Safe Harbor This p presentation contains certain forward - - PowerPoint PPT Presentation

Safe Harbor

This presentation contains certain forward looking statements p g concerning Parsvnath Developers, Ltd’s business prospects and business profitability, which are subject to a number of risks and uncertainties. Actual results may differ materially from those projected in such forward looking statements The risks and projected in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, fluctuations in our earnings, our ability to manage growth, our competition, economic growth in India, our ability to attract and retain highly skilled professionals, time and cost over-runs on contracts, government policies and actions with respect to investments, fiscal deficits, regulations, interest, and other fiscal issues generally prevailing in the economy The company does not issues generally prevailing in the economy. The company does not undertake to make any announcement in the event any of these forward looking statements become materially incorrect in the future,

• r to update any forward looking statements made from time to time
• n behalf of the company.

2

Executive Summary

• PDL is a leading Indian real estate developer
• Strong track record of execution across India
• Explosive growth potential focused on executing in a responsible

p g p g p manner

• Land bank gives company long runway for future growth
• India and its explosive real estate outlook

p

• India currently sitting on $315BN in forex RESERVES with an

increasingly young and productive population

• Estimated shortage of 20MM+ homes currently across India with

d hi t d lik l t d i t h t i demographic trends likely to drive more acute shortages going forward – inflection point of age demographics similar to the US in the 1960s

• Govt of India targeting more than $1TN of investment in

g g $ infrastructure over the 12th 5-year plan (2012-2017) – double the amount in the prior 5-year plan

• RBI signaling on verge of tempering interest rate hikes
• Outlook
• Corporate

strategy and market conditions conducive to improving cash flow and balance sheet and balanced growth S lid t ti t ith i d ti d

• Solid top tier management with experience and expertise and a

deep second and third line of management

3

India Real Estate India Real Estate Industry Dynamics

4

Industry Dynamics

Increased Urbanization and higher income levels Increased Urbanization… and higher income levels…

Indian Urban Population Indian Urban Population India Per Capita Income India Per Capita Income p

35.0% 40.0% 45.0% 500 600

p

30000 35000 10 0% 15.0% 20.0% 25.0% 30.0% 200 300 400 Millions 15000 20000 25000 INR 0.0% 5.0% 10.0% 100 1995 2000 2005 2010 2015 2020 2025 Urban Population Percent of Total 5000 10000 FY04 FY05 FY06 FY07 FY08 FY09

The current trend will continue to drive The current trend will continue to drive demand in urban demand in urban areas areas

Source: UN

India is seeing a large migration to the India is seeing a large migration to the middle middle class class

Source: CSO

5

Industry Dynamics

• Over the next 20 years, 68 cities in India are likely

to have a population over 1MM people (vs. 42 today) – only 35 cities in Europe and 9 in the US today) – only 35 cities in Europe and 9 in the US have populations over 1MM people

• C

tl l 31% f I di ’ l ti i l t d

• Currently only 31% of India’s population is located

in urban areas

• 60% of India’s population is below 30 years old - the

UN estimates that the 25-34yr age group in India will grow 9% between 2010 and 2015 or by 17MM will grow 9% between 2010 and 2015 or by 17MM - placing India at an inflection point of housing growth similar to the US in the 1960s

• Average real household income (adjusted for

inflation) is projected to grow over 5%/yr through

6

) p j g y g 2025 with the household savings rate throughout the country averaging 21-24%

Industry Dynamics

• Accordingly, housing demand has pushed ahead of

supply – a dynamic that will likely remain in place for the foreseeable future India Urban Housing Shortage India Urban Housing Shortage

15 20 25 s 5 10 15 Millions

The 2008 The 2008‐2009 pause did not impact the 2009 pause did not impact the

2001 2005 2008 2010 2014

Source: CRISIL

The 2008 The 2008‐2009 pause did not impact the 2009 pause did not impact the supply/demand imbalance supply/demand imbalance trend trend

7

Industry Dynamics

• Estimated shortage of 24 MM+ homes currently across India

with demographic trends likely to drive more acute shortages going forward

• Average real household income (adjusted for inflation) is

projected to grow

• ver

5%/yr through 2025 with the p j g y g household savings rate throughout the country averaging 21- 24%

• Country-wide, leverage in residential real estate market

remains very low with mortgages throughout India averaging only 9% of GDP (vs. the US at 80%+) – worst averaging only 9% of GDP (vs. the US at 80%+) worst case, this lack of leverage should provide a degree of downside price protection in home values – if the global capital markets were to normalize the growth in the capital markets were to normalize, the growth in the Indian mortgage market could add even more upside to housing demand

8

• RBI signaling on verge of tempering interest rate hikes.

Industry Dynamics

• Even in the depths of the global credit freeze of ‘08-

’09 India’s construction growth was 6%yoy a level 09, India s construction growth was 6%yoy, a level that has since begun to reaccelerate

India Construction Spending Growth, Y India Construction Spending Growth, Y‐Y

14.0% 8.0% 10.0% 12.0% 2.0% 4.0% 6.0%

Source: Economic Advisory Council to the Prime Minister, July 2010

0.0% FY06 FY07 FY08 FY09 FY10 FY11e FY12e

We believe the bottom is behind We believe the bottom is behind us us

9

Industry Dynamics

• Pricing trends have also begun to reaccelerate in

every segment of the industry

Historical Average Price vs. 2011 Historical Average Price vs. 2011

250 150 200 $ per ft2 50 100 US

Pricing is on the rebound in all Pricing is on the rebound in all segments segments

Residential Commercial Plots

FY2011 Average FY2011 Average Average Through FY2010

Pricing is on the rebound in all Pricing is on the rebound in all segments segments

10

About About…… Parsvnath Developers Ltd.

11

What is Parsvnath?

• We are a real estate developer with over two

decades of execution excellence

• Completed 45 projects with total area of 15.8M ft2
• 50 projects with a total area of 77M ft2 are in

development or construction

• Of the 77m ft2 in development, 36.5M ft2 has been

sold as of Sept 30, 2011, 23.2M ft2 of which were empty plots, providing near term cash flow

• We have a strong management team
• Top management recognized as thought leaders in

the real estate development space

• We have a deep bench, with strong 2nd and 3rd

level managers strong project execution capability level managers - strong project execution capability with experienced in-house construction and procurement teams

• We have a diversified, pan-India presence
• Our Land Bank of 199M ft2 spans over 44 cities

and 15 states

• Key Business Segments:
• Residential, across the spectrum
• Commercial, both Office and Retail
• DMRC Projects (Delhi Metro Rail Corp)
• Hotels
• Special Economic Zones (SEZs)
• IT Parks

W h t j t fi t

• We have strong project finance partners
• Lowers financial risk
• Improves execution

12

PDL Strategy and PDL Strategy and Project Execution E l Examples

13

Our Strategy

• Residential – Focus remains on developing high margin

residential and township projects (54% of completed projects and 93% of projects under execution on a saleable area basis) – integrated township plot sales help boost near term cash flow

• Lease Rental – Build out a portfolio of high value commercial

Lease Rental Build out a portfolio of high value commercial and hospitality properties that yield recurring revenue, improving company resilience to periods of tighter liquidity

• P

t hi C ti t d l i t it

• Partnerships – Continue to develop private equity

partnerships on a project-by-project basis to reduce liquidity and execution risks

• Financial –

Focus is on improving cash flow, leveraging both

• ur land bank and recent PE partnerships - work down debt

where we expect to be in a net cash position by FY15 - divestiture of non core assets largely completed in FY11 divestiture of non-core assets largely completed in FY11

• Diversified Pan-India Mix – 41% of saleable area in

Delhi/NCR, 24% in western India, 19% in southern India, 16%

14

, , , in northern India (based on the projects under execution)

Core Business Segments

Residential Residential Integrated Integrated Townships Townships Townships Townships

• Multi-storied

apartments and group housing

• Multi-storied apartments,

group housing, houses/villas, g p g

• Represents 54% of projects

completed by saleable area g p g, , commercial, schools, hospitals, etc.

• Represents 36% of projects
• Represents 26% of projects

currently in development

• Strongest pricing environment
• Represents 36% of projects

completed by saleable area

• Represents 67% of projects

tl i d l t Strongest pricing environment – as illustration, pricing per square foot has increased roughly 300% since launch of currently in development

• Townships provide flexibility

through plot sales, aiding g y construction at two key projects (Exotica Gurgaon and La-Tropicana Delhi) g p g near-term project cash flow

15

Residential Case Study – La-Tropicana - Premium Delhi location Premium Delhi location

Project Name La‐Tropicana T t l S l bl ( ft) 2 26 Total Saleable area (sft) 2.26 mn Area Sold 1.69 mn Value Sold Rs 10,339 mn , Sold Receivable (A) Rs 5,188mn Area yet to be sold 0.57mn Value yet to be sold (B) Rs 10,260 mn Sold + Unsold Receivable (A+B) Rs 15,448 mn Less: Construction cost for completion Rs 2,800 mn Net Cash Receivable (C) Rs 12,648 mn Additional FSI (expected) (from 2.3 to Artist Impression: La-Tropicana 3.45) 1.1 mn Additional Net Cash (Expected) (D) Rs 17,008 mn Total Net Cash Expected (C+D) by

16

Artist Impression: La-Tropicana Total Net Cash Expected (C D) by March 2016

• Rs. 29,656 mn

$ 593 mn

Residential Case Study – RLDA - S i R hill Sarai Rohilla

First project of its kind in Delhi and the city’s most premium

• PDL has successfully won the bid for 38.3 Acres of prime land at Sarai Rohilla,

Delhi, from RLDA (Rail Land Development Authority), Ministry of Railways, in a tendering process

• The site is located in the centre of Delhi and is 10 minutes drive from

Connaught Place, the Central Business District of New Delhi

• At the existing FSI (floor space index), the total developable area available

would be around 4MM sq. ft. and with the additional FSI proposed for re- development project, the developable area is expected to be around 7MM sq. ft ft.

• The development would consist of luxury residential apartments, commercial

space and other civic amenities like medical and educational facilities p

• The project will be jointly developed by Parsvnath Developers Ltd. and Red

Fort India Real Estate Fund, through an SPV named as Parsvnath Promoters and Developers Pvt Ltd

17

and Developers Pvt. Ltd.

Residential Case Study – RLDA - S i R hill Sarai Rohilla

Project Name RLDA ‐ NewDelhi Total Saleable Area (sft) 4.09 mn Area Sold Nil Value Sold Nil Sold Receivable ( A ) Nil Area yet to be Sold (sft) 4.09 mn Value yet to be Sold ( B ) 65,320 mn Sold + Unsold Receivable ( A+B) 65,320 mn Less : Land Cost to be Paid (incl Stamp duty) 14,203 mn Less : Construction Cost for Completion 14,163 mn p , Net Cash Receivables ( C ) 36,954 mn Additional FSI Expected 3.01 mn Additional Net Cash Flow ( Expected ) ‐ (D) 29,878 mn T

• tal

tal Net Net Cash Cash Fl Flow

• w ( C + D ) Rs.

( C + D ) Rs. 66,832 mn T

• tal

tal Net Net Cash Cash Fl Flow

• w ( C + D ) $

( C + D ) $ 1,337 mn

18

Artist Impression: RLDA – Saria Rohilla

DMRC – Annuity-like cash flow ti

• Beyond initial investments, very

solid cash flow generation

generation

• 7 projects completed
• 6

projects in production

• r

development p

• Total spent to date is Rs 645 Cr

($129MM) & Rs 200 Cr ($40MM) remains in next 2-3 years

• Lease terms : 12-30 years
• Key tenants include: McDonald’s /

BIG BAZAAR / KFC / BLUE – DART / SYNDICATE BANK / CARREFOUR / Axis Bank / Comesum / BigJo’s etc.

• Annual net revenue expected to

be Rs 300 Cr ($60-65MM) per year based on 90% occupancy

Artist Impression: Redfort Parsvnath Tower, Bhai Veer Singh Marg, Connaught Place

19

Understanding DMRC

PDL will develop 2.20 M Sq ft of prime commercial real estate on a lease model

Mn/Sft L bl A L d A B l Leasable Area Leased Area Balance Project Name Location M Sq Ft Project Status LOI/Signed Area Parsvnath Metro Tower , Shahdara Delhi 0.11 Completed 0.09 0.02 Parsvnath Metro Mall, Inderlok Delhi 0.09 Completed 0.05 0.04 Parsvnath Metro Mall Inderlok Annexe Delhi 0 05 Completed 0 02 0 03 Parsvnath Metro Mall, Inderlok Annexe Delhi 0.05 Completed 0.02 0.03 Parsvnath Metro Mall, Kashmere Gate Delhi 0.06 Completed 0.04 0.03 Parsvnath Metro Mall, Tis Hazari Delhi 0.02 Completed 0.02 Parsvnath Metro Mall, Pratap Nagar Delhi 0.02 Completed 0.02 ‐ Parsvnath Metro Mall, Seelampur Delhi 0.03 Completed 0.02 0.01 Total Completed Projects 0.38 0.24 0.15

• a
• p e ed
• je s

0 38 0 5 Parsvnath Metro Station, Azadpur (Part‐A) Delhi 0.13 Under Construction 0.02 0.11 Parsvnath Metro Station, Akashardham (Part‐A) Delhi 0.14 Under Construction 0.03 0.11 DMRC ‐ Seelampur Commercial Delhi 0.58 Under Construction 0.08 0.50 DMRC ‐ Welcome Metro Delhi 0.40 Under Construction ‐ 0.40 DMRC ‐ Bhai Veer Singh Marg, Connaught Place Delhi 0.28 Under Construction ‐ 0.28 Under Construction Projects 1.53 0.13 1.40 DMRC ‐ Netaji Subhash Place Delhi 0.29 Upcoming Construction ‐ 0.29 Upcoming Projects 0.29 ‐ 0.29 Grand Total 2.20 0.37 1.84

Note : Besides this, PDL has an option to acquire, after the land use change effected by DMRC, two more projects named as Azadpur Part-B & Akshardham Part-B, comprising an area of 11,716 sq. mt. & 11,575 sq.

• mt. respectively

20

Understanding DMRC

Leaseable Area ( sft ) Average Realization Rental Per Sq.Ft Annual Expected Status Project Name Rental ( Rs./Mn) Parsvnath Metro Tower , Shahdara 1,11,337 828 92.19 Completed Parsvnath Metro Mall, Inderlok 89,457 924 82.66 Completed Parsvnath Metro Mall, Inderlok Annexe 52,623 1,032 54.31 Completed Parsvnath Metro Mall, Kashmere Gate 59,430 924 54.91 Completed Parsvnath Metro Mall Tis Hazari 22 245 840 18 69 Completed Parsvnath Metro Mall, Tis Hazari 22,245 840 18.69 Completed Parsvnath Metro Mall, Pratap Nagar 24,585 ‐ ‐ Completed Parsvnath Metro Mall, Seelampur 31,220 720 22.48 Completed Total Completed Projects 3,90,897 325.23 Parsvnath Metro Station, Azadpur (Part‐A) 1,29,185 1,380 178.28 Under Construction Parsvnath Metro Station, Akashardham (Part‐A) 1,35,020 1,440 194.43 Under Construction DMRC ‐ Seelampur Plot ( Partly Completed )* 5,75,299 1,152 662.74 Under Construction DMRC ‐ Welcome Metro 3,95,305 1,140 450.65 Under Construction DMRC ‐ Bhai Veer Singh Marg, Connaught Place 1,45,067 3,600 522.24 Under Construction Total Under Construction Projects 13,79,876 2,008.34 DMRC ‐ Netaji Subhash Place 2,91,555 1,500 437.33 Upcoming Construction DMRC Netaji Subhash Place 2,91,555 1,500 437.33 Upcoming Construction Total Upcoming Projects 2,91,555 437.33 Grand Total ( Rs/mn) 20,62,328 2,770.90 Grand Total ( $/mn) 20 62 328 55 42

21

Note – Bhai Veer Singh Marg, Connaught Place Project – An FDI project in which the Parsvnath is having 51% economic interest , which is considered in the Cash Flow. Grand Total ( $/mn) 20,62,328 55.42

Hospitality

LUXURY HOSPITALITY

• Strong

Portfolio

• f

13 hotel properties across India

• All hotels to be developed in a 100%

Subsidiary, Parsvnath Hotels Limited (“PHL”)

• Hotels to be owned by PHL and

y managed by leading national and international hotel chains

• MoU with Fortune Park Hotels of ITC

Welcomgroup to develop 20 ‘5 Star’ Welcomgroup to develop 20 5-Star , 20 ‘4-Star’ and 10 ‘Mid-Market Budget Hotels’ Fortune Park Hotels will

• nly
• perate and market these hotels

Annual Revenue expected to be of Rs.155 Cr ($31MM) per year based on 75% occupancy

Artist Impression: Hotel - Mohali

p y

22

Hospitality

AFFORDABLE HOSPITALITY

• Throughout India , the affordable hospitality segment (roughly $

15/ i ht) i l t l i d 15/night) is completely unorganized

• The limited number of hotels can generally be characterized as

shabby unclean and unsafe shabby, unclean and unsafe.

• There exists a huge opportunity to revolutionize this space which

Parsvnath has identified through a 3 way partnership between Parsvnath has identified through a 3 way partnership between

• Current Unorganized Property Owners
• PHL (Parsvnath Hotels Limited operates as a subsidiary of

( p y PDL)

• Choice Group
• PHL will be Investing in refurbishment - Choice International to

franchise, Operate & market “Sleep Inn” or other brands like “Comfort Inn”. PHL will have an option of co-branding along with Ch i I t ti l “ANNEHA”

23

Choice International as “ANNEHA”.

Hospitality

AFFORDABLE HOSPITALITY

• The result –

The result

• in

properties which PHL invests 3-4 lacs ($ 7 000)/per room nightly rates will increase to $ 7,000)/per room, nightly rates will increase to $ 35/room and in properties where PHL invests 7 lacs ($14,000)/per room, nightly rates will increase to $ 75-80/room

• Average occupancy rates will increase from 25% to

75% 75%

• The first properties have just launched and the company

will add properties monthly with a goal of 500 launched will add properties monthly with a goal of 500 launched by 2015.

24

• Expected payback of 3-4 years.

The Parsvnath The Parsvnath Management Team

25

Our Management Team

M P d J i F d Ch i

• Mr. Pradeep Jain, Founder, Chairman
• Founded Parsvnath Developers, Ltd., with just US $25

and gradually built PDL into a leading developer in India and gradually built PDL into a leading developer in India

• Mr. Jain brings 25 years of real estate development experience
• Mr. Jain’s leadership and influence is evidenced by his chairmanship and

membership on important industry boards: membership on important industry boards:

• Chairman, Confederation of Real Estate Developers’ Association of India” (CREDAI-

INDIA)

• Board Member on APREA (Asia Pacific Real Estate Association), Singapore
• Governing Body member of Confederation of Indian Industry (CII

Delhi Council)

• Governing Body member of Confederation of Indian Industry (CII - Delhi Council),

Associated Chamber of Commerce & Industry (ASSOCHAM), PHDCCI, PHD Rural Development Foundation & Family Welfare, National Real Estate Development Council (NARDCO), Rajasthan Real Estate Development Council (RAJREDCO)

• President, Jain International Trade Organization (JITO)-NCR Chapter
• Member of the NYSE Advisory Board, New York, USA
• Managing Trustee and Vice Chairman, Moradabad Educational Trust, which runs the

Moradabad Institute of Technology

26

Our Management Team

• Mr. Sanjeev Jain, Managing Director

f (C )

• Mr. Jain graduated with a Bachelor of Engineering (Civil) degree with the

specialization in advanced construction technology. He has over 16 years of experience in the real estate sector. Mr. Jain heads the architectural, construction, purchase and general administration of the company.

D R j J i Di t (M k ti )

• Dr. Rajeev Jain, Director (Marketing)
• Mr. Jain is a qualified Medical Practitioner having graduated with an MBBS
• degree. He has 10 years of experience in real estate development. Mr. Jain

heads the marketing and commercial departments of the company. g p p y

• Mr. G R Gogia, Director (Business Development)
• Mr. Gogia graduated with a Bachelor of Arts (Hons.) and a Degree in Law. He

has over 26 years of experience in real estate development. He heads the B i D l t d t t f th Business Development department of the company.

27

Our Management Team

• Mr. P.K. Jain, President
• Mr. Jain graduated with a Bachelor of Engineering (Civil) degree. He has 39 years
• f experience in civil construction and real estate development in India and abroad.
• Mr. Pawan Gupta, President
• Mr. Gupta is a qualified Chartered Accountant & Commerce Graduate. He has vast

i i th fi d l t t t experience in the finance and real estate sector.

• Mr. M.C. Jain, Sr. Vice President (Corporate)
• Mr. Jain is a qualified Chartered Accountant with a Degree in Law. He has over 30

years of experience in financial management, corporate planning and administration.

• Mr. V. Mohan, Sr. Vice President (Legal) & Company Secretary
• Mr. Mohan graduated with a Bachelor of Science degree, Degree in Law and MBA.

He has over 26 years of experience in legal and company secretarial affairs.

• Mr. R.N. Maloo, Sr. Vice President (Finance) & Group CFO

Mr Maloo is a qualified Chartered Accountant Looking after overall Finance and

• Mr. Maloo is a qualified Chartered Accountant. Looking after overall Finance and
• Accounts. Mr. Maloo has over 24 years of experience in financial management,

taxation & accountancy.

28

Strong Corporate Governance

Name Designation Current Role & Responsibility

• Mr. Pradeep Jain

Chairman Responsible for Strategy, Land Acquisition, Relationship Management

• Mr. Sanjeev Jain

Managing Director Heads the architectural, construction and purchase departments of the Company

• Dr. Rajiv Jain

Director (Marketing) Heads the marketing and commercial department of the Company p p y

• Mr. G R Gogia

Director (Business Development) Heads the business development department

• f the Company
• Mr. Ashok Kumar

Independent Director Experience – Over 50 years Executive Chairman Mansingh Group of Hotels Chairman, Mansingh Group of Hotels

• Mr. R N Lakhotia

Independent Director Experience – Over 50 years Practicing Advocate & Tax Consultant

• Mr. Sunil Jain

Independent Director Experience – Over 24 years, Chairman, North Eastern Carrying Corporation Limited.

• Mr. R J Kamath

Independent Director Experience – Over 40 years., Ex- Chairman and Managing Director, Canara Bank & Andhra Bank

• Dr. Pritam Singh

Independent Director Having vast experience, Professor-MDI Institute

• Dr. Vinod Juneja

Independent Director Vast Experience in Banking ., Managing Director: Binani Group Ex Dy Managing

29

Director: Binani Group, Ex- Dy Managing Director : Bank of Rajasthan.

The Parsvnath The Parsvnath Land Bank

30

Our Land Bank

Landbank Details:- Total Landbank (Saleable Area) 199 mn. sq. Ft Total Land cost

• Rs. 6,264 Cr ($1,253MM)

Land Cost paid

• Rs. 3,650 Cr ($730MM)

Unpaid Land Cost

• Rs. 2,614 Cr ($523MM)

A l d t ft R 350 ( $7 ) Average land cost per sq. ft Rs . 350 ( $7 ) 2012 2013 2014 2015 Rest By 2016 Schedule of land payment (Rs 91 663 579 559 722 Schedule of land payment (Rs Cr) 91 663 579 559 722 Schedule of land payment ($MM) 18 133 116 112 144 ($MM)

31

Land Bank - Status

Total Land

199 msf

122

199 msf

Under Execution

msf

To be developed later

Under Execution

77 msf

Being Sold 40.5 msf Already Sold 36.5 msf 23.2 msf of Plots Sold Area Value – Rs.5,333 Cr ($1,066MM)

Unsold Area Value – Rs.12,087 Cr ($2,417MM) based on flat pricing to last

Receivable Amt – Rs 2 582 Received Amt – Rs 2 751 Cr

sales price

Receivable Amt Rs.2,582 Cr ($516MM) Received Amt Rs.2,751 Cr ($550MM)

32

Land Bank Execution

13m Residential

(Affordable & Mid Segment)

74% by March 2013 1.8 m Commercial 81% by March 2013

Accelerated

199m

77 m 1.5 m DMRC 100% by June 2013

execution by 2013

sft

77 m 52m Townships 49% by March 2013 122 m 0.6 Hotels 44% by March 2013 m 7 9 Hotels Premium 44% by March 2013 62% by March 2013

Land Bank at various stages of approvals

7.9 m Residential

(FDI/ PE)

62% by March 2013

33

Execution Roadmap ‘12-’16

M sft Till Sept Oct ‐ Mar 2012 ‐ 13 2013 ‐ 14 2014 ‐ 15 2015 ‐ 16 2011 2012 Residential 21.01 8.05 3.13 4.55 2.57 2.16 0.55 FDI ‐ Premium 7.88 2.57 0.86 1.45 1.24 1.5 0.26 Mid to Affordable 13.13 5.48 2.27 3.1 1.33 0.66 0.29 Township 52.10 11.38 4.77 10.19 11.64 8.22 5.9 Plots 25.81 9.46 3.25 5.19 5.92 1.99 ‐ Houses 22.21 1.87 1.35 4.3 4.9 5.29 4.50 C i l 4 08 0 05 0 17 0 7 0 82 0 94 1 4 Commercial 4.08 0.05 0.17 0.7 0.82 0.94 1.4 Commercial 1.81 0.91 0.24 0.34 0.32 ‐ DMRC 1.52 0.77 0.31 0.44 ‐ ‐ Hotels 0 57 0 03 0 12 0 13 0 24 0 03 0 02 Hotels 0.57 0.03 0.12 0.13 0.24 0.03 0.02 Total 77.01 21.14 8.57 15.65 14.77 10.41 6.47 Cummulative 21.14 29.71 45.36 60.13 70.54 77.0

34

% of Total 27.45% 11.13% 20.32% 19.18% 13.52% 8.40% Cummulative % 27.45% 38.58% 58.90% 78.08% 91.60% 100%

Land Bank Execution – Focus on Cash Flows

Rs 16392 Cr / $3278 mn

2015

Cummulative Expected Cash Generation from Operation

2017 Rs 6228 Cr / $1246 mn

This Represents 40% of the Land bank

2013 2014

Rs 10262 Cr / $2052 mn 2017 2015 2014 Rs 920 Cr / $184 mn

2011 2012

Rs 2666 Cr / $533 mn 2013 2012 Rs 13018 Cr / $2604 mn

2015

Expected Project Sale (Cumalative from 2012 to 2016)

2016 Rs 5563 Cr / $1113 mn

Projects worth Rs 5,333 cr ($1,067 mn)

Rs 8781 Cr / $1756 mn Rs 3090 Cr / $618 mn

2012 2013 2014

2015 2014 2013 Rs 1305 Cr / $261 mn Rs 5333 Cr / $1067 mn

already sold

Upto 2010 2011

Upto Sept 2011

Last Qtr 2011

2012 35

Expected to have net cash surplus by 2015

Note - $ = Rs 50

FY 2009 – A FY 2009 A Valuable Lesson

36

FY 2009

Both borrowers and lenders froze owing to financial crisis in the US

Incremental Mortgage Lending Incremental Mortgage Lending

in the US

14000 16000 18000 8000 10000 12000 14000 Rs (Crore) 2000 4000 6000 R

PDL instituted PDL instituted corrective actions that will help corrective actions that will help

Source: RBI

us weather another us weather another downturn downturn

37

Corrective Actions

• Divested non-core assets, generating $91MM

R i d f $96MM th h L T C it l

• Raised money of $96MM through Long Term Capital
• Increased

project development transparency and implemented performance penalties giving consumers implemented performance penalties, giving consumers greater confidence

• Brought on Private Equity Partners, who provided

Brought on Private Equity Partners, who provided needed liquidity to jump start projects

• Outsourced project management and construction to

improve execution performance on key projects

• Developed

recurring revenue plan from DMRC, C i l d H it lit j t Commercial, and Hospitality projects

38

Private Equity Partnerships

Red Fort Capital Date Amount (Rs M) % Stake Project

Sept , 2010 1385 ($28MM) 24.5% DMRC (BOT) Bhai Veer Singh Marg, New Delhi November 2010 2700 ($54MM) 49 0% RLDA – Sarai Rohila Delhi November , 2010 2700 ($54MM) 49.0% RLDA – Sarai Rohila Delhi

Date Amount (Rs M) % Stake Project Sun Apollo Date Amount (Rs M) % Stake Project

December, 2009 750 ($15MM) 49.9% Exotica Part – II, Gurgaon December , 2010 1000 ($20MM) 49.9% Exotica , Ghaziabad

Date Amount (Rs M) % Stake Project J.P. Morgan Advisors India Date Amount (Rs M) % Stake Project

Dec , 2010 2550 ($51MM) 22% La – Tropicana , New Delhi

Parsvnath captures greater share of upside in revenue and net cash flows

39

Reduced Leverage

• Net debt on the books has come down from a peak debt of Rs

2200 cr ($440MM) to Rs 1412 cr ($282MM) as on Sept. 30,2011 ,

• Sale of non-core assets + Internal Accruals will be mainly

used for execution and partly used to repay loan worth Rs 378cr ($76MM) in 2012 and Rs 389 cr ($78MM) in 2013

• However, management continues to apply the debt reduction

mindset in hopes of getting to a net cash position before 2015 through : through :

• Further eyes on doing partnerships with leading private

equity firms to share execution risk

• Potentially interested in further liquidation of large assets

Potentially interested in further liquidation of large assets (one in Delhi currently valued at roughly $ 150MM is gaining much interest as are other properties in the south and the west of India.

40

Conclusion

41 41

Conclusion

• PDL is uniquely positioned to take advantage of the
• PDL is uniquely positioned to take advantage of the

many secular growth opportunities throughout the pan-Indian real estate market with specific focus in Delhi/NCR and North India regions

• The company and its experienced management

The company and its experienced management team have taken corrective and shareholder friendly actions with its business model over the last several years with an extreme focus on reigning in debt years with an extreme focus on reigning in debt levels and generating cash flow

• Upper management showing confidence in story

having bought 16MM shares in the open market in the last 4 months and 3MM alone on 11/18/11 the last 4 months and 3MM alone on 11/18/11

• With an eye to the future, the company and its

e tensi e land bank sho ld be ell positioned in

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extensive land bank should be well positioned in most any global economic environment

Thank You! Thank You!

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