Phoenix Mills Ltd. · NSE:PHOENIXLTD
Phoenix Mills — The Phoenix Mills — Investor Presentation (February 2023)
71 slides from Phoenix Mills's investor presentation, Feb 20, 2023
Slide 1: Cover letter to stock exchanges: Investors' Presentation
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 February 20, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchang
Slide 2: The Phoenix Mills Ltd. Corporate Presentation – Shaping our Tomorrow, Always
The Phoenix Mills Ltd. Corporate Presentation February 2023 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 ini
Slide 3: India's largest retail mall owner and operator with ~14 msft retail GLA by FY27
India’s largest retail mall owner and operator with ~14 msft retail GLA by FY27… ~11 GLA across 13 operational GLA of ~3 RETAIL malls in 8 cities under-development & msft Includes 3 under construction malls, which are msft expected to be operational in the next 6 months under-planning RETAIL Leased
Slide 4: Adding sustainable, futuristic and urban workspaces to anchor retail destinations
… adding sustainable, futuristic and urban workspaces to anchor our existing retail destinations GLA across 7 offices GLA under-development ~5 ~2 msft and under-planning office spaces in 2 cities msft spaces ~2.45 New leasing in Renewal leasing ~1.50 lakh sft YTD Jan-23 in YTD Jan-23 lakh sft Rental
Slide 5: Expansion through densification of operational assets upto FY27
Expansion through densification of operational assets upto FY27 Current GLA GLA under Expansion FY27 GLA Asset (in msft) Retail Office Retail Office Retail Office COMPLETED DENSIFICATION EXPANSIONS Phoenix Marketcity, Pune ~1.19 ~0.83 - - ~1.19 ~0.83 Phoenix Marketcity, Mumbai ~1.14 ~1.06 - - ~1.14
Slide 6: Expansion through new, under-development assets upto FY27
Expansion through new, under-development assets upto FY27 Planned GLA Asset (in msft) Retail Operations Commence Retail Office Phoenix Citadel, Indore Dec-22 ~1.00 - Phoenix Palladium, Ahmedabad Feb-23 ~0.77 - Phoenix Mall of the Millennium, Pune Q1 FY24 ~1.10 ~1.20 Phoenix Mall of Asia, Bangalore Q
Slide 7: Growth in annuity portfolio by FY27
Growth in annuity portfolio by FY27 Segments FY 22 FY 27 Retail 6.9 msft 2.0x 14.0 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 Note: Operational retail portfolio is ~8 msft as of 01 Janu
Slide 8: Creating destinations of the future
Creating destinations of the future Indicative Render 7
Slide 9: A palatial retail experience spread over 15 acres
A palatial retail experience spread over 15 acres Indicative Render 8
Slide 10: A palatial retail experience spread over 15 acres
A palatial retail experience spread over 15 acres Actual Photo 9
Slide 11: A palatial retail experience spread over 15 acres
A palatial retail experience spread over 15 acres Actual Photo 10
Slide 12: Interior shots
Interior shots Actual Photo Actual Photo 11
Slide 13: Interior shots
Interior shots Actual Photo Actual Photo 12
Slide 14: Case Study: Attractive starting yields on Phoenix Palassio
Case Study: Attractive starting yields on Phoenix Palassio PMC malls are currently in Retail GLA of ~0.9 msft* second leg of this growth 200 ~98% leased occupancy* Lease renewal at Q3 FY23 Trading Density – ~Rs. 1,578 pspm Rent PSF (Rebased to 100) 180 significantly higher rates Q3 FY23 rental rate
Slide 15: The Retail destination of Madhya Pradesh – Opened on 1 December 2022
The Retail destination of Madhya Pradesh – Opened on 1 December 2022! Indicative Render 14
Slide 16: The Retail destination of Madhya Pradesh – Opened on 1 December 2022
The Retail destination of Madhya Pradesh – Opened on 1 December 2022! Actual Photo 15
Slide 17: Opulent Grand Arrivals, Venetian inspired Chandeliers & Glasswork
Opulent Grand Arrivals, Venetian inspired Chandeliers & Glasswork Actual Photo Actual Photo ▪ Retail GLA of ~1 msft* ▪ Opulent grand arrivals ▪ Magnificent chandeliers in sky lit atrium ▪ Landscaped gardens ▪ Spectacular musical fountains ▪ Interiors inspired by the beauty of Italy ▪ Dedicated enter
Slide 18: Interior Shots
Interior Shots Indicative Render Actual Photo 17
Slide 19: Interior Décor and Installations
Interior Décor and Installations Actual Photo Actual Photo Actual Photo Actual Photo Actual Photo 18
Slide 20: Performance Update – January 2023
Performance Update – January 2023 Performance Update – for the second month of operations i.e. January 2023: • Leased Occupancy - 94% • Trading Occupancy - 50% (up from 42% in Dec-22) • Trading Density – • Currently in the range of Rs. 700- 800 psf pm • Projected to reach ~ Rs. 1,000 psf pm in FY24
Slide 21: The Luxury Retail Destination of Gujarat – Opening in February 2023
The Luxury Retail Destination of Gujarat – Opening in February 2023 Indicative Render 20
Slide 22: The Luxury Retail Destination of Gujarat
The Luxury Retail Destination of Gujarat Actual Photo Actual Photo 21
Slide 23: Interior Shots
Interior Shots Actual Photo Actual Photo Actual Photo 22
Slide 24: The Luxury Retail Destination of Gujarat
The Luxury Retail Destination of Gujarat ▪ Retail GLA of ~0.77 msft* ▪ ~99% leased** ▪ Luxurious atrium with green art and elegant cafés ▪ Deluxe 9 Audi multiplex ▪ ~20,000+ sft entertainment space Indicative Render *Data as of Q3FY23 **As of January 2023 23
Slide 25: An Iconic 1.2 msft Mall at Hebbal, Bangalore
An Iconic 1.2 msft Mall at Hebbal, Bangalore Indicative Render 24
Slide 26: An Iconic 1.2 msft Mall at Hebbal, Bangalore
An Iconic 1.2 msft Mall at Hebbal, Bangalore Actual Photo 25
Slide 27: 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 ~87% leased** ▪ Part of an integrated campus – ~4,000 homes; ~4msft office space ▪ Multiple grand arrivals, ~40+ open plan restaurants, Indoor Fan Park Indicative Render *Data as of Q3FY
Slide 28: Anchored with Grade A office spaces
Anchored with Grade A office spaces Indicative Render Indicative Render 27
Slide 29: The new epicentre for West Pune to open doors in Q1 FY24
The new epicentre for West Pune to open doors in Q1 FY24 Indicative Render 28
Slide 30: The new epicentre for West Pune to open doors in Q1 FY24
The new epicentre for West Pune to open doors in Q1 FY24 Actual Photo 29
Slide 31: Rains of Nourish – 2nd floor grand entry
Rains of Nourish – 2nd floor grand entry ▪ Retail GLA of ~1.2 msft* ▪ Anchored by offices of over 1msft* ▪ Retail ~88% leased** ▪ Open plan restaurants; eclectic F&B village ▪ Indoor Fan park ▪ 14 screen megaplex ▪ Grand arrival and luxury Indicative Render boulevard *Data as of Q3FY23 **As of Janua
Slide 32: Integrated with office towers
Integrated with office towers Indicative Render Indicative Render 31
Slide 33: Project Rise – the Jewel in the Phoenix crown
Project Rise – the Jewel in the Phoenix crown Office GLA: ~1.1 msft Retail GLA: ~0.20 msf Indicative Render Indicative Render 32
Slide 34: Alipore, Kolkata: East India's retail destination – commenced construction
Alipore, Kolkata: East India’s retail destination – commenced construction Retail GLA: ~1 msf with additional development potential Indicative Render 33
Slide 35: Update on other Under Development Projects
Update on other Under Development Projects ✓Piling and diaphragm work is in progress Kolkata Mall ✓Demolition work for on-site structures has completed ✓Rock anchoring and excavation work in progress Rise, Mumbai ✓Shore piling work completed ✓Construction work commenced in June 2022 ✓Design work com
Slide 36: Surat - our second retail destination in Gujarat
Surat - our second retail destination in Gujarat ▪ Acquired land parcel of ~ 7 acres in December 2022 in partnership with GIC and Bsafal group ▪ Land consideration of ~Rs. 501 cr (incl stamp duty) ▪ Planned Retail GLA of ~1msf ▪ Located at the Citylight Junction, Udhana Magdalla Road ▪ Serves promin
Slide 37: Future-proofing our existing assets by densification
Future-proofing our existing assets by densification Indicative Render 36
Slide 38: 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 39: Phoenix Marketcity, Pune – Fountainhead Office Towers
Phoenix Marketcity, Pune – Fountainhead Office Towers added to the existing retail development ▪ Existing Mall GLA: ~1.10 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 goer
Slide 40: 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 41: Growth by Densification – Phoenix Marketcity, Bangalore
Growth by Densification – Phoenix Marketcity, Bangalore ▪ Expansion Potential: ▪ Office: ~1 msft ▪ Retail: ~300,000 sft ▪ Hotel: 400 Keys ▪ All approvals in place ▪ Construction commenced Indicative Render 40
Slide 42: Operational Office portfolio to grow from ~2 msft to ~7 msft
Operational Office portfolio to grow from ~2 msft to ~7 msft in the next 4 years Offices at Phoenix MarketCity, Mumbai Asia Towers, Hebbal, Bangalore Millennium Towers, Wakad, Pune Fountainhead Offices at Rise Offices at Phoenix Offices at Phoenix MarketCity, Phoenix MarketCity, Pune Palladium, Mumb
Slide 43: Resumption of marquee events with easing of COVID-19 restrictions
Resumption of marquee events with easing of COVID-19 restrictions Prateek Kuhad Live-in concert at Phoenix Citadel, Indore 42
Slide 44: Resumption of marquee events with easing of COVID-19 restrictions
Resumption of marquee events with easing of COVID-19 restrictions MLTR Live-in concert at Phoenix Marketcity, Kurla 43
Slide 45: Resumption of marquee events with easing of COVID-19 restrictions
Resumption of marquee events with easing of COVID-19 restrictions Sonu Nigam Live-in concert at Phoenix Marketcity, Bangalore 44
Slide 46: Resumption of marquee events with easing of COVID-19 restrictions
Resumption of marquee events with easing of COVID-19 restrictions Lucky Ali Live-in concert at Phoenix Marketcity, Kurla 45
Slide 47: Prudent Capital Allocation
Prudent Capital Allocation Indicative Render 46
Slide 48: Raised equity capital of ~Rs. 4,873 cr in the last 24 months
Raised equity capital of ~Rs. 4,873 cr in the last 24 months What? When? How much? Qualified Institutional August 2020 ~Rs. 1,100 cr Placement (QIP) JV with CPPIB for Kolkata May 2021 ~Rs. 384 cr Development Equity Infusion in existing retail May 2021 & Dec 2021 ~Rs. 539 cr platform with CPPIB (ISML
Slide 49: Balanced Debt Mix and Prudent Funding Strategy for Growth
Balanced Debt Mix and Prudent Funding Strategy for Growth Effective cost of debt is down ~78bps from end-FY20 to ~8.41% Debt drawdowns deferred to last 15-18 months at end-Q3 FY23 of the construction period for under construction assets At end-Q3 FY23, ✓ ~91% of debt is in the form of LRDs on indivi
Slide 50: Focus on optimizing cost of debt and reducing Net Debt levels
Focus on optimizing cost of debt and reducing Net Debt levels Effective cost of debt reduced by ~130 bps and Net Debt reduced from ~Rs. 4,600 cr (FY20) to ~Rs. 2,090 cr (Q3 FY23) of which PML share is ~Rs. 1,550 cr 9.19% 8.17% 8.41% 7.30% Spread: Spread: 479 bps 216 bps 6.25% 4.40% 4.00% 4.00% Mar-2
Slide 51: Steady decline in debt on operating portfolio
Steady decline in debt on operating portfolio Debt on Operational Portfolio (Rs. cr) 4,395 4,386 4,457 4,288 4,170 4,202 4,166 4,177 4,019 3,858 3,723 3,596 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Debt on Under Construction Portfolio (Rs. cr) 554 579 531 3
Slide 52: December 2022 Debt and Cash Position
December 2022 Debt and Cash Position Group Level PML Share Amount Rs. cr Liquidity (Bank balance + 1,863^ 1,459 Investments + DSRA)* Gross Debt 3,953 3,009 Net Debt 2,090 1,550 9M FY23 EBITDA 1,104^ 914 ^ Includes Starboard which does not form part of PML Consolidated * Does not include Rs. 1,285 cr
Slide 53: Retail target cities beyond 2027
Retail target cities beyond 2027 Priority Cities Under early evaluation Jaipur Chandigarh Nagpur NCR Navi Mumbai Goa Hyderabad Thane Vizag 52
Slide 54: Strategic Partnerships driving the next leg of growth
Strategic Partnerships driving the next leg of growth By the Mekong, The St. Regis, Mumbai 53
Slide 55: Strategic Partnerships: PML CPPIB Alliance
Strategic Partnerships driving next leg of growth: PML CPPIB Alliance Phoenix Marketcity Bangalore Phoenix Citadel, Rise (Office + Retail), + Under-development offices ▪ Retail GLA: ~5.8 msft Indore Mumbai + hotel & Retail expansion ▪ Offices GLA: ~4.1 msft ▪ ~400 keys Grand Hyatt hotel Mall of the
Slide 56: Strategic Partnerships: PML GIC Alliance
Strategic Partnerships driving next leg of growth: PML GIC Alliance Phoenix MarketCity, Pune Phoenix Marketcity, Kurla Surat ▪ FY20 NOI of ~Rs. 370 cr ▪ Enterprise Value of ~Rs. 5,500 cr ▪ Capital infused by GIC of ~Rs. 1,500 cr ▪ GIC’s equity stake – 33% ▪ Capital infusion to fund potential acquisi
Slide 57: ~33% of current operational retail GLA up for repricing in the next three years
~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 years 56
Slide 58: Strong Operational performance across asset-classes
Strong Operational performance across asset-classes Asset class Parameter FY22 YTD Jan23 ~Rs. 5,011 cr ~Rs. 7,853 cr (YTD Jan23) Retail Consumption ~72% of FY20 ~127% of YTD Jan23 Office Gross Leasing ~400,000 sft ~395,000 sft (Jan23) Occupancy ~59% ~83% (Jan23) Hospitality* ARR ~Rs. 7,306 ~Rs. 17,7
Slide 59: Strong Financial performance across asset-classes
Strong Financial performance across asset-classes Asset class Parameter FY22 9MFY23 Retail EBITDA ~Rs. 786 cr ~Rs. 982 cr 28% over 9M FY20 Office Total ~Rs. 158 cr ~Rs. 126 cr Income 48% over 9M FY20 Hospitality* EBITDA ~Rs. 32 cr ~Rs. 115 cr 29% over 9M FY20 *Information pertaining to The St. Regis
Slide 60: 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 59
Slide 61: Residential Portfolio – Significant free cash flows from inventory
Residential Portfolio – Significant free cash flows from ready inventory and under- construction inventory Receivable against Gross value of Average Price achieved in H1 FY23 sold inventory inventory* Value of ~Rs. 250 cr ~ Rs. 2,672 cr ~Rs. 16,473 psf inventory* ~ Rs. 2,422 cr Inventory of saleable
Slide 62: 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 63: New age initiatives
Download the Phoenix Nhane to book your table at any Phoenix ‘restaurant in easy steps. w PHOENIX ‘shonce: | your bills on the Nhance app and points to redeem "vouchers from top brands. w PHOENIX hance’ yw PHOENIX ‘hones = | resent ill Book your table in seconds at any Phoenix Palassio restaurant by
Slide 64: 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 65: Native Customer Reward Program - Phoenix Nhance
Native Customer Reward Program - Phoenix Nhance Phoenix Palladium, Mumbai Phoenix MarketCity, Live across 6 Malls Bangalore 700,000 active members Phoenix MarketCity, Chennai Delivering experience enhancing services like Phoenix MarketCity, parking, baggage drops! Pune Expanding gratification Phoeni
Slide 66: Environmentally conscious & responsible efforts
Environmentally conscious & responsible efforts 65
Slide 67: 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 68: 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 69: 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 70: 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 71: Thank you
Thank you Varun Parwal Madhurima Kane Email: varun.p@phoenixmills.com Email: madhurima.kane@phoenixmills.com Website: https://www.thephoenixmills.com/investors 70
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