Slide 1: Allcargo Logistics - Investor Presentation cover letter
al IcarCD 0 Ingenuity In Motion logistics ltd. 1:l,.THEAVVASHYA GROUP Usting Compliance and Legal Listing and Compliance Regulatory National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G Phiroze Jeejeebhoy Towers, Sandra Kurla Complex, Dalal Street, Fort, Sandra (East), Mu
Slide 2: Presentation December 2018
. 7 PRESENTATION all Care logistics Itd. ©e2eq December 2018 -
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: Company Overview
all CalG logistics Itd. Ingenuity In Motion COMPANY OVERVIEW
Slide 5: Business Verticals
4 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 and contract logistics. Business Verticals Multimodal
Slide 6: Financial Overview
5 FINANCIAL OVERVIEW FY18 Consolidated Financials Consolidated Revenues 60,469 60,000 56,288 56,405 55,833 Consolidated Income INR 60,469 Mn 50,000 40,000 33,623 30,000 EBITDA 20,000 INR 3,749 Mn 10,000 - FY15 FY16 FY17 FY18 H1-FY19 EBITDA Margin 6.20% Segmental Revenue FY18 Project & Engineering 5%
Slide 7: Marquee Clients
MARQUEE CLIENTS allcarco hts Express PANALPINA?? hellman’ gSDV on 6 continents Worldwide Logistics Q) KUEHNE+NAGEL <, — aig — WOLE DACHSER useOsar ZRHENUS ‘lob septates tog Dsv oom @ one Kase stay ahead GEODIS Nag OREhlig mow express ate @BDP FORWARDING WORLDWIDE Mitsubishi Logistics
Slide 8: Key Milestones
7 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 9: Board of Directors
8 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 10: Board of Directors
9 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 p
Slide 11: Management Team
10 MANAGEMENT TEAM ALLCARGO LOGISTICS MANAGEMENT Suryanarayanan S - Group Chief Strategy and Financial Officer • 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 ser
Slide 12: Management Team
11 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 13: Management Team
12 MANAGEMENT TEAM ECU WORLDWIDE MANAGEMENT Claudio Scandella – CEO • Mr. Scandella is a veteran in the logistics industry with over 35 years of experience in international freight forwarding business. • He comes with the experience of scaling up and transforming businesses. Marc Stoffelen – Executi
Slide 14: Awards and Accolades
13 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 15: Key Strengths
14 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 16: Multimodal Transport Operations
MULTIMODAL TRANSPORT OPERATIONS
Slide 17: Multimodal Transport Operations
16 MULTIMODAL TRANSPORT OPERATIONS • Multimodal Transport Operations (MTO) include the movement of cargo, Segment Financials at a Glance domestically or internationally through multiple modes of transportation like air, ocean, road and/or rail. These services include Non Vessel Owning Common Carrier
Slide 18: Less Than Container Load Cargo
17 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 19: ECU Worldwide: Global Presence
18 ECU WORLDWIDE: GLOBAL PRESENCE
Slide 20: MTO: Insights
19 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 21: Container Freight Stations / Inland Container Depot
CONTAINER FREIGHT STATIONS/ INLAND CONTAINER DEPOT
Slide 22: CFS / ICD
21 CFS / ICD Segment Financials At A Glance • The CFS/ICD segment caters to the handling of import/export cargo, customs 5,000 32% clearance and other related ancillary services at ports. 4,220 4,306 4,094 4,025 31% 31% 31% 4,000 • In the mid 1990’s, the Government of India started private investmen
Slide 23: Domestic Footprint in CFS/ICD
22 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 24: CFS / ICD: Insights
23 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 25: Projects & Engineering
all CalG ) logistics Itd. Ingenuity In Motion PROJECTS & ENGINEERING
Slide 26: Projects & Engineering
25 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. 5,300 5,481 20% 5,000 4,569 15% • The P&E segme
Slide 27: Project & Engineering: Insights
26 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 175 Cr executable over a period of 10-15 months. •
Slide 28: Supply Chain Management
all carc logistics Itd. SUPPLY CHAIN MANAGEMENT
Slide 29: Supply Chain Management
28 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 30: Supply Chain Management: Insights
29 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 31: Way Forward
Way Forward
Slide 32: Logistics Park
Logistics Park
Slide 33: Opportunity
32 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 34: Logistics Parks
33 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 JHAJJAR logistics parks with capability of serving TA: 18
Slide 35: Future Growth Strategy
34 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 36: Allcargo Greens
34 35 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 environmenta
Slide 37: Financial Overview
all CalrG logistics Itd. Ingenuity In Motion ney) FINANCIAL OVERVIEW
Slide 38: Five Year Financial Highlights (Consolidated)
37 FIVE YEAR FINANCIAL HIGHLIGHTS (CONSOLIDATED) Total Operational Revenue (INR Mn) EBITDA (INR Mn) and EBITDA Margins (%) 70,000 60,469 6,500 8.93% 60,000 56,288 56,405 55,833 6,000 8.07% 8.45% 8.33% 48,512 5,500 5,039 50,000 4,754 4,649 6.75% 5,000 6.20% 40,000 33,623 4,500 3,913 4,000 3,749 30,00
Slide 39: Five Year Financial Highlights (Consolidated)
38 FIVE YEAR FINANCIAL HIGHLIGHTS (CONSOLIDATED) Return on Capital Employed 15% 15% 14% 13% 12% 9% FY14 FY15 FY16 FY17 FY18 H1-FY19* Net Debt (INR Mn) Net Debt to Equity (x) 0.45 8,000 6,932 0.40 0.39 7,000 0.35 6,000 0.30 0.28 5,000 4,244 0.25 4,000 3,353 0.18 2,640 0.20 3,000 2,607 0.14 0.13 0.15
Slide 40: Capital Market Data
39 CAPITAL MARKET DATA Stock Return (As on 30th September, 2018) PRICE DATA (AS ON 30th September, 2018) 40% 30% Face value (INR) 2.0 20% 10% Market Price (INR) 102.1 0% -10% 52 Week H/L (INR) 228.8/99.7 -20% Market Cap (INR Mn) 25,086 -30% -40% Equity Shares Outstanding (Mn) 245.7 -50% 1 Year Avg.
Slide 41: Disclaimer
40 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 42: Thank You
THANK YOU