Allcargo Logistics Limited · NSE:ALLCARGO
Allcargo Logistics — Investor Presentation (August 2019)
45 slides from Allcargo Logistics's investor presentation, Aug 22, 2019
Slide 1: Exchange intimation letter: Investor Presentation
~!tQ§rg) logistics ltd. Listing Compliance and Legal Listing and Compliance Regulatory National Stock Exchange of India Limited SSE Limited Exchange Plaza, C-1, Block G Phiroze Jeejeebhoy Towers, Sandra Kurla Complex, Dalal Street, Fort, Sandra (East), Mumbai - 400 001 Mumbai -400 051 SSE Scrip Code
Slide 2: Investor Presentation August 2019
. es PRESENTATION All CANTO wets © & August 2019 Ingenuity In Motion
Slide 3: Company Snapshot
2 COMPANY SNAPSHOT Overview • Allcargo Logistics was incorporated in 1993 by the Chairman Mr. Shashi Kiran Shetty. • Headquartered in Mumbai, Allcargo is the largest private sector integrated multinational logistics company in India. • The company was listed on both the BSE & NSE in June 2006 and ha
Slide 4: Value Proposition
3 VALUE PROPOSITION Consistent Dividend Track Record ROCE Focused Constant management endeavour to improve the return 25% Dividend Payout track record ratios of the company Strong Cash Flows Value Unlocking Consistent Operating Cash Flow Unlocking value of the Land Bank of 350 generation over the pa
Slide 5: Company Overview
all Calg logistics Itd. Ingenuity In Motion COMPANY OVERVIEW
Slide 6: Business Verticals
5 BUSINESS VERTICALS Allcargo has a diversified presence across multiple logistics sectors including ocean & airfreight-forwarding, container freight stations (CFS), inland container depots (ICD), project cargo, equipment rental, coastal shipping, Logistics Park and supply chain management. Business
Slide 7: Financial Overview
6 FINANCIAL OVERVIEW FY19 Consolidated Financials Consolidated Operational Revenues 68,949 70,000 Consolidated Operational 60,492 60,000 56,405 55,833 Income INR 68,949 Mn 50,000 40,000 30,000 EBITDA 20,000 INR 4,485 Mn 10,000 - FY16 FY17 FY18 FY19 EBITDA Margin 6.50% Segmental Revenue FY19 Project
Slide 8: Marquee Clients
MARQUEE CLIENTS FedEx SCHENKER Express ® KUEHNE+NAGEL TOLL @ GEODIS DSV ODWO O HGS FORWARDING WORLDWIDE All CANT ess wr. APL y N Expeditors Logistics Ma» BS) PANALPINAS? hellman’” g& SDV Worldwide Logistics on 6 continents RHENUS LOGISTICS DACHSER Intelligent Logistics ge = @BDP Mitsubishi Logistics
Slide 9: Key Milestones
8 KEY MILESTONES The company’s first Acquired ACCI inaugurated its Chairman of Allcargo Container Freight PE New Vernon Initial Public Offering at Econocaribe newest warehouse in Logistics, Mr Shashi Station of 23 acres invested INR 60 Cr. price band of INR 625- Consolidators and Bhiwandi for Claria
Slide 10: Board of Directors
9 BOARD OF DIRECTORS Shashi Kiran Shetty, Chairman •Mr. Shetty has been a pioneer in the Indian logistics sector for more than three decades. • He has founded and steered Allcargo through several milestones, making it the global leader in LCL consolidation and the largest Indian company in this spac
Slide 11: Board of Directors
10 BOARD OF DIRECTORS Mohinder Pal Bansal Non-executive, Independent Director • A Chartered Accountant by qualification, Mohinder Pal Bansal has more than 25 years of experience in Mergers & Acquisitions, Strategic Advising, Capital Markets, Company Portfolio Integration as well as post-acquisition
Slide 12: Management Team
11 MANAGEMENT TEAM ALLCARGO LOGISTICS MANAGEMENT Suryanarayanan S - Executive Director- Strategy & Finance • A Chartered Accountant, Suri has close to 35 years of work experience in diversified businesses like engineering, petrochemical, shipping and logistics. • He has led company through a series
Slide 13: Management Team
12 MANAGEMENT TEAM ALLCARGO LOGISTICS MANAGEMENT Prakash Tulsiani – Executive Director and CEO, CFS-ICD • Mr. Tulsiani has over two decades of experience in the business of shipping and ports, both in India and overseas. • He is a qualified Chartered Accountant and Company Secretary with expertise i
Slide 14: Management Team: ECU Worldwide
13 MANAGEMENT TEAM ECU WORLDWIDE MANAGEMENT Uday Shetty COO – ECU Worldwide •Uday Shetty started his career with ECU Worldwide in 2001 in the finance and accounts department and moved to RCEO role by 2013 •He currently manages the Asia Pacific region with maximum countries under his purview Thomas H
Slide 15: Awards and Accolades
14 AWARDS AND ACCOLADES India Risk Management Conquest 2017 and Awards 2017 Northern India Multimodal Logistics Best Risk Management Awards 2017 Practice in Supply Chain LCL Consolidator of the Year – Export 10th Express, Logistics & Supply Chain Lloyds List Asia 2016 Conclave Logistics Award 3PL Wa
Slide 16: Key Strengths
15 KEY STRENGTHS • Strong network of over 300 offices in more than 160 countries • All acquisitions in MTO segment have been EPS accretive and cash flow positive from start of integration M • Fixed and committed stuffing and sailing schedules ensuring the quickest turnaround in LCL T • The MTO segme
Slide 17: Multimodal Transport Operations
MULTIMODAL TRANSPORT OPERATIONS
Slide 18: Multimodal Transport Operations
17 MULTIMODAL TRANSPORT OPERATIONS • Multimodal Transport Operations (MTO) include the movement of cargo, domestically or internationally through multiple modes of transportation like Segment Financials at a Glance air, ocean, road and/or rail. These services include Non Vessel Owning Common Carrier
Slide 19: Less Than Container Load Cargo
18 LESS THAN CONTAINER LOAD CARGO • Less Than Container Load is the transportation of small ocean freight shipments not requiring the full capacity of an ocean container -usually less than 20 CBM (cubic meters); a freight forwarder may create a “consolidation” by putting together multiple LCL shipme
Slide 20: ECU Worldwide: Global Presence
19 ECU WORLDWIDE: GLOBAL PRESENCE
Slide 21: MTO: Insights
20 MTO: INSIGHTS • Allcargo sees the fragmented LCL industry as an opportunity to expand its global network further and consolidate the LCL industry. • Aims to scale up the business substantially, through expansion of FCL business (both by way of organic & inorganic opportunities). • Committed to bu
Slide 22: Container Freight Stations / Inland Container Depot
CONTAINER FREIGHT STATIONS/ INLAND CONTAINER DEPOT
Slide 23: CFS / ICD
22 CFS / ICD Segment Financials At A Glance • The CFS/ICD segment caters to the handling of import/export cargo, customs clearance and other related ancillary services at ports. 5,000 4,598 60% 4,220 4,306 4,094 • In the mid 1990’s, the Government of India started private investments in 50% 4,000 3,
Slide 24: Domestic Footprint in CFS/ICD
23 DOMESTIC FOOTPRINT IN CFS/ICD DADRI C: 75,000 TEU DELHI MUNDRA C: 56,000 TEU KOLKATA C: 80,000 TEU MUMBAI C: 150,000 TEU CHENNAI C: 100,000 TEU Current CFSs Current ICDs C – Capacity
Slide 25: CFS / ICD: Insights
24 CFS / ICD: INSIGHTS • Expected changes in DPD policy, shall bring in stability to the business. • With port related CFSs well covered, possible foray into rail-linked inland depots. • Developing opportunity to handle high value cargo and ancillary services to provide integrated logistics solution
Slide 26: Projects & Engineering
all CalG ) logistics Itd. Ingenuity In Motion PROJECTS & ENGINEERING
Slide 27: Projects & Engineering
26 PROJECTS & ENGINEERING • The company owns a diverse fleet of special equipment and has developed an in-house repairs and maintenance (R&M) division to efficiently manage all types of R&M of its Segment Financials At A Glance fleet wherever deployed. 5,481 15% 5,000 4,569 • The P&E segment include
Slide 28: Project & Engineering: Insights
27 PROJECT & ENGINEERING: INSIGHTS • Growth in the infrastructure sector especially in power, oil & gas, cement and steel is expected to increase demand for specialized transport solutions. • A strong order book in project transportation of over INR 130 Cr+ executable over a period of 10-15 months.
Slide 29: Logistics Park
Logistics Park
Slide 30: Logistics Parks
29 LOGISTICS PARKS • Developing existing land bank mapped to the current demand foreseen in Grade A warehouse. Allcargo is in a great spot to get economies of a scale. • Consumption drive and infrastructure development would boost multi modal logistics parks with capability of serving all types of J
Slide 31: Operational Highlights
30 OPERATIONAL HIGHLIGHTS • The new logistics park segment has become a reportable segment Segment Financials at a Glance as per Ind AS 108 ‘Operating Segments’ consequent to which, the 50 44 company has reclassified the amounts reported in the earlier 40 periods. 30 23 18 • Allcargo will build stat
Slide 32: Future Growth Strategy
31 FUTURE GROWTH STRATEGY • Aim to become the biggest value creator in the logistics space with highest governance standards. • Technology-driven company - A lot of efforts are being put to make the company ready for the next-gen business model. • An under leveraged company with healthy cash flow an
Slide 33: Supply Chain Management
all CarG logistics Itd. Ingenuity In Motior SUPPLY CHAIN MANAGEMENT
Slide 34: Supply Chain Management
33 SUPPLY CHAIN MANAGEMENT • Supply Chain Management segment involves activities such as designing and Warehouse Locations across India planning supply chains, designing facilities, warehousing, transporting and distributing goods, processing orders and collecting payments, managing inventory and al
Slide 35: Supply Chain Management: Insights
34 SUPPLY CHAIN MANAGEMENT: INSIGHTS • CRISIL Report has estimated that the supply chain management (3PL) is expected to grow at a CAGR of 19-21% to reach ~INR 57,000 Cr by FY2020, Allcargo in a great position to take advantage of the same. • Plans to scale-up the business with a top-line target of
Slide 36: Opportunity
35 Opportunity Our strategy in acquiring majority stake in ACCI has proven beneficial. Factors like GST, growth across major industries and emergence of organized retail is supporting the growth in demand for reliable logistics partners. Within logistics park, need for Grade A warehouses is expected
Slide 37: Allcargo Greens
36 ALLCARGO GREENS New initiative to conserve the environment by reducing waste and adopting renewable sources of energy wherever possible. By saving paper, limiting use of plastics, switching lights off whenever possible, working with communities around our facilities and offices on environmental i
Slide 38: Financial Overview
all CalrG logistics Itd. Ingenuity In Motion ney) FINANCIAL OVERVIEW
Slide 39: Historical Consolidated Income Statement
38 HISTORICAL CONSOLIDATED INCOME STATEMENT Particulars (INR Mn) FY16 FY17 FY18 FY19 Q1-FY20 Revenue from Operations 56,405 55,833 60,492 68,949 18,153 Expenses 51,366 51,184 56,720 64,464 16,747 EBITDA 5,039 4,649 3,772 4,485 1,406 EBITDA Margin (%) 8.93% 8.33% 6.23% 6.50% 7.75% Other Income 280 45
Slide 40: Consolidated Balance Sheet
39 CONSOLIDATED BALANCE SHEET Equity and Liabilities (INR Mn) FY18 FY19Assets (INR Mn) FY18 FY19 Equity Non Current Assets Equity share capital 491 491 Plant, Property & Equipment (net) 10,878 11,368 Other equity 19,152 19,497 Capital Work in Progress 97 1,645 Equity attributable to equity holders o
Slide 41: Financial Highlights (Consolidated)
40 FINANCIAL HIGHLIGHTS (CONSOLIDATED) Total Operational Revenue (INR Mn) EBITDA (INR Mn) and EBITDA Margins (%) 68,949 6,500 8.93% 6,000 8.33% 60,492 56,405 55,833 5,500 5,039 5,000 4,649 6.23% 6.50% 4,500 4,000 3,772 4,485 3,500 3,000 2,500 2,000 1,500 1,000 0.0% FY16 FY17 FY18 FY19 FY16 FY17 FY18
Slide 42: Five Year Financial Highlights (Consolidated)
41 FIVE YEAR FINANCIAL HIGHLIGHTS (CONSOLIDATED) Return on Capital Employed 15% 15% 13% 12% FY16 FY17 FY18 FY19 Net Debt (INR Mn) Net Debt to Equity (x) 4,000 0.20 0.18 3,500 3,353 3,320 0.18 0.16 0.16 0.14 3,000 2,640 0.14 2,500 0.12 2,000 0.10 0.08 1,500 1,293 0.08 0.06 1,000 0.04 500 0.02 0 0.00
Slide 43: Capital Market Data
42 CAPITAL MARKET DATA Stock Return (As on 30th June, 2019) Price Data (As on 30th June, 2019) 25% Face value (INR) 2.0 20% 15% Market Price (INR) 106.6 10% 5% 52 Week H/L (INR) 131.8/91.7 0% -5% Market Cap (INR Mn) 26,178.9 -10% Equity Shares Outstanding (Mn) 245.7 -15% -20% Jul-18 Aug-18 Sep-18 Oc
Slide 44: Disclaimer
43 DISCLAIMER Allcargo Logistics Ltd. Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions ar
Slide 45: Thank You
THAN K YO ) all Calo logistics Itd. Ingenuity In Motion
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