Corporate Presentation May 2015
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GODREJ PROPERTIES CORPORATE PRESENTATION MAY 2015 DISCLAIMER This presentation does not constitute or form part of any offer or invitation or appropriate for such purpose. Any opinions expressed in this inducement to sell or issue, or any solicitation of any offer to purchase or presentation are subject to change without notice and past subscribe for, any securities of Godrej Properties Limited (the Company), nor performance is not indicative of future results. None of the Company or shall it or any part of it or the fact of its distribution form the basis of, or be relied its promoters shall have any responsibility or liability whatsoever for any on in connection with, any contract or commitment therefore. loss howsoever arising from this presentation or its contents or otherwise arising in connection therewith. This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, This presentation and its contents are confidential and should not be belief or current expectations of the Company or its directors and officers with distributed, published or reproduced, in whole or part, or disclosed by respect to the results of operations and financial condition of the Company. recipients directly or indirectly to any other person. In particular, this Such forward-looking statements are not guarantees of future performance presentation is not for publication or distribution or release in any and involve risks and uncertainties, and actual results may differ from those in country where such distribution may lead to a breach of any law or such forward-looking statements as a result of various factors and regulatory requirement. The information contained herein does not assumptions which the Company believes to be reasonable in light of its constitute or form part of an offer or solicitation of an offer to purchase or operating experience in recent years. The Company does not undertake to subscribe for securities for sale. The distribution of this presentation in revise any forward-looking statement that may be made from time to time by or certain jurisdictions may be restricted by law and persons into whose on behalf of the Company. possession this presentation comes should inform themselves about and observe any such restrictions. None of the Companys securities No representation, warranty, guarantee or undertaking, express or implied, is may be offered or sold in the United States, without registration under or will be made as to, and no reliance should be placed on, the accuracy, the U.S. Securities Act of 1933, as amended, or pursuant to an completeness or fairness of the information, estimates, projections and exemption from registration therefrom. opinions contained in this presentation. Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or 2 I GODREJ PROPERTIES I CORPORATE PRESENTATION 2015 AGENDA Godrej Properties Introduction 01 Real Estate Sector Overview 02 Business Overview 03 Financial Overview 04 Annexure 05 GODREJ GROUP Established in 1897 Value Creation for Investors $4.2 bn in annual revenue1 2 14 Year CAGR 600 million people use a Godrej product every day Godrej ranked as 2nd most trusted Indian brand3 BSE SENSEX 17 $2.8 billion brand valuation by Interbrand4 Amongst Indias most diversified and trusted Godrej Consumer Products 36 conglomerates Real estate identified as one of the key growth Godrej Industries Limited 41 businesses for the Group (%) 1. Group Revenues in FY14 Note: CAGR calculated for closing prices as of 18th June, 2001 and 31st March, 2015 2. Godrej Group internal study 3. The Brand Trust Report 2013 4. Interbrand study done in 2011 Godrej & Boyce Godrej Industries Godrej Properties Godrej Consumer Godrej Agrovet 4 I GODREJ PROPERTIES I CORPORATE PRESENTATION 2015 GODREJ PROPERTIES Established in 1990 Presence in 12 cities across India Real estate worth over US $1.3 bn sold in the past three years Chandigarh 0.7, 1 NCR 8.0, 5 100 million sq.ft. of real estate to develop across India Differentiated asset-light business model Ahmedabad 22.8, 1 Over 100 awards received in the past 3 years Kolkata Nagpur 7.1, 4 Mumbai 2.8,1 19.7, 19 Pune 18.3, 5 Hyderabad 10.0, 2 Legends: Mangalore 0.8, 1 Bangalore Est. Total Developable Area** (million sq.ft.) 11.6, 7 No. of Projects: 49 Chennai (As on 31st March, 2015) 3.7, 2 Kochi 2.3, 1 **Total area under the project, irrespective of revenue/profit/area sharing arrangement BENGALURU 5 I GODREJ PROPERTIES I CORPORATE PRESENTATION 2015 GROWTH PERFORMANCE GPL has delivered strong and consistent growth in the last decade PARTICULARS FY 2015 FY 2004 CAGR Revenue (INR Cr.) 1,927 29 46% EBIDTA (INR Cr.) 341 6 44% Profit Before Tax (INR Cr.) 326 5 46% Net Profit After Tax (INR Cr.) 191 2.5 48% Booking Value (INR Cr.) 2,681 183 28% Total development portfolio of GPL (Mn sq.ft.) 108 2 44% (excluding completed projects) 6 I GODREJ PROPERTIES I CORPORATE PRESENTATION 2015 STOCK PERFORMANCE GPL stock has substantially outperformed the BSE Realty Index since its IPO in 2010 200 180 160 140 120 GPL BSE Realty 100 Sensex 80 60 40 20 0 Jan-10 Aug-10 Apr-11 Dec-11 Aug-12 Apr-13 Dec-13 Aug-14 Mar-15 Returns since listing : Godrej Properties : +9% BSE Sensex: +59% BSE Realty: -57% Indexed Price movement from FY 15 Returns : Godrej Properties : +18% BSE Sensex: +25% BSE Realty: +13% January 2010 to March 31, 2015 Source : BSE 7 I GODREJ PROPERTIES I CORPORATE PRESENTATION 2015 CORPORATE GOVERNANCE The Board is strongly committed to best practices of corporate governance with a focus on investors interests and shareholder value The Independent Directors on the GPL Board are: Keki B. Dadiseth Lalita D. Gupte Pritam Singh Served as Chairman of Hindustan Unilever Served as the Director at IIM Lucknow. Serves Limited and as Director and Member of the Chairperson of ICICI Venture Funds as Director of Hero MotoCorp Ltd., Parsvnath Executive Committee at Unilever PLC and Management Company Limited Developers Ltd and also member on the local Unilever NV Board position: Bharat Forge Limited, Sesa board of Reserve Bank of India Sterlite Limited and Kirloskar Brothers Fellow of the Institute of Chartered Limited Conferred 'Padma-Shri', one of India`s highest Accountants of England & Wales civilian honors in 2003 Holds Board positions at The Indian Hotels Pranay Vakil Co. Limited, Britannia Industries Limited, Amitava Mukherjee Piramal Enterprises Limited and Siemens Director of Praron Consultancy India Pvt. Ltd Limited. Holds Advisory positions at Associated with FICCI Real Estate Committee 20 years of Investment Banking experience A c c e n t u re S e r v i c e s P v t . L i m i t e d , Served as Managing Director and Board Pricewaterhouse Cooper Pvt. Limited, Indian Served as Chairman of Knight Frank India member both at Lazard India and Ambit School of Business and World Gold Council Corporate Finance S. Narayan Amit B. Choudhury Served as Economic Advisor to the Prime Serves on the Board of Godrej Industries Minister of India Limited, Vora Soaps Limited, Wadala Serves on the Board of Directors at Apollo Commodities Limited and Godrej Agrovet Tyres Limited and Dabur India Limited Limited 8 I GODREJ PROPERTIES I CORPORATE PRESENTATION 2015 AGENDA Godrej Properties Introduction 01 Real Estate Sector Overview 02 Business Overview 03 Financial Overview 04 Annexure 05 9 I GODREJ PROPERTIES I CORPORATE PRESENTATION STRONG MACRO ECONOMIC FACTORS Values in Millions Strong Growth in Urbanization Increase in Working Population by 2030 157 60.0% 1,800 1,566 1,620 1,476 1,600 50.0% 1,353 1,400 1,206 50.3% 40.0% 1,200 1,042 44.8% 31 869 39.5% 1,000 30.0% 6 555 699 34.8% 30.9% 800 376 450 20.0% 25.5% 27.7% 600 23.1% 19.8% 400 (26) 10.0% 17.0% 17.9% 200 0.0% - (99) 1950 1960 1970 1980 1990 2000 2010 2020E 2030E 2040E 2050E India Indonesia Brazil China USA Population (MN) Urbanization (%) Source: World Bank Report, UN Population Source: World Bank Report, UN Population Values in Millions 13 Cities to have population of >4 mn by 2030 Significant Headroom for Increase in Mortgage Vadodara 4.2 Kanpur 4.2 93% 86% Nagpur 5.2 73% Jaipur 5.4 Surat 7.4 Ahmedabad 8.4 39% Hyderabad 9.8 33% 24% Pune 10 Bengaluru 10.1 7% 10% 2% 3% Chennai 11 A Kolkata 22.9 K S U U India Brazil Africa Delhi (NCT) 25.9 Japan Russia Mexico Mumbai (MMR) 33 Australia Hong Kong South Source: India Urbanization Econometric Model; MckInsey Global Institute Analysis Source: World Bank Report (2014) 10 I GODREJ PROPERTIES I CORPORATE PRESENTATION 2015 SHORT TERM TRENDS GDP Growth Easing Interest Rate Regime 8.2% 10.0% 3,500 8.0% 9.8% 3,182 9.8% 2,908 2,673 3,000 7.8% 9.6% 2,447 9.4% 2,248 2,500 9.4% 2,048 9.2% 7.6% 9.2% 2,000 8.9% 9.0% 8.8% 1,500 7.4% 8.8% 9.1% 1,000 Decline of 50 bps in repo rate 8.6% 7.2% over the last 6 months 8.4% 500 7.0% 8.2% - 2014 2015E 2016E 2017E 2018E 2019E 6.8% -13 -14 -15 -14 -15 Jul-13 Jul-14 Apr Apr Apr Oct-13 Jan-14 Oct-14 Jan-15 Jun-13 Jun-14 Feb-14 Feb-15 Mar Mar Aug-13 Sep-13 Nov-13 Dec-13 Aug-14 Sep-14 Nov-14 Dec-14 May-13 May-14 May-15 GDP (Current Prices, USD Bn) GDP Growth (%) Source: IMF Estimates Source: RBI, Ministry of Statistics, Govt.