Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Q2 FY20 Earnings Presentation
38 slides from Mahindra Logistics's earnings presentation, Nov 7, 2019
Slide 1: Exchange filing cover letter
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 Our Ref: MLLSEC/227/2019 Tel : + 91 22 23715300 Toil Fret : 1800 238 6787 7 November 2019 Mahindralogistics.corn Regd Office To, Moh
Slide 2: Investor Presentation – Q2 FY20
MAHINDRA LOGISTICS LIMITED – Q2 INVESTOR PRESENTATION – Q2 FY20
Slide 3: Safe Harbor
Mahindra Safe Harbor LOGISTICS This presentation and the accompanying slides (the “Presentation”), which have been prepared by Mahindra Logistics Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or s
Slide 4: Mahindra Logistics Limited (MLL) – An Overview
Mahindra Mahindra Logistics Limited (MLL) – An Overview LOGISTICS Started in 2001 One Stop Solution for all Transportation Needs 1 Customer Sector End to End Solutions Expertise. RELIABILITY TO 450+ Customers Building Platform for Make in India to Move in India 5+ Sectors BEST 3PL COMPANY IN INDIA M
Slide 5: We are an End to End Supply Chain Solutions Company
Mahindra We are an End to End Supply Chain Solutions Company LOGISTICS People Transport Supply Chain Management (SCM) Solutions (PTS) Transportation Warehousing Value-added BFSI + IT Driven A- Core Business with 1.5-2x Transportation High ROCE + Solution Fulfilling People improving efficiencies Marg
Slide 6: With our Strengths…we are redefining Logistics in India
Mahindra With our Strengths…we are redefining Logistics in India LOGISTICS Integrated End-to- Asset Light Model End Solution Across Industry which brings in • Transportation Verticals • Scalability • Warehousing • Auto & Engineering • Flexibility • In-Factory Logistics • Consumer & Pharma • Capital
Slide 7: Our Journey So Far
Mahindra Our Journey So Far LOGISTICS ▪ Acquired strategic stake in Transtech Logistics (ShipX) FY’19 ▪ Increased stakes in Lords from 60% to 82.92% ▪ Successfully completed the IPO ▪ Acquisition of Lords and formed 2X2 of the company – largest ever Logistics as a JV IPO in the Indian logistics sect
Slide 8: Awards & Recognitions
Mahindra Awards & Recognitions LOGISTICS NITIE Awards: MLL won 3 silver awards CII SCALE Award for overall excellence Nagpur team won a Gold medal at the Chapter Convention on Quality Concepts FY19 Mahindra Innovation Awards: Gold award for Mobile Dock Leveler Nagpur team won the Gold award for ‘Bes
Slide 9: 3PL Logistics Industry Overview
Mahindra LOGISTICS 3PL Logistics maliindra LOGISTICS Industry Overview 8
Slide 10: 3PL Logistics Industry & Growth Drivers
Mahindra 3PL Logistics Industry & Growth Drivers LOGISTICS USD bn Room To Expand# 11% CAGR 18% Industry Growth* 17.8 Globally the 3PL market 5.9 3PL Industry is estimated 6% is ~11% of overall to grow from 5.6 Bn in logistics market. In India 5.6 11.9 FY18 USD to 17.8 Bn USD 2.1 it is ~6% 3.5 in FY2
Slide 11: 3PL Business Model
Mahindra 3PL Business Model LOGISTICS Benefits Advantages Vendor Customer Flexibility & Scalability Higher Utilization riti Customization Strong Relationships Quality Assurance Visibility \ / Accountability Third Party Logistics (3PL) One Point Dealing One Stop Solution Geographical Reach Year-Round
Slide 12: Draft National Logistic Policy: Boom for Logistic Industry
Mahindra Draft National Logistic Policy : Boom for Logistic Industry LOGISTICS • To drive economic growth and trade competitiveness of the country through a truly integrated, seamless, efficient, Vision > reliable and cost-effective logistics network, leveraging best in class technology, processes a
Slide 13: Our Business
Mahindra LOGISTICS Mahindra Logistics Ltd maliindra LOGISTICS Our Business 12
Slide 14: 1. Supply Chain Management
Mahindra 1. Supply Chain Management LOGISTICS National Transport In-Factory Stores & Line Feed Warehousing & Consolidation at 50+ Manufacturing locations 24 350+ 20+ across India 16.4* 50+ Operating Network Hub Mn. Sq. Ft Offices Stockyards Locations Locations Under management 11111100: .aff 0 M' Ne
Slide 15: 1.a. Transportation
Mahindra 1.a. Transportation LOGISTICS .:._ ,. Odd Dimension Cargo .... _ Route Planning ._ . _._, ••_, ... ' '- AINE6L. _ ... ,.... (ODC) s e L.„.. Customized network optimization Tailored transportation services to that ensures safety, security and on- handle oversized cargo safely and ‘,...• time
Slide 16: 1.b. Warehousing & In Factory Logistics
Mahindra 1.b. Warehousing & In Factory Logistics LOGISTICS Warehousing In-Factory Logistics ✓ Storage Management: Space optimization, In-store movement ✓ Stock Receipt, Stacking and Tracking optimization and configurable load setting ✓ Re-order Quantities ✓ Inventory Control: Item-wise / Location-wi
Slide 17: 1.c. Value Added Services
Mahindra 1.c. Value Added Services LOGISTICS Kitting is the process of grouping, packing, storing and transporting individually separate items which are related to each other, as one unit. Kitting is one of the most availed VAS by auto OEMs and Consumer Kitting product companies. All MLL warehouses
Slide 18: 2. People Transport Solutions
Mahindra 2. People Transport Solutions LOGISTICS Offering 13 200+ Corporate Offices Operating Sites People On Call Events Pan-India Transport Service Transportation 4500+ Drivers Sectors 4000+ & Vehicles Deployed -6 6-- Everyday 500+ Business Partners Manufacturing & IT & ITES BFSI Consulting Servic
Slide 19: MLL is a Differentiated Play in Logistics
Mahindra MLL is a Differentiated Play in Logistics LOGISTICS 3 PL 2 PL Asset-light / Low capital outlay Asset-heavy / Capital intensive • One Stop Shop for End-to-End logistics logistics end-users Limited transportation and warehousing services Provides value added services No value-added services •
Slide 20: We are Technology driven in our Approach
Mahindra We are Technology driven in our Approach :1441 •11. LOGISTICS TRANSPORT MANAGEMENT SYSTEMS ✓ Mahindra Integrated Logistics Execution System (MILES): Exclusively for the transportation of finished automobiles ✓ MyCargo360: a flexible and scalable TMS ✓ st Service Quality ✓ si Training ✓ PTS
Slide 21: Our Digital and Analytics journey at MLL
Mahindra Our Digital and Analytics journey at MLL LOGISTICS One Touch portal for Business Partners Analytics One-stop shop for Business Partners from identification and onboarding to complaint management and invoicing; to improve experience, track Using advanced analytics to improve planning, tracki
Slide 22: Our Sectors of Expertise
Mahindra LOGISTICS Our Sectors of maliindra LOGISTICS Expertise 21
Slide 23: Our Diversified Sectors
Mahindra Our Diversified Sectors LOGISTICS • 15 Consolidation and De-Consolidation Centers in India Auto & • Provision on Mapping routes for Time efficiency Engineering • Strong Partner network of Transporters for local and long-haul routes • Strong Pan India Distribution network to ensure capabilit
Slide 24: Q2 and H1 FY20 Financials Highlights
Mahindra LOGISTICS maliindra LOGISTICS Q2 and H1 FY20 Financials Highlights 23
Slide 25: Consolidated Financial Highlights for H1 FY20
Mahindra Consolidated Financial Highlights for H1 FY 20 LOGISTICS Revenue from Operations m Reported EBIDTA INR 1,751 Crs 4110 - INR 87 Crs ' rz Eil Adj. EBIDTA – INR 93 Crs 1 III Revenue from Non-M&M Warehouse space under 4cP SCM management Ce9 III III INR 649 Crs 16.4 Mn Sq. Ft Revenue PTS segment
Slide 26: Financial Highlights – Segment wise
Mahindra Financial Highlights – Segment wise LOGISTICS Revenue from Operations Gross Margins Gross Margin (%) Management (SCM) 10.4% 10.0% Supply Chain 1,667.5 7.8% 8.2% 1,556.3 156.1 136.1 829.2 78.2 755.3 64.8 Q2FY19 Q2FY20 YTD FY19 YTD FY20 Q2FY19 Q2FY20 YTD FY19 YTD FY20 Q2FY19 Q2FY20 YTD FY19 Y
Slide 27: SCM Revenue Break-Up
Mahindra SCM Revenue Break-Up LOGISTICS Mahindra Revenue Transportation Revenue Auto Revenue 1,041.0 1,423.6 1,197.4 907.6 1,259.1 1,049.2 519.4 702.4 597.7 418.5 597.2 485.0 Q2FY19 Q2FY20 YTD FY19 YTD FY20 Q2FY19 Q2FY20 YTD FY19 YTD FY20 Q2FY19 Q2FY20 YTD FY19 YTD FY20 Non-Mahindra Revenue Warehous
Slide 28: Non-Mahindra SCM Revenue Break-Up
Mahindra Non-Mahindra SCM Revenue Break-Up LOGISTICS SCM Non-Mahindra Activity Wise Break-up Transportation Revenue Auto Revenue 464.7 168.2 439.3 Q2FY19 Q2FY20 152.3 27% L 34% 225.0 222.1 83.1 66% 70.9 73% • Warehousing Warehousing • Transportation • Transportation Q2FY19 Q2FY20 YTD FY19 YTD FY20 Q
Slide 29: Operational Data Points
Mahindra Operational Data Points LOGISTICS Warehouse Space under Management CD +18% 15.3 16.4 +7% 14.3 10.0 NJ FY17 FY18 FY19 YTD FY20 -, ▪ Warehouse space under management increased from 15.3 Mn. Sq. Ft in FY 19 to 16.4 Mn. Sq. Ft in H1 FY 20 (~700k sq. ft. addition in Q2 FY 20) . 1 Notes: (1) Tota
Slide 30: Consolidated Profit & Loss Statement
Mahindra Consolidated Profit & Loss Statement LOGISTICS Particulars (Rs in Crs) Q2FY20 Q2FY19 % Change H1FY20 H1FY19 % Change ➢ Revenue from operations for Q2 at Rs. 852 Revenue from Operations 852.4 927.4 -8.1% 1,751.5 1,855.5 -5.6% crore, down 8.1% Y-o-Y, impacted by Other Income 1.9 1.3 43.4% 8.9
Slide 31: Ind AS 116: Impact on Profit & Loss Statement
Mahindra Ind AS 116: Impact on Profit & Loss Statement LOGISTICS ..\ Ind AS 116 Ind AS 17 Change Change% / Particulars (Rs in Crs) ➢ Lease expenses are not Q2FY20 Q2FY20 Q2FY19 Q2FY20 Q2FY20 recognized as direct cost and are Revenue From Operations 852.4 852.6 927.4 -0.1 0.0% bifurcated between Amor
Slide 32: Consolidated Balance Sheet
Mahindra Consolidated Balance Sheet LOGISTICS Particulars (Rs in Crs.) 30-Sep-19 30-Sep-18 Particulars (Rs in Crs.) 30-Sep-19 30-Sep-18 Non-Current Assets 386.8 201.9 Equity 513.6 454.4 Property, plant and equipment 79.1 60.7 Capital work-in-progress 8.2 0.7 Equity share capital 71.5 71.1 Right of u
Slide 33: Management Comment
Mahindra Management Comment LOGISTICS Commenting on the performance, Mr. Rampraveen Swaminathan, CEO at Mahindra Logistics Limited said: Automotive industry continues to see an unprecedented downturn. We sustained growth momentum in our Non-Auto segment driven by Ecommerce, Consumer & Pharma vertica
Slide 34: Community engagement
Mahindra Community engagement LOGISTICS Zero Accident Zone Tembha Village ESOP (Bhiwandi – Nashik) ▪ Events: 22 ▪ Events: 19 ▪ Events: 10 ▪ Volunteers: 149 ▪ Volunteers: 108 ▪ Volunteers: 799 ▪ Manhours: 958 ▪ Manhours: 1,210 ▪ Manhours: 2,583 ▪ Awareness Programs ▪ Handover of water projects ▪ Tree
Slide 35: Historical Financials
Mahindra LOGISTICS maliindra LOGISTICS Historical Financials 34
Slide 36: Historical Consolidated Profit & Loss
Mahindra Historical Consolidated Profit & Loss1 LOGISTICS Particulars (Rs in Crs) FY19* FY18* FY17 FY16 CAGR Revenue from Operations 3,851.34 3,416.12 2,666.59 2,036.93 23.1% Less: Operating Expenses 3,372.40 3,000.97 2,103.74 1,655.50 Gross Profit 478.94 415.15 562.85 408.43 Gross Margins (%) 12.4%
Slide 37: Historical Consolidated Balance Sheet
Mahindra Historical Consolidated Balance Sheet LOGISTICS Particulars (Rs in Crs.) 31-Mar-19 31-Mar-18 Particulars (Rs in Crs.) 31-Mar-19 31-Mar-18 1 Non-Current Assets 221.36 201.85 Equity 503.93 426.55 Property, plant and equipment 66.04 60.49 Capital work-in-progress 2.59 0.55 Equity share capital
Slide 38: Contact Us
Mahindra Contact Us LOGISTICS Company : Investor Relations Advisors : Mahindra sGA Strategic Growth Advisors LOGISTICS CIN: L63000MH2007PLC173466 CIN: U74140MH2010PTC204285 Mr. Yogesh Patel - CFO Mr. Shogun Jain / Mr. Sagar Shroff CFO.MLL@mahindra.com shogun.jain@sgapl.net / sagar.shroff@sgapl.net +