SHRIRAMPPSNSE15 February 2022

Shriram Properties Limited has informed the Exchange about Investor Presentation

Shriram Properties Limited

~ Shriram

"1 Propert1es Homes that live in you

15th February 2022

National Stock Exchange of India Limited The Listing Department Exchange Plaza, 5th Floor Plot C 1 - G Block Bandra-Kurla Complex, Bandra ( E) Mumbai 400 051 Scrip Code: SHRIRAMPPS

BSE Limited

Dept of Corporate Services

Phiroze Jeejeebhoy Towers

Dalal Street, Fort

Mumbai 400 001

Scrip Code : 543419

Dear Sirs

Sub: Submission of Investors Presentation to be made to Analyst/ Investors

With further reference to our letter dated 12th February 2022 and pursuant to Regulation 30 read

with Schedule Ill Part A Para A of SEBI (Listing Obligations and Disclosure Requirements) Regulations,

2015, please find attached the presentation to be made to the Analyst/ Investors on the operational update and results for the quarter ended 31st December 2021

We request you to take the above information on record.

Thanking you.

Regards

For SHRIRAM PROPERTIES LIMITED

2) g~

D. SRINIVASAN

COMPANY SECRETARY

FCS 5550

Shriram Properties Limited "Shriram House", No.31, Old No.192, 2nd Main Road, T Chowdaiah Road, Sadashivanagar, Bengaluru - 560080 T +91-80-40229999 IF +91-80-41236222 I Web: www.shriramproperties.com Registered Office: Lakshmi Neela Rite Choice Chamber, New No.9, Bazullah Road, T. Nager Chennai - 600 017

GST No: 29AAFCS5801D1ZI CIN No: 1?1n2eoftq~O00PLC044So0"- L72200TN2000PLC044560

Shriram Properties Limited On a high growth trajectory

Investor Presentation – Q3 FY22

15 February 2022

STRICTLY PRIVATE AND CONFIDENTIAL

Index

• SPL Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• Operational Highlights – Q3 | 9M FY22 . . . . . . . . . . . . . . .

• Financial Highlights – Q3 | 9M FY22 . . . . . . . . . . . . . . . . . .

• Growth Outlook : RE Sector and SPL . . . . . . . . . . . . . . . . . .

•

Investment Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disclaimer Certain statements in this document may be “forward looking statements”, within the meaning of applicable laws and regulations. Such forward-looking statements are subject to certain risks and uncertainties and important developments that could affect the Company's operations include changes in industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labor relations, among other things. These could cause actual results to differ substantially or materially from those contemplated, expressed or implied by the relevant forward-looking statements. Shriram Properties Limited will not be in any way responsible for action taken based on such statements and undertakes no obligation to publicy update these forward-looking statements to reflect subsequent event or circumstances.

Budget Housing Project of the year – Shriram South East

Property Awards of the Year Plotted Development Shriram Earth

Best Gated Community of the year – Shriram Shankari

Visionary Leader of the year (1)

Integrated Township Project of the year – Shriram Grand City

Best Efficient & Sustainable Smart Real Estate Project Shriram Greenfield

MD of the Year Real Estate Sector9

Most Admired Upcoming Project of the Year Shriram Suvilas11

Developer of the Year

Lifetime Achievement Award For Outstanding Contribution To Real Estate Sector10

SPL OVERVIEW

Brand Leadership Award1

Affordable Housing – Brand of the Year2

Developer of the Year3

Best Builder Residential Projects in Karnataka4

Innovative Real Estate Campaign of the Year5

Most Admired Upcoming Project of the Year6

Outstanding Project of the Year for Shriram Greenfield

Innovative Real Estate Marketing Campaign of the Year for Shriram Greenfield

Innovative Real Estate Marketing Campaign Of The Year8

MD of the Year13

SPL : An Introduction

Top 5 players in core markets

c.90% of portfolio2 in

About Us

Part of the well known Shriram Group

c.35% of post IPO capital held by globally renowned PEs

Among the Top 5 in South India1

c.17 msf over 29 projects

c.47 msf3 over 35 projects

Affordable housing and Mid Market housing segment

c.21 msf

Project

Overview

Completed projects, including of c.16% of commercial office space and luxury housing categories

Project Pipeline4

Land reserves of 197 acres with a development potential of 21 msf5

Apart from Project Pipeline

Focus on asset light model

Established DM Model

0.30x (31 Dec’21)

Business Model and Financial Resources

Asset light since inception

c.32% of pipeline projects3 in DM

87% of completed projects2 in JV / JDA / DM business models

Low Net Debt / Equity6

____________________________________________________ Note: 1. As per JLL Report, in terms of number of aggregate units launched in the calendar years 2015 to 2020. 2. Of the total saleable area, as of Dec 31, 2021. 3.Of estimated saleable area. 4. Ongoing, under development and forthcoming projects. 5. In addition, the Company also entered into an agreement for an additional 73 acres in Kolkata, West Bengal. 6. IPO proceeds used for debt reduction in Jan’22

Scaled up operating platform, poised to deliver strong results

Shriram Properties (‘SPL’): The Journey so far…

•

Creation of credible residential real estate growth platform, over the last 2 decades

–

Among the Top-5 players in core markets of Bangalore, Chennai and Kolkata

Focused Mid-Market & Affordable housing player (84% of completed projects; 86% of Project Pipeline)

Established leader in the Southern regional markets (91% of completed projects; 78% of Project Pipeline)

Creation of a strong sales and execution platform – key success driver in the consolidating industry environment

Improving scale and efficiency; Margins poised to grow

–

FY22 likely to be a turnaround year; Q3 earnings and Q4 visibility provide comfort

Built a strong development pipeline, while remaining focused on being “Asset Light”.

Pioneered the Development Management (DM) model in the South; Accounts for 32% of the project pipeline today

Sales Volume (msf) CAGR 23%

3.5

3.2

Sales Value (Rs. mn) CAGR 27%

14,318

3.0

11,726

12,443

11,486

Collections (Rs. Mn)

CAGR 17%

Adj. EBITDA (Rs. Mn)

CAGR 18%

10,326

8,777

8,309

1,190

1,211

1,025

2.4

1.3

4,718

4,393

4,624

716

649

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

Impressive ramp, in consolidating industry environment post RERA

_____________________________________ * Under the Ind-AS, equity shares held by our PE Investors were considered as a compound financial instrument and hence were treated as deemed debt and hence coupon as deemed interest cost. The

impact was non-cash charge on EBITDA and hence have been adjusted / added to EBITDA to arrive at adjusted EBITDA. See page 54 of RHP

Budget Housing Project of the year – Shriram South East

Property Awards of the Year Plotted Development Shriram Earth

Best Gated Community of the year – Shriram Shankari

Visionary Leader of the year (1)

Integrated Township Project of the year – Shriram Grand City

Best Efficient & Sustainable Smart Real Estate Project Shriram Greenfield

MD of the Year Real Estate Sector9

Most Admired Upcoming Project of the Year Shriram Suvilas11

Developer of the Year

Lifetime Achievement Award For Outstanding Contribution To Real Estate Sector10

OPERATIONAL HIGHLIGHTS Q3 | 9M FY22

Brand Leadership Award1

Affordable Housing – Brand of the Year2

Developer of the Year3

Best Builder Residential Projects in Karnataka4

Innovative Real Estate Campaign of the Year5

Most Admired Upcoming Project of the Year6

Outstanding Project of the Year for Shriram Greenfield

Innovative Real Estate Marketing Campaign of the Year for Shriram Greenfield

Innovative Real Estate Marketing Campaign Of The Year8

MD of the Year13

KPI Snapshot : Q3 | 9M FY22

Pre-Sales Volume (msf)

Sales Value (INR mn)

56%

3.0

2.6

1.7

1.0

60%

10,033

12,443

6,272

4,107

4,159

Q3 FY21

Q3 FY22

9M FY21

9M FY22

FY21

Q3 FY21

Q3 FY22

9M FY21

9M FY22

FY21

Collections (INR mn)

29%

64%

8,436

8,309

Construction (INR mn)

94%

158%

4,228

5,142

2,505

3,140

2,438

1,371

1,637

706

Q3 FY21

Q3 FY22

9M FY21

9M FY22

FY21

Q3 FY21

Q3 FY22

9M FY21

9M FY22

FY21

Strong growth momentum, despite Covid led interruptions

Operational Highlights (KPIs): Q3 | 9M FY22

Sales volume (msf)

• 9M FY22 Net sales of 2.6 msf - despite Covid 2.0 led lockdown for 50+ days during Q1FY22

1.6

0.7

1.0 1.0

3.0

2.6

1.7

- Average run rate of 1.0+ msf net sales in Q2 & Q3

- Supported by 8 good launches (4 in Bangalore, 3 in Chennai & 1 in Kolkata)

• 9M FY22 Collections: Encouraging Trend; SPL’s highest ever 9M collections

- 9M FY22 Collections at Rs. 8,436 mn (vs Rs.5,142 mn in 9M FY21), even with 6-8 weeks of Covid

H1 FY21

H1 FY22

Q3 FY21

Q3 FY22

9M FY21

9M FY22

FY21

led interruption

Sales value (msf)

- Average monthly gross collections at above Rs.1,000 mn range during Q2 & Q3 FY22

• 9M FY22 Constructions: SPL’s highest ever 9M construction spending

12,443

10,033

6,272

5,874

2,165

4,107 4,159

- Construction momentum strong (Rs. 4,228 mn for 9M FY22 vs Rs. 1,637 mn for 9M FY21)

• Q3 FY22 - Net sales at 1.0 msf

- 3 New launches in Q3 FY22; significant line-up in Q4FY22

- Q3FY22 Collections at Rs. 3,140 mn (vs Rs.2,438 mn in Q3FY21 reflecting a 29% growth YoY)

H1 FY21

H1 FY22

Q3 FY21

Q3 FY22

9M FY21

9M FY22

FY21

- Construction grew to Rs.1,371mn vs Rs.706mn in Q3FY21 with a 94% YoY growth;

9M Sales by Segment

9M Sales by Dev. Model

Collections (INR mn)

Construction (INR mn)

Luxury 10%

Plots 25%

Affordable 47%

Mid- Market 18%

DM 38%

JDA 4% Own 13%

JV 45%

5,295

5,142

2,705

3,140

2,438

8,436

8,309

4,228

2,505

2,857

1,371

1,637

931

706

H1 FY21

H1 FY22

Q3 FY21

Q3 FY22

9M FY21

9M FY22

FY21

H1 FY21

H1 FY22

Q3 FY21

Q3 FY22

9M FY21

9M FY22

FY21

Customer base comprise of 11,800 from completed projects and 8200 customers in ongoing projects; Now adding 3,000 customers annually

Successful Launches; Impressive ‘Sales-at-Launch’*

9M FY22 Launches1 3

(Area in sft)

Launch

Launch Area

Sold at launch

% sold

# of project launches3

Includes 3 new launches & 5 new phases of ongoing projects

FY18

FY19

FY20

FY21

9M FY22

Chirping Grove – Phase 11

Q1FY22

250,421

103,793

Suvilas Palms

Westwoods

Eden 144

Q1FY22

229,657

99,025

Q2FY22

497,790

373,200

Q2FY22

151,045

101,553

Chirping Grove – Phase 2

Q2FY22

244,135

67,605

Yuva – WYTField Phase 2 2

Q3FY22

255,320

87,728

Sunshine – Phase 2 2

Q3FY22

164,640

83,370

Temple Bells - Phase 4 2

Q3FY22

185,286

34,130

Average Sales-at-launch %

New Launches – Impressive Sales-at-Launch

41%

43%

75%

67%

28%

34%

51%

18%

45%

52%

FY18

35%

FY19

48%

FY20

34%

FY21

45%

9MFY22

9M FY22 Sales-at-launch at ~45% despite 6-8 weeks lockdown in May-June’21

____________________________________________________________________ * Sales-at-launch = Actual sales during first 90-days of launch; 1. 2. 3.

Chirping Grove (Phase 1) soft launch towards end of March’21 and hence included in FY22 Yuva-2 & Sunshine-2 launched in Nov’21; Temple Bells-4 launched in Dec’21. Sales-at-launch is computed only till 31st Dec’21 (lesser than the 90-day metric) Includes launch of additional phases in ongoing projects

DM Platform: Well-established Now & Making Material Impact

DM Volumes

20%

19%

25%

35%

1.1

38%

1.0

0.8

0.7

0.5

DM Revenues

14%

23%

1,142

871

571

22%

622

FY18

FY19

FY20

FY21

9M FY22

FY19

FY20

FY21

9M FY22

% of Total Sales Volume

% of Total Revenues

Strong growth engine; Stabilised amidst ongoing industry consolidation

Increasing operating margins through DM fees

DM contribute ~2.0+ msf annually over the next 2 years; Stabilise around 3msf annual volume in medium term

* Project Kannur is deferred and is proposed to be taken up in future

Achieved organizational preparedness for rapid growth in this scalable business

Strong Project Pipeline; Growing Further

Project pipeline (msf) – As disclosed in the RHP/Prospectus

46.6

7.6

4.3

7.2

0.3

0.9

0.2

6.3

13.7

6.2

Ongoing Owned

Ongoing JV / JDA

Ongoing DM

PuD Owned

PuD JV / JDA

PuD DM

FC Owned

FC JV / JDA

FC DM

Total

) f s m

( s t c e j o r p g n o g n O

r e d n u s t c e j o r P

) f s m

(

t n e m p o l e v e d

s t c e j o r p g n m o c h t r o F

) f s m

(

%age of total area

24%

52%

24%

6.3

26.2

13.7

6.2

%age of total area

87%

10%

7.2

0.3

0.9

8.3

%age of total area

35%

63%

7.6

12.2

4.3

0.2

Owned JV/JDA

Total

Note: FC : Forthcoming; PuD: Projects under development.

• Thrust on DM Model to allow greater participation in industry consolidation •

Scalable business model in current environment implies strong pace of project addition

• Emphasis on JV/JDA to continue

1010

Strong Project Pipeline; Growing Further (contd.)

New Projects Signed since Nov’21

Project

Prime Life Spaces

Sanath Land

Clay Groove

Eden Phase – 2

Adde Vishwanathapura

Dev. Model

JDA

Dev. Type

City

Micro-Market

Project Area (msf)

Affordable

Chennai

Kuthambakkam

Affordable

Bangalore

Electronic CIty

Plots

Bangalore

Devanahalli

Bangalore

Devanahalli

Affordable

Bangalore

Dodballapur Rd

1.08

0.44

0.23

0.15

0.41

• 5 new projects signed since Nov’21, with 2.3 msf aggregate development potential

• Additional 11 projects at an advanced stage of closure – with over 10 msf agg. development potential

• Thrust on building strong pipeline to support accelerated growth momentum

Budget Housing Project of the year – Shriram South East

Property Awards of the Year Plotted Development Shriram Earth

Best Gated Community of the year – Shriram Shankari

Visionary Leader of the year (1)

Integrated Township Project of the year – Shriram Grand City

Best Efficient & Sustainable Smart Real Estate Project Shriram Greenfield

MD of the Year Real Estate Sector9

Most Admired Upcoming Project of the Year Shriram Suvilas11

Developer of the Year

Lifetime Achievement Award For Outstanding Contribution To Real Estate Sector10

FINANCIAL HIGHLIGHTS Q3 | 9M FY22

Brand Leadership Award1

Affordable Housing – Brand of the Year2

Developer of the Year3

Best Builder Residential Projects in Karnataka4

Innovative Real Estate Campaign of the Year5

Most Admired Upcoming Project of the Year6

Outstanding Project of the Year for Shriram Greenfield

Innovative Real Estate Marketing Campaign of the Year for Shriram Greenfield

Innovative Real Estate Marketing Campaign Of The Year8

MD of the Year13

Financial Highlights – Q3 FY22

INR Mn

Q3 FY22

Q2 FY22

Q3 FY21

Growth % QoQ

Growth % YoY

Total Revenues

EBITDA

1,301

532

942

216

1,617

38%

270

147%

EBITDA Margin %

40.9%

22.9%

16.7%

PBT

PAT

Net Debt – Equity

217

132

0.3x

(142)

(233)

(22)

(272)

-20%

97%

•

Positive Net Earnings – Turnaround in Q3, consistent with expectations

Reinforces confident on planned full year turnaround in FY22

Financial Highlights : Profit and Loss Q3 | 9M FY22

INR Mn

Revenue from operations

(Of which, DM Revenues)

Other income

Total Revenues

Cost of revenue

Employee benefit expense

Other expenses

Total Expenses

EBITDA

Finance Costs

Depreciation

Profit before Tax

Tax expense

Share of profit/(loss) of JVs

Net Profit

Q3 FY22

Q2 FY22

QoQ (%)

Q3 FY21

YoY (%)

9M FY22

9M FY21

FY21

1,096

299

205

1,301

460

175

134

769

532

301

217

(46)

132

761

212

182

942

431

180

116

727

216

344

(142)

(9)

(99)

(233)

1,409

212

208

38%

1,617

-20%

-43%

97%

10%

865

201

282

1,347

147%

-12%

270

273

(22)

103

(147)

(272)

2,278

2,936

622

535

2,813

1,063

520

367

876

504

3,440

1,602

483

489

1,950

2,575

863

940

(126)

112

(231)

(468)

865

911

(99)

315

(236)

(651)

4,315

1,142

698

5,013

2,387

634

793

3,814

1,199

1,253

(120)

230

(332)

(682)

•

Improved operating leverage and rising share of DM income supported higher profitability and earnings

Strong QoQ growth driven by improved project revenue recognition

Improving margin trends continue; Reinforces confidence on sustainable margins going forward

Financial Highlights : Consolidated Cashflows Q3 | 9M FY22

SPL Consolidated (CFS) Cashflows

SPL Enterprise (100%)1 Cashflows

Q3 FY22

H1 FY22

9M FY22

(INR mn)

Collections

DM Income

Other Inflows

Operating Inflow

Construction

Marketing & Admin Overheads

Other Operating outflows

Operating Outflow

Cash flow from Operations

IPO (Primary) Proceeds

Loan Drawals

Loan Repayment

Interest expense, net

Net Investment in MFs/others

Cash flow from Financing

Net Cash Flow

Opening cash & cash equivalents

Closing cash & cash equivalents

Q3 FY22 1,201

H1 FY22 1,776

9M FY22 2,977

(INR mn)

Collections

182

1,383

785

298

133

1,216

167

2,775

365

504

211

2,392

2,559

477

3,036

372

2,152

1,229

586

192

2,006

145

344

710

445

(271)

(540)

(395)

872

477

553

DM Income

Other Inflows

3,535

2,014

883

325

3,223

312

2,775

709

1,214

656

(239)

1,853

2,164

872

3,036

Operating Inflow

Construction

Marketing & Admin Overheads

Other Operating outflows

Operating Outflow

Cash flow from Operations

IPO (Primary) Proceeds

Loan Drawals

Loan Repayment

Interest expense, net

Net Investment in MFs/others

Cash flow from Financing

Net Cash Flow

Opening cash & cash equivalents

Closing cash & cash equivalents

2,209

182

2,391

1,435

464

171

2,070

321

2,775

465

1,001

621

1,608

1,929

1,722

3,651

3,607

372

3,982

2,544

845

250

3,639

343

624

873

699

(80)

(868)

(524)

2,247

1,722

•

Positive cash from operations; Improving trend continues

Strong liquidity, before IPO primary proceeds; Likely to continue even with planned pre-payment of debt in Q4

Likely additional cashflows from scheduled completion of projects during Q4 & FY23

_____________________________________________________________________________________ 1 Enterprise Cashflows include SPL CFS Cashflows plus 100% share of JVs. Excludes DM project cashflows

5,815

553

6,373

3,978

1,309

421

5,709

665

2,775

1,089

1,874

1,320

(70)

740

1,405

2,247

3,651

Financial Highlights : Consolidated Balance Sheet Q3 | 9M FY22

Amount (INR mn)*

Tangible Assets

Intangible Assets

Investments

Loans

Inventories

Trade receivables

Cash and Bank Balances

Other Assets

Total Assets

Equity Capital

Other equity

Networth

Borrowings

Other Financial liabilities

Other liabilities

Total Equity and Liabilities

As at 31-Dec-21 588

138

427

1,678

20,817

1,166

3,036

8,172

36,022

1,696

8,557

10,253

7,707

3,602

14,460

36,022

As at 30-Sep-21

As at 31-Mar-21

589

139

423

1,495

20,626

1,082

422

8,158

614

142

463

1,437

20,261

1,324

814

7,939

Net Debt#

6,230

5,694

5,728

3,027

FY20

FY21

H1 FY22

9M FY22

D-E 0.70x 0.69x 0.75x 0.30x

32,934

32,995

1,481

6,187

7,668

6,951

3,923

14,391

32,934

1,481

6,792

8,273

7,272

3,800

13,651

32,995

8.0%

6.0%

4.0%

2.0%

0.0%

RoCE %

7.4%

5.1%

4.1%

2.9%

FY18

FY19

FY20

FY21

___________________________________________________ * Data for Sep’21 and Mar’21 are Audited Financials. Data for Dec’21 is prepared by management and not reviewed/audited by Statutory Auditors # Excludes inter-company (JVs) unsecured loans, and hence may be at variance to Balance Sheet data

Growth Outlook Positive, Both Near and Long Term

 Q4 FY22 visibility strong; Reinforces confidence on full year turnaround

 Strong Volume Outlook, driven by positive market environment, supported by strong launch pipeline

−

3 planned new launches and preparedness for launching 3-5 additional phases of ongoing projects

 Encouraging Collection Outlook, supported by aggressive construction spend

−

Catch-up of construction milestones delayed due to labour migration post Covid1.0 and robust new sales collections

Construction spend nearly double in Q3; up 158% YoY to INR 4,228mn in 9M; Full year spend to be 2x+ vs. FY21

 Construction spending to be at a record high in FY22, with having 26 ongoing projects1

−

Successfully navigated labour migration issues led interruptions

Labour headcount at a new high – 5300+ as of Dec’21 vs. 4200+ pre-Covid

 Strong visibility on revenue recognition projects for Q4

−

Top-5 projects to contribute nearly 80% of likely revenues, and are at advanced stage of completion/hand-over

Strong visibility of DM fee income in ongoing projects

Scheduled completion and OC in Gateway Office Complex (Xander) will add large DM fee as well.

 Long term growth visibility over next 3 years

− Ongoing projects aggregate to 26msf of development – of which, 21msf launched and 85% of it sold already

−

15-18 msf scheduled to be handed over in next 24 months, presenting revenue recognition potential

− Over two-third of cumulative earnings over next 3 years to come from volumes sold already

 Improving scale, operating leverage and rising share of DM fee to help stabilize EBITDA Margins at higher level, as envisaged

 Strong cashflow outlook, even after planned utilization of IPO proceeds (INR 2bn out of primary) for debt reduction in Q4

−

Interest cost savings from ongoing pre-payment of debt more prominent in FY23; Only part year impact in Q4

 Improving ROCE trend to continue, in FY22 and beyond

________________________ 1 including phases of ongoing projects, as disclosed in the RHP/Prospectus.

Budget Housing Project of the year – Shriram South East

Property Awards of the Year Plotted Development Shriram Earth

Best Gated Community of the year – Shriram Shankari

Visionary Leader of the year (1)

Integrated Township Project of the year – Shriram Grand City

Best Efficient & Sustainable Smart Real Estate Project Shriram Greenfield

MD of the Year Real Estate Sector9

Most Admired Upcoming Project of the Year Shriram Suvilas11

Developer of the Year

Lifetime Achievement Award For Outstanding Contribution To Real Estate Sector10

GROWTH OUTLOOK GOING FORWARD

Brand Leadership Award1

Affordable Housing – Brand of the Year2

Developer of the Year3

Best Builder Residential Projects in Karnataka4

Innovative Real Estate Campaign of the Year5

Most Admired Upcoming Project of the Year6

Outstanding Project of the Year for Shriram Greenfield

Innovative Real Estate Marketing Campaign of the Year for Shriram Greenfield

Innovative Real Estate Marketing Campaign Of The Year8

MD of the Year13

Residential RE Sector Outlook Strong

Strong Growth Drivers

Affordability at a new high

• Residential affordability at a multi-decade high:

- historically low interest rates - lucrative payment plans / discounts - government incentives - stable real estate prices - improving purchasing power

• Re-established importance of owning a home

• Renewed interest from investors and from NRIs impacted by

economic uncertainties

• Credible developers with proven execution capability and quality products expected to survive & emerge stronger in the ‘next normal’

Source: HDFC website

Industry on a recovery path

Accelerating shift towards “larger, branded players”

New Launches

Sales Volume

Bengaluru

Chennai

(In units)

+38%

(In units)

45,383

33,953

32,863

26,785

27,060

14,780

12,654

14,415

10,753

+40%

46,750

33,480

68%

56%

44%

65%

35%

61%

63%

60%

65%

56% 55%

44% 45%

39%

40%

37%

25,583

21,832

19,640

31%

32%

6 1 Y C 1 Q

6 1 Y C 3 Q

7 1 Y C 1 Q

7 1 Y C 3 Q

8 1 Y C 1 Q

8 1 Y C 3 Q

9 1 Y C 1 Q

9 1 Y C 3 Q

0 2 Y C 1 Q

0 2 Y C 3 Q

1 2 Y C 1 Q

1 2 Y C 3 Q

55% 45%

59%

41%

65%

62%

56%

44%

52%

49%

59%

41%

35%

38%

35% 6 1 Y C 1 Q

6 1 Y C 3 Q

7 1 Y C 1 Q

7 1 Y C 3 Q

8 1 Y C 1 Q

8 1 Y C 3 Q

9 1 Y C 1 Q

9 1 Y C 3 Q

0 2 Y C 1 Q

0 2 Y C 3 Q

1 2 Y C 1 Q

1 2 Y C 3 Q

Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22

Source: JLL Research

Source: Propequity

Top 20

Rest

Top 20

Rest

Budget Housing Project of the year – Shriram South East

Property Awards of the Year Plotted Development Shriram Earth

Best Gated Community of the year – Shriram Shankari

Visionary Leader of the year (1)

Integrated Township Project of the year – Shriram Grand City

Best Efficient & Sustainable Smart Real Estate Project Shriram Greenfield

MD of the Year Real Estate Sector9

Most Admired Upcoming Project of the Year Shriram Suvilas11

Developer of the Year

Lifetime Achievement Award For Outstanding Contribution To Real Estate Sector10

SPL OUTLOOK

Brand Leadership Award1

Affordable Housing – Brand of the Year2

Developer of the Year3

Best Builder Residential Projects in Karnataka4

Innovative Real Estate Campaign of the Year5

Most Admired Upcoming Project of the Year6

Outstanding Project of the Year for Shriram Greenfield

Innovative Real Estate Marketing Campaign of the Year for Shriram Greenfield

Innovative Real Estate Marketing Campaign Of The Year8

MD of the Year13

Current Year Outlook

➢ SPL standing firm on its growth path – proven sales and execution machine showing strong resilience

➢ SPL’s growth momentum interrupted by COVID in FY21; Back on growth trajectory

➢ Encouraging near term outlook with strengthened long-term fundamentals, for the Sector and for SPL

– Markets conducive for new launches with improving outlook;

– Q4 historically the best quarter; on track to reach 4msf in FY22

–

Launch pipeline robust with 8 launches so far; 3 new launches planned in Q4, apart from additional phases of ongoing projects

– Overall project pipeline impressive: 35 projects; 47 msf development potential. Additional 5 projects with 2.3 msf signed since

Sales Volume

Sales Value

Collection

Construction

(msf)

(INR mn)

9M FY22 2.6msf 3.6

3.2

3.0

2.4

1.3

9M FY22 INR 10.0bn

9M FY22 INR 8.4bn

9M FY22 INR 4.2bn

14,318

11,726

11,486

12,443

10,326

8,777

8,309

4,718

4,393

4,624

4,851

3,423

3,662

2,671

2,505

7 1 Y F

8 1 Y F

9 1 Y F

0 2 Y F

1 2 Y F

7 1 Y F

8 1 Y F

9 1 Y F

0 2 Y F

1 2 Y F

7 1 Y F

8 1 Y F

9 1 Y F

0 2 Y F

1 2 Y F

7 1 Y F

8 1 Y F

9 1 Y F

0 2 Y F

1 2 Y F

_________ Source: Company Data; * RHP Cut-off (as of Sep’21) was at 35 projects, 47 msf potential (26msf ongoing & 21msf future projects)

Long Term Strategy & Growth Outlook

SPL Competitive Strengths

SPL Forward Strategy

Leadership in Core Markets

Strong Parentage and Established Partnerships

Experienced & Professional Management Team

Focus on Mid Market and Affordable Housing

Beneficiary of RERA-led industry consolidation

Asset Light Business Model

Demonstrated Execution Track Record

Strong Balance Sheet

Stay focused on mid- market and affordable housing

Enhanced focus on DM model

Build scale and enhance execution capabilities

Continued focus on core markets of South India

Unlock value from ongoing development project in Kolkata

Leverage established relationships with financial investors for growth funding

Growth Outlook: FY21-FY24e

Targeting ~ 20-25% CAGR in Sales Volume over next 3-5 years, supported by strong project pipeline and stabilized operating platform

Development Management (DM) Model: New Growth Engine for SPL

Evolving new development model, given the RERA led industry consolidation

–

Sustainable opportunity:

•

RERA-led changes in the industry are irreversible

Large opportunity from existing players: smaller developers/land-owners are looking to handover the project to larger player for risk issues

Fragmented land ownership : small players continue to look for larger, branded players to unlock value from land

Recent success endorses SPL’s ability to build strong DM pipeline

–

Scalable opportunity:

• Market being vacated by smaller developers is large enough to support significant growth for

larger players

•

SPL’s model of outsourcing construction & scaling up in-house capabilities for project mgmt. & cost control is key

SPL has created a strong platform over the last 2-3 years

• Minimal capital investments from the DM partner

–

Profitable opportunity – both for DM operator and also landowner/smaller developers:

•

Fees ranging from 10%-16% of total project revenues

Less competition : Large developers are balancing between unlocking value from own land banks and projects

Low risk profile given low capital investment

• Doesn’t involve land valuation constraints, and provides next best return to landowner after

outright purchase

DM Volumes (msf)

1.1

1.0

0.8

0.7

0.5

FY18

FY19

FY20

FY21

9M FY22

DM Revenues (Rs Mn)

1,142

871

571

622

FY19

FY20

FY21

9M FY22

New growth area; accounts for nearly 32% our project pipeline

DM Portfolio# projectsArea (msf)Completed12.0 Ongoing116.4 PUD10.9 Forthcoming27.6 15 16.9 Kolkata Project : Unlocking Value

Project Overview

– Integrated township in Uttarpara, Kolkata

• 314 acres with 33.54msf of estimated total saleable area

• Acquired additional 73 acres; 30 acres earmarked for road infra

– Master development plan approved by authorities in 2016

• 26.42msf of residential area

• 5.39msf of commercial/retail/healthcare/hotel

• Rest as educational institutions and recreational infrastructure

Tower -22: 12th Floor in Progress

Tower -23: 8th Floor in Progress

Tower -24: 12th Floor in Progress

Development Strategy

– Developing c.10msf over 6 years – own and jointly with investors

– Simultaneous focus on building road and social infrastructure

– Flexible approach to monetizing c.21msf in the medium term

Development Status Update

– Shriram Grand-1: 2.1 msf development

•

Substantially sold.

Construction in full swing. Expect to start handover towards end of FY22

– Shriram Sunshine: 2.3 msf development

•

Launched in 3 phases, in partnership with Kotak-CDC Fund.

~80% of Sunshine Phase-1 (0.8msf) sold

Sunshine Phase-2 launched Dec’21

– FSI sale progressing well

• Reasonable progress in last 2 years - senior living & social infra

• Discussions ongoing for other social infrastructure

External painting Done – Custer A & B

Investment Summary

8. Access to Capital

➢ Strategic relationships with domestic and

international financial investors

➢ Early recipient of FDI in the sector

1. Corporate Governance

➢ Shriram Group DNA and marquee investor presence for a decade contribute to strong governance and transparency practices

7. Low Leverage

➢ Well capitalized, with leverage levels of 0.3x1

6. RERA Beneficiary

➢ Well-positioned to benefit from RERA and

industry consolidation

➢ Built deep project pipeline

➢ Proven ability to manage partnerships to help

build pipeline

5. Scalability

➢ Asset light and highly scalable business model

with DM being core part of strategy

➢ Strong organisational build up in past few years

2. Trust and Brand

➢ ‘Shriram’ brand benefits from strong trust and

recall among target customers

3. Track Record

➢ Robust execution track record; have delivered 29

completed projects

4. Strong Growth Outlook

➢ Visible growth pipeline with continued focus on

mid-market & affordable segment

➢ Demonstrated ability to ramp-up sales volumes

➢ Core strategy unchanged – Focused on mid- market and affordable housing in South India

___________________________________________________ Note: 1. As of Dec 31, 2021. Net debt calculated as (Gross debt – Cash & cash equivalents). Gross debt excluding unsecured inter-company loans (from JVs)

Well-positioned to navigate key challenges of the real estate industry

THANK YOU

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