Adani Total Gas Ltd. · NSE:ATGL
Adani Total Gas — Adani Gas — Investor Presentation (May 2019)
31 slides from Adani Total Gas's investor presentation, May 2019
Slide 1: Investor Presentation May 2019
Investor Presentation May 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% 80.9% 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… …to Deliver World Class Assets Large Scale Businesses Delivering Consistent Growth 648 MW Ultra Mundra Port: India’s Largest Commercial Port Mega Solar Power Plant Mundra-Mohindergarh 1,980 Ckt Km: Longest Pr
Slide 7: Adani Gas – India's Largest City Gas Distribution Company
Adani Gas – India’s Largest City Gas Distribution Company 74.8% 8% Population 25 Yr ₹ 1,300 Cr Adani Family 71 Districts in 15 States Network Exclusivity Asset Base Business Structure Business Model Exclusive authorisation to develop infrastructure, operate and market gas in Geographical Areas (GA)
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 mmscmd gas supply 5 82 6,500+ 380,000 AGL Operational Residential Cities * CNG stations Kms pipeline network 2,550+ customers 12% Commercial 3 yrs CAGR Largest private player in India’s City Ga
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 bcf/d) India China Map of Natural Gas Pipelines 23.9 20.8 18.7 19.3 17.1 15.0 13.4 11.1 8.4 9.3 7.3 5.9 4.8 6.1 7.1 5.1 6.0 5.2 4.0 4.
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 70% of Population 123 • Highway, Inter city, MHV, 2W to drive demand 111 107 97 92
Slide 15: Regulatory Framework
Regulatory Framework STRICTLY CONFIDENTIAL
Slide 16: 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 17: 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 18: Adani Gas – Operations and Financial Performance
Adani Gas – Operations and Financial Performance STRICTLY CONFIDENTIAL
Slide 19: Adani Gas – India's Leading Play on Gas Distribution
Adani Gas – India’s Leading Play on Gas Distribution Pan India Footprint Sturdy Growth in Gas Distribution Infrastructure 38 Geographical Areas 2015 2019 71 districts 68 large towns Covering 8% population Volume 1.5 Presence in 15 states 1.1 (mmscmd) Adani CNG 82 Retail Outlets 61 Steel Ne
Slide 20: 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 Vadodra 8.4 Domestic 3% 3% 7.6 6% 8% 6.9 6.9 5.8 4.1 3.2 3.0 3.2 2.8 3.2 Customer Faridabad Geographic 2.2
Slide 21: 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 22: 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 March 2019 Retail Outlets 22 Domain Infrastructure Expertise Logistics & Processes Network (Kms) 6,100 resources Manpower Households 16,000 Total Investment ~
Slide 23: 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) 1.5 26% CAGR 12% 1.3 24% 25% 8.4 7.6 22% 1.1 6.9 1.0 6.9 16% 0.72 0.63 0.51 10% 455 0.47 3.2 3.0 2.8 3.2 365 264 281 227 229 0.68 0.76 169 173 0.57 0.61 48
Slide 24: 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 25: 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 25
Slide 26: Growth Strategy
Growth Strategy STRICTLY CONFIDENTIAL
Slide 27: 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 28: 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 29: 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 30: 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 31: Thank You
Thank You