Presentation August 2019 1 What Defines Us Pedigree K Raheja Corp - PDF document

Presentation August 2019 1

What Defines Us Pedigree K Raheja Corp Limited Leading real estate developer in India for over 6 Decades Proficiency Right Assets Right Location Right Partnership Right Team Performance Robust Operating Performance 2

Business Performance 3

Highlights for the quarter Rs. 6,070 Rs. 205 Mn Rs. 0.68 RevPAR PBT EPS* Rs. 5,937 Rs. (297) Mn Rs. (1.33) * Not annualised 4

Consolidated Q1FY19 Performance (In Rs. Mn) EBITDA * Total Income PBT Margin % 871 205 2,462 35.5% 2,456 854 34.7% (297) Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 * Treasury income lower by Rs 47 mn 5

Quarter that was… Industry Industry • Impact of Elections • Positive demand supply arbitrage • Slowdown in Consumer spends • Shutting down of a major airline Chalet Hotels Limited Chalet Hotels Limited • ADR driven RevPAR growth • Lower Banquet and MICE revenue • Occupancy flat at 75% • Effective cost management • Improved Capital Structure 6

Hospitality City-wise performance Q1FY20 Revenue Rs 2,198 Mn Q1FY20 Q1FY19 FY19 YoY % ADR (Rs.) Hyderabad MMR 7,860 7,629 8,086 3% 19% Bengaluru 8,835 8,705 1% 8,756 Bengaluru Hyderabad 8,116 7,946 2% 8,205 18% MMR Combined 8,078 7,875 8,218 3% 63% Occupancy % MMR 74% 75% -100 Bps 76% Bengaluru 78% 78% - 77% Q1FY20 Segment Profit* Rs 854 Mn Hyderabad 77% 76% 100 Bps 76% Combined 75% 75% 76% - Hyderabad RevPAR (Rs.) 21% MMR 5,805 5,687 2% 6,178 Bengaluru 6,882 6,793 1% 6,757 Bengaluru MMR Hyderabad 6,263 6,037 6,234 4% 22% 57% Combined 6,070 5,937 6,283 2% MMR: Mumbai Metropolitan Region *Segment Profit before Interest Depreciation and Tax 7

Hospitality Segment Performance (In Rs. Mn) Revenue Margin % Revenue Break-up Q1FY20 Segment Profit* Others 9% 869 40.0% 2,198 854 2,170 38.8% F&B 32% Room 59% Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 * Segment Profit before Interest Depreciation and Tax 8

Retail & Office Space (In Rs. Mn) Revenue Segment Profit* Margin %* Updates: 74 152 48.8% • SLM impact Rs 68 mn (PY: Rs. 3 mn) 65 • Sahar Commercial Centre 7.7% 5 • Fit-outs in process Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 • The Orb - Sahar Retail • 14 Outlets opened • Inorbit Mall Bengaluru The Orb at Sahar • Improved occupancy with improved rentals * Segment Profit before Interest Depreciation and Tax 9

Consolidated Profit / Loss Statement Rs. Mns Particulars Q1FY20 Q1FY19 YoY% FY19 Total Income 2,462 2,456 0% 10,348 Total Expenditure 1,608 1,585 1% 6,679^ 854 871 -2% EBITDA 3,668 34.7% 35.5% Margin % 35.5% Depreciation and Amortisation 282 292 -4% 1,154 357 863 Finance costs -59% 2,657 Exceptional items 1 (11) (14) 41 205 (297) (Loss)/Profit before income tax (183) Tax Expense 66 (70) (107) 139 (227) (Loss)/Profit for the year (76) Other comprehensive (expense)/income (2) (2) (8) Total Comprehensive Income 137 (229) (84) EPS (Rs.) *0.68 *(1.33) (0.43) 1 Exceptional Item on account of accounting adjustments for Residential Property at Koramangala Bangalore 10 *not annualized ^Includes Exchange loss of Rs 199 mn

Debt Position as of June 2019 (In Rs. Mn) Debt Movement 27093 14,942 14,545 22,173 12,781 13,141 4,920 1,801 1,764 Mar-18 Mar-19 Jun-19 Mar-18 Mar-19 Jun-19 ECB Loans Rupee Loan Consolidated March 31, 2018 March 31, 2019 June 30, 2019 Total Debt / Equity 5.5 1.0 1.0 Total Debt / EBITDA 9.0 4.1 - Excluding Preference Share Capital 11

About Chalet.. 12

Well Positioned to Benefit from Industry Trends Located in INR 3,668 Mn INR 10,348 Mn High Density / 35.5% Business Districts Hospitality the leading Ab About the Com Company Mumbai, Bengaluru, EBITDA and EBITDA Total Income – FY2019 business driver Hyderabad Margin – FY2019 Others Commercial 8% and Retail 4% 2,331 Operational/ INR 9,137 Mn INR 3,566 Mn ~580 Proposed / 39.0% Port ortfolio of of High igh-End Pipeline Hospitality Segment Profit Branded Hot Br otels Hospitality Revenue – Keys as of 31 st March 2019 before Interest Depreciation FY2019 and Tax / Margin % – FY2019 Hospitality 88% Hot otel-led ~483K sq.ft. ~384K sq.ft. 1.12 MM sq.ft. Complementary Mix ixed-Use Rea eal Es Estate Mixed-Use Commercial & Mixed-Use Retail Space Pipeline Mixed-Use – Cou Countering g Cy Cyclical ality Office Commercial Office of Hotels of 13

Our Hotel Portfolio JW Marriott Mumbai Sahar Bengaluru Marriott Hotel Whitefield The Westin Hyderabad Mindspace (427 Keys) (588 Keys) (391 Keys) Strategically Chosen Brands at Key Locations Leading to Market Leadership Lakeside Chalet, Mumbai-Marriott Executive Renaissance Mumbai Convention Centre Hotel (600 Keys) Four Points by Sheraton Navi Apartments (173 Keys) 15 Proposed to be rebranded as ‘Westin’ in 2020 Mumbai, Vashi (152 Keys)

Portfolio of High-End, Globally Recognized, Branded Hotels 588 Top tier 600 173 5 star 2,179 Deluxe Luxury Keys * 152 Luxury – Upper Upscale Mumbai Hyderabad 152 Bengaluru 4 – 5 Keys star Upscale 3-4 Upper-Midscale star 391 427 2-3 Midscale-Economy star * Under Franchise Agreement, Leasehold Land 16

Key Awards Loved By Guest Award Winner 2019 - Expedia – Four Points by Sheraton, Vashi Most Luxurious Spa Treatment – J W Marriott Mumbai Sahar Best Business Hotel in Maharashtra Business Leaders Award 2019 – Four Points by Sheraton, Vashi Hotel Manager of the Year – J W Marriott Mumbai Sahar Executive Chef of the Year (West Zone) Highest Intent to Recommend APEC Region 1 st Quarter 2019 Awards (Out of 79) PR Manager of the Year (West Zone) – Renaissance, Mumbai – Bengaluru Marriott Hotel Whitefield 17

65% of Current Inventory in the Financial Capital of India Located in Central Business District and New Business Centers of Mumbai Metropolitan Region Favorable Demand/Supply Current Inventory Proposed Pipe-line Dynamics (1,513 Keys) Inventory (~410 keys) + 1 Infrastructure Opportunities augurs well for the City ~260 773 ~150 Airoli • Metro Line Powai 588 • Flyover widening on Eastern 152 2 Expressway Sahar Vashi • Mumbai Trans Harbor Project • Coastal Road • New Business District in Navi Mumbai 1. Non-binding MoU, matters under discussion 18 2. Non-binding term sheet, matters under discussion

Strategically placed in Business Cities Located in New Business Centers Bengaluru Hyderabad Current Inventory 391 427 Mindspace Whitefield ~170 Proposed Pipe-line Inventory 1 Ongoing Infrastructure Developments in the Micro Markets Hyderabad Bengaluru • Metro Line • Metro Line • Improved road infrastructure 1. Non-binding MoU, matters under discussion 19

Business Model Built Upon Principles of Active Asset Management Market Leading Operating Parameters ✓ Actively engage with hotel management team at each hotel to set operational and financial targets Employee Cost as a % of 14% Revenue (FY19) ✓ Staff per room ratio at 1.2 Drive performance through structured monthly review of reports generated by each hotel Power & Fuel Cost as a % of 7% ✓ Revenue (FY19) Review and execute renovation plans Consistent improvement in Operating Performance ✓ Hospitality Margins%** Discuss and optimize pricing strategies to maximize 40.7% room yield 40.5% ✓ 150 Bps Conduct periodic meetings with hotel operator’s 39.2% leadership teams ✓ Review competitor set performance and penetration FY17 FY18 FY19* * Excludes impact of Forex Movement 20 ** Segment Profit before Interest Depreciation and Tax

Hotel-led Complementary Mixed-Use Commercial and Retail Developments Strategy of co-locating projects augur well for Business Demand coupled with optimal utilization of available land Office and Retail (0.9 Mn sqft) Inorbit Mall Office Tower Whitefield, Bengaluru Whitefield, Bengaluru 260K sq ft of Retail area 109K sq ft + Multiplex under construction The Orb Office Tower Sahar, Mumbai Sahar, Mumbai 123K sq ft Food & Beverage 374K sq ft in Prime Location Hub in Prime Location 21

Proposed Development Pipeline in Key Business Districts Hotel and Convention Center Hotel Commercial Location Renaissance Complex, Powai Airoli, Navi Mumbai Renaissance Complex, Powai Proposed Brand ‘W’ 3 Hyatt Regency 4 - 2021 1 2021 1 2021 1 Est. opening Keys / Total Build Up Area ~150 Keys & ~40k Sqft Convention Center ~260 ~700k Sqft Leasehold 2 Ownership Freehold Freehold Hotel Location: Mindspace, Hyderabad Commercial Proposed Brand: Westin 3 Location: Marriott Complex, Whitefield Hyderabad Mumbai Est. opening: 2020 1 Est. opening: 2021 1 Bengaluru Keys: ~170 Total Build Up Area: ~400k Sqft. Ownership: Leasehold 5 Ownership: Freehold Note 3. MoU executed for the brand 1. Dates are based on management estimates, subject to approvals 4. LoI executed for the brand 2. MoU for lease executed 5. Letter of intent entered for lease deed 22