Unitech Limited · NSE:UNITECH
Unitech — Investor Presentation (August 2010)
18 slides from Unitech's investor presentation, Aug 2, 2010
Slide 1: Unitech Limited: Making key strategic moves
Unitech Limited Making key strategic moves
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% in 2010-11 • Buoyancy in the job market, rising wages • Strong domestic demand • Normal Monsoon expected • Inflation yet to moderate • Interest rates trending up
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 p
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: Shift in Strategy
Shift in Strategy Repositioning to attain leadership position in residential segment through focus on affordable housing and improve sustainable cash flows Key focus areas Before Now 1 Residential • Primarily target luxury/upper middle • More focus on mid and affordable segment income housing segmen
Slide 7: The mid/affordable housing opportunity
The mid/affordable housing opportunity Huge demand projected in the affordable housing segment Source: Ministry of Housing and Urban Poverty Alleviation, India Source: McKinsey Global Institute • Through a combination of reduction in costs, decrease in unit sizes and reduction in margins, Unitech ha
Slide 8: Unitech’s strategy yielding positive results
Unitech’s strategy yielding positive results • 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
Slide 9: 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 10: Unitech Infra Ltd
Unitech Infra Ltd - Infrastructure Businesses Gearing up for Growth
Slide 11: 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 12: Portfolio of Businesses post restructuring
Portfolio of Businesses post 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 BO
Slide 13: 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 14: 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
Slide 15: Restructuring – some more details
Restructuring – some more details • Appointed Date for the demerger would be April 2, 2010 • Existing Unitech shareholders will receive 1 equity share of face value of INR 2 per share of Unitech Infra, for each equity share held in Unitech • Existing shareholders of Unitech will hold 65% of the tota
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 Rs. 6135 Crores – 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 ~Rs. 3,000 Cr i.
Slide 18: Thank You !!
Thank You !!