Arvind Smartspaces Ltd. · NSE:ARVSMART

Arvind Smartspaces — Investor Presentation (September 2021)

54 slides from Arvind Smartspaces's investor presentation, Sep 28, 2021

1. Slide 1: Exchange filing cover letter

   www.arvindsmartspaces.com 28th September, 2021 To, To, BSE Limited National Stock Exchange of India Limited Listing Dept. / Dept. of Corporate Services, Listing Dept., Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G. Block, Bandra-Kurla Complex, Dalal Street, Mumbai - 400 001.

2. Slide 2: Corporate Presentation and Strategic Outlook

   Arvind SmartSpaces Corporate Presentation and Strategic Outlook Sep 28, 2021

3. Slide 3: Company Overview

   Overview | Arvind Smartspaces Company Overview Corporate developer with a Robust governance & Part of Lalbhai Group with a strong trusted consumer experienced professional 120 year legacy, listed in 2015 brand, benefiting from management, learnings in post demerger from Arvind Ltd consolidation post

4. Slide 4: The Journey so far

   The Journey so far Preferential issue of Rs. 85 Cr to HDFC Capital Advisors (8.8% on fully 2021 diluted basis) and Promoters 2021 In April 2021, preferential issue of 7.4% equity to MD & CEO 2021 Sales crosses Rs. 500 Cr+ mark inspite of Covid-19 disruption 2020 Commencement of our first project und

5. Slide 5: Our Business - Overview

   Our Business - Overview Focus on Residential Real Estate Project Pipeline (Mn Sq. Ft.) Project classification 4.2 23 (ongoing and planned) 14.9 6% 22% 3% Sep 2021 97% 71% 3.8 Residential Commercial Luxury Mid-market Affordable Multiple Land Sourcing Models Completed Ongoing Planned * Total 28% Value

6. Slide 6: Completed Projects

   Completed Projects Skylands Sporcia Expansia Alcove 4.9 Lakh Sq. Ft. 5.0 Lakh Sq. Ft. 1.4 Lakh Sq. Ft. 10.3 Lakh Sq. Ft. Megatrade MegaEstate MegaPark Citadel 0.8 Lakh Sq. Ft. 0.6 Lakh Sq. Ft. 5.0 Lakh Sq. Ft. 1.0 Lakh Sq. Ft.

7. Slide 7: Ongoing Projects

   Ongoing Projects 56.0 Lakh Sq. Ft. ~58 Lakh Sq. Ft. ~50 Lakh Sq. Ft. 5.5 Lakh Sq. Ft. 1.3 Lakh Sq. Ft. 4.7 Lakh Sq. Ft. 1.7 Lakh Sq. Ft. 5.5 Lakh Sq. Ft.

8. Slide 8: Financial Highlights

   Financial Highlights Fresh Sales (Rs Cr) Revenue (Rs Cr) 529 299 262 198 277 286 159 149 115 113 87 73 91 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 FY20 FY21 EBITDA (Rs Cr) PAT (Rs Cr) 89 39 68 61 30 31 44 41 20 35 17 25 11 9 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 F

9. Slide 9: Business Details

   Business Details

10. Slide 10: Tailwinds for Organized Developers

    Tailwinds for Organized Developers Regulatory Push Has Benefitted Organized Players… …Consolidation Due To Policy Reforms RERA GST Demonetization Decline in number of Real Estate Developers (% change between 2011-20) -78% Chennai • Improved -65% Bengalore • GST implementation transparency -58% Thane

11. Slide 11: Company In This Context

    Company In This Context Capabilities, Teams & Processes Created – Ready To Scale Up With Tailwinds For Corporate Developers Strengths Opportunities • Strong established brand • Industry consolidation • Robust governance framework • Historic high in residential affordability • Product innovation & ex

12. Slide 12: Competitive Advantage

    Competitive Advantage Efficient And Competitive Land • Created Joint Development models Sourcing • Competitive land sourcing Successful Partnership – Long • Uplands, High Grove, Arvind B Safal, Tata Value Housing (now under execution by Arvind Ltd.) are Term Value Creation examples of successful par

13. Slide 13: Our Geographical Presence

    Our Geographical Presence Geography | Depth Over Breadth Ahmedabad – High on Luxury and preference for horizontal Bangalore – Seeing good traction in mid-market segment due to growing salaried class in the IT services industry Pune – High sales and launch velocity for mid-priced housing due to its p

14. Slide 14: Strong Operating Model

    Strong Operating Model Focus On Low Operating Leverage And Greater Corporate Efficiency • Low fixed cost: Centralized key functions Lean Organisation • Small team comprising key skill sets: Total on-roll strength of ~225 • High reliance on outsourcing of noncore activities and entire construction Ou

15. Slide 15: Key Strategic Pillars

    Key Strategic Pillars 1 2 3 4 5 AssetAsset light, Low lightCapex Balanced Risk Innovation Customer Centricity Systems & Processes Profile 5 Core Strategic Pillars

16. Slide 16: Strategic Pillar - Asset Light

    Strategic Pillar - Asset Light Treat Land as Raw Material; No Land Banking; Process Industry Approach Parameter Traditional land banking approach Our approach Investment class Asset Raw Material Approach Speculative for appreciation Quick turnaround Value Add By Holding By quick conversion into valu

17. Slide 17: Strategic Pillar - Balanced Risk Profile

    Strategic Pillar - Balanced Risk Profile Focus On Efficient Cash Flow Management & Low Leverage Debt / Equity (x) • Target 30-40% sales at pre-launch & launch stages to generate 0.8x momentum and thereby reduce working capital requirements 0.7x • Ensure D/E remains below 1:1; currently well below th

18. Slide 18: Strategic Pillar - Innovation

    Strategic Pillar - Innovation Product Innovation Uplands : Executive Golf Course Skylands: Jogging track in the sky Sporcia: Homes around Sports Expansia: All about Spaces BelAir: Your club in the Air Uplands: Inspired by Disney ®

19. Slide 19: Strategic Pillar - Innovation

    Strategic Pillar - Innovation Product Innovation 3 Acres of Lily Pond @ HG Urban Forrest @ Forreste International Club Architecture @ HG

20. Slide 20: Strategic Pillar - Customer Centricity

    Strategic Pillar - Customer Centricity Aiming For Delight At Every Touch Point In Customer Life Cycle Customer Centric product offering* Delivery Status (vs. Project commitment) Alcove - 3 months Impeccable record of on-time delivery MegaTrade On time Parishkaar + 2 months** Customer Portal to enabl

21. Slide 21: Strategic Pillar – Systems & processes

    Strategic Pillar – Systems & processes Defined Project Acquisition Process Design & Development Process • Experienced land acquisition and in-house legal team • Best in class design partners: Woods Bagot, HOK, RSP, AAA • Strong oversight and approval mechanism • Strong in-house team • Directly handl

22. Slide 22: Board of Directors

    Board of Directors Mr. Sanjay S. Lalbhai Mr. Kulin S. Lalbhai Mr. Pratul Shroff Mr. Kamal Singal Chairman & Non-Executive Managing Director & CEO Non-Executive Director Independent Director Director & Promoter Ms. Pallavi Vyas Mr. Nirav Shah Mr. Prem Prakash Pangotra Independent Director Independent

23. Slide 23: Experienced management team

    Experienced management team Experienced Professional Management team • Managing Mr. Kamal Director & Chief Singal is the Executive Managing Officer Director & Chief Executive Officer of the company • Associated with the Lalbhai Group since 2001 in various capacities. He was elevated to head the real

24. Slide 24: Strategic partnership

    Strategic partnership Strategic Partnership With HDFC Capital Advisors 1 80/20 venture between Company and H-CARE with SPV entity for mid-market/affordable housing development in 2019 2 Platform Investment done by H-CARE-I, First project acquired at Bangalore 3 Provides patient capital to the Compan

25. Slide 25: Financial Highlights

    Financial Highlights Summary Financials Particulars (Rs Cr) FY17 FY181 FY19 FY20 FY21 Revenue from Operations 159 198 262 299 149 Revenue growth (%) 38% 25% 32% 14% -50% EBITDA 44 61 68 89 41 EBITDA Margin (%) 28% 31% 26% 30% 27% PAT 20 30 31 39 9 PAT Margin (%) 13% 15% 12% 13% 6% Net Worth 194 295

26. Slide 26: Project Synopsis

    Project Synopsis

27. Slide 27: Total Saleable Area - Overview

    Total Saleable Area - Overview Status Type Total Saleable Area (Sq. Ft.) A. Completed Residential 3,182,980 Commercial 82,526 Industrial 560,402 A. Completed Total 3,825,908 B. Ongoing Residential 14,776,199 Commercial 168,224 B. Ongoing Total 14,944,423 C. Planned Residential 4,212,047 Grand Total

28. Slide 28: Project Details

    Project Details Estimated Status City Project Type Structure Economic Interest Total Completion Date A. Completed Ahmedabad Alcove Residential Owned 100% Complete 1,032,660 Citadel Residential Owned 100% Complete 101,859 Megaestate Industrial Owned 100% Complete 59,180 Megapark Industrial JD 100% Co

29. Slide 29: Completed Projects

    Completed Projects Average Booking Revenue Total Saleable Booked Unsold Collections Price (Price Project Value Recognized (Sqft) (Sqft) Inventory (Sqft) (Rs Cr) till date) (Rs Cr) (Rs. Cr) Rs. / Sq ft Alcove 1,032,660 984,150 48,510 25 25 25 251 Citadel 101,859 101,859 0 55 55 55 5,407 Expansia 140,

30. Slide 30: Ongoing Projects

    Ongoing Projects Average Booking Revenue Total Saleable Booked Unsold Collections Price (Price Project Value Recognized (Sqft) (Sqft) Inventory (Sqft) (Rs Cr) till date) (Rs Cr) (Rs. Cr) Rs. / Sq ft Aavishkar 545,524 280,248 265,276 73 - 42 2,595 Belair 469,620 96,425 373,195 52 - 14 5,378 Chirping

31. Slide 31: Estimated Operating Cash Flow

    Estimated Operating Cash Flow Estimated Total Est. Booking Balance Cost to Est. Operating Rs. Cr Receivables Value of Sales Value Value be Incurred* Cash Flow Inventory Ahmedabad Completed 424 398 1 27 13 14 Ongoing 1,890 1,007 463 883 867 479 Yet to be launched 752 0 0 752 548 204 Ahmedabad Total 3

32. Slide 32: Looking Ahead

    Looking Ahead

33. Slide 33: Looking Ahead

    Looking Ahead Near Term Business Plan Judicious mix of long Medium term focus on Limited geographical term value creation – Continued focus on land oriented horizontal expansion - focus on through creation of residential segment development with low deeper penetration in destination in larger land w

34. Slide 34: Annexure

    Annexure

35. Slide 35: Shareholding Pattern (%)

    Shareholding Pattern (%) Category 31-Mar-2021 30-Jun-2021 Promoter and Promoter Group 58.66% 56.88% Foreign Institutional Investors 0.03% 0.05% Mutual Funds 0.00% 0.00% Insurance Companies 1.64% 0.31% Public 39.67% 42.76%

36. Slide 36: Awards & Recognition

    Awards & Recognition ALVIAND SMACTSPACES Golden Brick Awards Dubai Real Estate Company vs Gujarat at st Conclave EB? Py atl Arvind “ky 4 Aavishkaar &% 3% 0 Affordable NA Housing Project y N N 4 3 Wr Ly w ye Realty Plus Conclave & Excellence Award pte 2018 De, se . We Arvind “Xs, {7 SmartSpaces & Ris

37. Slide 37: Awards & Accolades 2021

    ArvinD IS PROUD TO IS PROUD TO BE AWARDED WITH BE AWARDED WITH CONCLAVE west EXCELLENCE REALESTATE BRAND ; sat Arvind SmartSpaces Limited sy. GN NEWs!8. ‘£2ourneyOtRecognition dourneyofRec 2 CONCLAVE EXCELLENCE oe CONCLAVE ercelience Arvind SmartSpaces Limited Arvind SmartSpaces Limited

38. Slide 38: Annexure - Project Snapshot

    Annexure - Project Snapshot

39. Slide 39: Project Overview

    Project Overview Ahmedabad Bangalore Pune Residential Commercial Completed projects

40. Slide 40: Uplands

    Uplands  Location: Nasmed Village, Gandhi Nagar  Product: Premium golf based township  Project Size: 180 Villas Phase I, 45 Villas Phase II – Overall 56 Lakh Sq. Ft.  Deal Structure: Joint Development  Architect: Woods Bagot  Features: 9 Hole Executive Golf Course 3 Clubs (Golf Square, Zen Squ

41. Slide 41: Uplands

    Uplands

42. Slide 42: Uplands ClubHouse

    Uplands ClubHouse ALVIND SMACTSPACES + ann a im am

43. Slide 43: Skylands

    Skylands  Location: Jakkur Road, Shivanahalii,Bengaluru  Product: High rise Residential Apartments  Project Size: 417 Units – 4.9 Lakh Sq. Ft.  Deal Structure: Outright Purchase  Architect: Apurva Amin  Features: Sky lounge on terrace Jogging track on terrace Open café on terrace Star gazing d

44. Slide 44: Skylands

    Skylands ALVIAD SMAFTSPACES

45. Slide 45: Aavishkaar

    Aavishkaar  Location : Naroda Road, Ahmedabad  Product : Affordable Residential Apartments  Project Size : 574 Units – 5.5 Lakh Sq. Ft.  Deal Structure : Development Agreement  Rera Number : PR/GJ/AHMEDABAD/AHMEDABAD CITY/AUDA/RAA02798/A1R/110219  Architect : Vitan (Jagrut & Partners LLP)  Fe

46. Slide 46: Aavishkaar

    Aavishkaar Actual Construction Images Model Flat

47. Slide 47: Oasis

    Oasis  Location : Tumkur Road, Bengaluru  Product : 2 and 3 BHK Residential Apartments  Project Size : 452 units – 5.5 Lakh Sq. Ft.  Deal Structure : Outright Purchase  Rera Number : PRM/KA/RERA/1251/309/PR/180425/ 001543  Architect : Apurva Amin  Features : Aqua Center Terrace café Central L

48. Slide 48: BelAir

    BelAir  Location : New Town Road Yelahanka, Bengaluru  Product : 2, 2.5 &3 BHK Residential Apartments  Project Size : 334 units – 4.7 Lakh Sq. Ft.  Deal Structure : Outright Purchase  Rera Number : PRM/KA/RERA/1251/472/PR/200515/ 003406  Features : Cantilevered Sky Club Vaastu Compliant Water

49. Slide 49: Elan

    Elan  Location : Kothrud Road, Pune  Product : High rise Residential Apartments  Project Size : 81 Units – 1.3 Lakh Sq. Ft.  Deal Structure : Development Agreement  Rera Number : P52100018613  Features : Landscape Walkway Club Terrace Café Sitting Outdoor & Indoor Gym Fully equipped Home Theat

50. Slide 50: The Edge

    The Edge  Location : Tumkur Road, Bengaluru  Product : Commercial & Retail Space  Project Size : 130 Units – 1.7 Lakh Sq. Ft.  Deal Structure : Outright Purchase  Rera Number : PRM/KA/RERA/1251/309/PR/190823/ 002822  Features : Common Conference Room Theatre/Auditorium Modern Cafetaria Gymnasi

51. Slide 51: Highgrove

    Highgrove  Location : Moti Devti, Sanand, Ahmedabad  Product : Weekend Homes - Plots  Project Size : 814 Units – Overall 58 Lakh Sq. Ft.  Deal Structure : Joint Development  Architect: : Woods Bagot  Features : 9 Hole Executive Golf Course Clubhouse powered by SMAAASH, which is perfected by Sa

52. Slide 52: Forreste

    Forreste  Location : Racharda Khatraj Road, Ahmedabad  Product : Premium Land Oriented Villa Scheme  Project Size : 350+ Units in Phase 1 to 4 (Overall ~50 Lakh Sq. Ft.)  Deal Structure : DM  Rera Number : PR/GJ/GHANDINAGAR/GHANDINAGAR/ AUDA/RAA06788/A2R/291020  Architect : InHouse  Features

53. Slide 53: Disclaimer

    Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified, and no representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. This presentation should not b

54. Slide 54: Thank You

    Thank You Arvind SmartSpaces Ltd Investor Relations: (CIN: L45201GJ2008PLC055771) Registered & Corporate Office: Ankit Jain 24, Govt. Servant’s Society, Chief Financial Officer Adj. Municipal Market, Email: ankit.jain@arvind.in C. G. Road, Ahmedabad- 380009 Tel: +91 79 68267000 Prakash Makwana www.a

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