Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — Debt Investor Presentation (July 2021)
33 slides from Adani Ports & Special Economic Zone's debt investor presentation, Jul 21, 2021
Slide 1: Revised Investor's Presentation cover letter
Ref No: APSEZL/SECT/2021-22/53 July 21, 2021 BSE Limited National Stock Exchange of India Limited Floor 25, P J Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 532921 Scrip Code: ADANIPORTS Sub: Revised Investor’s Presentation. De
Slide 2: Adani Ports and SEZ Limited
July 2021 Adani Ports and SEZ Limited Strictly Private & Confidential
Slide 3: Disclaimer
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES , EXCEPT TO “QUALIFIED INSTITUTIONAL BUYERS” (AS DEFINED IN RULE 144A UNDER THE U.S. NOTES ACT) OR IN ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE PROHIBITED BY AP
Slide 4: Offering Summary
OFFERING SUMMARY Issuer • Adani Ports and Special Economic Zone Limited (“APSEZ” or the “Company”) Issue • Senior Unsecured Notes Distribution Format • Rule 144A / Regulation S • Fitch: BBB- / Negative (APSEZ underlying credit profile is assessed at ‘BBB' however capped by India's country rating cei
Slide 5: Table of Contents
TABLE OF CONTENTS 1 GROUP OVERVIEW 2 COMPANY OVERVIEW 3 ESG INITIATIVES 4 INVESTMENT THESIS 5 FINANCIALS 6 APPENDIX
Slide 6: About Adani Group
ABOUT ADANI GROUP
Slide 7: Adani Group: A World Class Infrastructure & Utility Portfolio
ADANI GROUP: A WORLD CLASS INFRASTRUCTURE & UTILITY PORTFOLIO Adani Transport & Logistics Portfolio Energy & Utility Portfolio • Marked shift from B2B to B2C businesses– • ATGL – Gas distribution 63.4% 100% 75% 57.5% network to serve key ATL AGEL geographies across India APSEZ NQXT Port & Logistics
Slide 8: Adani Group: Decades Long Track Record of Industry Best Growth Rates
ADANI GROUP: DECADES LONG TRACK RECORD OF INDUSTRY BEST GROWTH RATES ACROSS SECTORS 132% 12% 45% 20% 3x 5x 3x 30% 1.5x 4% 7% 25% Industry Adani APSEZ Industry Adani AGEL Industry ATL Industry AGL 2014 972 MMT 113 MMT 2016 46 GW 0.3 GW 2016 320,000 ckm 6,950 ckm 2015 62 GAs 6 GAs 2021 1,246 MMT 247 M
Slide 9: Adani Group: Repeatable, Robust & Proven Transformative Model of Investment
ADANI GROUP: REPEATBLE, ROBUST & PROVEN TRANSFORMATIVE MODEL OF INVESTMENT Origination Site Development Construction Operation Capital Management • Analysis and market • Site acquisition • Engineering and design • Life cycle O&M planning • Redesigning the capital intelligence structure of the asset
Slide 10: Company Overview: APSEZ
COMPANY OVERVIEW : APSEZ
Slide 11: India's Largest Private Port and Logistics Service Provider
APSEZ: INDIA’S LARGEST PRIVATE PORT AND LOGISTICS SERVICE PROVIDER • 12 ports, ~498 MMT(1) of total capacity • An integrated logistics player in India • Large scale ‘ready to setup’ industrial DEVELOPMENT per annum in India land (SEZ) • Covers most of India’s hinterland • Operating 66 rakes, 5 logis
Slide 12: A Leading Transport & Logistics Utility
APSEZ: A LEADING TRANSPORT & LOGISTICS UTILITY APSEZ – Dhamra Port Ports Ports One Oneto totwelve ten in in twenty Import - Export - Steel years years(1) twenty Coking coal (HRC/CRC) 2x Port income String of Ports Ports of Prosperity Port gate to customer Warehousing 2x Warehousing SEZ gate model Wa
Slide 13: Largest Network of Ports in India
APSEZ: LARGEST NETWORK OF PORTS IN INDIA Evolution of APSEZ FY06 FY21 12 (1) 1 Capacity 10 50x 498 MMT MMT Dahej 14 Assets MMT (US$ mn) $468 22x $10,303 Tuna (Kandla) 14 # of Ports MMT # of Ports Mundra Port Capacity 264 MMT 66% FY15(2) 8% 33% 92% FY21 Dhamra 52% Hazira 45 30 MMT Vizag MMT 6 Dighi M
Slide 14: Harnessing Logistics Synergies to Create Stickiness of Cargo
APSEZ: HARNESSING LOGISTICS SYNERGIES TO CREATE STICKINESS OF CARGO Technology driven multi-modal Technology driven Logistic multi-modal Solutions Particulars FY19 FY19 FY19 Particulars FY21 Logistic Solutions Rakes 20 66(1) Infrastructure Multi-Modal Moga Kanech Rail Volume Kilaraipur 150,942 313,2
Slide 15: Capital Management Philosophy
APSEZ: CAPITAL MANAGEMENT PHILOSOPHY • Since FY16, capped at sovereign • Long-term debt increased from 74% in FY16 to 99% in FY21 - corresponding • Natural hedge flows from having USD • Earnings growth and free cash revenues sufficient to meet USD debt with the long-term assets profile flow generati
Slide 16: Company Overview: Recent Developments
COMPANY OVERVIEW : RECENT DEVELOPMENTS
Slide 17: Resurgence Post COVID-19
APSEZ: RESURGENCE POST COVID-19 • All-India FY21 Cargo (1,247 MMT): reduction at 5.4% YoY is lower than FY21 GDP contraction of c.8% Major Ports in India: • Q2 to Q4 FY21 cargo remained flat YoY (excluding Q1FY21 which was severely impacted by country-wide lockdowns) Indian Port Industry: • Volumes
Slide 18: Cargo Growth Assimilates Diversity and Ensures Resilience
APSEZ: CARGO GROWTH ASSIMILATES DIVERSITY AND ENSURES RESILIENCE APSEZ Growth is 4x All India Cargo APSEZ Cargo Growth is Higher in Each Year Increased Market Share (of India’s EXIM Cargo)(2) (mmt) 15.4% 1,247 1,134 11.4% 10.9% 25% 22% 6.7% 6.5% 7.4% 5.8% 6.1% 2.8% 247 169 -5.4% FY2017 FY2021 FY2017
Slide 19: Credit Matrix: Credit Protection Encapsulated in Capital Structure
CREDIT MATRIX: CREDIT PROTECTION ENCAPSULATED IN CAPITAL STRUCTURE Debt Repayment Profile Elongation of Debt Maturity Period < 1 year Debt (1) (in USD billion) 1 - 2 year (Years) 3.3x 4% 2.9x 2% 2.9x 6.0 2.5x 5.2 4.7 3.9 3.9 3.9 4.1 3.3 3- 5 year 2.8 3.0 2.9 > 5 year FY21 29% 65% FY 18 FY 19 FY 20 F
Slide 20: ESG Initiatives
ESG INITIATIVES
Slide 21: Key Focus Areas, Initiatives and Credentials
APSEZ: KEY FOCUS AREAS, INITIATIVES AND CREDENTIALS Key Focus Areas Key Global Initiatives and Disclosures Key Credentials • Science Based Targets initiative (SBTi ) • First Indian port company to sign up for SBTi • Carbon neutral by 2025 • Task Force on Climate Related Financial Disclosures • Recei
Slide 22: ESG Targets and Performance
APSEZ: ESG TARGETS AND PERFORMANCE Renewable energy installation 20 MW 100 MW Environmental Parameters Energy intensity reduction * 30% 50% Emission intensity reduction * 35% 60% Single use plastic free sites 9 Ports 12 Ports + 4 ICDs + 14 AL sites Zero waste to landfill certified ports 3 Ports 12 P
Slide 23: Update on Recent News on the ESG Front
APSEZ: UPDATE ON RECENT NEWS ON THE ESG FRONT Myanmar Project Status: • APSEZ, in May 2019 announced its intent to set up a container terminal at Yangon, Myanmar and entered through a lease and BOT agreement with the democratically elected government. • Total investment till FY21 end - USD 127 milli
Slide 24: Investment Thesis
INVESTMENT THESIS
Slide 25: Well-Placed to Capture the Growing Indian Market
APSEZ: WELL-PLACED TO CAPTURE THE GROWING INDIAN MARKET Strong Sponsorship of • A world class infrastructure and utility portfolio Adani Group • Combined market capitalization of ~ USD 102 billion (30th June 2021) • Transport and logistics utility that dominates the network Integrated Transport and
Slide 26: Financials
APSEZ: FINANCIALS
Slide 27: Profit & Loss Summary
PROFIT & LOSS SUMMARY (US$ mn) FY21 FY20 FY19 Revenue from operations(1) 1,691 1,675 1,563 Revenue growth, in US$ terms (%) 1.0% 7.2% -11.0% Operating expenditure(2) (615) (608) (552) EBITDA(3) 1,076 1,067 1,011 EBITDA Margin (%)(3) 63.6% 63.7% 64.7% Depreciation & Amortisation (284) (237) (197) EBI
Slide 28: Balance Sheet Summary
BALANCE SHEET SUMMARY (US$ mn) FY21 FY20 FY19 Gross Fixed Assets(1) 5,538 3,842 3,942 Goodwill 552 436 472 Cash and Cash Equivalents(2) 811 972 937 Other Assets(3) 3,402 3,001 2,821 Total Assets 10,303 8,251 8,172 Shareholders Equity(4) 4,390 3,428 3,578 Total Debt(5) 4,705 3,908 3,931 Other Liabili
Slide 29: Cash Flow Summary
CASH FLOW SUMMARY (US$ mn) FY21 FY20 FY19 Net cash (outflow)/inflow from operating activities 1,018 1,044 863 Capital Expenditures (336) (564) (716) Payment for acquisitions and investments in JVs / associates (net) (1,811) (106) (212) Interest received 291 279 93 (Deposit in) / Proceeds from Fixed
Slide 30: Appendix: Industry Overview
APPENDIX: INDUSTRY OVERVIEW
Slide 31: Strong Macro Fundamentals: India's Growing GDP and EXIM Value
STRONG MACRO FUNDAMENTALS: INDIA’S GROWING GDP AND EXIM VALUE Real GDP growth (%)(1) India’s total Import-Export Volume (INR Tn)(3) India’s PFCE as a % of GDP(4) Major Port Authorities Act 2021(5) 12.50% 56 51 56.2% 57.2% 56.0% • Regulatory support in form of New Model Concession Agreement 7.00% (MC
Slide 32: Strong Macro Demand for Cargo, Coal and Container Volumes
STRONG MACRO DEMAND FOR CARGO, COAL AND CONTAINER VOLUMES Cargo Coal Container Cargo Volume in mmt FY 2021 (mt) 17.4 17.6 1,318 1,247 • Coal accounts for 55% of India’s energy needs 716 12.5 834 216 Domestic Imported • Coal imports continue to see strong growth on FY10 FY20 FY21 back of demand-suppl
Slide 33: Growth
Growth adani Goodness
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