RESULTS FOR HALF-YEAR ENDING AND PERFORMANCE UPDATE FOR THE QUARTER ENDING SEPTEMBER 30, 2012 1 Private and Confidential
D ISCLAIMER Forward Looking Statements It is possible that this presentation could or may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could or other words of similar meaning. Undue reliance should not be placed on any such statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Company’s plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are several factors which could cause actual results to differ materially from those expressed or implied in forward looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions. 2
YATRA CAPITAL LIMITED 3
E XECUTIVE S UMMARY Executive Summary • In its second quarter review of monetary policy, RBI has scaled down the growth projection from 6.5% to 5.8% considering the weakening of all indicators of growth • Sentiment in the markets has improved as government launches the next phase of the reforms process; However inflationary concerns and slowing growth continue to overhang • Most experts predict that growth slowdown has largely bottomed out • Yatra Capital NAV at €6.1, 1.66% higher than NAV on March 31, 2012 • Company has completed the process of redemption of shares; 2.14 million shares redeemed at €3.5 per share. Total consideration of Shares redeemed is €7.5 million • Real Estate markets continue to be stable • Sales improved across key markets on account of Diwali season; However high interest rates and reduced affordability continues to impact off take. • Commercial rentals stable despite slowing demand • Retail Rentals will be stable; Approval for FDI in Multi brand retail creates positive sentiment; on the ground implementation will be key to further growth 4
E XECUTIVE S UMMARY Executive Summary (continued) • Bangalore residential project obtained requisite approval in last quarter and launched the project under the name “One Bangalore West”. It received an encouraging response with sales of 262 units out of 430 units launched • Approval of allowing up to 51% foreign direct investment (FDI) in the multi brand retail is expected to benefit Phoenix Mills in long run from the leasing perspective • Finishing work continues at Kolkata hotel. The opening has been delayed as final occupancy certificate is yet to be received • In Bhavnagar, exit terms were approved by Investment Committee (details on slide 31). Documentation is in progress. • In Batanagar, approval from the Government body to file the merger scheme with the courts is still awaited • Progress on fund raising for the shortfall in Indore retail mall and revised business plan in Bantala IT SEZ continues to lag • Apart from continuing to pursue the above issues over the next few quarters, the key focus has been to achieve Bhavnagar exit. We also continue to focus on distributions to shareholders either through project cash flows (as in the case of the Pune, Indore and Bangalore residential projects) and through the sale of K2’s stake in the projects once completed (case in point being the Taj Gateway in Kolkata) or where development is not being pursued (such as Agra) 5
S HARE P RICE P ERFORMANCE Yatra Share Price Performance The Company has repurchased under the 2 nd Buyback programme to date, 16,076 • Ordinary shares for a total consideration of EUR 51,407. The number of Ordinary shares outstanding in issue is 21,230,639 (will change after redemption) • The Company also successfully completed the share redemption process in accordance with the announcement made on November 8, 2012. 10% of the outstanding shares in issue were redeemed at €3.5 for a total consideration of €7.5 million • The highest traded price of the shares for the quarter has been €3.05 whereas the lowest traded price was €2.7; share price as on September 28, 2012 was €2.90 Yatra Share trading Volume- Monthly Yatra Share Price Performance Note: NAV for March 31 st was announced to the market in the month of July and the NAV as of September 30 th was announced to market in November. 6
PERFORMANCE SUMMARY FOR THE QUARTER ENDING SEPTEMBER 30 , 2012 7
S UMMARY Result Summary • Net Asset Value* (NAV) per share at €6.1, 1.66% higher than NAV on March 31, 2012 • 76% of net funds raised was committed as at September 30, 2012 • Pre-let/ let/ sold/ pre-sold/ terms agreed for over 5.7 million sq ft as on September 30, 2012 • The Bangalore Market City project has been launched post receipt of all approvals and has seen strong sales NAV in EUR • Internal desktop valuation as on September 30, 2012 conducted by the Manager, extending the CBRE valuation principles established for March 31, 2012. However these amounts are expected to be realisable only if Yatra continues to stay invested in the projects until their full completion • Net Asset Value (“NAV”) is based on Yatra’s (including all subsidiaries) net assets divided by number of shares outstanding as at September 30, 2012 8
V ALUATIONS & NAV Valuations & NAV Project Valuation NAV* Amount Mar’12 Sep'12 Mar’12 Sep'12 Development Project Gain/(Loss) Gain/(Loss) Contributi Committed (CBRE (Desktop (CBRE (Desktop in Sep'12 in Sep'12 on to NAV valuation) Valuation) valuation) Valuation) Euro Euro Euro Euro Euro % % % million million million million million Market City, Bangalore # 28.07 20.57 25.80 25.5 22.29 25.61 14.88 19.94 Batanagar, Kolkata 20.28 8.16 8.17 0.1 8.68 8.73 0.57 6.80 Market City Retail, Pune 17.05 23.96 24.74 3.2 4.33 5.51 27.18 4.29 Forum IT SEZ, Kolkata 16.68 4.62 4.02 -13.1 1.80 0.59 -67.04 0.46 Residential Project, Pune 15.88 23.22 23.53 1.3 18.13 19.96 10.06 15.54 Treasure Market City, Indore 10.97 6.07 6.07 0.0 0.58 0.03 -95.62 0.02 City Centre, Nashik 10.42 11.21 11.50 2.6 7.98 8.48 6.28 6.61 Treasure Town, Bijalpur 7.71 16.77 17.14 2.2 11.19 11.62 3.84 9.05 Mixed Use, Bhavnagar 6.28 3.31 2.59 -21.6 0.66 0.00 -100.0 0.00 Taj Gateway, Kolkata 4.64 10.14 10.21 0.7 4.95 4.35 -12.13 3.39 Phoenix United Mall, Agra 4.04 2.83 2.84 0.3 2.73 2.78 1.89 2.17 Listed Equity Holding The Phoenix Mills 3.73 1.95 1.83 -5.72 1.95 1.83 -5.72 1.43 Unlisted Equity Holding Saket Engineers Private Ltd 10.13 9.90 9.65 -2.5 8.15 7.96 -2.36 6.20 3.8 4.31 Total 155.88 142.71 148.10 93.42 97.44 Cash and Receivables NA NA NA NA 31.79 28.09 -11.62 21.88 Market City Hospitality, Pune^ 4.58 - - 2.90 2.86 -1.44 2.23 Total 160.46 142.71 148.10 3.8 128.11 128.40 0.22 100.0 *NAV numbers post balance sheet adjustments # includes two SPVs ^ Not included; Valued at Cost 9
MACRO ECONOMIC OVERVIEW 10
M ACRO E CONOMIC OUTLOOK Macro Economic Summary • In its second quarter review of monetary policy, RBI has scaled down the growth projection from 6.5% to 5.8% considering the weakening of all indicators of growth • Increased risk from the global economic factors, poor IIP data, weakening net exports and estimated decline in food grain production resulted in this scale down of growth • Government of India (GOI) allowed FDI up to 51% in the multi brand retailing and up to 100% in single brand retail. It also permitted FDI in civil aviation, power exchange and broadcasting sectors in a bid to improve efficiency and productivity • RBI reduced the cash reserve ratio (CRR) by 25 basis points from 4.5% to 4.25%. The reduction in the CRR will inject around INR 175 billion (€2.5 billion) of primary liquidity into the banking system • Inflows from foreign institutional investors (FIIs), the main driver of Indian equities, topped at $20 billion (around INR 1.1 trillion) in the first 11 months of the calendar year - the second highest since 1993, when India opened the doors to this class of investors • A combination of quantitative easing in the developed world and the government’s efforts to change the perception about policy-making during the second half of 2012 has led to strong inflows in the country 11 11
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