Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS

Adani Ports & Special Economic Zone — H1 FY22 Earnings Presentation

53 slides from Adani Ports & Special Economic Zone's earnings presentation, 2021

  1. Slide 1: Operational & Financial Highlights – H1 / FY22

    Operational & Financial Highlights – H1 / FY22 Adani Ports and SEZ Ltd.

  2. Slide 2: Contents

    Contents A Group Profile B Company Profile C Highlights H1 FY22 D ESG performance E Status updates on on Gangavaram and SRCPL Acquisition F Outlook FY22 G Annexures 2

  3. Slide 3: Group Profile

    adani Ports and Logistics Group Profile

  4. Slide 4: Adani Group: A world class infrastructure & utility portfolio

    Adani Group: A world class infrastructure & utility portfolio Adani Transport & Logistics Energy & Utility • Marked shift from B2B to Portfolio Portfolio B2C businesses– • ATGL – Gas distribution 63.8% 100% 75% 60.2% network to serve key ATL AGEL geographies across India APSEZ NQXT2 Port & Logistics

  5. Slide 5: Adani Group: Long track record of industry best growth rates across sectors

    Adani Group: Long track record of industry best growth rates across sectors Port Cargo Throughput (MMT) Renewable Capacity (GW) Transmission Network (ckm) CGD7 (GAs8 covered) 132% 12% 45% 21% 3x 5x 3x 30% 1.5x 4% 7% 25% Industry Adani APSEZ Industry AGEL Adani Industry ATL Industry AGL 2014 972 MMT

  6. Slide 6: Adani Group: Repeatable, robust & proven transformative model of investment

    Adani Group: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt Activity • Analysis & market • Site acquisition • Engineering & design • Life cycle O&M • Redesigning capital stru

  7. Slide 7: Company Profile

    adani Ports and Logistics Company Profile

  8. Slide 8: APSEZ: A 'transport utility'

    APSEZ : A ‘transport utility’ With string of ports and integrated logistics network West Coast East Coast Capacity 335 MMT Capacity 227* MMT Dahej 14 MMT Tuna 14 MMT Mundra 264 MMT Dhamra Hazira 45 MMT Vizag Mundra - 30 MMT 6 MMT India’s Largest Commercial Dighi Gangavaram^ Port by 8 MMT 64 MMT Kris

  9. Slide 9: APSEZ: Strategic Pillars

    APSEZ : Strategic Pillars Cargo Diversification FY02 FY11 FY21 Coal Containers (mmt) Crude Others Strategic Strategic Partnerships Pillars Integrated logistics FY02 FY11 FY21 East Coast West Coast parity West East West East West East Ensured resilience and stickiness of cargo | Market Leadership 9

  10. Slide 10: Strategic Highlights H1 / FY22

    Strategic Highlights H1 / FY22

  11. Slide 11: APSEZ: Strategic highlights – H1 / FY22

    APSEZ : Strategic highlights – H1 / FY22 Operations Capital Management Growth • 47% Growth in cargo volume compared • APSEZ became the first Indian • Acquisition of 10.4% stake in Gangavaram to 16% growth by all India ports infrastructure company to have raised a Port (GPL) held by Government of And

  12. Slide 12: Operational Highlights H1 / FY22

    Operational Highlights H1 / FY22

  13. Slide 13: APSEZ: Operational highlights – H1 / FY22

    APSEZ : Operational highlights – H1 / FY22 (YoY) Cargo volume Cargo Market Share West Coast Volume 47% 310 bps 26% H1 FY21 H1 FY22 FY21 H1 FY22 H1 FY21 H1 FY22 98 144 25.5% 28.6% 78 MMT 98 MMT MMT MMT Container volume Container Market Share East Coast Volume 42% 144 bps 134% H1 FY21 H1 FY22 FY21 H1

  14. Slide 14: APSEZ: Cargo volume vs All India

    APSEZ : Cargo volume H1 / FY22 vs All India (YoY in MMT) APSEZ All India Cargo* 504  16% 434 144  47% 98 141 60 109  30% 42  42% H1 FY21 H1 FY22 H1 FY21 H1 FY22 APSEZ Total Cargo APSEZ Container All India Total Cargo All India Container East Coast - West Coast Share H1 FY21 H1 FY22 H1 FY21 H1 FY

  15. Slide 15: APSEZ: Balanced cargo composition

    APSEZ : Balanced cargo composition – H1 / FY22 51% 48% 45% 45% 45.8% 44% 44% 43% 41.8% 41% 41% 41% 37% 32% 17% 15% 15% 14% 14% 12% 11.9% 0.3% 1.0% 0.5% FY16 FY17 FY18 FY19 FY20 FY21 H1 FY22 Dry Liquid (incl. Crude) Gas Container 15

  16. Slide 16: Financial Highlights H1 / FY22

    Financial Highlights H1 / FY22

  17. Slide 17: APSEZ: Financials highlights – H1 / FY22

    APSEZ : Financials highlights – H1 / FY22 (YoY, in INR Cr) Operating Revenue Operating EBITDA^ 56% 47% 5,195 8,089 3,288 4,826 Port Revenue Port EBITDA Port EBITDA Margin 46% 47% 4,336 6,347 3,043 4,458 70% 70% PBT* PAT** EPS 13% 7% 5% 2,740 3,105 2,152 2,310 10.56 11.07 **During Q2 pursuant to a no

  18. Slide 18: APSEZ: Key segment wise Operating revenue & EBITDA

    APSEZ : Key segment wise Operating revenue & EBITDA* - H1 / FY22 (YoY - Rs. in Cr) Ports Logistics 600 546 100% 7,000 6,347 100% 90% 500 431 6,000 80% 80% 5,000 4,336 4,458 70% 400 60% 4,000 60% 3,043 300 50% 3,000 40% 40% 200 135 2,000 30% 95 100 20% 20% 1,000 10% - 0% - 0% H1 FY21 H1 FY22 H1 FY21

  19. Slide 19: APSEZ: Debt profile – H1 / FY22

    APSEZ : Debt profile – H1 / FY22 (Rs. In Cr) Gross Debt, Net Debt & Average Maturity Gross Debt Movement 50,000 50,000 7.20 5,248 351 822 44,996 7.01 44,996 45,000 45,000 7.00 40,000 6.80 5,818 34,401 40,000 35,000 31,307 28,472 6.60 30,000 34,401 6.40 35,000 25,000 6.20 20,000 30,000 5.98 6.00 15,0

  20. Slide 20: Strong operational performance results in strong FCF

    APSEZ : Strong operational performance results in strong FCF* (Rs. in Cr) Cash Flow Conversion 9000 72% 80% 8000 70% 8063 7000 7565 53% 60% 52% 6000 5800 50% 5000 3942 40% 4000 4826 2550 30% 3000 • Free cash flow from operation does not include 2000 20% cash flow from Gangavaram port and the Sarguja

  21. Slide 21: APSEZ: Key ratios - H1 / FY22

    APSEZ : Key ratios - H1 / FY22 Rating Ratios^ 30.0% 5.1x 6.0x 25.4% 25.0% 22.3% 23% 5.0x 4.5x 20.0% 18% 4.0x 15.0% 3.0x • All key ratios continue to be within the prescribed 10.0% 2.0x range. 5.0% 1.0x • In H1 FY22 total Revenue includes US$ 293 Mn of 0.0% 0.0x earnings in FX currency. The growth is

  22. Slide 22: APSEZ: Port wise returns

    APSEZ : Port wise returns 16% Mundra 15% 16% 24% Hazira 19% 20% 13% Dahej 11% 24% 12% Dhamra 11% 15% Port wise ROCE 5% Kattupalli 3% 1% Krishnapatnam 8% 9% 5% Logistics 2% 4% -5% -5% Terminals -3% FY20 FY21 H1 FY22 In line with our strategy of improving capacity utilization and diversification of ca

  23. Slide 23: Environment, Social & Governance

    Environment, Social & Governance Focus Areas • Committed to reduce carbon emission and become carbon neutral by 2025. • Efficient use of water and energy from cleaner sources • Reduction of emission levels • Zero tolerance for fatalities

  24. Slide 24: APSEZ: Environmental performance - H1 / FY22

    APSEZ : Environmental performance - H1 / FY22  Tracking well against targets on most indicators – energy, emissions, water, waste and afforestation  Progressing towards Carbon Neutral by 2025 Indicator FY25 Target FY22 Target Status: YTD FY22 Energy & Emission RE share in total electricity* 100% 1

  25. Slide 25: APSEZ: 2025 carbon neutrality scenario

    APSEZ : 2025 carbon neutrality scenario Of total Scope 1 and 2 emissions  3% will be mitigated through electrification of ITVs, dumpers and LOCOs  68% by switch to renewable electricity, and  Remaining through mangrove afforestation, terrestrial plantation and credit purchases Scope 1 + 2 emissio

  26. Slide 26: APSEZ: Environmental initiatives – Afforestation and eco-restoration

    APSEZ : Environmental initiatives – Afforestation and eco-restoration  Mangrove afforestation already started on 250 Ha vs. FY25 target of 1000 Ha  Terrestrial plantation completed on 10 Ha; work ongoing on another 25 Ha  Initiated grassland ecosystem restoration of 10 Ha in Kutch, Gujarat with a

  27. Slide 27: APSEZ: Governance initiatives

    APSEZ : Governance initiatives Board Committee Restructuring Myanmar Divestment • Existing Board Committee composition changed: Committee Existing Proposed  The Company’s Risk Management Audit & Nomination & Remuneration 75% Independent Directors 100% Independent Directors Committee, after a review

  28. Slide 28: APSEZ: ESG commitments

    APSEZ : ESG commitments  We are now a Signatory to the Science Based Targets Initiative, with a business ambition for 1.5 ℃ • APSEZ will need to develop and submit an emission target reduction plan in line with SBTi’s criteria • After validation of the plan, it will be communicated to the stakehold

  29. Slide 29: Status Update on GPL and SRCPL

    Status Update on GPL and SRCPL

  30. Slide 30: Acquisition of Gangavaram Port (GPL) – Update

    APSEZ : Acquisition of Gangavaram Port (GPL) – Update (in Rs. Cr) • APSEZ acquired 31.5% stake from Warburg Pincus and Particulars (INR Cr) FY21 H1 FY22** FY22E^ Growth (YoY) 10.4% from Government of Andhra Pradesh during the Cargo 32 16 39 19% reported period. With this APSEZ is currently holding 4

  31. Slide 31: Acquisition of Sarguja Rail Corridor (SRCPL) – Update

    APSEZ : Acquisition of Sarguja Rail Corridor (SRCPL) – Update (in Rs. Cr) Particulars (INR Cr) FY21 H1 FY22** FY22E* Growth (YoY) • APESZ is consolidating its rail track assets by acquiring Sarguja Rail Corridor (SRCPL). Cargo (MMT) 15 7 19 26% • As per the board approved revised Related Party Opera

  32. Slide 32: APSEZ: Outlook FY22

    APSEZ : Outlook FY22  Cargo volume guidance revised to 350 - 360 MMT, a growth of 45% Volume  This includes 10 MMT of incremental volume from existing ports and 39 MMT of Gangavaram port (GPL) which will be consolidated from April ‘21.  Consolidated revenue - Rs.18,000 cr. – Rs.18,800 cr. (includ

  33. Slide 33: Annexures

    Annexures • Port wise cargo and financial details H1 / FY22 • ESG Performance Update H1 / FY22 • Results - SEBI Format • Major Ports Cargo Details • Annexed File – Cargo and Financial Details

  34. Slide 34: Port wise cargo and financial details

    Port wise cargo and financial details H1 / FY22

  35. Slide 35: APSEZ: Mundra port - volume and financials

    APSEZ : Mundra port - volume and financials H1 / FY22 (YoY - Rs. in cr.) Volume (MMT) Revenue & EBITDA* EBITDA margin at H1 FY21 H1 FY22  22%  22% 66%, up 117 bps 2,301 10.9 12.9 16 17 1880  25% 1,520 1220 61.88 75.68 34 47 Revenue EBITDA Dry Container Liquid Dry Container Liquid H1 FY21 H1 FY22

  36. Slide 36: APSEZ: Krishnapatnam port - volume and financials

    APSEZ : Krishnapatnam port - volume and financials H1 / FY22 (Rs. in cr.) Volume (MMT) Revenue & EBITDA* Port EBITDA H1 FY22 margin at 72% 0.8 996 2.0 721 6.36 22.2 8.30 19.4 Revenue EBITDA Dry Container (MMT)* Liquid H1 FY22 • With the acquisition of balance 25% stake Krishnapatnam port has become

  37. Slide 37: APSEZ: Dhamra port - volume and financials

    APSEZ : Dhamra port - volume and financials H1 / FY22 (YoY - Rs. in cr.) Volume (MMT) Revenue & EBITDA* Port EBITDA Port Revenue margin 60%, H1 FY21  16% H1 FY22  18% 1.7 2.1 807 Port EBITDA 684  13% 486 14.66 16.95 429 13.0 14.9 Dry Liquid Dry Liquid Revenue EBITDA H1 FY21 H1 FY22 • Cargo growth

  38. Slide 38: APSEZ: Hazira port - volume and financials

    APSEZ : Hazira port - volume and financials H1 / FY22 (YoY - Rs. in cr.) Volume (MMT) Revenue & EBITDA* H1 FY21  35% H1 FY22  28% EBITDA margin at 75% 1.4 1.9  27% 766 3.7 6.0 599 574 9.47 12.81 452 4.9 4.3 Dry Container Liquid Dry Container Liquid Revenue EBITDA H1 FY21 H1 FY22 • Growth in cargo

  39. Slide 39: APSEZ: Dahej port - volume and financials

    APSEZ : Dahej port - volume and financials H1 / FY22 (YoY - Rs. in cr.) Volume (MMT) Revenue & EBITDA* H1 FY21 H1 FY22  73% EBITDA  77% margin 66% up 613 bps 215  95% 2.41 4.16 143 122 73 2.4 4.2 Dry Dry Revenue EBITDA H1 FY21 H1 FY22 • Cargo volume rebounded with revival of economic activity pos

  40. Slide 40: APSEZ: Kattupalli port - volume and financials

    APSEZ : Kattupalli port - volume and financials H1 / FY22 (YoY - Rs. in cr.) Volume (MMT) Revenue & EBITDA* H1 FY21 H1 FY22  11%  15% 0.1 0.29 0.2 0.3 EBITDA 109 margin 47% 92  34% 3.75 3.33 66 43 3.4 2.8 Dry Containers (MMT)* Liquid Dry Containers (MMT)* Liquid Revenue EBITDA H1 FY21 H1 FY22 • C

  41. Slide 41: Terminals at major ports & Dighi - volume & financials

    APSEZ: Terminals at major ports & Dighi - volume & financials H1 / FY22 (YoY - Rs. in cr.) Volume (MMT) Revenue & EBITDA* H1 FY21  62% H1 FY22  53% 0.01 EBITDA margin 0.9 225 21%, up 100 bps 3.4 147 5.48 8.87  61% 5.5 47 4.6 29 Dry Containers (MMT)* Dry Containers (MMT)* Liquid Revenue EBITDA H1

  42. Slide 42: Adani Logistics and Harbour services - financials

    APSEZ : Adani Logistics and Harbour services - financials H1 / FY22 (YoY - Rs. in cr.) Logistics Harbour Services  27% EBITDA  45% 546 margin 25%, 926 EBITDA up 258 bps  36% margin 86% 794 431 639 581  41% 135 95 Revenue EBITDA Revenue EBITDA H1 FY21 H1 FY22 H1 FY21 H1 FY22 • Logistics revenue i

  43. Slide 43: Environment Social & Governance

    Environment Social & Governance

  44. Slide 44: APSEZ: ESG update H1 / FY22

    APSEZ : ESG update H1 / FY22 H1 FY22 Performance Progress till date Energy Intensity* Emission Intensity* Wind Captive# Solar Captive# 11% ↓ 15 % ↓ 6 MW 14 MW 175 GJ/Revenue 21 tCO2e/Revenue Water Intensity* Waste Management* Terrestrial Plantation# Mangrove# 16 % ↓ 84% 1.7 Million 2989 Ha - Affores

  45. Slide 45: APSEZ: ESG performance H1 / FY22

    APSEZ : ESG performance H1 / FY22 Energy Intensity Emission Intensity Renewable Energy Share • Improvement in intensities 198 9.3% on account of increase in 200000 30 10.0% 1600000 9.0% 175 180 180000 1400000 160 160000 25 25 8.0% revenue driven by cargo 1200000 140 140000 21 20 7. 0% growth 1000000

  46. Slide 46: APSEZ: Robust ESG assurance framework

    APSEZ : Robust ESG assurance framework Guiding principles United Nations Sustainable TCFD SBTi Global Compact Development Goals Disclosure Standards GRI Standards BRSR IIRC CDP disclosure Policy Structure Focus Area - UNSDG • Environment Policy • Climate Action E • Energy and Emission Policy • No po

  47. Slide 47: APSEZ: Social Initiatives

    APSEZ : Social Initiatives (H1 FY22) Education • More than 2,944 meritorious students from underprivileged sections receive free education along with daily meals at Adani Vidya Mandirs 2. Zero Hunger • 3156 students receive education at highly subsidized rates through our schools at United Nations 4

  48. Slide 48: APSEZ: Governance initiatives

    APSEZ : Governance initiatives Policies Committees Assurance • Environment Policy covered in BR • Corporate Responsibility Committee Policy • Risk Management Committee Corporate Responsibility Committee* • Corporate Social Responsibility Establishment of Policy • Corporate Social Responsibility Comm

  49. Slide 49: Consolidated financial performance – SEBI format

    APSEZ : Consolidated financial performance – SEBI format (` in crore) Quarter Ended Half Year Ended Year Ended Sr. September June 30, September 30, September 30, September 30, March 31, No Particulars 30, 2021 2020 2021 2020 2021 . Unaudited Unaudited Audited 1 Income a. Revenue from Operations 3,53

  50. Slide 50: APSEZ: Major Ports – Total Cargo Handled (MMT)

    APSEZ : Major Ports – Total Cargo Handled (MMT) Ports H1 FY22 H1 FY21 Growth % Deendayal (Kandla) 63 53 18% Paradip 56 52 8% JNPT 36 27 35% Visakhapatnam 33 33 2% Mumbai 28 24 14% Chennai 23 18 26% Haldia Dock Complex 20 19 5% New Mangalore 18 17 8% Kamarajar (Ennore) 19 11 76% V.O. Chidambaranar 18

  51. Slide 51: APSEZ: Major Ports – Containers Volume

    APSEZ : Major Ports – Containers Volume Ports Container Cargo (000' TEUs) H1 FY22 H1 FY21 Growth % J.N.P.T. 2,703 1,925 40% Chennai 787 561 40% V.O.Chidambaranar 402 353 14% Cochin 357 285 25% Kolkata Dock System 290 250 16% Deendayal 247 231 7% Visakhapatnam 256 245 4% Kamarajar(Ennore) 233 62 276%

  52. Slide 52: Details Annexed in Linked File

    APSEZ – Details Annexed in Linked File 1. Port-wise Cargo Volume Break up H1 / FY22 2. Ports and Logistics Vertical Key Financial Performance H1 / FY22 Please double click on the icon to open -

  53. Slide 53: Investor Relations Team

    Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Adani Ports and Special Economic Zone Limited (“APSEZL”),the future outlook and growth prospect

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