Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — Investor Presentation (August 2019)
38 slides from Adani Ports & Special Economic Zone's investor presentation, Aug 22, 2019
Slide 1: Corporate Day, 22nd August 2019
Corporate Day 22nd August, 2019 Adani Ports and SEZ Limited Sofitel BKC, Mumbai
Slide 2: Agenda
Slide 3-6 Slide 24-27 Agenda Slide 7-20 Slide 28-36 Slide 21-23
Slide 3: Ports and Logistics
Ports and Logistics
Slide 4: Investment thesis
Investment thesis Sustained high and Fastest growing region across World-class diversified growth the globe, large market share technology and people with low-risk and unique with 60-70% hinterland presence operating model One-point transport utility across port and hinterland with integrated logist
Slide 5: Crossed key milestone of 200 MMT in FY19
Crossed key milestone of 200 MMT in FY19 (MMT) 400 CAGR FY09 FY19 • No. of Port: 1 • Capacity: 80 MMT • No. of Port: 10, JV-2 • Capacity: 395 MMT (FY09-19) • Revenue: 1,496 Cr • Revenue: 10,925 Cr 300 • EBITDA: 966 Cr • EBITDA: 7,067 Cr 19% Cargo 200 208 151 22% Revenue 100 Single commodity 93 to mu
Slide 6: Next 200 MMT to be achieved in 6 years
Next 200 MMT to be achieved in 6 years (MMT) FY25 • No of Ports: 11, JV-2 400 • Capacity: 570 MMT FY09 FY19 400 • No. of Port: 1 • Capacity: 80 MMT • No. of Port: 10, JV-2 • Capacity: 395 MMT Cargo 290 300 19% CAGR (FY09-19) • P II - Myanmar 0.30 Mn TEUs 200 208 • Dhamra LPG, LNG • Mundra CT 6 151 1
Slide 7: Ports and Logistics
adani Ports and Logistics
Slide 8: Our business hinterland will remain growth engine of the world
Our business hinterland will remain growth engine of the world INR 2.7 trillion FY2019 nominal GDP India INR 2.5 trillion Incremental GDP by FY2025 Notes: Colour ramp is based on GDP growth rates in 2019. Note: Average real GDP projected for 2019-25 is 7.5% and average GDP Source: The Conference Boa
Slide 9: Coal consumption to increase
Coal Consumption to increase (MMT) FY19 FY25 Assumptions: Total Coal 969 1,142 Consumption 1. Power demand assumed to grow at 5% through FY25 861 1,013 2. By FY25, Power • Coal power requirement (Adj for RE and other non-thermal) Non-Coking Coal 566 671 (Utilities) is 1,200 BU (1000 BU in FY19) • Co
Slide 10: Opportunity in containers handling: 1.7X rise in all India volumes
Opportunity in containers handling: 1.7X rise in all India volumes (%) Drivers 1. Economy doubling in size over 2025, consumption led demand 30.0 will hold as rising disposal income and premiumisation of Based on consumption will mean demand of imported goods. 28.0 Historical 2. Transshipments volum
Slide 11: APSEZ will continue to outpace India's cargo growth by 2X
APSEZ will continue to outpace India’s cargo growth by 2X (Cargo Volume in MMT) (%) 5.5% CAGR 1792 FY19 FY25 1,300 23 23 19 29 FY19 FY25 16 24 14 18 16 18 (MMT) FY25 390*** 25%** FY19 207 Container Coal Crude Other Liquid Non-Coal 22% **ex of coastal volumes *** 390 MMT excludes Myanmar Operations S
Slide 12: APSEZ cargo diversification will continue
APSEZ cargo diversification will continue (MMT) CAGR 11.5% 450 FY19 FY25 400* 400 350 7 3 300 8 250 208 33 200 40 9 150 49 100 50 9 12 6 24 0 FY19 FY25E Containers 83 187 Other Liquid 11 21 LPG & LNG 0 13 Crude 25 38 Non-Coal 19 33 Coal 69 93 Container Coal Non-Coal Crude LPG & LNG Other Liquid * In
Slide 13: Containers to contribute 62% to incremental volume
Containers to contribute 62% to incremental volume (%) 200 Of which 5 ports account > 90% Mundra – 59% 180 109 Myanmar & Vizhinjam – 16% 176 Kattupalli + Ennore – 15% 160 140 120 100 80 14 60 17 40 13 10 20 13 0 Container NC Coal Other Dry Crude Other Liquid Gas Total 13 Roadmap 2025 Investment Thes
Slide 14: APSEZ port wise incremental cargo volume by FY25
APSEZ port wise incremental cargo volume by FY25 (%) (%) 71% of incremental growth comes from containers out of which 18% is transhipment Commodity FY 19 FY 25 200 Containers 34 48 180 89 176 Coal 29 51 160 140 42% of incremental Crude + POL 8 9 growth comes from coal 120 Gas (LPG + LNG) 0 19 100 Ot
Slide 15: Focused capital allocation based on harnessing existing capacities
Focused capital allocation based on harnessing existing capacities Current State: FY19 FY 25: Investment in key infrastructural projects Expected in FY25 Port(1) Installed Capacity Utilisation(2) Key identified infrastructure projects for capacity addition Installed Capacity Utilisation Mundra 252 M
Slide 16: Focused capital allocation based on harnessing existing capacities
Focused capital allocation based on harnessing existing capacities Current State: FY19 FY 25: Investment in key infrastructural projects Expected in FY25 Port(1) Installed Capacity Utilisation(2) Key identified infrastructure projects for capacity addition Installed Capacity Utilisation 9 MMT Vizhin
Slide 17: Enhanced capacity utilisation with operating leverage
Enhanced capacity utilisation with operating leverage Dahej 8MMT 67% (14 MMT) Tuna 53% 8MMT (14 MMT) Mundra 227 MMT (325 MMT) Dhamra Hazira 58MMT 29MMT (83 MMT) (43 MMT) Vizag 4MMT Mormugao (6 MMT) 5 MMT Kattupalli (5 MMT) 18MMT (26 MMT) FY19 FY25 Vizhinjam1 Ennore Bulk Terminals 9 MMT 10 MMT Multip
Slide 18: Integrated logistics services to expand across the country
Integrated logistics services to expand across the country Technology Platform Creating Value Transportation Facilities Other Services Rail Logistics Parks Stuffing / De-stuffing Warehousing Cargo Aggregation Road (Incl Cold Storage) Inland Waterway Inland Waterway Customs Clearance Terminals Other
Slide 19: Substantial expansion of assets and service capabilities by FY25
Substantial expansion of assets and service capabilities by FY25 Multi-modal Rakes * Warehouses Silo Capacity Logistics Parks 22%+ EBIDTA From 4 to 15+ From 49 to 200+ From 0.4 Mn to 5 Mn Sq.Ft. From 0.5 to 1.5 MMT Cold Storage Air Cargo Inland Waterways New Business 2 Mn Sq.Ft. 50K MT 25 Barges * R
Slide 20: Port based industrial development
Port based industrial development Mundra Kattupalli Dhamra • Land bank: • Land acquisition is in progress • Land acquisition is in progress 15,000 Ha. • Direct Rail & Road Connectivity to be • Attractive destination for mineral- (For SEZ and Industrial Parks) developed based industries • Location Be
Slide 21: > o Ly oa co Oa o Fo adani my PA |
> o Ly oa co Oa o Fo adani my PA 7 |
Slide 22: Leveraging technology on an enhanced service base
Leveraging technology on an enhanced service base Design Bidding Automated Automated & Integrated Workflow Project Management Workflow & Platforms for Internal and External 1 Data Based Stakeholders – providing visibility Operations Collaboration Decision making & data based decision making Project
Slide 23: People – Building future ready organisation
People – Building future ready organisation Leadership pipeline Continuous Capability Talent development Development Management • Leadership readiness for new • Focused training approach. • Create Opportunities for business and international expansion. Internal Talent. • People in sync with changing
Slide 24: Growth with Goodness
Growth with Goodness
Slide 25: Environment, Sustainability & Safety
Environment, Sustainability & Safety Focus on Renewable Energy Reducing Carbon Footprint Water Conservation • Existing RE usage is 10 MW • Becoming a Carbon Neutral Company • 422 mld water recycled and reused and in • 100% cargo handling using RE by FY25 by FY25 FY19 • In-line with Paris Accord • 10
Slide 26: Adani Foundation – Building Communities
Adani Foundation – Building Communities 3.2 million people annually across 2,250 villages Education Community Sustainable Community in 18 states, 21 sites, Health Livelihood Infrastructure 38 locations. Beneficiaries 1,21,159 5,18,160 3,29,372 3,79,262 ~ 19 lakhs direct and 14 Lakhs indirect benefic
Slide 27: APSEZ Corporate Governance
APSEZ Corporate Governance Recent Governance Initiatives • Policy on “Related Party Transactions for Acquiring and Sale of Assets” • Dividend and shareholder return policy to be consistent with the long term strategic growth objectives of the company • Dividend set at 20% to 25% of Profit After Tax
Slide 28: Adani
adani
Slide 29: Key objectives of finance strategy
Key objectives of finance strategy Consistent Elongate Debt investment grade maturity profile rating Reduce Cost of Enhance ROCE Capital 29 Roadmap 2025 Finance Strategy Investment Thesis Technology & People Growth with Goodness
Slide 30: APSEZ is rated investment grade from FY16 and beyond
APSEZ is rated investment grade from FY16 and beyond Stable Outlook Baa3 BBB– BBB– FY 19 23% Covered by International rating agencies FY 18 25% FFO / Net Debt FY 17 20% FY 16 11% Matrix being maintained Range FY 15 17% FFO / Gross Debt : 18% - 25% FFO / Net Debt : 13% to 15% FY 14 11% Liquidity Rati
Slide 31: Debt profile – Elongated from 4 to 6 years post bond issuance
Debt profile – Elongated from 4 to 6 years post bond issuance As of 31st March 2019 As of 31st July 2019# 49% 50% 17% 21% 2% 1% 17% 1% 1% 15% 4% 5% 5% 4% 5% 3% < 1 Year 1 -3 Years 3 - 5 Years >5 Years < 1 Year 1 -3 Years 3 - 5 Years >5 Years INR Debt Fx Debt INR Debt Fx Debt Description (INR Crs.) M
Slide 32: Reduction in cost of debt
Reduction in cost of debt 2.38% 9.0% 2.4% 2.2% 2.15% 7.97% 8.0% 7.66% 1.95% 1.95% Average 2.0% 6.97% 7.0% 1.8% 6.29% 1.6% 1.50% 6.0% 1.4% 5.70% 1.2% 5.0% 5.42% 1.0% Jul-15 Jan-17 Jun-17 Jul-19 Jul-19 4.0% FY14 FY15 FY16 FY17 FY18 FY19 5 Years Bond 10 Years Bond Strong fundamentals enable tapping cap
Slide 33: Initiatives to reduce cost of capital
Initiatives to reduce cost of capital 1. Consistent disclosures to 2. Maintain Net Debt/EBITDA 3. Develop long term increase predictability Sets desired level of Net yield curve Information efficiency – Debt/EBITDA – 3.0x to 3.5x Evaluate longer term, Timely and quality disclosure – upto 30 years, m
Slide 34: ROCE of portfolio of existing ports
ROCE of portfolio of existing ports FY 19 15% Mundra FY 25 (E) 18%-19% 9% Dhamra 13%-15% 20% Hazira 22%-24% 4% Kattupalli 8%-9% 15% Dahej 17%-18% -9% Ennore -6% - -7% -5% Tuna -4% -11% Vizag 0% - -2% 6% Goa 8%- 10% -15% -10% -5% 0% 5% 10% 15% 20% 25% Consolidated ROCE to increase from 13.5% in FY19
Slide 35: Robust financial targeting 11%+ CAGR
Robust financial targeting 11%+ CAGR (INR Cr) (INR Cr) (INR Cr) 20,000 13,000 8,000 + + + 10,925 7,067 4,006 FY19 FY25 FY19 FY25 FY19 FY25 35 Roadmap 2025 Finance Strategy Investment Thesis Technology & People Growth with Goodness
Slide 36: APSEZ well placed to capture future growth
APSEZ well placed to capture future growth Why Invest with us? • Sustained high and diversified growth with low-risk 25% and unique operating model All India Market Share • Sustained profitability and enhanced balance sheet strength 20k Cr+ • One-point transport utility across port and Revenue hinte
Slide 37: Disclaimer
Disclaimer 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 grow
Slide 38: Thank You
adan Ports and Logistics Thank You
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