Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — Investor Presentation (August 2021)
37 slides from Adani Ports & Special Economic Zone's investor presentation, August 2021
Slide 1: Adani Ports and SEZ Limited
Adani Ports and SEZ Limited August 2021
Slide 2: Contents
Contents A Group Profile B Company Profile C Growth Journey of APSEZ D Opportunity embedded in Integrated logistics E Capital Management and Investment Thesis F Annexure 2
Slide 3: Adani Group: A world class infrastructure & utility portfolio
Adani Group: A world class infrastructure & utility portfolio Adani Transport & Logistics Energy & Utility • Marked shift from B2B to Portfolio Portfolio B2C businesses– • ATGL – Gas distribution 63.8% 100% 75% 58.2% network to serve key ATL AGEL geographies across India APSEZ NQXT2 Port & Logistics
Slide 4: Adani Group: Decades long track record of industry best growth rates across sectors
Adani Group: Decades long track record of industry best growth rates across sectors Port Cargo Throughput (MMT) Renewable Capacity (GW) Transmission Network (ckm) CGD7 (GAs8 covered) 132% 12% 45% 20% 3x 5x 3x 30% 1.5x 4% 7% 25% Industry Adani APSEZ Industry Adani AGEL Industry ATL Industry AGL 2014
Slide 5: Adani Group: Repeatable, robust & proven transformative model of investment
Adani Group: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt Activity • Analysis & market • Site acquisition • Engineering & design • Life cycle O&M • Redesigning capital stru
Slide 6: APSEZ: Transformational journey
APSEZ : Transformational journey Industry Business • 3x growth compared to market achieved without dilution • From a single port single commodity to an integrated in equity. logistics platform. • Driving efficiency through mechanization at large scale. • Strategic partnerships to unlock value. • Gro
Slide 7: A transport utility with string of ports and integrated logistics network
APSEZ : A transport utility with string of ports and integrated logistics network West Coast East Coast Capacity 335 MMT Capacity 227* MMT Dahej 14 MMT Tuna 14 MMT Mundra 264 MMT Dhamra Hazira Vizag 45 MMT Mundra - 30 MMT 6 MMT India’s Largest Commercial Dighi Gangavaram^ Container Terminals Port by
Slide 8: Our Strategy led to dominant market leadership
APSEZ : Our Strategy led to dominant market leadership Cargo Diversification FY02 FY11 FY21 Coal Containers (mmt) Crude Others APSEZ’s pillars of strategy Strategic Partnerships Integrated logistics FY02 FY11 FY21 East Coast West Coast parity West East West East West East Ensured resilience and stic
Slide 9: Growth journey in past two decades
Growth journey in past two decades
Slide 10: Consistent outperformance leading to gain in market share
APSEZ : Consistent outperformance leading to gain in market share Total cargo (MMT) 247 • Geographical diversification and parity in coasts led to reduction in concentration risk and higher growth. APSEZ CAGR – 25% • Cargo diversification led to de-risking of cargo portfolio 1246 from commodity vola
Slide 11: Revenue and EBIDTA growth reflect robust cargo growth
APSEZ : Revenue and EBIDTA growth reflect robust cargo growth (In INR Bn) Revenue EBITDA and EBITDA Margin CAGR – 41% CAGR – 41% 126 9,000 80% 81 8,000 70% 69% 7,000 64% 60% 6,000 50% 5,000 40% 4,000 30% 3,000 20% 2,000 1,000 10% 0.13 0.2 - 0% EBITDA (Rs.Cr) EBITDA (%) • Customer centric services, s
Slide 12: Medium term outlook
APSEZ : Medium term outlook Business Strategy Finance • Expanding capacity in east • Going regional to build on • To maintain Investment and southern ports to our network strength grade rating. capture hinterland growth • Focus on providing single • Operational excellence & in the areas. window serv
Slide 13: FY25 targets
APSEZ : FY25 (In INR Bn) Cargo Volume (MMT) Revenue EBITDA 274 187 500 2x 2.2x 2.3x 247 126 81 • Our business will grow as a transport utility in next five years • This period to witness Multiple FY21 FY25 FY21 FY25 FY21 FY25 times growth • EPS growth to mirror PAT growth PAT FCF ROCE and will grow
Slide 14: Opportunity embedded in Integrated Logistics
Opportunity embedded in Integrated Logistics
Slide 15: Ample headroom for growth in expanding Infrastructure footprint
APSEZ : Ample headroom for growth in expanding Infrastructure footprint Rail - Container Grain Logistics - AALL 0.3 • 4.1 Mn TEU - Market Size 1.28 • 10.5 MMT - Market Size Mn Teu • 0.3 MnTEU - ALL Market Share MMT • 1.28 MMT - ALL Market Share (8%) (12%) • Market Expected to grow at healthy 12% gro
Slide 16: Integrated logistics to provide growth impetus & bring customers to ports gate
APSEZ : Integrated logistics to provide growth impetus & bring customers to ports gate Grain Rail Trains MMLPs Ware-housing Silos Tracks Assets 60 5 0.87 0.4 mn 620* FY21 Trains MMLP MMT Sq. ft. KMs 3X 3X 3X 75X 3X 200+Trains 15 MMLP 2.5+ MMT 30 mn Sq. ft. 2000+ KMs FY25 (Largest Private (Covering a
Slide 17: ESG Framework
APSEZ ESG Framework
Slide 18: Robust ESG Framework
APSEZ: Robust ESG Framework Guiding Principles United Nations Global Sustainable Development SBTi Compact Goals Guiding Policies principle Disclosure Standards TCFD GRI Standards CDP disclosure Policy Framework Focus Area - UNSDG ESG • Environment Policy • Energy and Emission Policy • Climate Action
Slide 19: Environmental Philosophy
APSEZ: Environmental Philosophy Carbon Emission Reduction Natural Resource Conservation Biodiversity Management • Energy Management • Reduce freshwater withdrawal and • Biodiversity Management Plan • Supporting low carbon Economy water conservation initiatives • Natural Capital Action Plan Awareness
Slide 20: Social Initiatives
APSEZ: Social Initiatives (Data for FY21) United Nations Education • More than 3,000 meritorious students from underprivileged sections receive free education along with daily meals at Adani Vidya Mandirs Sustainable Development Goals 2030 2. Zero Hunger • 3200 students receive education at highly s
Slide 21: Governance Initiatives
APSEZ: Governance Initiatives Policies Committees Assurance • Environment Policy • Corporate Responsibility Committee* • Energy and Emission Policy • Risk Management Committee • Water Stewardship Policy Corporate • Corporate Social Responsibility Committee Responsibility Committee* Establishment of
Slide 22: ESG score comparison with global peers
APSEZ: ESG score comparison with global peers Bloomberg ESG Disclosure Score MSCI Rating Independent Directors % Maersk ICT, SIPGL, Concor 60 60 48 49 56 42 50 38 43 34 36 22 AAA AA A BBB BB B CCC APSEZ Sustainalytics ESG Risk Rating Free Float % Member of # Indices 38 72 109 99 98 28 51 82 76 79 23
Slide 23: Capital Management and Investment Thesis
Capital Management and Investment Thesis
Slide 24: Disciplined capital management policy
APSEZ : Disciplined capital management policy Shift towards long term financing FX risk management- Natural Consistent investment grade rating and profile Hedge • Since FY16, capped at • Natural hedge flows as carrying • 94% of debt is long term sovereign. ~60% of EBIDTA in USD terms. (compared to 7
Slide 25: Significant potential to unlocking value
APSEZ : Significant potential to unlocking value Ports SEZ / Land Logistics (Value Creator) (Value Enabler) (Value Multiplier) – Next gen ports viz. Dhamra, – Bringing customer to the port gate to – Unique & diversified business model of Gangavaram, Krishnapatnam, & enhance stickiness of cargo provi
Slide 26: Thank You
adani Ports and Logistics Thank You
Slide 27: Annexure: Operational and Financial Performance - Q1 FY22
Annexure Operational and Financial Performance - Q1 FY22
Slide 28: Strategic highlights – Q1 FY22
APSEZ : Strategic highlights – Q1 FY22 Operations Capital Management Growth • 83% Growth in cargo volume compared • APSEZ became the first Indian • Acquired balance 25% stake in to 33% growth by all India ports infrastructure company to have raised a Krishnapatnam port for Rs.2,800 cr., resulting in
Slide 29: Operational highlights – Q1 FY22
APSEZ : Operational highlights – Q1 FY22 (YoY) Cargo volume Cargo Market Share 83% 310 bps • Cargo volume increased due to growth in all Q1 FY21 Q1 FY22 types of cargo - Dry bulk grew by 104%, FY21 Q1 FY22 41.4 75.7 Container by 69%, and liquid cargo 25.5% 28.6% (including crude) by 57%. MMT MMT • A
Slide 30: Cargo volume Q1 FY22 - APSEZ vs. All India
APSEZ : Cargo volume Q1 FY22 - APSEZ vs. All India (YoY in MMT) APSEZ All India Cargo* 76 265 83% 33% 199 41 31 69% 18 51% 71 47 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 APSEZ Total Cargo APSEZ Container All India Total Cargo All India Container East Coast - West Coast Share Q1 FY21 Q1 FY22 Q1 FY21 Q
Slide 31: Financials highlights – Q1 FY22
APSEZ : Financials highlights – Q1 FY22 (YoY, in INR cr.) Operating Revenue Operating EBITDA 99% 82% 2,293 4,557 1,438 2,620 Port Revenue Port EBITDA Port EBITDA Margin 100 bps 75% 78% 1,904 3,339 1,324 2,356 70% 71% PBT PAT EPS 60% 77% 72% 943 1,513 758 1,342 3.73 6.41 Q1 FY21 Q1 FY22 31 *EBITDA ex
Slide 32: Outlook FY22, Revised
APSEZ : Outlook FY22, Revised ❖ Cargo volume guidance revised to 350 - 360 MMT, a growth of 45% Volume ❖ This includes 10 MMT of incremental volume from existing ports and 39 MMT of Gangavaram port (GPL) which will be consolidated from April ‘21. ❖ Consolidated revenue - Rs.18,000 cr. – Rs.18,800 cr
Slide 33: Response to recent developments
APSEZ : Response to recent developments • Select Media houses and social platform carried a news item on freezing of few FPI accounts who are decades old shareholders in Adani Portfolio • In order to protect the interest of minority shareholders, APSEZ approached registrar and FPI Holdings in NSDL a
Slide 34: Response to recent developments
APSEZ : Response to recent developments • APSEZ believes that it is not in violation of any sanction guidelines issued by OFAC, and has, therefore, applied to OFAC for a general license to operate the Port, as it is expected to create stable jobs, promote private commercial trade, facilitate the arr
Slide 35: Update on acquisition of Gangavaram Port Ltd (GPL)
APSEZ : Update on acquisition of Gangavaram Port Ltd (GPL) • Our intent is to acquire 100% stake of Gangavaram Port Ltd. • Acquired 31.5% from Warburg Pincus for a consideration of Rs.1,954 Cr. in April 2021 at Rs.120 per share Transaction Status • Agreement has been signed with DVS Raju and Family
Slide 36: Update on acquisition of Surguja Rail Corridor Pvt. Ltd. (SRCPL)
APSEZ : Update on acquisition of Surguja Rail Corridor Pvt. Ltd. (SRCPL) • As part consolidation of rail track assets, SRCPL is being acquired from Adani Group • Since this is a related party transaction, APSEZ has followed the board approved policy on “Sale or purchase of assets from related partie
Slide 37: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Adani Ports and Special Economic Zone Limited (“APSEZL”),the future outlook and grow
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