Slide 1: Cover letter to stock exchanges: Analyst Presentation
DLF LIMITED DLF Gateway Tower, R Block, DLF City Phase — III, Gurugram - 122 002, DLF&. Haryana (India) Tel.: (+91-124) 4396000, investor-relations@dlf.in 2ND February 2022 The General Manager The Vice-President Dept. of Corporate Services National Stock Exchange of India Limited BSE Limited Exchang
Slide 2: Q3FY22 Results Presentation
Q3FY22 Results Presentation ONE Midtown, New Delhi 1 Artist’s impression; Not an actual image
Slide 3: Agenda
AGENDA DLF LIMITED: DCCDL: OVERVIEW BUSINESS BUSINESS UPDATE UPDATE 01 02 03 2
Slide 4: Overview: DLF Group
OVERVIEW : DLF Group Residential Offices Retail Other Business Business Apartments/Plotted/ Cyber Cities/Cyber Parks/ Service & Facility IT SEZs/ Management/Hospitality Townships/Low-rise Commercial Parks 75 150+ 330 msf+ 100 msf+ Track Years of experience in Real estate Area developed Deliveries si
Slide 5: Strategy
Strategy Remain committed and confident in delivering our business goals Development Business: Rental Business: Liquidity: Land Bank: ❑ Scaling up launches of ❑ Continued focus on ❑ Core land bank to be ❑ Strong Liquidity position: New Products growth through better developed for sustainable Maintai
Slide 6: Growth Drivers
Growth Drivers Uniquely positioned to deliver Sustainable Growth 5 Organization ❑ Competitive advantage Low- cost, fully paid-up land bank Capabilities at established locations; 4 Potential sufficient to drive growth without additional Optimal Capital capital outlay Inorganic ❑ Revamped leadership,
Slide 7: Development Potential
Development Potential Strategically located land bank at low carrying cost; will enable steady & sustainable growth Location Development Potential1 (in msf) Gurgaon 104 DLF 5/DLF City 24 New Gurgaon 81 Delhi Metropolitan Region 13 Chennai 12 Hyderabad 3 Chandigarh Tri-City Region 16 Kolkata 2 Mahara
Slide 8: Development Update – Launch Calendar of 35 msf
Development Update – Launch Calendar of 35 msf Sales potential ~Rs 47,000 crore; Value enhancement (~17%) - driven by price growth Area in msf ~ Project Sales Project Size Potential Till 9MFY22 Q4FY22 FY22-23 FY23-24 Beyond FY24 (~ in msf) ( ~ in Rs crore) DLF - GIC Residential JV, 8 17,500 2.1 - 2.
Slide 9: Development Update
Development Update New Products - key tenets to the next growth cycle; Sales Potential ~ Rs 47,000 crore ❑ Scaling Up: ✓ ~ 35 msf of New Products planned in medium term ✓ Established locations with infrastructure in place ❑ Diversified Offerings: ✓ Quality Products across multiple categories caterin
Slide 10: Sales Bookings
Sales Bookings : ONE Midtown launched; received overwhelming response; Super-Luxury continues to perform; Cumulative New Sales of Rs 4,544 crore in 9MFY22 ₹ 2,018 cr 97% Sales booking trend ₹ 1,022 cr Y-o-Y ₹ 2,018 cr comparison Q3FY21 Q3FY22 ₹ 1,512 cr ₹ 2,018 cr ₹ 1,058 cr ₹ 1,014 cr ₹ 1,512 cr 33
Slide 11: Residual EBITDA as on 31.12.2021
Residual EBITDA as on 31.12.2021 Value accretion from New Sales & Price growth; Margin at 50% + EBITDA Movement EBIDTA to be EBIDTA to be recognized Consistent EBITDA accretion through Project recognized from sales from Inventory as on 31st done till 31st Dec-21 Dec-21 sales ramp-up & price growth C
Slide 12: Completed Inventory / New Products
Completed Inventory / New Products Q3FY22 Till 31st Dec-21 Receivables/Completed Inventory Total Revenue Sales Sales Sales Sales Balance Inventory Total Area recognized till Area Project Booking Booking Booking Booking Receivable Value (msf) date (in msf) (in msf) (in Rs crore) (in msf) (in Rs crore
Slide 13: Organization Capabilities
Organization Capabilities Strengthening the organization for next growth cycle ❑15 functional leaders on-boarded as part of revamped leadership ❑Leaders brought across functions including Finance / Marketing / Project Management / IT / HR Leadership ❑65 professionals added to the Sales/Marketing org
Slide 14: Our ESG Initiatives
Our ESG Initiatives Resilient Business, Responsible Operations, Reliable Engagements ❑ Platinum LEED certifications ❑ Alignment with ISO 14,001 standards ❑ Installation of MERV-14 air filters ❑ Sustainable construction material including FSC certified ❑ Reducing Energy intensity across our assets wo
Slide 15: ESG Achievements
ESG Achievements Certifications / Awards ❑ Member of DJSI Index in Emerging markets category consecutively for 2nd year ❑ Only Real estate company from India to be included in the Index ❑ Score in the 97th Percentile ❑ Ranked # 1 in India amongst listed Real Estate developers (Office -Development) ❑
Slide 16: DLF Limited: Business Update
Artist’s impression; Not an actual image DLF Limited: Business Update Entrance Lobby at ONE Midtown, New Delhi
Slide 17: Outlook
Outlook ❑ Demand continues to remain strong. Healthy absorption trends across Segments and Geographies; Fundamental demand drivers continue to aid growth cycle ❑ Improved sentiments, faster consolidation, affordability & inventory monetization providing Industry tailwinds to this growth cycle ❑ Sust
Slide 18: Highlights – Q3FY22
Highlights – Q3FY22 Strong business performance: Record high sales & Surplus cash generation Net Sales Surplus Booking Collections Cashflow Rs 2,018 crore Rs 764 crore Record sales during Rs 1,281 crore Sustained collections Generating Surplus the quarter cash consistently ESG Rating Credit Rating N
Slide 19: Q3FY22 Results
Q3FY22 Results PAT at Rs 381 crore; Surplus cash generation of Rs 764 crore ❑ Revenue stood at Rs 1,687 crore, reflecting a Y-o-Y increase of 1% ❑ EBITDA at Rs 659 crore, reflecting a Y-o-Y increase of 5%. ❑ PBT at Rs 476 crore vs LY: Rs 387 crore; Y-o-Y growth of 23% ❑ PAT at Rs 381 crore vs LY: Rs
Slide 20: Consolidated Profit & Loss Q3FY22
Consolidated Profit & Loss Q3FY22 EBITDA at 39% margins (200 bps improvement over LY); PAT (excl. exceptional items) at Rs 548 cr, Y-o-Y growth of 21% Particular % Change % Change Q3FY22 Q2FY22 Q3FY22 - Vs Q3FY21 Q3FY22 - Vs Q2FY22 Q3FY21 Income a) Revenue from operations 1,550 1,481 5% 1,543 - b) O
Slide 21: Consolidated Profit & Loss 9MFY22
Consolidated Profit & Loss 9MFY22 EBITDA at 38% margins (600 bps improvement over LY); PAT at Rs 1,100 crore, Y-o-Y growth of 78% Particular % Change 9MFY22 - 9MFY22 9MFY21 Vs 9MFY21 Income a) Revenue from operations 4,170 3,702 13% b) Other income 316 337 (6%) Total income 4,486 4,038 11% Expenses
Slide 22: Consolidated Cash Flow
Consolidated Cash Flow Consistent surplus cash generation from Operations Particulars Q3FY22 Q2FY22 Surplus Cash generation of Inflow Rs 1,664 crore during 9MFY22 •Collection from Sales 1,220 1,403 •Rental Inflow (DLF Limited) 61 45 Sub-Total Inflow 1,281 1,448 ₹ 1,664 cr Outflow •Construction (Net)
Slide 23: Consolidated Balance Sheet Abstract
Consolidated Balance Sheet Abstract Particulars As on 31.12.2021 As on 31.03.2021 Non-Current Assets 28,273 28,217 Current Assets 24,795 26,593 TOTAL ASSETS 53,068 54,810 Equity 35,968 35,364 Non-Current Liabilities 6,075 6,661 Current Liabilities 11,025 12,784 TOTAL LIABILITIES 53,068 54,810 22
Slide 24: Debt Update – Q3FY22
Debt Update – Q3FY22 Net Debt reduction of ~ Rs 764 crore in Q3/ Rs 1,664 crore in 9MFY22 Net Debt – Consistent reduction from operational surplus Sources Particulars Q1FY22 Q2FY22 Q3FY22 HDFC/Others, ₹ 652 cr, Gross opening debt 6,510 6,033 5,441 14% Banks, ₹ Diversified Less : Debt repaid during q
Slide 25: Debt Management
Debt Management Committed to further debt reduction in medium term Particulars Amount (in Rs crore) Net Debt as on 31.12.2021 (3,220) Receivables (including New Products) 3,820 Construction Payables (including New Products & capex) (1,695) Other Recoveries/Refunds 500 Residual Net Debt (595) Complet
Slide 26: Development Update
Development Update DLF City Floors, Gurugram Artist’s impression; Not an actual image Actual Status 25
Slide 27: Development Update
Development Update DLF Tech Park, NOIDA Amex Campus ,Sector -74, New Gurgaon Actual Status Artist’s impression; Not an actual image Artist’s impression; Not an actual image DLF Tech Park, NOIDA Actual Status Amex Campus, Actual Status Sector -74,New Gurgaon 26
Slide 28: Rental Portfolio Snapshot (DLF Limited) – Q3FY22
Rental Portfolio Snapshot (DLF Limited) – Q3FY22 Weighted Leasable Leased Vacant Area Average Rental WALE GAV1 Area Area Building % Leased Area rate (in msf) (in msf) (in msf) (in Rs psf) (months) (in Rs crore) DLF Center, Delhi 0.2 0.1 0.1 70% 358 77 1,038 DLF5 0.5 0.5 0.0 100% 50 25 804 IT Sez, Ko
Slide 29: DCCDL Business Update
DLF Downtown, Gurugram DCCDL Business Update 28 Artist’s impression; Not an actual image
Slide 30: Outlook & Key Updates
Outlook & Key Updates Collections remain robust; Long term outlook remains positive ❑ Focused tenant interactions and gradual recovery led to stable occupancy levels ❑ Quarter witnessed revival in Site visits & enquiries Offices ❑ Collections remain robust at 100% ❑ Covid resurgence may temporarily
Slide 31: Portfolio Snapshot – Q3FY22
Portfolio Snapshot – Q3FY22 Office occupancy levels remain stable at 86% Weighted Average Leasable Area Leased Area Vacant Area % Leased WALE GAV1 Building Rental rate Area (in msf) (in msf) (in msf) (in Rs psf) (months) (in Rs crore) Cyber City 10.2 8.5 1.6 84 113 67 15,852 Cyber Sez 2.9 2.7 0.2 93
Slide 32: Re-leasing Potential – Term Expiries
Re-leasing Potential – Term Expiries Cyber City, Gurugram* Cyber City, Chennai Total Annualized incremental Total Annualized incremental revenue1 ~ INR 45 crore revenue ~ INR 22 crore Rates in INR psf/month Rates in INR psf/month 122 125 112 76 77 81 98 100 71 67 63 72 FY22 FY23 FY24 FY 22 FY 23 FY
Slide 33: Mark-to-Market Potential
Mark-to-Market Potential Cyber City, Gurugram* Cyber City, Chennai 10% 9% 106 116 76 70 Weighted Avg. Rental Market Rental Weighted Avg. Rental Market Rental Note: FY 22 will be marginally adversely impacted due to COVID 19 Market rental means weighted average headline rental for new leases entered
Slide 34: Office Portfolio - Tenant Mix
Office Portfolio - Tenant Mix Tenant % of Revenue Cognizant 5% IBM 3% American Express 3% ▪ Well diversified & balanced portfolio EY 3% ▪ Tenants Profile: Predominantly IT/ITES, KPMG 3% BFSI companies, engineering services, Concentrix 2% etc. BA Continuum 2% ▪ Lower concentration risk as Top 10 TCS
Slide 35: Result Highlights – Q3FY22
Result Highlights – Q3FY22 Strong rebound in Retail; Offices continues to exhibit resiliency Rental Revenue Sustainability Net Debt Rs 872 crore LEED Water Zero certification Rs 19,259 crore Operational Rating Gross Leasing Portfolio Assigned 34.5 msf CRISIL AA/Stable 1.5 msf (NCD) Note: 1. Net Debt
Slide 36: Development Update
Development Update New Product development on track ~ Project Project Current Status Latest Update Size ▪ Block 2 & 3 under construction ▪ Phase-I (~1.5 msf) ▪ Pre-leasing: ~0.9 msf + ~0.4 msf of Downtown, 11 msf ▪ Structure complete; hard option Gurugram Façade/MEP work underway ▪ Next phase (~ 1.8
Slide 37: Development Update
Development Update DLF Downtown, Gurugram DLF Downtown, Chennai Artist’s impression; Not an actual image Artist’s impression; Not an actual image Actual Status Actual Status 36
Slide 38: DCCDL : Q3FY22 Results
DCCDL : Q3FY22 Results Revenue grew by 5% Y-o-Y; driven by retail, PAT at Rs 282 crore; Y-o-Y growth of 13% ❑ Revenue at Rs 1,176 crore, Y-o-Y growth of 5% ✓ Office rentals witnessing steady growth ✓ Retail revenues rebounded; Y-o-Y growth of 66% ❑ EBITDA at Rs 913 crore; Y-o-Y growth of 2% ❑ PAT at
Slide 39: DCCDL Consolidated Financial Summary - Q3FY22
DCCDL Consolidated Financial Summary - Q3FY22 Revenue grew by 5% Y-o-Y; driven by rebound in retail, PAT at Rs 282 crore, Y-o-Y growth of 13% % change % change Particulars Q3FY22 Q2FY22 Q3FY21 Q-o-Q Y-o-Y Rental Income Office 712 701 4% 722 (1%) Retail 160 120 32% 95 66% Service & Other Operating In
Slide 40: DCCDL Consolidated Cash Flow Abstract
DCCDL Consolidated Cash Flow Abstract Particulars Q3FY22 Q2FY22 Q1FY22 Operating Cash flow before Interest & tax 1,017 851 687 Interest Expense (Net) (338) (385) (346) Tax (net)1 (68) (51) (39) Operating Cash flow after Interest & tax 611 415 302 Capex (227) (479) 2 (190) Net Surplus/Deficit – After
Slide 41: DCCDL Consolidated Balance Sheet Abstract
DCCDL Consolidated Balance Sheet Abstract Particulars As on 31.12.2021 As on 31.03.2021 Non-Current Assets 29,112 29,019 Current Assets 1,747 1,471 Total Assets 30,859 30,491 Equity 6,145 5,930 Non-current Liabilities 20,967 18,837 Current Liabilities 3,747 5,724 Total Liabilities 30,859 30,491 40
Slide 42: Debt Update – Q3FY22
Debt Update – Q3FY22 Net Debt Sources Particulars Q1FY22 Q2FY22 Q3FY22 HDFC/Others , ₹ 8,118 cr, Gross opening debt 20,267 20,390 20,609 39% Diversified Less : Debt repaid during quarter (576) (1,143) (1,351) sources of funding Banks, Add : New Borrowing during Qtr. 699 1,362 1,300 ₹ 9,818 cr, 48% N
Slide 43: Disclaimer
Disclaimer This presentation contains certain forward-looking statement concerning DLF’s future business prospects and business profitability, which are subject to a number of risks and uncertainties & the actual results could materially differ from those in such forward-looking statements. The risk
Slide 44: The Camellias Club, DLF 5, Gurugram
The Camellias Club, DLF 5, Gurugram