Ashiana Housing Limited · NSE:ASHIANA
Ashiana Housing — Investor Presentation (July 2012)
31 slides from Ashiana Housing's investor presentation, July 2012
Slide 1: Investor Presentation
Investor Presentation Ashiana Housing Limited July 2012
Slide 2: Agenda
Agenda Company Overview Market Opportunities Business Review Challenges Outlook Annexures
Slide 3: Company Overview
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Slide 4: Company Overview
Company Overview History of over 26 years 117.54 lakhs sq. ft. delivered till date In-house construction Direct sales approach Pioneers in Active Senior Living in India Net Debt Free Managing complexes for over 20 years with 6000 units under management Active Senior Living, Group Housing, Hotels and
Slide 5: Company Overview: Key Statistics
Company Overview Key Statistics Business Presence FY 12 Networth/5-Yr CAGR – `239.64 Crores/49% FY12 Revenues/5-Yr CAGR – `248.98 Crores/35% FY12 Net Income/5-Yr CAGR – `69.55 Crores/49% Active Group Senior Market Cap (31st Mar 2012) – `307.15 Crores Housing Living Employees (31st Mar 2012) - 550 (a
Slide 6: Large Population in earning bracket; Mid Income Group; Urbanization
Large Population in earning bracket Mid Income Demand Increasing Group For Homes Urbanization Affordability
Slide 7: Indian Demographics
Ratio of working to non working - age population 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 2.60 2.80 1950 1955 1960 East Asia 1965 1970 1975 1980 1985 India Low 1990 1995 2000 2005 2010 2015 2020 India med age ratio in India, 1950-2050 2025 2030 2035 Indian Demographics 2040 Growth of the working-age
Slide 8: Indian Middle Class
Indian Middle Class More than 100 Million households will join the Indian middle class All India households by Income bracket 0 1 4 1 2 3 100% 6 7 Globals 12 (>1,000) 90% 17 80% 31 25 Strivers (500-1000) % Million Households 70% 34 Middle 29 Class 60% Seekers (200-500) 50% 40 40% Aspirers 64 32 (90-
Slide 9: Improved Affordability
Improved Affordability 50 12 45 10 40 Property Value (rs.. Lacs) & Affordability 35 8 30 25 6 Annual Income (Rs. Lacs) 22.00 20 4 15 15.60 11.10 10 8.30 2 6.60 5.90 5 5.30 5.10 4.70 4.70 5.00 5.10 5.10 4.50 4.70 4.80 4.60 4.30 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Slide 10: Urbanization
Urbanization Cities will account for nearly 70 Percent of India's GDP by 2030 Share of India's GDP % Housing shortage in India Rupees in Billion No. of Units (in Millions) 40 100% = 15,903 29,100 49,043 238,041 34 35 30 100 30 27 Million Units 31 80 46 42 25 22 54 19 21 21 20 20 18 60 15 15 40 69 Ur
Slide 11: Target Market, Business Model, Operational and Financial Review
Target market Business Model Operational review Financial Review
Slide 12: Target Market
Target Market Middle income group in towns and cities with population of more than ten lacs and in upcoming industrial areas. People over 55 years of age in the middle income group in cities having population of more than 25 lacs or in magnets / satellites of metros.
Slide 13: Business Model
Business Model LAND IS RAW MATERIAL Execution focused model instead of a land-banking model. Targeted land inventory of 5-7 years of current year's execution plan. IN-HOUSE CONSTRUCTION CAPABILITIES ) & o (a Allows cost and quality control. Flexibility in execution with faster adaptation to changing
Slide 14: Business Review
Business Review Area booked during the year 2011-12 was 17.83 lsf, 32% higher than 13.50 lsf booked in 2010-11. Equivalent area constructed during the year 2011-12 was 14.62 lsf, 36% higher than 10.74 lsf constructed 2010-11. Expansions • Acquired 55 acres of land situated at village Thada, Bhiwadi.
Slide 15: Operational Review
Operational Review EAC Growth at a CAGR of 22% 20.00 17.84 18.00 16.00 14.62 14.00 13.50 In lacs sq ft 12.00 10.74 10.22 10.00 9.40 8.16 8.00 7.20 7.07 6.53 6.00 5.22 5.48 5.26 4.41 4.23 4.00 2.57 2.00 0.00 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 Equivalent Area Constructed (EAC) Area Booked
Slide 16: Operational Review
Operational Review Saleable Area Area Booked Project Name Location Type Area Launched Till 31/03/12 Remarks (lsf) (lsf) (lsf) Handed over first three phases, started Ashiana Aangan Bhiwadi Group Housing 20.57 20.57 20.15 handing over Phase IV and V, phase VI in CY 2012. Active Senior Phase I, II & I
Slide 17: Financial Review
Financial Review Particulars 2007-08 2008-09 2009-10 2010-11 2011-12 (in Rs. Lacs) Sales and Other Income 13,345 10,401 12,103 15,428 24,898 Operating Expenditure 8,861 7,027 7,411 9,578 15,930 EBITDA 4,484 3,374 4,692 5,850 8,967 Profit After Tax (PAT) 3,865 2,840 3,677 4,386 6,955 * Pretax operati
Slide 18: Financial Review
Financial Review Return on Avg. Net worth % Debt – Equity Ratio *Cash as a % of net Worth 90% 0.90 45% 40% 80% 77% 0.80 40% 70% 0.70 35% 60% 0.60 30% 28% 50% 0.50 25% 40% 35% 0.40 20% 18% 33% 34% 29% 30% 0.30 15% 13% 13% 20% 0.20 10% 10% 0.10 0.06 5% 0.04 0.04 0.01 0.00 0% 0.00 0% * Cash includes ca
Slide 19: Challenges
—3— Ay, Challenges =| >= => 2 == f ee intend) 5, E vy Y | r egulatory ~saa jr Regulatory a —_ >. Cyclical) /Merieaeecme (| Land Prices Nature 4 xf Labour > a > SS Availability — — — 7
Slide 20: Regulatory
Regulatory Lack of coordination between authorities Sufficient cash cushion to open alternative options. responsible for enforcing different laws Expansion in multiple locations to has increased red tape and time taken to diversify local regulatory risks. launch a project Withholding of the conversi
Slide 21: Labour
Labour Labour shortage increased dramatically Improved supervisor productivity in last 5 years. 30% labour shortage as through trainings to increase labour per Ernst and Young and FICCI report efficiency released in September 2011 Trained 964 unskilled labourers to semi Migration from Bihar, West Be
Slide 22: Land Prices
Land Prices Large increases in the FSI costs even in Maintain 5-7 years land inventory city peripheries Operate in lands where cost of land Speculative element & archaic land laws as a percentage of total costs is lower have resulted in land hoardings Get into Joint Venture Models Artificial scarcit
Slide 23: Cyclical Markets
Cyclical Markets Uncertainty in market due to cyclical Sufficient cash cushion to open nature alternative options Tendency of over supply situation Expansion in multiple locations to creeping in markets diversify local regulatory risks Supply waiting on sideline Phasing of projects for fast cash con
Slide 24: Outlook
Slide 25: 1 year Outlook
1 year Outlook Targets for bookings and construction for next year: In lsf 2008-09 2009-10 2010-11 2011-12 2012-13E Area Booked 5.26 7.07 13.50 17.83 16.00 Equivalent Area 9.40 10.22 10.74 14.62 14.00 Constructed The targets for FY13 are lower than the achievements of FY12 due to non-availability of
Slide 26: 2014-15 Outlook
2014-15 Outlook To get operations into 9 cities from current 5 To increase labor efficiency by 50% To develop second line management
Slide 27: Stock Market Performance, Shareholding Pattern, Accolades
Stock Market Performance Shareholding Pattern Accolades Change in Accounting Methodology
Slide 28: Stock Performance
Stock Performance BSE Realty Graph AHL BSE REALTY NSE Realty Graph AHL CNX REALTY 140 130 134 130 120 118 120 110 110 100 100 90 80 82 90 89 70 80 60 70 50 40 60 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-1
Slide 29: Shareholding Pattern
Shareholding Pattern Company Overview
Slide 30: Accolades
Accolades For the second time in a row, the only real estate company from India to figure in ‘Asia's Best Under A Billion' list of companies compiled by the Forbes magazine for 2011. Runner –Up Trophy of the BMA- Siegwerk Award for Corporate Social Responsibility 2010. Multiple awards in residential
Slide 31: Change in Accounting Methodology
Change in Accounting Methodology From Possession Based to Contract Completion Revenue Recognition when possession/ deemed possession happens for a unit/block/phase Advantages • More transparent • Easy to comprehend • No Hidden Liabilities To look for Transition Phase ( next two years) • Volatile Inc