Adani Total Gas Ltd. · NSE:ATGL
Adani Total Gas — Adani Gas — Investor Presentation (March 2019)
32 slides from Adani Total Gas's investor presentation, March 2019
Slide 1: Adani Gas Ltd Investor Presentation
Adani Gas Ltd Investor Presentation March 2019
Slide 2: Legal Disclaimer
Legal Disclaimer Certain statements made in this presentation may not be based on historical AGL assumes no responsibility to publicly amend, modify or revise any forward information or facts and may be “forward-looking statements,” including looking statements, on the basis of any subsequent develo
Slide 3: Index
Index 1 Introduction to Adani Group and Adani Gas 2 Sector Dynamics 3 Regulatory Framework 4 Adani Gas – Operations and Financial Performance 5 Growth Strategy 3
Slide 4: Introduction to Adani Group and Adani Gas
Introduction to Adani Group and Adani Gas STRICTLY CONFIDENTIAL
Slide 5: Adani Portfolio: Leading Developer, Owner, Operator in Infrastructure
Adani Portfolio: Leading Developer, Owner, Operator in Infrastructure Promoters Portfolio Mkt Cap* ~USD 22 bn 74.9% 62.3% 75.0% 74.9% 86.5% 74.8% AEL APSEZ APL ATL AGEL AGL Energy Port & Logistics Thermal Power T&D Renewables Gas Distribution 25.00 25.00% 43.32% 32.68% 25.00% 13.42% % Public Pan I
Slide 6: Adani Group: Track Record of Delivering World Class Assets
Adani Group: Track Record of Delivering World Class Assets Leveraging Core Strengths Delivering World Class Assets Only HDVC line in India to be executed by a private player Large scale businesses delivering Location: Mundra-Mohindergarh consistent growth Longest Private HDVC Capacity: 1,980
Slide 7: Adani Gas – India's Largest City Gas Distribution Company
Adani Gas – India’s Largest City Gas Distribution Company Ownership Structure Business Model Exclusive authorisation to develop infrastructure, operate and Adani Family Public market gas in Geographical Areas (GA) 75% 25% Piped gas supply (PNG) to residences, commercial, industrial units and CNG to
Slide 8: Adani Gas – Replicating Adani's Infrastructure Success in Gas Distribution
Adani Gas – Replicating Adani’s Infrastructure Success in Gas Distribution Adani CNG 1,300+ 1.5 Industrial 325,000 mmscmd gas supply 4 70+ 6,000+ Residential AGL Operational Kms pipeline Cities * CNG stations 2,300+ customers 12% network Commercial 3 yrs CAGR Largest private player in India’s City G
Slide 9: Sector Dynamics
Sector Dynamics STRICTLY CONFIDENTIAL
Slide 10: India's Natural Gas Demand on a multi-year growth cycle
India’s Natural Gas Demand on a multi-year growth cycle Lower Gas Consumption per Capita (Cbm/person) Consistent increase in Indian Natural Gas Demand (in MMSCMD) 30,630 21,449 252 219 2,367 190 1,678 167 139 144 253 130 194 152 116 183 80 168 139 144 152 130 116 UAE Qatar United Thailand Bangladesh
Slide 11: Natural Gas – A Low Cost, Clean & Efficient Source of Energy
Natural Gas – A Low Cost, Clean & Efficient Source of Energy Acceptability Abundance Availability Affordability Gas Value Less polluting, Increasing Expanding Imports / commoditized, Proposition clean and green Liquefaction infrastructure competitive Poor air quality in cities supporting gas adoptio
Slide 12: Infrastructure Boost To Propel Gas Demand and Consumption
Infrastructure Boost To Propel Gas Demand and Consumption Carrier first - Commodity latter. Infrastructure to unlock latent demand Focus on Infrastructure Development LNG terminals: 10 under construction Pipeline network to be extended by 13,000 kms Incentives to explore and extract gas City Gas Dis
Slide 13: Infrastructure Development Propels Gas Demand
Infrastructure Development Propels Gas Demand China: 4x Increase in Gas Demand with Infrastructure Impetus Gujarat: Gas Infrastructure Integration Driving Demand (in bcm) India China Map of Natural Gas Pipelines 239 208 187 193 171 150 134 111 84 93 73 59 48 61 71 51 60 50 53 40 42 49 49 46 36 37 FY
Slide 14: City Gas Distribution In India is ready for next growth cycle
City Gas Distribution In India is ready for next growth cycle Increasing Share of Gas distribution in Natural Gas Demand Growth Drivers (in MMSCMD) 31% 31% 31% 30% 26% 28% 19% 21% 17% 14% • Coverage increasing to over 50% of Population 123 • Highway, Inter city, MHV, 2W to drive demand 111 107 97 92
Slide 15: Gas Distribution – Transforming India's Energy Landscape
Gas Distribution – Transforming India’s Energy Landscape 2018 Post 10th Round 20% 70% Population 3.5x Population 124 402 Districts 3.2x Districts 4 mn 40 mn Households 10.0x Households 1,450 7,500+ Retail Retail Outlets 5.2x Outlets Gas Distribution sector poised for Significant Growth 15
Slide 16: Regulatory Framework
Regulatory Framework STRICTLY CONFIDENTIAL
Slide 17: Sector Regulation - Light on Carrier and none on Content marketing
Sector Regulation - Light on Carrier and none on Content marketing CGD have two distinct revenue stream: Carrier of 3rd Party Gas and direct Marketing of Gas to End users. Carrier Content Marketing Marketing 5 years to 8 years Unregulated by PNGRB Exclusivity Chain Infra 25 years Domestic Available
Slide 18: Regulatory & Policy Boost for CGD Development
Regulatory & Policy Boost for CGD Development Stable Regulatory Environment Strong Government Impetus to Gas Sector Petroleum and Natural Gas Regulatory Board • CGD is No 1 priority on gas supply (established regulator with track record of 11 yrs) • Preferential supply of domestic gas for domestic P
Slide 19: Adani Gas – Operations and Financial Performance
Adani Gas – Operations and Financial Performance STRICTLY CONFIDENTIAL
Slide 20: Adani Gas – India's Leading Play on Gas Distribution
Adani Gas – India’s Leading Play on Gas Distribution Unparalleled Network of Gas Distribution Pan India Footprint 2015 2018 AGL IOAGPL Volume 1.4 Chandigarh (mmscmd) 1.1 Panchkula Panipat Udhamsingh Nagar Palwal-Nuh Bhiwani Faridabad Bulandshahr Bhilwara-Bundi Khurja Aligarh Adani CNG Allahabad Udai
Slide 21: Existing AGL Operations - Prudent Pricing & Cost Optimisation
Existing AGL Operations - Prudent Pricing & Cost Optimisation The most diversified customer base company with balanced geographic spread Lowest operating cost in the industry Commercial Khurja 3% Vadodra 2% 7.64 Domestic 6% 6.93 6.89 8% 5.79 4.13 3.22 3.05 3.21 2.82 Faridabad Customer 29% Geographic
Slide 22: Best in Class Execution with Superior Operations & Service
Best in Class Execution with Superior Operations & Service Execution Excellence World Class Technology for Operation Management SAP SYCLO SCADA (Comprehensive mobile solution (State of art operations for asset management) monitoring system) AMR GIS (Automated Meter Reading (Global Information System
Slide 23: Joint Venture with IOC To Support Expansion
Joint Venture with IOC To Support Expansion Strategic JV with IOCL: Public sector pedigree with private sector expertise Infrastructure as at Sept 2018 Retail Outlets 14 Domain Infrastructure Expertise Logistics & Processes Network (Kms) 5,090 resources Manpower Households 11,000 Total Investment ~R
Slide 24: Resilient Operations Resulting into Strong Financial Performance
Resilient Operations Resulting into Strong Financial Performance Sales Volume Mix (MMSCMD) Op EBIDTA & Opex (Rs / SCM) Op EBIDTA & PAT (Rs Crs) CAGR 12% 26% 1.44 24% 24% 1.31 7.64 7.87 22% 6.93 6.89 1.04 1.12 0.70 0.63 0.47 0.51 3.56 365 3.05 3.21 2.82 264 281 206 0.68 0.74 173 0.57 0.61 101 107 79
Slide 25: Adani Gas: Large Addressable Market Size
Adani Gas: Large Addressable Market Size Infrastructure creation in new 34 GAs would open up a large opportunity Total Market Size Steel Pipeline 3900 Network (Km) 500 97 mmscmd 2018 2027 Transport Market 1550 CNG Retail Size Outlets (#) 65 62 mmscmd 2018 2027 Residential Market Households 6.00 Size
Slide 26: Experienced Board and Management Team
Experienced Board and Management Team Esteemed Board Members Mr Gautam Adani Mr Pranav Adani Mr Suresh Manglani CEO & Strong Sponsorship Additional Director Mr Maheswar Sahu Mr Naresh Nayyar Mrs Chandra Iyengar Independent Directors 26
Slide 27: Growth Strategy
Growth Strategy STRICTLY CONFIDENTIAL
Slide 28: Growth Strategy
Growth Strategy Proven track record of expanding footprint • New areas are targeted towards high consumption intensity and environmental sensitivity • Prospect of CNG corridor among the new areas • New opportunity to build LNG retail outlets on highways • Execution excellence – experienced team for
Slide 29: Recently won bids to support Growth Aspirations
Recently won bids to support Growth Aspirations Market Share Based on Recent Bids Plan for 50 Geographical Areas in Next 5 Years Geographical Areas Target : Significant market share by next decade 38 Business Snapshot 38 GAs 25 Coverage (~7.5% population) Volume Potential 10-15 mmscmd 7 States: Guja
Slide 30: Adani Gas: A Compelling Investment Opportunity
Adani Gas: A Compelling Investment Opportunity ✔ Adani Gas is the largest private sector player – well positioned to take advantage of growth in NG sector ✔ Natural gas – clean energy source, expected to be 25% of the India energy mix in the medium term ✔ Per capita consumption of gas expected to ri
Slide 31: Sustainability
Sustainability Education Livelihood development • Adani Vidhyamandir • Vocational training • Underprivileged Children • Cattle vaccination • Training Volunteers for teaching • Animal Husbandry • Girl Child Education • Skill upgradation Health Rural Infra Development • Mobile dispensary • Pond deepen
Slide 32: Thank You
Thank You