Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Kotak Investor Conference 2019
31 slides from Mahindra Logistics's conference presentation, Feb 20, 2019
Slide 1: Outcome of interactions with Analysts/Institutional Investors (exchange filing letter)
Mahirtdra Logistics L killed Mahindra Unit No. 3 ck 4, 76 Floor, Tecliniplex 2., Techrtipier Complex, Veer S avarkar Marg, LOGISTICS Goregaon (West). Murnbai - 400 062 Tel : + 91 22 28715500 Our Ref: MLLSEC/37/2019 Td1 Free : 1S00 258 6787 Maltindralogislies.com 20 February 2019 Read Office MakUnd r
Slide 2: Company Profile February 2019
Company Profile February, 2019
Slide 3: Disclaimer
mal,indra LOGISTICS Disclaimer Certain statements and opinions with respect to the anticipated future performance of Mahindra Logistics in the presentation (“forward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not p
Slide 4: Overview
Overview IMahindra Group IMLL Snapshot IIndustry Update IBusiness Model IBusiness Details IFinancial Indicators IWay Ahead 3
Slide 5: Mahindra Group
Mahindra Group Automotive RISE Aftermarket Information Technology Financial Services Farm Equipment Accepting Alternative Driving positive Aerospace & Defence no limits thinking change Hospitality Real Estate Two Wheelers Good Corporate Dignity of Profession-alism Citizenship Customer Quality the In
Slide 6: One of India's largest 3PLs
One of India’s largest 3PLs INR 34+ Bn revenue(1) 17,900+ work force across India(2) 475+ client and operating locations Divisions: Supply Chain Management People Transport Solutions Subsidiaries: Lords Freight (India) Pvt. Ltd. 2x2 Logistics Pvt. Ltd. Joint Venture: Transtech Logistics Private Limi
Slide 7: History and achievements
MLL Snapshot History and achievements Mahindra Logistics Limited (MLL) Key Awards & Recognitions FY’09 founded and logistics business of M&M transferred to MLL Award, Achievements & Certifications Year SCALE Award for Overall Excellence 2018 New Management team focused on FY’11 building 3PL and
Slide 8: Led by a management team with comprehensive industry and functional experience
MLL Snapshot Led by a management team with comprehensive industry and functional experience Mr. Pirojshaw Sarkari (Phil) Mr. Sushil Rathi Mr. Yogesh Patel CEO COO CFO Previously, MD of UPS, Jet air Express and UPS Previously worked with Anantara Solutions, the Previously, Director-Finance at E
Slide 9: Recognitions received in FY19
MLL Snapshot Recognitions received in FY19 NITIE Awards: MLL won 3 silver awards CII SCALE Award for overall excellence Mahindra Innovation Awards: Gold award MLL General Motors team won an award for Mobile Dock Leveler for excellence at the National Convention on Quality Concepts, Gwalior Nagpur te
Slide 10: Unprecedented and favourable government interventions in the recent past
Industry Update Unprecedented and favourable government interventions in the recent past Policy Description 1 GST A major driver for future growth and supply chain consolidation Infrastructure 2 Focus on reducing the cost of logistics in India status Regional air Connects underserved airports
Slide 11: The government continues to work towards developing the logistics sector
Industry Update The government continues to work towards developing the logistics sector Logistics Development Appointment of special Policy on Multi-modal Committee secretary, logistics logistics parks 4-1 Economic visory Council to the PM The Economic Advisory Council The government appointed
Slide 12: 3PL outsourcing has a strong growth outlook
. Industry Update 3PL outsourcing has a strong growth outlook mi Growth trajectory Logistics segments Total logistics F3PL business I Nearly two thirds of the INR ‘000s cr INR ‘000s cr logistics sector is transportation, the remainder 3,450 121 is warehousing / storage 1,560 43 Road transport ac
Slide 13: MLL's competitive advantage is its asset light model
Business Model MLL’s competitive advantage is its asset light model Customers MLL 1 ▪ Scalable solutions – 010 • • ▪ High Return on both upwards and Equity downwards MLL Asset ▪ Enables faster ▪ Flexible, Light model growth customized benefits both solutions that meet customers specific needs ▪ Econ
Slide 14: Asset light business is built on formidable ecosystem of business partners
Business Model Asset light business is built on formidable ecosystem of business partners Enablers to attract and retain partners Business partner network Unique strengths that have enabled MLL to create a wide network of business partners: Vehicles ~1,000 nos. ~500 nos. ▪ Genesis of the business mo
Slide 15: Supply Chain Management (SCM)
Business Details Supply Chain Management (SCM) • • • • .1k Supply chain Freight Transportation MLL Network – consulting forwarding surface express MLL services N _MU\ MINIM / Warehousing - • •wAry In-factory stores • IK W VAS (e.g, Packing, inventory & order & line feed Distribution labelling, kitti
Slide 16: SCM: Diverse industries and clients
Business Details SCM: Diverse industries and clients The SCM business spans the Automotive, Engineering, Consumer, Bulk, E-commerce, and Pharma sectors 66% of non-Mahindra business came from top 20 customers in FY 2018 – Given the nature of the business, engagement originates at the CXO level –
Slide 17: Warehouse space under management has increased over the years
Business Details Warehouse space under management has increased over the years Warehousing space under management Share of Revenue from Warehousing & related 16 activities 14 F-15 12 10 F-16 8 15 F-17 13.5 6 10 4 F-18 2 F-19 - YTD Dec 0 F-17 F-18 F-19 - YTD Dec 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 14
Slide 18: People Transportation Solutions (PTS)
Business Details People Transportation Solutions (PTS) One of India’s largest organized asset light players Offers technology enabled people transportation solutions and services to domestic and multinational corporates • N • • I I 12 120+ I I I I I I I Cities I I Clients •, I • • N 500+ Busines
Slide 19: FY19 CSR Initiatives
Business Details F19 CSR Initiatives Community Building • PMKVY training to 10,000 drivers (skill development) • Health and eye check-up camps for 2,000+ drivers • Scholarships for at least 100 underprivileged children Village Adoption – Tembha Village • Build pipeline to provide access to drinking
Slide 20: Key Highlights – 9M FY2019 vs 9M FY2018
Financial Indicators Key Highlights – 9M FY2019 vs 9M FY2018 2,837 t 12.4% 116 t 33.3% Revenue from operations EBITDA 992 t 7.9% 98 t40.0 % Revenue from Non Mahindra SCM PBT Segment 288 t 13.2% 63 t 41.0% Revenue from PTS Segment PAT Note: 1. Consolidated financials 2. All figures in INR crore, unle
Slide 21: 9M FY19 Financial highlights
Financial Indicators 9M FY19 Financial highlights ...• •• \ I • Revenue from operations grows to Rs. 2,837 crore, up 12.4% Y-o-Y • M&M revenues in SCM business increases by 15.4% • Non-M&M revenues in SCM business increases by 7.9% o Revenue from warehousing & other valued-added services increases b
Slide 22: Demonstrated track record of profitable growth
Financial Indicators Demonstrated track record of profitable growth Healthy growth in revenues over the last 4 years… 12.4% 3416 CAGik 41°'° 2837 2667 1931 2064 J I I p I I A iI FY15 FY16 FY17 FY18 9MFY19 …leading to sizeable Adjusted PAT CAGR -‘21°1° 30% 70.5 ICD 60 I 62.6 I I 40.2 39.9 I I I I I I
Slide 23: Segmental Performance – SCM
Financial Indicators Segmental Performance – SCM Revenue Gross Margin c sGik- 229° 3076 cp.,Gg-210k ----"Ir 242 1 2549 1 2372 204 182 I 1814 1679 131 I I 119 I I 1 I I I FY15 FY16 ii I FY17 FY18 I 1 I 9MFY19 FY15 FY16 FY17 FY18 I 9MFY19 Mahindra Revenue Non-Mahindra Revenue 1258 cp,GR- A'15 1818 I I
Slide 24: Non-Mahindra SCM Revenue Analysis
Financial Indicators Non-Mahindra SCM Revenue Analysis Warehouse & other value- Transportation Break up added segments 273 I 256 GO' 985 26% I 746 736 207 I I 137 391 74% 117 235 I I Activity-wise Breakup 9M FY19 I FY15 FY16 FY17 FY18 9MFY19 I FY15 FY16 FY17 FY18 9MFY19 Auto Non-Auto 312 I 26% 945 I
Slide 25: Segmental Performance – PTS
Financial Indicators Segmental Performance – PTS Revenue Gross Profit cp,Gft-i'l° ____-4. cp,GR-A210 32 340 30 31 I I 295 I 288 I 252 250 I 23 23 I P I I I • I I 1 I I I I I I I I I FY15 FY16 FY17 FY18 9MFY19 I FY15 FY16 FY17 FY18 I 9MFY19 Note: 1. Consolidated financials 2. All figures in INR crore
Slide 26: 9M FY19 Return on Capital Employed, Return on Equity and Net Working Capital
Financial Indicators 9M FY19 Return on Capital Employed, Return on ••• Equity and Net Working Capital Return On Capital Net Working Return on Employed Capital Equity (Ex-Surplus Funds) Net Working Capital Days: 35.8% 18.5% 20 days TDS: 8 Days Notes: (1) ROCE ex Surplus Fund (Profit Before Interest &
Slide 27: Key market statistics
Financial Indicators Key market statistics As On December 31, Top Public Shareholders Key Market Statistics 2018 Normandy Holdings BSE/NSE Ticker 540768 / MAHLOG Reliance MF CMP (Rs.) 517.2 DSP Blackrock MF Market Cap (Rs. Crore) 3,690.8 Goldman Sachs India Outstanding shares (Crore) 7.1 Akash Bhans
Slide 28: MLL Purpose and vision statement
Future Plan MLL Purpose statement ACCELERATING COMMERCE, EMPOWERING COMMUNITIES wRise. MLL vision statement Rise to be a INR 6,000 crore Logistics Service Provider by 2021, delivering consistent customer experiences in defined industry verticals through customized, technology driven solutions 27
Slide 29: Technology platforms, digitization, and process excellence: key enablers of the asset light model
Future Plan Technology platforms, digitization, and process excellence: key enablers of the asset light model Transport Management Warehouse Management Digitization Systems Systems • MILES(1): Exclusively for the • Configurable based on • Digital and transformation office transportation of finished
Slide 30: Focus areas
Future Plan Focus areas , , Expand Margins Sustained growth in Non- M&M supply chain business Cost savings through increase in productivity • Penetrate existing accounts Enhance realization across deliverables • Build the pipeline ` of new accounts Participative approach towards margin • Accel
Slide 31: Thank you
Thank you 30