Nitesh Estates Ltd. Investor Presentation Quarter Ended December - - PowerPoint PPT Presentation

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Residential Commercial Hotel Shopping Mall Investor Presentation

Quarter Ended December 31, 2012

Nitesh Estates Ltd.

Q3 FY2013 Consolidated performance highlights

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Q3 FY2013 Summary

Quarterly Performance

Financial Highlights:  Revenue of Rs. 158.6 mn  Gross Profit of Rs. 36.9 mn and margin of 23.3%  Net Debt of Rs. 735.2 mn and a Debt to Equity ratio of 0.25x as of December 31, 2012 Operational Highlights:  10.08 mn sq. ft. of area currently under development  0.08 mn sq. ft. area sold for Rs. 623.5 mn  Collection of Rs. 606.1 mn compared with Rs. 311.3 mn in Q3 FY2012  Average price realization of Rs. 7,965 per sq. ft. compared with Rs. 4,377 per sq. ft. in Q3 FY2012  Cumulative sales value of Rs. 6,829.0 mn achieved through the sale of 1.63 mn sq. ft. area Commenting on the results and performance, Mr. Ashwini Kumar, Executive Director and Chief Operating Officer of Nitesh Estates said: “We are delighted that our Sales Value for this quarter has stayed resilient at Rs.623 million and similarly cash collections have followed at Rs. 606 million. This is a strong reflection of the quality of our residential portfolio and a brand associated with premium developments. However, revenue recognition continues to lag our marketing achievements with Rs 4,908 million still unrecognized for accounting purposes at the end of the quarter. Our Camp David project has now been completed and delivered, we look forward to the launch of three new projects in Q4. We continue to see high levels of customer interest across the portfolio and feel the sales pipeline is maintaining momentum. This should be supported by an environment where interest rates are expected to decline and consumer confidence to remain robust.”

Investor Presentation: Q3 FY2013

Expected sales of Rs. 26,599 mn from residential projects plus recurring annual income from Ritz Carlton and Nitesh Mall

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Q3 FY2013 Summary

Quarterly Performance

 Ongoing 15 projects: 13 residential, 1 hotel and 1 mall  13 residential projects having total sales potential of Rs. 26,599 mn

• 8 residential projects have crossed the threshold limit for income recognition
• Nitesh Cape Cod is also expected to cross the threshold limit for income recognition during FY2014
• Nitesh Napa Valley, Nitesh Park Avenue, Nitesh Hunter Valley and Nitesh Palo Alto are under pre-construction stages

 Unrecognized income of Rs. 4,908 mn till December 31, 2012

• 1 project completed and delivered
• 7 income generating projects are expected to be completed by FY2014

 39% of sales booked still to be collected in cash: Rs. 2,653 mn  Further income potential of Rs. 19,770 mn from sale of ongoing residential projects by FY2017  The Ritz Carlton Hotel is also expected to become operational in Q1 FY2014  Nitesh Mall is expected to become operational in FY2016

• Expected rental income of Rs. 500 – 600 mn per annum

Investor Presentation: Q3 FY2013

Unrecognized income of Rs. 4,908 mn till December 31, 2012: Increasing recognition will significantly enhance profitability

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Q3 FY2013 Financials

Quarterly Performance

Notes: 1. Revenue includes Net Sales plus other income 2. Net Income has been impacted by a Rs. 668 million due to loss on premium on redemption of debentures 3. Total debt excludes Convertible Debentures

Investor Presentation: Q3 FY2013 Q2 (Rs. mn) FY2013 FY2012 FY2013 FY2013 FY2012 Revenue1 158.6 345.0 301.9 786.3 765.1 Gross Profit 36.9 131.9 67.4 197.1 232.5 Margin (%) 23.3% 38.2% 22.3% 25.1% 30.4% EBITDA (92.0) 29.5 (45.2) (181.1) (34.2) Profit After Tax (PAT)2 (770.8) 19.4 (124.1) (931.6) (31.4) Net Profit2 (741.0) 12.9 (125.6) (907.3) (40.7) Basic EPS (Rs.) (5.08) 0.09 (0.86) (6.22) (0.28) Q3 Nine Months Q3 Q2 Q4 Q2 (Rs. mn) FY2013 FY2013 FY2012 FY2012 Total debt3 940.5 908.1 626.8 1,115.2 Cash and Cash Equivalents 205.3 339.7 202.0 170.9 Net Debt 735.2 568.4 424.8 944.3 Equity 3,722.5 4,463.3 4,629.7 4,572.9 Debt / Equity 0.25x 0.20x 0.14x 0.24x Convertible Debentures 944.8 970.0 620.0 620.0

499 427 434 618 623 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 311 669 527 762 606 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013

39% of sales booked still to be collected in cash: Rs. 2,653 mn

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Q3 FY2013 Financials

Quarterly Performance

Sales Value (Rs. mn) Collections (Rs. mn) Area Sold (mn sq. ft.) Average Price Realization (Rs. per sq. ft.)

0.11 0.09 0.08 0.11 0.08 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 4,377 5,024 5,529 5,797 7,965 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013

Investor Presentation: Q3 FY2013

Structure Complete The Ritz Carlton Hotel Nitesh Camp David Nitesh Central Park Pre-construction Nitesh Mall Nitesh Napa Valley Nitesh Park Avenue Nitesh Hunter Valley Construction in Progress Nitesh Logos Nitesh Fisher Island Nitesh Caesar's Palace Nitesh Flushing Meadows Nitesh Hyde Park Nitesh Columbus Square Nitesh Cape Cod

Total of 15 projects under various stages of construction

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Note: Projects are sorted on the basis of completion date within each of the above 3 categories; signifies non-residential projects

Q3 FY2013 Operational Update

Quarterly Performance

Nitesh Palo Alto Investor Presentation: Q3 FY2013

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Q3 FY2013 Operational Update

Quarterly Performance

Remaining Income Potential of Rs. 19,770 mn from sale of ongoing residential projects by FY2017 Residential projects summary Total Developable Area (mn sq. ft.) 10.08 Total Saleable Area (mn sq. ft.) 6.58 Total Saleable Area (mn sq. ft.) – Company’s share 4.58 Area Sold till December 31, 2012 (mn sq. ft.) 1.63

• A. Total Sales Value Potential (Rs. mn)

26,599

• A1. Sales booked till December 31, 2012 (Rs. mn)

6,829

• A2. Collections till December 31, 2012 (Rs. mn)

4,176

• A3. Income Recognized till December 31, 2012 (Rs. mn)

1,921

• B. Total Expected Project Cost (Rs. mn)

19,789

• B1. Cost Recognized till December 31, 2012 (Rs. mn)

1,495

• C. Income Unrecognized till December 31, 2012 (Rs. mn)

4,908

• D. Remaining Income Potential from sale of ongoing projects by FY2017 (Rs. mn)

19,770

Investor Presentation: Q3 FY2013

Projects Area Sold (mn

• sq. ft.)

Units Sold Sales Value (Rs. mn)

• Avg. Realization

(Rs. per sq. ft.) % Units Sold Units Sold Sales Value (Rs. mn) Nitesh Central Park

• 100%

77 479.7 Nitesh Flushing Meadows 0.009 6 39.2 4,479 77% 154 630.1 Nitesh Camp David

• 75%

3 60.0 Nitesh Hyde Park 0.009 10 49.2 5,231 71% 380 1,350.7 Nitesh Caesar's Palace 0.004 3 17.7 4,911 59% 214 1,006.7 Nitesh Cape Cod 0.016 10 90.2 5,624 52% 150 1,192.4 Nitesh Columbus Square 0.003 2 13.8 5,003 49% 121 736.3 Nitesh Fisher Island

• 29%

6 468.2 Nitesh Logos

• 25%

2 156.0 Nitesh Napa Valley 0.038 11 413.4 10,960 12% 19 749.0 Total 0.078 42 623.5 7,965 1,126 6,829.0 Q3 FY2012 0.114 78 499.0 4,377 Q2 FY2013 0.107 74 618.0 5,797 Q3 FY2013 Cumulative

• Rs. 6,829 mn of sales value achieved through the sale of 1.63 mn sq. ft. area

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Q3 FY2013 Operational Update

Quarterly Performance

Investor Presentation: Q3 FY2013

An Integrated Property Developer With Strong Brand Recall and Presence Across All Assets Class

Efficient Business Model

 Project development through JDAs/JVs/Leases  Access to premium city centric properties at low upfront capital outlay  Efficient capital utilization - funds utilized only for project execution as compared to acquiring land  Higher internal rate of return

Established Track Record

 Brought ~ 22 mn sq. ft. of area under development in 8 years since inception  Completed 9 premium residential and office projects totalling 1.42 mn sq. ft.  Strong brand recall for timely execution of prestigious projects  In-house fully integrated property development team

Balanced Project Pipeline

 Total 15 projects with 10.08 mn sq. ft. of area currently under development  ~ 8.3 mn sq. ft. of area planned for future developments  Projects across all assets class with predominant focus on residential segment  Well located projects in cities of Bangalore, Chennai, Goa and Kochi

Strong Leadership & Partnerships

 Eminent board and strong management team with significant experience across industries  Investments from leading institutional investors like Apollo and HDFC AMC at project level  Partnership with leading firms like KPF, WATG, Callison and L&T for design and construction services  Developing India's first Ritz Carlton Hotel in Bangalore

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Nitesh Estates: At a Glance

Company Overview

Investor Presentation: Q3 FY2013

Bangalore Land 186.7 acres 14 ongoing projects with developable area of 9.88 mn sq. ft. Plans for future development of ~5.3 mn sq.

• ft. area for residential and commercial

segments Chennai Land 8.3 acres Plans for future development of 1mn sq. ft. area for commercial and hospitality segments Goa Land 9.3 acres Ongoing luxury villa project with developable area of 0.20 mn sq. ft. Kochi Land 11.6 acres Plans for future development of over 2 mn

• sq. ft. area for residential, commercial and

hospitality segments

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Total Land 215.9 acres ~ 20 mn sq. ft. area available for ongoing and upcoming projects

One of India's Most Recognized Luxury Real Estate Brands With Focus in South India

Land Portfolio

Company Overview

Investor Presentation: Q3 FY2013

Completed Projects

• 5 premium residential projects developed over 0.72 mn sq. ft.
• 0.49 mn sq. ft. corporate housing project for ITC
• 3 commercial properties in Bangalore covering 0.24 mn sq. ft.

Ongoing Projects

• 13 residential projects at various stages of construction, with a developable area of 8.47

mn sq. ft.

• The Ritz Carlton Hotel with a a developable area of 0.50 mn sq. ft.
• Nitesh Mall with a developable area of 1.11mn sq. ft.

Upcoming Projects

• Over 122 acres of land available for future projects (~8.3 mn sq. ft. of developable area)
• Projects to be spread across various assets class and different geographies

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Proven Track Record

Projects Overview

Investor Presentation: Q3 FY2013

10.08 0.31 3.32 1.20 1.84 3.41 FY2013 FY2014 FY2015 FY2016 FY2017 FY2013-17 Residential 84% Retail 11% Hospitality 5% High -income 12% Mid -income 88% 11,054 3,611 4,176 High-income Mid-income Average

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13 residential projects in both high and mid income segments Average price realization (Rs. per sq. ft.)1 Current project mix Total of 15 projects with 10.08 mn sq. ft. area currently under development Construction schedule (mn sq. ft.)

Notes: 1. Average price realization based on sales till December 31,2012

Ongoing Projects

Projects Overview

Investor Presentation: Q3 FY2013

1 Nitesh Camp David JDA Frazer Town Mid -income Completed 0.29 0.03 8 50% 2 Nitesh Central Park JDA Bellary Road Mid -income Feb-13 1.20 0.28 106 73% 3 Nitesh Flushing Meadows AOP Whitefield Mid -income Dec-13 2.00 0.38 200 67% 4 Nitesh Columbus Square JDA Bellary Road Mid -income Dec-13 4.36 0.73 364 66% 5 Nitesh Logos JDA Aga Abbas Ali Road High -income Dec-13 0.64 0.09 16 45% 6 Nitesh Hyde Park JDA Bannerghatta Road Mid -income Mar-14 5.43 0.68 537 61% 7 Nitesh Caesar's Palace JDA Kanakapura Mid -income Mar-14 5.00 0.94 514 69% 8 Nitesh Fisher Island JDA Goa High -income Jun-14 9.32 0.20 36 60% 9 Nitesh Cape Cod JDA Outer Ring Road Mid -income Dec-14 4.36 1.00 417 76% 10 Nitesh Napa Valley JDA Jakkur High -income Sep-15 20.13 0.59 133 63% 11 Nitesh Park Avenue JDA Sankey Road High -income Dec-15 0.62 0.14 24 50% 12 Nitesh Hunter Valley JDA Hennur Mid -income Dec-16 21.53 2.20 1091 68% 13 Nitesh Palo Alto JDA Outer Ring Road Mid -income Mar-17 11.12 1.21 256 62% 86.00 8.47 3,702 14 The Ritz Carlton Hotel JV Residency Road Hospitality May-13 2.58 0.50 281 26% 15 Nitesh Mall JDA Indiranagar Retail Jun-15 5.06 1.11

• 50%

93.64 10.08

Company’s Share (%) Total Units Completion Date

Sub - Total (Residential) Total

Land Area (acres) Developable Area (mn. sq. ft.) No. Project Land Agreement Location1 Segment

13 Residential Projects Have Revenue Potential of Rs. 26,599 mn

Notes: 1. All projects in Bangalore except Nitesh Fisher Island

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Ongoing Projects

Projects Overview

Investor Presentation: Q3 FY2013

1 Whitefield MOU Whitefield, Bangalore Mid -Income Residential 23.00 2.38 69% 2 Thannisandra LOI Thannisandra, Bangalore Mid -Income Residential 10.21 1.06 67% 3 Anjanapura LOI Anjanapura, Bangalore Mid -Income Residential 4.70 0.61 68% 4 Nitesh Malibu MOU Hennur, Bangalore Mid -Income Residential 14.00 0.58 62% 5 Nitesh Key Biscayne JDA Devanahalli, Bangalore High -Income Residential 12.00 0.51 74% 6 Richmond Road MOU CBD, Bangalore High -Income Residential 0.55 0.09 76% 7 Nitesh Courtyard JV Cunnigham Road, Bangalore High -Income Residential 0.48 0.04 55% 64.94 5.27 8 Nitesh Wimbeldon Garden JV Kakkanad, Kochi Commercial / Residential 8.00 1.64 38% 9 Chennai MOU Chennai Commercial / Hospitality 8.26 1.00 26% 10 Bolghatty Island MOU Kochi Hospitality 3.56 0.39 26% 84.76 8.30

Developable Area (mn. sq. ft.) Company’s Share (%)

Sub - Total (Residential)

Segment Land Area (acres)

Total

Sl. No. Project Land Agreement Location

8.3 mn sq. ft. of Area Planned for Future Developments

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Upcoming Projects

Projects Overview

Investor Presentation: Q3 FY2013

Contact Details:

Nitesh Estates Limited Nitesh Timesquare, Level 7 #8 MG Road, Bangalore - 560001 Venkateshan MA Nitesh Estates +91 80 4017 4000 venkateshan.ma@niteshestates.com Saket Somani Churchgate Partners +91 22 3953 7444 saket@churchgatepartnersindia.com

Disclaimer: This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Nitesh Estates Limited’s (‘Nitesh Estates’ or the ‘Company’) future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro- economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. Nitesh Estates undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.