Q4 & FY12 Analyst Presentation

May 30, 2012

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SAFE HARBOUR

This presentation contains certain forward looking statements concerning DLF’s future
business prospects and business profitability, which are subject to a number of risks and
uncertainties and the actual results could materially differ from those in such forward looking
statements. The risks and uncertainties relating to these statements include, but not limited to,
risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth,
competition , economic growth in India, ability to attract and retain highly skilled
professionals, time and cost over runs on contracts, government policies and actions with
respect to investments, fiscal deficits, regulation etc., interest and other fiscal cost generally
prevailing in the economy. The company does not undertake to make any announcement in
case any of these forward looking statements become materially incorrect in future or update
any forward looking statements made from time to time on behalf of the company.

For the purposes of this presentation unit measurement of 1 sq meter = 10.76 sq feet.

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FY 2012…Economic Outlook
 ECONOMY
 Weak macro environment and global uncertainties to continue:

 De-acceleration of GDP growth; real GDP to grow between 6.5%-7%;

 High interest rates & tight liquidity regime
 Depreciating rupee
 Inflation to be sticky
 Weak investor sentiment thereby affecting investment climate
 Reform agenda to take a back seat

 Conclusion: no signs of relief for the next few quarters.

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FY 2012…Sectoral Outlook – Real Estate
 REAL ESTATE
 Real Estate sector to be adversely impacted:
 Tough funding environment for the corporate sector
 High interest rates shall impact demand
 Inflationary pressures shall impact margins
 Appropriate resource capacity constraints to continue
 Stretched “Bringing to the Market” cycle in the current environment
 Customers have become choosy and discerning
 Commercial segment to be adversely impacted

 Only ray of hope:

 Genuine consumer demand for high visibility projects by reputable developers

 Challenge:
 To provide good product to increasingly discerning customers with all approvals
 Make reasonable margins in a tough environment
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Company Performance – FY 12
 Despite tough market conditions, the Company has broadly met with its business plan targets for FY 12:

 Gross Sales bookings of 13.5 msf against 10 msf in FY11

 Net Leasing of 1.41 msf against 4.38 msf in FY11
 Completed projects of approx. 13 msf; delivery underway as against 7 msf in FY11
 EBITDA margins between 45-50%
 Divestment of non-core of Rs. 1,774 crores in FY 12 against a target of Rs. 5,000-6,000 crs in the
medium term; Rs. 152 crs in Q4FY12
 Continued focus on plotted developments to improve cash cycle and mitigate inflationary pressures
 Limit land purchases to strategic purchases of land in New Gurgaon / New Chandigarh to maintain
competitive advantage in high growth regions
 Migrated all execution to 3rd party, best in class construction agencies

 Whilst budgeted costs have kept pace on a quarterly basis with inflation, however shift to 3rd Party best in
class general contractors coupled with unabated inflationary pressures / forex devaluation in H2 led to a one
time impact of approx Rs 300 Crs
 Excluding the one off, EBITDA margins maintained at steady state level of 45-50%

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Business Strategy – FY13

 In tough economic conditions, the Company continues to remain focussed on the existing business
strategy:

 Conserve cash with moderate capex and land acquisition

 Focus on fresh launches with the improvement in the approval cycle

 Focus on high margin projects (Luxury/Plotted) ; moderate volumes in mid-income segment .

 Protect margins through ‘cost escalation’ clauses

 Focus on delivery to create goodwill amongst customers; reap benefit in subsequent launches

 Commercial Leasing – Increase average rentals and focus on leasing of semi-finished and ready to
occupy properties thereby limiting capex in the near term.

 Debt reduction – Strengthen operational cash flows, enhance momentum on non-core divestments
along with a moderation in land aggregation & capex

 Non- core asset divestment - Potential value for further divestments in next 6 months stands at Rs
3,000-4,000 crs. The overall target for asset divestments increased from Rs 4,500 crs to Rs 10,000
crs to be achieved in the medium term

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 Development Company “DevCo” FY12
 13.5 msf sales achieved in FY 12 vs 10 msf in FY 11

 Q4FY12 sales booking at 6.75 msf versus 3.8 msf in Q4 FY 11 and 3.3 msf in Q3 FY 12

 Projects launched in FY12 :12 msf , of which 9.50 msf sold

 Input inflation has led to moderation in launch of construction intensive , mid range housing projects

FY 2012 - Sales Booked (msf / Rs Crs)

Avg.
Sales Value
Region / Heads City Area Sold ( msf ) Realisation (
( Rs Crs )
psf )

Gurgaon Gurgaon & New Gurgaon 4.88 3022 6193

Mullanpur, Lucknow, Hyderabad, Chennai,

Rest of India * 7.60 1706 2245
Kochi & Banglore

Super Metro Indore,Delhi,GK & Kolkatta 1.07 550 5140

Total 13.55 5278 3895

* includes 2.30 msf of plotted development in Hyderabad sold at an average realisation of Rs 610 /sq ft.
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 DevCo Q4 FY12

Total msf Development Potential (Msf)

Particulars
Q4-12 Q3- 12 Q4– 11
300
250
Sales Status 200
Opening Balance 43.50 49.70 44.80 150 Series1

Add:- Sale Booked During the Qty 6.75 3.30 3.80 100
50
Less : Handed over / Suspended (0.54) (9.50) (2.20)
0
Closing Balance 49.70 43.50 46.40 Q4' 12 Q3' 12

Under Construction Under Construction (Msf)

Opening Balance 35.10 39.60 40.70 45

New Launches / Additions / Suspended 6.04 4.93 0.86

Less:- Handed over (0.54) (9.50) 2.20 40

Closing Balance 40.60 35.03 39.36

Series1
35

 6.75 msf gross sales booked in Q4FY12 vs 3.30 msf in Q3FY12 & 3.80 msf in Q4 11
30
 Plotted development includes - Alameda, Lucknow ,New Chandigah & Hyderabad sales done
Q4' 12 Q3' 12
during the Qtr
 13.5 msf gross sales booked during FY12 vs 10 msf FY11

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Rent Company “RentCo” FY12

Offices

 Net leasing 1.41 msf in FY12 vs 4.38 msf in FY11

 Total leased area as on date 21.28 msf

 Net leasing of 0.25 msf in Q4 FY 12

 Annualized Rental income increased to Rs 1350 Crs ( Q4 FY12 – Rs 337 Crs)

Retail Malls

 Vacancies have reduced from 7% in FY 11 to 4% in FY 12

 Total leased area as on date 1.38 msf

 Annualized Rental income increased to Rs 250 Crs ( Q4 FY12 – 60 Crs)

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 RentCo Q4 FY12
Total msf Development Potential (Msf)
Particulars
Q4-12 Q3- 12 Q4 - 11
74
Lease Status
72
Opening Balance 22.54 24.72 23.73 70
Add:- Lease Booked During the Qty 0.64 0.42 1.38 68
Series1
66
Less :- Cancellation (0.39) (0.20) (1.34)
64 68 68
Less :- Sold / Adjustment (0.13) (2.39) - 62
Closing Balance 22.66 22.54 23.77 60
Q4 Q3

Under Construction
Opening Balance 9.21 12.45 15.69
Under Construction (Msf)
New Launches / Additions - - 0.00
Less:- Handed over (0.00) (1.00) (1.20)
10
Less :- Suspension/Adju (0.00) (2.24) (0.00)
8
Closing Balance 9.21 9.21 14.49
6
9 9
4
 0.64 msf of gross leasing in Q4FY12 vs 0.42 msf in Q3 FY12 & 1.38 msf in Q4 FY11 [Net leasing – 0.25 msf
2
in Q4 FY12 vs 0.22 msf in Q3 FY12 & 0.04 msf in Q4 FY11] 0
Total annuity income of Rs 450 Crs including Rs 390 Crs rental income Q4 Q3
 2.72 msf of gross leasing FY12 vs 4 msf YTD FY11 [ Net leasing 1.41 msf YTD FY12 ]
Series1
Total annuity income of Rs 1,800 Crs

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 Profit & Loss Summary – Q4 FY12
Q4 FY 12 vs Q3 FY 12
 Sales (incl Other Income) at Rs 2747 Cr, compared to Rs 2,396 Cr.
 Net profit at Rs 212 Cr, as against Rs 258 Cr
 EBIDTA margins at 34% ( after netting one time cost of Rs 300 crs ) versus 49%

Profitability Q4 12 Q3 12 % Change Q4 11 % Change

All figures in Rs Crs

Sales 2747 2396 15% 2870 -4%
Construction 1268 810 57% 1599 -21%
Staff Cost 149 138 8% 147 1%
Other Expenses 402 263 53% 270 49%
EBIDTA * 928 1184 -22% 853 9%
Finance Charges 604 620 -3% 456 33%
Depreciation 164 180 -9% 166 -1%
PBT 161 385 -58% 231 -31%
Tax -41 135 -130% 16 -364%
Minority / Prior Period -10 -9 13% -129 -92%
PAT 212 258 -18% 345 -39%
* After netting one time cost of approx. Rs 300 crs

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 Consolidated P&L – Q4 & FY12

Q4 FY12 (Audited) Q3 FY12 (Reviewed) Q4 FY11 (Audited) Year ended FY12 (Audited) Year ended FY11 (Audited)
Percentage
Percentage of Percentage of Percentage of Percentage of
Sl.No. Consolidated Financials Rs. Crs. Rs. Crs. Rs. Crs. Rs. Crs. Rs. Crs. of Total
Total Revenue Total Revenue Total Revenue Total Revenue
Revenue
A)
1 Sales and Other Receipts 2,617 2,034 2,683 9,629 9,561
2 Other Income 131 362 187 594 584

Total Income(A1+A2) 2,747 100% 2,396 100% 2,870 100% 10,223 100% 10,145 100%

B) Total Expenditure(B1+B2+B3) 1,819 66 1,213 51 2,017 70 5,724 56 5,808 57

1 Construction Cost 1,268 46 811 34 1,600 56 3,967 39 4,300 42
2 Staff cost 149 5 138 6 147 5 586 6 572 6
3 Other Expenditure 402 15 263 11 270 9 1,171 11 936 9

C) Gross Profit Margin(%) 54% 66% 44% 61% 58%

D) EBITDA (D/A1) 928 34 1,184 49 853 30 4,499 44 4,337 43

E) EBIDTA ( Margin) 34% 49% 29% 44% 42%

F) Financial charges 604 22 620 26 456 16 2,246 22 1,706 17

G) Depreciation 164 6 180 8 165 6 689 7 631 6

H) Profit/loss before exception items 161 6 384 16 232 8 1,564 15 2,000 20

I) Exception items 16 1 - - 16 0 -
J) Profit/loss before taxes and after exception items 145 5 384 16 232 8 1,548 15 2,000 20
K) Taxes expense (41) -2 135 6 16 1 369 4 459 5
L) Prior period expense/(income) (net) 10 0 0 0 (94) -3 9 0 (97) -1
M) Net Profit after Taxes before Minority Interest 176 6 249 10 310 11 1,170 11 1,638 16

N) Minority Interest 4 0 11 0 31 1 (2) 0 (7) 0

O) Profit/(losss) of Associates 32 1 (2) 0 4 0 34 0 9 0

P) Net Profit 212 8 258 11 345 12 1,201 12 1,640 16

Note :

1 Construction Cost Includes Cost of Land, Plots and Constructed Properties and Cost of Revenue-others

2 Gross Profit Margin = (Total Incom e - Construction Cost) / Total Incom e

Above figures includes losses from non-core businesses .i.e. Hotels & the DLF Pramerica Life Insurance businesses of
Rs 229.5 crores for FY12 and Rs 76 crore for Q4FY12.
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Consolidated Balance Sheet – FY12
Rs Crore
Particulars As on As on
March 31, March 31, 2011
2012
A. Equity and Liabilities (Audited) (Audited)
1 Shareholders’ funds
(a) Share capital 2,138.88 2,149.78
(b) Reserves and surplus 25,097.04 24,182.32
Sub-total - Shareholders' funds 27,235.92 26,332.10
2. Minority interests 420.67 575.20
3. Non-current liabilities
(a) Long-term borrowings 16,824.16 18,307.63
(b) Other long-term liabilities 2,321.78 2,442.01
(c) Long-term provisions 48.52 31.21
Sub-total - Non-current liabilities 19,194.46 20,780.85
4. Current liabilities
(a) Short-term borrowings 3,398.74 3,344.53
(b) Trade payables 2,580.70 2,263.63
(c ) Other current liabilities 9,804.30 6,857.66
(d) Short-term provisions 754.65 663.75
Sub-total - Current liabilities 16,538.39 13,129.56
Total – Equity and Liabilities 63,389.44 60,817.71
B. Assets
1. Non-current assets
(a) Fixed assets 27,706.85 28,106.54
(b) Goodwill on consolidation 1,624.79 1,384.04
(c) Non-current investments 973.28 715.24
(d) Deferred tax assets (net) 334.93 163.28
(e) Long-term loans and advances 3,146.25 2,017.29
(f) Other non-current assets 144.10 187.66
Sub-total - Non-current assets 33,930.20 32,574.06
2 Current assets
(a) Current investments 153.49 280.53
(b) Inventories 16,175.57 15,038.76
(c) Trade receivables 1,765.91 1,565.97
(d) Cash and cash equivalents 1,506.23 1,321.78
(e) Short-term loans and advances 2,027.87 2,149.16
(f) Other current assets 7,830.17 7,887.45
Sub-total - Current assets 29,459.24 28,243.65
Total – Assets 63,389.44 60,817.71

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Consolidated Cashflow – FY12
Rs Crore
Particulars 31-M ar-12 31-Mar-11

A. CASH FLOW FROM OPERATING ACTIVITIES

Ne t profit be fore taxation and minority inte re s t 1,547.50 2,000.20
Adjus tme nts for:
Depreciation, amortisation and impairment 688.83 630.72
(Profit) /Loss on sale of fixed assets, net 3.06 (66.00)
Interest/guarantee charges 2,246.48 1,705.62
Income from investment in trust (3.76) (1.50)
(Profit)/ loss from partnership firms, net (2.95) 3.94
Provision for doubtful debts and advances 155.93 50.07
Advances / assets written off (including preliminary expenses) 19.54 8.84
Exchange fluctuations (net) 2.60 (9.39)
Prior period items (6.14) 80.50
Profit on sale of investments, net (261.44) (158.68)
Unclaimed balances and provisions written back (23.54) (25.17)
Amortisation of deferred employees compensation, net 38.90 50.40
Amount forfeited on properties (29.23) (30.94)
Provision for employee benefits (6.68) 3.55
Interest/ dividend income (230.96) (260.99)
Operating profit before working capital changes 4,138.13 3,981.17
Movements in working capital :
(Increase) / decrease in trade and other recievables (601.74) (3,037.31)
(Increase)/decrease in inventories (610.81) (2,034.93)
Increase/(decrease) in current liabilities and provisions 713.21 4,595.02
Cash used in operations 3,638.79 3,503.94
Direct taxes paid (net of refunds) (1,146.93) (746.97)
Ne t cas h ge ne rate d from ope rating activitie s (A) 2,491.87 2,756.98

B . CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of fixed assets (including Capital work in progress) (211.71) (1,101.28)
Proceeds from sale of fixed assets 123.08 414.85
Interest/dividend received 295.94 265.95
Purchase of investments (137.19) (389.80)
Proceeds from sale of investment - 4,867.24
Ne t cas h ge ne rate d from/(us e d in) inve s ting activitie s (B ) 70.11 4,056.96

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Consolidated Cashflow – FY12 Contd….
Rs crore
Particulars 31-Mar-12 31-Mar-11

C. CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of debentures (net) - 500.00
Proceeds from long-term borrowings 1,021.00 9,138.49
Repayment of long-term borrowings - (7,468.19)
Proceeds from (redemption) / issuance of preference shares (11.06) (4,109.60)
Prremium on redemption of preference shares - (1,237.87)
Proceeds from short term borrowings (net) 54.21 145.41
Proceeds from issue of capital (including securities premium) 144.51 132.16
Dividend paid (510.82) (829.67)
Dividend tax paid (84.41) (82.81)
Interest/guarantee charges paid (3,012.51) (2,591.32)
Net cash (use d in) / generate d from financing activities (C ) (2,399.08) (6,403.41)
Net incre ase/ (decre ase) in cash and cash equivale nts (A + B + C) 162.90 410.53

Cash and cash equivalents at the beginning of the year 1,245.94 835.41
Cash and cash equivale nts at the end of the ye ar 1,408.84 1,245.94
162.90 410.53
Note :
Cash and bank balance 1,506.23 1,346.05
Less: Fixed deposit (pledged/under lien/earmarked) 94.96 86.49
Margin money - 3.98
Unclaimed dividend 2.43 2.01
Exchange gain/(loss) - 7.63
1,408.84 1,245.94

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 Debt Position – FY12

Net
Net Debt Position Q2 Q3 Q4
Reduction

Rs Crs Rs Crs Rs Crs Rs Crs

Gross Debt as per Balance Sheet 25450 25026 25066

Less : Equity shown aas Debt / JV Co Debt 962 1013 1030
Gross Debt ( Net of Equity shown as Debt / JV Co Debt ) 24488 24013 24036
Pref. Shares 202 202 202
Gross Debt Position ( Net of Equity shown as Debt / JV Co Debt ) 24690 24215 24238
Less : Cash in hand -1763 -1328 -1513
Less : Exchange fluctuation -129
Net Debt Position 22927 22758 22725 33

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 Execution
Project Under Construction (msf)
Area in msf

Region Q4 12 Q3 12 Q4 11
55
Gurgaon 13 13 21

Super Metro 7 8 7
50
Rest of India 21 15 10 54
50 2
For Rent Co 9 9 15 45 45

50 45 53
40

 Completed projects of approx 13 msf in FY 12; delivery Q4 12 Q3 12 Q4 11

Construction Suspended Ongoing Construction
underway ( Q4 FY12 – 0.6 msf)

 FY13 expected deliveries between 10-12 msf spread across

Gurgaon, Kolkatta, Chennai, Kochi etc

 Higher deliveries will lower future inflationary pressures,

strengthen cash management and improve customer service
and Company’s goodwill.
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 Our Development Potential

Area ( msf ) Other Land Hotel Land G.Total

Gross Area – as on 1st Jan-12 341 8 349

Less : Projects Disposed off ( Net ) 0 0 0

Less : Handed over 0.54 0 0.54

Net Land Bank - as on 31st Mar-12 340 8 348

- Dev. Co 272
8 348
- Rent. Co 68

Notes
1. High potential & short / medium development potential not affected by above actions
2. Project disposed off relate to Non core non strategic land Parcels across various locations and amount
recovered thereof

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Thank You

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