Phoenix Mills Ltd. · NSE:PHOENIXLTD
Phoenix Mills — The Phoenix Mills — Shareholder Meeting (September 2020)
66 slides from Phoenix Mills's shareholder meeting presentation, Sep 25, 2020
Slide 1: Presentation to Shareholders at 115th Annual General Meeting
� 1:ii TI-IE PHOEN ,.,,. MILLS LIMITE 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.: L171 00MH1905PLC000200 September 25, 2020 BSE Limited National Stock Exchange of Indi
Slide 2: The Phoenix Mills Ltd. 115th AGM Presentation
Phoenix Palassio, Lucknow GLA: ~0.9 msft Launched on 8th July 2020 The Phoenix Mills Ltd. 1 115th AGM Presentation GLA is an estimate based on current plans and market/company norms and is subject to change based on changes in development plans and tenant negotiations.
Slide 3: Content
Content • Who We Are • Parameters of Growth in EBITDA and portfolio 1. Organic Growth 2. Growth from Brownfield Acquisition 3. Growth from New Build 4. Growth from CPPIB JV 5. Case Study – Pune 6. Growth from Densification / Expansion 7. Office Expansion • Cash flows from Residential Business • Adva
Slide 4: Phoenix MarketCity Pune
Photo shot at location PHOENIX MARKETCITY PUNE POLE Position 3
Slide 5: India's largest mall owner showing >13% rental CAGR FY13 through FY20
India's largest mall owner showing >13% rental CAGR FY13 through FY20 Total of ~12 msft mall GLA expected to be operational by FY24 GLA of GLA across 9 operational ~7 msft RETAIL malls in 6 cities under-development & ~5 msft under-planning RETAIL Leased occupancy EBITDA margin >100% in Retail Malls
Slide 6: Dynamic and diverse leading developer of mixed-use projects
Dynamic and diverse leading developer of mixed-use projects Retail Commercial Hospitality Residential Operational Operational The St. Regis, Mumbai Total Saleable + Courtyard by Marriott, Agra Retail Spaces GLA Office Spaces GLA Area ~7 ~1.3 588 ~4 msft msft keys msft Under-development & Under-devel
Slide 7: Owner and Manager of India's Largest Portfolio
Owner and Manager of India’s Largest Portfolio Operational and Under Construction Retail GLA Largest Owner of Operational Retail Malls In India (msft) for Listed Developers in India 4.8 Largest under development mall portfolio as on date 2.6 6.8 4.1 4.3 1.8 Presence across key Indian cities 1.2 0.6
Slide 8: Portfolio in India's top cities
Portfolio in India’s top cities Agra Indore Hospitality Ahmedabad Mall Courtyard by Marriott – (193 keys) Phoenix Citadel Mall Bareilly – (~1 msft) Palladium Lucknow – (~0.7 msft) Mall Phoenix United – (0.34 msft) Mall Mumbai Phoenix United – (0.37 msft) Phoenix Palassio – (0.90 msft) Mall HSP & Pal
Slide 9: New Town Centre – The MarketCity concept
New Town Centre – The MarketCity concept SBA – ~0.16 msft SBA – ~0.28 msft Palladium Offices Commercial GLA – ~0.42 msft SBA – ~0.1 msft GLA – ~1.00 msft Location – City Centre – Velachery, Chennai Land Area – 14.6 acres Retail GLA – ~1.22 msft Residential Saleable Area – ~0.54 msft Commer
Slide 10: Phoenix MarketCity and Palladium, Chennai
Phoenix MarketCity and Palladium, Chennai Photo shot at location Photo shot at location FY14-20 Rental Income (Rs. Mn) CAGR – 13% 1,777 1,809 1,421 1,196 1,286 1,109 858 FY14 FY15 FY16 FY17 FY18 FY19 FY20 9
Slide 11: HSP & Palladium, Mumbai
HSP & Palladium, Mumbai Photo shot at location FY14-20 Rental Income (Rs. Mn) CAGR – 9% 3,432 3,486 2,837 3,022 2,601 2,293 2,039 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY14-20 Consumption (Rs. Mn) CAGR – 4% 15,438 16,264 16,456 17,044 17,102 13,185 14,403 FY14 FY15 FY16 FY17 FY18 FY19 FY20 10
Slide 12: Phoenix MarketCity, Mumbai
A Leading Developer of Mixed Use Projects Phoenix MarketCity, Mumbai Centrium Phoenix Paragon Plaza Art Guild House Asset Class GLA (msft) Retail ~1.14 Office ~1.52 Parking ~1.2 Total ~3.86 GLA is an estimate based on current plans and market/company norms and is subject to change based on changes i
Slide 13: Phoenix MarketCity, Bangalore
Phoenix MarketCity, Bangalore Photo shot at location ~1.0 msft Gross Leasable Area ~97% FY20 Occupancy Rs. 13,140 Million FY20 Consumption Rs. 1,795 pspm FY20 Trading Density GLA is an estimate based on current plans and market/company norms and is subject to change based on changes in development p
Slide 14: Phoenix MarketCity, Mumbai
Phoenix MarketCity, Mumbai Photo shot at location CAGR FY17-20 – 11% Rental Income (Rs. Mn) 1,216 1,270 1,102 934 991 954 926 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY14-20 Consumption (Rs. Mn) CAGR – 14% 9,559 9,790 8,143 6,957 5,480 5,957 4,460 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Erstwhile weaker mall
Slide 15: Consumption & Rentals 15% & 14% CAGR FY13 through FY20
Consumption & Rentals 15% & 14% CAGR FY13 through FY20 Company may consider options to monetise; including through a REIT Mall consumption (Rs. bn) Mall rentals (Rs. bn) CAGR: CAGR: 15% 14% 10.2 68.9 69.3 9.9 63.2 8.7 57.8 54.0 7.7 49.3 7.1 6.5 40.3 5.7 4.2 25.7 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY
Slide 16: Brownfield Acquisitions
Brownfield Acquisitions Photo shot at location Phoenix Palassio, Lucknow Possession in August 2018 Completed construction and opened to public in less than 24 months Photo shot at location Phoenix Citadel, Indore Acquisition in July 2018 15
Slide 17: Phoenix Palassio
4 4 a ” : it al 2. . . 1! ae j I a ; PHOENLS. RenderetijmaresPlans, desigialiaamesian clement staat wy f PHOENIX PALASSIO’
Slide 18: Phoenix Palassio, Lucknow — West Entrance
Phoenix Palassio, Lucknow — West Entrance with Spectacular Musical Fountain 0.90 msft Gross Leasable Area ~Rs. 3.3 bn of equity infused from internal accruals Construction cost per sq. ft. of ~Rs. 2,500 Mall leased ~90%+ basis LOIs executed Data as on 30 June 2020. Gross leasable area is an estimate
Slide 19: Expansive Spaces, Opulent Interiors, Breathtaking Chandeliers
Expansive Spaces… Opulent Interiors… Breathtaking Chandeliers Photo shot at location Photo shot at location 18
Slide 20: Phoenix Citadel, Indore — Architectural Marvel
Phoenix Citadel, Indore — Is it an Architectural Marvel? 19
Slide 21: Phoenix Citadel, Indore — Tuscany Street
Phoenix Citadel, Indore — Tuscany Street: Reflecting classical hues of Florence Interior design inspired by the beauty of Italy Brownfield asset acquired in auction at ~Rs. 2,100 per sq. ft. Expected to start operations in FY22 at estimated cost of ~Rs. 3,500 per sq. ft. Strong leasing traction witn
Slide 22: Phoenix Citadel — Opulent Grand Arrivals
Phoenix Citadel — Opulent Grand Arrivals, Venetian inspired Chandeliers & Glasswork Skylit arrival atrium with grand fountain Venice Street View 21
Slide 23: Palladium Ahmedabad — Luxury mall
Palladium Ahmedabad — Ahmedabad’s very own Luxury mall 0.70 msft Gross Leasable Area Gross leasable area is an estimate based on current plans and market/company norms and is subject to change based on changes in development plans and tenant negotiations. 22
Slide 24: Palladium Ahmedabad — Timeless Luxury
Palladium Ahmedabad — Timeless Luxury 23
Slide 25: Palladium Ahmedabad — Modernity and Sophistication
Palladium Ahmedabad — Modernity and Sophistication 24
Slide 26: PML CPPIB Alliance — Paved path for the next leg of growth
PML CPPIB Alliance — Paved path for the next leg of growth 25
Slide 27: One Brownfield and Two Greenfield Acquisitions
One Brownfield and Two Greenfield Acquisitions Quick commitment of equity money. Zero debt drawn in these SPVs as on date Phoenix Millennium Phoenix Mall of Asia Phoenix Citadel Proposed Retail and Retail GLA - ~1.1 msft Retail GLA - ~1.2 msft Retail GLA – ~1 msft Office GLA Office GLA – ~0.6 msft O
Slide 28: Phoenix Mall of Asia, Bangalore
Phoenix Mall of Asia, Bangalore Retail GLA ~1.2 msft under construction Office GLA ~1.2 msft under planning Prime parcel in Hebbal of ~13 acres GLA is an estimate based on current plans and market/company norms and is subject to change based on changes in development plans and tenant negotiations. 2
Slide 29: Mall of Asia, Bangalore — Arrival at Ground Floor
Mall of Asia, Bangalore — Arrival at Ground Floor into Eden Arcadia Equity infused ~Rs. 8.6 bn No debt on the project on date Expected to be Operational in FY24 Strong leasing traction Data as on 30 June 2020 Under development and under planning assets are subject to change and carry risks of planni
Slide 30: Mall of Asia, Bangalore — A 15 screen multiplex
Mall of Asia, Bangalore — A 15 screen multiplex 29
Slide 31: Mall of Asia, Bangalore — Tiered atrium
Mall of Asia, Bangalore — Tiered atrium with cafes and restaurants 30
Slide 32: Phoenix Millennium, Pune
Phoenix Retail GLA ~1.1 msft under construction Office GLA ~0.6 msft under planning Prime parcel in Wakad of ~13 acres 31 GLA is an estimate based on current plans and market/company norms and is subject to change based on changes in development plans and tenant negotiations.
Slide 33: Phoenix Millennium, Pune — Plaza Flourish
Phoenix Millennium, Pune — Plaza Flourish, the gateway to luxury Equity infused ~Rs. 5.2 bn No debt on the project on date Expected to be Operational in FY24 Data as on 30 June 2020 Development timelines and costs carry risks of planning, approvals, execution and market conditions which may be beyon
Slide 34: Phoenix Millennium, Pune — 2nd floor grand entry
Phoenix Millennium, Pune — Rains of Nourish, 2nd floor grand entry 33
Slide 35: Growth by Densification – Phoenix MarketCity Bangalore
Growth by Densification Phoenix MarketCity Bangalore Proposed Office 3rd and 4th Retail Tower 1 - B Wing expansion ~0.35 msft GLA ~0.31 msft GLA Proposed Office Tower 1 –A Wing ~0.37 msft GLA Proposed Office Tower 2 ~0.33 msft GLA Proposed Grand Hyatt Hotel ~300 keys Existing Mall GLA is an estimate
Slide 36: Case Study – Densification and Organic Growth
Case Study – Densification and Organic Growth Phoenix MarketCity Pune Photo shot at location ~1.2 msft Gross Leasable Area ~96% FY20 Occupancy Rs. 12,592 Million FY20 Consumption Rs. 1,453 pspm FY20 Trading Density 3535 GLA is an estimate based on current plans and market/company norms and is subjec
Slide 37: Phoenix MarketCity, Pune
Phoenix MarketCity, Pune Phoenix MarketCity Pune Photo shot at location FY14-20 Rental Income (Rs. Mn) CAGR – 13% 1,589 1,667 1,386 1,202 941 1,035 789 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Average Trading Density (Rs. pspm) 1,453 1,208 1,224 1,334 975 1,077 812 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Tradi
Slide 38: Phoenix MarketCity, Pune – Grand Interiors and Liberty Square
Phoenix MarketCity, Pune – Grand Interiors and Large Space at Liberty Square Photo shot at location Grand Interiors Photo shot at location Events at Liberty Square 37
Slide 39: Consistent Annual Double Digit Growth Phoenix MarketCity Pune
Consistent Annual Double Digit Growth Phoenix MarketCity Pune Consistent Growth in Consumption (Rs. Mn) High Rental Yield (Rs. Mn) 81 Waiver on account of lock-down FY13-20 FY13-20 CAGR – ~16% CAGR – ~15% 1,589 1,667 12,207 12,592 1,396 10,828 1,202 9,626 8,659 1,035 7,650 941 6,221 789 640 4,568 FY
Slide 40: Phoenix MarketCity Pune a clear and established leader
Phoenix MarketCity Pune a clear and established leader Phoenix MarketCity Pune Consumption grew at a CAGR of 16% over the Highly sought-after brands with limited presence in Pune last 7 years (FY13 to FY20) under single roof PMC Pune following the growth trajectory of Scotch & Armani Diesel Superdry
Slide 41: Phoenix MarketCity, Pune is the Undisputed Leader
No competition in the micro market Phoenix MarketCity Pune Inorbit Mall Amanora Higher vacancies Jewel Square G-Corp Pulse Mall Nitesh Hub Have been fully or partially converted to office spaces Seasons Mall Phoenix MarketCity, Several international brands seen at PMC Pune is the Pune not present UN
Slide 42: Growth by Densification – Phoenix MarketCity Pune
Growth by Densification Phoenix MarketCity Pune Offices Fountainhead Tower 1 ~0.17 msft GLA Offices Fountainhead Tower 3 ~0.41 msft GLA Offices Fountainhead Tower 2 ~0.25 msft GLA 3rd Floor Retail ~0.08 msft GLA Existing Mall (LG + G + 2) ~1.1 msft GLA GLA is an estimate based on current plans and m
Slide 43: Palladium Case Study & Densification – Future Proofing
Palladium Case Study & Densification – Future Proofing Retail GLA expansion of – Existing Unutilised Area: ~0.15 msft – New Construction Area: ~0.35 msft Total: ~0.50 msft Office Expansion Tower 2 Office Expansion Tower 1 Office GLA Expansion: ~1.00 msft No cost of land TDR / Premium FSI to be purch
Slide 44: ~1.5 msft GLA being added at one of India's most expensive Real Estate
~1.5 msft GLA being added at one of India's most expensive Real Estate Enhanced retail offering at India’s iconic shopping location Grand Office Lobby 43
Slide 45: Operational commercial portfolio to grow five fold in 4 years
Operational commercial portfolio to grow five fold in 4 years Offices at Phoenix MarketCity, Mumbai Rise Offices at HSP and Palladium Offices at Phoenix Millennium, Pune Offices at Phoenix MarketCity, Offices at Phoenix MarketCity, Bangalore Pune Offices at Palladium, Chennai Development timelines a
Slide 46: Office Expansion by densification of mixed use developments
Office Expansion by densification of mixed use developments GLA^ Operational Office Assets Location (msft) Art Guild House Mumbai 0.63 Phoenix Paragon Plaza Mumbai 0.31 Office portfolio to grow The Centrium Mumbai 0.10 from 1.31 msft to Phoenix House Mumbai 0.10 ~6.19 msft in 4 years Fountainhead To
Slide 47: Residential Developments
Residential Developments 9 Towers - One Bangalore West 5 Towers – Kessaku, Bangalore Towers 1 to 6 – OC received OC received for all Tower 7 – Under construction 46
Slide 48: One Bangalore West - Robust Cash Flow from ready inventory
One Bangalore West - Robust Cash Flow from ready to move in inventory (Towers 1-6) Average Base Price achieved in FY20 for transactions in Total net value of inventory* + Tower 1-6 Collections against sold flats ~Rs.3.3 billion ~Rs. 15,260 per sq. ft. Value of inventory* Collectable against sold ~Rs
Slide 49: One Bangalore West – Value in Under Construction Towers 7-9
One Bangalore West – Sizeable Value in Under Construction Towers 7-9 Photo shot on location of a completed tower of One Bangalore West Average Base Price achieved in FY20 for Tower 7 ~Rs. 14,400 per sq. ft. Inventory of saleable area in under construction towers (Tower 7-9) ~0.86 msft Value of under
Slide 50: Kessaku – The Masterpiece
Kessaku – The Masterpiece Lobby Infinity Pool The Garden Club The Sky Club 49
Slide 51: Kessaku - Robust Cash Flow from sale of ready inventory
Kessaku - Robust Cash Flow from sale of ready to move in inventory Average Base Price achieved in FY20 for transactions in Total net value of inventory* + Towers - Sora, Niwa & Mizu Collections against sold flats ~Rs.12.2 billion ~Rs. 15,500 per sq. ft. Value of inventory* ~Rs. 11.5 bn Inventory of
Slide 52: Amenities – Club One
Amenities – Club One Photo shot at location 51
Slide 53: Fund Raising to further strengthen PML's balance sheet
Fund Raising to further strengthen PML’s balance sheet June 2020 July – August 2020 August 2020 01 September 2020 Rs. 475 mn Rs. 7,480 mn Cash generated despite Rs. 10,890 mn Rs. 18,845 mn Net Cash Position properties being shut during Successfully raised through QIP Group Liquidity the lock-down QI
Slide 54: Advantage Phoenix
wae Advantage Phoenix
Slide 55: Awards, Accolades, Excellence
Awards ● Accolades ● Excellence HIGH STREET PHOENIX & PHOENIX MARKETCITY PHOENIX MARKETCITY PHOENIX MARKETCITY PHOENIX MARKETCITY PALLADIUM PUNE BANGALORE MUMBAI CHENNAI ET Now 2020 ET Now – Global Awards 2020 Times Business Awards 2020 ET Business Icon Awards 2020 Times Retail Icon Awards 2020 Most
Slide 56: Concert at Liberty Square, Phoenix MarketCity, Pune
Concert at Liberty Square, Phoenix MarketCity, Pune Photo shot at location 55
Slide 57: A Concert Venue
A Concert Venue Photo shot at location Guru Randhawa Concert at Phoenix MarketCity, Mumbai 56
Slide 58: Larger than life installations
Larger than life installations Photo shot at location Photo shot at location High Street Phoenix, Mumbai Photo shot at location Phoenix MarketCity, Mumbai Phoenix MarketCity, Mumbai 57
Slide 59: Spectacular Events
Spectacular Events Amit Trivedi Euphoria Shaggy Shankar Mahadevan Sonu Nigam Lucky Ali Vengaboys All photos shot at location Divine The Local Train 58
Slide 60: Record breaking festive décor
Record breaking festive décor Tallest Christmas Tree for 3 years in a row Photo shot at location 59
Slide 61: Art Gallery
Art Gallery Photo shot at location Photo shot at location Palladium, Mumbai Palladium, Mumbai 60
Slide 62: Tech Integration – Phoenix Nhance App
Tech Integration – Phoenix Nhance App Loyalty Program with In-Mall Real Time Earn & Burn Navigation App Capability Parking Pre Booking & Navigation Event Ticket Booking Hands Free Shopping Customer Chat Bot Customer Behavior Contactless Food & Big Data Ordering 61
Slide 63: Omni-Channel – A digital extension for in-mall brands
Omni-Channel – A digital extension for in-mall brands - Under Development Online Sales & Engagement All the brands available in the mall available on boarded online 62 to enable online sales Multiple Modes & Pan India Reach Accessible through multiple devices with identical user interaction and ease
Slide 64: Omni-Channel - Boosting consumption
Omni-Channel - Boosting consumption - Under Development Additional consumption captured Home delivery of in- Phoenix store products Omni-channel Ship-to-store and pick-up Customer Select in-store, get delivered at home Phoenix malls Select in-store, purchase at store In-mall store Omni-channel platf
Slide 65: Omni-Channel - Value creation for all stakeholders
Omni-Channel - Value creation for all stakeholders - Under Development Customers Surf through more Convenience of Unique online offering Rewards stores in less time shopping 24X 7 of premium in-season Earn and Burn through multiple products devices Retail partners Bespoke marketing and Easier integr
Slide 66: Thank you!
Thank you! Varun Parwal Advait Phatarfod Deepak Purswani Contact: +91 22 3001 6737 Contact: +91 22 3001 6804 Contact: +91 22 3001 6789 Email: Email: Email: varun.p@phoenixmarketcity.in advait.p@phoenixmarketcity.in deepak.purswani@phoenixmarketcity.in Bijay Sharma / Rohan Rege Contact: +91 22 6169 5
The Phoenix Mills — Shareholder Meeting (September 2020) on 6ix