Phoenix Mills Ltd. · NSE:PHOENIXLTD
Phoenix Mills — The Phoenix Mills — Shareholder Meeting (September 2022)
50 slides from Phoenix Mills's shareholder meeting presentation, Sep 20, 2022
Slide 1: Cover letter to stock exchanges
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 September 20, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchan
Slide 2: 117th AGM Presentation: Shaping our Tomorrow, Always
The Phoenix Mills Ltd. 117th AGM Presentation 20 September 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
Slide 3: India's largest retail mall owner with ~13 msft GLA by FY26
India’s largest retail mall owner with ~13 msft GLA by FY26 GLA of GLA across 9 operational ~7 msft under-development & ~6 msft RETAIL malls in 6 cities under-planning RETAIL Leased occupancy EBITDA margin >100% in Retail Malls Across Operational ~98% Malls Retail EBITDA Growth Consumption Growth ~2
Slide 4: Creating destinations of the future
Creating destinations of the future Indicative Render 3
Slide 5: A palatial retail experience spread over 15 acres
A palatial retail experience spread over 15 acres Indicative Render 4
Slide 6: 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 *Data as of Q1FY23 Gross leasable area is an estimate based on current plans and market/company norms and is subject to change based o
Slide 7: Case Study: Attractive starting yields on Phoenix Palassio
Case Study: Attractive starting yields on Phoenix Palassio Retail GLA of ~0.9 msft – ~97% leased occupancy Q1 FY23 Trading Density – ~Rs. 1,294 psf Q1 FY23 rental rate – ~Rs 114 pspm* FY22 Gross Block ~Rs. 829 cr Estimated Annualized ~Rs. 122 cr FY23 Rental *pspm = per sft per month Note: Data as of
Slide 8: The Retail Destination of Madhya Pradesh
The Retail Destination of Madhya Pradesh PLANNED Indicative Render CURRENT STATUS OF WORK IN PROGRESS 7
Slide 9: Opulent Grand Arrivals, Venetian inspired Chandeliers & Glasswork
Opulent Grand Arrivals, Venetian inspired Chandeliers & Glasswork ▪ Retail GLA of ~1 msft* ▪ ~83% leased* ▪ Opulent grand arrivals ▪ Magnificent chandeliers in sky lit atrium ▪ Landscaped gardens ▪ Spectacular Musical fountains ▪ Interiors inspired by the beauty of Italy Indicative Render *Data as o
Slide 10: The Luxury Retail Destination of Gujarat
The Luxury Retail Destination of Gujarat PLANNED Indicative Render 9
Slide 11: Timeless Luxury
Timeless Luxury ▪ Retail GLA of ~0.77 msft* ▪ ~98% leased* ▪ Luxurious atrium with green art and elegant cafés ▪ Deluxe 9 Audi multiplex ▪ ~20,000+ sft entertainment space Indicative Render *Data as of Q1FY23 10
Slide 12: An Iconic 1.2 msft Mall at Hebbal, Bangalore
An Iconic 1.2 msft Mall at Hebbal, Bangalore PLANNED ACTUAL WORK IN PROGRESS Indicative Render 11
Slide 13: 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 ~76% leased* ▪ Part of an integrated campus – ~4,000 homes; ~4msft office space ▪ Luxury entrances, ~40+ open plan restaurants ▪ Indoor Fan Park Indicative Render *Data as of Q1FY23 Gros
Slide 14: Pune's Gateway to Luxury
Pune’s Gateway to Luxury PLANNED Indicative Render 13
Slide 15: 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 ~73% leased* ▪ Open plan restaurants; eclectic F&B village ▪ Indoor Fan park ▪ 14 screen megaplex ▪ Grand arrival and luxury Indicative Render boulevard *Data as of Q1FY23 14
Slide 16: 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 Indicative Render 15
Slide 17: Alipore, Kolkata: East India's retail destination
Alipore, Kolkata: East India’s retail destination – commenced construction Indicative Render 16
Slide 18: Future-proofing our existing assets by densification
Future-proofing our existing assets by densification Indicative Render 17
Slide 19: 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 20: Phoenix Palladium, Mumbai: Expansion
Phoenix Palladium, Mumbai: Expansion 19
Slide 21: Phoenix Palladium, Mumbai: Expansion
Phoenix Palladium, Mumbai: Expansion 20
Slide 22: Phoenix Palladium, Mumbai: Expansion
Phoenix Palladium, Mumbai: Expansion 21
Slide 23: 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 24: 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 25: Growth by Densification – Phoenix Marketcity, Bangalore
Growth by Densification – Phoenix Marketcity, Bangalore ▪ Office Expansion of ~1msft ▪ Retail Expansion of ~300,000 sft ▪ Proposed 400 Key Grand Hyatt hotel ▪ All approvals in place ▪ Construction commenced Indicative Render 24
Slide 26: 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 Rise Offices at Phoenix Palladium Offices at Phoenix Millennium, Pune Offices at Phoenix MarketCity, Offices at Phoenix MarketCity, Bangalore Pune Offices at Palladium, Chennai 25
Slide 27: Prudent Capital Allocation
Prudent Capital Allocation Indicative Render 26
Slide 28: 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 27
Slide 29: 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. 588 cr platform with CPPIB (ISML)
Slide 30: Optimizing cost of debt and reducing Net Debt levels
… while optimizing cost of debt and reducing Net Debt levels… Effective cost of debt reduced by 174 bps and Net Debt reduced from ~Rs. 4,600 cr (FY20) to ~Rs. 2000 cr (Q1FY23) of which PML share was ~Rs. 1,700 cr 9.19% Effective cost of debt (%) 8.17% 7.90% 7.84% 7.61% 7.45% 7.30% Mar-20 Mar-21 Jun-
Slide 31: Balanced Debt Mix and Prudent Funding Strategy for Growth
Balanced Debt Mix and Prudent Funding Strategy for Growth Effective cost of debt is down ~174bps from end-FY20 to ~7.45% at end-Q1 FY23 At end-Q1 FY23, Net Debt to ✓ ~92% of debt is in the form of LRDs on individual operational Annualized FY23 ~1.5x cash-flow generating assets EBITDA ✓ ~8% for under
Slide 32: Negligible debt on under construction assets
Negligible debt on under construction assets Debt o/s Capex till Operations Asset Name Q1FY23 Q1FY23 Commence Phoenix Citadel, Indore ~Rs. 58 cr ~Rs. 563 cr FY23 Palladium, Ahmedabad ~Rs. 263 cr ~Rs. 734 cr FY23 Retail: FY24 Phoenix Millennium, Pune ~Rs. 8 cr ~Rs. 695 cr Office: FY24 Retail: FY24 Ph
Slide 33: Strategic Partnerships driving the next leg of growth
Strategic Partnerships driving the next leg of growth 32 By the Mekong, The St. Regis, Mumbai
Slide 34: Strategic Partnerships: PML CPPIB Alliance
Strategic Partnerships driving next leg of growth: PML CPPIB Alliance ▪ 5.8 msft GLA of retail Phoenix Marketcity ▪ 4.1 msft GLA of Phoenix Citadel, Phoenix Rise + Under-development offices offices Indore (Office + Retail), + Proposed hotel, Bangalore Mumbai ▪ ~400 keys Grand Hyatt hotel Mall of the
Slide 35: 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 Phoenix Marketcity, Pune Phoenix Marketcity, Kurla ▪ Capital infused by GIC of ~Rs. 1,500 crores ▪ GIC’s equity stake – 33% ▪ Capital infusion to fund potential a
Slide 36: Significant rental upside potential in operational Retail portfolio
Significant rental upside potential in current operational Retail portfolio ~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 year
Slide 37: Strong Operational performance across asset-classes
Strong Operational performance across asset-classes Asset class YTD FY23 Parameter FY22 (April to August 2022) ~Rs. 5,011 cr ~Rs. 3,742 cr Retail Consumption ~72% of FY20 consumption ~126% of Apr-Aug’19 consumption Office Gross Leasing ~400,000 sft ~200,000 sft Occupancy ~59% Aug 2022 Occ.: ~86% Hos
Slide 38: Strong Financial performance across Annuity Assets and Hotels
Strong Financial performance across Annuity Assets and Hotels Asset class Parameter FY22 Q1FY23 Retail EBITDA ~Rs. 786 cr ~Rs. 325 cr 27% over Q1 FY20 Office Total Income ~Rs. 158 cr ~Rs. 40 cr 61% over Q1 FY20 Hospitality* EBITDA ~Rs. 32 cr ~Rs. 32 cr 26% over Q1 FY20 37 Note: Information pertainin
Slide 39: 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 38
Slide 40: Residential Portfolio – Significant free cash flows from inventory
Residential Portfolio – Significant free cash flows from ready inventory and under-construction inventory Average Price achieved in Q1FY23 ~Rs. 16,535 psf Receivable against sold inventory Gross value of inventory* Value of ~Rs. 250 cr >Rs. 2,750 cr inventory* > Rs. 2,500 cr Inventory of saleable ar
Slide 41: 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 42: New age initiatives
New age initiatives Download the Phoenix Nhance app to book your table at any Phoenix Palassio restaurant in easy steps. PHOENIX bahence. | your bills on the ix Nhance app and points to redeem uchers fram top brands. PHOENIX sheace Book your table in seconds at any Phoenix Palassio restaurant by bec
Slide 43: 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 44: Native Customer Reward Program - Phoenix Nhance
Native Customer Reward Program - Phoenix Nhance Phoenix Palladium, Mumbai Phoenix MarketCity, Live across 6 Malls Bangalore 650,000 active members Phoenix MarketCity, Chennai Delivering experience enhancing services like Phoenix MarketCity, parking, baggage drops! Pune Expanding gratification Phoeni
Slide 45: ESG & CSR
ESG & CSR 44
Slide 46: 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 47: 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 48: 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 49: 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 50: Thank you
Thank you Madhurima Kane Email: madhurima.kane@phoenixmills.com Website: https://www.thephoenixmills.com/investors 49
The Phoenix Mills — Shareholder Meeting (September 2022) on 6ix