#1Sunteck Realty Ltd. SRL/SE/25/21-22 The Manager, Listing Department National Stock Exchange of India Ltd Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex Bandra (East), Mumbai- 400 051 Scrip Code: SUNTECK Date: 2nd August, 2021 Sunteck The Secretary, Listing Department, Department of Corporate Services BSE Limited Phiroze Jeejeebhoy Tower, Dalal Street, Mumbai 400 001 Scrip Code: 512179 Sub: Investor Presentation on Q1FY22 results Dear Sir/Madam, Pursuant to Regulation 30(6) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, please find enclosed the Investor Presentation with regard to Unaudited Financial Results for quarter ended 30th June, 2021. The Investor Presentation shall also be placed on the Company's website. Kindly take the same on record and disseminate to all the concerned. Thanking You, For Sunteck Realty Limited Alingarap Rachana Hingarajia Company Secretary Encl: a/a Realty teck A Sunter Limited Mumbai) 5th Floor, Sunteck Centre, 37-40 Subhash Road, Vile Parle (East), Mumbai 400 057. Tel: +91 22 4287 7800 Fax: +91 22 4287 7890 Website: www.sunteckindia.com CIN L32100MH1981PLC025346#2Sunteck Realty Ltd. Investor Presentation Q1 FY2022 NSE: SUNTECK | BSE: 512179 | Bloomberg: SRIN: IN | Reuters: SUNT.NS/SUNT.BO Sunteck#3Disclaimer Sunteck By attending the meeting where this presentation is made and any additional material is provided ("Presentation") or by reading the Presentation, you ("Recipient"), agree to be bound by the following limitations. This Presentation has been prepared on the basis of the estimates of the management of Sunteck Realty Limited (the "Company" or "Sunteck"), for the sole and exclusive purpose of providing information to the Recipient about the Company and its business, and is not and should be construed to be, directly or indirectly, an offer and / or an invitation and / or a recommendation and / or a solicitation of an offer to buy or sell any securities of the Company in any jurisdiction, nor shall part, or all, of this Presentation form the basis of, or be relied on in connection with, any contract or binding commitment or investment decision in relation to any securities of the Company. No offering of securities of the Company will be made except by means of an offering document containing detailed information about the Company. Securities may not be offered or sold in the United States unless they are registered or exempt from registration requirements under the U.S. Securities Act of 1933, as amended. There will be no offer of securities in the United States. The distribution of this Presentation in certain jurisdictions may be restricted by law and persons into whose possession this Presentation comes should inform themselves about and observe any such restrictions. This Presentation is strictly confidential and may not be copied, published, distributed or transmitted to any person, in whole or in part, by any medium or in any form for any purpose without the prior written consent of the Company. The information in this Presentation is being provided by the Company solely for the purposes set out herein and is subject to change without notice. Further, this Presentation does not purport to be all-inclusive or necessarily include all the information that the Recipient desires in its evaluation of the Company. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. The audited consolidated financial statements for Fiscals 2016 onwards have been prepared in accordance with Ind AS and the same for prior years have been prepared in accordance with Indian GAAP. This Presentation contains statements which may pertain to future events and expectations and therefore may constitute forward-looking statements. Any statement in this Presentation that is not a statement of historical fact shall be deemed to be a forward-looking statement, and the Recipient agrees that such statements may entail known and unknown risks, uncertainties and other factors which may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that the results and events contemplated by the forward-looking statements contained herein will in fact occur. None of the future projections, expectations, estimates or prospects in this Presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the Presentation. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. The Recipient acknowledges that it shall be solely responsible for its own assessment of the market and the market position of the Company and that it shall conduct its own analysis and be solely responsible for forming its own view of the potential future performance of the business of the Company. The information contained in this Presentation is as of June 30, 2021 except as may be stated otherwise. Neither the delivery of this Presentation nor any further discussions of the Company with any of the Recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date. The Company is not under any obligation to update the contents of this Presentation or inform Recipient of any changes in the affairs of the Company. The Company hereby expressly disclaims liability for any errors, inaccuracies, or omissions, and representations and warranties express or implied, as provided within or in connection with this Presentation. Any clarifications, queries or future communication regarding the matters stated in this Presentation should be addressed to the Company directly. The information given in this Presentation in the form of pictures, artistic renders, areas, consideration, project details etc. should not be construed to be or constitute advertisements, solicitations, marketing, offer for sale, invitation to offer or invitation to acquire. The intention of this Presentation is not to sell or market the unit/s of any of the projects of the Company and is limited to only providing information to Recipient of the Presentation. Certain data and project related numbers are basis operational performance excl. overheads for completed, ongoing and future projects respectively. The revenue recognition is as per IndAS guidelines. - Note The project elevations are for representation purposes only and are the sole property of the Company and may not be reproduced, copied, projected, edited in any way without written permission from the Company. © 2021 Sunteck Realty Limited, All Rights Reserved. Limited Alu Rights العالم الميدان#4Who is Sunteck? Asset-light, Mumbai-based real estate developer with deep expertise and proven execution in delivering projects across the full spectrum of segments, from uber luxury to affordable. Signia High RERA No.: P51800007984 SunteckCity 5TH AVENUE MAGATHANE, BORIVALI (E) VASAI VASAI Sunteck TIVRI NAIGAON (E) TIVRI NAIGAON (E) NEW ACQUISITION West SunteckWorld RERA NO.: P99000017606 | P99000017627 MaxX Sunteck World RERA NO.: P99000024072 | P99000024080 P99000024111 | P99000024173 Sunteck Promenade RERA NO.: P99000017606 | P99000017627 NAIGAON TIVRI NAIGAON (E) SunteckCity 4"AVENUE RERA NO.: P51800023072 OSHIWARA DISTRICT CENTRE, GOREGAON (W) OSHIWARA DISTRICT CENTRE, GOREGAON (W) 38* million square foot portfolio across 19 projects, with projects worth Rs. 70 billion (Rs. 7,000 crores) delivered to date. SunteckCity 1 AVENUE SunteckCity 2ND AVENUE OSHIWARA DISTRICT CENTRE, GOREGAON (W) OSHIWARA DISTRICT CENTRE, GOREGAON (W) BANDRA BORIVALI Future growth engines to come from a proven flywheel of JVs and Joint Development Agreements (JDAs) that require limited capital and generate high returns on invested capital. RERA No.: P51800002637 Gilbird RERA No.: P51800014646 SunteckGrandeur SunteckICON RERA NO.:P51800014845 ANDHERI (W) ANDHERI (W) BKC JUNCTION BKC JUNCTION *Includes ongoing and future projects, excludes 9 completed projects SunteckBKC51 RERA NO.:P51800022320 GOREGAON OSHIWARA DISTRICT CENTRE RAM MANDIR ANDHERI VASIND⚫ VASIND AIROLI AIROLI NEW ACQUISITION Signia Waterfront RERA No.: P51700011528 AIROLI Signia Oceans VILE PARLÉ ANDHERI (E) SunteckCREST RERA NO.: P51800022233 ONGOING PROJECTS COMPLETED PROJECTS G-BLOCK, BKC Signia Isles OC RECEIVED G-BLOCK, BKC G-BLOCK, BKC Signature OC RECEIVED ISLAND Signia pearl RERA No.: P51800007921 UPCOMING PROJECTS This map is for representational purpose only. 3#5Who is Sunteck? Sunteck Our Journey so far... ■ Sunteck 1.0 Our journey began in 2000 as a Business Center Operator at the then upcoming CBD of Bandra-Kurla Complex (BKC) in Mumbai ■ Sunteck 2.0 ■ In the next phase from 2006 onwards, with our differentiated and well-researched view that families would love to live and work in a central business districts such as BKC and premium residential complexes at CBD command 3x-4x premium over the commercial capital values - we created enormous shareholder value through our projects Signature Island, Signia Isles, Signia Pearl ■ We followed the success of BKC with the next BKC of Mumbai - ODC, Goregaon (W) with our differentiated view and acquired ~23 acres of prime land parcel that our peers were ot interested in. The result was the creation of Sunteck City integrated mixed-use development, thereby, leading to enormous shareholder value creation ■ Further details on our project can be found in our Intrinsic Value Presentation 4#6Sunteck 3.0 in Action Introducing Sunteck 3.0 These are early days at Sunteck. We have recently embarked on Sunteck 3.0 The salient aspects of Sunteck 3.0 are: 1. Maintain an asset light balance sheet Sell off most of our ~Rs 18 bn (Rs 1,800 cr) of finished inventory in the next 3-4 years Focus on JDAs like Naigaon, Vasai, Vasind and Borivali with low capex requirements Acquire land only if opportunity is extremely compelling Maintain mostly non-recourse, muted debt levels Leverage our brand and leading market position to grow the business 2. 3. Invest in and incentivize our team Sunteck 5#7S.No Sunteck 3.0 in Action Sunteck Asset Light Balance Sheet: Releasing Locked Up Capital We continue to actively monetize our finished inventory in our Completed Projects, releasing locked up capital. Rs 2,995 mn (Rs 300 cr) of inventory monetized through Q1 FY22 since end-FY20. Project Name %age of units sold No. of units unsold %age of units unsold Unsold area (msf)| Estimated unsold revenue potential* Completed Projects Signature Island, Isles, Pearl, 1 82% 39 18% ~ 0.30 ~ 17,000 BKC Signia Waterfront^, Navi 2 73% 46 27% ~ 0.04 ~ 550 Mumbai 3 Others# 97% 4 3% ~ 0.02 Total 83% 89 17% ~ 0.36 ~160 ~ 17,710 All figures are in Rs. Million * Est. based on current pricing, subject to variances due to changes in business, economic and other variables ^SRL share #Signia High, Borivali and Gilbird Hill, Andheri 6#8Sunteck 3.0 in Action Asset Light Balance Sheet: Stack Them High, Let 'em Fly! Our focus is to maintain high sales velocity on Ongoing Projects. Sunteck S.No Project Name %age of units sold No. of units unsold %age of units unsold Unsold area (msf)| Estimated unsold revenue potential* Ongoing Projects Sunteck City, ODC 1 (1st, 2nd and 4th Avenue)# 64% 606 26% ~ 0.81 ~ 11,300 Sunteck World, Naigaon 2 88% 559 12% ~ 0.26 ~ 1,300 (West World and Maxx World) Commercial Projects 3 (Crest, Icon and BKC 51)** Total 82% 1,165 18% ~ 0.46 ~ 650 ~1.53 ~ 13,250 #Sunteck City 1st Avenue has received OC. In 1st Avenue and 2nd Avenue-Nearly 80% inventory is sold. **Sunteck Share (Excl. JDA partner share) All figures are in Rs. Million * Est. based on current pricing, subject to variances due to changes in business, economic and other variables 7#9Sunteck 3.0 in Action Sunteck A Proven Flywheel: Near Term Growth Engines S.No Our near term growth engine is driven by several asset-light JDA models with limited upfront capital. Project Name Unsold area (msf) Estimated unsold revenue potential* Upcoming Projects 1 Sunteck City, ODC 2 Sunteck World, Naigaon 3 Sunteck Vasai 4 Sunteck Vasind 5 Sunteck Borivali Total All figures are in Rs. Billion - Sunteck Share (Excl. JDA partner share) ~ 3.0 ~ 45.0 ~ 7.3 ~ 27.0 ~ 4.5 ~ 34.9 ~ 2.6 ~9.3 ~ 1.0 ~ 13.0 ~ 18.4 ~ 130 *Subject to variances due to changes in business, economic and other variables 8 00#10Sunteck 3.0 in Action Sunteck Sunteck Business Summary ■ In both the completed as well as ongoing projects category, the company has been able to sell more than 80% of the total inventory available. ■ The balance inventory will provide estimated revenue potential of ~ Rs 31 bn (~ Rs 3,100 cr) in the 3-4 years. ■ The upcoming and future projects in the middle-income and affordable segment will provide. additional revenue potential of ~ Rs 130 bn over various phases to be launched. ■ The receivables from the sold inventory of ~ Rs 14 bn (~Rs 1,400 cr) shall be recovered as the projects gets completed. 6#11Sunteck 3.0 in Action Sunteck 2021: A Unique Opportunity for Sunteck ■In January 2021, the Maharashtra cabinet approved a 50% reduction in the premium fees paid by developers for ongoing and new projects between August 1 and December 31, 2021 ■ The savings that Sunteck can realize in 2021 by fast-tracking projects and paying premium fees within the year are significant It is a no brainer for Sunteck to take full advantage of the massive savings afforded to it by this unique opportunity. As a result, Sunteck will be pre-paying premiums to the tune of ~Rs 2,500 mn (~Rs 250 cr) between October and December 2021. The ROE on these payments is well over 35%. Thus, in 2021 we will be directing our cash towards these payments. 10#12Sunteck 3.0 in Action Sunteck Efficient Use of Capital We will use shareholder capital in the most prudent manner possible ■ If we have opportunities to deploy capital in high-return projects, we will do so without any reservation. The Maharashtra premium reduction in 2021 is a good example of front-loading capital spending to 2021 to maximize savings We may also use debt prudently to take full advantage of the 2021 opportunity 11#13Cash Flow Highlights - Cash Flow Highlights – Q1 FY2022 ■ Through a combination of inventory monetization and new project pre-sales, Sunteck recorded Rs 1,760 mn (Rs 176 cr) of pre-sales in the quarter, up 74% yoy Collections and cash flow are front and center at Sunteck, and our collections to pre-sales efficiency is among industry leading. In Q1 FY22, we achieved Rs 1,722 mn (Rs 172 cr) of collections, up 165% yoy and gross cash flows stood at Rs 320 mn (Rs 32 cr) ■ Net Debt/Equity is 0.17x, among industry low. Collections Efficiency at Sunteck Sunteck Pre-sales (Rs mn) Collections (Rs mn) 120% 14,000 5.5% 59% 12,000 10,000 8,000 90% 6,000 4,000 2,000 100% 76% 80% 60% 40% 98% 20% 64% 0 0% FY18 FY19 FY20 FY21 Q1 FY21 Q1 FY22 12#14Cash Flow Highlights Cash Flow Statement ■ Robust collections drives strong operating cash flow in Q1 FY2022. ■ Gross cash flow generated from operating activities at Rs 320 mn (Rs 32 cr) Particulars Gross Customer Advances Less Cost Incurred Q1 FY22 Q1 FY21 1,722 651 1,017 293 Less Overheads 224 127 Gross Operating Cash Flow - Surplus/ (Deficit) 481 232 : Less Interest Payments 161 208 Gross Cash Flow - Surplus/ (Deficit) 320 23 All figures are in Rs. Million *Provisional Sunteck 13#15Financial Highlights Sunteck P&L (CONSOLIDATED) In Q1 FY2022, Revenue from operations grew by 69% yoy to Rs 927 mn (Rs 93 cr) from Rs 550 mn (Rs 55 cr) in Q1 FY2021 EBITDA and EBITDA Margin for Q1 FY2022 stood at Rs 206 mn (Rs 21 cr), up 32% yoy and 22% respectively PAT for Q1 FY2022 stood at Rs 30 mn (Rs 3 cr) There is a change in accounting methodology for revenue recognition from Percentage of Completion Method (POCM) to Project Completion Method (PCM). Pre-sales convert to revenue recognition at project completion. Particulars Q1 FY22 Q1 FY21 YoY % Q4 FY21 FY2021 Revenue from Operations. 927 550 69% 1,911 6,139 EBITDA 206 156 32% 353 1,369 Operating Margin 22% 28% 18% 22% Net Profit 30 -31 NM 104 419 All figures are in Rs. Million 14#16Financial Highlights Consolidated Debt Trend In Q1 FY2022, the consolidated net debt to equity has been reduced significantly to 0.17x. Consolidated debt trend FY 2020 FY 2021 Q1 FY22 Secured Debt 7,903 5,969 5,871 Less: Cash & Bank Balance 1,662 991 880 Less Interest-bearing refundable deposit / loan to JDA partners 475 341 313 Net Secured Debt 5,766 4,637 4,678 Unsecured Debt 392 Adjusted Net Debt Networth Adj. Net Debt/Equity Add: Quasi-Equity* Total Adjusted Net Debt 6,158 4,637 4,678 27,487 27,724 27,776 0.24 0.18 0.17 912 910 884 7,070 5,547 5,562 Total Adj. Net Debt/Equity All figures are in Rs. Million 0.26 0.20 0.20 Sunteck *With effect from 9th March, 2020, Starlight Systems (1) LLP became a wholly owned subsidiary of SRL pursuant to the retirement of PDL Realty Pvt Ltd (Retired Partner). The Retired Partner's balance of current capital and fixed capital in SSILLP, aggregating to ~910 mn have been converted into a loan. The said loan will be in the form of 1% secured NCDs, which will be redeemed at premium out of the future free cash flow from the specified projects only with a tenure of 20 years. 15#17Appendix Sunteck#18OPERATIONAL PERFORMANCE TREND Strong growth continues ↑ Pre-sales grows by 74% yoy to Rs 176 cr ↑ Collections grows by 165% yoy to Rs 172 cr Appendix Operational Data Pre-Sales Collections Sunteck Rs million 1QFY21 2QFY21 3QFY21 4QFY21 FY2021 (Full Year) 1,012 2,003 3,492 3,710 10,217 651 1,411 2,525 3,210 7,796 Operational Data 1QFY22 Pre-Sales 1,760 Collections 1,722 17#19Appendix Sunteck COLLECTIONS EFFICIENCY IMPROVING Collections/Pre-sales has been strong at >50% over the previous years. In Q1 FY22, the ratio was strong at ~98%. Sunteck always endeavors to achieve >50% collections to pre-sales ratio as it leads to efficient cash flow management Collection Efficiency (Collections / Pre-sales) % 98% 100% 87% 90% 80% 72% 70% 70% 64% 60% 50% 40% 30% 20% 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 18#20Balance Sheet (Consolidated) Appendix Sunteck Liabilities FY21 FY 20 Assets FY21 FY20 Shareholders Funds 27,724 27,487 Trade Receivables 3,352 3,731 Minority Interest Inventories 26,145 27,438 Borrowings 6,879 9,207 Loans & Advances 1,161 1,289 Others 5,934 5,004 Cash & Bank balances 991 1,662 Provisions 35 30 Others 8,925 7,608 Total 40,573 41,728 Total 40,573 41,728 All figures are in Rs. Million 19#21Appendix Sunteck CREDIT RATING UPDATE The Long-term issuer rating of Sunteck is "AA-” and Short-term issuer rating is “A1+”. India Ratings & Research A Fitch Group Company ICRA A MOODY'S INVESTORS SERVICE COMPANY AA- / Positive AA-/Stable Key Rating Drivers - Healthy track record in real estate development in MMR Adequate committed cash flow visibility ➤ Prudent Financial Policies; Strong Credit Metrics ➤ Prudent cash flow management with adoption of asset light JDA model for new projects Price-Point diversity; Locational Advantage ➤ Low Execution Risk 20 20#22Sunteck Brand Portfolio Signature Uber Luxury Residences RESIDENTIAL Signia Ultra Luxury Residences SunteckCity Premium Luxury Residences Sunteck World Aspirational Luxury Residences Appendix Sunteck COMMERCIAL Sunteck Commercial & Retail The site pictures of our various ongoing projects are available on the company website. 21#23SUNTECK - ESG PERFORMANCE HIGHLIGHTS ☐ ☐ ☐ Environmental Social Appendix Sunteck Governance 'Go Green' CSR campaign Digital transformation to reduce resource consumption Rainwater harvesting and use of STP water Dual fitting tanks and LED lights to reduce energy use Fly ash and GGBS, which are waste generated from thermal power plant and steel plant, are used in concrete to reduce waste and make concrete durable ☐ ☐ Support for migrant labourers and frontline workers following the COVID-19 outbreak Donation of warm clothes, medicines and food at the Little Sister of the Poor home Support for nutrition and health of communities through Project Roshan Support for Wadia Hospital's stem cell transplant centre Promotion of hand-made, indigenous Diwali products Promotion of higher education at Plaksha in Mohali Philosophy on code of governance Policy framework consisting of Code of Conduct, Whistleblower Policy and CSR Policy Disclosures on corporate governance, including committee composition, skills and competencies of directors, directors' remuneration, CSR governance, etc. 22#24IT'S CORPORATE SOCIAL RESPONSIBILITY A Vaccination Drive arranged for Sunteck Employees ACCINE Sunteck TIME unteck IT'S VACCIN TIME IT'S AVACCINATED I AM A teck IT'S IT'S VACCINE Sunteck TIME SUNTEN Sunteck VACCINE TIME IT'S VACCIN TIME nteck IT VAC TI IT'S VACCINE TIME Sunteck) IT'S Sunteck IT'S IT'S Su Sunteck VACCINE S TIME TIME IT'S VACCI TIME Suntec IT'S VACCIN TIME Sunteck #SAFETYAT ACCINE Sun VID-19 TIME CINATION IT DRIV Sunteck inteck VAC TIM IVE BY Sunteck CCINE inteck VA Sunteck T'S IT'S Suntec CINE ME IT'S VACCINE Sunteck) TIME VACCINATED IT'S Sunteck VACCINE TIME VACCINE Sunteck) VACCINE IT'S IT'S I AM A eck NE Sunte SUNTENNIAL VACCINE Sunteck) TIME VACCIN TIME IT'S VACCINE Sunteck TIME Sunteck IT'S VACCIN TIME Sunteck) ACCINE FACCINATED PROUD TO BE A VACCINATED SUNTENNIAL SAFETY COMES FIRST Su ACCINE Sunteck #SAFETYATWORK ACCINE Sunt Appendix Sunteck HIL HE Sunteck World Sun NAIGAON Sunteck) Sunteck HEA HILL HEAVENLY LAUNCHING NEW TOWER unteck World Sun NAIGAON Sunteck Sunteck IT'S VACCINATED. I AM A E Sunteck IT'S VACCINE SU IT'S VACCINE Sun TIME SUNTENNIAL IT'S nteck VACCINE TIME teck VACCIN TIME 'S INE T Su Sup .CO TIM ACCINE Sunteck HEAV HILL unteck World Sunt NAIGAON Sunteck HEAVE HILL ck 1, 2 & 3 BHK RESIDENCES Sunteck World unteck World Sunte NAIGAON NAIGAON Sunteck HILLV Ante eck Sunteck SAFETYAT Sunteck) ck 23#25Appendix Sunteck CORPORATE SOCIAL RESPONSIBILITY com Sunteck SPREADING WARMTH AMONGST OUR FRONTLINE HEROES Blanket Distribution Amongst All Ground Duty Staff WE RISE FTING ERS NG Sunteck WE RISE FTING HERS ACTUAL IMAGE ACTUAL IMAGE ONLY WHEN THE NATURAL HERITAGE STAYS ALIVE, IS WHEN OUR LEGACY WILL TRULY THRIVE! Sunteck Realty supports Government's initiative to preserve the Gilbert Hill Heritage Site (Mumbai) as a National Monument. Musteck's WE RIS BY LIFTING OTHER JOY OF G ACTUAL IMAGE Sunte WE RISE TING BY COPPERS ACTUAL IMAGE 24#26Thank You! Corporate Office 5th Floor, Sunteck Centre, 37-40 Subhash Road, Vile Parle (East), Mumbai - 400057 Tel: +91-22-42877800 Email: [email protected] Sunteck 25