SUNTECKNSE9 August 2023

Sunteck Realty Limited has informed the Exchange about Investor Presentation

Sunteck Realty Limited

Sunteck Realty Ltd.

Date: 9th August, 2023

SRL/SE/ 26 /23-24

National Stock Exchange of India Ltd Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai- 400 051 Symbol: SUNTECK

BSE Limited Phiroze Jeejeebhoy Tower, Dalal Street, Mumbai – 400 001 Scrip Code: 512179

Sub: Investor Presentation on Q1 FY24 results

Dear Sir / Madam,

Pursuant to Regulation 30(6) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, please find enclosed the Investor Presentation with regard to unaudited Financial Results for quarter ended 30th June, 2023.

The Investor Presentation shall also be placed on the Company’s website.

Kindly take the same on record and disseminate to all the concerned.

Thanking You.

For Sunteck Realty Limited

Rachana Hingarajia Company Secretary Encl: a/a

5th Floor, Sunteck Centre, 37-40 Subhash Road, Vile Parle (East), Mumbai 400057. Tel: +91 22 4287 7800 Fax: +91 22 4287 7890

Website: www.sunteckindia.com CIN: L32100MH1981PLC025346 Email Id: cosec@sunteckindia.com

Sunteck Realty Limited

Investor Presentation

Q1 FY24

NSE: SUNTECK | BSE: 512179 | Bloomberg: SRIN: IN | Reuters: SUNT.NS / SUNT.BO

Disclaimer

By attending the meeting where this presentation is made and any additional material is provided (“Presentation”) or by reading the Presentation, you (“Recipient”), agree to be bound by the following limitations. This Presentation has been prepared on the basis of the estimates of the management of Sunteck Realty Limited (the "Company“ or “Sunteck”), for the sole and exclusive purpose of providing information to the Recipient about the Company and its business, and is not and should be construed to be, directly or indirectly, an offer and / or an invitation and / or a recommendation and / or a solicitation of an offer to buy or sell any securities of the Company in any jurisdiction, nor shall part, or all, of this Presentation form the basis of, or be relied on in connection with, any contract or binding commitment or investment decision in relation to any securities of the Company. No offering of securities of the Company will be made except by means of an offering document containing detailed information about the Company. Securities may not be offered or sold in the United States unless they are registered or exempt from registration requirements under the U.S. Securities Act of 1933, as amended. There will be no offer of securities in the United States.

The distribution of this Presentation in certain jurisdictions may be restricted by law and persons into whose possession this Presentation comes should inform themselves about and observe any such restrictions. This Presentation is strictly confidential and may not be copied, published, distributed or transmitted to any person, in whole or in part, by any medium or in any form for any purpose without the prior written consent of the Company. The information in this Presentation is being provided by the Company solely for the purposes set out herein and is subject to change without notice. Further, this Presentation does not purport to be all-inclusive or necessarily include all the information that the Recipient desires in its evaluation of the Company. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.

The audited consolidated financial statements for Fiscals 2016 onwards have been prepared in accordance with Ind AS and the same for prior years have been prepared in accordance with Indian GAAP. This Presentation contains statements which may pertain to future events and expectations and therefore may constitute forward-looking statements. Any statement in this Presentation that is not a statement of historical fact shall be deemed to be a forward- looking statement, and the Recipient agrees that such statements may entail known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that the results and events contemplated by the forward-looking statements contained herein will in fact occur. None of the future projections, expectations, estimates or prospects in this Presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the Presentation. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

The Recipient acknowledges that it shall be solely responsible for its own assessment of the market and the market position of the Company and that it shall conduct its own analysis and be solely responsible for forming its own view of the potential future performance of the business of the Company. The information contained in this Presentation is as of June 30, 2023 except as may be stated otherwise. Neither the delivery of this Presentation nor any further discussions of the Company with any of the Recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date. The Company is not under any obligation to update the contents of this Presentation or inform Recipient of any changes in the affairs of the Company. The Company hereby expressly disclaims liability for any errors, inaccuracies, or omissions, and representations and warranties – express or implied, as provided within or in connection with this Presentation. Any clarifications, queries or future communication regarding the matters stated in this Presentation should be addressed to the Company directly. The information given in this Presentation in the form of pictures, artistic renders, areas, consideration, project details etc. should not be construed to be or constitute advertisements, solicitations, marketing, offer for sale, invitation to offer or invitation to acquire.The intention of this Presentation is not to sell or market the unit/s of any of the projects of the Company and is limited to only providing information to Recipient of the Presentation. Note The project elevations are for representation purposes only and are the sole property of the Company and may not be reproduced, copied, projected, edited in any way without written permission from the Company. All data and project related numbers are basis revenue recognition and operational performance excl. overheads for completed, ongoing and future projects respectively.

Quarterly Results Pre-sales, collections, margins & D/E on strong track

> Pre-sales grew by 16% YoY to ~Rs 387 cr

> Collections remained strong at ~Rs 288 cr

> Operating Cash Flow Surplus yielding ~22% on Networth

> Core EBITDA margin in P&L stands at ~43%

> Net Debt stands at strong level at ~Rs 264 cr

> Net Debt / Equity has remained negligible as ever at ~0.09x

> The already-launched 5 growth engines are firing all cylinders – Sunteck Sky Park, Mira Road launch

has been one of the fastest monetization - just ~6 months!

> Gearing up to launch project at Kalyan in the coming months

> Uber-luxury project coming up at Nepean sea road

Rs 1 cr = Rs 10 mn

Key Highlights (FY18 - FY23) Pre-sales growth targeted @ 20%-30% year-on-year

Compounded growth in Pre-sales and Collections

Rs 2000 cr

Rs 1500 cr

Rs 1000 cr

Rs 500 cr

Rs 0 cr

Rs 1602 cr

Rs 1022 cr

Rs 588 cr

Rs 1250 cr

Rs 780 cr

Rs 531 cr

Pre-sales

Collections

FY18

FY21

FY23

Rs 1 cr = Rs 10 mn

Operational Performance Trend Q1 FY24 numbers on solid footing

> Pre-sales in Q1 FY24 were focused on the new launch at Sunteck Sky Park, Mira Road as well as activations from

other upper mid-income projects

> Collections were robust and broad-based in Q1 FY24 with all segments performing well in the quarter

Segment

Projects

Pre-sales (~Rs cr)

Collections (~Rs cr)

Uber Luxury

Signature, Signia

Upper Mid-income

Sunteck City, SBR, Sky Park

Lower Mid-Income

Sunteck World

Others

Total

Rs 1 cr = Rs 10 mn

Sunteck

301

387

112

288

Operational Performance Trend Quarter-wise growth on strong footing

Pre-sales (~Rs cr)

Collections (~Rs cr)

537

503

396

349

352

371

600

500

400

300

200

100

387

333

337

272

200

176

101

285

288

331

304

270

253

404

321

330

207

141

172

450

400

350

300

250

200

150

100

FY21

FY22

FY23

FY24

FY21

FY22

FY23

FY24

Rs 1 cr = Rs 10 mn

Strong OCF surplus coming through OCF Surplus Yield @~22%

OCF Surplus (~Rs cr)

OCF Surplus Yield

428

25.00%

22.00%

281

239

14.50%

12.21%

20.00%

15.00%

10.00%

5.00%

0.00%

450

400

350

300

250

200

150

100

FY21

FY22

FY23

FY21

FY22

FY23

#As the company follows Project Completion Method of Accounting, OCF Surplus Yield (OCF Surplus / Adjusted Networth) is considered

Rs 1 cr = Rs 10 mn

Strong OCF crosses Rs 1,000 cr in 3.25 years Q1 FY24 OCF Surplus stands @ ~Rs 76 cr

Particulars

Q1 FY24

Q1 FY23

FY 2023

~Rs cr

Cumulative OCF Surplus (~Rs cr)

Gross Customer Collections

Less: Project Expenses

Less: JDA Revenue Share

Less: Other Expenses

Net Operating Cash Flow Surplus

Amount spent on LO/JDA Cost

NOCF Surplus post capex

288

145

285

150

1200

1000

800

600

400

200

1,250

590

101

132

428

166

262

1024

948

520

281

FY21

FY22

FY23

Q1 FY24

Rs 1 cr = Rs 10 mn

Disciplined Return on Invested Capital on leased assets Case Study - Sunteck BKC 51 RoIC stands @ ~30%

> In FY23, SRL expanded its rental portfolio by signing a 29-year its commercial project Sunteck BKC 51 at BKC lease at Junction for an average rental of ~Rs 66 cr per year during the lease tenure.

> Sunteck share in the average rental at ~Rs 36 cr per year.

> This has yielded the company average RoIC of ~30% on an

investment of ~Rs 125 cr.

> This has led to the creation of ~Rs 525 cr of capital value in

addition to the residential pre-sales.

> Similar strategy to be adopted for Sunteck Icon at BKC

Junction.

Rs 1 cr = Rs 10 mn

Artistic Impression

Strong acquisition over the last 5 years - ~38.5 mn sq ft acquired since 2018

Projects with major capital allocation

Strong Balance Sheet Net Debt to Equity @ 0.09x Sunteck’s Long-Term Credit Rating is AA- with Positive Outlook from FITCH & CARE

Particulars (~Rs cr)

Total Debt

Less: Cash & Bank Balance

Less: Loans to JDA partners

Net Debt

Net Worth

Net Debt / Equity

Quasi-Equity and Others*

Adjusted Net Debt

Adj. Net Debt / Equity

Rs 1 cr = Rs 10 mn

As on 30th June, 23# 505

As on 31st Mar, 23 593

155

264

2,781

0.09x

352

0.13x

158

155

280

2,788

0.10x

373

0.13x

2.00x

1.80x

1.60x

1.40x

1.20x

1.00x

0.80x

0.60x

0.40x

0.20x

0.00x

> ~38.5 mn sq ft of projects acquired since

2018

> Of which, ~25.5 mn sq ft has been acquired since the onset of COVID-19 pandemic

1.04x

0.89x

0.74x

0.58x

0.75x

0.70x

0.51x

0.17x 0.17x

0.22x

0.17x 0.19x

0.10x 0.09x

1 1 Y F

2 1 Y F

3 1 Y F

4 1 Y F

5 1 Y F

6 1 Y F

7 1 Y F

8 1 Y F

9 1 Y F

0 2 Y F

1 2 Y F

2 2 Y F

3 2 Y F

4 2 Y F 1 Q

*With effect from 9th March, 2020, Starlight Systems (I) LLP became a wholly owned subsidiary of SRL pursuant to the retirement of PDL Realty Private Limited (Retired Partner). The Retired Partner’s balance of current capital and fixed capital in the SSILLP, aggregating to ~910 mn have been converted into a loan. The said loan will be in the form of 1% secured Non-Convertible Debentures (NCDs), which will be redeemed at premium out of the future free cash flow from the specified projects only with a tenure of 20 years. #30th June, 23 is Provisional.

Core EBITDA Margin in P&L strong @ 43%

> SRL follows Project Completion Method of Accounting – Direct (Attributable) Costs pertains to projects from

which revenue has been recognized in respective quarter

> Indirect (Non-attributable) Costs pertains to expenses from which revenue recognition has not started, but

booked in P&L as per accounting standards

Particulars (~Rs cr)

Revenue

Less: Direct Costs

- Operating Expenses

- Overheads

Core EBITDA

Q1 FY24

Q4 FY23

Q1 FY23

144

FY 2023

362

153

163

- Core EBITDA Margin

42.9% 42.6% 47.0%

45.1%

Add: Other Income

Less: Indirect Costs

Less: Finance Costs

PBT

Less: Taxes

Reported PAT

-9

-3

-7

-34

-6

-28

101

1.4

Core EBITDA Margin

50.00%

45.00%

42.90%

42.57%

47.05%

45.09%

40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%

Rs 1 cr = Rs 10 mn

Q1FY24

Q4FY23

Q1FY23

FY23

Sunteck’s Intrinsic Value

> Sunteck’s intrinsic value is not a precise number. Different people analyzing Sunteck would come up with various valuations. We are providing you broad GDV dataset - we would like if our roles were reversed.

> We believe the intrinsic value of Sunteck is a function of expected cashflows and value from existing deals and execution so far (1st component), plus all the deals and execution to be done in the future (2nd component) – discounted to present value at a reasonable interest rate.

> We are presenting here the salient data to help you figure out the 1st component of intrinsic value. This same data can help you understand about Sunteck’s DNA to help you figure out the 2nd component of intrinsic value.

Rs 1 cr = Rs 10 mn

7 Growth Engines to fire up pre-sales growth by FY25E Sunteck has achieved a pre-sales growth of ~25% between FY21 and FY23

GDV – Gross Development Value excluding cash flows from completed & ongoing launched projects/phases

GDV – ~Rs 303 bn

Rs 1 bn = Rs 100 cr

GDV – ~Rs 125 bn

GDV – ~Rs 188 bn

**Launched Towards The End of Q4 FY23 (End of March 2023)

**Sunteck Sky Park, Mira Road

Sunteck Beach Residences, Vasai West

GDV – ~Rs 278 bn

Sunteck Kalyan

Sunteck Sky Park, Mira Road

Sunteck Beach Residences, Vasai West

Nepean Sea Road

Sunteck Kalyan

Sunteck Sky Park, Mira Road

Sunteck Beach Residences, Vasai West

Sunteck World, Naigaon

Sunteck City, ODC, Goregaon West

Signature & Signia, BKC

FY2022 Pre-sales: ~Rs 1,303 cr

FY2023 Pre-sales: ~Rs 1,602 cr

FY2024E ~6 Growth Engines

FY2025E ~7 Growth Engines

Sunteck’s Intrinsic Value – 7 Growth Engines + Annuity Income

1st Component:

S. No.

Projects

Location

Gross Development Value*

Rs 1 cr = Rs 10 mn

Nepean Sea Road

Sunteck Kalyan

Sunteck Sky Park

Sunteck Beach Residences

Sunteck World

Sunteck City

Signature, Signia

South Mumbai

Kalyan

Mira Road

Vasai West

Naigaon

ODC, Goregaon West

BKC

(~ Rs crores)

2,500

9,000

2,300

4,000

5,000

6,000

1,500

30,300

*GDV – Gross Development Value excluding cash flows from completed & ongoing launched projects/phases

Commercial Projects

Sunteck BKC 51, BKC Jn.#

Sunteck Icon, BKC Jn.

Total

Rental Income

~Rs 36 cr**

similar rental (to be rented)

~ Rs 49 cr

Capital Value

~Rs 525 cr

~ Rs 1,050 cr

**average annual rental during the tenure of lease #pre-leased

Sunteck’s Intrinsic Value – Future Opportunities

2nd Component:

> Selling prices are likely to rise over the next few years, leading to higher margins than illustrated in the

1st component estimates.

> The estimation excludes upside from other large possible projects already acquired but not

considered in the calculations such as, Borivali West, Sion, Jaipur and so on.

> It also excludes upside from all future JDAs that may be executed.

Key Takeaways

> Luxury Developments across various micro-markets of MMR.

> Strong visibility of cash flows from 7 growth engines and other acquired projects over the next 7-8 years.

> JDA approach of acquisition ensures capital at risk is always negligible & limited and are funded largely via

internal accruals and negligible debt.

> Outright purchases on opportunistic basis based on significant margin cushion.

> Leverage pre-sales to fund construction and rely on very little borrowings.

> Ability to execute continues to be rooted in its exceptional people as well as the unique in-house construction

model that is not beholden to working capital constraints at outsourced contracting firms.

> All the above has made our business model generate asymmetric risk-reward.

ESG Highlights for FY 2022-23

>90%

31% Women Representation in organization

Of our properties are green building pre- certified (EDGE IFC)

Sunteck Head office is LEED Existing building Gold certified

4.3 times

Increase in employee trainings hours

Zero Waste to landfill & Plastic neutrality at Signature Island, Signia Isles, BKC

32%

ISO

Recycled materials used for construction

9001:2015, 14001:2015 & 45001:2018 Certified

Sustainability Awards

MMR Focused Luxury Developer

By Project Brands

By Location Volume

Our Brands Premium positioning by creating different luxury brands across all the segments

Thank you

ir@sunteckindia.com

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