#1BRIGADE ENTERPRISES LIMITED Investor Presentation H1 FY21 (CIN: L85110KA1995PLC019126) BRIGADE CUADER EIGATE CITADEL Artist's impression of Brigade Citadel, Hyderabad Artist's impression of Club House at Brigade Citadel, Hyderabad BRIGADE Great Place To Work. Certified JAN2020-DEC 2010 INDIA#2The World of Brigade Who we are Leading property developer in South Indian real estate market with over three decades of experience Reputation of developing Grade A properties Our presence • Business Portfolio of Residential, Lease Rentals and Hospitality • Consistent EBITDA margin of ~26%-28% for the past five years • Ranked amongst the 100 Best Places to Work in India for ten consecutive years by GPTW Institute GIFT City BRIGADE What we stand for Shared Vision: To be a World Class Organization in our Products, Processes, People & Performance Shared Mission: To be the Preferred Developer of Residential, Commercial & Hospitality Spaces in the market in which we operate, without compromising on our values, for the benefit of all our stakeholders . Core Values: QC-First Quality, Customer Centricity, Fair, Innovative, Responsible Socially, Trustworthy Hyderabad Bengaluru Mysore Chennai Kochi Thiruvananthapuram 2#3General Outlook & COVID Impact Macro outlook Company outlook BRIGADE • Fast paced recovery in the Economy, major sectors have witnessed a rebound from covid lows. • Adequate liquidity is available in the financial markets, which has kept the sentiment upbeat. • Government and regulatory interventions like RBI loan restructuring initiatives will help in maintaining stability. • All time low housing loan rate is supporting residential business. ⚫ GDP contraction is expected to be lesser then initially envisaged. • Labour strength has reached 90% of pre-covid levels and is on the uptrend. • Residential segment has witnessed strong performance and is back to pre-covid levels. • Office business remains stable with 99% collections, transactions and enquiries have picked up. Improvement in footfalls in the malls and a marginal uptick in occupancies of hotels. Impact & response ⚫ Hotels continue to be impacted because of the international travel restrictions and subdued domestic travel. Efforts are underway to operationally breakeven at the portfolio level. • Strong collections on the residential business has helped in maintaining a healthy liquidity position for the Group. • Continue to maintain a tight monitoring of the cash flows and efficiency in expenses. 3#4Our Business Segments - share of business by revenue • Real Estate - On Sale Basis 64% BRIGADE Lease Rentals Hospitality 31% 5% ~ Sales volume for Q2 FY21 is and sales value at INR 5,760 Mn 1 Mn sft Strong pipeline of ongoing projects of 15.93 Mn sft and upcoming 3.12 Mn sft to be launched Collections from residential sales was ~INR 4,004 Mn in Q2 FY21 vs ~INR 2,771 Mn in Q1 FY21, an increase of 44% • 99% of rental collection in office portfolio Improved traction in enquiries and healthy pipeline of 1.4 Mn sft Growth of 62% in office revenue in H1 FY21 vs H1 FY20 Witnessed month-on-month growth in footfalls & occupancy in malls Increase in average occupancy to 15% vis-a-vis 11% in Q1 FY20 Four hotels have achieved operational break even in Oct 2020 Witnessing better traction in F&B and banquet business Increase in cash flow from operating activities by 123% and net cash flow by 138% as compared to Q1 FY21 4#5Summary: Ongoing Projects Area in Mn sft BRIGADE Total Project Area 1% O 69% ■Real Estate ■Lease Rentals Hospitality Brigade's share of Project Area 1% 0 73% ■Real Estate ■Lease Rentals ■ Hospitality Projects Project Area Co Share LO/JV share Real Estate projects for sale 7.84 5.82 2.02 Brigade Orchards * 1.82 0.91 0.91 30% Brigade Cornerstone Utopia* 4.00 2.66 1.34 Brigade Residences at WTC Chennai* 0.57 0.29 0.28 Brigade El Dorado* 1.70 1.70 Total Real Estate (A) 15.93 11.38 4.55 Brigade Southfield 0.35 0.21 0.14 Brigade Tech Gardens*^ 3.20 1.63 1.57 WTC Chennai* 2.00 1.02 0.98 Brigade Twin Towers* 1.30 1.30 26% Total Leasing (B) 6.85 4.16 2.69 Holiday Inn Express & Suites, Bengaluru 0.09 0.09 OMR Ibis Styles, Mysore* 0.11 0.11 Total Hospitality (C) 0.20 0.20 Total (A+B+C) 22.98 15.74 7.24 * Projects in SPV ^ 1.2 Mn sft has been completed and is operational in Brigade Tech Gardens 5#6Contents 1 Residential sales back to pre-covid level 2 Healthy leasing pipeline 3 Hospitality performance remains subdued 4 Financial Performance 5 Land Bank BRIGADE 6 Projects Launched and Upcoming Launches Great Place To Work.. Certified JAN 2020-DEC 20 INDIA#7Highlights: Real Estate Q2 FY 21 . Achieved pre-sales of ~1 Mn sft in Q2 FY21 despite pandemic, back to pre-covid level Real estate sales have increased by 135% as compared to Q1 FY21 Average selling price at INR 5,833 per sft in Q2 FY 21 Strong pipeline of 3.12 Mn sft with key projects like : Hyderabad Brigade Citadel Phase I Bangalore Brigade Orchards - Goldspire Block Brigade Eldorado - F Block • Brigade Northridge Phase 2 . • Brigade Cornerstone Utopia - Paradise Block Brigade Gem Chennai Brigade Xanadu Cluster 2 - E,F & L Block Brigade Xanadu Cluster 4 (Wing 1) BRIGADE Artist's impression of Brigade Cornerstone Utopia 7#8Sales Performance - Real Estate QoQ Sales Area ('000 sft) 1,132 1,082 1,054 997 00 Q1 Q2 Q3 FY 2020 421 40 Q4 Q1 Q2 FY 2021 QoQ Sales Value (INR Mn) 6,035 6,512 988 5,933 5,288 10 Q1 Q2 FY 2020 Sales are back to pre-covid run rate of ~1 Mn sft per quarter Q3 63 40 Q4 2,499 10 FY 2021 Q2 22 BRIGADE 5,760 8#9Group Sales Snapshot Quarterly Six Months BRIGADE Particulars Q2 FY21 Q1 FY21 Q2 FY20 Q2 FY21 on Q1 Q2 FY21 on Q2 FY 21 FY 20 H1 FY21 H1 FY20 H1 FY21 on H1 FY20 Area Sales ('000 sft) Residential 970 394 959 146% 1% 1,364 2,053 (34%) Commercial 18 27 38 (33%) (53%) 45 76 (41%) Total 988 421 997 135% (1%) 1,409 2,129 (34%) Sale Value (INR Mn) Residential 5,656 2,233 5,005 153% 13% 7,889 10,557 (25%) Commercial 104 266 283 (61%) (63%) 370 664 (44%) Total 5,760 2,499 5,288 131% 9% 8,259 11,221 (26%) Realization (INR/sft) 5,833 5,956 5,306 (2%) 10% 5,864 5,271 11% 9#10Consolidated synopsis of Real Estate Projects Particulars Ongoing BEL Ongoing SPV BRIGADE Stock Sales Total Projects Projects * In Mn Sft BEL SPV | Total super built-up area of projects on sale basis 13.54 2.39 0.90 0.21 17.04 Less: Landowner share 3.36 3.36 Company share of saleable area 10.18 2.39 0.90 0.21 13.68 Sold till date 5.50 0.95 6.45 To be sold Estimated receipts From sold units 4.69 1.44 0.90 0.21 7.24 INR Mn 56,250 15,813 8,379 1,897 82,339 29,952 5,633 3,694 942 40,222 From unsold units 26,298 10,180 4,685 955 42,118 Collections to date on sold units 14,716 3,345 2,225 922 21,208 Remaining to be collected from sold units 15,237 2,288 1,469 20 19,014 Remaining to be collected from sold and unsold units [A] 41,535 12,468 6,154 975 61,132 Estimated Total Cost to be incurred 43,490 12,749 2,511 602 59,532 Cost incurred till date 17,334 8,739 2,511 602 29,186 Remaining Cost to be incurred [B] 26,156 4,010 30,166 Gross Operating Cash Flows [A]–[B] 15,379 8,458 6,154 975 30,966 Present Borrowings [C] 3,859 1,961 1,109 566 7,495 Net Operating Cash Flows projected [A] - [B] - [C] 11,520 6,497 5,045 409 23,471 * Brigade Orchards and Brigade Residences at WTC Chennai 10#11Contents 1 Residential sales back to pre-covid level 2 Healthy leasing pipeline 3 Hospitality performance remains subdued 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches BRIGADE 11#12Our Leasing Portfolio: Operating Assets Retail 1.07 0.24 Office 2.45 Area in Mn sft 1.02 Leased Out To Be Leased Out BRIGADE Particulars Leasable Area Leased To be Leased Brigade Tech Gardens Phase 1 1.24 0.80 0.44* WTC Bangalore 0.62 0.62 Brigade Opus 0.30 0.20 0.10 Brigade Bhuwalka Icon 0.19 0.19 WTC Kochi 0.77 0.55 0.22 Brigade Financial Centre, Gift City 0.29 0.03 0.26 Orion Mall Gateway 0.83 0.71 0.12 Orion Mall Uptown (formerly, Orion OMR) 0.27 0.18 0.09 Orion Mall Avenue (formerly, Orion East) - BEL Share 0.15 0.12 0.03 Brigade Vantage, Chennai 0.06 0.06 Others 0.06 0.06 Total 4.78 3.52 1.26 *Includes 0.3 Mn sft hard option 12#13Our Pre- Leasing Portfolio: BRIGADE Area in Mn sft Particulars Leasable Area Leased Hard option To be transacted Brigade Tech Gardens Phase 2 1.76 0.18 0.01 1.57 WTC Chennai 2.01 1.37 0.31 0.33 Total 3.77 1.55 0.32 1.90 Actual shot at Brigade Tech Gardens Actual shot at Brigade Tech Gardens 13#14Capex Commitment: Commercial Projects Estimated cost Incurred Balance^ Commercial Lease Brigade Southfield 1,144 788 356 Brigade Tech Gardens* WTC Chennai* Brigade Twin Towers 11,900 10,706 1,194 8,000 6,925 1,075 5,999 594 5,405 Total Commercial Lease 27,043 19,013 8,030 * Through 51% SPV ^ As of Sept'20 BRIGADE (INR Mn) Actual shot at Brigade Tech Gardens Artist's impression of WTC Chennai 14#15Contents 1 Residential sales back to pre-covid level 2 Healthy leasing pipeline 3 Hospitality performance remains subdued 4 Financial Performance 5 Land Bank BRIGADE 6 Projects Launched and Upcoming Launches Great Place To Work.. Certified JAN 2020-DEC 20 INDIA#16Hospitality performance remains subdued All hotels are operational and are approaching break-even in operations Occupancy continues to be low in most of the hotels, averaging at 15% vis-a-vis 11% last quarter • Parent company continues to extend cash flow support to manage operations and debt commitments Continue to timely service all debt commitments post moratorium Witnessing better traction in F&B and banquet business GRAND MERCURE BRIGADE Actual shot at Grand Mercure, Mysore 16#17Capex Commitment: Hospitality BRIGADE 650 Projects Estimated cost Incurred Balance Holiday Inn Express & Suites, Bengaluru OMR* of Keys (INR Mn) Planned Number Expected date of Commencement 640 10 134 Q3 FY21 Ibis Style Mysore* Total Hospitality 730 196 534 151 Q1 FY22 1,380 836 544 285 CHIGH Actual shot at Holiday Inn Express & Suites, Bengaluru OMR Actual shot at Holiday Inn Express & Suites, Bengaluru OMR * Through SPV 17#18Contents 1 Residential sales back to pre-covid level 2 Healthy leasing pipeline 3 Hospitality performance remains subdued 4 Financial Performance 5 Land Bank BRIGADE 6 Projects Launched and Upcoming Launches Great Place To Work.. Certified JAN 2020-DEC 20 INDIA#19Consolidated Financials: Snapshot BRIGADE (INR Mn) H1 FY21 on Q2 FY 21 on Q2 FY 21 on Particulars Q2 FY 21 Q1 FY 21 Q2 FY 20 H1 FY21 H1 FY20 Q1 FY 21 Q2 FY 20 H1 FY20 Revenue 3,221 2,138 7,516 51% (57%) 5,359 14,686 (64%) EBITDA 986 579 2,065 70% (52%) 1,565 3,971 (61%) Finance costs 821 891 939 (8%) (13%) 1,712 1,735 (1%) Profit before depreciation 165 (312) 1,127 153% (85%) (147) 2,236 (107%) Depreciation 561 556 473 1% 19% 1,117 856 30% Profit before share from Associate & Exceptional (396) (868) 653 54% (161%) (1,264) 1,379 (192%) item Add: Profit from Associate 5 10 5 (50%) 15 12 25% PBT (391) (858) 658 54% (159%) (1,249) 1,391 (190%) Tax charge (credit) (85) (219) 281 61% (130%) (304) 550 (155%) PAT (306) (639) 377 52% (181%) (945) 841 (213%) PAT after MI (171) (527) 374 68% (146%) (698) 786 (189%) EBITDA/Revenue 31% 27% 27% 29% 27% PBT/Revenue (12%) (40%) 9% (23%) 9% PAT/Revenue (10%) (30%) 5% (18%) 6% * PAT: Profit After Tax, PBT: Profit Before Tax, EBITDA: Earnings Before Interest Tax Depreciation Amortization, MI: Minority Interest 19#20Business Segment Performance: H1 FY 21 (INR Mn) Particulars Real Estate Hospitality Lease Rental Total % of Revenue Revenue 3,423 283 1,653 5,359 100% as % of Total 64% 5% 31% 100% Direct Expenses 2,372 39 31 2,442 46% Admin Expenses 124 207 270 601 11% Selling Cost 83 11 20 114 2% Employee cost 296 210 131 637 12% EBITDA 548 (184) 1,201 1,565 29% EBITDA/Revenue % 16% (65%) 73% 29% Finance costs 559 262 891 1,712 32% PBDT (11) (446) 310 (147) (3%) Depreciation 22 374 722 1,117 21% PBT (33) (819) (412) (1,264) (23%) PBT/ Revenue % (1%) (289%) (25%) (24%) *PAT: Profit After Tax, PBT: Profit Before Tax, EBITDA: Earnings before Interest Tax Depreciation Amortization,MI : Minority Interest BRIGADE 20#21Consolidated Cash Flows BRIGADE (INR Mn) Particulars Q2 FY21 Q1 FY21 H1 FY21 H1 FY20 Operating Activities Total Collections Direct Cost/Construction Cost Landowner Payments | Employee and Admin Expenses 5,359 3,757 9,116 10,839 (2,145) (1,859) (4,004) (6,049) (353) (358) (711) (452) (524) (370) (894) (1,672) Sales & Marketing Expenses (200) (107) (307) (423) Statutory Payments (255) (238) (493) (947) Other Payments (53) (3) (56) (40) Net Cash Flow from Operating Activities (A) 1,829 822 2,651 1,256 Investment Activities Cash from Investment Activities (FD & MF) 1,039 499 1,538 1,428 Construction Cost (CWIP/Capex Projects) (1,379) (1,192) (2,571) (3,695) Investment in Land/JD/JV/TDR (1,655) (70) (1,725) (623) Other Investments (FD & Mutual Fund) (1,088) (1,392) (2,480) (1,108) Net Cash Flow from Investment Activities (B) (3,083) (2,155) (5,238) (3,998) Financing Activities Debt Drawdown 4,438 3,432 7,870 6,068 Investment by PE 500 500 770 Proceeds from ESOP/Share Warrants 269 269 297 Dividend Payment (322) Debt Repayment (2,419) (2,422) (4,841) (2,438) Finance costs (1,198) (558) (1,756) (1,784) Net Cash Flow from Financing Activities (C) 1,591 452 2,043 2,591 Net Cash Flows for the Period (A+B+C) 337 (881) (544) (151) 21#22Capital Allocation: Segment-wise As of Sept, 2020 (INR Mn) BRIGADE Operating Segment Equity (A) Debt (B) Capital Employed D/E Ratio PBD*/ Equity % (A+B) (A/B) Capital Employed (OCE) EBITDA/ OCE % Capital Employed 12% Real Estate 17,211 7,495 24,706 0.44 6% 24,706 8% Hospitality 3,092 5,575 8,667 1.80 -7% 8,346 4% 33% 55% Leasing 9,895 30,341 40,236 3.07 6% 16,915 14% Less: Cash Balance Total 5,133 30,198 38,278 73,609 1.27 2% 49,968 9% * Note: PBD/Equity and EBITDA/OCE percentages are calculated based on trailing four quarter numbers PBD: Profit Before Depreciation & Tax (After Interest) Real Estate Lease Rentals Hospitality 222 22#23Consolidated Debt Profile Real Estate Hospitality GOP Securitised Capex Particulars (INR Mn) As on Sept-20 As on Jun-20 As on Sept-19 7,495 6,915 7,140 5,575 5,434 5,382 4,302 4,206 4,296 1,273 1,228 1,086 Leasing 30,341 28,504 24,393 Securitised Lease Rental 17,011 15,213 12,565 Capex 13,330 13,381 11,828 Less: Cash & Cash Equivalents Net Debt Less: SPV Partner's share of debt Exposure of BEL Cost of Debt (Consolidated) 5,133 4,613 3,489 38,278 36,240 33,426 8,367 7,499 5,679 29,911 9.23%* 28,741 9.56% 27,747 9.73% BRIGADE * 50 bps reduction in Cost of Debt w.r.t Sept 2019 Credit Rating CRISIL "A"; ICRA "A" CRISIL "A"; ICRA "A" CRISIL "A"; ICRA "A" Note: The gross debt figure for Sept 2020 includes INR 17,032 Mn debt taken in SPV's where BEL has INR 8,665 Mn share 23#24Standalone Financial Statements BRIGADE (INR Mn) H1 FY21 on Q2 FY 21 on Q2 FY 21 on Q2 Particulars Q2 FY 21 Q1 FY 21 Q2 FY 20 H1 FY21 H1 FY20 Q1 FY 21 FY 20 H1 FY20 Turnover 2,598 1,808 5,885 44% (56%) 4,406 11,324 (61%) EBITDA 1,020 663 1,881 54% (46%) 1,683 3,551 (53%) Finance costs 515 501 515 3% 1,016 1,012 Profit before depreciation 505 162 1,367 212% (63%) 667 2,540 (74%) Depreciation 205 202 185 1% 11% 407 364 12% PBT 300 (40) 1,182 850% (75%) 260 2,176 (88%) Tax charge (credit) 75 (8) 428 1038% (82%) 67 782 (91%) PAT 225 (32) 754 803% (70%) 193 1,394 (86%) EBITDA/Revenue 39% 37% 32% 38% 31% PBT/Revenue 12% (2%) 20% 6% 19% PAT/Revenue 9% (2%) 13% 4% 12% * PAT: Profit After Tax, PBT: Profit Before Tax, EBITDA: Earnings Before Interest Tax Depreciation Amortization 24#25Contents 1 Residential sales back to pre-covid level 2 Healthy leasing pipeline 3 Hospitality performance remains subdued 4 Financial Performance 5 Land Bank BRIGADE 6 Projects Launched and Upcoming Launches Great Place To Work.. Certified JAN 2020-DEC 20 INDIA#26Brigade's Land Bank GIFT City Hyderabad Bengaluru Mysore Chennai Kochi Thiruvananthapuram 42 Land Area (in acre) 13 2 14 16 18 262 BRIGADE ■ Bengaluru Chennai ■ Kochi Mysore ■Thiruvananthapuram ■ Hyderabad ■GIFT City Total Area of 367 acres as on 30th Sept 2020. Total cost of Land is Rs.8,991 Mn out of which Rs. 7,123 Mn is paid and balance Rs.1,868 Mn is payable 26#27Developable Area Details Product Proj Area in Mn Sft BEL Share in Mn Sft Residential 30.5 21.9 Commercial-Sale 1.2 0.7 Commercial-Lease 7.2 6.5 Hotel 0.4 0.4 Total 39.3 29.5 Location Proj Area in Mn Sft BEL Share in Mn Sft Bangalore 30.5 23.2 Chennai 3.9 2.2 Thiruvananthapuram 2.2 2.2 Hyderabad 1.7 1.1 Mysore 0.6 0.4 GIFT City 0.3 0.3 Kochi 0.1 0.1 Total 39.3 29.5 10% Project Area: Location 2% 1% 4% 6% 77% Bangalore Thiruvananthapuram ■Mysore ■ Kochi ■Chennai Hyderabad ■GIFT City BRIGADE 27#28Agenda 1 Residential sales back to pre-covid level 2 Healthy leasing pipeline 3 Hospitality performance remains subdued 4 Financial Performance 5 Land Bank BRIGADE 6 Projects Launched and Upcoming Launches Great Place To Work.. Certified JAN 2020-DEC 20 INDIA#29Projects Launched: H1 FY 21 BRIGADE Project Area Project Product Brigade El Dorado - Jasper Block * Residential City Bengaluru (Mn sft) Quarter Launched 0.62 Q1 Brigade Twin Towers * Commercial Bengaluru 1.30 Q1 Total 1.92 Artist's impression of Brigade El Dorado Artist's impression of Brigade Twin Towers Projects in SPV 29#30Upcoming Launches Residential Leasing Total Segment Total Area (Mn sft) 3.12 Brigade Economic Interest (Mn sft) 0.76 3.88 CITADEL 2.25 0.50 2.75 BRIGADE Artist's impression of Brigade Citadel, Hyderabad 30#31Awards and Accolades BRIGADE • Awarded India's Top Builders 2020 at the Construction World Architects and Builders Awards Great Place To Work.. Certified JAN 2020-DEC 20 INDIA#32Shareholding Pattern Others, 22% Mutual Funds, 19% As on Sept 30, 2020 Fils and FPIs, 12% Promoter Group, 47% BRIGADE 32#33Board of Directors M. R. Jaishankar Chairman and Managing Director Masters in Business Administration Promoter of the Brigade Group Nirupa Shankar Executive Director Masters of Mgmt, Hospitality from Cornell University Part of Promoter Group Aroon Raman Independent Director • • MBA from Wharton School, University of Pennsylvania Author and Entrepreneur Lakshmi Venkatchalam Independent Director MBA from Boston University Retired IAS Officer Dr. Venkatesh Panchapagesan Independent Director CA, CWA, IIM K Alumni Faculty at IIM B Roshin Mathew Executive Director • B Tech and Masters' in Building Engineering and Management Amar Mysore Executive Director Masters in Engineering Pradeep Kumar Panja Independent Director Masters in Science • BRIGADE Pavitra Shankar Executive Director • MBA, Real Estate & Finance, Columbia Business School Part of Promoter Group Bijou Kurien Independent Director . PG Diploma in Business Management Rich experience in Real Estate from Pennsylvania Sate University • Former MD of SBI • • Part of Promoter Group 33#34Ongoing Residential Projects KKKK BRIGADE Artist's impression Brigade Orchards Actual shot at Brigade Panorama 34#35Ongoing Commercial Projects BRIGACE DECCAN HEIGHTS BRIGADE Artist's impression of Brigade Triumph Artist's impression of Brigade Deccan Heights 35 35#36Ongoing Projects WORLD TRADE CENT TRAUX CENTE BRIGADE Artist's impression of Brigade Residences & WTC Chennai 36#37Atul Goyal Chief Financial Officer [email protected] Om Prakash P Company Secretary [email protected] Rajiv Sinha Dy. General Manager - Finance [email protected] DO 10 Thank you Brigade Enterprises Limited 29th & 30th Floor, World Trade Center Brigade Gateway Campus, Dr Rajkumar Road, Malleswaram-Rajajinagar, Bangalore 560055 Email:[email protected] (CIN: L85110KA1995PLC019126) Disclaimer: The information in this presentation contains certain forward-looking statements. These include statements regarding outlook on future development schedules, business plans and expectations of Capital expenditures. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated by the Company. Great Place To Work. Certified JAN 2020-DEC 2010 INDIA