| |
| |


  
—


  
   
   

 
 
 —
   
  
 
 
|
' The real estate sector is of great importance in a
developing country like India.
' An estimated shortage of 26.53 million houses
during the Eleventh Five Year Plan (2007-12)
provides a big investment opportunity.
' India leads the pack of top real estate
investment markets in Asia for 2010, according
to a study by PricewaterhouseCoopers (PwC)
and Urban Land Institute.

|

' DLF- Delhi Land And Finance

' India¶s biggest real estate developer

' BUILDING INDIA- Mission and vision of company

' Founded as a

 

     

' Current chairman- Mr. Kushal Pal Singh ± world¶s richest

property developer- world¶s 98th richest man according to
forbes
ë!"
!#
#
2010 (Rs. Cr.) 2009 (Rs. Cr.)

Cash flow from Operating Activities (A) 39,524 1,36,586

Cash flow from Investing Activities (B) (2,41,999) (1,15,117)

Cash flow from Financing Activities (C) 1,43,494 (43,754)

Net increase/ decrease of cash and cash equivalents (58,980) (22,284)

(A+B+C)

Cash and cash equivalents at the beginning 75,940 98,224

Cash and cash equivalents at the close 16,960 75,940

"$

' Cash flow from Operating Activities shows a decrease because

of a rise in debtors and decrease in overall current liabilities.

' Cash flow from Investing Activities shows an outflow of cash

because the company sees a lot of scope to invest post
recession. It has started investing in its subsidiaries and has
several projects in hand.

' Cash flow from Financing Activities shows and increase in cash
due to the company taking long term loans.
$%%

" 

!
& |
' The company paid a debt of Rs. 5633 as
against a mandatory payment of Rs. 3549
' The Average Cost of Debt stood at 10.5% as
on 31st March 2010.
' The Debt Equity Ratio lowered from o.78 in
2008-2009 to 0.53 in 2009-2010.
' The company has set a target for Rs. 250 bn
of core assets disinvestment for the next 6
quarters.
' It has done Rs. 29 Bn in Q1FY11.
' Key for the company to cut its debt burden.
' DLF is also replacing short term loans with
long term loans which do not affect the debt
and also have a lower interest rate.
' DLF, is making a quick exit from hospitality
sector by selling off its 97% stake from a
luxurious hotel group µAman Resorts¶.
' Main motive of DLF is to become debt free
CORPORATE STRATEGY
' Business organised on vertical basis: Homes,
Office, Retail, Hotels, etc., each independent of the
other
' Same structure is followed not only at the corporate
level, but flows down to the regional/local level
' DLF, at the corporate level, plays the role of an
aggregator of businesses where stiff, competing
interests of different SBUs and businesses get
aligned, resulting in sum of parts being worth more
than parts
' * Going forward, DLF plans to monetize
subsidiaries/assets to unlock the embedded value
$'( %)
' * With core businesses reaching stable operating performance,
focus is to aggressively ramp up new businesses like hotels,
infrastructure, SEZs, etc.
' Key focus on execution of projects ±with current levels reaching
a run rate of 62 msf across businesses (excluding Hotels)
' * DLF will look into making small µpure¶investments in non-real
estate businesses, with target ROI of more than 20%
' The compensation structure within the mid / senior level
empolyees allows for participation in the success of various
projects/businesses
' Base salary ±30% with a 70% variable component linked to the
KPAs, overall through stock options.

| 
 

' Pan-India presence (across 32 cities catering to all

market segments)
' All land resource within the Masterplansof cities and
towns
' 90% of resource available as large, contiguous plots
of land
' 80% of developable area in super-metros and
metros
' Sufficient land resource to meet long-term goals.
p a     

 

   




 
!""
 164 64 70 26 5
a

 92 33 36 14 9
 p# 4 4 0 0 0
p# 41 33 6 1 0


 $%
$&
  432 113 231 73 16
'
$( 

 
  18 4 2 10 2
—

     )  
* * )+* +* )*
pARGE INTEGRATED TOWNSHIPS
' DLF pioneered development of large integrated
townships decades ago with the development of the
3,000 acre DLF City, Gurgaon.
' Townships include residential, commercial and retail
properties in a modern city infrastructure, complete
with schools, hospitals, hotels, shopping malls and
recreational hubs
' DLF has inked JV with Nakheel LLC of the UAE,
who have to their credit the development of The
Palms and Al Burj, among other outstanding
architectural projects
pARGE INTEGRATED TOWNSHIPS

' !
 
,
-An integrated township spread over 9,168 acres on

the outskirts of Bangalore with potential value creation of approx. Rs
50,000 crore (approx USD 12.5 billion).Work to start by mid 2008.
' 
( .
 -Acquisition of SwatantraBharatMill, along with pre-owned
lands, will have a development potential of approx. 10 msf with potential
value creation in excess of Rs 12,000 crore (approx USD 3 billion)
' Y ,/ -A 4,000 acres township falling in the new masterplan
for Gurgaon, with all segments of residential, commercial and retail
'  0
120
-5,000 acres of township on the western outskirts of
Kolkata
' 
  
 -Acquisition of land started for building a high-end
resort city for holiday and luxurious lifestyle


' India forms an important part of growth strategy for

every major multinational worldwide
' Entry of multinationals has grown by over 300% in
last two years alone leading to huge demand for
office space
' Demand for IT/ITES services (expected to grow at
15-20% CAGR over FY2010-16)
' Indian corporatesgetting increasingly dynamic
creating huge demand for quality office space
' Total commercial real estate demand likely to be ~
450-530 msf by FY 2011.

)
|

' 10-year annual target delivery of 8 mnsq ft every year.
' Given the scarcity of quality organized retail, DLF enjoys the
benefits of a portfolio of premium locations across the country
and rush by large retailers
' DLF envisages to introduce a new retail infrastructure to cater to
the need for shopping malls and commercial centresacross al
segments and all places in India
' DLF has plans for delivering 1 msf of luxury malls, 4 msf of
shopping malls and 3 msf of neighborhood malls annually
' Current developable land resource earmarked for retail stands
at92 msf
' All major retail players, including new entrants pitch aggressively
for space in DLF Malls
' 11msf under construction
RETAIp
MAppS & COMMERCIAp COMPpEXES

' Modern retail formats in India command just 3% of

total retail market, much lower than developed
markets (US ±85% share) and even Asian countries
(Malaysia ±55%, Thailand ±40%, China 20%)
' Organized retail segment in India is expected to
grow at a rate of 25% to 30% over the next 5 years.
' Organized retailing would require around 350-400
msf of retail real estate in India by FY 2016.

| 
*
' DLF India has proposed SEZ in many parts in
India like Amritsar, Ludhiana, Gurgaon and
Ambala.
' DLF SEZs have targeted the IT Sector;
however, DLF Townships have been on the
agenda of DLF Universal
' DLF Universal has announced plans to rope
in major partnerships to develop the Special
Economic Zones in Chennai and Coimbatore.
Wind Power Projects by Dp
' DLF group is the largest owner of wind power plants in
India with an installed capacity of 228.7 MW.
' DLF has initiated its wind power portfolio in March
2008. Currently the group owns wind farms in the
states of Gujarat (150 MW), Rajasthan (34.5 MW),
Tamil nadu (33MW), and Karnataka (11.2 MW).
' These projects reduce about 4.7 tonne of CO2
emissions on annual basis.
' The wind power projects in the states of Gujarat and
Karnataka are already registered for carbon credits at
UNFCCC and generating over 3 Lakh CERs (Certified
Emission Reductions) annually.
Wind Power Project pocations
' 150 MW wind power project in Kutch,
Gujarat.
' 11.2 MW wind power project in Gadag,
Karnataka.
' 33 MW wind power project in Osisan and
Ratan Ka Baas, Rajasthan.
' 34.5 MW wind power project in Elavanthi and
Panapatti, Tamilnadu.

| 
!|

  #("$"(#
%+),

' Risk
' Acquisition
' Regulation
' Territoriality
' Taxation
ë|- !|

' DLF BRANDS
' DLF ASSETS
' DLF HOME DEVELOPERS LTD.
' DLF CYBER CIY DEVELOPERS LTD.
' DLF HOTEL HOLDINGS LTD.
' DLF INFO PARK DEVELOPERS(CHENNAI)
LTD.
' CARAF BUILDERS AND CONSTRUCTIONS
PVT. LTD.
ë


./ 

' UNITECH CLAIMS TO BE INDIA¶S SECOND
LARGEST REAL-ESTATE INVESMENT
COMPANY - 10,538 CRORE RUPEES
TOTAL ASSETS (MARCH 2010)
' DIVERSIFYING INTO TELECOMS IN
COOPERATION WITH NORWAY¶S
TELENOR GROUP
' ENVISION FOR 50% GROWTH PER YEAR
SINCE 2008

 |
 

' The stock has underperformed in comparison

with the broader indices and is expected to
improve.
' We believe that the current bullish
consolidation could lead to a potential upside
up to the levels of Rs 430 and above.
' As the market stabilizes there are chances of
growth.
 )"$
' Credit freeze stemming from the collapse of
Lehman Brothers prompted investors and
speculators to withdraw investments from this
sector
' Property developers, who raised funds
through external sources, were left stranded
with minimal cash flows and huge debt
obligations surfacing in the near term.
 )"$
' The company¶s net profit for 2008-09 dipped over 41
percent to Rs.4,629 crore from Rs.6,176 crore earned
the previous year.

' DLF is the market leader in this sector with net profit of
1547 cr.

' It was way lower than its last year profit by more than
1000 cr.

' It also delayed a buyback of INR 1,100 crore as a result

of liquidity crunch.
 )"$
' It was well supported by the timely launch of
IPL.

' The share of this co. touched the all time high
of 1727 in feb. 2008. but in the year 2008-09
it was high at 446.90 and low at 124.15.

' Its present market capital is Rs 74,704.46

crore.
0|(

Strength Weakness

Opportunities Threats
 '#
' !     


_DLF retains internationally and nationally
renowned architectural, construction and consulting firms for its projects.

' #

(    ( - The Company recognizes that extensive land
reserves are the most important resource for a real estate developer.

'   "! 

- The Company¶s size allows it to benefit from
economies of scale. DLF is able to purchase large plots of land from
multiple sellers, thus enabling it to aggregate land at lower prices.

' |
 


"
(

- DLF has a tradition of innovation in the Indian
real estate market. It is one of the first developers to anticipate the need
for townships on the outskirts of fast growing cities and is generally
credited with the growth of Gurgaon.

' # 
   


    
- The Company has an
experienced, highly qualified and dedicated management team.
01
' Y   





 "3  

'   

0-

Any weaker-than-expected GDP growth for the domestic economy
could negatively affect sentiment of buyers, leading to elusive demand,
which could render sales and earnings estimates for DLF unrealizable

' a 
0" 
 
 


 1  




/ 
NCR region still accounts for 42% of the development area for the
company, thus exposing it to significant price movements in the regions
$$%

' # 
"3
 


  
"

' 
 
( 
 
%,   

. 


0 '  

4
, 

' ( 
 

 ,

5 ! 0, & 

 




#
' 


 


  0
  

( 


 
New rivals Bombay Dyeing, Golden Tobacco and Century Textiles. There has
been a precedent with groups like Tata, Mahindra and Godrej having turned
developers. The Tata group has Tata Housing and Tata Realty while
Mahindras venture is called Mahindra Lifespace Developers. Godrejs venture
goes by the name of Godrej Properties.

 -


á
 
   
   

 !" #$
%á%
O

 
&
 ''( )

& 

*+%%%%%&,
&* -á.á%% (/&  
 ( 
 
&
*  
  0
&  (  12.( -á+%%



#!/
3 
'
 )
&    #$. '( 
4 
)
&'

'
0 +
& '
5   '
 *
 
('
'
((((
 !  
6
'
 7 89 :0&  
 **
   
 
( 

,
( &   
   ($ )

  & 

*;2;44,( -''
/& 0   *( '
: 
(( ''
.%%
&

 
 & ,''
0 (
*
*  (
 


' India¶s largest real estate company in terms of revenues,

earnings, market capitalisation and developable area with a 62-
year track record of sustained growth, customer satisfaction and
innovation
' Low risk due to multiple businesses and segments within
businesses, across geographies
' All earnings enablers in place ±high quality / high value ³zoned´
land resource in super metros & metros and motivated teams at
local level to execute projects
' CRISIL upgraded the rating from µA+ with a negative outlook¶ to
µA+ with a stable outlook¶
' Businesses (Commercial, retail & luxury homes) which contribute
more than 80% of long term value are at stable operating
platform
' Stupendous response to the launch of µmid-income homes¶±
strong validation of strategy
' Set to change the hospitality landscape in India-
On way to set up 20,000 business hotel rooms in the next 5
years in partnership with Hilton
Acquisition of domain expertise & assets with buy-out of
Aman Resorts business
' Only developer with the experience of setting up of large
townships