Phoenix Mills Ltd. · NSE:PHOENIXLTD
Phoenix Mills — The Phoenix Mills — Investor Presentation (February 2023)
57 slides from Phoenix Mills's investor presentation, Feb 9, 2023
Slide 1: Investors' Presentation filing cover letter
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 09, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchang
Slide 2: The Phoenix Mills Ltd. Corporate Presentation, February 2023
The Phoenix Mills Ltd. Phoenix Citadel, Indore GLA: ~1 msf Corporate Presentation Launched on 1st December 2022 February 2023
Slide 3: What is the Mall of the Future?
What is the Mall of the Future? 2
Slide 4: Is it about larger-than-life art installations?
Is it about larger-than-life art installations? Phoenix Marketcity, Mumbai Phoenix Palassio, Lucknow Phoenix Palassio, Lucknow 3
Slide 5: Does it have an eclectic F&B Village?
Does it have an eclectic F&B Village? Indicative Render Indicative Render Indicative Render 4
Slide 6: Is it about cutting edge entertainment experiences…
Is it about cutting edge entertainment experiences… Indicative Render 5
Slide 7: …with open plan cafes and retail…
…with open plan cafes and retail… Indicative Render Indicative Render 6
Slide 8: ..and office spaces anchored on top of the mall?
..and office spaces anchored on top of the mall? Indicative Render 7
Slide 9: Is it about an Indoor Fan Park within the Mall?
Is it about an Indoor Fan Park within the Mall? Indicative Render 8
Slide 10: Is it about community spaces?
Is it about community spaces? Indicative Render Indicative Render 9
Slide 11: Is the Mall of the Future a concert venue?
Is the Mall of the Future a concert venue? Arman Mallik Concert at Phoenix Marketcity, Mumbai 10
Slide 12: Is it about a luxury mall arrival with imposing storefronts?
Is it about a luxury mall arrival with imposing storefronts? Indicative Render 11
Slide 13: Is it a regional consumption centre?
Is it a regional consumption centre? 12
Slide 14: Is it large enough to cover the entire spectrum of wallet spend?
… and is it large enough to cover the entire spectrum of the wallet spend? Fashion, Accessories & Jewellery F&B Electronics Gourmet Supermarket Our Hypermarket FEC, Multiplex, offerings Entertainment Bridge to Mid / Luxury Luxury Premium 13
Slide 15: Is it a landmark that becomes the pride of the city?
Is it a landmark that becomes the pride of the city? Phoenix Palassio, Lucknow 14
Slide 16: Is it an epicenter for all social activities?
Is it an epicenter for all social activities? WORK | PLAY | STAY 15
Slide 17: The Mall of the Future is the Heartbeat of the City
The Mall of the Future is the “Heartbeat of the City” Inspiring Architecture & Design HOMOGENEOUS GASTRONOMIC WORK & PLAY HAVEN WELLNESS ENTERTAINMENT green & LEISURE ZONES spaces 16
Slide 18: First choice of the affluent and aspirational
… and the first choice of the affluent, the aspirational for their discretionary needs! Grade A Offices 5 star luxury hotel: of 1.1 msf ++ The St. Regis, Mumbai Phoenix Palladium Retail of ~1.4 msf Indicative Render 17
Slide 19: Portfolio Growth – FY18 to FY27
Portfolio Growth – FY18 to FY27 ✓ Addition of New Consumption Centres ✓ Densification of Existing Consumption Centres 18
Slide 20: Portfolio Growth: Retail 2.4x, Office >5x, Hotel 1.7x
Portfolio Growth: Retail growing by 2.4x, Office by >5x, Hotel by 1.7x Realistic vision Segments FY18 Q3 FY23 FY27 Focused execution Retail 5.9 msft 8.0 msft >14 msft Selective Opportunities Investing in People Offices 1.3 msft 2.0 msft >7 msft Strategic JV Partnerships Hotels 588 keys 588 keys 988
Slide 21: A palatial retail experience spread over 15 acres
A palatial retail experience spread over 15 acres Indicative Render 20
Slide 22: An iconic destination for the entire state of Uttar Pradesh
An iconic destination for the entire state of Uttar Pradesh… Actual Photo 21
Slide 23: Grand entrances and spectacular musical fountains
…with grand entrances and spectacular musical fountains Actual Photo 22
Slide 24: Case Study: Attractive starting yields on Phoenix Palassio
Case Study: Attractive starting yields on Phoenix Palassio Retail GLA of ~0.9 msft* ~98% leased occupancy* Q3 FY23 Trading Density – ~Rs. 1,578 pspm Q3 FY23 rental rate – ~Rs. 124 pspm Sep-22 Gross Block ~Rs. 829 cr Annualized FY23 Rental ~Rs. 122 cr Estimated Annual Rental Yield 15% (in 2nd full ye
Slide 25: The Retail destination of Madhya Pradesh – Opened 1 December 2022
The Retail destination of Madhya Pradesh – Opened on 1 December 2022! Indicative Render 24
Slide 26: Spectacular art installations and decor
Spectacular art installations and decor Actual Photo Actual Photo Actual Photo Actual Photo Actual Photo 25
Slide 27: 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 28: The Luxury Retail Destination of Gujarat – Opening February 2023
The Luxury Retail Destination of Gujarat – Opening in February 2023! Indicative Render 27
Slide 29: 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 28
Slide 30: An Iconic 1.2 msft Mall at Hebbal, Bangalore
An Iconic 1.2 msft Mall at Hebbal, Bangalore … opening in Q1 FY24 Indicative Render 29
Slide 31: The largest retail led mixed-use development in Bangalore
The largest retail led mixed-use development in Bangalore ▪ 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
Slide 32: …anchored with Grade A office spaces
…anchored with Grade A office spaces Indicative Render Indicative Render 31
Slide 33: The new epicenter for West Pune
The new epicenter for West Pune to open doors in Q1 FY24 Indicative Render 32
Slide 34: 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 boulevard *Data as of Q3FY23 Indicative Render Actual Photo
Slide 35: Integrated with office towers
Integrated with office towers Indicative Render Indicative Render 34
Slide 36: Alipore, Kolkata: East India's retail destination
Alipore, Kolkata: East India’s retail destination – commenced construction Retail GLA: ~1 msf with additional development potential Indicative Render 35
Slide 37: Project Rise – the Jewel in the Phoenix crown
Project Rise – the Jewel in the Phoenix crown – commenced construction Office GLA: ~1.1 msft Retail GLA: ~0.20 msf Indicative Render Indicative Render 36
Slide 38: 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 39: Densification / Future Proofing of Existing Consumption Centres
Densification/ Future Proofing of Existing Consumption Centres • 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 G
Slide 40: 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 41: 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 42: 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 41
Slide 43: Growing with Prudence
Growing with Prudence 42
Slide 44: Strong Liquidity Position as of December 2022
Strong Liquidity Position as of December 2022 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.
Slide 45: Reducing net debt levels while investing in new projects
Reducing net debt levels while investing in new projects Net Debt (Rs. Cr) Capex spent till (Rs. Cr) 4,600 5,657 Up by Down by 151% 55% 2,090 2,250 Mar-20 Dec-22 Mar-20 Dec-22 How did we reduce our net debt, while growing our capex by 2.5x? 44
Slide 46: 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 47: Strategic Partnerships: PML CPPIB Alliance
Strategic Partnerships driving next leg of growth: PML CPPIB Alliance ▪ Retail GLA: ~5.8 msft ▪ Offices GLA: ~4.1 msft Phoenix Marketcity Bangalore Phoenix Citadel, Rise (Office + Retail), + Under-development offices Indore Mumbai ▪ ~400 keys Grand + hotel & Retail expansion Hyatt hotel Mall of the
Slide 48: 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 49: Focus on optimizing Debt levels and cost of debt
Focus on optimizing Debt levels and cost of debt Parameter FY20 FY23* Outcome Net Debt Rs. 4,600 cr Rs. 2,090 cr 55% Net Debt to 70% 4.8x 1.4x EBITDA Interest Coverage 2.4x 4.2x 77% Ratio *Based on annualized 9MFY23 EBITDA, Interest and EBIT. 48
Slide 50: Reducing spread over benchmark rate
Focus on optimizing cost of debt by reducing spread over benchmark rate Effective cost of debt reduced by ~78 bps 9.19% 8.17% 8.41% 7.30% Spread: Spread: 479 bps 216 bps 6.25% 4.40% 4.00% 4.00% Mar-20 Mar-21 Mar-22 Dec-22 Cost of Debt (%) RBI Repo Rate(%) 49
Slide 51: Steady decline in debt on operating portfolio
Steady decline in debt on operating portfolio Debt on Operational Portfolio (Rs. cr) 4,457 4,177 4,019 3,596 Mar-20 Mar-21 Mar-22 Dec-22 554 Debt on Under Construction Portfolio (Rs. cr) 356 Phoenix Palassio 202 under construction 53 Mar-20 Mar-21 Mar-22 Dec-22 Rs. Cr Mar-20 Mar-21 Mar-22 Dec-22 Ope
Slide 52: 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 51
Slide 53: New Age Initiatives to diversify and de-risk existing businesses
New Age Initiatives to diversify and de-risk existing businesses 52
Slide 54: We have successfully established a Pan-India Presence today
We have successfully established a Pan-India Presence today 53
Slide 55: Key intrinsic capabilities within the firm
And we have developed key intrinsic capabilities within the firm… A Rich history Leverage existing Best in-class Prudent Capital Focus on the in Customer retailer execution & Pan – India Management Best Product Excellence relationships Project Presence Management • Strong Liquidity • Focus on the be
Slide 56: Prudent Capital Allocation: expand into new asset classes
Prudent Capital Allocation: utilize resi free cashflows to expand into new asset classes and diversify cashflow, mitigate asset concentration risk Use proceeds from existing resi portfolio to seed new asset classes and expand existing ones Residential Warehousing HIDCO, Alipore Sohna, NCR - Won auct
Slide 57: Thank you
Thank you Website: https://www.thephoenixmills.com/investors 56
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