Prozone Realty Ltd · NSE:PROZONER
Prozone Realty — Prozone Intu Properties — Q2 FY18 Earnings Presentation
50 slides from Prozone Realty's earnings presentation, December 2017
Slide 1: Upward And Forward – Q2 FY18 Results Update Presentation
Upward And Forward Q2 FY18 RESULTS UPDATE PRESENTATION December – 2017 PROZONE INTU PROPERTIES LIMITED 0
Slide 2: Prozone Intu on a strong footing
Prozone Intu on a strong footing • Grand opening for Coimbatore mall with glitz and glamour, one of the largest mall in Coimbatore of international standards with globally renowned brands • Aurangabad and Coimbatore mall leased out space currently at 82% and 85% respectively, annuity income to incre
Slide 3: Regulatory tailwind underpinning sector re-rating
Regulatory tailwind underpinning sector re-rating Real Estate (Regulation and Development) Act, 2016 (RERA) became effective from 1st May 2016 State notification for RERA fully completed, higher than 25 states and union territories in August Extremely positive in the long run as reputed develo
Slide 4: Q2 FY18 – Key Highlights
Q2 FY18 – KEY HIGHLIGHTS Fig in INR mn 250.0 234.5 250 201.8 200.0 137 200 58% 150 150.0 113 56% 100.0 100 16% 50.0 88 97 42% 50 44% 0 0.0 Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Revenue (Rs mn) Sale of Premises Sale of Services¹ 100 90 38.2% 38.8% 60 40.0% 50 51 80 70 91 30.0% 40 60 77 50 20.0% 30 40 10.0%
Slide 5: Quarterly Business Update
QUARTERLY BUSINESS UPDATE • Q2FY18 revenues were higher with increase in sale of services along with slight increase sale of premises- • Coimbatore mall became operational from 21st July 2017 leading significant increase in rental revenue • Revenue from sale of services remains strong with over 40 b
Slide 6: Quarterly Business Update
QUARTERLY BUSINESS UPDATE • Initiation of the Asset Monetization phase – • Nagpur project has healthy profitability which is expected to be recognized over the next few quarters • Coimbatore residential project is expected to start in Q1 FY19 • Aurangabad PTC construction progressing well, expected
Slide 7: Our Current Focus Areas
OUR CURRENT FOCUS AREAS OPERATIONAL ASSET PERFORMANCE SUCCESSFUL COMPLETION & LEASING OF OPTIMIZATION COIMBATORE RETAIL CENTRE • Grand opening for Coimbatore mall with glitz and glamour • Aurangabad Mall lease currently stands at 82% • Leasing level 85% • Further improve occupancy level & Brand Mix
Slide 8: Discussion Summary
DISCUSSION SUMMARY • Quarterly Business Update • Financial Results • Asset Snapshot • Aurangabad • Coimbatore • Nagpur • Indore • Annexure 7
Slide 9: Quarterly Business Update – Aurangabad Mall
QUARTERLY BUSINESS UPDATE Retail– Aurangabad Mall update - Build & Lease Model • Revenue from sale of services remains robust with over 40 brands crossed threshold limits at Aurangabad • Leasing currently stands at 82% including the stores under tenant fit-outs • Installing solar panel over mall und
Slide 10: Quarterly Business Update – Nagpur and Coimbatore
QUARTERLY BUSINESS UPDATE • Retail – Nagpur: Retail design finalized and approvals have been applied, expected to start construction in FY2019 • Retail– Coimbatore Mall • Grand opening for Coimbatore mall with glitz and glamour, largest mall in the city of international standards with globally renow
Slide 11: Brand Partner
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Slide 12: Quarterly Business Update – Build & Sell Model
QUARTERLY BUSINESS UPDATE Update - Build & Sell Model • 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
Slide 13: Quarterly Business Update – Coimbatore and Indore Residential
QUARTERLY BUSINESS UPDATE • Residential – Coimbatore • Soft launch initiated for the Coimbatore Residential Project, 95 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 customers. • Already
Slide 14: Financial Results: Consolidated Income Statement
FINANCIAL RESULTS: CONSOLIDATED INCOME STATEMENT Rs. Mn. Q2 FY18 Q2 FY17 YoY % Revenue from Real Estate Projects 97.5 88.3 10% Lease Rental & Related Income 109.5 80.2 37% Total Income from operations 207.0 168.5 23% Other Income 27.5 33.3 -17% Total Income including other income 234.5 201.8 16% EBI
Slide 15: Asset Snapshot
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Slide 16: Retail Update Aurangabad Mall
RETAIL UPDATE AURANGABAD MALL Mall Matrix Key Operating Parameters Q2 FY2017-18 Gross Leased Area (lakh sq.ft.) 5.57 Current Leasing Status 82% Current Occupancy Status 72% Number of Stores Signed 106 Retailer Sales (Rs. Mn.) 416 Average Monthly Trading Density (Rs/sqft) 286 Footfalls (Mn.) 1.8 21.9
Slide 17: Financial Snapshot Aurangabad Mall
FINANCIAL SNAPSHOT AURANGABAD MALL Operational Details (Rs. Mn.) Q2 FY18 Q1 FY18 YoY % Area Leased (lakh sq. ft.) 5.57 5.41 % Occupancy 82% 80% Rental Income 43.9 49.0 -10.3% Recoveries (CAM & Other) 37.4 38.4 -2.5% Total Income 112.0 116.3 -3.6% EBIDTA 63.7 57.7 10.3% EBIDTA Margin % (as % of Total
Slide 18: New Stores Opened in Q2 FY18 Aurangabad Mall
NEW STORES OPENED IN Q2 FY18 AURANGABAD MALL Me n Moms VIVO CAMERA & MUSIC 17
Slide 19: Brand Partners Aurangabad Mall
BRAND PARTNERS AURANGABAD MALL Note: Big bazaar started operations from Dec 2017. 18
Slide 20: Events Aurangabad Mall
EVENTS AURANGABAD MALL Friendship Day 6th Aug 2017 Independence Day Celebration 15th Aug 17 RED FM COLLEGE KA TASHAN - 10 SEP 2017 DANDIYA 25 – 29 SEP 2017 19
Slide 21: Commercial Update Aurangabad PTC Phase 1
COMMERCIAL UPDATE AURANGABAD PTC PHASE 1 Prozone Trade Center (PTC) Phase 1 Q2 FY 2017-18 Total Area Launched (sqft) 190,528 Total Units Launched (No) 117 Total Area Sold (sqft) 184,796 % Total Area Booked 96% Prozone Trade Centre (PTC) Phase 1 Avg. Sale Rate per sqft (Rs) 3,258 • Construction of Pr
Slide 22: Commercial Update Aurangabad PTC Phase
COMMERCIAL UPDATE AURANGABAD PTC PHASE 1 21
Slide 23: Retail Update Aurangabad – Saral Bazar
RETAIL UPDATE AURANGABAD – SARAL BAZAR Saral Bazar Phase 1 Q2 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 80-150 sqft. Avg.
Slide 24: Retail Update Aurangabad – Saral Bazar
RETAIL UPDATE AURANGABAD – SARAL BAZAR Exhibitions Shops New Operational Shops 23
Slide 25: Project Update Coimbatore - Residential
PROJECT UPDATE COIMBATORE - RESIDENTIAL • Location – • Prozone land parcel is Located on 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 Size – • Retail development to have 664,000
Slide 26: Project Update Coimbatore – Retail & Residential
PROJECT UPDATE COIMBATORE – RETAIL & RESIDENTIAL • Residential Update - • Soft launch initiated for the Coimbatore Residential Project, 95 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 c
Slide 27: Financial Snapshot Coimbatore Mall
FINANCIAL SNAPSHOT COIMBATORE MALL Operational Details (Rs. Mn.) Q2 FY18 Area Leased (lakh sq. ft.) 4.23 % Occupancy 85% Rental Income 21.0 Recoveries (CAM & Other) 16.6 Total Income 37.6 EBIDTA 8.4 EBIDTA Margin % (as % of Total Income) 22% • With Coimbatore mall operational, corresponding deprecia
Slide 28: Project Update Coimbatore - Retail
PROJECT UPDATE COIMBATORE - RETAIL Strong traction from Premium Anchor Brands 27
Slide 29: Project Update Coimbatore - Retail
PROJECT UPDATE COIMBATORE - RETAIL Strong traction from Premium Anchor Brands 28
Slide 30: Project Update Coimbatore - Retail
PROJECT UPDATE COIMBATORE - RETAIL Strong traction from Premium Brands 29
Slide 31: Marketing Update Coimbatore - Residential
MARKETING UPDATE COIMBATORE - RESIDENTIAL Property Portals – 99 Acres, Magic Bricks 30
Slide 32: Project Update Coimbatore - Residential
PROJECT UPDATE COIMBATORE - RESIDENTIAL Sales & Marketing Office , Show Flat 31
Slide 33: Project Update Coimbatore - Residential
PROJECT UPDATE COIMBATORE - RESIDENTIAL Club House & Infrastructure Work in Progress 32
Slide 34: Project Update Nagpur - Residential
PROJECT UPDATE NAGPUR - RESIDENTIAL • Location – • Prozone Palms is strategically located just off Wardha Road, a prime residential location at Nagpur. • It is in close proximity to the MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur)airport. Prozone Site Airport • Project Size – •
Slide 35: Project Update Nagpur - Residential
PROJECT UPDATE NAGPUR - RESIDENTIAL • Sales Update & Revenue Recognition Update – • Project complied with RERA requirement, 336 units will be delivered under the project, revenue recognition continuing in a phased manner • Residential Construction update – • Construction of Sales Office, Sample Flat
Slide 36: Project Update Nagpur - Residential
PROJECT UPDATE NAGPUR - RESIDENTIAL Sales Office & Show Flat 35
Slide 37: Project Update Nagpur - Residential
PROJECT UPDATE NAGPUR - RESIDENTIAL Tower Nearing Completion 36
Slide 38: Project Update Nagpur - Residential
PROJECT UPDATE NAGPUR - RESIDENTIAL 37
Slide 39: Project Update Indore - Residential
PROJECT UPDATE INDORE - RESIDENTIAL • Location – • Prozone Palms is situated on Kanadia Road, a prime residential Ring Road location at Indore. Kanadia Road • Well connected by Bypass road, Bypass proposed RE-2, it is strategically located within a 5 min drive from high end residential areas like Sa
Slide 40: Project Update Indore - Residential
PROJECT UPDATE INDORE - RESIDENTIAL • Residential update – • Infrastructure development work in progress. • Marketing Office and Sample Flat Civil structure and Interiors work completed. • Access road as well as Site Infrastructure completed. • Club House Civil structure completed and Interiors work
Slide 41: Project Update Indore - Residential
PROJECT UPDATE INDORE - RESIDENTIAL Landscape & Boundary wall Club House & Swimming Pool Access Road Kids play area & Landscape 40
Slide 42: Corporate Overview
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Slide 43: Company Overview – About Us Brief Overview
COMPANY OVERVIEW – ABOUT US BRIEF OVERVIEW • 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 • Prozone Intu strat
Slide 44: Understanding Our Business Model Business Strategy
UNDERSTANDING OUR BUSINESS MODEL BUSINESS STRATEGY Business Strategy – • Develop Large scale Land Parcels for Mixed Use development. • 75% of the Land to be developed as Residential & Commercial – Build & Sell model • 25% of the Land to be developed as Retail – Build & Lease Model • The Company foll
Slide 45: Understanding Our Business Model Business Strategy
UNDERSTANDING OUR BUSINESS MODEL BUSINESS STRATEGY Regional Malls Yield under own Lease Management Model Debt Free Large scale Assets land parcels FUTURE Profits & GROWTH for mixed use developments Shareholder Residential & Cash Value Commercial Sales Developments Model • Locations selected in high
Slide 46: Company Overview – Our Board of Directors
COMPANY OVERVIEW – ABOUT US OUR BOARD OF DIRECTORS 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 Real Estate Inv
Slide 47: Company Overview – Our Board of Directors
COMPANY OVERVIEW – ABOUT US OUR BOARD OF DIRECTORS 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, managing one
Slide 48: Key Shareholders Trading Update
Key shareholders Trading update Shareholding in % – Sep 2017 Key Investors Holding (%) ACACIA Partners 3.25% Others, Rakesh Jhunjhunwala 2.46% 31.0% Promoters, 32.0% Aditya Chandak & Family 1.98% Ramesh Damani & Family 1.21% Cavendish AM 1.18% FII, 4.6% Elara India Opportunities Fund 0.17% Intu Prop
Slide 49: Important Note Disclaimer
IMPORTANT NOTE DISCLAIMER 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 subscription agre
Slide 50: Thank You
THANK YOU Anurag Garg, Chief Finance Officer (CFO) Ravindra Bhandari Contact: 022 30653111 Dickenson Seagull IR Contact: +91 92836 14197 Email: anurag.garg@prozoneintu.com Email: ravindra.bhandari@dickensonIR.com Website: www.prozoneintu.com Website: www.dickensonir.com 49
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