#1LODHA BUILDING A BETTER LIFE October 28, 2023 BSE Limited Scrip Code: 543287 Debt Segment - 974163, 974199, 974473, 974511, 974986, 975053, 975115 National Stock Exchange of India Limited Trading Symbol: LODHA Dear Sirs, Sub: Investor Presentation Ref: SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('the Listing Regulations') We enclose herewith Investor's presentation on the Un-audited Financial Results for the quarter and half year ended September 30, 2023. The same is also being uploaded on the Company's website at www.lodhagroup.in We request you to take the above on record. Thanking you, Yours faithfully, For Macrotech Developers Limited SANJYOT NILESH Digitally signed by SANJYOT RANGNEKAR NILESH RANGNEKAR Date: 2023.10.28 18:20:48 +05'30' Sanjyot Rangnekar Company Secretary & Compliance Officer Membership No F4154 Encl: As above Macrotech Developers Limited: Lodha Excelus N M Joshi Marg, Mahalaxmi, Mumbai 400 011, India Regd. Office: 412, Floor-4, 17G Vardhaman Chamber, Cawasji Patel Road, Horniman Circle, Fort, Mumbai 400 001, India CIN: L45200MH1995PLC093041 T+91 22 6773 7373 E: [email protected] www.lodhagroup.in#2AMARA E LODHA Investor Presentation Second Quarter FY2024 28th October 2023 E#3Highlights Growth Drivers INDEX Page No 10 Performance Update 22 33 Financials Company Overview Annexures 36 36 43 2#4Lodha - India's leading real estate developer Leading Residential Platform India's Largest Real Estate Developer ■INR -770bn of pre-sales and INR -761bn of collections (99% of pre-sales) since FY14 Diversified portfolio providing resilient growth ■ 30+ operating projects contributing to sales ■Presence across luxury, premium, mid- income & affordable: ~60% sales from affordable & mid-income Focus on 3 cities contributing 2/3rd primary homes sales (INR 1.75tn) amongst Top 7 Indian cities ■10+% market share in MMR ■ Accelerating growth in Pune ■In seed phase in Bangalore Operational Excellence & Strong Brand ■ Premium brand positioning and high recall ■ High quality leadership team ■Best value from construction spends: " Amongst only engineering led and engineering focused RE companies No margin leakage to GC Industry leading ESG practices & ratings E LODHA Strong Financial Profile Strong operating cash flow generation giving ability to grow & de-lever in tandem FY 23 performance: ■ Operating cash flow: INR ~57bn ■Cash available for investment & capital providers: INR -47bn ■Net debt reduction: INR -22bn ■Rewarding shareholders: 1:1 bonus shares; 15- 20% dividend payout - 1st dividend paid for FY23 Strong profitability track record; further expand due to scale up, price growth & debt reduction ■Sustained adj. EBITDA margin of -30% ■Pro-forma RoE for FY24e at -20% Conservative leverage: Net debt ceiling of 0.5x D/E and 1x D/OCF ■Net debt of INR ~67bn (Sep-23); Will be below ceiling in FY24e ■ A+ (Positive Outlook) - 5 upgrades already since 2021, set to get in AA family in 2024 Annuity like cashflow from townships ■FY 23 sales INR ~23bn and collections of INR -22bn (Residential) ■Infra project completion (FY 24-26) expected to further accelerate growth ■ 4,300+ acres strategic land reserves providing long-term visibility Multiple Growth Drivers Planned consistent growth of ~20% p.a. in housing ■Dual consolidation - both on demand & supply side - a huge tailwind for Tier -1 brands ■ Significant headroom to grow in MMR & Pune through 'supermarket' strategy of presence every 2-4 km radius Building recurring / annuity income targeting INR ~5bn of net income by FY26 and INR ~15bn by FY31 ■ Pan-India Digital Infrastructure (warehousing and industrial) platform with Bain Capital and Ivanhoe Cambridge - ■Growing Property Management business aligned to residential growth ■Select high quality office and retail portfolio Partner of choice for landowners, lenders & investors ■ Added 30 projects with GDV of INR ~483bn since IPO LODHA BUILDING A BETTER LIFE 3#5World Tower - Ball Room 01 Highlights 4#6Key Performance Indicators Pre-sales* ✓ INR 35.3bn ( 12% YoY), best ever quarterly performance despite Q2 being seasonally the weakest quarter and no new location launch Embedded EBITDA Margin# New Projects Added ESG & Brand Performance ✓ ~30% for Q2 and ~30% for 1HFY24 ✓ 2 projects with INR ~23bn GDV (>80% of INR 175bn full-year guidance achieved in 1H) o One project each added at new location in focus markets of Eastern & Western suburbs of MMR, in-line with our supermarket strategy ✓ Ranked No.1 amongst residential developers in Asia by GRESB^ ✓ S&P Global 2023 Corporate Sustainability Assessment (CSA): 2nd Highest score out of 200 global Real Estate Development companies ✓ Highest 'Top of Mind' housing brand in Mumbai & Pune, as per Kantar, global leader in consumer survey& LODHA BUILDING A BETTER LIFE * Includes DM Sales 0.5bn # Embedded EBITDA Margin: Estimated EBITDA margin on Pre-sales (ex. DM sales) of the period with estimated lifecycle costs, excluding finance costs; this can be equated with 'Adjusted EBITDA Margin' in the P/L; ^GRESB: Global Real Estate Sustainability Benchmark & 46% and 31% participant in Mumbai & Pune respectively responded "Lodha" as the first name when it comes to housing 5#7Q2FY24 - Other Operating Highlights Price Growth Launches ~3% Average YTD price growth¹ 1.9 msf Launches across MMR and Pune Cash Flow Net Debt Operating cash flow INR 12.6bn INR 67.3bn Debt down by INR 5.4bn Avg. borrowing cost reduced by ~5bps to 9.6% vs Jun-232 LODHA BUILDING A BETTER LIFE 1YTD Price Growth- Weighted average of projects having sales in Q2FY24 vs. Sales price in Q4FY23 2 Exit cost of debt as of Sep-23 and Jun-23 CO 6#8Cash Flow INR bn Office & Retail 'For Sale' Land Sales Q2FY24 1HFY24 (for rent) Pre-Sales 34.5 0.3 0.5 35.3 68.9 Collections 26.5 0.4 0.6 27.5 51.5 Net Collections* 23.7 0.4 0.6 24.7 46.0 Op. Expenses 11.8 0.1 0.2 12.1 25.0 Const. Exp 8.2 0.1 0.2 8.5 18.5 SG&A 3.3 3.3 6.8 - Taxes 0.4 -0.3 Operating cash flow 11.9 0.3 0.4 12.6 21.0 - Interest payments 2.1 4.1 Cash flow for growth & capital providers Growth Investments# 10.5 16.8 5.1 13.4 Decrease / (Increase) in Net Debt 5.4 3.5 On track to achieve full year guidance for net debt LODHA BUILDING A BETTER LIFE *Net of any stamp duty, GST and Hospitality & Property Management expenses; #Growth investment: Land & approval cost and investment in platform 7#9Guidance for FY24 Pre-Sales FY23 Actuals FY24 Guidance 1HFY24 120.7 145 68.9 Operating Cashflow 56.6 - ~ 60 21.0 New Project Additions 198.0 Net Debt LODHA BUILDING A BETTER LIFE 175+ 143.0 70.7 Below ceiling of 1x Net Debt: OCF & 0.5x Net Debt:Equity 67.3 INR bn Strong launch pipeline led by robust business development provides visibility to FY24 pre- sales goals and sustained growth for future On path to achieve full year guidance with significant debt reduction planned in 2H 8#10Strong launch pipeline for rest of FY24 Micro-market Own/ JDA Project Area (Mn.Sq.ft) Est. GDV (INR bn) No of Projects JDA 24.1 1 South Central 0.5 South Central Own 0.3 13.5 1 Extended Eastern Suburbs Own 1.5 9.8 2 Eastern Suburbs JDA 1.6 26.8 3 Western Suburbs JDA 0.8 15.0 3 Pune Own 0.6 6.2 2 Pune Thane Bangalore LODHA BUILDING A BETTER LIFE JDA 0.9 6.8 3 Own 0.8 8.6 2 JDA 1.2 9.3 2 8.1 120.3 With seven new location launches, well placed to meet full-year pre-sales guidance 1st Bangalore launch in Q3 19 6#1188 02 Growth Drivers Palava 10#12Long-term growth opportunity: Real Estate to grow ~2x faster than the Indian economy USD -3tn USD -7-8tn 2.5x GDP Growth FY22 FY31 FY22-31 Real Estate Contribution 6-7% to GDP FY22 13-15% FY31 Doubling of contribution FY22-31 ~5x USD 200bn USD -1tn Real Estate Industry Size (20% CAGR) FY22 FY31 Housing to be key driver of and key beneficiary from GDP growth LODHA Source: Niti Aayog, IBEF.org BUILDING A BETTER LIFE FY22-31 11#13100 mn new households to become 'home ownership capable' this decade Annual HH Income 2021 HH Category GDP: USD 3tn 2030 GDP: USD 7-8tn Per capital income seen rising ~2.5x over FY20-32 HH: 296mn HH: 386mn (INR mn) >2.8 High Per Capital Income (USD) 9mn (3%) 23mn (6%) 6,000 68mn 5,000 0.5-2.8 Upper Mid 152mn (39%) (23%) 4,000 3,000 0.2-0.5 Lower Mid 85mn (29%) 119mn (31%) 2,000 2,000 92mn 1,000 <0.2 Low 134mn (45%) (24%) FY20 LODHA BUILDING A BETTER LIFE Once in a country's lifetime opportunity! Source: WEF/Future of Consumption report, EY; HH: Household FY22 FY24 FY26 FY28 FY30 12 FY32 4,819#142012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 60 50 40 30 20 10 20 1950 1960 1970 1980 2020 2030 2040 2050 Strong affordability drives conversion of housing need to demand Rapid urbanization to create need for quality urban housing India Urbanization (%) Family nuclearization Urban Household size Large no of educated workforce added every year Total placements from AICTE approved institutes (in '000s) Improved affordability to support demand Affordability ratio¹ No of students graduating every year from AICTE affiliated colleges: ~1.5mn 4.6x 4.4x 4.1x 796 798 ! 815 3.8x 3.7x 674 702 723 716 711 3.5x 613 3.3x 3.3x 560 3.2x 3.2x As long a housing price growth is slightly below white collar salary growth, housing demand will sustainably grow LODHA Source: United Nations, India Census, AICTE, HDFC BUILDING A BETTER LIFE Note: 'Affordability index is the ratio of property price to annual income 13 4.0 1981 5.6 5.2 4.8 4.4 1991 2001 2011 2021E 2026E#15Other industry tailwinds ✓ Consolidating supply unlikely to keep pace with accelerating demand, creating lot of opportunities for Tier-1 developers O On the demand side, housing sales in top 7 cities to reach ~1mn units by CY30 from ~360k in CY22 O Consolidation wave due to policy reforms, liquidity crisis and Covid disruption led to: ☐ 60% reduction in developer count ☐ - Market share gains for listed developers – from 6% in FY17 to 17% in FY22 ✓ Mortgage an enabler of demand not an inducer of demand O Conservative Central Bank, allows only plain vanilla mortgage product – LTV <75% & no teaser rates - ○ - A floating rate product; rate cycle well understood by homebuyers – Interest rate change modifies tenure, not EMI ✓ Construction cost inflation not a risk to margin O Construction costs typically forms only 25% to 45% of sales price - of which one-third related to skilled & semi-skilled labor which faces low risk of inflation 。 Commodity inflation generally of short cycle - 3 years of construction provide flexibility to manage costs across project lifecycle LODHA BUILDING A BETTER LIFE 14#16'20:20' Action Plan INR bn Focus to deliver ~20% Pre-sales CAGR & 20% ROE with net debt ceiling of 0.5x D/E and 1x D/OCF LODHA BUILDING A BETTER LIFE -20% CAGR 121 FY23 Pre-Sales -210 ~300bps ~17% FY26 FY23 RoE -20% FY24 15#17Significant headroom for growth in core markets of MMR & Pune MMR Market share by decade end -20% -10% CAGR ~1,000 Market Size Likely market share by FY26 FY26 Pre-sales potential LODHA BUILDING A BETTER LIFE ~1,500 FY22 FY26 10+% market share ~15% ~225 Pune -15% ~10 % CAGR ~350 ~500 Bangalore -15% -10% CAGR -400 INR bn ~600 FY22 FY26 FY22 FY26 -8% -40 -2% ~12 Keeping our growth with conservative capital structure approach in mind, guiding for ~20% pre-sales CAGR i.e. INR ~210bn by FY 26 against higher potential basis market share 16#18Township growth set for a significant leap INR bn ✓ Two large township projects at Palava & Upper Thane with land already paid for - 4300+ acres of surplus land ✓ Annuity like cashflow with ~50% cash margin ✓ Multiple asset classes - O o High quality residential with exceptional amenities o Multiple schools & Hospitals Office spaces, Mall & High street retail Life sciences hub Industrial & warehousing parks ✓ Multiple product innovations such as Plotted Development, Crown (entry-level housing), Signet (boutique offices) catering to diversified customer base Highest ever Pre-sales in FY23 11 FY21 2x 23 19 FY22 FY23 Collections to ramp-up with the rising pre-sales trajectory 2.2x 14 10 22 FY21 FY22 FY23 LODHA BUILDING A BETTER LIFE 17#19Ongoing infra projects (Airport, Metro, Bullet Train etc.) to supercharge Palavas' growth...on the lines of Gurgaon Virar Extended Western Suburbs Western Suburbs Upper Thane Extended Eastern Suburbs Thane Dombivli Thane Station 1 Kalyan Project Likely completion & impact Mumbai Trans Harbor Link Airoli Katai Naka Freeway Navi Mumbai International Airport - Line 12 CY23 Brings South Mumbai closer - CY24 Cuts travel time b/w Mumbai/ Airoli & Palava by 20 mins CY24 - Boost to economic activity around Palava (35mins) CY27 - Three station within Palava, connected to suburban metro network Goregaon + Mulund Airoli PALAVA Katai Kalyan Taloja Metro MUMBAI Eastern Suburbs Navi Mumbai Central Mumbai BKC Taloja + Sewri South Mumbai LODHA BUILDING A BETTER LIFE Alibaug Mumbai Ahmedabad Bullet Train CY28 1st station after BKC at - Palava, travel time -15mins Mulund Goregaon Link Road Chirle Junction PUNE Virar - Alibaug CY28 - Brings Western Suburbs closer to Palava CY30 Puts Palava at center Multimodal Corridor of major commercial trade route 18#20Building annuity income portfolio Growing facilities management business with digital services layer Have a captive base of 60,000 households with high spending power; to grow to 250,000+ by 2030 Pilot initiated for digital services app servicing wider gambit of resident needs. LODHA BUILDING A BETTER LIFE Facilities Management Digital Infrastructure Annuity income Pan-India warehousing & industrial park platform Targeting 25 msf area; 5.7 msf under development (Sep-23) Commercial Select high quality office and retail portfolio Targeting INR ~5bn of net annual income by FY26 and INR ~15bn by FY31 19#21Digital Infra.: potential to generate significant recurring income Recurring income from lease as well as outright sale DI Platform - Significant traction from marquee users for leasing at our DI Park (in mn Sq ft.) Area Under Development Area (msf) Notable Clients 5.7 Area Under Construction 1.4 Skechers, Schlumberger ✓ Skechers & Schlumberger facilities to start generating rent from 3QFY24 ✓ Pursuing land acquisition in NCR, Maharashtra & Bengaluru for the platform Land sales generating INR 5-7bn cashflow annually (INR bn) Jan-21 to Sep-23 Q2FY24 Cashflow from land sales 16.2 0.6 Digital infra boosting Palava Ecosystem ✓ Added one more industry (Cold Storage) to the Palava Ecosystem, showcasing Palava's potential O Signed definitive agreement with NewCold, one of the largest automated warehouse & cold chain logistics companies globally at Palava for INR 1.5bn ✓ Aptar Pharma & Flyjack (outright sold) along with Schlumberger & Skechers to be operational in FY24, boosting economic activity & job creation at Palava ✓ Strong land demand from end users of diverse industries о E-Commerce, Fashion & Sportswear retailers, Consumer Goods, 3-PL, Logistics, Data Center, EV Ecosystem, FMCG, Engineering Goods, Life Sciences, etc. LODHA BUILDING A BETTER LIFE 20#22Commercial & retail assets with annual rent potential of INR ~2.6 bn Area in msf Location Leasable area^ Area Leased^ Status One Lodha Place iThink Palava Palava Mall Xperia xperia Worli (World Towers) Palava (Office) Xperia Mall 0.73 0.21 0.58 0.15 0.42 0.39 Ready 0.43: Under development (Est. completion in 2023) Operating Annualized Rental Income Potential INR 2,000+ mn p.a INR ~270mn* LODHA BUILDING A BETTER LIFE * Basis Sep-23 monthly rentals; ^excluding area sold to 3rd parties INR 300mn * 21#23ESSAI THE NEST 03 Performance Update Upper Thane 22#24Operational Performance ■ For Sale Others* 35.3 31.5 20% 34.5 28.9 2.1 msf Q2FY23 23.8 16% 60.0 68.9 66.6 24% 53.5 Pre-Sales 2.6 msf 4.4 msf Q2FY24 27.5 Q2FY23 Q2FY24 1HFY23 5.4 msf 1HFY24 51.5 Collections 49.9 3% LODHA BUILDING A BETTER LIFE *Others include rental asset sales, sale of land for digital Infra & govt. infra and tenancy 1HFY23 1HFY24 INR bn 23#25Pro-forma P&L (basis operating performance) Particulars Pre-sales INR Bn 120.6 FY23 FY24E 1HFY24 % INR Bn % INR Bn % 145.0 68.9 Embedded EBITDA 38.6 32% 43.5 30% 20.7 30% D&A Finance Cost PBT 0.9 10.0 1.0 7.5 0.5 4.1 27.7 23% 35.0 24% 16.0 23% Taxes (assumed rate: 25.2%) 7.0 PAT RoE LODHA BUILDING A BETTER LIFE 20.7 ~16.7% 8.8 17% 26.2 ~19.6% 4.0 18% 12.0 17% 24#26Financial Performance 17.7 17.5 -1% Q2FY23 Q2FY24 5.5 5.3 5% 30% Revenue 44.4 1HFY23 -24% 33.7 1HFY24 14.3 -29% 10.2 Adj. EBITDA 32% 32% Q2FY23 Q2FY24 30% 1HFY23 1HFY24 3.7 7.2 -42% 2.1 Adj. PAT -47% 3.8 19% Q2FY23* 12% Q2FY24 16% 1HFY23* 11% 1HFY24 INR bn Lower Adj. EBITDA & PAT Margin in 1HFY24 as (i) Revenue recognized is ~50% of pre-sales, (ii) overhead costs being linked to pre-sales (accounted largely in the quarter of incurrence) is higher by ~800bps Contracts entered w.e.f. 1st April 2023 qualify for revenue recognition under POCM (Progressive). Financial performance to reflect underlying business by FY26-27 as prior period projects get completed LODHA BUILDING A BETTER LIFE Adj. EBITDA = After Grossing up of Finance cost included in cost of project XX% Adj. EBITDA margin & PAT margin Adj. PAT = before impact of Forex and Exceptional Items 25 *Exceptional Items: Provision against UK investment for Q2FY23 and 1HFY23#27Micro-market performance for Q2FY24 Micro-markets South & Central INR bn Average Sales Pre-Sales# Collections* Price (INR psf) Construction spends Area Completed (Mn. sq. ft.) 15.7 33,066 9.2 1.9 Thane 3.3 10,636 4.0 1.4 0.5 Extended Eastern Suburbs 4.4 6,599 5.8 3.0 Western Suburbs 2.1 16,152 2.1 0.5 Pune 4.7 7,967 2.8 0.7 Eastern Suburbs 4.4 20,045 2.0 0.6 Extended Western Suburbs Offices & Retail (for rent) 0.3 Land Sales Total LODHA BUILDING A BETTER LIFE 0.5 0.4 ...0 0.1 0.4 0.1 0.6 0.2 35.3 27.5 8.5 0.5 # Pre-sales includes DM Sales *Collections from DM sales not included 26#28Micro-market performance for 1HFY24 Micro-markets South & Central INR bn Average Sales Pre-Sales# Collections* Price (INR psf) Construction spends Area Completed (Mn. sq. ft.) 27.3 33,177 17.6 4.2 Thane 6.3 10,528 7.7 3.2 0.5 95 Extended Eastern Suburbs 10.5 6,553 10.9 6.7 0.7 Western Suburbs 4.8 16,080 4.1 1.0 Pune 9.6 7,751 4.6 1.3 Eastern Suburbs 8.0 19,808 3.2 1.2 Extended Western Suburbs 0.1 9,066 0.9 0.3 Offices & Retail (for rent) 1.1 1.1 0.4 Land Sales 1.2 1.5 - 0.4 Total LODHA BUILDING A BETTER LIFE 68.9 # Pre-sales includes DM Sales *Collections from DM sales not included 51.5 18.5 1.2 27#29Launches in 1HFY24 Micro-market Own/ JDA Project Launch Period Area (Mn.Sq.ft) Est. GDV (INR bn) Pune Western Suburbs JDA Q1FY24 1.1 8.2 JDA Q1FY24 0.3 4.1 Extended Eastern Suburbs Own Q1FY24 0.4 2.8 Eastern Suburbs JDA Q2FY24 0.5 10.6 Thane Own Q2FY24 0.3 4.5 Thane JDA Q2FY24 0.2 2.4 Extended Eastern Suburbs Own Q2FY24 0.6 3.7 Pune JDA Q2FY24 0.3 2.5 Total 1HFY24 LODHA BUILDING A BETTER LIFE 3.7 38.7 28#30Business Development: 80%+ of annual target achieved in H1 Micro-market MMR South Central Period Added Saleable Area (msf) Est. GDV Q1FY24 4.3 74 MMR- South Central Q1FY24 1.1 16 MMR South Central Q1FY24 0.4 12 MMR _ Western Suburbs Q1FY24 0.3 10 Bengaluru - South Q1FY24 1.0 8 MMR Eastern Suburbs Q2FY24 0.7 13 - MMR Western Suburbs Q2FY24 0.5 10 10 LODHA BUILDING A BETTER LIFE 8.3 143 INR bn 29#31Lodha: Micro-market wise supply Planned Inventory Launches Residual Collections Micro-markets from Sold Ready unsold Ongoing unsold In next 12 months^ Beyond 12 months Land Bank units Own Land JDA Projects Own Land JDA Projects INR bn Mn. Sq. ft. Acres South & Central 34.4 24.1 64.0 0.3 1.0 0.9 6.1 Thane 11.1 2.6 28.6 1.1 3.3 Extended Eastern Suburbs 22.0 21.4 30.4 3.0 46.1 4,000+ Western Suburbs 8.1 1.8 9.2 1.2 0.6 Pune 14.2 0.7 16.0 0.6 1.5 0.1 1.5 Eastern Suburbs 15.1 31.0 0.4 1.8 1.1 2.3 I Extended Western Suburbs 0.9 0.6 Bangalore Offices & Retail (for rent) 0.7 29.6 2.5 1.2 1.1 7.2 Digital Infra. 0.1 300 acres* Total 106.6 80.3 182.4+ 300 acres 5.3 6.7 58.7 11.6 4,000+ LODHA BUILDING A BETTER LIFE ^as on Sep-23 *Includes ~70 acres land under JV with Morgan Stanley (MDL interest 25%) and 110 acres in JV for Digital Platform (MDL interest 33%) 30#32Market wise completion plan of ongoing 'for sale' projects (1/2) FY24 FY25 FY26 >= FY27 Mn.sq ft. Sold/ Market Total area Unsold* Own JDA Own JDA Own JDA Own JDA Sold-PCM 0.19 0.15 0.02 0.00 0.11 0.07 South & Central Mumbai 3.20 Sold-POCM 0.00 0.12 0.01 0.03 0.04 0.17 Unsold 0.15 0.68 0.46 0.44 0.06 0.48 Sold-PCM 0.89 0.65 0.59 0.01 0.03 Thane 5.30 Sold-POCM 0.03 0.10 0.27 0.11 0.04 Unsold 0.08 0.41 0.44 1.15 0.51 Sold-PCM 2.31 2.10 0.36 0.10 Extended 11.02 Sold-POCM 0.22 0.68 0.41 0.04 Eastern Suburbs Unsold 0.37 . 0.86 0.83 2.74 Sold-PCM 0.03 0.09 0.50 0.04 0.13 Western Suburbs 1.63 Sold-POCM 0.01 0.13 0.16 Unsold 0.07 0.07 0.06 0.34 I LODHA BUILDING A BETTER LIFE *Sold/ Unsold data is as of Sep-23 31#33Market wise completion plan for ongoing 'for sale' projects (2/2) Mn.sq ft. FY24 FY25 FY26 >= FY27 Market Total area Sold/ Unsold* Own JDA Own JDA Own JDA Own JDA Sold-PCM 0.18 0.33 I Eastern Suburbs 2.73 Sold-POCM 0.04 0.08 Unsold I 0.13 0.20 0.20 0.34 1.23 Sold-PCM I 0.20 1.38 0.16 0.09 . . Pune 5.10 Sold-POCM I 0.06 0.20 0.29 0.47 Unsold Sold-PCM Extended Western Suburbs 0.40 Sold-POCM Unsold I I I 0.22 0.40 0.45 0.63 0.25 0.31 0.32 0.01 0.07 Sold-PCM 3.42 3.51 2.06 1.17 0.56 0.22 0.30 Total 29.37 Sold-POCM 0.25 0.98 0.37 0.98 0.73 0.18 0.80 Unsold 0.59 2.31 0.59 2.24 1.62 3.95 2.53 LODHA BUILDING A BETTER LIFE *Sold/ Unsold data is as of Sep-23 32#3403 Financials Lodha Amara - Club House 33#35Financial highlights for Q2FY24 Particulars Q2FY24 Q2FY23 Growth % 1HFY24 1HFY23 Growth % Revenue Adj. EBITDA^ 17.5 17.7 (0.9)% 33.7 44.4 (24.2)% 5.5 5.3 5.2% 10.2 14.3 (28.8)% Adj. EBITDA (%) 31.6% 29.7% 190bps 30.2% 32.1% (190)bps Adj. PAT* 2.1 3.7 (42.4)% 3.8 7.2 (47.3)% Adj. PAT (%) 12.0% 19.5% (750)bps 11.1% 15.6% (450)bps Networth 130.5 Net D/E (x) 0.52x LODHA BUILDING A BETTER LIFE ^Adjusted EBITDA = After Grossing up of Finance cost included in cost of project *Adjusted PAT = PAT ex. Forex & Exceptional Items INR bn 34#36Consolidated Summary Balance Sheet ASSETS As at 30-Sep-23 As t 31-Mar-23 EQUITY AND LIABLITIES As at 30-Sep-23 As at 31-Mar-23 Equity Share Capital 9.6 4.8 Tangible Assets 13.3 13.0 Other Equity 120.2 121.8 Intangible Assets 5.3 5.3 Non-Controlling Interests 0.6 0.6 Investments 5.7 2.4 Total Equity 130.5 127.2 Loans 11.1 11.5 Borrowings 87.2 90.5 Inventories 311.5 301.2 Trade Payables 22.5 21.0 Trade Rec. (Incl. accrued rev.) 12.4 12.4 Other Financial Liabilities 51.3 45.6 Cash and Bank Balances 19.4 19.3 Provisions 0.3 0.3 Other Financial Assets 13.1 10.7 Current Tax Liabilities (Net) 0.0 0.4 Non-Current Tax Assets 1.9 2.9 Deferred Tax Liabilities (Net) 0.4 0.3 Deferred Tax Assets 1.7 2.4 Other Liabilities 118.0 106.3 Other Assets 14.8 10.4 Total Liabilities 279.7 264.3 Total Asses 410.2 391.5 Total Equity and Liabilities 410.2 391.5 LODHA BUILDING A BETTER LIFE INR bn 35#37PARK WICKEY 238 TARGET 239 05 Company Overview The Park 36#38Eminent Board of Directors Abhishek Lodha Managing Director Holds a master's degree in science (industrial and systems engineering (supply chain & logistics) from Georgia Institute of Technology Worked with McKinsey & Company, USA Mukund Chitale, Independent Director and Chairman ■ Director on the Board of L&T Former President of ICAI and Chairman of Ethics Committee of BSE Rajinder Pal Singh, Non-Executive Director ■Director on the Board of Maruti Suzuki ■ Former Chairman and Managing Director of Punjab & Sind Bank and Chairman of NHAI Ashwani Kumar, Independent Director Former Chairman and Managing Director (CMD) of Dena Bank and board member of the LIC President of the Indian Institute of Banking and Finance Lee Polisano, Independent Director Founding partner and President of PLP Architecture, UK; Fellow member of the American Institute of Architects Globally recognized for architectural and urban design work, emphasizing underlying concern for environment Rajeev Bakshi, Independent Director ■ Former MD & CEO of Metro Cash & Carry and formerly associated with Pepsico, Cadbury Schweppes ■Currently on the board of Cummins India, Dalmia Bharat Sugar Harita Gupta, Independent Director ■ Formerly associated with Microsoft and NIIT Technologies ■Currently leading APAC and Global Enterprise Business at Sutherland Global Services Rajendra Lodha, Whole-Time Director ■31 years of experience in all facets of real estate development ■Bachelor's degree in civil engineering from M.B.M. Engineering College, University of Jodhpur Raunika Malhotra, Whole-time Director, President - Marketing and Corporate Communications 15+ years of experience in leadership, corporate strategic planning, consumer insights and brand management Formerly worked with ECS Limited and Adayana Learning Solutions in strategic consulting LODHA BUILDING A BETTER LIFE 37#39Strong management team Shaishav Dharia Sushil Kumar Modi CEO Townships, Director - GDI Chief Financial Officer Platform Deepak Chitnis Chief Designer ■Previously served as senior architect ■Formerly worked at GMR, Aditya 27+ at Oberoi Constructions Pvt Ltd 24+ ■Formerly worked with McKinsey & Company and Logic Tools 26+ Birla Group & JSW Steel Prateek Bhattacharya Prashant Bindal Rajat Kumar Singh CEO - Western Suburbs & Thane Chief Sales Officer President- Finance 23+ Formerly served as Expert Associate Principal at McKinsey and Co. ■Formerly part of Spice Mobility, 24+ Walmart India and Hindustan Coca Cola Beverages 27+ Rajib Das Rajesh Sahana President - Eastern Suburbs & Navi Mumbai President - Customer Experience 18+ ■Formerly worked with Godrej 28+ Group, Indiabulls Properties Formerly worked with Globacom, Reliance Jio, Bharti Airtel, ABN Amro & Bank of America 27+ Tikam Jain Janhavi Sukhtankar CEO - Pune President - Human Resources ■Grown at Lodha with 25 years of association, last position held 30+ as Head CPT 24+ Formerly held senior positions at Greenpeace International and Sanofi India 30+ Rajendra Joshi Rajesh Agrawal - CEO Bangalore. President - Procurement Const. Mgmt. ■Formerly associated with Brigade ■Formerly served as Group CPO at Team 25 31+ Enterprises, Mahindra Lifespaces 35+ Adani Ent. & held senior positions at RIL, JSW + ■Formerly worked with Adani Group, Reliance Group & GMR Shyam Kaikini President - Hospitality & Property Management ■Formerly associated with Taj Hotels, Jumeirah International Mark Griffiths Head-Pre-Constructions, QA & EHS ■Formerly worked with Leighton Contractors, Baulderstone & Hornibrook COOS Satish S: Ex-Arabtec. ■Shrikanth K: Ex- Phoenix ■Yogendra B: Ex- L&T ■Brijmohan C: Ex-Arabtec Devender Singh Rawat CEO-GDI Platform 25+ ■Formerly CEO of Bharti Infratel, also worked with Ericsson, Huawei 19+ Ramit Chopra Head - BD & Leasing, GDI Platform Formerly worked with Embassy Industrial Parks, Indospace Bhaskar Kamat Chief Land Officer, GDI Platform ■Formerly worked with DLF, Godrej Properties LODHA BUILDING A BETTER LIFE xx Experience in the industry 25+ 38#40Our Sustainability Strategy: Do Good, Do Well Reduce, Reuse, Recycle Collaboration and Engagement Product and Supply Chain Operations (scope 3) and assets (scope 1,2) Customers & Partners Avoided Emissions (scope 4) Decarbonisation Our Stakeholder Communities Identify initiatives that enhance our impact and brings together our larger set of stakeholders to partner in the journey with us OUR ESG GOALS G Ensure sustainability in our product E and operations by positively impacting the natural environment Reduce Demand (Active/Passive) Green Mobility, Afforestation Conserve, Preserve, Rejuvenate Water Resilence S G Positively impact our people and community through utmost respect for human rights, diversity and inclusion Resilience Environment Asset Safety Responsibility Analyse, Adapt, Recover Ethical Business Practices Drive industry transformation by leading ethically and bolstering trust through high degree of transparency & accountability Code of Conduct, Integrity, Fairness Know more about Sustainability at Lodha LODHA BUILDING A BETTER LIFE Board diversity and independence Social Do Good, Do Well Governance Predictable & Sustainable Performance Our People Employees and Workers Transparency Board Effectiveness Enterprise Risk Management Education & Livelihood, Promoting women in workforce Learning & Growth Health & well-being, Human Rights Best-in-class reporting, Benchmarking Identify and mitigate the key material risks 39#41We are best-in-class globally when it comes to measured ESG performance Macrotech Developers Limited Real Estate Management & Development S&P Global CSA Score 2023 A key component of the S&P Global ESG Score 78/100 As of September 22 2023. The S&P Global Corporate Sustainabilty Accessibility (CSA) Score is the S&P Global ESC Score without the incuson of any modeling sporcaches. Company scores can be compared tother se peers in the same Ircustry. Leam more et spylobal.com/esg/scores S&P Global Sustainable1 S&P Global Corporate Sustainability Assessment 2023 Second highest CSA score out of ~200 companies in Real Estate Management and Development industry (as on 22nd Sep 2023) GRESB 2023 GRESB Development Benchmark 2023 Ranked 1st in Asia with a 5-star rating and score of 100/100 in the category Residential: Multi-Family | Listed GRESB 2023 GRESB Standing Investments Benchmark 2023 Ranked 8th in Asia with a 5-star rating and score of 90/100 in the category Diversified - Office/Retail | Listed Rated MORNINGSTAR SUSTAINALYTICS Sustainalytics Received ESG Risk Rating of 13.8, was assessed to be at "Low-Risk” category of ESG risk severity. Globally ranked 9th in the Real Estate Development sub-industry. MP World Benchmarking Alliance WBA Buildings Benchmark Ranked 4th among the 50 keystone buildings sector companies globally FTSE4Good FTSE4Good Index Series Included in the FTSE4Good Index Series in the June 2023 index review LODHA BUILDING A BETTER LIFE 40#42Our commitment to Sustainability: Progress across key focus areas Environment Organized the first edition of RMI-Lodha Sustainability Conclave in September 2023; Brought experts together for co-creating actionable strategies which can accelerate net-zero transition of the built environment Green Certification received for ~42.6 million sqft across projects; process ongoing for ~49.4 million sqft across 35 residential projects 98% of renewable energy share in our total energy consumption, across construction activities and standing assets as of Sep-23 ~3 MWp of on-site solar panel installations completed and work-in-progress Social First batch of ~100 students of Lodha Genius Programme Launched the Lodha Development Centre (LDC) to impart hands-on training and new age practical knowledge to our associates Received Great People Managers Awards 2023 in association with Economic Times and NHRDN (National Human Resources Development Network) Governance • Robust Enterprise Risk Management Framework to proactively manage key risks to ensure growth with stability Robust policies, procedures and internal controls in place, which are reviewed and updated periodically Maintained global leadership position across sustainability benchmarks through regular transparent reporting Highest level of disclosures – only company reporting Embedded EBITDA Margin on its Pre-sales - LODHA BUILDING A BETTER LIFE ^Excluding construction workforce 41#43RMI-Lodha Sustainability Conclave RMI-Lodha Sustainability Conclave: Two-day event serving as a platform for industry experts and visionaries to synergise and create actionable strategies for accelerating Net-Zero transition of the built environment LODHA BULONG A BETTER LIFE ELODHA BEING A BETTER CMD Bechcity M. Manoj Rustapi Ver Print of Sutinability & 15W Cen LODHA LODHA BUILDING TCH T RMI njeli Baniol Dr. Jane Creyts Avgoro Cipt ins meritus, RMI Mr. Amory Lovins Co-founder & Chairman, RMI Plenary Discussion - Blueprint to Reality Policy and supply chain strategies for Net-Zero Transition in Built Environment E LODHA NET ZERO URBAN ACCELERATOR Gateway to India's Dymaxion KNOWLEDGE PARTNER MRMI INDIA Net Zero Urban Accelerator - joint initiative by Lodha & RMI established with a vision to redefine urban development and lead India's transition towards Net Zero by 2070 Five focus areas: Embodied Carbon, Passive and Active Cooling Solutions, Equipment Efficiency, Clean Energy and Clean Mobility First edition of RMI-Lodha Sustainability Conclave organized in Sep '23, bringing together visionaries to co- create solutions for a low- carbon future Launched 'Gateway to India's Dymaxion' - a publication highlighting initiatives by the Accelerator, to build integrative sustainable solutions at city scale LODHA BUILDING A BETTER LIFE 42#44World Towers ABOVE IT ALL 06 Annexure ABOVE 43#45Significant opportunity to scale up in other micro-markets of MMR Market leading position in most micro-markets, with potential for growth in other regions Market share by absorption in INR bn 1. Extended Western Suburbs Vasai Developer Developer First Market share (%) 12.3% Naigaon 1 Bhayander ELODHA 5.4% LODHA Second Third 4. Thane Market share (%) 19.6% 11.9% 7.7% Third 4.8% Mira Road Absorption: INR 24bn Ghodbunder 4 Kalyan Thane Added 2 projects with GDV of INR 15bn Absorption: INR 101bn 5. Extended Eastern Suburbs Dombivali 2 2. Western Suburbs Pre-IPO, had limited presence Added 5 projects with GDV of INR 52bn Absorption: INR 170bn Wagle Estate Developer Asangaon LODHA Malad Airoli Goregaon Ghansoli 5 Mulund Andheri Powai Vikhroli Bandra Vashi Developer 3. South Central Mumbai 1 LODHA Second Third Kurla 7 CBD Belapur Market share (%) Prabhadevi Worli Dadar 33.9% 13.4% 9.9% Lower Parel 3 Added 7 projects with GDV of INR 177bn Absorption: INR 126bn Colaba Second Third Market share (%) 20.2% 4.8% 3.4% Absorption: INR 73bn 6. Navi Mumbai Potential growth micro-market for Lodha Absorption: INR 111bn 7. Eastern Suburbs Pre-IPO, had no presence Added 10 projects with GDV of INR ~175bn Absorption: INR 173bn Tied up INR ~403bn of GDV and development potential of ~20 msf across 24 projects in various micro-markets of MMR LODHA Source: Report prepared by Anarock Property Consultant Private Limited Note: Market shares and absorption data is average for 2015-20 absorption BUILDING A BETTER LIFE 44#46Pune - fourth largest housing market of India... Accelerating growth in INR 365bn market by establishing presence across multiple locations 1. Pimpri-Chinchwad Pre-IPO, had 1 project With annual sales potential of INR >2bn Absorption: INR 85bn 2. North-West Pre-IPO, had no presence Added 1 projects with GDV of INR-26bn Absorption: INR 100bn 3. South-West Potential growth market for Lodha Absorption: INR 55bn 1 Kurli Moshi Nigdi Bhosari 5 4. Central Pre-IPO, had no presence Added 1 projects with GDV of INR -4bn Absorption: INR 10bn Pimple 4 Wagholi Wakad Viman Nagar 5. North-East Hinjewadi Shivaji Nagar Balewadi Mahalunge Baner Aundh 2 Koregaon Park Deccan Kharadi Mundhwa Pre-IPO, had no presence Added 1 projects with GDV of INR -20bn Manjari Swargate Bavdhan Kothrud Hadapsar Absorption: INR 75bn Warje ● Pune Cantonment Erandwane 6 Kondhwa Anand Nagar Undri Fursungi 6. South-East Ambegaon Katraj 3 Pre-IPO, had no presence Added 1 projects with GDV of INR ~12bn Absorption: INR 40bn Tied up INR ~60bn of GDV with development potential of ~7.6 msf across four projects in various micro-markets of Pune LODHA Source: Absorption data for FY22 from CRE Matrix BUILDING A BETTER LIFE 45#47..will contribute to growth in a sustainable manner ✓ Large & resilient market with a play on IT and manufacturing sector upswing ✓ Historically, we have only present through Lodha Belmondo in Pune (Pimpri-Chinchwad) Signed four projects at NIBM, Hinjewadi, Bund Garden & Kharadi; advanced stage of signing definitive documents for multiple projects ✓ Multiple successful launches reflects strong recognition of brand Lodha Bella Vista, off NIBM Road (South-East) in Aug'21, sold INR 7.5bn in 25 months (69% of launched inventory) Giardino at Kharadi (North-East) in Nov-22, sold INR 8.3bn in 11 months (64% of launched inventory) Panache at Hinjewadi (North-West) in March-23, sold INR 5.5bn in 7 months (57% of launched inventory) ✓ Medium term aim to capture ~15% market share LODHA BUILDING A BETTER LIFE 46#48Entered Bangalore housing market….. Market size: INR ~400bn 3 Micro-market Market Size (INR bn) 4 Yeshwanthpur 1 South 185.0 Yelahanka Jakkur Hebbal Hennur 2 Malleswaram Banaswadi Tumkur Road Old Madras Road 2 East 80.0 Vijay Nagar Rajaji Nagar K.R Puram 3 North 112.0 5 Richmond Road Langford Town MG Road Marathahalli Lavelle Whitefield Road 'Old Airport 4 West 20.0 Koramangala Jaya Nagar HSR Lavout 5 Central 3.0 Kanakpura Road Sarjapur Road Total LODHA BUILDING A BETTER LIFE Source: Knight Frank, Industry 400.0 1 47#49...strategic choice to ensure brand presence in market with good long-term prospects ✓ Key reasons for entering the market O Fragmented market with Top 5 players accounting for ~30% market share O Market with steady sales Core hub for Technology in India Signed two projects through JDA with development potential of ~2.3 msf and GDV of INR 20bn; targeting to launch both in FY24 ✓ Creating dedicated team with local capability based in Bengaluru ✓ Focus on gradual growth focused on capital light JDA model LODHA BUILDING A BETTER LIFE 48#50Supply side consolidating - unlikely to keep pace with accelerating demand Consolidation wave due to policy reforms and liquidity crisis... 60% Developers count >50% Incremental supply from branded developers ...has led to market share gains for listed developers 3x 17% Remaining Tier - 2 & 3 players develop: ✓ Small-sized projects (< INR 5bn) ✓ One at a time ✓ Take longer (5-7 years) to complete Multiple forces leading to consolidation ✓ 6% FY17 FY22 Regulatory push: RERA, Demonetization, GST, Amendment to Benami Act. Housing sales in top cities to reach 1mn by 2030 ~1mn ✓ Funding squeeze for Tier - 2 & 3 developers: ■NBFC's exiting market after large losses wholesale lending bubble popped after IL&FS implosion ■Inability to sell during construction ✓ Consumer loss of confidence with Tier - 2 & 3 developers: ~15% CAGR ~360K ~300K ■ Having burnt their lifetime savings ■Failure to deliver or untimely delivery with poor quality CY21 CY22 CY30 LODHA Source: Anarock BUILDING A BETTER LIFE 49#5189% Steady as it goes: Mortgage an enabler, not inducer of demand ✓ Conservative Central Bank, low risk mortgage market: LTV < 85%, no teaser rates ✓ Rate cycle seem to have peaked; pivot likely in 2HFY24 ✓ Strong performance of mortgages through all parts of the cycle - Intense competition for safe haven mortgage assets leading to plentiful availability ✓ A floating rate product; rate cycle well understood by homebuyers. Interest rate change modifies tenure, not EMI ✓ Salary growth of 8-10% enables mortgage repayment in 7-8 years 11% India 18% 20% China Thailand Mortgage as % of GDP 34% Malaysia 39% 44% 45% 52% Japan Singapore Germany USA 68% UK Low penetration of mortgage provides significant room for growth Housing sales driven by fundamental need and nominal price growth, not by mortgage inducement LODHA Source: HDFC Limited, IMF; BUILDING A BETTER LIFE 50 Netherlands#52Low risk to margins from construction cost inflation ✓ Construction costs typically forms 25% to 45% of the sales price O Of which, one-third is related to low skilled and semi-skilled labor: plentiful supply though migration from rural areas (250+ mn people estimated to be 'underemployed' in agriculture). Hence, labour inflation is low and keep inflation from being 'sticky' ✓ Commodity inflation, though often sharp, generally of short cycles as demand and supply adjust to new normal, bringing price moderation in the short term Spurt in commodity price due to Russia-Ukraine war is reversing ~3 year period of construction provides flexibility to manage costs across the project lifecycle ✓ Ready and advance under-construction inventory provides hedge against the commodity price inflation LODHA BUILDING A BETTER LIFE 58#53Construction cost – inflation moderation since Mar-22 - Mar'21 to Mar'22 Mar'21 to Sep'23 Commodity/Component % Share in total cost % Change Weighted Impact % Change Weighed Impact Steel 12.9% 35.1% 4.5% -2.0% -0.3% Flooring Tiles 5.0% 23.9% 1.2% 15.3% 0.8% Electrical/Plumbing 11.8% 10.1% 1.2% 4.9% 0.6% Labour 34.4% 3.0% 1.0% 4.9% 1.7% External Windows 3.9% 21.9% 0.8% 7.8% 0.3% RMC Cement 10.5% 6.3% 0.7% 15.5% 1.7% Lifts & Elevators 3.3% 16.6% 0.5% 37.7% 1.2% Carpentry Materials 3.5% 15.5% 0.5% 5.6% 0.2% Painting 3.8% 13.1% 0.5% 32.7% 1.1% Overall ~13.7% ~10.3% Construction cost increase since 1st April 21 at ~4% annualized rate (expected to continue moderating) This, in turn, implies impact on COGS of <2% p.a. for our portfolio LODHA BUILDING A BETTER LIFE 52#54Multiple benefits of consistent housing price increase below wage growth ✓ Improves affordability leading to increased volumes ✓ Leads to significant wealth creation for home owning middle class ('Wealth Effect') O Boosts consumption as consumer confidence increases О Housing is a vehicle for generating retirement surplus; rising home prices enable older population to maintain spending power O Creates an inflation hedge especially for young home owners ✓ Rising home prices have a positive impact on the housing and allied industries which in turn has a big multiplier effect on the economy O Has the highest labor to output ratio O Housing is among the largest employment generators O Has among the biggest multiplier effects on SME segment through supply chain O Highest ability to pull the unskilled masses from the farm & convert them into skilled workforce over time LODHA BUILDING A BETTER LIFE 53#55Key affordable & mid-income projects delivered Unique ability to create destinations K LODHA UPPER THAME Lodha Upper Thane 7773 LODHA BUILDING A BETTER LIFE Lodha Belmondo Lodha Splendora Lodha Amara Lodha Palava 54 54#56Key premium & luxury projects delivered Unique ability to create destinations LODHA Lodha Altamount LODHA BUILDING A BETTER LIFE New Cuffe Parade World Towers Lodha Park 55#57Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Macrotech Developers Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. LODHA BUILDING A BETTER LIFE 56#58Thank You! For any further information, please write to [email protected] LODHA BUILDING A BETTER LIFE 57