Phoenix Mills Ltd. · NSE:PHOENIXLTD
Phoenix Mills — The Phoenix Mills — Q2 FY2018 Earnings Presentation
113 slides from Phoenix Mills's earnings presentation, Nov 13, 2017
Slide 1: Stock exchange filing cover letter
uy THE PHOENIX MILLS LIMITED Corp. Office : Shree Laxmi Woolen Mills Estate, 2nd Floor, R.R. Hosiery, Off Dr. E. Moses Rd. Mahalaxmi, Mumbai - 400 011 Tel : (022) 3001 6500 Fax : (022) 3001 6601 CIN No. : L17100MH1905PLC000200 November 13, 2017 The Corporate Relationship Department BSE Limited Phiro
Slide 2: The Phoenix Mills Limited Investor Presentation November 2017
The Phoenix Mills Limited Investor Presentation November 2017 STEADY Performance. PROGRESSIVE Thinking. GROWING Portfolio.
Slide 3: Disclaimer
Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those s
Slide 4: Company Overview
Company Overview Investment Rationale Financial Results Annexure
Slide 5: Our Portfolio
Our Portfolio Developer and manager of prime retail-led assets in city centers, with a gross portfolio of 17.5 million sq. ft spread over 100+ acres of prime land in key gateway cities of India 8 Malls spread over 6 mn sq. ft in 6 major cities Residential Projects under Development with FY17: Consum
Slide 6: Our Portfolio
Our Portfolio MALL PORTFOLIO (6.07 MSF) HSP & Palladium Mumbai 0.74 Phoenix MarketCity Chennai 1.00 Phoenix MarketCity Pune 1.19 Phoenix MarketCity Bangalore 1.00 Phoenix MarketCity Mumbai 1.11 Palladium Chennai 0.22 Phoenix United Lucknow 0.33 Phoenix United Bareilly 0.31 Phoenix Paragon Plaza Mumb
Slide 7: Solid Foundation, Sustainable Growth
Solid Foundation, Sustainable Growth Well balanced Robust retail business model Own, manage and develop iconic, large format, annuity rentals Over INR 58 bn in consumption in FY17, retail-led, integrated mixed use properties CAGR of 22% over FY13-17 Over 17.5 msft in operational Retail, Hospitality,
Slide 8: Presence Across Key Gateway Cities in India
Presence Across Key Gateway Cities in India PRESENCE ACROSS MAJOR CONSUMPTION CENTRES IN INDIA 7
Slide 9: Investment Rationale
Company Overview Investment Rationale Financial Results Annexure
Slide 10: Well Positioned to Deliver Strong Shareholder Return
Well Positioned to Deliver Strong Shareholder Return Investment Rationale India Economic Strong Retail Complimentary Future Growth Financial Metrics Tailwinds Portfolio Asset Classes Outlook • Strong macro tailwinds • First Order Derivative of • Residential Portfolio has • Aim to double current reta
Slide 11: Strong Macro Tailwinds Bode Well for Retail Sector
Investment Rationale Strong Macro Tailwinds Bode Well for Retail Sector
Slide 12: Strong Macro Tailwinds Bode Well for Retail Sector
Strong Macro Tailwinds Bode Well for Retail Sector India Consumption Growth rate Transition from unorganized to organized retail 10.0% 8.7% Organized Unorganized 120.0% 9.0% 8.0% 7.4% 100.0% 6.8% 6.1% 7.0% 6.0% 5.3% 80.0% 5.0% 60.0% 76% 4.0% 3.0% 92% 40.0% 2.0% 1.0% 20.0% 0.0% 24% 0.0% 8% 2012 2013
Slide 13: Urbanization, Disposable Income to drive Consumption
Urbanization, Disposable Income to drive Consumption Increase in per capita disposable income in India … growing urban population Fig in US$ 2,500 2,208 2,027 1,875 35% 34% 2,000 1,748 1,505 1,601 1,617 32% 33% 1,500 31% 1,000 28% 500 0 2013 2014 2015 2016 2017e 2018e 2019e 2001 2010 2014 2015 2016
Slide 14: Retail mall in India: Widening gap of demand and supply
Retail mall in India: Widening gap of demand and supply Mall additions in past three years at all-time lows… … while demand for new rental space will remain robust msf msf 15.0 13.8 15.0 10.7 7.6 10.0 10.0 6.5 6.9 6.2 5.7 5.1 4.1 3.6 4.2 4.3 4.5 4.0 5.0 5.0 3.3 2.7 1.3 1.6 0.0 0.0 -0.3 -5.0 -5.0 200
Slide 15: Key Highlights
Key Highlights Consumption (Rs. bn) Rental Income (Rs. bn) FY13-17 57.8 FY13-17 54.0 CAGR – 22% 49.0 CAGR – 16% 7.7 7.1 40.3 6.5 5.7 25.7 4.2 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13-17 Consolidated Revenue (Rs. bn) FY13-17 Consolidated EBITDA (Rs. bn) 17.8 18.2 CAGR – 36% 16.5 CAGR –
Slide 16: FY17 Key Financial Highlights
FY17 Key Financial Highlights Revenue of INR 18.2 bn EBITDA of INR 8.5bn PAT at INR 1.7bn, up 29% yoy FY13-17 CAGR of 40% FY13-17 CAGR of 34% Consumption of over INR 58 bn Retail rental income of INR 7.7 bn Rental EBITDA at INR 7.2 bn, up FY13-17 CAGR of 22% FY13-17 CAGR of 16% 10% yoy Avg. cost of
Slide 17: PML's evolution into a retail powerhouse
Investment Rationale PML’s evolution into a retail powerhouse 16
Slide 18: PML's evolution into a retail powerhouse
PML’s evolution into a retail powerhouse 1999 - 2005 2006 - 2012 2013 - 2017 FUTURE Evolution of HSP from an Large, city-centric land parcels Focused on establishing Staggered renewals across entertainment and gaming acquired for creating Marketcity malls as market existing portfolio, new as
Slide 19: First Order Derivative of India's Consumption Story
First Order Derivative of India’s Consumption Story • Household incomes to rise as the world’s 7th largest Retail Rental Income to grow in sync with underlying Consumption Growth economy (in terms of Nominal GDP) sustains its strong growth momentum • Growing urbanization, young population and rising
Slide 20: Long Term Sustainable Growth Delivered Through The Cycle
Long Term Sustainable Growth Delivered Through The Cycle MarketCity malls to follow similar growth trajectory at HSP & Palladium In 2010, trading density and consumption at High Street Bubble size represents Phoenix was at Rs 1,055 psf pm and Rs 4,371 mn, 3,500 consumption FY17 Rentals (Rs mn) res
Slide 21: Revenue Cycle of a Mall
Revenue Cycle of a Mall Cash flow from mall continues to grow even after mall matures 130 1,000 120 900 MAJORITY of retail lease agreements at PML 800 pay HIGHER of Minimum Guarantee (MG) 110 700 rents and Revenue Share (% of consumption) 100 600 90 500 400 Generally MG escalates by 15-18% at the en
Slide 22: Renewal Schedule (% of total leasable area)
Renewal Schedule (% of total leasable area) HSP & Palladium PMC Bangalore PMC Chennai 54% of leasable area for renewal 18% of leasable area for renewal 53% of leasable area for renewal over next 3 years over next 3 years 46% over next 3 years 23% 18% 13% 8% 7% 5% 3% 2% FY18 FY19 FY20 FY18 FY19 FY20
Slide 23: Future growth outlook
Investment Rationale Future growth outlook 22
Slide 24: Strategic Partnership with CPPIB an Enabler to Double Mall Portfolio
Strategic Partnership with CPPIB an Enabler to Double Mall Portfolio • PML and CPPIB have formed a strategic investment platform to Transaction details acquire, develop, and operate prime, retail-led developments across India Enterprise value (Island Star) Approx. Rs. 2,200 cr • CPPIB will invest ap
Slide 25: Overview – Recent land acquisition at Wakad, Pune
Overview – Recent land acquisition at Wakad, Pune Deal Overview Location Dynamics i. Acquired approx. 15 acres of land parcel, located behind Hotel Sayaji Current mall in Viman Nagar serves the CBD of Kharadi and in Wakad Pune, for Rs. 182 cr in August 2017 surrounding residential areas of Kalyani
Slide 26: Commercial Catchment – Hinjewadi
Commercial Catchment – Hinjewadi 19.4 msf office space in Hinjewadi Subject Site 25
Slide 27: Commercial Catchment – Aundh and Baner
Commercial Catchment – Aundh and Baner 5.5 msf office space in Aundh & Baner Subject Site 26
Slide 28: Connectivity to Wakad from Key Locations
Connectivity to Wakad from Key Locations Mumbai – Pune Pimpri Chinchwad Location Map is indicative and not to scale Expressway 5 KM 7 KM Ravet Dange Chowk Ginger Hotel 2 KM Indira Institute of Management Courtyard by Marriott Khadki Cantontment Hinjewadi IT Park 13 KM 3 KM Hotel Sayaji Wipro Balewad
Slide 29: Strong execution capabilities and Complementary Asset Portfolio
Investment Rationale Strong execution capabilities and Complementary Asset Portfolio 28
Slide 30: Perfecting the art of Mixed-use Development
Perfecting the art of Mixed-use Development
Slide 31: Strong Execution Capability Displayed Over a Decade
Strong Execution Capability Displayed Over a Decade Timeline BUA (msft) Project details Completed Phase I development of 4 Marketcity malls concurrently across Pune, Mumbai, Bangalore and 2007-12 7.5 Chennai in <5 years with a gross development area of 7.5 msft Completed Phase II of development of c
Slide 32: The Retail Portfolio
The Retail Portfolio Hospitality (17%) Commercial (4%) Residential (13%) RETAIL: 65 % of FY17 Revenue 31
Slide 33: Operational Update – Retail Portfolio
Operational Update – Retail Portfolio HSP & Phoenix MarketCity Phoenix United Palladium Palladium Mumbai Bangalore Chennai Mumbai Pune Bareilly Lucknow Chennai Retail Leasable/Licensable Area (msf ) 0.74 1.00 1.00 1.11 1.19 0.31 0.33 0.22 Total No. of Stores 272 293 261 316 346 144 130 Average Renta
Slide 34: High Street Phoenix & Palladium Mall – Our Flagship Mall
High Street Phoenix & Palladium Mall – Our Flagship Mall India Shopping Centre Awards by Images Group 0.74 Million Sq. Ft. Recognised High Street Phoenix and Palladium as “Shopping Total Leasable Area Centre of the Year (West) - Metro” in 2016 93% FY17 Occupancy India Shopping Centre Awards by Image
Slide 35: High Street Phoenix & Palladium Mall
High Street Phoenix & Palladium Mall 34
Slide 36: High Street Phoenix & Palladium Mall – Housing Global Brands
High Street Phoenix & Palladium Mall – Housing Global Brands 35
Slide 37: High Street Phoenix & Palladium Mall
High Street Phoenix & Palladium Mall FY13-17 Rental Income (Rs.mn) CAGR – 12% 2,837 2,601 2,293 2,039 1,824 FY13 FY14 FY15 FY16 FY17 Consumption (Rs.mn) Average Trading Density (Rs./sft pm) FY13-17 CAGR – 9% 16,264 2,741 2,894 15,438 2,553 14,403 13,185 2,263 11,711 2,020 FY13 FY14 FY15 FY16 FY17 FY
Slide 38: Phoenix MarketCity Chennai
Phoenix MarketCity Chennai “Construction Industry Award 2015 – 1.00 Million Sq. Ft. Excellence in Commercial/Mixed Use- Total Leasable Area Development 92% FY17 Occupancy “Best Malls & Shopping Centre of the Year 261 2015 – Operational Mixed Used Development” No of Stores by Estate Avenues Rs 10,699
Slide 39: Phoenix MarketCity Chennai
Phoenix MarketCity Chennai FY14-17 Rental Income (Rs.mn) CAGR – 14% 1,286 1,196 1,109 858 117 FY13 FY14 FY15 FY16 FY17 Consumption (Rs.mn) Average Trading Density (Rs./sft pm) FY14-17 11,289 CAGR – 16% 10,481 10,699 1,480 1,572 1,553 6,938 1,226 800 518 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 F
Slide 40: Palladium Chennai
Palladium Chennai • Palladium Chennai became operational on 13th Oct 2017 with launch of H&M • Other units currently under fit-out • Mall expected to be fully operational by mid- Dec’17 0.22 Million Sq. Ft. Total Leasable Area 13th Oct 2017 Operations Begin
Slide 41: Palladium Chennai
Palladium Chennai w le aN Le Ei =—
Slide 42: Palladium Chennai
Palladium Chennai tye TIE PHOENIX MILLS LIMITED
Slide 43: Phoenix MarketCity Bangalore
Phoenix MarketCity Bangalore Asia Shopping Centre & Mall Awards 2014 – Most 0.99 Million Sq. Ft. admired marketing campaign of the year Total Leasable Area CNBC Awaaz Real Estate Awards 2013 – Best retail 90% project of the city – PMC Bangalore FY17 Occupancy 296 No of Stores Rs 10,200 Million FY17
Slide 44: PMC Bangalore – Exterior Images
PMC Bangalore – Exterior Images
Slide 45: PMC Bangalore – Exterior Images
PMC Bangalore – Exterior Images
Slide 46: PMC Bangalore – Interior Images
PMC Bangalore – Interior Images
Slide 47: PMC Bangalore – Housing the best Global Brands
PMC Bangalore – Housing the best Global Brands
Slide 48: PMC Bangalore – Host to the best events in the city
PMC Bangalore – Host to the best events in the city
Slide 49: PMC Bangalore – Host to the best events in the city
PMC Bangalore – Host to the best events in the city
Slide 50: Phoenix MarketCity Bangalore
Phoenix MarketCity Bangalore FY13-17 Rental Income (Rs.mn) CAGR – 16% 1,090 958 876 768 603 FY13 FY14 FY15 FY16 FY17 Consumption (Rs.mn) Average Trading Density (Rs./sft pm) FY13-17 1,444 CAGR – 28% 1,287 10,200 8,859 1,131 7,753 975 6,573 745 3,832 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17
Slide 51: Phoenix MarketCity Pune
Phoenix MarketCity Pune Most Admired Shopping Centre West , Non Metro – 1.19 Million Sq. Ft. Images Shopping Centre Award 2016 Total Leasable Area 89% Images Shopping Centre Award (ISCA) for the Most FY17 Occupancy Admired Shopping Centre 2014 341 Shopping Centre of the year at the CMO Asia Retail N
Slide 52: Phoenix MarketCity Pune
Phoenix MarketCity Pune FY13-17 Rental Income (Rs.mn) CAGR – 17% 1,202 1,035 941 789 640 FY13 FY14 FY15 FY16 FY17 Average Trading Density (Rs./sft pm) FY13-17 Consumption (Rs.mn) 1,208 CAGR – 20% 1,077 9,629 975 8,659 812 7,650 6,221 653 4,610 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 51
Slide 53: Phoenix MarketCity Mumbai
Phoenix MarketCity Mumbai “India’s best existing neighbourhood shopping mall 1.11 Million Sq. Ft. 2013-14” awarded by Estate Avenues Total Leasable Area “Best Thematic decoration” by Asia Shopping Centre & 87% Mall Awards , awarded by CMO Asia FY17 Occupancy 317 No of Stores Rs 6,957 Million FY17 Co
Slide 54: Phoenix MarketCity Mumbai
Phoenix MarketCity Mumbai FY13-17 Rental Income (Rs.mn) CAGR – 5% 991 954 934 926 750 FY13 FY14 FY15 FY16 FY17 FY13-17 Consumption (Rs.mn) Average Trading Density (Rs./sft pm) 942 CAGR – 25% 6,957 797 5,957 705 5,480 586 4,460 454 2,818 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 53
Slide 55: Awards ● Accolades ● Excellence
Awards ● Accolades ● Excellence HIGH STREET PHOENIX & PHOENIX MARKETCITY PHOENIX MARKETCITY PHOENIX MARKETCITY PHOENIX MARKETCITY PUNE PALLADIUM BANGALORE MUMBAI CHENNAI CMO Asia 2015 Images Shopping Centre CNBC Awaaz Real Estate CMO Asia 2014 Estate Avenues 2015 Retailer of the Year (Mall) Award 20
Slide 56: The Residential Portfolio
The Residential Portfolio One Bangalore West-Bengaluru Hospitality (17%) Commercial Kessaku - Bengaluru (4%) RESIDENTIAL: 13% of FY17 Revenue Retail (65%) 55
Slide 57: Residential Portfolio: High Margin, Cash Flow Business
Residential Portfolio: High Margin, Cash Flow Business One Bangalore West and Kessaku • Premium and upscale, large-scale residential developments • Product design, quality and location in or around mixed-use destinations have established the projects as market leaders • Expect substantial free cash
Slide 58: Operational Update – Residential Portfolio
Operational Update – Residential Portfolio Revenue recognized Saleable area (msf) (Rs. mn) Project Name Area Sold Sales Value Average Selling Price Collections (operational) (msf) (Rs. mn) (Rs. psf) (Rs. mn) Total Area Balance in Q2 FY18 Cumulative Area launched Area One Bangalore West, 2.20 1.48 0.
Slide 59: One Bangalore West, Bengaluru
One Bangalore West, Bengaluru Tower Saleable Area (msf) Launched Sold One Bangalore West Tower 1-5 1.23 1.23 1.05 Tower 6 0.26 0.26 0.13 Tower 7-9 0.72 Not Launched - Total 2.20 1.48 1.18 Q2FY18 Q2FY17 Q1FY18 Saleable Area for 9 Towers (msf) 2.20 2.20 2.20 Cumulative Sale Value (Rs. mn) 11,340 11,13
Slide 60: Kessaku, Bengaluru
Kessaku, Bengaluru Kessaku Q2FY18 Q2FY17 Q1FY18 Saleable Area (msf) 0.99 0.99 0.99 Cumulative Sale Value (Rs. mn) 3,340 3,173 3,317 Cumulative Sale Volume (msf) 0.22 0.21 0.22 Cumulative Collections (Rs. mn) 2,308 1,453 2,232 Average Realization (Rs./sft) 15,181 14,839 15,078 Project Update SORA, NI
Slide 61: Kessaku, Bengaluru
Kessaku, Bengaluru Kessaku Elevation Above Terrace Work in Progress 60
Slide 62: The Crest, Chennai - Towers A, B and C
The Crest, Chennai - Towers A, B and C Q2FY18 Q2FY17 Q1FY18 Crest Towers A & B Saleable Area (msf) 0.53 0.53 0.53 Cumulative Sale Value 3,636 3,434 3,636 (Rs. mn) Cumulative Sale Volume (msf) 0.41 0.38 0.41 Cumulative Collections 3,387 3,074 3,277 (Rs. mn) Average Realization (Rs./sft) 8,780 8,738 8
Slide 63: Awards ● Accolades ● Excellence
Awards ● Accolades ● Excellence ONE BANGALORE WEST KESSAKU FOUNTAINHEAD Asia Pacific Property Awards 2013 3rd Asian CEF Awards 2014 3rd Asia CEF Awards 2014 Developer Website The Residential Project of the Year – Towers The Residential Project of the Year – Residential Buildings 7th Estate Awards 20
Slide 64: The Commercial Portfolio
The Commercial Portfolio Art Guild House - Mumbai Centrium - Mumbai Hospitality (17%) COMMERCIAL: 4 % of FY17 Revenue East Court - Pune Phoenix Paragon Plaza - Mumbai Residential (13%) Retail (65%) 63
Slide 65: Commercial Portfolio Adds to Annuity Income
Commercial Portfolio Adds to Annuity Income • Own and operate Grade A commercial, rent-generating Art Guild House, Mumbai space of approx. 1 msf in prime locations in Mumbai • Currently 71% of the available area has been leased to Tier 1 clients – ensures quality catchment and stable rental income •
Slide 66: Operational Update – Commercial Portfolio
Operational Update – Commercial Portfolio Net Area Average AGH reported Rental Income of Rs. 94 Mn for H1 FY18 Project Total Area Area Sold Leasable Leased Rate Name (msf) (msf) 71% of available leasable area in AGH has been leased Area (msf) (msf) (Rs./sq.ft) Phoenix 0.14 - 0.14 0.13 110^ House
Slide 67: The Hospitality Portfolio
The Hospitality Portfolio The St.Regis, Mumbai Hospitality 17 % of FY17 Revenue Commercial (4%) Residential Courtyard by Marriott, Agra (13%) Retail (65%) 66
Slide 68: Hospitality Portfolio: Steadily Strengthening
Hospitality Portfolio: Steadily Strengthening • Own and operate marquee hospitality properties in Mumbai and Agra COURTYARD BY ST. REGIS, MUMBAI MARRIOTT, AGRA managed by best-in-class global operator, Marriott Keys 395 193 FY17 Occupancy (%) 72 57 • The St. Regis, Mumbai and Courtyard by Marriott,
Slide 69: Operational Update – Hospitality
Operational Update – Hospitality The St. Regis, Courtyard by Mumbai Marriott, Agra Keys 395 193 Restaurants & Bar 10 4 Occupancy (%)# 72% 59% Average room rent 10,622 2,812 (Rs. / room night) # The St. Regis, Mumbai Courtyard by Marriott, Agra Q2 FY18 room occupancy at 72% at an ADR of Rs. 10,622
Slide 70: Restaurants & Banquets
Restaurants & Banquets Restaurants at Restaurants at Courtyard by Marriott Luna Gusta Type The St. Regis, MoMo Café Piano Lounge & Bar Lobby Lounge MoMo to Go Anise Seven Kitchens All Day, Global Cuisine MoMo To You The Sahib Room & Kipling Bar Indian By the Mekong Asian Banquets at Courtyard by Mar
Slide 71: The St. Regis, Mumbai – Operating Performance
The St. Regis, Mumbai – Operating Performance ARR (Rs.) Occupancy (%) 10,594 9,574 9,284 72% 72% 8,105 8,199 67% 54% 46% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 190 273 335 386 395 Average rooms operational Room Revenue (Rs. mn) F&B and Banquet Revenue (Rs.) 1,068 1,177 845 1,089 951 639 3
Slide 72: The St. Regis, Mumbai – Financial Performance
The St. Regis, Mumbai – Financial Performance Living room inside the suite at The St. Regis, Mumbai Total Revenue (Rs.mn) 2,520 2,182 1,718 867 162 FY13 FY14 FY15 FY16 FY17 Operating EBITDA (Rs.mn) 907 722 661 118 FY13 FY14 FY15 FY16 FY17 -106 71
Slide 73: Awards and Accolades
Awards and Accolades 72 YUUKA by Ting Yen 2014 2015 2016 Times Food & Nightlife Times Food & Nightlife Times Food & Nightlife Awards Awards Awards • Seven Kitchens: Winner The Sahib Room & Kipling The Sahib Room & Kipling of Best All Day Bar: Bar: Winner of Best Indian Restaurant (South Winner of Be
Slide 74: Courtyard by Marriott, Agra
Courtyard by Marriott, Agra ARR (Rs.) Entrance Lobby at Courtyard by Marriott, Agra 5,287 5,357 4,809 4,363 3,756 3,634 3,610 3,308 3,093 2,812 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY16 FY16 FY16 FY16 FY17 FY17 FY17 FY17 FY18 FY18 Occupancy (%) 71% 74% 65% 59% 52% 51% 40% 42% 34% 28% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 75: Restaurants – F&B Concept
Restaurants – F&B Concept • 5 Food & Beverage Concepts/ brands rolled out across 10 stores • Potential for more rollouts with opportunities across all Phoenix malls at initial stage • Adds to Phoenix malls leisure and entertainment bouquet, creating a larger consumption center • Scalable model that
Slide 76: Restaurants – F&B Concept
Restaurants – F&B Concept Name Concept Operational Stores 212 ALL DAY All Day Café & Bar serving New York inspired comfort food. Well known for PMC Mumbai & PMC Pune Café & Bar our Flat 50% on alcohol everyday between 4-9PM One-of its kind café & bar with a focus on food & drinks that are good for 2
Slide 77: Rational Capital Deployment and Improving outlook for free cash flows
Investment Rationale Rational Capital Deployment and Improving outlook for free cash flows
Slide 78: Consolidated Holdings across Subsidiaries
Consolidated Holdings across Subsidiaries PML’s shareholding in subsidiaries – Progressive Stake Acquisitions Subsidiary Development Name 2010 Sept 2017 Offbeat Developers Phoenix MarketCity, Mumbai 24% 100% Vamona Developers Phoenix MarketCity, Pune 59% 100% Classic Mall Phoenix MarketCity, Chennai
Slide 79: Rational Capital Deployment
Rational Capital Deployment Value Accretive Stake Acquisitions in FY18 mark the completion of minority buyouts Amount paid for stake purchase Subsidiary Stake Purchased (%) Previous Stake (%) Effective Current Stake (Rs. mn) Vamona 13.41% 1,135 86.59% 100% Offbeat 16.41% 911 83.59% 100% Alliance 38.
Slide 80: Benign Interest Rate Outlook in India
Benign Interest Rate Outlook in India Effective cost of debt (%) has been trending down Cost of debt down 170 bps in 18 months; Expect further softening in interest rates in 2H FY18 13.0% 12.3% 12.5% 11.8% FY17 interest coverage ratio at approx. 2x for the group with retail 12.0% 11.5% 11.0% ass
Slide 81: Improving EBITDA, declining Int. Exp. to improve cash flows
Improving EBITDA, declining Int. Exp. to improve cash flows Bridging gap between sources and requirement of funds • Operational cash flow, defined as EBITDA minus interest expense, has significantly increased in recent years on account Fig in INR mn FY13 FY14 FY15 FY16 FY17 of: EBITDA 2,631 6,784 7,
Slide 82: Financial Results
Company Overview Investment Rationale Financial Results Annexure
Slide 83: Financial Overview – Standalone P&L
Financial Overview – Standalone P&L (Rs. mn) Q2 FY18 Q2 FY17 % yoy growth H1 FY18 H1 FY17 % yoy growth Income from operations 945 929 2% 1,926 1,840 5% EBITDA 619 640 1,259 1,268 EBITDA Margin^ (%) 66% 69% 65% 69% Profit Before Tax and exceptional item 705 585 21% 1,123 1,176 Profit after tax & befo
Slide 84: Financial Overview – Standalone Balance Sheet
Financial Overview – Standalone Balance Sheet (Rs. mn) As on 30th Sep 2017 (Rs. mn) As on 30th Sep 2017 Share Capital 306 Non Current Assets 32,453 Reserves & Surplus 24,668 Tangible Assets 6,215 Sub-Total 24,974 Intangible Assets 0 Minority Interest - Capital Work in Progress 1,210 Non Current Liab
Slide 85: Financial Overview – Consolidated P&L
Financial Overview – Consolidated P&L (Rs. mn) Q2 FY18 Q2 FY17 H1 FY18 H1 FY17 Note to P&L • Classic Mall Development Income from operations 3,706 4,911 7,665 9,335 Company Private Limited Retail 2,557 2,925 5,178 5,803 (CMDCPL), which owns and operates the retail mall known as Residential 238 1,198
Slide 86: Financial Overview – Pro forma analysis of Consolidated P&L
Financial Overview – Pro forma analysis of Consolidated P&L Adjusting Q2 FY18 results for the change in treatment for Classic Mall • For like-to-like comparison with the prior year period, we have adjusting reported H1 results and for the sake of illustration, present proforma results assuming conso
Slide 87: Consolidated P&L – Strong performance by non-residential portfolio
Consolidated P&L – Strong performance by non-residential portfolio H1 FY18 results reflect strong performance led by the non-residential portfolio • We have witnessed strong performance from our retail, commercial and hospitality portfolios in H1 FY18 • Revenue recognition from residential portfolio
Slide 88: Financial Overview – Consolidated Balance Sheet
Financial Overview – Consolidated Balance Sheet (Rs. mn) As on 30th Sep 2017 (Rs. mn) As on 30th Sep 2017 Share Capital 306 Non Current Assets 61,513 Reserves & Surplus 26,177 Tangible Assets 46,470 Sub-Total 26,483 Intangible Assets 33 Minority Interest 4,507 Capital Work in Progress 3,076 Goodwill
Slide 89: Q2 & H1FY18 Retail Update
Q2 & H1FY18 Retail Update Retail Portfolio PMC Bengaluru H1FY18 consumption at Rs. 30.8 bn, up 4% and 11% yoy Strong Consumption & Rental Income growth for Rental Income was Rs. 4.2 bn for H1FY18, up 12% yoy Q2FY18 at 26% yoy and 18% yoy respectively Note: Both figures take into consideratio
Slide 90: Positive Outlook for Retail Consumption in H2 FY18
Positive Outlook for Retail Consumption in H2 FY18 Key drivers for retail consumption in H2 FY18: We enhanced the shopping experience for consumer in Chennai with the launch of Palladium Chennai in October 2017 Palladium Chennai opened in October 2017 and received a very positive response from c
Slide 91: High Street Phoenix & Palladium Mall
High Street Phoenix & Palladium Mall Rental Income of Rs. 713 mn this quarter, up 1% yoy Consumption (Rs. mn) 4,524 4,208 4,024 3,934 Consumption of Rs. 3,617 mn in Q2 FY18, down 10% yoy 3,781 3,617 Consumption was impacted during H1FY18 on account of ~11% of leasable area being under fit-out
Slide 92: High Street Phoenix & Palladium Mall
High Street Phoenix & Palladium Mall % yoy % yoy Q2FY18 Q2FY17 H1FY18 H1FY17 growth growth Rental Income (Rs. mn) ^ 713 702 1% 1,443 1,376 5% Recoveries (CAM and other) 232 226 3% 483 464 4% (Rs. mn) Total Income (Rs. mn) 945 929 2% 1,926 1,840 5% EBITDA (Rs. mn) 619 640 1,259 1,268 EBIDTA Margin (a
Slide 93: Phoenix MarketCity Chennai
Phoenix MarketCity Chennai Consumption in Chennai came in at Rs. 2,706 mn Consumption (Rs. mn) 2,845 2,856 2,812 Consumption growth remains sluggish on account of the 2,597 2,401 2,706 category changes initiated last year as well as owing to the local economy However, the category changes have
Slide 94: Phoenix MarketCity Chennai
Phoenix MarketCity Chennai % yoy % yoy Q2FY18 Q2FY17 H1FY18 H1FY17 growth growth Rental Income (Rs. mn) 343 326 5% 686 641 7% Recoveries (CAM and other) 192 184 4% 405 383 6% (Rs. mn) Total Income (Rs. mn) 535 511 5% 1,091 1,024 7% EBITDA (Rs. mn) 383 332 15% 771 662 16% EBIDTA Margin (as % of Renta
Slide 95: Phoenix MarketCity Bangalore
Phoenix MarketCity Bangalore PMC Bangalore in its sixth year of operations continues to Consumption (Rs. mn) demonstrate market leading growth across categories 3,172 2,918 3,030 2,332 2,398 2,554 H1FY18 Consumption was up 31% yoy to Rs. 6,202 mn Strong consumption growth is also translating i
Slide 96: Phoenix MarketCity Bangalore
Phoenix MarketCity Bangalore % yoy % yoy Q2FY18 Q2FY17 H1FY18 H1FY17 growth growth Rental Income (Rs. mn) 311 263 18% 624 516 21% Recoveries (CAM and other) (Rs. 164 152 8% 328 303 8% mn) Total Income (Rs. mn) 475 415 14% 953 818 16% EBITDA (Rs. mn) 307 280 9% 626 530 18% EBIDTA Margin (as % of Rent
Slide 97: Phoenix MarketCity Pune
Phoenix MarketCity Pune Strong H1FY18 Consumption growth of 19% yoy and Rental Consumption (Rs. mn) Income growth of 22% yoy 2,812 2,747 2,422 2,495 2,208 2,188 Trading Density is at 1,142 in Q2FY18, down 7% yoy We have added a new floor (3rd floor) at PMC Pune taking the gross leasable area u
Slide 98: Phoenix MarketCity Pune
Phoenix MarketCity Pune % yoy % yoy Q2FY18 Q2FY17 H1FY18 H1FY17 growth growth Rental Income (Rs. mn) 332 284 17% 670 548 22% Recoveries (CAM and other) (Rs. 209 184 14% 427 375 14% mn) Total Income (Rs. mn) 541 468 16% 1,096 923 19% EBITDA (Rs. mn) 306 258 18% 614 506 21% EBIDTA Margin (as % of Rent
Slide 99: Phoenix MarketCity Mumbai
Phoenix MarketCity Mumbai PMC Kurla continues its successful turnaround story Consumption (Rs. mn) 1,929 2,052 Consumption at PMC Kurla was up 19% yoy at Rs. 3,853 1,565 1,678 1,784 1,801 mn in H1FY18 Rental Income of Rs. 537 Mn in H1FY18, up 17% yoy Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2
Slide 100: Phoenix MarketCity Mumbai
Phoenix MarketCity Mumbai % yoy % yoy Q2FY18 Q2FY17 H1FY18 H1FY17 growth growth Rental Income (Rs. mn) 271 230 18% 537 460 17% Recoveries (CAM and other) (Rs. mn) 139 157 284 284 Total Income (Rs. mn) 410 386 6% 820 743 10% EBITDA (Rs. mn) 230 152 51% 473 301 57% EBIDTA Margin (as % of Rental 85% 66
Slide 101: Q2 FY18 – Retail Key Highlights
Q2 FY18 – Retail Key Highlights 3,617 Consumption (Rs. mn) Total Consumption – Rs. 14.6 bn, up 4% yoy 2,706 3,030 2,495 1,801 622 346 HSP & Palladium* PMC Chennai PMC Bengaluru PMC Pune PMC Mumbai Phoenix United Phoenix United Lucknow Bareilly 10% 5% 26% 14% 7% 8% 3% 2,765 Trading Density (Rs./sfpm)
Slide 102: Q2 FY18 – Retail Key Highlights
Q2 FY18 – Retail Key Highlights 713 Rental Income (Rs. mn) Total Rental Income – Rs. 2.1 bn, up 9% yoy 343 311 332 271 61 41 HSP & Palladium PMC Chennai PMC Bengaluru PMC Pune PMC Mumbai Phoenix United Phoenix United Lucknow Bareilly 1% 5% 8% 18% 17% 18% 17% 5% 619 Mall EBITDA (Rs. mn) Total Mall EB
Slide 103: H1 FY18 – Retail Key Highlights
H1 FY18 – Retail Key Highlights Consumption (Rs. mn) Total Consumption – Rs. 30.8 bn, up 11% yoy 7,825 5,518 6,202 5,242 3,853 1,336 802 HSP & Palladium PMC Chennai PMC Bengaluru PMC Pune PMC Mumbai Phoenix United Phoenix United Bareilly Lucknow 0% -3% 31% 19% 19% 18% 11% 2,939 Trading Density (Rs./
Slide 104: H1 FY18 – Retail Key Highlights
H1 FY18 – Retail Key Highlights Rental Income (Rs. mn) Total Rental Income – Rs. 4.2 bn, up 12% yoy 1,443 686 624 670 537 126 89 HSP & Palladium PMC Chennai PMC Bengaluru PMC Pune PMC Mumbai Phoenix United Phoenix United Lucknow Bareilly 5% 7% 8% 21% 22% 17% 22% 4% 1,259 Mall EBITDA (Rs. mn) Total M
Slide 105: Operational Update – Commercial Portfolio
Operational Update – Commercial Portfolio Net Area Average AGH reported Rental Income of Rs. 94 Mn for H1 FY18 Project Total Area Area Sold Leasable Leased Rate Name (msf) (msf) 71% of available leasable area in AGH has been leased Area (msf) (msf) (Rs./sq.ft) Phoenix 0.14 - 0.14 0.13 110^ House
Slide 106: Operational Update – Hospitality Portfolio
Operational Update – Hospitality Portfolio The St. Regis, Mumbai Courtyard by Marriott, Agra The St. Regis continues to set new performance Courtyard by Marriott, Agra reported strong benchmarks in the industry with stellar industry- occupancy in H1 FY18. Occupancy improved from leading growth r
Slide 107: The St. Regis, Mumbai
The St. Regis, Mumbai % yoy % yoy Q2FY18 Q2FY17 H1FY18 H1FY17 growth growth Revenue from Rooms (Rs. 274 239 15% 546 452 21% mn) Revenue from F&B and 279 274 2% 569 528 8% Banqueting (Rs. mn) Other Operating Income 66 63 4% 127 119 7% (Rs. mn) Total Income (Rs. mn) 620 576 8% 1,242 1,099 13% Operatin
Slide 108: Courtyard by Marriott, Agra
Courtyard by Marriott, Agra % yoy % yoy Q2FY18 Q2FY17 H1FY18 H1FY17 growth growth Revenue from Rooms 29 24 21% 56 49 16% (Rs. mn) Revenue from F&B and Banqueting 32 26 21% 66 53 25% (Rs. mn) Other Operating Income 4 4 7% 7 7 11% (Rs.mn) Total Income 65 54 20% 130 109 20% (Rs. mn) Occupancy (%) 59% 4
Slide 109: Q2 FY18 Debt profile
Q2 FY18 Debt profile Asset Type SPV Asset Name Q2 FY18 Debt (Rs. mn) PML Standalone High Street Phoenix, Mumbai 7,464 Phoenix MarketCity, Chennai Classic Mall Development 5,003 The Crest C Phoenix MarketCity, Pune Vamona Developers 5,772 East Court Retail & Island Star Mall Developers Phoenix Market
Slide 110: Annexure
Company Overview Investment Rationale Financial Results Annexure
Slide 111: Board of Directors
Board of Directors Mr. Ashok Kumar Ruia, CMD Mr. Amit Kumar Dabriwala, Independent Director - Graduate from Cambridge , been on the Board since 1963. He - Graduated from the Calcutta University, Promoter Director has vast experience in managing the Company’s affairs of United Credit Securities Limit
Slide 112: Shareholding pattern as on Sept 2017
Shareholding pattern as on 30 Sept 2017 Shareholding Pattern % Key Institutional Investors Shareholding 2.49% 1.37% 3.11% Nordea Bank 10.99% Promoters Fidelity Investment Trust 4.35% FII Schroder 2.37% 30.17% DII Reliance Capital 1.31% Public TIAA-CREF Funds 1.28% Corporate bodies Van Eck 1.18% 62.8
Slide 113: Contact information
For more information on the Company, its projects and services please log on to www.thephoenixmills.com or contact: Varun Parwal Contact: +91 22 30016737 Email: varun.p@phoenixmarketcity.in Advait Phatarfod Contact: +91 22 30016804 Email: advait.p@phoenixmarketcity.in Pawan Saxena Contact: +91 22 30