Delhivery Limited · NSE:DELHIVERY
Delhivery — India E-commerce logistics - Opportunity and Outlook (HSBC Global Research investor web co (July 2022)
40 slides from Delhivery's conference presentation, Jul 4, 2022
Slide 1: Exchange filing cover letter on investor web conference
Date: July 4, 2022 BSE Limited National Stock Exchange of India Limited Floor 25, P J Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 India India Scrip Code: 543529 Symbol: DELHIVERY Sub: Presentation on participation in Investo
Slide 2: Investor Presentation – July '22
Investor Presentation – July ‘22
Slide 3: Safe harbour and disclaimer
Safe harbour and disclaimer This Presentation is prepared by Delhivery Limited (“Company”) and is for information purposes only without regards to specific objectives, financial situations or needs of any particular person and nothing in it shall be construed as an invitation, offer, solicitation, r
Slide 4: We aim to build the Operating System for commerce in India
We aim to build the Operating System for commerce in India 3
Slide 5: India's logistics market is large and highly fragmented
India’s logistics market is large and highly fragmented Direct Logistics Spend (1) Direct Logistics Share of Top 10 Per Capita Direct ($Bn) Spend / GDP (1) (%) Organized Players Logistics Spend($) (2) (%) 200 8% ~1.5% 150 1,470 7% ~15% 4,460 1,470 10% ~7-10% 1,050 Source: RedSeer report 4 1. As of C
Slide 6: Massive TAM
Massive TAM Express Part Truckload Supply Chain Cross-Border Parcel (1) Truckload Freight (1) Services (1) Air (1) Freight (1) $10-12 Bn $26 Bn $163 Bn $109 Bn $8 Bn Total TAM(1): $316-318 Bn Source: RedSeer report 5 1. CY2026E TAM figures approximated to the nearest $Bn value
Slide 7: Our evolution
Our evolution • Launched Delhivery Direct and Franchise • Launched Supply Chain • Acquisition of Services division Primaseller • Launched Truckload • Introduced Volvo 940 Services division tractor-trailer fleet • Acquired Aramex India assets, global partnership • Setup Seattle center for platform de
Slide 8: India's largest integrated logistics platform
India’s largest integrated logistics platform(1) $940 Mn 63.6% 1.0% FY22 Proforma revenue(2) FY19 – 22 Revenue CAGR(3) FY22 Proforma adjusted EBITDA margin(2) 1.4 Bn/24-25% 58.6% 2 Mn+ Tons Express orders shipped since Revenue from customers PTL freight handled(6) inception/e-Commerce market share(4
Slide 9: Delhivery: Investment case
Delhivery: Investment case 1 $200Bn+ addressable market - large and highly fragmented 2 Largest integrated logistics platform with a full range of supply chain services 3 Industry leading revenue growth and scale 4 Operating leverage driving adjusted EBITDA profitability 5 Unified network infrastruc
Slide 10: Revenue is diversifying rapidly
Revenue is diversifying rapidly CAGR (FY19-22) 940 Revenue(1) ($ Mn) Cross-border 233.3% 8% SCS 61.0% 4% TL NM(2) 24% PTL 130.0% 474 11% 361 6% 8% 11% 13% Express 8% 58% 45.1% 215 Parcel 8% 133 70% 97 5% 69% 64 83% 29 97% 89% 0 2 8 98% 97% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Expre
Slide 11: Consistent volume growth
Consistent volume growth Express Parcel shipments (In Millions) 582 Annual Quarterly 170 176 135 102 289 94 82 225 73 73 55 53 148 44 43 40 93 31 37 37 45 68 0 2 6 20 FY 12 13 14 15 16 17 18 19 20 21 22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY19 FY20 FY21 FY22 PTL Freight tonnage(1) (In ‘0
Slide 12: Breakeven achieved at Adjusted EBITDA level
Breakeven achieved at Adjusted EBITDA level $ Mn FY19 FY20 FY21 FY22(1) Revenue 215 361 474 940 Service EBITDA refers to cash EBITDA generated by Yield per express parcel ($) 1.2 1.1 1.1 0.9 all the services after accounting for direct variable Fuel price per litre(2) ($) 0.9 0.8 1.1 1.2 and fixed c
Slide 13: Breakeven achieved at Adjusted EBITDA level
Breakeven achieved at Adjusted EBITDA level Adjusted EBITDA(1) ($ Mn) (5) (8) (3) 10 11 (24) (33) (33) 9 3.7% 3.9% 1.0% (1.6%) (4.0%) (3.8%) (6.9%) (9.1%) (11.3%) Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY19 FY20 FY21 FY22 Quarterly Yearly (1) FY22 figures are on proforma basis 12 Refer to the Adjus
Slide 14: Adjusted Cash PAT is positive
Adjusted Cash PAT is positive Adjusted cash PAT(1) ($ Mn) (2) (4) (0) 13 18 (20) (7) (11) 27 6.6% 5.0% 2.9% (0.1%) (1.7%) (1.8%) (1.9%) (2.1%) (9.2%) Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY19 FY20 FY21 FY22 Quarterly Yearly (1) FY22 figures are on proforma basis Note: Not adjusted for any non-cas
Slide 15: Investing in capacity and capability building
Investing in capacity and capability building Covid impacted period year Use of funds - mix Use of funds – value(1) (%) ($ Mn) 5 103 209 52 351 6% 2% 14% 13% 33% 49% 20% 63% 13% 62% 29% 60% 18% 55% 20% 21% 19% 3% FY12-FY14 FY15-FY17 FY18-FY20 FY21 FY22 Operating Cash Burn Capex Working Capital Inorg
Slide 16: FY23 Growth initiatives
FY23 Growth initiatives 1 Integration of DLV and SO networks, realize network synergies, launch economy PTL service 2 Up to 4 Mn sqft infra expansion, fleet expansion by 150 TTs, 35% expansion of ASCs 3 Introduction of new automation - AGVs/AMRs, ASRS systems, system-directed MM operations 4 Expand
Slide 17: Delhivery: Outperforming on business growth
Delhivery: Outperforming on business growth 70% FY15-22 CAGR (%) 50% 30% India nominal GDP growth: 9.5%(1) 10% 0 250 500 750 1,000 -10% FY22 Revenue ($ Mn) (1) India GDP data source: FY15-FY21 from RBI Time-Series Publication, FY22 estimate from NSO MOSPI Second Advance Estimate (2) Each bubble indi
Slide 18: Delhivery is at the cross-section of several growth drivers
Delhivery is at the cross-section of several growth drivers(1) INFRASTRUCTURE TECHNOLOGY & DATA SCIENCE Large real estate footprint | Leveraging Data science, ML & AI | Proprietary India’s regulatory reforms & tech platform | Cutting edge infra-development | General capital engineering & automation
Slide 19: Appendix
Appendix 18
Slide 20: Delhivery: Team and Directors
Delhivery: Team and Directors Sahil Barua Sandeep Barasia Managing Director Executive Director CEO CBO Deepak Kapoor Chairman Kapil Bharati Amit Agarwal Executive Director CFO CTO Kalpana Morparia Romesh Sobti Saugata Gupta Srivatsan Rajan Independent Director Independent Director Independent Direct
Slide 21: Industry outlook
Industry outlook Market conditions are challenging Improving regulatory environment Large opportunities remain intact • Geopolitical conditions continue to • Infrastructure status for logistics, • Continued increase in online purchase cause significant disruption continued improvement of road, air a
Slide 22: Pan-India network coverage
Pan-India network coverage 2,023 Surface connections connecting 8,659 OD pairs daily 274 Air connections daily 21 Note: Maps for representation purpose only. Coloured portion of the maps represent Delhivery’s pin-code reach
Slide 23: Key operating metrics
Key operating metrics As of end of FY19 FY20 FY21 FY22(1) Pin-code reach(2) 13,485 15,875 16,677 18,074 Countries served 42 42 42 220+ No. of active customers(3) 4,867 7,957 16,741 23,613 Infrastructure (in million sq. ft.) 5.96 9.85 12.23 18.15 Gateways 73 83 88 123 Automated sort centers 17 21 19
Slide 24: Operating leverage improving consistently
Operating leverage improving consistently $ Mn Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Freight, Handling and Servicing Cost(1,2) 98 189 195 361 647 % of Revenue from Customers(1) 75.0% 72.9% 72.5% 76.2% 72.4% Line haul expenses 50 89 94 172 311 % of revenue 38.2% 34.5% 35.0% 36.4% 34.8% Contractual manpower
Slide 25: Working capital position improving YoY
Working capital position improving YoY Net Working Capital (Days) 43 73 47 37 106 87 78 74 40 37 35 33 FY19 FY20 FY21 FY22 Receivable days Payable days Net Working Capital Days (Receivable Days – Payable Days) Receivable days = (Trade receivable + Unbilled receivables) * 365 / Revenue from operation
Slide 26: Strong liquidity position
Strong liquidity position Debt to Equity $ Mn FY19 FY20 FY21 FY22 Term loan 8 22 26 30 Working capital loan 4 12 11 16 Debt (excludes CCPS) (A) 12 33 37 46 Cash and cash equivalents1 (B) 389 301 260 326 Net debt (A-B) (376) (267) (223) (280) Networth (C) 440 412 368 774 Debt/Equity (A/C) 0.03x 0.08x
Slide 27: Adjusted EBITDA bridge
Adjusted EBITDA bridge Adjusted EBITDA(1) $ Mn Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Remarks Total revenue 130 259 269 474 940 Less: Total expenses 149 280 293 547 1,105 Add: Finance cost on borrowings 1 1 1 3 7 Lease Adjustments due to AS 116 1 1 1 6 6 Leased properties accounted as Right of Use (ROU) ass
Slide 28: Adjusted Cash PAT bridge
Adjusted Cash PAT bridge Adjusted Cash PAT(1) $ Mn Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Remarks Profit after tax (15) (16) (16) (54) (140) Lease adjustments due to AS 116 1 1 1 6 6 Leased properties accounted as Right of Use (ROU) assets under Ind AS 116. Rent paid on such leased Add: Depreciation on righ
Slide 29: Wide ownership across organization
Wide ownership across organization ESOPs1 Stage Total % shareholding on fully diluted basis ESOPs granted, of which 35,505,576 4.42% Vested 1,812,960 Unvested 33,692,616 ESOPs ungranted, of which 43,847,397 5.45% Performance-based ESOPs2 17,100,000 Time-based ESOPs3 26,747,397 Total (Granted + Ungra
Slide 30: Projected ESOP costs
Projected ESOP costs Estimated P&L charge (non-cash) for ESOPs already Distribution of P&L charge over vesting period for granted1 future ESOP grants2 $ Mn Total Year Time-based FY23 30 Y1 42.5% FY24 13 Y2 32.5% FY25 6 Y3 17.5% FY26 2 FY27 0.1 Y4 7.5% Total 51 Total 100% (1) Related to costs attribu
Slide 31: Quarterly & full year financial performance (Proforma P&L)
Quarterly & full year financial performance Proforma P&L $ Mn Q-o-Q Y-o-Y Income Q3 FY22 Q4 FY22 FY21 FY22 Growth % Growth % Revenue from customers 259 269 4% 578 940 63% Other income 3 7 129% 25 20 (19%) Total income 262 276 5% 603 961 59% Expense Total freight, handling and servicing cost 189 195
Slide 32: Quarterly & full year financial performance (Reported P&L)
Quarterly & full year financial performance Reported P&L $ Mn Q-o-Q Y-o-Y Y-o-Y Income Q4 FY21 Q3 FY22 Q4 FY22 FY21 FY22 Growth % Growth % Growth % Revenue from customers 130 259 269 4% 107% 474 894 89% Other income 4 3 7 129% 90% 25 20 (19%) Total income 134 262 276 5% 106% 498 914 83% Expense Tota
Slide 33: Balance sheet
Balance sheet $ Mn $ Mn Equity and Liabilities Mar 2021 Mar 2022 Assets Mar 2021 Mar 2022 Total equity 368 774 Non – current assets Non – current liabilities Non – current cash equivalents(1) 57 90 Borrowings 17 15 Property, plant and equipment (Incl CWIP) 41 88 Lease liabilities 85 74 Goodwill and
Slide 34: Cash flow summary
Cash flow summary $ Mn FY21 FY22 Operating profit/ (loss) before working capital changes 8 35 Changes in net assets(1) (5) (64) Cash generated from / (used in) operations 3 (29) Direct taxes paid (net of refund) (2) (2) Net cash from / (used in) operating activities 1 (31) Net cash from / (used in)
Slide 35: Investing in capacity and capability building
Investing in capacity and capability building Capex Spends ($ Mn) Capex as % of Total 1 9.0% 7.5% 7.2% 6.8% Revenues from Operations 61 Spill over of ~$13 Mn of capex into FY22 1.6% Covid impacted year 34 1.1% 0.8% 1.0% 27 1.9% 1.9% 19 1.9% 1.2% 1.2% 0.1% 0.2% 0.3% 1.3% 3.0% 3.2% 3.0% 2.7% 3.8% Tran
Slide 36: Proprietary technology platform
Proprietary technology platform Application Ecosystem of 80+ business applications that can be bundled Layer Operational In- Fleet Quality & Client Panels Channel Partner Control Tower Billing, Audit, Data into solutions facility and Management Tracking Integration Management P&L Tracking Intelligen
Slide 37: Data intelligence capabilities
Data intelligence capabilities Vehicle Trace Data Over 250 Mn GPS trace points daily across >80 K Location Stack unique devices(1,2) Address standardization(6), geocoding, geofencing, Location & Product Data locality polygons/ hierarchy, PoIs, travel / service Address, product and customer data capt
Slide 38: ESG initiatives
ESG initiatives • 1.5MW of Solar power plants already installed at our Gurgaon and Kolkata mega gateways Environment • Active pilots on 2 & 3-wheeler EVs across first mile, last mile and carting and CNG in mid mile. Engaged with various OEMs to explore EV and LNG vehicle options for carting and line
Slide 39: Definitions and abbreviations
Definitions and abbreviations AGV Automated guided vehicle AMR Autonomous mobile robot ASC Automated sort capacity BA Business associate CCPS Compulsorily convertible preference shares Cross Border Cross border express parcel and freight service by the Company D2C Direct to consumer GST Goods and se
Slide 40: Thank You
Thank You For any queries please write to us at ir@delhivery.com 39