#1LODHA BUILDING A BETTER LIFE January 27, 2024 BSE Limited Scrip Code: 543287 Debt Segment - 974163, 974199, 974473, 974511, 974986, 975053, 975115, 975192 National Stock Exchange of India Limited Trading Symbol: LODHA Dear Sirs, Sub: Investor Presentation We enclose herewith Investor's presentation on the Unaudited Financial Results for the quarter and nine months ended December 31, 2023. This is also being uploaded on the Company's website at www.lodhagroup.in You are requested to inform your members accordingly. Thanking you, Yours faithfully, For Macrotech Developers Limited SANJYOT NILESH RANGNEKAR Digitally signed by SANJYOT NILESH RANGNEKAR Date: 2024.01.27 18:04:37 +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 Third Quarter FY2024 27th January 2024 E#3Highlights Growth Drivers INDEX Page No 10 10 24 Performance Update 35 Financials Company Overview Annexures 38 45 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 at 18-20% Conservative leverage: Net debt ceiling of 0.5x D/E and 1x D/OCF ■Net debt of INR ~67bn (Dec-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 ■ 600+ mn sq ft development potential 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 33 projects with GDV of INR ~547bn since IPO LODHA BUILDING A BETTER LIFE 3#5World Tower - Ball Room 01 Highlights 4#6Key Performance Indicators Pre-sales ✓ INR 34.1bn ( 12% YoY), best ever 3rd quarter Embedded EBITDA Margin# New Projects Added Brand & ESG Performance ✓ ~30% for Q3 & 9MFY24 ✓ Three projects with INR ~60bn GDV 9MFY24 INR 203bn - surpassing full year guidance ✓ Highest top of mind awareness amongst housing brands in Mumbai (46%) & Pune (31%), far ahead of competition ✓ ESG: o Included in the prestigious Dow Jones Sustainability Index (DJSI) 2023 O S&P Global 2023 Corporate Sustainability Assessment (CSA): 3rd Highest score globally among Real Estate companies o Ranked No.1 amongst residential developers in Asia by GRESB LODHA BUILDING A BETTER LIFE # Embedded EBITDA Margin: Estimated EBITDA margin on Pre-sales at price realized 5#7Q3FY24 - Other Operating Highlights Price Growth Launches ~4% Average YTD price growth¹ 3.0 msf Cash Flow Net Debt Operating cash flow INR 15.8bn INR 67.5bn Debt remained stable Avg. borrowing cost reduced by ~10bps to ~9.5% vs Sep-232 LODHA BUILDING A BETTER LIFE 1YTD Price Growth- Weighted average of projects having sales in Q3FY24 vs. Sales price in Q4FY23 2 Exit cost of debt as of Dec-23 and Sep-23 CO 6#8Cash Flow INR bn Office & Retail 'For Sale' Land Sales Q3FY24 9MFY24 (for rent) Pre-Sales 31.8 0.4 2.0 34.1 103.0 Collections 24.6 0.8 0.5 25.9 77.5 Repatriation from UK Invest. 5.5 5.5 5.5 - *Net Collections incl. UK Repatriation 27.5 0.8 0.5 28.8 74.7 Op. Expenses 12.8 0.2 13.0 38.0 Const. Exp 8.7 0.2 8.9 27.4 SG&A 4,1 4.1 11.0 - Taxes -0.1 -0.4 Operating cash flow - Interest payments Cash flow for growth & capital providers Growth Investments# 14.7 0.8 0.3 15.8 36.7 1.8 5.9 14.0 30.8 13.2 26.5 Dividend Payout 1.0 1.0 Decrease / (Increase) in Net Debt (0.2) 3.3 LODHA BUILDING A BETTER LIFE On track to achieve full year guidance for net debt *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 9MFY24 120.7 145 103.0 Operating Cashflow 56.6 ~60 36.7 New Project Additions 198.0 Net Debt LODHA BUILDING A BETTER LIFE 175+ 203.0 70.7 Below ceiling of 1× Net Debt: OCF & 0.5x Net 67.5 Debt:Equity INR bn Surpassed annual guidance Brand power attracting landowners towards MDLI On path to achieve full year guidance 8#10Strong launch pipeline for Q4FY24 Micro-market South Central Own/ JDA Project Est. GDV (INR Area (Mn.Sq.ft) No of Projects bn) JDA 0.5 24.1 1 Extended Eastern Suburbs Own 1.0 6.5 2 Eastern Suburbs JDA 0.4 5.9 1 Western Suburbs JDA 0.5 10.2 2 Pune Thane Bangalore Total LODHA BUILDING A BETTER LIFE JDA 0.8 5.8 3 Own 0.3 3.0 1 JDA 1.0 7.1 1 4.4 62.6 Well placed to meet full-year Pre-sales guidance with the launches planned in Q4 11 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% 13-15% to GDP FY22 FY31 Doubling of contribution FY22-31 ~5x USD 200bn USD -1tn Real Estate Industry Size (20% CAGR) FY22 FY31 FY22-31 India's Decade^: Per capita incomes to grow 2x rate over 2021-31 vs. previous decade 2011-21 Housing to be key driver of and key beneficiary from GDP growth LODHA BUILDING A BETTER LIFE Source: Niti Aayog, IBEF.org; ^ Morgan Stanley report 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 2022-23 60 50 40 30 20 10 20 1950 1960 1970 1980 Large no of educated workforce added every year Total placements from AICTE approved institutes (in '000s) 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 No of students graduating every year from AICTE affiliated colleges: ~1.5mn 4.6x 4.4x 4.1x 796 802 825 3.8x 804 3.7x 739 674 702 723 716 3.5x 3.3x 3.3x 613 3.2x 3.2x 560 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 Improved affordability to support demand Affordability ratio¹ 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 。 Assuming 15% supply CAGR, total production during decade to be 8-9 million units vs. demand of ~100 million units ○ 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 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 Mumbai - Ahmedabad High-Speed Rail (CY28) 1st station after BKC at Palava, travel time -15mins Extended Western Suburbs Virar Extended Eastern Suburbs Upper Thane Kalyan Virar - Alibaug Multimodal Corridor (CY30) Puts Palava at center of major commercial trade route Goregaon - Mulund Link Road (CY28) Western Suburbs Thane Dombivli Thane Station Brings Western Suburbs closer to Goregaon Mulund Palava Airoli PALAVA Katai Kalyan Taloja Metro - Line 12 (CY27) Airoli Katai Naka Freeway (CY24) MUMBAI Eastern Suburbs Navi Mumbai BKC Taloja Cuts travel time b/w Mumbai/ Airoli & Palava by 20 mins Central Mumbai Mumbai Trans Harbor Link (Operational - CY24) Brings South Mumbai closer LODHA BUILDING A BETTER LIFE Sewri South Mumbai Alibaug + Chirle Junction PUNE Three station within Palava, connected to suburban metro network Navi Mumbai International Airport (CY25) Boost to economic activity around Palava (35mins) 18#20Land prices have risen substantially over 2021-23...housing prices to follow suit Land transactions happening at 2.5x in three years 6.5 2.9 2.6 5.0 Lodha Morgan Stanley JV Lodha GDIP Coldchain Logistic Co. Specialty Petroleum Product Manufacturer 2021 2022 2023 2023 LODHA BUILDING A BETTER LIFE 19#21Building annuity income portfolio Growing facilities management business Have a captive base of 60,000 households with high spending power; to grow to 250,000+ by 2030 Rollout underway for digital services app LODHA BUILDING A BETTER LIFE Facilities Management Digital Infrastructure Annuity income Pan-India warehousing & industrial park platform Targeting 25 msf area; 5.7 msf Area under development (Dec-23) Commercial Select high quality office and retail portfolio Targeting INR ~5bn of net annual income by FY26 and INR ~15bn by FY31 20#22Digital Infra.: potential to generate significant recurring income ✓ Significant traction from marquee users for leasing at our DI Park ✓ Skechers & Schlumberger facilities generating rent from 3QFY24 ✓ Pursuing land acquisition in NCR, Maharashtra & Bengaluru for the platform ✓ Strong demand from end users of diverse industries E- Commerce, Fashion & Sportswear retailers, Consumer Goods, 3-PL, Logistics, Data Center, EV Ecosystem, FMCG, Engineering Goods, Life Sciences, etc. (in mn Sq ft.) Area Under Development Area (msf) 5.7 Area Under Construction 1.1 Area Generating Rent 0.7 India's largest warehousing box operationalized by Skechers LODHA BUILDING A BETTER LIFE 21#23Recurring Cash-flow generation through land monetization Signed definitive agreement with NewCold, one of the largest automated warehouse & cold chain logistics companies globally, for land sale at Palava for INR 1.5bn. ✓ Sold land to Panama Petrochem, a leading manufacturer of specialty petroleum product, at INR ~65mn per acre during the quarter ~375 acres land monetized till date from land sales to industry ✓ Aptar Pharma & Flyjack along with Schlumberger & Skechers to be operational in FY24, boosting economic activity & job creation at Palava (INR bn) Cashflow from land sales LODHA BUILDING A BETTER LIFE Jan-21 to Dec-23 Q3FY24 16.8 0.5 22#24Commercial & retail assets with rent potential of INR ~2.0 bn p.a. Area in msf Location Leasable area Area Leased Status Annualized Rental Income Potential One Lodha Place iThink Palava Palava Mall Xperia xperia Worli (World Towers) Palava (Office) Xperia Mall LODHA * Basis Dec-23 monthly rentals BUILDING A BETTER LIFE 0.50 0.22 Ready 0.58 0.15 0.43: Under development 0.42 0.39 Operating INR 1,350+ mn p.a INR ~270mn* INR 300mn * 23#25ESSAI THE NEST Upper Thane 03 Performance Update 24#26Operational Performance For Sale Others* 34.1 30.3 12% 103.0 90.4 14% 98.4 83.2 31.8 29.7 Pre-Sales 2.5 msf 2.6 msf 6.9 msf Q3FY23 Q3FY24 9MFY23 7.7 msf 9MFY24 77.4 26.8 25.9 76.7 1% -3% Collections Q3FY23 Q3FY24 LODHA BUILDING A BETTER LIFE *Others include rental asset sales, sale of land for digital Infra & govt. infra and tenancy 9MFY23 9MFY24 INR bn 25#27Pro-forma P&L (basis operating performance) Particulars Pre-sales INR Bn 120.6 FY23 FY24E 9MFY24 % INR Bn % INR Bn % 145.0 103.0 Embedded EBITDA 38.6 32% 43.5 30% 30.9 30% D&A Finance Cost PBT 0.9 10.0 1.0 7.5 0.8 5.9 27.7 23% 35.0 24% 24.2 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% 6.1 18% 18.1 18% 26#28Financial Performance 29.3 65% 17.7 Q3FY23 Q3FY24 5.6 32% Q3FY23 90% 2.0 11% Q3FY23 LODHA BUILDING A BETTER LIFE 179% 10.8 Revenue INR bn 62.2 63.0 1% 9MFY23 9MFY24 19.9 20.9 5% Adj. EBITDA 37% 32% Q3FY24 5.7 19% Q3FY24* Adj. PAT 9MFY23 33% 9MFY24 8.0 9.5 19% 12% 15% 9MFY23* 9MFY24* Operating leverage driving higher Adj EBITDA and PAT margin in 3QFY24 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 net of taxes *Exceptional Items: Provision against UK investment for 3QFY24, 9MFY24 & 9MFY23 27#29Micro-market performance for Q3FY24 Micro-markets INR bn Average Sales Pre-Sales# Collections* Price (INR psf) Construction spends Area Completed (Mn. sq. ft.) South & Central 6.9 23,845 8.1 2.0 Thane 3.2 11,109 3.6 1.3 1.0 Extended Eastern Suburbs 4.4 6,562 5.2 3.1 Western Suburbs 2.1 17,324 2.0 0.5 Pune 3.4 8,480 2.6 0.8 Eastern Suburbs 5.1 19,025 2.0 0.5 Extended Western Suburbs 0.3 0.1 6.6 11,792 0.8 0.2 Bangalore Offices & Retail (for rent) 0.4 Land Sales 2.0 Total 34.1 LODHA BUILDING A BETTER LIFE # Pre-sales includes DM Sales *Collections from DM sales not included 0.8 0.5 0.2 25.9 8.9 1.0 28#30Micro-market performance for 9MFY24 Micro-markets INR bn Average Sales Pre-Sales# Collections* Price (INR psf) Construction spends Area Completed (Mn. sq. ft.) South & Central 34.2 30,751 25.6 6.2 Thane 9.6 10,717 11.3 4.4 1.5 Extended Eastern Suburbs 14.9 6,619 16.1 9.8 0.8 Western Suburbs 6.9 16,438 6.1 1.6 Pune 13.0 7,929 7.2 2.0 Eastern Suburbs 13.1 19,495 5.2 1.7 Extended Western Suburbs 0.1 9,143 1.2 0.4 6.6 11,792 0.8 0.2 Bangalore Offices & Retail (for rent) 1.5 Land Sales 3.2 Total 103.0 LODHA BUILDING A BETTER LIFE # Pre-sales includes DM Sales *Collections from DM sales not included 1.9 0.4 - 2.1 0.6 77.5 27.4 2.3 29#31Launches in 9MFY24 Micro-market Own/ JDA Project Launch Period Area (Mn .Sq.ft) Est. GDV (INR bn) Pune JDA Q1FY24 1.1 8.2 Western Suburbs 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 Eastern JDA Q3FY24 0.5 9.3 Western JDA Q3FY24 0.3 5.3 South & Central Own Q3FY24 0.3 12.3 Thane Own Q3FY24 0.5 8.1 Extended Eastern Suburbs Owned Q3FY24 0.5 3.1 Bangalore JDA Q3FY24 0.6 7.2 Pune JDA Q3FY24 0.3 4.7 Total - 9MFY24 LODHA BUILDING A BETTER LIFE 6.6 88.5 30#32Business Development: Surpassed guidance Micro-market Period Added Saleable Area (msf) Est. GDV MMR - South Central 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 Bangalore - South Q1FY24 1.0 8 10 10 MMR - Eastern Suburbs Q2FY24 0.7 13 MMR - Western Suburbs Q2FY24 0.5 MMR- South Central Q3FY24 0.8 24 MMR - South Central Q3FY24 0.8 24 24 MMR - South Central Q3FY24 0.4 12 LODHA BUILDING A BETTER LIFE 10.3 203 INR bn 31#33Lodha: Micro-market wise supply Planned Inventory Launches Residual Collections Micro-markets from Sold unsold Ready 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. South & Central 35.1 0.8 2.3 1.5 0.9 7.7 Thane 9.6 0.3 2.8 0.8 3.5 Extended Eastern 21.2 3.2 4.8 3.3 45.3 600+ Suburbs Western Suburbs 8.2 0.0 0.7 1.1 0.4 Pune 14.9 0.1 1.9 0.4 1.5 0.1 1.5 Eastern Suburbs 18.3 1.8 0.4 1.1 1.1 2.5 Extended Western 0.6 0.1 Suburbs Bangalore 6.2 0.0 Offices & Retail (for 0.6 1.3 0.4 1.0 0.6 7.2 rent) Land Sales/Industrial 1.5 0.7 5.0 Park Total 116.3 6.4 20.0 4.8 6.2 58.1 12.7 600+ Value of Ready Unsold and Ongoing Unsold is INR ~80bn and INR ~229bn respectively LODHA ^as on Dec-23 BUILDING A BETTER LIFE *Includes ~70 acres land under JV with Morgan Stanley (MDL interest 25%) and 110 acres in JV for Digital Platform (MDL interest 33%) Largest land bank amongst any Real Estate company in India' 32#34Market 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 0.07 0.28 0.02 0.00 0.11 0.06 South & Central Mumbai 3.47 Sold-POCM 0.00 0.16 0.11 0.04 0.04 0.23 Unsold 0.08 0.70 0.35 0.44 0.33 0.43 Sold-PCM 0.25 0.39 0.58 0.01 0.03 Thane 4.82 Sold-POCM 0.02 0.15 0.37 0.16 0.10 Unsold 0.02 0.35 0.35 1.09 0.95 Sold-PCM 1.73 2.77 0.26 0.10 Extended 11.54 Sold-POCM 0.25 0.90 0.59 0.12 Eastern Suburbs Unsold 0.32 . 0.84 0.66 2.99 Sold-PCM 0.09 0.49 0.13 0.03 0.00 Western Suburbs 1.89 Sold-POCM 0.01 0.14 0.21 0.04 Unsold I 0.07 0.06 0.47 0.06 0.07 LODHA BUILDING A BETTER LIFE *Sold/ Unsold data is as of Dec-23 33#35Market 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 0.20 Eastern Suburbs 3.22 Sold-POCM 0.06 0.09 0.58 Unsold 0.11 0.20 1.49 Sold-PCM 0.20 1.36 0.16 0.09 0.00 Pune 5.35 Sold-POCM Unsold I I 0.11 0.25 0.33 0.62 0.01 0.34 0.17 0.36 0.41 0.47 0.25 0.22 Sold-PCM Extended Western 0.40 Sold-POCM Suburbs Unsold Sold-PCM . . 0.00 Bangalore 0.60 Sold-POCM 0.55 Unsold 0.05 Sold-PCM 2.05 3.73 2.03 1.34 0.55 0.25 0.30 Total 31.30 Sold-POCM 0.27 1.33 0.45 1.42 0.96 0.33 1.84 Unsold 0.42 2.13 0.53 1.84 1.57 4.73 3.32 0.32 0.01 0.07 . LODHA BUILDING A BETTER LIFE *Sold/Unsold data is as of Dec-23 34#3603 Financials Lodha Amara - Club House 5 35#37Financial highlights for Q3FY24 Particulars Q3FY24 Q3FY23 Growth % 9MFY24 9MFY23 Growth % Revenue Adj. EBITDA^ 29.3 17.7 65.2% 63.0 62.2 1.3% 10.8 5.6 90.3% 20.9 19.9 5.0% Adj. EBITDA (%) 36.7% 31.8% 490bps 33.2% 32.1% 110bps Adj. PAT* 5.7 2.0 178.7% 9.5 8.0 18.6% Adj. PAT (%) 19.2% 11.4% 780bps 14.9% 12.4% 250bps Networth 135.8 Net D/E (x) 0.5 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 net of taxes INR bn 36#38Consolidated Summary Balance Sheet ASSETS As at 31-Dec-23 As at 31-Mar-23 EQUITY AND LIABLITIES As at 31-Dec-23 As at 31-Mar-23 Equity Share Capital 9.6 4.8 Tangible Assets 13.4 13.0 Other Equity 125.6 121.8 Intangible Assets 5.3 5.3 Non-Controlling Interests 0.6 0.6 Investments 5.4 2.4 Total Equity 135.8 127.2 Loans 7.4 11.5 Borrowings 87.7 90.5 Inventories 309.1 301.2 Trade Payables 22.9 21.0 Trade Rec. (Incl. accrued rev.) 15.3 12.4 Other Financial Liabilities 48.1 45.6 Cash and Bank Balances 19.7 19.3 Provisions 0.3 0.3 Other Financial Assets 17.3 10.7 Current Tax Liabilities (Net) 0.0 0.4 Non-Current Tax Assets 1.6 2.9 Deferred Tax Liabilities (Net) 0.5 0.3 Deferred Tax Assets 0.8 2.4 Other Liabilities 115.3 106.3 Other Assets 15.3 10.4 Total Liabilities 274.8 264.3 Total Asses 410.6 391.5 Total Equity and Liabilities 410.6 391.5 LODHA BUILDING A BETTER LIFE INR bn 37#39PARK WICKEY 238 TARGET 239 04 Company Overview The Park 38#40Eminent 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 LODHA BUILDING A BETTER LIFE ■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 39#41Strong 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 25+ ■Formerly worked with McKinsey & Company and Logic Tools 27+ at Oberoi Constructions Pvt Ltd 28+ Birla Group & JSW Steel Prateek Bhattacharya Prashant Bindal Rajat Kumar Singh CEO - Western Suburbs & Thane Chief Sales Officer President- Finance 25+ Formerly served as Expert Associate Principal at McKinsey and Co. ■Formerly part of Spice Mobilitiy, 26+ Walmart India and Hindustan Coca Cola Beverages 29+ Rajib Das Rajesh Sahana President - Eastern Suburbs & President - Customer Experience Navi Mumbai 20+ Formerly worked with Globacom, Formerly worked with Godrej 28+ 30+ Group, Indiabulls Properties Reliance Jio, Bharti Airtel, ABN Amro & Bank of America Raunika Malhotra Tikam Jain CEO - Pune President - Marketing and Corporate Communications ■Grown at Lodha with 25 years of association, last position held 15+ 31+ as Head CPT Formerly worked with ECS Limited and Adayana Learning Solutions 30+ ■Formerly worked with Adani Group, Reliance Group & GMR Shyam Kaikini President - Hospitality & Property Management ■Formerly associated with Taj Hotels, Jumeirah International Dhruti Dholkiaa President-Legal ■Formerly worked with Essel Group and Indospace capital advisors. Janhavi Sukhtankar Rajendra Joshi President - Human Resources - CEO Bangalore. ■Formerly held senior positions at ■Formerly associated with Brigade 32+ Enterprises, Mahindra Lifespaces 26+ Greenpeace International and Sanofi India 31+ Rajesh Agrawal Devender Singh Rawat Const. Mark Griffiths Head - Pre-Constructions, QA & EHS ■Formerly worked with Leighton Contractors, Baulderstone & Hornibrook COOS Satish S: Ex-Arabtec. President - Procurement Mgmt. CEO-GDI Platform ■Shrikanth K: Ex- Phoenix ■Formerly served as Group CPO at Team ■Formerly CEO of Bharti Infratel, 27 ■Yogendra B: Ex- L&T 25+ also worked with Ericsson, Huawei 37+ Adani Ent. & held senior positions at RIL, JSW + ■Brijmohan C: Ex-Arabtec LODHA BUILDING A BETTER LIFE xx Experience in the industry 40#42Our 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 Identifying 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 Identify and mitigate the key material risks Education & Livelihood, Promoting women in workforce Learning & Growth Health & well-being, Human Rights Best-in-class reporting, Benchmarking 41#43We are best-in-class globally when it comes to measured ESG performance Member of Dow Jones Sustainability Indices Powered by the S&P Global CSA S&P Global Corporate Sustainability Assessment 2023 Third highest CSA score out of ~300 companies globally in Real Estate 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 GREEN BUILDING World Benchmarking Alliance WBA Buildings Benchmark Ranked 4th among the 50 keystone buildings sector companies globally FTSE4Good FTSE4Good Index Series Retained position in the FTSE4Good Index Series in Dec 2023 index review IGBC COUNCIL G MEMBER FOUNDING IGBC Green Champion Award Winner of the 10th IGBC Green Champion Award under the category of 'Developer leading the Green Homes Movement in India' LODHA BUILDING A BETTER LIFE 42#44First Real Estate Company in India to have SBTi validated Net-Zero Targets SCIENCE BASED TARGETS • • Near-term targets: . • Reduce absolute scope 1 and 2 GHG emissions 97.9% by FY2028 from a FY2022 base year Reduce scope 3 GHG emissions 51.6% per square meter of area developed by FY2030 from a FY2022 base year Long-term target: • • Maintain at least 97.9% absolute scope 1 and 2 GHG emissions reductions from FY2028 through FY2050 from a FY2022 base year Reduce absolute scope 3 GHG emissions 97.9% per square meter of area developed by FY2050 from a FY2022 base year DRIVING AMBITIOUS CORPORATE CLIMATE ACTION OUR NET-ZERO ROADMAP Scope 1,2 Emissions 97.9% reduction in Scope 1,2 emissions Maintain 97.9% reduction in Scope 1,2 emissions Scope 3 Emissions 2028 2030 51.6% reduction in Scope 3 emission intensities 2050 97.9% reduction in scope 3 GHG emission intensities LODHA BUILDING A BETTER LIFE NET-ZERO 43#45Our commitment to Sustainability: Progress across key focus areas Environment • Green Certification received for ~50 million sqft across projects; process ongoing for ~42.9 million sqft across 35 residential projects 95% of renewable energy share in our total energy consumption, across construction activities and standing assets as of Dec-23 ~3 MW of on-site solar panel installations completed and work-in-progress 'IGBC Performance Challenge for Green Built Environment Award' conferred to Lodha Xperia Mall, Palava under the Shopping Malls category Released Gateway to India's Dymaxion, a unique publication emerging from Lodha Net Zero Urban Accelerator focusing on Embodied Carbon, Passive and Active Thermal Comfort Solutions, Equipment Efficiency, Clean Energy and Clean Mobility Social First batch of ~100 students of Lodha Genius Programme 53 out of the 74 women enrolled as part of the Unnati Skill Development Centre at Unnati were called for interviews. 24 women were offered full time roles and have started working in Palava. 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 44#46World Towers ABOVE IT ALL 05 Annexure ABOVE 45#47Significant 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 Kurla Developer 3. South Central Mumbai 7 CBD Belapur Market share (%) Prabhadevi Worli 1 LODHA Second Third Dadar 33.9% 13.4% 9.9% Lower Parel 3 Added 10 projects with GDV of INR 237bn 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 ~163bn Absorption: INR 173bn Tied up INR ~467bn 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 46#48Pune - 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 47#49..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 8.2bn in 28 months (76% of launched inventory) Giardino at Kharadi (North-East) in Nov-22, sold INR 9.4bn in 13 months (71% of launched inventory) Panache at Hinjewadi (North-West) in March-23, sold INR 5.7bn in 10 months (65% of launched inventory) ✓ Medium term aim to capture ~15% market share LODHA BUILDING A BETTER LIFE 48#50Entered 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 49#51...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 ✓ Launched phase-1 of our first project in the city; sold entire launched inventory within three days of launch ✓ Creating dedicated team with local capability based in Bangalore ✓ Focus on gradual growth focused on capital light JDA model LODHA BUILDING A BETTER LIFE 50#52Supply 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 1 mn ✓ 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 ~480k ~360K ~300K ■ Having burnt their lifetime savings ■Failure to deliver or untimely delivery with poor quality CY21 CY22 CY23 CY30 LODHA Source: Anarock BUILDING A BETTER LIFE 51#5389% 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 CY24 ✓ 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 52 Netherlands#54Low 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 53 53#55Construction cost – inflation moderation since Mar-22 - Mar'21 to Mar'22 Mar'21 to Dec'23 Commodity/Component % Share in total cost % Change Weighted Impact % Change Weighed Impact Steel 12.9% 35.1% 4.5% -1.2% -0.2% Flooring Tiles 5.0% 23.9% 1.2% 15.3% 0.8% Electrical/Plumbing 11.8% 10.1% 1.2% 4.5% 0.5% Labour 34.4% 3.0% 1.0% 6.8% 2.4% External Windows 3.9% 21.9% 0.8% 8.8% 0.3% RMC Cement 10.5% 6.3% 0.7% 13.9% 1.5% 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% 33.6% 1.3% Overall ~13.7% ~10.8% 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 54 54#56Multiple 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 55#57Key affordable & mid-income projects delivered Unique ability to create destinations LODHA BUILDING A BETTER LIFE K LODHA UPPER THAME Lodha Upper Thane 7773 Lodha Belmondo Lodha Splendora Lodha Amara Lodha Palava 56#58Key premium & luxury projects delivered Unique ability to create destinations LODHA Lodha Altamount LODHA BUILDING A BETTER LIFE New Cuffe Parade World Towers Lodha Park 57#59Disclaimer 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 58#60Thank You! For any further information, please write to [email protected] LODHA BUILDING A BETTER LIFE 59