Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Q3 FY2019 Earnings Presentation
36 slides from Mahindra Logistics's earnings presentation, Jan 30, 2019
Slide 1: Cover letter to stock exchanges
Maltindra Logistics Limited Mahindra Unit No. 3 Az 4, 71, Floor, Techniplex 2, Tecluriiplex Comple%c„ 'Veer 5avarkar Marg. LOGISTICS Goregaon (West). Murnbai = 400 062 Tel : + 91 22 23715300 Our Ref: MLLSEC/14/2019 Toil Fret : 1800 238 6787 Mahindralogistics.corn Date: 30 January 2019 Regd Office Mo
Slide 2: Q3 & 9M FY19 Earnings Presentation
Mahindra Logistics Ltd Q3 & 9M FY19 Earnings Presentation January 30, 2019
Slide 3: Disclaimer
mahindra LOGISTICS Disclaimer Certain statements and opinions with respect to the anticipated future performance of Mahindra Logistics in the presentation (“forward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not pr
Slide 4: 9M FY2019 Results Overview
9M FY2019 Results Overview 3
Slide 5: Key Highlights – 9M FY2019 vs 9M FY2018
Mahindra LOGISTICS Key Highlights – 9M FY2019 vs 9M FY2018 2,837 12.4% 116 33.3% Revenue from operations EBITDA 992 7.9% 98 40.0 % Revenue from Non Mahindra SCM PBT Segment 288 I 13.2% 63 41.0% Revenue from PTS Segment PAT Note: 1. Consolidated financials 2. All figures in INR crore, unless stated o
Slide 6: Management Comment
Mahindra LOGISTICS Management Comment Commenting on the performance, Mr. Pirojshaw Sarkari (Phil), CEO at Mahindra Logistics Ltd. said: “Having completed one year since our listing, I am happy that we continued to generate value for all our stakeholders. In Q3 our non-Mahindra SCM business is back t
Slide 7: Consolidated Summarized P&L Statement
Mahindra LOGISTICS Consolidated Summarized P&L Statement YoY YoY Particular Q3 FY19 Q3 FY18 9M FY19 9M FY18 Change (%) Change (%) Revenue from operations 981.1 835.1 17.5% 2836.7 2,523.5 12.4% Other Income 1.6 1.4 14.3% 5.7 5.1 11.8% Total Income 982.7 836.5 17.5% 2842.4 2,528.6 12.4% Gross Margin 7
Slide 8: 9M FY19 Financial highlights
mahindra LOGISTICS 9M FY19 Financial highlights Revenue from operations grows to Rs. 2,837 crore, up 12.4% Y-o-Y • M&M revenues in SCM business increases by 15.4% • Non-M&M revenues in SCM business increases by 7.9% o Revenue from warehousing & other valued-added services increases by 28.5% EBITDA a
Slide 9: Segmental Performance – SCM
mahindra LOGISTICS Segmental Performance – SCM Revenue Gross Margin (GM) 2,549 2,269 204 173 754 Q3 FY18 881 Q3 FY19 I 9M FY18 9M FY19 GM (%) 61 Q3 FY18 8.1% 7.7% 68 Q3 FY19 1i 9M FY18 7.6% 9M FY19 8% Growth 16.9% 12.3% Growth 10.6% 17.5% Mahindra Revenue Non-Mahindra Revenue 1,557 992 919 1,350 Gro
Slide 10: Non-Mahindra SCM Revenue Analysis
mahindra LOGISTICS Non-Mahindra SCM Revenue Analysis Transportation Warehouse & other value- added segments 720 736 26% 256 199 Growth 246 271 Q3 FY18 Q3 FY19 9M FY18 9M FY19 10.3% 2.2% 74% Activity-wise Breakup 9M FY19 Growth 70 Q3 FY18 94 Q3 FY19 33.6% 1I 9M FY18 9M FY19 28.5% Auto Non-Auto 26% 24
Slide 11: Segmental Performance – PTS
mahindra LOGISTICS Segmental Performance – PTS Revenue Gross Margin (GM) 288 31 254 1 23 100 10 81 7 I Q3 FY18 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q3 FY19 9M FY18 9M FY19 GM (%) 8.9% 10.4% 9.1% 10.7% Growth 22.8% 13.2% Growth 42.6% 33.2% Note: 1. Consolidated financials 2. All figures in INR crore, unle
Slide 12: The government continues to work towards developing the logistics sector
Industry Update The government continues to work towards developing the logistics sector Appointment of Logistics Development Policy on Multi-modal special secretary, Committee logistics parks logistics Economic Advisory Council to th., PM • /ibur A maw—. ▪ The Economic Advisory Council ▪ The govern
Slide 13: Customers Won (Partial list)
Operational Highlights i Customers Won (Partial list) We added several new customers this quarter. Some of the notable ones are given below: ▪ Multinational engineering and industrial major ▪ Global construction equipment manufacturer ▪ Global telecom equipment manufacturer ▪ India’s leading lubrica
Slide 14: MLL media presence grew across segments in Q3
Operational Highlights MLL media presence grew across segments in Q3 Mahindra Logistics on the move for acquisitions Companies Roll Out the Red Carpet to Bring Eyeing foreign freight forwarders, Talented Women Back into the Workplace ones they use. We explain to them the total cost of owner- ship, w
Slide 15: Road Safety campaign - #BuckleUp
Operational Highlights Road Safety campaign - #BuckleUp, Making safety a way of life for employees and customers #BuckleUp Safety Jai TI• Campaign was run for WHEN THE JOURNEY STARTS JRNEN S ,Urrs =MN #Buckiel OATH: ReauCklOUp 7 customers over 11 OATH: I PROMISE TO SUCKLE UP I PROMISE TO SUCKLE UP N
Slide 16: Launched Quality Month
Operational Highlights Launched Quality Month – contests and awards to recognize and promote quality ▪ Quality Month was celebrated in November, to emphasize the importance of quality at MLL ▪ Various competitions were held to raise awareness about quality QuaEJty Month Celebration 2018 wasmommusir
Slide 17: Official Logistics Travel Partner for the Deaf ICC T20 World Cup
Operational Highlights i MLL served as the official Logistics Travel Partner for the Deaf ICC T20 World Cup ▪ MLL was the proud Logistics Travel Partner for the first ever Deaf ICC T20 World Cup ▪ MLL was responsible for the travel of 8 international teams from countries such as Sri Lanka, Australia
Slide 18: Driver welfare and trainings being conducted at various locations
Operational Highlights i Driver welfare and trainings being conducted at various locations Train the trainer program organized for 22 employees under PMKVY Driver training under PMKVY. ~6,900 drivers trained to date Other driver welfare activities 17
Slide 19: Empowering communities to Rise
Operational Highlights i MLL living its purpose – empowering communities to Rise ▪ Beach cleaning initiative at various locations under Swacch Bharat Abhiyaan ▪ Kerala Flood Relief Fund distribution by Phil in Cochin ▪ Inauguration of the water project in Jambulpada, Tembha village ▪ Children’s day
Slide 20: Recognition received during the quarter
Operational Highlights Recognition received during the quarter NITIE Awards: MLL won 3 silver awards CII SCALE Award for overall excellence INNCI VAT ION Rtw A.ta Pm 201T MLL General Motors team won an award Mahindra Innovation Awards: Gold award for excellence at the National Convention for Mobile
Slide 21: Company Overview
Company Overview 20
Slide 22: One of India's largest 3PLs
One of India’s largest 3PLs INR 34+ Bn revenue(1) 17,900+ work force across India(2) 475+ client and operating locations Divisions: Supply Chain Management People Transport Solutions Subsidiaries: Lords Freight (India) Pvt. Ltd. 2x2 Logistics Pvt. Ltd. Joint Venture: Transtech Logistics Private Limi
Slide 23: 3PL: strong growth outlook
mahindra LOGISTICS 3PL (Third party logistics): strong growth outlook ....... I. ••• 1110 .iir 411., I.'. .... ..• Growth Trajectory Ep Total logistics INR trillion 'I F 3 PL Business INR billion Huge growth opportunity GpGik-"*I°9.2 in 3PL – 570- 580 2020 expected to 3 PL GPGikYr ° 6.4 grow at Busi
Slide 24: GST to act as a major driver for future growth and consolidation
mahindra LOGISTICS GST to act as a major driver for future growth and consolidation ▪ Seamless inter-state movement of goods MLL: Ready for GST No Borders i ▪ Redesign of supply chain – efficiencies instead of tax ▪ GST ready multi- user warehousing in certain key De-Bottlenecking ▪ Removal of check
Slide 25: MLL: Differentiated Play: 3PL Offerings
mahindra LOGISTICS MLL: Differentiated Play: 3PL Offerings -, One stop shop for logistics end-users: MLL pursues a unique ‘asset-light’ business model to provide customized logistics solutions across a diverse set of industries • 3 PL 2 PL • Asset-light / Low capital outlay Asset-heavy / Capital int
Slide 26: Supply Chain Management (SCM)
mahindra LOGISTICS Supply Chain Management (SCM) • • ao ro.a • INTEGRATED Supply chain Freight Transportation MLL Network – SERVICE consulting forwarding surface express PROVIDER services IMMIE MN\ IE Warehousing - rTr!' In-factory stores VAS (e.g, Packing, inventory & order & line feed Distribution
Slide 27: People Transportation Solutions (PTS)
mahindra LOGISTICS People Transportation Solutions (PTS) One of India’s largest organized asset light player Offers technology enabled people transportation solutions and services to over 120 domestic & multinational corporates i • i • 1 1 1 1 1 1 I. 12 Cities • 1 1 1 120+ I... Clients • •• ( 500+ I
Slide 28: Asset light business: formidable ecosystem of business partners
mahindra LOGISTICS Asset light business: formidable ecosystem of business partners Business partners network Business Partners Unique strengths that have enabled ~500 nos. MLL to create a wide network of Vehicles PTS ~1,000 nos. business partners: SCM ▪ Genesis of the exceptional business model: Lar
Slide 29: MLL's competitive advantage: 'Asset-Light' model
mahindra LOGISTICS MLL’s competitive advantage: ‘Asset-Light’ model • / ▪ High Return on Equity MLL Mahindra LOGISTICS ▪ Low Capital Expenditure requirements ▪ Lower Working Capital requirements I •, / ... MLL Asset Light model benefits both MLL and customers / ▪ Scalable solutions – both upwards an
Slide 30: Diverse industries and clients
mahindra LOGISTICS Diverse industries and clients Diversified Logistics Company ▪ SCM business spans Automotive, Engineering, Consumer, Bulk, E-commerce, and Pharma sectors ▪ 66% of non-Mahindra business came from top 20 customers in Fiscal 2018 – Given the nature of business, engagement originates
Slide 31: Diverse industries: leveraging existing skills to enter fast growing verticals
mahindra LOGISTICS Diverse industries: track record of leveraging existing skills to enter fast growing verticals Strong focus to equally diversify across industry verticals Strategy of cross-deployment of skills – entry and expansion into existing and new areas such as Auto engineering, consumer &
Slide 32: Technology and control tower is a key differentiator
mahindra LOGISTICS Technology and control tower is a key differentiator What does it do? ConNgurable Geo Fencing Oep-ragOng for mita' pcids tr-03 !al.& ki Location Clustering ysirs waitL 9 h`..F.sitkiarr9r1 Ce areaArsa Hae Hig.hag LE.ad End to end truck track and D.:melons trace ▪ Time management Tr
Slide 33: Corporate Social Responsibility
Mahindra LOGISTICS Corporate Social Responsibility Driver Welfare Driver welfare is a major focus area for us. Activities include: • Developing restrooms and other infrastructure facilities for drivers along highways and at major loading or unloading points • Training on safe driving (e.g. seat belt
Slide 34: Thank You
Thank You 33
Slide 35: About Us
Mahindra LOGISTICS About Us About Mahindra Logistics For further information please contact: Mahindra Logistics Limited (MLL) is a portfolio company of Mahindra Partners, the USD 1 Yogesh Patel (CFO & Compliance Officer) billion private equity division of the USD 20.7 billion Mahindra Group. MLL is
Slide 36: mahindra
mahindra s its • LOGISTICS • s ea tag ?t", ACCELERATING C•92P,cor COMMERCE, 419:0, •44, EMPOWERING COMMUNITIES T° Rise. 35