Unitech Limited · NSE:UNITECH
Unitech — Investor Presentation (October 2010)
21 slides from Unitech's investor presentation, Oct 18, 2010
Slide 1: Unitech Limited – Focusing on Delivery
Unitech Limited Focusing on Delivery
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: • This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any secur
Slide 3: Macroeconomic Scenario
Macroeconomic Scenario • Strong recovery in the Indian economy during H2 FY10 • GDP growth – 7.4% in 2009-10 , expected to be over 8.5% in 2010-11 • Buoyancy in the job market, rising wages • Strong domestic demand • Good Monsoon Season • Inflation yet to moderate • Interest rates trending up 3
Slide 4: Industry Scenario
Industry Scenario • Growth momentum in the Indian economy translated into recovery in the physical property market • Recovery began in Mar’09 with revival in demand for affordable housing • Demand for higher end residential product also picked up during the 2nd half of FY10 • Residential property pr
Slide 5: Unitech – Truly diversified developer
Unitech – Truly diversified developer • Only developer to have a large presence in major cities across all four regions – NCR, Mumbai, Mohali / Chennai, Kolkata Chandigarh Dehradun • Diversified land bank to offer a wide Ambala variety of product NCR Agra Siliguri – Plots, Low rise, Mid rise and Var
Slide 6: Sales Performance in FY10
Sales Performance in FY10 Mn • Achieved all time high sales bookings in FY10 •16.6 Mn sq ft of total area sold during the last fiscal year • Unitech’s projects now spread across multiple cities 6
Slide 7: Sales Performance – Q1 FY11
Sales Performance – Q1 FY11 Area Sales Launched Area sold Value (INR Mn City (Mn sq ft) (Mn sq ft) Mn) Gurgaon 1.48 1.42 7,650 Noida + G Noida 0.81 0.72 3,450 Chennai 0.15 0.37 630 Kolkata 0.20 0.30 850 Other Cities 0.12 0.20 400 Total 2.76 3.01 12,980 Average Area Realizatio Booked sold n (INR per
Slide 8: Execution Performance
Execution Performance DELIVERY STATUS OF PAST PROJECTS (as of 30th June’10) Area to be Area delivered Balance to be delivered (Mn till 30th June'10 delivered (Mn City sq ft) (Mn sq ft) sq ft) Noida + G Noida 6.5 1.3 5.3 Gurgaon 9.9 5.2 4.7 Kolkata 5.7 1.1 4.6 Lucknow 0.1 0.0 0.1 Mohali 0.5 0.0 0.5 T
Slide 9: Construction Status of Past Projects
CONSTRUCTION STATUS OF PAST PROJECTS (as of 30th June’10) • 50% of our past projects are in finishing/ handing over stages. • 80% of our project area has its structure completed 9
Slide 10: Enhancing execution capabilities
Enhancing execution capabilities Various measures being taken to reduce construction time as well as cost • Product Standardization : High volume standardized “manufacturing style” product will result in economies of scale and quick execution • Process Changes : Implementing various process changes
Slide 11: Unitech Infra Ltd – An Update
Unitech Infra Ltd - An Update 11#
Slide 12: Unitech Today - Business Snapshot
Unitech Today - Business Snapshot Leading Real Estate Developer with Capabilities Across Verticals Property Management and Construction and Real Estate Investments Consultancy Services Transmission Towers • Completed development of: • Property management • Proven track record in • Pan-India – Over 2
Slide 13: Proposed Restructuring
Proposed Restructuring Infrastructure Infrastructure Development Investments Real Estate Services Residential, Hospitality General Construction Commercial and Retail Facilities and Property Management Services SEZs / IT Parks Integrated Township Developments 32.75% Interest in BOT Hospitality Logist
Slide 14: Rationale for Restructuring
Rationale for Restructuring • Segregate Infra businesses – which are capital intensive – from real estate business – which is expected to generate surplus cash. • Provide greater focus to different businesses – Independent Management teams to run real estate (Unitech Ltd) and infra businesses (Unite
Slide 15: UT Infra: Status Update
UT Infra: Status Update • CEO appointed for UT Infra – Jayesh Desai with over 20 years of experience appointed – Hiring underway for the complete management team • Support execution for Unitech – Construction Team being built up • Business Development activities in progress • Appointed Date for the
Slide 16: Unitech Infra – Strong Value Unlocking Proposition
Unitech Infra – Strong Value Unlocking Proposition Well Poised to Capitalize on the Infrastructure Growth Opportunity • Huge opportunity in the growing Indian infrastructure sector – Total expected XIth plan outlay of c. INR 21 Trillion (1) – INR 3,118 Bn investment estimated in road projects The –
Slide 17: Uninor – Creating Value
Uninor – Creating Value • Telenor completed its entire investment of INR 61,350 Mn – reaffirming its long term commitment to India. • Unitech Ltd. has an economic interest of 32.75% in Unitech Wireless • Based on entry valuation of Telenor, Unitech’s economic interest is valued at ~INR 30,000 Mn i.e
Slide 18: Unitech: Way forward…
Unitech: Way forward… • Continue focus on launches and execution • Improve realizations and maintain margins through optimal timing of launches • Consolidate holdings in JVs and development projects and land acquisitions on a selective basis • Continue to maintain fiscal discipline – Keep debt/equit
Slide 19: Thank You !!
Thank You !!
Slide 20: Annexure
Annexure unitech
Slide 21: Financial Impact
Financial Impact Unitech’s Balance Sheet expected to remain largely unchanged post restructuring No significant impact on revenues and profits as Unitech derives over 85% of its revenue from real estate business As of 31st Mar’10 Impact of Expected Post Restructuring Increase in Equity Restructuring