Aegis Logistics Limited · NSE:AEGISLOG
Aegis Logistics — Merger or Acquisition (July 2021)
23 slides from Aegis Logistics's merger presentation, July 2021
Slide 1: Major JV with Royal Vopak
AEGIS LOGISTICS LIMITED Major JV with Royal Vopak Presentation – July 2021 Aegis and Vopak joining forces for LPG and Chemical storage in India
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Aegis Logistics Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 3: Major JV for LPG and Chemical Terminals in India
Major JV for LPG and Chemical Terminals in India Aegis and Vopak have decided to join forces in India with the aim to grow together in the LPG, chemicals storage and handling business 3
Slide 4: Formation of JV – Aegis Vopak Terminals Ltd
Formation of JV – Aegis Vopak Terminals Ltd ▪ Aegis and Vopak propose to form a JV to take advantage Aegis is India’s leading of the numerous growth opportunities in the field of oil, liquid and LPG tank gas and chemical logistics in India terminal owner and operator ▪ JV co to be named Aegis Vopak
Slide 5: JV between leaders in the Tank Terminal Industry
JV between leaders in the Tank Terminal Industry 5
Slide 6: Profile of Royal Vopak
Profile of Royal Vopak Market Cap Euro 5 Bn EBITDA FY 2020 Euro 792m Terminals 70 Countries 23 Capacity 35.6m cbm (Y/E 2020) 6
Slide 7: Strategic Context of Terminals Business Unit
Strategic Context of Terminals Business Unit Aegis has been executing its “necklace From a single location (Mumbai), Aegis Size, scale and complexity of projects of terminals” strategy since 2010 is now present in all the major ports of must increase in order to maintain western India and one port i
Slide 8: Background of Deal
Background of Deal Aegis management initiated discussions with a number of strategic and financial partners from 2019 Vopak emerged as the preferred partner during this process. Transaction approved by Aegis and Vopak Boards. 8
Slide 9: Transactional Highlights
Transactional Highlights Highlights 51% 49% AVTL to acquire 100 % of business and assets of Kandla AVTL to acquire 100% of share and Pipavav LPG, Kandla & capital of KSSPL from Aegis Pipavav Liquids, Mangalore & Logistics Ltd Haldia Liquids from Aegis Logistics Ltd Proposed name: Aegis Vopak Termina
Slide 10: Transaction Details
Transaction Details 100% owned assets Aegis Logistics Ltd. 100% Mumbai LPG AGPL 51% Aegis Vopak JVCo. Mumbai Liquid 51% (Kandla and Pipavav LPG, Kandla & Pipavav Liquids, Mangalore & Haldia 100% Liquids) HALPG (Haldia LPG Terminal) Retail LPG 100% new! AIMS 60% (Marine AGI KSSPL CRLTL Fuels) Kochi K
Slide 11: Aegis Business Structure (Post Transaction)
Aegis Business Structure (Post Transaction) Aegis Logistics Limited 100% 60% LPG Retailing Tank Terminals LPG Sourcing 100% 51% 51% Kandla Mumbai LPG Pipavav and Liquids (M1 & M2) Haldia Mangalore Kochi 49% 40% Vopak Haldia LPG Itochu Corp. 24% 25% 11
Slide 12: Financial Details of the Deal
Financial Details of the Deal Rs. 2,568 Crs Rs. 198 Crs Rs. 2,568 Crs - Payment to Aegis Payment to Aegis Rs. 2,766 Crs Total pre-tax cash consideration to Aegis To be paid to Aegis by Vopak in year 3 of up Logistics Ltd. for stake sale of 49% in the to 198 crores on achievement of revenue Total pre
Slide 13: Transaction Timetable
Transaction Timetable Board approval by both Expected Completion Special resolution by Subject to regulatory Board approval by both Vopak Supervisory Board and Aegis Board Aegis shareholders approvals, transfer of before Vopak March 31, Supervisory Board through a postal ballot licenses and permits
Slide 14: Proposed Board Organization
Proposed Board Organization Nominated by Vopak Nominated by Aegis Chairman Board Member Board Member Board Member Board Member Board Member 14
Slide 15: Management Organization
Management Organization Nominated by Vopak Board of Directors Nominated by Aegis Management Committee: President, Joint President, COO, CFO BD/COMM BD/COMM CFO HR COO CTO (Liquids) (Gas) 15
Slide 16: Win-Win partnership for Aegis and Vopak
Win-Win partnership for Aegis and Vopak 1 Co-branded terminals in India under the Aegis Vopak brand name Servicing the customers of both companies, including national oil companies, 2 MNC’s, speciality chemical companies and traders 3 Pan India footprint Access to global best practices for environme
Slide 17: Aegis Controlled Liquid Terminal Capacity Increase
Aegis Controlled Liquid Terminal Capacity Increase Total Storage Capacity (KL) Total Storage Capacity (KL) FY2022 (Post Joint Merger) FY2022 (Post Expansion) FY2021 11,03,000 390,000 8,53,000 2,73,000 7,29,000 2,50,000 174,000 54,000 1,20,000 71,000 75,000 20,000 1,40,000 25,000 1,20,000 51,000 50,0
Slide 18: AVTL Business Plans - 1
AVTL Business Plans - 1 The country’s fossil fuel 660mn Indians still rely on solid biomass such as India’s energy demand will imports are expected to firewood for cooking fuel instead of LPG as an efficient likely increase more than TRIPLE over the next two clean alternative fuel (source FT) - LPG
Slide 19: AVTL Business Plans - 2
AVTL Business Plans - 2 1 2 3 Multi-modal transport infrastructure for LPG (incl. rail , Investing in VLGC barge and pipeline) connectivity projects to reduce compliant jetties - Further expansion significantly the delivered cost of imported LPG to the to enable large ships of LPG and liquid custome
Slide 20: Future Co-operation with Vopak
Future Co-operation with Vopak Aegis and Vopak have agreed to Ownership structure of these co-operate on larger projects in new projects to be assessed India project by project Examples: Both companies to finance larger • Other gases. projects using a mixture of project • explore renewable energy pr
Slide 21: Enhancing Stakeholders Value
Enhancing Stakeholders Value Benefits from the Deal Existing Business of Aegis Way Forward • Scale up its Liquid and LPG Core Principles of Strong Balance Terminals business on an Sheet & Free Cash Flows accelerated basis • 100% owned Mumbai liquid and LPG terminals • Pool financial, management and
Slide 22: Future Direction
Future Direction Aegis Logistics Limited New Business Fuel Retailing Tank Terminals o Build a National distribution retail network o Liquids o Logistics Infrastructure Explore projects in renewables and o Focus on brand building: o LPG sustainable energy o “Chota Cikander” “Aegis o Other gases Pureg
Slide 23: Thank You
Thank You Aegis Logistics Limited CIN: L63090GJ1956PLC001032 Mr. Murad Moledina, CFO murad@aegisindia.com Ms. Payal Dave +91 9819916314 Payal.Dave@linkintime.co.in Mr. Sagar Shroff +91 9820519303 sagar.shroff@linkintime.co.in