Allcargo Logistics Limited · NSE:ALLCARGO
Allcargo Logistics — Q4 FY2022 Earnings Presentation
52 slides from Allcargo Logistics's earnings presentation, May 30, 2022
Slide 1: Covering letter: revised investor presentation
@Jt Q§rg) ogistics ltd. To, To, Manager-Department of Corporate Services Manager - Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1 , Block G Dalal Street, Fort, Sandra Kurla Complex, Mumbai - 400 001 Sandra (East), Mumbai - 400 0
Slide 2: Power of One - Investor Presentation May 2022
POWER OF ONE INVESTOR PRESENTATION MAY 2022
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Allcargo Logistics Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 4: Robust Business Growth
ROBUST BUSINESS GROWTH Global leader in complex CONSOLIDATED REVENUE (FY18 - FY22) 35% CAGR 3.3x LCL Market Operating 2400 direct trade lanes CONSOLIDATED EBITDA (FY18 - FY22) 42% CAGR 4.0x Widest and Largest Container Freight Station Operator in India Pioneers in India’s Express Logistics Dominant
Slide 5: Key Highlights
KEY HIGHLIGHTS Q4 Revenue^ ₹ 57,759 mn KEY MANAGEMENT COMMENTARY: FY22 Revenue^ ₹ 200,721 mn ➢ Transformation initiatives have come to full play in FY22 with strong momentum across all the business segments. The company continues to drive robust growth with sharp focus on asset light, digitally enab
Slide 6: Key Business Segments - Yearly Performance Trends
KEY BUSINESS SEGMENTS - YEARLY PERFORMANCE TRENDS 1,76,430 13,049 Capital Employed FY22 Revenue EBITDA (₹ mn) (₹ mn) ROCE 66,047 84,490 4,560 22,031 3,656 (₹ mn) 52.1% International Supply FY20 FY21 FY22 FY20 FY21 FY22 Chain (MTO) ALLCARGO LOGISTICS (ACL) 14,899 344 13,142 Capital Employed FY22 Reve
Slide 7: Key Business Segments - Yearly Performance Trends
KEY BUSINESS SEGMENTS – YEARLY PERFORMANCE TRENDS ALLCARGO TERMINALS (ATL) 5,779 1,759 1,554 4,490 4,640 1,381 Capital Employed FY22 Revenue EBITDA (₹ mn) (₹ mn) ROCE 4,748 (₹ mn) 27.5% CFS / ICD FY20 FY21 FY22 FY20 FY21 FY22 # TRANSINDIA REALTY (TRLPL) 3,612 209 FY22 2,926 Capital Employed Revenue
Slide 8: Demerger Update
DEMERGER UPDATE SCALABLE BUSINESS OPPORTUINITIES
Slide 9: Demerger to Create Strategic Business Undertakings
DEMERGER^ TO CREATE STRATEGIC BUSINESS UNDERTAKINGS ALLCARGO LOGISTICS (ACL) ALLCARGO TERMINALS (ATL) TRANSINDIA REALTY & LP’s (TRL) International Supply Express & Ecommerce Contract Container Freight Rental & Other annuity Chain (MTO) Logistics Logistics Stations & ICDs Businesses Asset Light Globa
Slide 10: International Supply Chain (MTO)
INTERNATIONAL SUPPLY CHAIN (MTO)
Slide 11: Global Leader in International Supply Chain Segment
GLOBAL LEADER IN INTERNATIONAL SUPPLY CHAIN SEGMENT Global #1 in LCL consolidation Distinct value proposition to small and operating the largest global LCL medium sized forwarders who benefit network from our scale &carrier relationships Global network leads to more port Global LCL Market Share pair
Slide 12: Uniquely Positioned with Unmatched Digital & Operational Capabilities
UNIQUELY POSITIONED WITH UNMATCHED DIGITAL & OPERATIONAL CAPABILITIES CONVENTIONAL PLAYERS HAVE OPERATING NETWORK DIGITAL START-UPS BUT LACK DIGITAL CAPABILITIES LACK OPERATIONAL FOOTPRINT AND SCALE LCL FCL Air Industry is converging towards an increasing demand Global network of over 180 countries
Slide 13: Driving Growth Through Technology
DRIVING GROWTH THROUGH TECHNOLOGY DIGITAL TRANSFORMATION (# OF DIGITAL BOOKINGS) OCR For Auto- Enables instant-booking. Reduces operational processes Booking between ECU and customers by three steps Total Digital 60% Bookings Data Data Analytics on customer behaviour and requirements Other digital P
Slide 14: Digitizing Every Customer Touch-Point with ECU360
DIGITIZING EVERY CUSTOMER TOUCH-POINT WITH ECU360 Shipping Instruction Value-Added Dashboard Registration Quotation / Pricing Booking & BL Invoice Track and Trace Services and Analytics FETCH QUOTES Enter further TRACK AND TRACE TRACKING for desired lane shipment details to shipment’s Estimated of a
Slide 15: Automating End-to-End Processes
AUTOMATING END-TO-END PROCESSES 01 02 03 04 QUOTE BOOK TRACK ANALYZE TARIFF SCHEDULE SPACE CUSTOMER SERVICE FILE AUDIT MANAGEMENT COMMUNICATION ENQUIRY BOOK PICKUP, AUTO NOTIFICATION CLOSURE PLANNING QUOTE DOCUMENTATION (SI,AN) SHIPMENT TRACKING JOB PROFIT REVIEW CUSTOM CLEARANCE PROVISIONING / INVO
Slide 16: Transforming Operations
TRANSFORMING OPERATIONS Efficient, Lean, Agile and Digitally Enabled Leader in the Logistics Industry ▪ Fact based End-to-End analysis of ▪ Informed pricing decisions by using ▪ Building the future network based the network network data, such as yield and on customer needs, anticipated ▪ Awareness a
Slide 17: Consistently Driving Growth
CONSISTENTLY DRIVING GROWTH Inorganic growth: Strong Track Record Organic growth: Sales acceleration initiatives outcome July 2021 Leading neutral consolidator in the Nordic region with offices in Sweden, Norway, Finland, and Denmark +24% China January 2021 +36% JV with former South Korean agent-par
Slide 18: Unlocking New Opportunities Through Innovation
UNLOCKING NEW OPPORTUNITIES THROUGH INNOVATION Door to Door Service Unique Sea-Air combo services CHINA TO US AND EUROPE Offering Increase Market Share ▪ Offered in 52 countries globally, resulting ▪ Focus on where volume flows, e.g. India, in convenience for customers and higher Europe, Americas ma
Slide 19: International Supply Chain (MTO) - Key Financial Trends
INTERNATIONAL SUPPLY CHAIN (MTO) - KEY FINANCIAL TRENDS Volumes Revenue (₹ mn) 9,107 1,76,430 7,376 7,701 5,930 4,717 4,889 84,490 66,047 52,017 51,221 27,239 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 Q4FY21 Q3FY22 Q4FY22 LCL (‘000 cbms) FCL (‘00 TEUs) EBITDA (₹ mn) & EBITDA Margins (%) ROCE (%)
Slide 20: Express & Ecommerce Logistics / Contract Logistics
EXPRESS & ECOMMERCE LOGISTICS / CONTRACT LOGISTICS
Slide 21: India's Pioneer in Express Logistics
INDIA’S PIONEER IN EXPRESS LOGISTICS Network Reach Deeper Leader in Logistics Widest in Industry Customer engagements 8 out of Top 10 Auto Companies 4.1 Mn sq. ft. Pan India 735 Warehousing space Area 668 out of 739 across multiple Coverage 8 out of Top 10 offices across Indian Districts Locations P
Slide 22: Unique Integrated Network
UNIQUE INTEGRATED NETWORK Jammu & Kashmir 01 Himachal Pradesh 01 Managing one of the Industry’s widest integrated supply chain network Uttarakhand 02 Delhi 04 | 02 Punjab 04 Line Haul First-Last mile Uttar Pradesh 03 | 01 • 19 Express distribution centers • 144 Own customer convenient center Haryana
Slide 23: Express Logistics - Industry with Limitless Opportunities
EXPRESS LOGISTICS - INDUSTRY WITH LIMITLESS OPPORTUNITIES Surface + Air + Ecommerce + Contract Logistics Total Available Market is ~Rs 52,500 crs Niche Contribution in Logistics Industry Accelerated growth Opportunities ₹ Crs 21,769 11,500 ₹ 24.6k Crs FY25 2,000 2,805 ₹ 51k Crs FY25 ₹ 13.5k Crs FY20
Slide 24: Poised for Growth Through Transformation
POISED FOR GROWTH THROUGH TRANSFORMATION Key Focus Areas: Key Focus Areas: DIGITIZATION Realignment of sales team Streamlining and structure and targeted INFRASTRUCTURE assessing each line item of TALENT approach towards Key P&L. Focused Account Management, improvement in line-haul MSME and Retail.
Slide 25: Digitization
DIGITIZATION Back-end Front-end Pick Up & Delivery automation CRM system Data Science • Pickup Registration, Validation, Visibility & Monitoring Managing customer relationships Route optimization, Load • Handheld printers for real time printing of labels and enhances ability to offer planning, enabl
Slide 26: Express & Ecommerce - Key Financial Trends
EXPRESS & ECOMMERCE - KEY FINANCIAL TRENDS GKEPL - Surface Volumes (‘000 MT) GKEPL - Revenue (₹ mn) 260 265 257 3,535 250 3,336 3,284 3,004 178 2,371 Q4FY21 Q1FY21 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY21 Q2FY22 Q3FY22 Q4FY22 No. of Employees (Gati, Consolidated) Accelerated Deleveraging (Debt - Gati, Con
Slide 27: Contract Logistics - Key Trends & Updates
CONTRACT LOGISTICS - KEY TRENDS & UPDATES Pan India Presence Key Update: CORE CAPABILITIES • Board of directors has approved the scheme of demerger whereby contract logistics business will get transferred to Avvashya Supply Chain Private Limited (currently wholly owned subsidiary of Allcargo), on go
Slide 28: CFS / ICD - Allcargo Terminals Limited (ATL)
CFS / ICD ALLCARGO TERMINALS LIMITED (ATL)
Slide 29: Leading Pan India Player with Unmatched Network
LEADING PAN INDIA PLAYER WITH UNMATCHED NETWORK Strategically Located Assets with Robust Operational Capabilities Operational Support Static Yard Capacity of over JHAJJAR Upcoming ICD/PFT 26,000 TEUs p.a. Strategic Location of all the Assets MUNDRA 2 CFS’s (Owned + DADRI - ICD Widest pan India prese
Slide 30: Overview of CFS/ICD Market
OVERVIEW OF CFS/ICD MARKET CFS/ICD - Proxy to Indian EXIM growth All the Growth Levers in Place for Future CAGR 8-10% • Potential reforms to increase the scope of activities and expand the role of CFS’s. 22 – 25* CFSs also gaining importance due to increased number of LCL shipments CFS/ICD - Market
Slide 31: CFS/ICD - Key Financial Trends
CFS/ICD - KEY FINANCIAL TRENDS Volumes^ (‘00 TEUs) Revenue (₹ mn) 4,505 5,779 4,490 4,640 3,235 2,826 1,474 1,409 1,768 1,724 923 1,314 FY20 FY21 FY22 Q4FY21 Q3FY22 Q4FY22 FY20 FY21 FY22 Q4FY21 Q3FY22 Q4FY22 EBITDA (₹ mn) & EBITDA Margins (%) ROCE (%) (%) 30.8 37.9 26.9 34.8 24.1 23.7 1,759 43.1 1,5
Slide 32: P&E, Logistics Parks and Others - TRLPL
P&E, LOGITICS PARKS AND OTHERS TRANSINDIA REALTY & LOGISTICS PARKS LIMITED (TRLPL)
Slide 33: Logistics Parks
LOGISTICS PARKS ➢ Allcargo has built best in class Grade-A warehousing infrastructure across key locations in India. A nationwide warehousing footprint of 6 million sq. ft. remains under development, through strong connectivity to industrial hubs and transport routes. ➢ The company has already lease
Slide 34: Project & Engineering Solutions
PROJECT & ENGINEERING SOLUTIONS Cranes: Capacity Utilisation (%) • P&E segment includes Crane and container handling equipment rental and Project 87 transportation services. 73 75 75 69 • Multi-sectors serviced: Power (thermal, solar, wind and transmission lines), Oil & Gas, Refineries, Cement, Stee
Slide 35: Rental and Others - Key Financial Trends
RENTAL AND OTHERS - KEY FINANCIAL TRENDS Revenue (₹ mn ) EBITDA (₹ mn) & EBITDA Margins (%) (%) 18.1 10.5 9.9 3.3 13.4 3.2 3,850 634 3,508 ENGINEERING 3,082 SOLUTIONS 383 323 934 1,114 873 117 31 36 FY20 FY21 FY22 Q4FY21 Q3FY22 Q4FY22 FY20 FY21 FY22 Q4FY21 Q3FY22 Q4FY22 Revenue (₹ mn) EBITDA (₹ mn)
Slide 36: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM
Slide 37: Board of Directors
BOARD OF DIRECTORS SHASHI KIRAN SHETTY ADARSH HEGDE PARTHASARATHY V S Chairman & Managing Director Joint Managing Director Vice Chairman & Non-Executive, Director A pioneer in logistics industry and a visionary, first generation entrepreneur. He is the founder of Allcargo Associated with Allcargo Lo
Slide 38: Management Team - Allcargo Logistics
MANAGEMENT TEAM - ALLCARGO LOGISTICS SURESH KUMAR R RAVI JAKHAR DEEPAL SHAH CEO (India) Group Chief Strategy Officer Deputy Group Chief Financial Officer A seasoned industry leader with nearly 30 years A thought leader with a unique blend of A proven leader with over 20 years experience in experienc
Slide 39: Management Team - ECU Worldwide
MANAGEMENT TEAM - ECU WORLDWIDE TIM TUDOR DMITRIY IOFFE SIMON SACHU CEO CCO LCL CCO, Global Air, FCL & Procurement An industry veteran with three decades of experience in Highly recognised commercial leader with rich experience An industry veteran with 20+ years experience, he has shipping and logis
Slide 40: Management Team - Gati
MANAGEMENT TEAM - GATI ADARSH HEGDE PIROJSHAW (PHIL) SARKAR HUAFREED NASARWANJI Managing Director, Gati-KWE Chief Executive Officer Chief Commercial Officer Seasoned Logistics professional acclaimed for leading CA by profession with decades of leadership Rich industry experience across integrated te
Slide 41: Consolidated Financial Overview
CONSOLIDATED FINANCIAL OVERVIEW
Slide 42: Key Financial Highlights - Consolidated
KEY FINANCIAL HIGHLIGHTS - CONSOLIDATED Total Operational Revenue^ (₹ mn) EBITDA^ (₹ mn) & EBITDA^ Margins (%) PAT* (₹ mn) & PAT* Margins (%) (%) 6.2 6.5 6.9 6.0 7.6 (%) 2.9 3.6 3.2 0.9 4.8 2,00,721 15,156 9,646 1,04,981 6,338 68,949 73,462 5,034 60,492 4,485 3,771 2,479 2,343 1,740 951 FY18 FY19 FY
Slide 43: Consolidated Income Statement - Quarterly
CONSOLIDATED INCOME STATEMENT - QUARTERLY Particulars (₹ Mn) Q4FY22 Q4FY21 Y-0-Y Q3FY22 Q-0-Q FY22 FY21 Y-o-Y Revenue from Operations 57,759 33,493 72.5% 58,691 -1.6% 2,00,721 1,04,981 91.2% Expenses 53,445 31,563 53,645 1,85,564 98,643 EBITDA 4,314 1,930 123.5% 5,046 -14.5% 15,156 6,338 139.1% EBIT
Slide 44: Consolidated Income Statement - Annual
CONSOLIDATED INCOME STATEMENT - ANNUAL Particulars (₹ Mn) FY22 FY21 FY20 FY19 Revenue from Operations 2,00,721 1,04,981 73,462 68,949 Expenses 1,85,564 98,643 68,428 64,464 EBITDA 15,156 6,338 5,034 4,485 EBITDA Margin (%) 7.55% 6.04% 6.85% 6.50% Other Income 423 553 413 338 Finance cost 1,100 1,356
Slide 45: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Equity and Liabilities (₹ Mn) Mar-22 Mar-21 Mar-20 Mar-19 Assets (₹ Mn) Mar-22 Mar-21 Mar-20 Mar-19 Equity Non Current Assets Equity share capital 491 491 491 491 Plant, Property & Equipment (net) 7,236 8,977 12,099 11,368 Other equity 31,126 22,344 20,966 19,497 Right use
Slide 46: Consolidated Cash Flow
CONSOLIDATED CASH FLOW Particulars (₹ Mn) Mar-22 Mar-21 Mar -20 Mar-19 Profit before Tax 11,689 1,421 2,994 2,969 Adjustment for Non-Operating Items 5,217 5,531 2,797 1,579 Operating Profit before Working Capital Changes 16,906 6,951 5,791 4,548 Changes in Working Capital (5,565) (2,671) (1,775) (68
Slide 47: Annexures
allcargo logistics ANNEXURES |
Slide 48: Simplified Scheme of Arrangement
SIMPLIFIED SCHEME OF ARRANGEMENT Existing Structure Allcargo Logsitics Limited TransIndia Reality & Mirror demerger resulting in Equipment Hiring / Allcargo Terminals Multimodal Transport CFS and ICD Leasing and Logistics Limited (Wholly Logistics Parks Limited no change in the entitlement Operation
Slide 49: Rationale for Demerger
RATIONALE FOR DEMERGER STRATEGIC INDEPENDENCE AND OPERATIONAL & FINANCIAL FLEXIBILITY TO DRIVE GROWTH • Simplified structure with independent listed companies with sharp management focus Independent ❖ ACL: International Supply Chain(MTO) & Express /Contract Logistics Business Undertakings ❖ ATL: CFS
Slide 50: Scheme Highlights
SCHEME HIGHLIGHTS Allcargo Logistics (ACL) to demerge its CFS/ICD division and its asset heavy Equipment, Logistics Parks business into separately listed entities. The demerger would create three focused entities targeting distinct set of growth opportunities. ACL would now focus on its Internationa
Slide 51: Key Milestones, Indicative Timelines & Approvals Required
KEY MILESTONES, INDICATIVE TIMELINES & APPROVALS REQUIRED Upto ~3 months Upto ~8-10 months ~2-4 months Regulatory Filings & NCLT Filings & Board Approval ROC Filing Approvals Approvals • Approval of the • SEBI, Stock exchanges: • Filing of Scheme • ROC Filing transaction and other BSE & NSE, Lender
Slide 52: Thank You
Thank You Ankit Panchmatia Investor Relations +91-99870 71049 ankit.panchmatia@allcargologistics.com Mr. Irfan Raeen +91 97737 78669 irfan.raeen@linkintime.co.in Mr. Ashish Chovatia +91 99300 44680 ashish.chovatia@linkintime.co.in 51