Company Profile March 2015

Investor Presentation
March 2015
Mahindra Lifespaces: Leading real estate player
Company overview
Shareholding Pattern (31 Mar 2015)
 One of the leading Indian real estate players with presence in 9 city clusters across India
 Balanced business model with focus on residential and large format integrated business cities
 Completed 8.92* mn sq ft of residential and commercial real estate development
– Currently 5.98# mn sq ft of residential real estate under execution with 4.51# mn sq ft in pipeline
 Developed over 4,437** acres in large format integrated business cities at two locations
– Land holding of over 900 acres at two locations with further acquisition underway
 Stable financial growth:
– Consolidated Total income CAGR (FY11-15): 16%
– Consolidated PAT CAGR (FY11-15): 25%
Promoters (51%)
FII (29%)
Domestic FIs (1%)
Others (19%)
Mahindra & Mahindra Ltd.
51%
MLDL
74%
MWCJL
26%
RIICO
1
89%
MWCDL
11%
TIDCO
Group structure as of 31 March 2015 covering companies with operational projects only
MLDL develops residential projects directly and through MITL, MBDL, MRDL and MHPL
74%
26%
MITL1
100%
MRDL1
* Does not include select projects that were completed by GESCO
# Data represents estimated saleable/leasable area
50%
MHPL1
50%
SCM
70%
MBDL1
30%
BE Billimoria
** Procured till date
2
Geographic presence of Mahindra Lifespaces
Total (m sq. ft.)
Completed*
Ongoing
Forthcoming
Land inventory
Total
2.39
1.02
0.73
–
4.14
Completed*
8.92
Ongoing
5.98
Forthcoming
4.51
Land inventory
12.44
Total
31.84
PUNE
MUMBAI
GURGAON
HYDERABAD
NAGPUR
CHENNAI
CHENNAI
JAIPUR
Delhi
Faridabad
Gurgaon
Jaipur
Completed*
Ongoing
Forthcoming
Land inventory
Total
2.81
0.40
0.96
1.04
5.21
Nagpur
Mumbai
Completed*
Ongoing
Forthcoming
Land inventory
Total
–
–
–
0.60
0.60
Completed*
Ongoing
Forthcoming
Land inventory
Total
Nasik
–
0.85
0.68
–
1.53
Completed*
Ongoing
Forthcoming
Land inventory
Total
–
1.08
–
1.08
Pune
1.56
1.15
0.56
0.30
3.57
Hyderabad
Bangalore
Completed*
Ongoing
Forthcoming
Land inventory
Total
Completed*
Ongoing
Forthcoming
Land inventory
Total
–
–
0.98
–
0.98
Chennai
Completed*
Ongoing
Forthcoming
Land inventory
Total
2.16
1.48
0.59
10.50
14.72
Residential Development
Large format integrated business cities
Please refer “Glossary” for definitions on Completed,
Ongoing, Forthcoming and Land inventory
Classification of area
a. NCR includes Delhi, Gurgaon and Faridabad
b. Mumbai includes Mumbai, Boisar, Thane and Alibaug
Countrywide presence with projects concentrated in Tier I cities**
* Does not include select projects that were completed by GESCO
** Tier I cities include Mumbai, Pune, Hyderabad, Chennai, NCR and Bangalore
# Data represents estimated saleable/leasable area
3
Mission and Corporate Philosophy
Transforming urban landscapes by creating
sustainable communities
Inclusiveness
Housing for all, Industrial hubs and new
The Art of Living
Thoughtfulness ; Shaping communities
Responsible Citizenship
Enabling peace of mind ;
Safeguarding Tomorrow
urban nodes
− Entry level affordable homes in urban
centers through Happinest
− Premium and mid-segment residences in
metros and large cities through Mahindra
Lifespaces
− Wholesome urban ecosystems focusing
on Life, Living & Livelihood through
Mahindra World City
− Detail oriented design & planning that
− Garnering trust through fair practices and
improves usability, consistency, and
transparent dealings with all our
desirability of our offering
stakeholders
− Setting and meeting the highest
standards of quality for product and
service
− Enabling co-existence and
collaboration in all our developments
− Maintaining the highest standards of
corporate governance and disclosure
− Uncompromising focus on sustainable
development for excellence in planet,
profit and people benchmarks
4
Evolution of business over the last two decades
Mahindra Group
forays into the real
estate business as
Mahindra Realty &
Infrastructure
Developers Limited
(MRIDL)
1994
2000
Real Estate arm
of GE Shipping
demerges and
lists as GESCO
MRIDL and GESCO
merge to form
Mahindra Gesco
Developers Ltd.
Company name changes
from Mahindra Gesco
Developers Limited to
Mahindra Lifespace
Developers Ltd.
Launches second World
City at Jaipur
2001
2002
2006-07
Launches its first large
format integrated
business city - Mahindra
World City, Chennai
2008
First real estate
company in India to
publish a standalone
GRI report
Expands customer base
to 100+ clients at the
World Cities
2012
First developer in
India to launch
green homes
2013
Launch of new
business
vertical –
Happinest
focused on low
cost housing
2014
JV with SCM Real
Estate (Singapore)
Pvt. Ltd for residential
project development
5
Key investment themes
6
Key investment themes
1
7
Supportive
industry
fundamentals
6
Lineage of a well
respected Group
Industry
Leaders in
Corporate
Citizenship
Experienced
management
team
Consistent
Financial
Performance
Track Record
of Execution
2
Portfolio
Approach to
Business
Model
3
5
4
7
Key investment themes
1
7
Supportive
industry
fundamentals
6
Lineage of a well
respected Group
Industry
Leaders in
Corporate
Citizenship
Experienced
management
team
Consistent
Financial
Performance
Track Record
of Execution
2
Portfolio
Approach to
Business
Model
3
5
4
8
1
Parentage of Mahindra Group
Group Overview
Part of c.US$ 26.61bn
(by market cap.)*
Mahindra Group
AFTERMARKET
Empowers used-car and service buyers by
offering total transparency and world-class
service levels at affordable pricing
HOLIDAYS
Rethinks the vacation paradigm by
making premium holiday experiences
accessible to more people
AUTOMOTIVE & FARM
Group’s operations
span 18 industries
Challenges conventions to build award
winning vehicles and farm equipment that
deliver unmatched quality and value for
money
Provides full service solutions to original
equipment manufacturers in automotive
and non-automotive space
2-WHEELERS
Presence in over 100
countries employing
more than 200,000
people
Mr. Anand Mahindra,
Chairman & Managing
Director of Mahindra &
Mahindra has been
associated with the
Group since 1981
Helps change the face of rural India by
helping Indians finance their dreams
Provides customers with stylish and
powerful scooters and motorcycles
Develops healthier, greener, more
productive work and living spaces for
people on the Rise.
Enables global businesses to become
more effective through sustainable
information, communication and
technology services
DEFENSE
PARTNERS
Equips security forces with a range of
armoured vehicles and defense systems
* Combined market cap of Group’s listed entities as of 31 March 2015 (Source: BSE India)
Note: 1US$ = 60 INR
Incubates new ventures and provides
growth capital to bring our stakeholders
diversified products and services
9
1
Leaders in Most of our Businesses
Market Leader in India, with ~43% market
share in the SUV/ Pick-up segments
World’s largest tractor company by volume
Market leader in India for 30 years with ~40%
share
Largest rural NBFC in India
India’s no.1 vacation ownership company
One of Forbes
Global 2000 most
Powerful Companies
of the World in 2014
Mahindra Group
ranked no. 10 in the
Aon Hewitt Top
Companies for
Leaders Globally in
2014
M&M rated among
Received the
the Best Boards in
the Country (Top 4)
by The Economic
Times Survey of
India’s Best Boards,
2014
Financial Times
“Boldness in
Business” Award in
the Emerging
Markets Category in
2013
Among Top 5 IT service providers from India
India’s largest multi-brand, pre-owned car
company
Mr. Anand Mahindra
received the TERI
Sustainable
Development
Leadership Award,
Leader in developing Integrated Clusters
including India’s largest IT SEZ
2013
Mr. Anand Mahindra
received the
Entrepreneur of the
Year Award at the
Forbes India
Leadership Awards,
2013
10
Key investment themes
1
7
Supportive
industry
fundamentals
6
Lineage of a well
respected Group
Industry
Leaders in
Corporate
Citizenship
Experienced
management
team
Consistent
Financial
Performance
Track Record
of Execution
2
Portfolio
Approach to
Business
Model
3
5
4
11
1
Upholding high corporate governance
standards of the Group
 More than 50% of the Board consists of independent directors who are well known and reputed in their respective
fields
 Strong focus on independence at key subsidiaries level – Chairperson of the Boards from outside of the Mahindra
Group
 In line with best practices, the Board has set up 10 sub-committees to ensure operational independence, timely
direction and supervision for day-to-day functioning
 First real estate company in India to undertake standalone GRI compliance reporting
 Our Global Reporting Initiative (“GRI”) compliant report was awarded A+, the highest level of disclosure for FY
2012, FY 2013 and FY 2014
 Voluntary participation in the Climate Disclosure Leadership Index (CDLI) which requires companies to disclose
their impact on environment and actions taken to reduce them.
Company to continue to establish benchmarks in corporate governance
12
3
Sustainability: A core business value
Sustainability Agenda
Received the
Economic
Social
Environmental
Scale – We strive
for sustainable
business growth
Business Ethics
– We are
transparent
Resource Efficiency –
We conserve energy,
water, material
Green Supply
Chain
Management – We
enable sustainable
supply chain
Capacity
Building, Safety,
Hygiene &
Health – We care
for our people
+ve environment
impact – We
reduce pollution
caused by
construction activity
Product
Stewardship and
Customer
Centricity – We
ensure customer
delight
Community
Development
and Social
Infrastructure –
We build
communities
Carbon Footprint –
We aspire to be
carbon positive
Received “Order of
Merit” at the Skoch
Renaissance Awards,
2014 for Sustainability
Leadership
Commendation
Certificate for
Significant
Achievement at the CIIITC Sustainability
Awards 2014
Received Golden
Peacock Management
Award 2014 under
Special Commendation
category
Received “Order of
Merit” at Skoch
Renaissance Awards
2014 for women
empowerment
initiatives in the
neighboring community
of MWC, Jaipur
MWC Chennai
presented with Stage I
Certification for IGBC
Green Townships
Project with the rating
of IGBC Gold in 2014
MWCJ amongst one
one of 18 projects for
Clinton Climate
Initiative’s Climate+
development program
(CCI)
Mahindra Lifespaces aims to reduce the environment footprint caused by its products, processes and people
13
3
Sustainability: A core business value
Building Green Developments
Community Development
Water Efficiency
• Rain water harvesting
• Low flow water faucets and fixtures
• In-house sewage treatment plant and use of
recycled water
Mahindra Hariyali
• Develop 205 hectares of forest land for tree
plantation, soil & water conservation
• 180,000 plantations till date
Energy Efficiency
• Flyash bricks as building envelope to reduce
the energy consumption of air conditioners
• Provision of LED street lights
• Solar panels powered DG sets and solar
heaters
Gyandeep
• School for the children of construction workers
in Nagpur, Pune, Delhi and Jaipur
Material Management
• Integrated solid waste management facilities
• Reuse of construction waste within site
• Use of material with recycled content
Skill Upgradation cum Entrepreneurship
Development Program at MWCJ and MWCC
• 400+ have undergone placements out of 675
who completed training at MWCJ; 700 have
been placed out of 900 who completed training
at MWCC
• Further 500 trained under Teen Channel
program for high school dropouts at MWCC
Recognized as the 3rd largest contributor to the country’s
sustainable footprint by CII and IGBC (with a total of
16 mn sft of registered green building footprint)
Community Development through practices beyond CSR
activities
14
1
Mahindra Lifespaces: Well recognized and
awarded brand
Key awards
ISO certifications
Recognized as the
“Regional Sector
Recognized as one of
‘India’s Top 10
Leader” in the 2014
Global Real Estate
Sustainability
Benchmarking
(GRESB) Survey for
Asia/Diversified/Small
Cap companies
Builders’ by
Construction World and
Construction World
Interiors for the fifth
consecutive year in
2014
Mr. Arun Nanda,
received the lifetime
achievement award
at the CNBC Awaaz
Real Estate
Awards, 2014
Runner-up in the
Runner-up in the
Green Project of
Company of the
the year category at
Year category at
the Construction
Merit Award in
“Emerging Markets
– Most Improved in
Adoption of Best
Practices” category
the Construction
at APREA Best
Week Awards, 2014
Week Awards, 2014
Practices Awards,
2013
15
Key investment themes
1
7
Supportive
industry
fundamentals
6
Lineage of a well
respected Group
Industry
Leaders in
Corporate
Citizenship
Experienced
management
team
Consistent
Financial
Performance
Track Record
of Execution
2
Portfolio
Approach to
Business
Model
3
5
4
16
2
Balanced business model
Mid and Premium
Residential Business
Large Format Integrated
Business Cities
Affordable Housing Business
Three distinct business areas with presence in focused but diverse geographies within each business
17
2
Offerings across segments and geographies in
residential business
 Projects in the mid to premium residential segment, offering
reliable and value driven products to our customers
 Developments include standalone residential complexes and
gated communities comprising villas and apartments
 Selective expansion into adjacencies through projects in the
luxury segment and weekend homes category, with the
possibility of scaling up
 Focus on 6 cities based on market size and profitability
 MMR, NCR, Pune, Bangalore, Chennai and Hyderabad
 Focus on active corridors to ensure low volatility in
demand
Wide portfolio of products within the residential business
18
2
Customer centric practices in residential business
Differentiated customer centric practices at Mahindra Lifespaces
Design validation
Focus on delivery
− Consumer feedback, expert
speak, competition profiling
as key inputs to design
development
− Customer validation of design
at concept planning stage
Customer
Centric
Practices
Fair practice
− No “pre-sales” – no
residential units sold pending
relevant approvals
− Reciprocal penalty clauses for
delays
− Phased release of inventory
− Approved projects enable start
of construction at the time of
launch
− Growing use of technology and
modular components
− Third party inspection for quality
check prior to handover
Customer engagement and
transparency
− Portal: complaint redressal
system
− Monthly newsletters giving
project updates
Company to continue building the Mahindra brand in real estate with focus on customer centricity through transparency,
quality and on-time delivery
19
2
Successfully developing two large format
integrated business cities
 Developing two large format integrated business cities at
Chennai and Jaipur under public private partnership (PPP)
model
 Partnered with TIDCO (11% stake) for Chennai to facilitate the
development
 Partnered with RIICO for Jaipur who have provided land on
long-term lease and also invested alongside MLDL for a 26%
stake
 These sites covering 4,437* acres provide integrated
infrastructure for manufacturing and services set-ups under SEZ
and Domestic Tariff Areas (DTA) along with residential, retail and
social infrastructure to create a balance between Life, Living and
Livelihood
Currently operating two large format integrated business cities at Chennai and Jaipur
* Procured till date
20
2
Destination of choice for world class customers
Chennai
Jaipur
Marquee customers (60+ customers as of Mar -15)
Marquee customers (60+ customers as of Mar -15)
DTA
Auto Ancillary
SEZ
IT SEZ
Apparel
SEZ
DTA
Engg. SEZ
IT SEZ
Handicrafts
SEZ
Large format integrated business cities have well diversified and marquee customer base
21
2
New venture in the affordable housing space
 “Happinest” is a new initiative by Mahindra Lifespaces with the
intent of providing quality housing at affordable prices to the
emerging middle class in the country
 Product offerings in the sub Rs. 20 lakhs category, thereby
catering to a large underserved market
 The segment offers very high volume potential given the
demographics of Urban India
 Currently developing two pilot projects under this initiative –
Happinest Avadi and Happinest Boisar, with a combined
estimated saleable area of 1.23# mn sft
 Business model based on faster turnaround and scalability
across key markets
Mahindra Lifespaces can draw upon its experiences from the two pilot projects to build scale in this business
# Data represents estimated saleable/leaseable area
22
2
Unique approach towards Happinest
Financial Inclusion Partners
Design and Technology
Access to Housing Finance
 Facilitating housing finance for target

customers through tie-ups with
leading banks and housing finance
companies
Simplified processes for hassle free
documentation
Channel Strategy
 Collaboration with credible NGO

partners who assist target customers
with financial literacy and loan
sanction
Industrial outreach in catchment areas
to reach out to genuine end users
 Innovating to improve operational

efficiency – Faster construction, cost
effective, superior quality
Ensuring that both present needs
(optimizing usable area) and future
needs (such as low cost of
maintenance) of customers are met
Garnering Support
 Partnering with relevant trade bodies
and government agencies to share
feedback on learnings and gaps
 Collaborating with academic and
research institutes for alternate
materials, products and processes
that reduce cost of production
Holistic approach focusing on development of the ecosystem in alignment with the national priority of ‘Housing for all’
23
Key investment themes
1
7
Supportive
industry
fundamentals
6
Lineage of a well
respected Group
Industry
Leaders in
Corporate
Citizenship
Experienced
management
team
Consistent
Financial
Performance
Track Record
of Execution
2
Portfolio
Approach to
Business
Model
3
5
4
24
3
Track record of execution
Strong track record of execution
Large format integrated business cities – Chennai
Residential developments
Construction spend (US$m)
37
81
30
69
33
17
59
9
9
7
38
4
24
FY11
FY12
FY13
Sales value (US$m)
FY11
FY12
FY13
FY14
FY15
5
FY15
Area sold (acres)
Large format integrated business cities – Jaipur
72
 Strong focus on land to launch and launch to delivery
 Construction spend in residential segment has almost tripled in
the last 4 years
 Superior execution and delivery at both large format integrated
business cities have resulted in improving realizations
 IMS certification for ISO 9001, ISO 14001 and OHSAS 18001
for residential and world cities
FY14
9
74
52
49
12
59
17
14
13
5
FY11
FY12
FY13
Sales value (US$m)
FY14
FY15
Area sold (acres)
Mahindra Lifespaces has completed 8.92 mn sq ft* of residential and commercial development with an additional
5.98# mn sq ft under execution
* Does not include select projects that were completed by GESCO
Exchange rate conversion for convenience: 1US$ = 60 INR
# Data represents estimated saleable/leaseable area
25
3
City wise execution experience
Ongoing projects
Location
MMR
Pune
Nagpur
Project Name
The Serenes, Ph I
Happinest Boisar Ph I
Happinest Boisar Ph II
C
Happinest Boisar Ph II
D
Antheia Ph I
Antheia Ph II A5
Antheia Ph II B5
Antheia Ph II C5 6
Antheia Ph II D5
L'Artista #
Bloomdale IA
Bloomdale IB
Bloomdale IC
Bloomdale IIA
Bloomdale IIB
Bloomdale IIB – 2
Bloomdale IIC
Bloomdale IIIC-1
Sales Value
till date
(US$ mn)
Revenue
Recognised
till date
(US$ mn)3
42%
46%
4
8
24
-
21%
36%
1
-
79
34%
34%
1
-
512
132
88
88
178
16
210
98
22
84
140
70
28
12
98%
65%
10%
6%
6%
97%
98%
95%
94%
58%
27%
82%
50%
73%
42%
31%
32%
31%
68%
91%
84%
88%
61%
45%
46%
46%
31%
48
10
1
1
1
12
6
3
6
6
1
3
1
35
44
10
5
3
4
3
14
24
-
MLDL
Holding
mn sqm
mn sq ft
units
MLDL’s
share of
units
MLDL
MLDL
100%
100%
0.01
0.02
0.07
0.19
20
359
20
359
45%
84%
MLDL
100%
0.01
0.10
159
159
MLDL
100%
0.00
0.04
79
MLDL
MLDL
MLDL
MLDL
MLDL
MLDL
MBDL
MBDL
MBDL
MBDL
MBDL
MBDL
MBDL
MBDL
100%
100%
100%
100%
100%
100%
70%
70%
70%
70%
70%
70%
70%
70%
0.05
0.01
0.01
0.01
0.01
0.01
0.02
0.01
0.00
0.01
0.01
0.01
0.01
0.00
0.52
0.16
0.12
0.14
0.13
0.09
0.24
0.12
0.05
0.11
0.15
0.09
0.07
0.03
512
132
88
88
178
21
210
98
22
84
140
70
28
12
Company
Development Potential
% sold
%
(units)1 completion2
Note:
1 - Based on MLDL’s share of units
2 - Completion shown is on total project cost which is equal to land + construction related costs
3 - Revenue Recognition happens when 25% of construction related costs, 25% of sales by area and 10% of collections from customer is achieved
4 – The Serenes Ph 1, Antheia IIA, Bloomdale IIB-2 and Bloomdale IIC achieved revenue recognition in Q4 FY15
5 - Antheia Ph II subdivided into 4 phases
6 – Antheia Ph IIC has not been commercially launched.
# Joint Development
1US$ = 60 INR
26
3
City wise execution experience
Ongoing projects
Location
NCR
Hyderabad
Chennai
OVERALL
Project Name
Company
MLDL
Holding
units
MLDL’s
share of
units
Development Potential
mn sqm mn sq ft
Sales Value
%
% sold
till date
(units)1 completion
2
(US$ mn)
Revenue
Recognised
till date
(US$ mn)3
Aura IV
MLDL
100%
0.03
0.29
142
142
99%
83%
25
20
Aura V
MLDL
100%
0.03
0.36
150
150
77%
61%
25
15
Luminare I #
MHPL
50%
0.03
0.37
120
954
38%
24%
26
-
Ashvita I #
MLDL
100%
0.02
0.24
144
116
82%
74%
10
8
Ashvita II #
MLDL
100%
0.02
0.22
136
109
81%
64%
10
6
Ashvita III #
MLDL
100%
0.02
0.21
128
103
73%
54%
9
5
Ashvita IV #
MLDL
100%
0.02
0.21
128
103
61%
52%
7
4
Ashvita V #
MLDL
100%
0.02
0.21
128
103
41%
40%
6
2
Aqualily Apts C1
MRDL
96%
0.03
0.30
164
164
39%
62%
7
4
Aqualily Apts C2
MRDL
96%
0.01
0.16
84
84
4%
43%
0
-
Iris Court IIIB
MITL
96%
0.01
0.13
96
96
48%
61%
4
2
Nova I
MITL
96%
0.02
0.27
357
357
95%
74%
13
9
Nova II
MITL
96%
0.03
0.27
363
363
2%
9%
0
-
Happinest Avadi I
MLDL
100%
0.03
0.34
604
604
47%
65%
8
5
0.56
5.98
5044
4884
59%
-
264
149
Note:
1 - Based on MLDL’s share of units
2 - Completion shown is on total project cost which is equal to land + construction related costs
3 - Revenue Recognition happens when 25% of construction related costs, 25% of sales by area and 10% of collections from customer is achieved
4 – Change in MLDL’s share of units as JD partner’s inventory re-apportioned
# Joint Development
* Construction of Iris Court II and Iris Court IIIA completed during Q4 FY15. Please see annexures for more details.
1US$ = 60 INR
27
Forthcoming Projects and Land Bank
Category
Location
Name of the Project
MLDL
Holding
Est. Saleable
Area *
mn sq m mn sq ft
Forthcoming Projects
New Phases of Existing Projects
Pune
MMR
Chennai
NCR
Nagpur
TOTAL - New Phases of Existing Projects
Antheia - subsequent phases
The Serenes, Alibaug – subsequent phases
Happinest Boisar – subsequent phases
Aqualily - subsequent phases
Happinest Avadi – subsequent phases
Luminare – subsequent phases# **
Bloomdale - subsequent phases
100%
100%
100%
96%
100%
50%
70%
0.05
0.01
0.02
0.02
0.04
0.07
0.06
0.26
0.56
0.11
0.17
0.20
0.39
0.73
0.68
2.84
Andheri
Sakinaka#
Bannerghatta
100%
100%
50%
0.03
0.03
0.09
0.16
0.37
0.32
0.98
1.67
0.42
4.51
0.06
0.03
0.98
0.05
0.01
0.03
0.60
0.30
10.50
0.59
0.10
0.35
1.16
12.44
New Projects
Mid & Premium Residential
Mumbai
Bengaluru
TOTAL - New Projects
TOTAL Forthcoming
Land Bank
Nasik
Pune
Chennai
Mumbai
Satpur Project
Pimpri Commercial Project
MWC Chennai Residential
Thane Project
Kandivli Project
GE Gardens, Kanjurmarg#
TOTAL Land Bank
100%
100%
95%
100%
100%
100%
#Joint Development
*Represents total saleable area, including JDA partner’s share
** 3 units (0.01 mn sft) have already been sold in subsequent phase of Luminare
28
3
Realizations grow as projects progress
Growth of realization across select residential projects
Large format integrated
business cities
City
Chennai
NCR
Nagpur
Pune
Hyderabad
Project
Iris Court
Aura
Bloomdale
Antheia
Ashvita
Chennai
32
31
25
14
6,800
FY12
5,740
FY13
FY14
FY15
Jaipur
4,500
Sale price
(INR per
sq ft)
4,150
3,950
3,450
3,350
2,500
18
15
2,700
2,275
12
10
10
11
6
Dec-10 Dec-14
Feb-10 Nov-14
Nov-11 Dec-14
Oct-12 Nov-14
Nov-12 Mar-14
FY12
FY11
FY13 FY13FY14
FY12
FY15
Avg. price realization (INRm / acres)
Focusing on customer satisfaction through on-time delivery; price appreciation benefits both customers and the Company
29
Key investment themes
1
7
Supportive
industry
fundamentals
6
Lineage of a well
respected Group
Industry
Leaders in
Corporate
Citizenship
Experienced
management
team
Consistent
Financial
Performance
Track Record
of Execution
2
Portfolio
Approach to
Business
Model
3
5
4
30
4
Consistent financial performance…
Operating Income (US$m)
 Consistent performance
driven by
117
123
118
181
FY12
FY13
FY14
FY15
– Focus on execution
– Adding high quality land
inventory
– Stronger sales
momentum driven by
new launches
– Improving price
realization at MWC
EBITDA
44.68%
90
80
70
60
50
40
30
20
10
0
50.00%
37.38%
40.00%
31.36%
31.16%
30.00%
20.00%
10.00%
36
46
37
81
FY12
FY13
FY14
FY15
EBITDA (US$m)
 Improved operating margin
in FY13 with completion of
high margin residential
projects and contribution
from MWC
0.00%
% EBITDA margin
 Change in city and product
mix resulted in reduced
margins in FY14 vis-à-vis
FY13
 FY15 performance
includes impact of the
Byculla transaction
Witnessed consistent performance during last few years
Note: All numbers are based on consolidated accounts
Note: 1US$ = 60 INR
** PAT numbers are after minority interest
31
…has balanced leverage and low cost of debt
4
Net Debt* (US$m)
Net Debt (US$m)
 Net Debt / Equity is
currently less than 1.0
Net Debt/Equity
0.96
0.75
 Early repayment of
construction finance of
INR195cr (US$ 32.5m) in
Q1 FY15
0.55
0.31
60
118
202
184
FY12
FY13
FY14
FY15
 Cost effective funding
– Raised INR5bn
(US$83m) in Apr-13
through listed NCDs at
cost of 10.78% p.a.
Interest cost**
13.15%
12.27%
11.68%
11.45%
FY12
FY13
FY14
FY15
 Financial de-risking
through 50:50 joint venture
with Standard Chartered
PE to invest up to
INR10bn (US$167m) in
residential projects
Focusing on reducing interest cost through cost effective funding
Note: All numbers are based on consolidated accounts
Note: 1US$ = 60 INR
* Net Debt is calculated as Gross Debt less cash balance and current investments
** Based on external borrowings; excludes CCDs (Compulsory Convertible Debentures)
32
Key investment themes
1
7
Supportive
industry
fundamentals
6
Lineage of a well
respected Group
Industry
Leaders in
Corporate
Citizenship
Experienced
management
team
Consistent
Financial
Performance
Track Record
of Execution
2
Portfolio
Approach to
Business
Model
3
5
4
33
6
Experienced Board of Directors
Director since Brief profile – Key leadership roles
Arun K. Nanda
Chairman
Anita Arjundas
Managing Director
& CEO
Uday Phadke
Director
Education
Apr, 2001




Chairman of Mahindra Holidays & Resorts
Chairman Emeritus of the Indo-French Chamber of Commerce and Industry
Former Chairman of CII Western Region
Has been associated with the Group for last 40 years
Jun, 2009




Member of the Group Executive Board, Mahindra Group
Advisor, FICCI- Real Estate Committee
Consistently ranked amongst Fortune India’s 50 most powerful women in business (2011 – 2014)
Has been associated with the Group for last 12 years
Apr, 2001




Principal Advisor (Finance) at M&M
 Holds Bachelor's degree
Member of the SEBI Committee on Disclosures and Accounting Standards
in Commerce and Law
Former Chairman of the Direct Taxes Committee of the Bombay Chamber of Commerce and Industry
from Mumbai University,
Has been associated with the Group for last 40 years
FCA, FCS
Anil Harish
Independent
Director
Oct, 2004
Sanjeev Kapoor
Independent
Director
Oct, 2003
Shailesh
Haribhakti
Independent
Director
Jul, 2004
Dr. Prakash
Hebalkar
Independent
Director
Mar, 2009
 Partner of the Law firm M/s D M Harish & Co
 Former Executive Vice President of Society of Indian Law Firms (SILF)
 On the Advisory Board of Accommodation Times Institute of Real Estate Management and on the
Advisory Board of the magazine “Property Scape”
 Partner of the Chartered Accountant firm, S.K.Kapoor & Co
 On the Board of Mahindra World City Developers, Mahindra Residential Developers Limited, HLL Life
Care & HLL Infratech Services Limited
 Member of governing committees in Indian Merchants Chamber, CII and ASSOCHAM
 Former President of Indian Merchants Chamber, Institute of Internal Auditors (Bombay Chapter),
 Holds degree in Law
from the University of
Calcutta, FCA, FCS
 Holds MBA from BIM,
India and Wharton AMP
alumnus
 Holds Bachelor's degree
in Law from Mumbai
University and LLM from
USA
 Commerce graduate and
FCA
 FCA
Bombay Management Association, ICAI
 Served as international adviser on public policy to United Nations and WIPO
 Former President of Indo-American Chamber of Commerce (Western region)
 Served as member of Ministry of Finance Empowered Committee
 Holds doctorate in
Computer Science and
Economics from MIT,
USA
Individuals with diverse background across industries part of the Board of Directors
34
6
Matrix structure for management team
Managing Director & CEO
Anita Arjundas
Corporate
CFO
SVP - Legal & Company
Secretary
Suhas Kulkarni
Jayantt Manmadkar
Head – HR
Vice President – Sales
Lancelot Cutinha
Gaurav Jain
Head – Strategy & Investor
Relations
Large format integrated
business cities
Residential businesses
CEO - IC *
Business Head – South(Residential)**
Head – Projects
Happinest (Affordable
Housing) - Business Head
West - Business Head
Sriram S. Mahadevan
Rajendra Joshi
Bengaluru - VP Operations
North - Business Head and
Head- Business
Development
Eric Urs Hauptstein
Sangeeta Prasad
Vice President – Marketing
and Customer Relations
Smeeta Neogi
Deepak Porayath
COO – MWCJL
COO – MWCDL
Sanjay
Srivastava
S. Chandru
Ramesh Ranganathan
Siddharth Bafna
Matrix organization structure ensures strong specialist support while enabling better market understanding and localised
decision making
* IC : Integrated Cities and Industrial Clusters
** Cities of Chennai and Hyderabad
35
Key investment themes
1
7
Supportive
industry
fundamentals
6
Lineage of a well
respected Group
Industry
Leaders in
Corporate
Citizenship
Experienced
management
team
Consistent
Financial
Performance
Track Record
of Execution
2
Portfolio
Approach to
Business
Model
3
5
4
36
7
India Real Estate Sector: Upswing in the Offing
Long term story intact
 Real estate’s contribution to GDP expected to double from
c.6.3% in 2013 to c.13% in 2025. Completed space expected
to increase from 3.6 bnsq ft in 2013 to about 8.2 bnsq ft in
2025.
 Size of real estate market expected to grow 7 times from
$121 bn in 2013 to $853 bn in 2028.
 Subdued sentiment for sector prior to General Elections, 2014
due to 
Stagnant regulatory reforms

Alternate asset classes like equities turn attractive

Rising material, labour costs

Rising inflation, liquidity crunch and higher credit costs.
 Post election, push to real estate sector via –

Imminent Regulatory reforms – RE Regulation Bill, Land
Acquisition Bill reforms and REITS

Government push for Smart Cities, infrastructure and
affordable housing. Developers now targeting emerging
categories like affordable homes, second home market
and vacation homes, etc.

Latent demand to add impetus to RE growth.
Demand drivers for residential sector
Economic growth
leading to increase in
disposable income
Real estate
considered as
investment asset
Robust
fundamental
demand drivers
Robust industrial
growth
Increasing presence
of organised players
Easy and flexible
financing options
Tax savings on
mortgages
Demand drivers for Industrial/ commercial sector
Currently 16% of GDP;
expected to generate
100 mn additional jobs
by 2022
Has absorbed ~52% of
new office space which
came up since 2010.
Demand led by strong
growth in key consumer
industries
16% of the total office
space absorption in
India
Sources: CREDAI, Knight Frank, KPMG, NHB Housing Index
Large scale
urbanization
Forecast to grow at 13%
over the next five years
* BFSI: Banking, Financial Services and Insurance
37
Growth Strategy
38
Growth strategy for residential business
Maintain focus on
core segment;
selective entry in
adjacent segments
Specific growth
plan for identified
markets
Strengthening and
leveraging the
Mahindra brand
 Continue catering to the mid and premium segment with products in ticket sizes of Rs. 40 lakhs
to Rs. 1.5 crore (Except Mumbai, which is at ~2.5x)
 Expand product portfolio through offerings in select niche areas such as luxury housing,
weekend homes etc
 Deepen presence in high potential markets of Mumbai, Pune and Bangalore
 Selective expansion in NCR and Hyderabad
 Accelerating development of residential footprint in MWC Chennai and initiating residential
development in MWC Jaipur
 Focus on live corridors v/s speculative corridors to ensure low volatility in demand
 Ensuring a differentiated customer experience with emphasis on quality, transparency and
timeliness for deriving a premium in the market
 Focused effort on increasing sales throughput by expanding sales outreach and strengthening
our brand profile and awareness
 Gain capital efficiency with a mix of funding structures through being a preferred partner for land
owners as well as investors
39
Growth strategy for large format integrated
business cities
Accelerating and
enhancing value
creation from
existing projects
 Enable sale of remaining industrial land at MWCC by securing pending approvals
 Aligning product mix (land use) at MWCJ with current demand, increasing the DTA area and
having a multi-product SEZ
Expand footprint to
new destinations
and formats
 Expand into upcoming industrial destinations by targeting pre-aggregated land in states with
clear and friendly industrial policies
 Diversify the portfolio through smaller industrial parks with value added support facilities to
enable faster turnaround
 Developing a large integrated MWC in the west of India
Growth Levers for
the business
 Leverage our brand and expertise by partnering with strategic and financial investors as
relevant
 Capitalize on new initiatives and priorities of the Government such as “Make in India”,
development of industrial corridors, Smart Cities etc.
40
Glossary
Classification of projects is as under:
a. Completed: projects where construction has been completed
and completion certificates have been granted by the relevant
authorities
b. Ongoing: projects where (i) all title or development rights, or
other interest in the land is held either directly or indirectly by
the Company/subsidiaries of the Company/joint ventures of the
Company/consolidated partnership firms of the Company; (ii) if
required, all land for the project has been converted for the
intended use; (iii) the requisite approvals for commencement of
construction have been obtained; and (iv) the construction of
structures in the project is ongoing
c. Forthcoming: projects in respect of which (i) all title or
development rights or other interest in the land is held either
directly or indirectly by the Company/subsidiaries of the
Company/joint ventures of the Company/consolidated
partnership firms of the Company; (ii) if required, applications
have been made for conversion of use for the land for the
intended use; (iii) preliminary management development plans
are in place; and (iv) architects have been identified and have
commenced work
d. Land inventory: land in which any of the
Company/subsidiaries of the Company/joint ventures of the
Company/consolidated partnership firms of the Company hold
interest, but on which there is no planned development as of
the date hereof
CII
DTA
Confederation of Indian Industry
Domestic Tariff Area
IGBC
Indian Green Building Council
M&M
Mahindra & Mahindra Limited
MBDL
Mahindra Bebanco Developers Limited
MITL
Mahindra Integrated Township Limited
MLDL
Mahindra Lifespace Developers Limited
MRDL
Mahindra Residential Developers Limited
MWC
Mahindra World City
MWCC
Mahindra World City, Chennai
MWCJ
Mahindra World City, Jaipur
NCR
RIICO
SEZ
TIDCO
National Capital Region
Rajasthan State Industrial Development &
Investment Corporation Ltd
Special Economic Zone
Tamil Nadu Industrial Development Corporation Ltd
41
Appendices
42
Recent developments
Affordable
Housing
Residential
Provision
Real Estate
Regulation and
Development
Bill, 2013
Budget 201415
Analysis
Impact on Mahindra Lifespaces
 Registration with Real Estate Regulatory
Authority prior to sale
 Better oversight and coverage of all
developers by the regulator
 Improved recourse measures for customer
grievances
 No material impact – Company will abide by the
registration process as laid out by the regulators
 Separate bank accounts for every project in
which 50% of the proceeds need to be
maintained
 New projects cannot be financed from
existing projects’ cash flows
 Project cash flows cannot be used to
service debt
 Will impact surplus cash availability
 Project level equity investments can help reduce
the impact
 Project Launch and Sales possible only post
receipt of all necessary permits
 Investors looking to buy the project in initial
stages may be impacted
 No impact – Company does not launch a project
 Developers seeking to raise funds
until all relevant permits are obtained
immediately post land purchase will not be
able to do so
 Emphasis on Affordable Housing
 Allotment of Rs. 4000 cr to NHB to provide
cheaper credit to low income group
segment. Positive for those players who
have offering in the below 40 lakhs
segment
 MLDL during the quarter has launched ‘Happinest’affordable houses. The announcement in the
budget is aligned to the broader strategy of our
company to have products across price points.
Extremely positive for MLDL
Recent developments such as impetus to affordable housing, manufacturing through “Make in India”, smart cities etc. align
well with the business model of Mahindra Lifespaces
43
Completed Projects
Area
(mn sqm)
Area
(mn sq ft)
0.05
0.57
Splendour
0.07
0.78
Mahindra Park
0.02
0.19
Mahindra Heights
0.01
0.06
Mahindra Gardens
0.03
Great Eastern Links
Area
(mn sqm)
Area
(mn sq ft)
Royale
0.06
0.63
The Woods
0.05
0.53
Great Eastern Plaza
0.01
0.15
0.36
Retreat
0.00
0.04
0.03
0.35
Nest
0.01
0.09
Great Eastern Gardens
0.05
0.49
Le Mirage
0.01
0.12
Fairwinds
0.00
0.01
Aura I
0.02
0.27
Iris Court I
0.03
0.27
Aura II
0.02
0.23
Iris Court II
0.03
0.30
Aura III
0.02
0.21
Iris Court IIIA
0.02
0.16
Sylvan County
0.50
Chloris
0.04
0.39
0.05
Aqualily Villas
0.04
0.46
Central Park
0.11
1.17
Aqualily Apartments A
0.01
0.14
Great Eastern Plaza
0.01
0.07
Aqualily Apartments B
0.03
0.32
Great Eastern Centre
0.00
0.05
Location
Name of the Project
Mumbai
Eminente
Chennai
Location
Pune
NCR
Name of the Project
Total Development : 0.83 mn sqm (8.92 mn sq ft)
44
Unsold inventory in completed projects
Location
Chennai
OVERALL
Project Name
Aqualily Villas C
Aqualily Villas D
Aqualily Apts A
Aqualily Apts B
Iris Court II
Iris Court III A
Company
MRDL
MRDL
MRDL
MRDL
MITL
MITL
MLDL
Holding
96%
96%
96%
96%
96%
96%
units
MLDL’s
share of
units
Development Potential
mn sqm mn sq ft
Revenue
Sales Value
%
% sold
Recognised
till date
(units)1 completion
till date
2
(US$ mn)
(US$ mn)3
0.01
0.01
0.01
0.03
0.03
0.02
0.11
0.12
0.14
0.32
0.30
0.16
40
37
80
178
229
133
40
37
80
178
229
133
95%
76%
99%
89%
98%
97%
100%
100%
100%
100%
100%
100%
9
8
8
16
15
9
9
8
8
16
15
9
0.11
1.15
697
697
94%
-
65
65
Notes:
1. Completion shown is on total project cost which is equal to land + construction related costs
2. Revenue Recognition happens when 25% of construction related costs, 25% of sales by area and 10 % of collections from customer is achieved
3. Based on MLDL’s share of units
45
Disclaimer
This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase
or sell any securities.
This presentation should not be considered as a recommendation that any investor should subscribe for or purchase any securities of Mahindra
Lifespaces Developers Limited or its subsidiaries (together, the “Company”) and should not be used as a basis for any investment decision.
The information contained in this presentation is only current as of its date and has not been independently verified. No express or implied
representation or warranty is made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information
presented or contained in this presentation.
None of the Company or any of its affiliates, advisers or representatives accepts any liability whatsoever for any loss howsoever arising from any
information presented or contained in this presentation. Furthermore, no person is authorized to give any information or make any representation
which is not contained in, or is inconsistent with, this presentation. Any such extraneous or inconsistent information or representation, if given or
made, should not be relied upon as having been authorized by or on behalf of the Company.
The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any person of
such revision or
changes. These materials are confidential, are being given solely for your information and for your use, and may not be copied, reproduced or
redistributed to any other person in any manner. The distribution of this presentation in certain jurisdictions may be restricted by law. Accordingly,
any persons in possession of this presentation should Inform themselves about and observe any such restrictions.
This presentation contain certain statements of future expectations and other forward-looking statements, including those relating to our general
business plans and strategy, our future financial condition and growth prospects, and future developments in our sector and our competitive and
regulatory environment. In addition to statements which are forward looking by reason of context, the words ‘anticipates’, ‘believes’, ‘estimates’,
‘may’, ‘expects’, ‘plans’, ‘intends’, ‘predicts’, or ‘continue’ and similar expressions identify forward looking statements. All forward looking
statements are subject to risks, uncertainties and assumptions that could cause actual results, performances or events to differ materially from the
results contemplated by the relevant forward looking statement.
The information contained herein does not constitute an offer of securities for sale in the United States or in any other jurisdiction. Securities may
not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as
amended.
46
Thank You
Mahindra Lifespace Developers Limited
CIN L45200MH1999PLC118949
th
5 Floor, Mahindra Towers, Worli, Mumbai - 400 018| Tel:
022 6747 8600/ 6747 8601| Fax: 022 2497 5084
Website: www.mahindralifespaces.com
47