Adani Total Gas Ltd. · NSE:ATGL
Adani Total Gas — Adani Gas — Investor Presentation (September 2019)
31 slides from Adani Total Gas's investor presentation, September 2019
Slide 1: Investor Presentation
Investor Presentation September 2019
Slide 2: Legal Disclaimer
Legal Disclaimer Certain statements made in this presentation may not be based on historical AGL assumes no responsibility to publicly amend, modify or revise any forward information or facts and may be “forward-looking statements,” including looking statements, on the basis of any subsequent develo
Slide 3: Index
Index 1 Introduction to Adani Group and Adani Gas 2 Sector Dynamics 3 Regulatory Framework 4 Adani Gas – Operations and Financial Performance 5 Growth Strategy 3
Slide 4: Introduction to Adani Group and Adani Gas
Introduction to Adani Group and Adani Gas STRICTLY CONFIDENTIAL
Slide 5: Adani Portfolio: One of India's Largest Infrastructure Conglomerates
Adani Portfolio: One of India’s Largest Infrastructure Conglomerates Transport & Logistics Portfolio Utility & Power Portfolio Adani 62.3% 100% 100% 75% 75% 75% 75% APSEZ AAPT SRPCL ATL APL AGEL AGL Port & Logistics Port Rail T&D IPP Renewables Gas DisCom 75% AEL Incubator 100% 100% 100% 100% AAHL A
Slide 6: Adani Group: Track Record of Delivering World Class Assets
Adani Group: Track Record of Delivering World Class Assets Leveraging Core Strengths… …to Deliver World Class Assets Large Scale Businesses Delivering Consistent Growth 648 MW Ultra Mundra Port: India’s Largest Commercial Port (Handled 137 MMT cargo in FY19) Mega Solar Power Plant Mundra-Mohin
Slide 7: Adani Gas – India's Largest City Gas Distribution Company
Adani Gas – India’s Largest City Gas Distribution Company 75% 7.5% Population 25 Yr Adani Family 71 Districts in 15 States Network Exclusivity Business Structure Business Model Exclusive authorisation to develop infrastructure, operate and market gas in Geographical Areas (GA) AGL Mkt Cap* Adani Gas
Slide 8: Adani Gas – Replicating Adani's Infrastructure Success in Gas Distribution
Adani Gas – Replicating Adani’s Infrastructure Success in Gas Distribution 1,300+ 1.5 5 Industrial 0.40 mmscmd gas supply 84 6,500+ Million AGL Operational Cities * CNG stations Kms pipeline network 2,550+ Residential 12% Commercial customers 3 yrs CAGR Largest private player in India’s City Gas spa
Slide 9: Sector Dynamics
Sector Dynamics STRICTLY CONFIDENTIAL
Slide 10: India's Natural Gas Demand on a multi-year growth cycle
India’s Natural Gas Demand on a multi-year growth cycle Lower Gas Consumption per Capita (Cubic meter) Consistent increase in Indian Natural Gas Demand (in MMSCMD) 275 30,630 21,449 252 219 2,945 2,367 190 209 152 192 202 80 181 166 139 144 148 129 UAE Qatar Russia United Brazil China India FY 16 FY
Slide 11: Natural Gas – A Low Cost, Clean & Efficient Source of Energy
Natural Gas – A Low Cost, Clean & Efficient Source of Energy Acceptability Abundance of Gas Availability Affordability Gas Value Less polluting, & Increasing Expanding Imports / commoditized, Proposition clean and green Liquefaction infrastructure competitive Poor air quality in cities supporting ga
Slide 12: Infrastructure Boost To Propel Gas Demand and Consumption
Infrastructure Boost To Propel Gas Demand and Consumption Focus on Infrastructure Development Carrier first - Commodity latter. Infrastructure to unlock latent demand LNG terminals: 10 under construction Transmission pipeline under construction >11,000 kms Incentives to explore and extract gas City
Slide 13: Infrastructure Development Propels Gas Demand
Infrastructure Development Propels Gas Demand China: 5x Increase in Gas Demand with Infrastructure Impetus Gujarat: Gas Infrastructure Integration Driving Demand (in mmscmd) India China Map of Natural Gas Pipelines 745 648 564 507 523 463 407 363 301 251 198 228 131 161 162 154 134 129 139 144 121 1
Slide 14: City Gas Distribution In India is ready for next growth cycle
City Gas Distribution In India is ready for next growth cycle Increasing Share of Gas distribution in Natural Gas Demand Growth Drivers (in MMSCMD) 31% 31% 31% 30% 26% 28% 19% 21% 14% 17% • Coverage increasing to over 70% of Population • Highway, Inter city, MHV, 2W to drive demand 111 123 Demograph
Slide 15: Regulatory Framework
Regulatory Framework STRICTLY CONFIDENTIAL
Slide 16: Sector Regulation - Light on Carrier and none on Content marketing
Sector Regulation - Light on Carrier and none on Content marketing CGD have two distinct revenue stream: Carrier of 3rd Party Gas and direct Marketing of Gas to End users. Carrier Content Marketing Marketing 5 years to 8 years Unregulated by PNGRB Exclusivity Chain Infra 25 years Domestic Available
Slide 17: Regulatory & Policy Boost for CGD Development
Regulatory & Policy Boost for CGD Development Stable Regulatory Environment Strong Government Impetus to Gas Sector Petroleum and Natural Gas Regulatory Board • CGD is No 1 priority on gas supply (established regulator with track record of 11 yrs) • Preferential supply of domestic gas for domestic P
Slide 18: Adani Gas – Operations and Financial Performance
Adani Gas – Operations and Financial Performance STRICTLY CONFIDENTIAL
Slide 19: Adani Gas – India's Leading Play on Gas Distribution
Adani Gas – India’s Leading Play on Gas Distribution Pan India Footprint Steady Growth in Gas Distribution Infrastructure 38 Geographical Areas 2015 2019 71 districts 68 large towns Covering 8% population Volume 1.5 Presence in 15 states 1.1 (mmscmd) Adani CNG 82 Retail Outlets 61 Steel Ne
Slide 20: Existing AGL Operations - Prudent Pricing & Cost Optimisation
Existing AGL Operations - Prudent Pricing & Cost Optimisation The most diversified customer base company with balanced geographic spread One of the lowest operating cost in the industry Commercial Khurja Vadodra 8.4 Domestic 3% 3% 7.6 6% 8% 6.9 6.9 5.8 4.1 3.2 3.0 3.2 2.8 3.2 Customer Faridabad Geog
Slide 21: Best in Class Execution with Superior Operations & Service
Best in Class Execution with Superior Operations & Service Execution Excellence World Class Technology for Operation Management SAP SYCLO SCADA (Comprehensive mobile solution (State of art operations for asset management) monitoring system) In-house EPC AMR GIS (Automated Meter Reading (Global Infor
Slide 22: Joint Venture with IOC To Support Expansion
Joint Venture with IOC To Support Expansion Strategic JV with IOCL: Public sector pedigree with private sector expertise Infrastructure as at March 2019 Retail Outlets 22 Domain Infrastructure Expertise Logistics & Processes Network (Kms) 6,100 resources Manpower Households 16,000 Total Investment ~
Slide 23: Resilient Operations Resulting into Strong Financial Performance
Resilient Operations Resulting into Strong Financial Performance Sales Volume Mix (MMSCMD) Op EBIDTA & Opex (INR / SCM) Op EBIDTA & PAT (INR Cr) 1.5 26% CAGR 12% 1.3 24% 25% 8.4 7.6 22% 1.1 6.9 1.0 6.9 16% 0.72 0.63 0.51 10% 455 0.47 3.2 3.0 2.8 3.2 365 264 281 227 229 0.68 0.76 169 173 0.57 0.61 48
Slide 24: Adani Gas: Large Addressable Market Size
Adani Gas: Large Addressable Market Size Infrastructure creation in new 34 GAs would open up a large opportunity Total Market Steel Pipeline 3900 Potential Network (Km) 550 97 mmscmd 2019 2027 Transport Market 1550 CNG Retail Potential Outlets (#) 82 62 mmscmd 2019 2027 Residential Market Households
Slide 25: Experienced Board and Management Team
Experienced Board and Management Team Esteemed Board Members Mr Gautam Adani Mr Pranav Adani Mr Suresh Manglani CEO & Strong Sponsorship Additional Director Mr Maheswar Sahu Mr Naresh Nayyar Mrs Chandra Iyengar Independent Directors 25
Slide 26: Growth Strategy
Growth Strategy STRICTLY CONFIDENTIAL
Slide 27: Growth Strategy
Growth Strategy Proven track record of expanding footprint • New areas are targeted towards high consumption intensity and environmental sensitivity • Prospect of CNG corridor among the new areas • New opportunity to build LNG retail outlets on highways • Execution excellence – experienced team for
Slide 28: Robust Implementation Work to support Growth Aspirations
Robust Implementation Work to support Growth Aspirations Dynamic Assets and Resources Deployment Robust Work in Progress at new GAs 1st DODO CNG Station at Palwal Head Office Operational Office Finalized Office Proposed Office ( ) Manpower Deployed Palwal-Nuh (2) Bhiwani (1) Faridabad Bhilwara-Bundi
Slide 29: Adani Gas: A Compelling Investment Opportunity
Adani Gas: A Compelling Investment Opportunity ✔ Adani Gas is the largest private sector player – well positioned to take advantage of growth in NG sector ✔ Natural gas – clean energy source, expected to be 20% of the India energy mix in the medium term ✔ Per capita consumption of gas expected to ri
Slide 30: Sustainability
Sustainability Education Livelihood development • Adani Vidhyamandir • Vocational training • Underprivileged Children • Cattle vaccination • Training Volunteers for teaching • Animal Husbandry • Girl Child Education • Skill upgradation Health Rural Infra Development • Mobile dispensary • Pond deepen
Slide 31: Thank You
Thank You