t_.THE PHOENIX �'9" MILLS LIMITED Corp. Office : Shree Laxmi Woolen Mills Estate, 2nd Floor, R.R. Hosiery, OffDr. E. Moses Rd. Mahalaxmi, Mumbai - 400 011 Tel : (022) 3001 6600 Fax : (022) 3001 6601 CIN No.: L 17100MH1905PLC000200 November 06, 2018 The Corporate Relationship Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai- 400 001 The Listing Department, The National Stock Exchange of India Ltd Bandra-Kurla Complex, Mumbai. Ref: The Phoenix MilJs Limited (503100/ PHOENIXLTD) Sub: Investor Presentation on the Financial Results for the second quarter and half-year ended September 30, 2018 Dear Sir, This is further to our letter dated November 51 2018 w.r.t. filing of the Investor Presentation on the financial results for the second quarter and half-year ended September 30, 2018. Kindly note that, we are enclosing herewith the updated Investor Presentation. We humbly request you to kindly take the same on record and replace the same on your website. We regret the inconvenience caused. Regards, For The Phoenix Mills Limited ��tt1s u· nvas a a Joint Managing Director Regd. Office: The Phoenix Mills Ltd., 462 Senapati Bapat Marg, Lower Parel, Mumbai 400 013. .•Tel: (022) 2496 4307 / 8 / 9 •Fax: (022) 2493 8388 E-mail : [email protected] • www.thephoen1xm1lls.com Investor Presentation Q2 FY2019 Results Phoenix MarketCity Bangalore Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Important developments that could affect the Company’s operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations. The Phoenix Mills Ltd. (PML) will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. 2 Q2 & H1FY19 Highlights Overview and Strategy Financial Results Business Performance Annexure 3 Q2 & H1FY19 Highlights Operational Consumption* 14% Retail consumption increased by 14% yoy to Rs. 16.7 bn in Q2FY19 while retail rental Rs. 16.7 bn Income is up 17% yoy in Q2FY19 at Rs. 2.4 bn Retail EBITDA came in strong at Rs. 2.2 bn, up 16% yoy for Q2FY19 High Street Phoenix, PMC Mumbai & PMC Pune were the top performing retail assets * demonstrating strong consumption and rental Income growth Retail Rental 17% H1FY19 Retail Rental income is Rs. 4.8 bn, up 16% yoy, while EBITDA was up 15% to Rs. 2.4 bn Rs. 4.5 bn In H1 FY19, spent approximately Rs. 6,500 mn to acquire an under-construction retail asset in Lucknow and a 5.12-acre land parcel in Thaltej, Ahmedabad EBITDA^ 11% Financial Rs. 1,982 mn Q2 FY19 Consolidated Income from operations is up 9% YoY to Rs. 4,047 mn Q2 FY19 Consolidated Profit after tax & before OCI is up 49% YoY to Rs.620 mn H1FY19 income from operations is up 7% to Rs. 8,179 mn while PAT is up 45% to Rs. PAT ^ 1,218 mn 49% Strong operational performance from retail, hospitality & commercial resulted in Rs. 620 mn strong PAT growth in H1 FY19 ^ Consumption and retail rental figures represent the overall performance for the operational retail portfolio of 5.90 msft 4 Management Commentary Mr. Shishir Shrivastava, Joint Managing Director, Mr. Pradumna Kanodia, Director - Finance, The Phoenix Mills Limited The Phoenix Mills Limited “Phoenix Mills, India’s largest Retail mall developer and “At Phoenix Mills, we are focused on delivering superior operator, has delivered a strong Q2 and H1 FY2019 financial performance, maintaining a strong balance sheet, performance, with our portfolio of Retail malls continuing and efficiently allocating capital, to create long-term to deliver robust performance. Consumption was up 14% in shareholder value. Q2FY19 to Rs. 16.7 bn and Retail Rental Income was up 17% at Rs. 2,427 million. We had strong EBITDA and PAT performance for Q2 and H1, led by our Retail, Commercial & Hospitality businesses. Our Commercial, Hospitality and Residential businesses Cash flows from operations remained strong, and our also had strong performance, contributing to total EBITDA blended cost of borrowing remains at 9.15%. of Rs. 3,935 million in H1, up 11% yoy, and Rs. 1,982 million in Q2FY19, up 11% yoy” I am pleased to share with you that during Q2, credit rating on the debt of Classic Mall Developers (Phoenix MarketCity Our Retail portfolio expansion comprising 5 new malls is Chennai) was upgraded to a “AAA rating” which is progressing well, and we are on track to increase our testament to our strong financial position and prudent operational retail portfolio to 11-12 msft by FY23. gearing. 5 Q2 FY19 Highlights Overview and Strategy Financial Results Business Performance Annexure Portfolio Overview Retail Portfolio Office Portfolio Hospitality Portfolio Residential Portfolio Portfolio Size: 6mn sq ft Portfolio Size: 1.16 mn sq ft Portfolio Size: 588 keys Portfolio Size: 3.72 mn sq ft Own, develop and manage Own and develop commercial Own and develop marquee Develop and sell residential destination retail assets assets to complement retail hospitality asset assets in tier-1 cities High Street Phoenix, Mumbai Phoenix MarketCity, Pune Art Guild House, Mumbai Need Image St. Regis, Mumbai One Bangalore West & Kessaku Phoenix House, Mumbai Phoenix MarketCity, Bangalore Phoenix United, Lucknow Need Image Centrium, Mumbai Phoenix MarketCity, Chennai Phoenix United, Bareilly Courtyard by Marriott, Agra The Crest, Chennai Need Image Phoenix MarketCity, Mumbai Palladium, Chennai Paragon Plaza, Mumbai Diversified annuity revenue streams ensuring robust long term cashflow visibility 7 Our Annuity Income-Generating Portfolio OPERATIONAL PORTFOLIO PORTFOLIO UNDER DEVELOPMENT MALL PORTFOLIO MALL PORTFOLIO (4.60 MSF) (5.90 MSF) HSP & Palladium Mumbai 0.74 Phoenix MarketCity Pune 1.0 Phoenix MarketCity Chennai 1.00 Wakad Phoenix MarketCity Palladium Chennai 0.22 Bengaluru 1.0 Hebbal Phoenix MarketCity Pune 1.19 Phoenix MarketCity Bangalore 1.00 Phoenix MarketCity Indore 1.1 Phoenix MarketCity Mumbai 1.11 Phoenix MarketCity Lucknow 0.9 Phoenix United Lucknow 0.33 Phoenix United Bareilly 0.31 Palladium Ahmedabad 0.6 OFFICE PORTFOLIO HOTEL PORTFOLIO OFFICE PORTFOLIO ( 1.12 MSF) (1.60 MSF) (588 KEYS) Phoenix MarketCity, Phoenix Paragon Plaza Mumbai 0.42 Pune 0.70 The St. Regis Mumbai 395 Pune (Viman Nagar) The Centrium Mumbai 0.28 Phoenix MarketCity Chennai 0.42 Art Guild House Mumbai 0.76 Courtyard by Marriot Agra 193 Phoenix House Mumbai 0.14 8 Our Residential Development Portfolio Kessaku One Bangalore West RESIDENTIAL PORTFOLIO Total Area launched Balance Project Area (msf) area (msf) (msf) UNDER CONSTRUCTION One Bangalore West 0.97 0.2 0.72 - Towers 6-9 Kessaku, Bengaluru 0.99 0.57 0.42 Total 1.96 0.82 1.14 COMPLETED One Bangalore West 1.23 1.23 0 - Towers 1-5 Crest A,B,C 0.53 0.53 0 Total 1.76 1.76 0.00 Grand Total 3.72 2.58 1.14 9 Presence Across Key Gateway Cities in India 10 The PML Advantage Annuity-led • 90% of revenues from annuity-led businesses: Retail, Commercial and Hotel Business Model • 10% of revenues from Residential development Synergies from • Retail-led mixed use developments, in tune with modern consumer lifestyles (work-life-play) Mixed-use • Synergies of a sticky consumer base within the catchment area of our malls Development Active Mall • Attract right brand mix and locate them in right zones • Partner with retailers to optimal consumption, rentals and growth Management • Constantly upgrading the mall by changing the lights, flooring, décor, creating special zones. ‘Go-to’ • Large format retail-led developments with focus on creating ‘go-to’ destinations for entertainment, Destination shopping and dining Malls • Complete experience enables more time spent in the mall, driving higher consumption Execution • Experienced management team with track record of successful execution Capabilities • Financial flexibility to execute marquee deals securing future growth 11 Under-construction asset update We have closed 5 acquisitions – land parcels in Pune, Bangalore and Ahmedabad, under-construction retail assets in Lucknow and Indore in the last 18 months These acquisitions take our under-development retail leasable portfolio to c.4.6 million sft We have further mixed-use development potential on most of these assets Partnership / Development Land Acquisition Project Land Size Comments owned Potential Cost 1.6 msf PML's second MarketCity mall in Pune. Pune 15 Acres Rs. 1.94 bn (1 msf retail) Expect operations to commence during FY23 ISML – alliance 1.8msf PML's second MarketCity mall in Bengaluru. Bengaluru with CPPIB 13 Acres Rs. 6.99 bn (1 msf retail) Expect operations to commence during FY23 (PML stake: 51%) Acquired under-construction retail development. Indore 19 Acres 1.1 msf retail Rs. 2.58 bn Expect operations to commence during FY21 Acquired under-construction retail development. Lucknow 100% owned 13.5 Acres 0.9 msf retail Rs. 4.70 bn Expect operations to commence during H2 FY20 PML’s third Palladium mall, after Mumbai & Chennai. 50:50 alliance Ahmedabad 5.2 Acres 0.6 msf retail Rs. 3.40 bn 50:50 alliance with Ahmedabad-based BSafal group. with BSafal group Expect operations to commence during FY22 4.6 msf of strong cash-generating retail space to become operational between FY21 to FY23 12 Under-construction asset update Project Partnership / owned Remarks Construction expected to commence in Q4FY19. Wakad Pune Update on Approvals: Environment clearance (EC) is currently in final stage; Consent To Establish (subject to EC approval) has already been obtained.