & Palladium
PML owned Assets incl. High Street Phoenix & Palladium % yoy % yoy Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 growth growth Rental Income (Rs. mn) ^ 879 839 5% 1,760 1,678 5% Recoveries 252 247 2% 504 500 1% (CAM and other) (Rs. mn) Total Income (Rs. mn) 1,131 1,086 4% 2,264 2,178 4% Asset EBITDA (Rs. mn) 767
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 0.20 msf • Centrium: Leasable area of 0.12 msf • Art Guild House: Leasable area of 0.16 msf Pr
Slide 29: Phoenix MarketCity Bangalore
Phoenix MarketCity Bangalore Steady improvement in Rental Income and EBITDA Up 1% yoy Consumption (Rs. mn) 3,299 3,100 3,183 3,514 3,364 3,205 2,859 3,048 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Rental Income (Rs. mn) Up 4% yoy 361 359 360 339 345 347 329 322 Q3 FY18 Q4 FY18
Slide 30: Phoenix MarketCity Bangalore
Phoenix MarketCity Bangalore % yoy % yoy Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 growth growth Rental Income (Rs. mn) 360 346 4% 719 685 5% Recoveries 183 174 5% 367 345 6% (CAM and other) (Rs. mn) Total Income (Rs. mn) 543 520 4% 1,086 1,030 5% Asset EBITDA^ (Rs. mn) 373 363 3% 758 708 7% EBIDTA Margin 104
Slide 31: Phoenix MarketCity Pune
Phoenix MarketCity Pune Strong rental Income growth contributed to superior EBITDA growth Up 7% yoy Consumption (Rs. mn) 2,969 3,045 3,405 3,331 3,144 2,616 2,937 2,820 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Rental Income (Rs. mn) Up 11% yoy 380 387 416 406 432 427 357 360 Q
Slide 32: Phoenix MarketCity Pune
Phoenix MarketCity Pune % yoy % yoy Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 growth growth Rental Income (Rs. mn) ^ 427 385 11% 859 767 12% Recoveries 200 176 14% 406 408 0% (CAM and other) (Rs. mn) Total Income (Rs. mn) 627 561 12% 1,265 1,175 8% Asset EBITDA (Rs. mn) 436 397 10% 876 778 13% EBIDTA Margin 1
Slide 33: Phoenix MarketCity Mumbai
Phoenix MarketCity Mumbai PMC Mumbai continues strong performance, establishing itself as a premium destination mall Up 4% yoy Consumption (Rs. mn) 2,654 2,356 2,589 2,378 2,320 2,266 2,283 1,970 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Rental Income (Rs. mn) Up 7% yoy 284 281
Slide 34: Phoenix MarketCity Mumbai
Phoenix MarketCity Mumbai % yoy % yoy Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 growth growth Rental Income (Rs. mn) ^ 320 300 7% 644 595 8% Recoveries 221 178 24% 402 361 11% (CAM and other) (Rs. mn) Total Income (Rs. mn) 542 478 13% 1046 956 9% Asset EBITDA (Rs. mn) 332 294 13% 654 578 13% EBIDTA Margin 103
Slide 35: Phoenix MarketCity Chennai & Palladium
Phoenix MarketCity Chennai & Palladium Category changes in the retail product mix have had a positive impact on rental income Down 4% yoy Consumption (Rs. mn) 3,065 3,137 3,195 2,960 3,013 2,747 2,609 2,710 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Rental Income (Rs. mn) Up 8%
Slide 36: Phoenix MarketCity Chennai & Palladium
Phoenix MarketCity Chennai & Palladium % yoy % yoy Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 growth growth Rental Income (Rs. mn) ^ 475 439 8% 942 880 7% Recoveries 220 256 455 457 (CAM and other) (Rs. mn) Total Income (Rs. mn) 695 695 1,397 1,337 5% Asset EBITDA (Rs. mn) 440 432 2% 936 908 3% EBIDTA Margin 9
Slide 37: 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 38: Phoenix Palassio, Lucknow
Phoenix Palassio, Lucknow The Biggest Lifestyle District Consumption Hub in Lucknow Indicative Render 37
Slide 39: Phoenix Palassio Lucknow - Site Pictures
Phoenix Palassio Lucknow - Site Pictures Construction of the mall is complete; façade, interiors & fit-outs in progress 38
Slide 40: Phoenix Palassio Lucknow - Site Pictures
Phoenix Palassio Lucknow - Site Pictures Mall targeted to operationalize in H2FY20 39
Slide 41: Phoenix Palassio Lucknow - Site Pictures
Phoenix Palassio Lucknow - Site Pictures Mall targeted to operationalize in H2FY20 40
Slide 42: Phoenix Palassio Lucknow - Site Pictures
Phoenix Palassio Lucknow - Site Pictures Mall targeted to operationalize in H2FY20 41
Slide 43: Palladium Ahmedabad
Palladium Ahmedabad The Luxury mall of Gujarat Indicative Render 42
Slide 44: Palladium, Ahmedabad - Site Pictures
Palladium, Ahmedabad - Site Pictures Excavation in complete, foundation work is currently on 43
Slide 45: Phoenix MarketCity Wakad, Pune
Phoenix MarketCity Wakad, Pune The New Epicentre for West Pune Indicative Render 44
Slide 46: Phoenix MarketCity Wakad, Pune - Site Pictures
Phoenix MarketCity Wakad, Pune - Site Pictures Excavation is complete, foundation & retaining wall work is in progress 45
Slide 47: Mall of Asia, Bangalore
Mall of Asia, Bangalore The Largest Retail led Mixed-use development in Bangalore Indicative Render Concept Architect – Callison46
Slide 48: Mall of Asia, Bengaluru - Site Pictures
Mall of Asia, Bengaluru - Site Pictures Excavation is 89% complete, Foundation work in on at the site 47
Slide 49: Phoenix MarketCity Indore
Phoenix MarketCity Indore The biggest Retail Destination of Madhya Pradesh Indicative Render 48
Slide 50: Phoenix MarketCity Indore - Site Pictures
Phoenix MarketCity Indore - Site Pictures Construction in Progress 49
Slide 51: Commercial asset update
Commercial asset update Fountainhead Remarks Pune Leasable area: 0.17 msf - 0.16 msf (94%) area has been leased. Tower 1 0.09 msf is currently operational as of Sept 2019 Leasable area: 0.22 msf. Construction completed upto 13th floor Tower 2 of this 16 floor tower Leasable area: 0.35 msf. Construct
Slide 52: 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 53: Business Performance - Commercial
Q2 & H1 FY20 Highlights Our Portfolio Financial Results Business Performance - Commercial Annexure
Slide 54: Our Annuity Income Generating Commercial Portfolio
Our Annuity Income Generating Commercial Portfolio OPERATIONAL OFFICE PORTFOLIO (1.80 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 0.20 - 0.20 0.13 Fountainhead –
Slide 55: 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 Q2 FY20 H1 FY20 FY19 FY18 Total Income 156 304 582 396 (Rs. mn) EBITDA 89 167 335 157 (Rs. mn) % of Total Income 57% 55
Slide 56: 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 0.16 106 Paragon Plaza Q2 FY20 H1 FY20 FY19 FY18 Total Income 72 144 358 219 (Rs. mn) EBITDA (Rs. mn) 41 85 213 91 % of Total Income 5
Slide 57: 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 77 Tower 1 Fountainhead – Tower 2 Part of Commercial Portfolio under Development 0.54 – Tower 2 & Tower are currentl
Slide 58: 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 57
Slide 59: Business Performance - Hotels
Q2 & H1 FY20 Highlights Our Portfolio Financial Results Business Performance - Hotels Annexure XXO, The St. Regis, Mumbai
Slide 60: The St. Regis, Mumbai
The St. Regis, Mumbai % yoy % yoy Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 growth growth Revenue from 304 306 -1% 622 600 4% Rooms (Rs. mn) Revenue from F&B and Banqueting 311 294 6% 626 589 6% (Rs. mn) Other Operating 61 67 -9% 125 139 -10% Income (Rs. mn) Total Income 675 668 1% 1,373 1,329 3% (Rs. mn) Ope
Slide 61: Courtyard by Marriott, Agra
Courtyard by Marriott, Agra Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 Revenue from Rooms (Rs. mn) 35 36 72 62 Revenue from F&B and 27 32 61 59 Banqueting (Rs. mn) Other Operating Income 4 0 8 3 (Rs.mn) Total Income (Rs. mn) 66 68 141 124 Occupancy (%) 61% 58% 62% 53% ARR (Rs.) 3,309 3,031 3,332 3,106 60
Slide 62: Business Performance - Residential
Q2 & H1 FY20 Highlights Our Portfolio Financial Results Business Performance - Residential Annexure Kessaku, Bengaluru
Slide 63: Operational Update – Residential Portfolio
Operational Update – Residential Portfolio Revenue recognized Saleable area (msf) Cumulative Collections in Project Name Sales Value (Rs. mn) Area Sold Q2 FY20 (operational) Total Balance (Rs. mn) Area launched (msf)^ (Rs. mn) in Q2 FY20 Cumulative Area Area One Bangalore West, 2.20 1.61 0.59## 1.27
Slide 64: One Bangalore West, Bangalore
One Bangalore West, Bangalore 63
Slide 65: Tower 7 Launched at One Bangalore West
Tower 7 Launched at One Bangalore West • Launched Tower 7 in July 2019 • Received positive response from customers for this launch • ~ 30,000 sq. ft area has been sold in Tower 7 so far across 13 units 64
Slide 66: Annexure
Q2 & H1 FY20 Highlights Our Portfolio Financial Results Business Performance Annexure High Street Phoenix, Mumbai
Slide 67: Shareholding Pattern as on 6th Oct 2019
Shareholding Pattern as on 6th Oct 2019 Shareholding Pattern 2.50% 1.81% Sr. No Top Institutional Investors % Shareholding 1 Nordea Bank 4.59% 9.00% 2 Schroder 3.37% Promoters 3 TT Funds 2.71% FII 4 Fidelity 2.41% DII 27.53% 5 DSP Mutual Fund 1.88% Public 6 ICICI Prudential Mutual Fund 1.67% Corpora
Slide 68: Q2 FY20 Debt Across Subsidiaries
Q2 FY20 Debt Across Subsidiaries Q1 FY20 Debt Q2 FY20 Debt Asset Type SPV Asset Name PML Ownership (Rs.mn) (Rs.mn) PML Standalone High Street Phoenix, Mumbai 100% 8,245 8,453 Classic Mall Phoenix MarketCity, Chennai 50% 6,794 7,410 Development The Crest C (Residential) Phoenix MarketCity, Pune Vamon
Slide 69: Investor contacts
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 6
The Phoenix Mills — Q2 & H1 FY20 Earnings Presentation on 6ix