Dlf Limited · NSE:DLF
Dlf — Investor Presentation (May 2008)
34 slides from Dlf's investor presentation, May 2008
Slide 1: DLF Ltd. - Building India
DLF2. BUILDING INDIA DLE Ltd. May, 2008
Slide 2: Safe Harbour
SAFE HARBOUR This presentation contains certain forward looking statements concerning DLF’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The
Slide 3: History
HISTORY Launched Ventured premium Significant Development Ventured into into progress in residential of 21 urban Group Housing organised pursuing and complexes colonies Projects retail ramping up with luxurious complexes milieu of the new businesses – Hotels Golf Links and Large Townships 1946 1950-
Slide 4: Value Proposition
VALUE PROPOSITION • Multi-business, multi-segment across geographies, mitigating cycles in the business • A mix of development earnings and rental / incremental earnings • High quality ‘zoned’ land resource with development potential for more than ten years • Strong execution strengths based on deep
Slide 5: Businesses
BUSINESSES DLF CORE EXECUTION BUSINESS NEW BUSINESS INVESTMENTS ENABLERS LOR JV PRUDENTIAL JV WSP JV FUNDS HOMES OFFICE SHOPPING HOTELS LARGE SEZ INFRASTRUCTURE HILTON JV NAKHEEL JV AMAN RESORTS Other SEZ SPV’ SPV’S DLF is an aggregation of many businesses, legally structured separately and run by i
Slide 6: Corporate Strategy
CORPORATE STRATEGY • Business organised on vertical basis: Homes, Office, Retail, Hotels, etc., each independent of the other • Same structure is followed not only at the corporate level, but flows down to the regional/local level • DLF, at the corporate level, plays the role of an aggregator of bus
Slide 7: Organization Structure
ORGANIZATION STRUCTURE DLF HOMES BU (Corporate Level) Managing Director / CEO Head - Land Head - Legal Chief Financial Officer Head - Marketing Head – Business Dev NORTH Regional CE Regional Head - Land Regional Head - Legal Regional Head - Marketing Regional Head – Business Dev The above “indicativ
Slide 8: Land Resource
LAND RESOURCE • Pan-India presence across 32 cities catering to all market segments • All land resource within the Masterplans of cities and towns • 90% of resource available as large, contiguous plots of land • 80% of developable area in super-metros and metros • Sufficient land resource to meet lo
Slide 9: Geographic Spread
GEOGRAPHIC SPREAD Chandigarh Jallandhar Shimla Ludhiana Kasoli Amritsar Sonepat Panipat Delhi Noida Sikkim Gurgaon Lucknow Agra Jaipur Ahemdabad Jamnagar Indore Kolkata Vadodra Bhubaneshwar Mumbai Pune Nagpur Goa Hyderabad Bangalore Mysore Chennai Cochin Coimbatore DLF teams at work on different pro
Slide 10: Homes - Highlights
HOMES Highlights From Plots and Urban Colonies to Group Housing and Large Townships • DLF pioneered townships and group housing in India • Introduced the super-luxury and luxury category for homes • Business model allows pre-sale of property prior to breaking ground, leading to positive cash flows •
Slide 11: Homes - Strategy
HOMES Strategy HOMES Super Luxury Luxury Mid - Income • Started the concept of super- • Achieved a stable business model • The ever-increasing Indian luxury houses with large plotted with the development of Aralias middle-class, currently pegged at developments and urban colonies and Magnolias (Golf
Slide 12: Current Build-out
Current Build-out Super Luxury / Luxury • Aralias, Gurgaon: Occupants started moving in to the custom-made apartments and pent houses overlooking the Golf Course • Magnolias, Gurgaon: Apartments with a golf-course, these have attracted HNIs, NRIs and affluent residents Mid-Income Launched premium ho
Slide 13: Price points achieved in recent launches
Price points achieved in recent launches Mid-Income Units Booked Launch Price Our Latest Price (till Apr 30, 2008) (Rs/sq ft) (Rs/sq ft) New Town Heights, Kolkata 806 3137 3718 Riverside, Kochi 94 4052 4168 OMR, Chennai 2304 3180 3475 New Gurgaon 2498 2934 2951 Gardencity, Indore 449 736 870 Note: P
Slide 14: Homes: Forthcoming Launches
Homes: Forthcoming Launches Chandigarh Indore Goa Bangalore Chennai Kakanad 14
Slide 15: 10 Year Annual Target vs Delivery
10 Year Annual Target vs Delivery 10-yr Annual Delivery Taget Delivery Planned FY 09 FY 10 FY 11 msf Super luxury / Luxury 4 3 3 3 Mid-Housing, Institutions, Villas & Plots 26 6 10 16 Note: The projected delivery is subject to occupancy certificate being received for buildings completed during the y
Slide 16: Large Integrated Townships
LARGE INTEGRATED TOWNSHIPS • DLF pioneered development of large integrated townships decades ago with the development of the 3,000 acre DLF City, Gurgaon • Townships include residential, commercial and retail properties in a modern city infrastructure, complete with schools, hospitals, hotels, shopp
Slide 17: Office - Highlights
OFFICE Highlights • India forms an important part of growth strategy for every major multinational worldwide • Entry of multinationals has grown by over 300% in last two years alone leading to huge demand for office space • Demand for IT/ITES services (expected to grow at 15-20% CAGR over FY2010-16)
Slide 18: Office - Highlights
OFFICE Highlights • DLF is the founder and pioneer of “Grade A – office leasing market” in India • Offers a well-balanced mix of commercial office space including IT/ITES facilities, multi-tenant corporate office buildings and integrated commercial complexes • 164 msf of developable area • Existing
Slide 19: Office - Strategy
OFFICE Strategy OFFICE Sale Lease •Monetising a portion of the commercial assets • Pioneered lease model for commercial through a business trust, DLF Office Trust properties, i.e., general and built-to-suit (DOT), to be listed on the Singapore Stock • Leasing profile continues to be strong and Excha
Slide 20: Office: SEZs
OFFICE: SEZs • 7 IT SEZs notified, of which 3 are already occupied and operational • 4 SEZs have got final approval are in the process of being notified Sonepat Delhi Gurgaon Noida Gandhinagar Kolkata Nagpur Bhubneswar Pune IT/ITES SEZs Hyderabad Notified 7 Pending Final Approval 4 Chennai Applied F
Slide 21: Retail - Malls and Commercial Complexes
RETAIL – MALLS and COMMERCIAL COMPLEXES Highlights • Modern retail formats in India command just 3% of total retail market, much lower than developed markets (US – 85% share) and even Asian countries (Malaysia –55%, Thailand –40%, China 20%) • Organized retail segment in India is expected to grow at
Slide 22: Retail - Malls and Commercial Complexes
RETAIL - MALLS and COMMERCIAL COMPLEXES Highlights • Given the scarcity of quality organized retail, DLF enjoys the benefits of a portfolio of premium locations across the country and rush by large retailers • DLF envisages to introduce a new retail infrastructure to cater to the need for shopping m
Slide 23: Retail - Strategy
RETAIL - MALLS and COMMERCIAL COMPLEXES Strategy RETAIL Sale: Lease: Commercial Complexes Large Malls and smaller malls • Build and sell model for commercial • Build and lease model for Malls complexes and shopping centres • Leasing would ensure strong and sustained • Introducing commercial spaces w
Slide 24: Forthcoming Launches: Retail Malls, Commercial Complexes
Forthcoming Launches: Retail Malls Commercial Complexes Amritsar Delhi Gurgaon Noida Lucknow Mumbai Hyderabad Commercial Complexes Retail Malls Retail Projects – handover completed in Q4 FY08 24
Slide 25: Hotels Strategy
HOTELS Strategy DLF HOTELS HOLDINGS LIMITED HILTON JV AMAN ACQUISITION Business Hotels / Serviced Other luxury Hotels Part of Luxury Strategy Apartments • Business Hotels • Holding company for other hotel • One of the pre-eminent and most • 51 sites acquired and are in various properties innovative
Slide 26: Locations of Various Sites
LOCATIONS OF VARIOUS SITES • 25 projects comprising 4,255 keys under construction in FY09 Chandigarh • 313 keys opening in FY09 New Delhi Gurgaon - Saket, Delhi: Hilton Garden Inn - Aman Lodhi, New Delhi • Opening of Gurgaon Phase III and V clubs (rooms only) Kolkata • Project execution commenced fo
Slide 27: Presence of AMAN Resorts
Presence of AMAN Resorts AMANGANI LE MÉLÉZIN USA France AMANKORA AMAN Delhi Bhutan AMANJENA AMANBAGH AMANSARA Morocco AMAN –I-KHAS Combodia AMANYARA India Turks & caicos AMANPULO Philippines AMANGALLA AMANWALA AMANPURI Srilanka Thailand HOTEL BORA BORA AMANWANA French Polynesia Indonesia AMANJIWO In
Slide 28: Large SEZs
LARGE SEZs • Manesar SEZ: Signed agreement with Haryana government, land acquisition in progress • Ambala SEZ: Signed agreement with Haryana government for Ambala SEZ 28
Slide 29: Infrastructure
INFRASTRUCTURE • According to CRIS INFAC, investment in infrastructure will increase to INR 2,89,200 Crore in 2008 from INR 2,65,500 Crore in fiscal 2005 • Significant portion of infrastructure development is expected to be undertaken through public-private partnerships • The current rate of infrast
Slide 30: Equity Investments
EQUITY INVESTMENTS Strategy • Foray into life insurance / asset management is largely an equity investment. In next couple of years, the group would be generating surplus cash flow, which would be in excess of fresh investment needs. • Investments: - A 74:26 JV with Prudential Financial Inc., US for
Slide 31: Strong Execution Capability
Strong Execution Capability Construction in progress in 14 cities Proje cts Unde r Construction (msf) 62 59 44 Punjab Sonepat Delhi Gurgaon Uttar M ar, 2007 De c, 2007 M ar, 2008 Pradesh Gandhinagar Kolkata BU-wise Area Under Construction Mumbai Nagpur (msf) Pune Offices Homes Hyderabad 39 12 11 Ban
Slide 32: Execution Enablers
EXECUTION ENABLERS Laing O’ Rourke • 50:50 JV with LOR, a leading UK based construction company with expertise in construction of infrastructure projects including roads, bridges, tunnels, pipelines, harbors, runways and power projects • Created an opportunity to exploit new sources of revenue • JV
Slide 33: Financials
FINANCIALS Turnover EBITDA 14,494 10,016 % 72% 239 Rs crore Rs crore GR1 GR CA CA 4,053 2,906 1,960 874 FY06 FY07 FY08 FY06 FY07 FY08 PAT EPS 47 7,856 % 37% 546 G R3 G R Rs crore CA Rs CA 13 1,934 411 1 FY06 FY07 FY08 FY06 FY07 FY08 33
Slide 34: To Conclude
TO CONCLUDE India’s largest real estate company in terms of revenues, earnings, market capitalisation and developable area with a 62-year track record of sustained growth, customer satisfaction and innovation Robust business model with mix of development & rental earnings Low risk due to multi