Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — Debt Investor Presentation (July 2019)
30 slides from Adani Ports & Special Economic Zone's debt investor presentation, July 2019
Slide 1: Adani Ports and SEZ Limited Roadshow Presentation
Adani Ports and SEZ Limited Roadshow Presentation July 2019 | Strictly Private and Confidential
Slide 2: Legal Disclaimer
Legal Disclaimer This document is not an offer of securities for sale into the United States or any other jurisdiction. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933 (the “Securities Act”), and may not be offered or sold in the Unite
Slide 3: Table of Contents
Table of Contents 1 Offering Summary 2 Overview 3 Business Highlights 4 Financial Highlights 3
Slide 4: 1. Offering Summary
1. Offering Summary
Slide 5: New Issue of Bonds: Summary Terms and Conditions
New Issue of Bonds: Summary Terms and Conditions Issuer Adani Ports and Special Economic Zone Limited (“APSEZ” or the “Company”) Issue Senior Notes Distribution Format Rule 144A / Regulation S Issuer Rating Moody’s: Baa3 (Stable); S&P: BBB- (Stable); Fitch: BBB- (Stable) Expected Issue Ratin
Slide 6: Tender Offer: Summary Terms and Conditions
Tender Offer: Summary Terms and Conditions Offeror Adani Ports and Special Economic Zone Limited (“APSEZ” or the “Company”) Target Notes US$650,000,000 3.50% Senior Notes due 2020 (“Target Notes”) Offer to purchase for cash any and all of the outstanding Target Notes subject to the Financing C
Slide 7: Tender Offer: Indicative Transaction Timeline
Tender Offer: Indicative Transaction Timeline New Issue and New Issue Tender Result Tender Offer Bookbuild and Price Settlement and Guaranteed Delivery Guaranteed Delivery Announcement and Announcement / New Issue Tender Expiration Deadline Settlement Date Settlement Launch Deadline July 16 July 24
Slide 8: 2. Overview
2. Overview
Slide 9: APSEZ: A Leader In Ports And Logistics Infrastructure Sector
APSEZ: A Leader In Ports And Logistics Infrastructure Sector Leading Developer of • India’s benchmark to global ports in terms of strengths, capacities and Ports & Related operations Infrastructure • 9 ports in operation, 2 under development and 3 ICDs Market Share 21.2%1 • Diversifying and enhancin
Slide 10: APSEZ: Unique and Integrated Business Model
APSEZ: Unique and Integrated Business Model Ports Logistics SEZ (at Mundra) Total installed capacity of 395 mmtpa 20 year license to operate rails Land bank of over 8,481 hectares Concession assets with free pricing Enhancing connectivity between ports and Integration with port, developi
Slide 11: APSEZ: Robust Growth In Diversified Cargo Volumes
APSEZ: Robust Growth In Diversified Cargo Volumes Our Reach Fast Growing Market Share in India2 21.2% 19.3% 19.3% Dahej 395 MMT Kilaraipur Total Installed FY17 FY18 FY19 14 Capacity(3) MMT In Total Cargo Patli Kandla 14 Robust Growth in Volumes (MMT) MMT Kishangarh Mundra 207.7 249 MMT 180.0 168.7 D
Slide 12: Logistics: End to End Logistics Connectivity
Logistics: End to End Logistics Connectivity Inland Container Depots EXIM Yard Container Train Contract Customized ICD – Partner Facilities and Transportation Logistics Services Acceptance Points Network Adani Agri Services • License for Pan-india • Building large scale • One of the few players oper
Slide 13: APSEZ Is Well Positioned To Leverage India's Macro Tailwinds
APSEZ Is Well Positioned To Leverage India’s Macro Tailwinds India Total Import – Export India Cargo Growth Government Focus on Ports India GDP Growth expected Value expected Expected to be 8.6% - 10.9% Stable Regulatory to be 7.7% over 2018-2023(1) to grow at 8.2% CAGR over over the FY18 to FY25 En
Slide 14: APSEZ: Compelling Investment Thesis
APSEZ: Compelling Investment Thesis 1 • India’s GDP is expected to grow at 7.7% between 2018 and 2023, with overall EXIM trade expected to grow at Strong Macro Fundamentals 8.2% over next two years • APSEZ is well positioned to leverage the economic tailwinds and capture incremental market share 2 •
Slide 15: 3. Business Highlights
3. Business Highlights
Slide 16: Strategically Located Ports with Superior Operations
Strategically Located Ports with Superior Operations Strategic Location with Hinterland Connectivity Operating Efficiencies Rewarded with Premium Pricing Handling Efficiencies Average Turnaround Time (days) 2.9 2.7 0.8 Rail 1 Mundra FY19 Dhamra FY19 Major Ports FY18 Road Operational Efficiency Avera
Slide 17: De-risked Business Model Through Diversified Product Profile
De-risked Business Model Through Diversified Product Profile Leverage integrated Diversifying cargo mix Wider geography business New inland waterways, vibrant north-east APSEZ ports connected petro-chemicals hub, urbanization's extensively to India’s hinterland Chain of port services, evacuation, im
Slide 18: Port Assets At Optimal Utilization Of Existing Capacity
Port Assets At Optimal Utilization Of Existing Capacity Installed Port(1) Utilization(2) Cargo Mix Key Highlights Capacity 137 Reaching New Heights 249 Mundra MMT • Mundra Port was ranked first in terms of total cargo handled across all Non-Major Ports and MMT Major Ports in India for FY19 (55.2%) 2
Slide 19: 4. Financial Highlights
poe SAN = 4. Financial Highlights
Slide 20: Robust Earnings and Return Metrics
Robust Earnings and Return Metrics Revenue from Operations(1) EBITDA(2) (US$ mn) (US$ mn) EBITDA 64.3% 64.7% 63.1% Margin (%) 1,757 1,563 1,108.7 1,011.2 1,258 564.0 209.5 808.5 153.5 Others Ports 1,193.0 1,353.8 1,104.5 FY17 FY18 FY19 FY17 FY18 FY19 Profit for the Year Return on Capital Employed(4)
Slide 21: Strong Cash Flows and Improved Leverage
Strong Cash Flows and Improved Leverage FFO / Net Debt(1) Net Debt / EBITDA(2) (%) (x) 23.1% 22.0% 19.5% 3.4x 2.9x 2.5x FY17 FY18 FY19 FY17 FY18 FY19 Borrowings Profile EBITDA / Finance Cost (years) (x) 30% 27% 5.1x 4.8x FY19 total borrowings 3.9x US$ 3,931 mn 20% 23% < 1 Year 1-2 Years 3-5 Years >
Slide 22: Strong Financial Metrics Compared to Peers
Strong Financial Metrics Compared to Peers Revenue from Operations (3yr CAGR) EBITDA Margin (LTM) (1,2) Return on Capital Employed (LTM) (3) Net Debt / LTM EBITDA (4) APSEZ (FY15) APSEZ (FY19) Pelindo II (CY17) SIPG (CY17) 31.6% 64.7% 13.5% 0.9x (Baa3/BBB-/BBB-) (Baa3/BBB-/BBB-) (Baa3/BBB-/BBB-) (A1
Slide 23: APSEZ: Compelling Investment Thesis
APSEZ: Compelling Investment Thesis APSEZ is well positioned to leverage strong macro fundamentals of India Pan India Presence allows to capture addressable growth market Demonstrated track record of developing and executing variety of infrastructure Integrated business model delivering end-to-end s
Slide 24: Appendix
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Slide 25: Recent Policy Updates
Recent Policy Updates Shareholder Return Policy APSEZ’s recently revised its dividend and shareholder return policy to be consistent with the long term strategic growth objectives of the company: 1. APSEZ’s policy is of a stable dividend set at 20% to 25% of Profit After Tax (“PAT”) to be paid out
Slide 26: Turning Around Acquisitions
Turning Around Acquisitions Dhamra: Well Positioned to Emerge as Hub for East India Kattupalli: Successful Commissioning Cargo Volumes Cargo Volumes (MMT) (MMT) 8.9 20.7 7.5 5.5 11.1 1.0 FY13 FY19 FY16 FY17 FY18 FY19 Acquired on 22 June 2014 and turned around in the 1st year of Started as O&M op
Slide 27: Profit and Loss Summary
Profit and Loss Summary (US$ mn) FY17 FY18 FY19 Revenue from Operations 1,258 1,757 1,563 Revenue Growth, in US$ terms (%) 39.7% (11.0%) Operating Expenditure 449 648 552 (1) EBITDA 808 1,109 1,011 (1) EBITDA Margin (%) 64.3% 63.1% 64.7% Depreciation & Amortisation 173 184 197 (2) EBIT 636 924 815 F
Slide 28: Balance Sheet Summary
Balance Sheet Summary (US$ mn) FY17 FY18 FY19 Gross Fixed Assets 3,252 3,534 3,942 Goodwill on consolidation 412 410 472 (1) Cash and Equivalents 445 536 937 (2) Other Assets 2,614 2,803 2,821 Total Assets 6,722 7,284 8,172 (3) Shareholders Equity 2,724 3,262 3,578 Total Debt 3,314 3,295 3,931 (4) O
Slide 29: Cash Flow Summary
Cash Flow Summary (US$ mn) FY17 FY18 FY19 Net cash inflow from operating activities 596.5 870.2 862.7 Net cash (outflow)/inflow investing activities (384.5) (596.7) 633.0 Net cash (outflow)/inflow from financing activities (197.5) (293.1) 331.0 Net (decrease)/increase in cash and cash equivalents 14
Slide 30: Growth
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