Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS

Adani Ports & Special Economic Zone — Investor Presentation (November 2024)

55 slides from Adani Ports & Special Economic Zone's investor presentation, November 2024

  1. Slide 1: Adani Ports and Special Economic Zone Ltd. Investor presentation

    Adani Ports and Special Economic Zone Ltd. Investor presentation

  2. Slide 2: Table of contents

    Table of contents A Adani portfolio overview B Company profile C Investment summary C1 Debt profile C2 ESG & governance D Catalysts driving market leadership position E FY25 guidance F 5-year guidance G Appendix 2

  3. Slide 3: A Group profile

    A Group profile STRICTLY CONFIDENTIAL

  4. Slide 4: World class infrastructure & utility portfolio

    A World class infrastructure & utility portfolio Flagship Infrastructure & Utility Core Portfolio Primary Industry Emerging B2C Materials, Metal Direct to Incubator Energy & Utility Transport & Logistics & Mining consumer (100%) (100%) (74.89%) (100%) (50.00%) (100%) (100%) ANIL AdaniConneX3 AAHL AR

  5. Slide 5: Decades long track record of industry best growth with national footprint

    Decades long track record of industry best growth with national footprint Secular growth with world leading efficiency National footprint with deep coverage Growth 3x 6 Growth 4x 6 EBITDA 71% 1,2,3 EBITDA 92% 1,3,4 AEL APSEZ Growth 3x 6 Growth 1.4x 6 AGEL Adani’s Core Infra. Platform – ATGL EBITDA 9

  6. Slide 6: Repeatable, robust & proven transformative model of investment

    Repeatable, robust & proven transformative model of investment DEVELOPMENT OPERATIONS CONSUMERS 1 New C.E.O. Adani Infra (India) Limited (AIIL) Operations (AIMSL) Consumer I Employees I Other Stakeholders Origination Site Development Construction Operation Inspired Purpose & Value Creation ACTIVITY

  7. Slide 7: B Company profile

    B Company profile STRICTLY CONFIDENTIAL

  8. Slide 8: Extensive portfolio of marine, ports and logistics assets

    We leverage an extensive portfolio of marine, ports and logistics assets to deliver tech- enabled integrated transport solutions Marine Trains & Ports MMLPs Warehouses Trucks Customer services Tracks gate Digitizing the value chain for Port ops Real-time rake Automated container Fleet management Dig

  9. Slide 9: A transport utility with string of ports and integrated logistics network

    A transport utility with string of ports and integrated logistics network Movable assets Tugs – 114 Dredgers - 28 Trains – 132 Trucks – 936 E-ITVs – 338 OSVs - 26 Moga Dahej Kanech Kotkapura Kandla Kilaraipur Kaithal Panipat 1 to 15 in two (Tuna & Berth 13)# Tauru Dhamora decades Patli & Samastipur

  10. Slide 10: Marine portfolio – significant local presence, also foraying into global waters

    Marine portfolio – significant local presence, also foraying into global waters Diverse set of marine assets - 114 tugs, 28 dredgers, 26 Offshore Support Vessels (OSVs) and support vessels Extensive range of marine services including pilotage, mooring, diving support, harbor towage, ship-to-ship ope

  11. Slide 11: India's largest private port operator, building global presence

    India’s largest private port operator, building global presence West Coast East Coast Capacity Capacity ~361 MMT ~272 MMT Dahej 16 MMT Kandla (Tuna & Berth 13)# 20 Haifa Port MMT Mundra Ports in proximity 264 MMT to DFCs ^Haldia 4 MMT Colombo West Dhamra International Terminal Hazira 50 MMT 30 MMT G

  12. Slide 12: Land bank supporting industry development in port hinterland + logistics sites

    Land bank supporting industry development in port hinterland + logistics sites Dhamra: ~2,000+ Ha Investment in land bank for potential • Rail: 62.5 km longest electrified NGR Line in the country (electrified from Bhadrak / Ranital to DTY) and logistics use connects Howrah Chennai main rail link at

  13. Slide 13: Enabling end-to-end service (Port Gate <-> Customer Gate)

    Enabling end-to-end service (Port Gate <-> Customer Gate) Business Current Scale (Q2 FY25) Growth (FY29 F) Leading infra utility player 1.2X India’s leading third-party Tugs 114 140 marine services provider ~3X Largest private rail Rail Tracks 690 KMs 2,000 KMs network ~2.3x Largest private Containe

  14. Slide 14: Diverse assets enabling waterfront to customer gate capabilities

    Diverse assets enabling waterfront to customer gate capabilities Marine Trains & Ports MMLPs Warehouses Trucks Customer services Tracks gate Illustration – transporting timber and rice using the full ecosystem of assets Leg 1: Timber unloaded at port and transported to customer gate using multiple a

  15. Slide 15: Virochannagar MMLP – India's first zero-touch terminal

    Virochannagar MMLP – India’s first zero-touch terminal Located in proximity to major industrial clusters in Gujarat Industrial clusters focusing on pharma, electronics, auto, engineering goods, ceramic & tiles etc. Virochannagar value proposition C D ▪ Located on Western DFC Engineering Ceramic & go

  16. Slide 16: Virochannagar – a state-of-the-art MMLP

    Virochannagar – a state-of-the-art MMLP Rail yard Container stacking area Rail yard Admin office Domestic & custom warehouse Custom warehouse Maintenance shed 16

  17. Slide 17: Agri logistics solutions – ensuring food security for India

    Agri logistics solutions – ensuring food security for India Locations for newly awarded silo projects 70 locations – 2.8 MMT This slide contains the following visuals: Upcoming FCI - 74 Project Locations ,Prospective FCI - 66 Project Locations. Please refer to the notes on this slide for details • 1

  18. Slide 18: C Investment summary

    C Investment summary STRICTLY CONFIDENTIAL

  19. Slide 19: Growing market share

    Growing market share All India and APSEZ Cargo Volumes Market Share of APSEZ (%) 30% 27% 25% 20% 15% 10% 10% 5% 1% 0% FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Market share growth driven by operational excellence, cargo diversi

  20. Slide 20: Long term growth way ahead of the industry

    Long term growth way ahead of the industry All India Cargo Throughput All India and APSEZ Domestic Cargo Volumes 1,600 1,539 1,500 Cargo Volumes (MMT) 1,400 1,282 1,500 1,300 1,200 1,350 1,100 1,200 973 1,000 1,050 900 900 FY14 FY19 FY24 750 All India Cargo (MMT) 600 450 500 408 300 400 150 300 208

  21. Slide 21: Strong cashflow generation

    Strong cashflow generation Revenue from operations (Rs Cr) EBITDA (Rs Cr) Net Cash Generated from Operations (Rs Cr) 30,000 18,000 16,000 15,018 26,711 15,864 16,000 14,000 25,000 14,000 12,000 20,000 12,000 10,000 10,000 15,000 8,000 10,925 8,000 7,067 6,029 6,000 10,000 6,000 4,000 4,830 4,000 2,9

  22. Slide 22: EBITDA margin expansion across both ports and logistics business

    EBITDA margin expansion across both ports and logistics business Domestic Ports EBITDA (Rs Cr) Logistics EBITDA (Rs Cr) 16,000 14,907 600 540 14,000 500 12,000 10,000 400 8,000 6,053 300 6,000 200 4,000 2,061 90 2,000 100 - - FY14 FY19 FY24 FY19 FY24 Domestic Ports EBITDA Margin % Logistics EBITDA M

  23. Slide 23: Port-wise returns

    Port-wise returns 66% of H1 FY25 domestic ports EBITDA* 22% of H1 FY25 domestic ports EBITDA* 40% 36% 33% 33% 28% 27% 26% 23% 21% 21% 20% 20% 19%19% 16% 16%16% 12% 13% 12% 11% 11% 10% 9% 6% 7% 2% 2% Mundra Hazira Dahej Dhamra Karaikal Krishnapatnam Gangavaram Kattupalli ROCE FY22 ROCE FY23 ROCE FY24

  24. Slide 24: C1 Debt profile

    C1 Debt profile STRICTLY CONFIDENTIAL

  25. Slide 25: Debt maturity profile

    Debt maturity profile 10 Years LTD Maturity Profile as on 30th Sep’24 (INR Cr) FFO + Cash 22,7841 11,207 FFO 12,9671 6,296 6,513 5,690 4,803 2,270 2,514 250 - 250 FY25 (Oct-Mar) FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 Estimated net cash generation post planned capex and the above repayments 25

  26. Slide 26: Debt ratios

    Debt ratios (in INR Cr) Gross Debt, Net Debt & Average Maturity Net Debt to EBITDA 7.0 49,819 6.0 45,453 46,279 44,059 3.3 40,072 3.0 3.1 34,401 5.5 36,462 35,165 31,666 28,472 4.6 4.6 2.3 2.0 Mar'21 Mar'22 Mar'23 Mar'24 Sep'24 FY21 FY22 FY23 FY24 H1 FY25 Net Debt Gross Debt Average Maturity (years)

  27. Slide 27: Comprehensive credit rating coverage

    Comprehensive credit rating coverage International rating agencies Domestic rating agencies AAA / Stable BBB- / Negative AAA / Stable Baa3 / Negative AAA / Stable BBB- (RWN) AAA / Stable 27 RWN – Rating watch negative

  28. Slide 28: C2 ESG & governance

    C2 ESG & governance STRICTLY CONFIDENTIAL

  29. Slide 29: ESG leadership

    ESG leadership ▪ Achieve net zero by 2040 Our ▪ Zero waste to landfill company Commitment ▪ Ensure biodiversity conservation through driving afforestation ▪ Zero safety incidents Guiding principles Guiding Policies principle UNGC SDG SBTi GRI Standard BRSR DJSI TCFD IBBI CDP Policy structure Focus a

  30. Slide 30: ESG performance & targets

    ESG performance & targets Indicator FY25 Target H1 FY25 Energy & Emission RE share in total electricity# 100% 16% Energy intensity reduction* 50% 58% Emission intensity reduction* 60% 55% Water and Waste Water consumption intensity reduction* 60% 59% Zero waste to landfill 12 Ports 6 Ports Afforesta

  31. Slide 31: ESG ratings

    ESG ratings Climate Change [ A- ] Corporate sustainability Sustainalytics ESG Risk Moody’s Global ESG rating Water Security [ B ] Assessment [ 68 ] Rating [ 11.3 ] [ 62 ] Supplier Engagement [ A- ] • Achieved the Leadership level • Scored 68 (out of 100) and ranked • Received low ESG risk • APSEZ ra

  32. Slide 32: D Catalysts driving market leadership position

    D Catalysts driving market leadership position STRICTLY CONFIDENTIAL

  33. Slide 33: India's macro story will continue to drive all-India cargo volumes

    India’s macro story will continue to drive all-India cargo volumes India poised to be a USD 5tn economy by 2028 & world’s 3rd largest economy by 2031 Ports are an integral part of this growth – 95% of India’s trade by volume and 70% by value is via sea Four important levers contribute substantially

  34. Slide 34: Existing ports will continue to drive domestic cargo volumes

    Existing ports will continue to drive domestic cargo volumes Illustrative examples of domestic ports that will drive cargo volumes Mundra (FY24 – 180 MMT) Hazira (FY24 – 26 MMT) Dhamra (FY24 – 43 MMT) Krishnapatnam (FY24 - 59 MMT) 30 50 75 264 250 264 194 204 Drivers Drivers Drivers Drivers • Divers

  35. Slide 35: Successful turnaround of acquired ports

    Successful turnaround of acquired ports Dhamra Kattupalli Krishnapatnam Gangavaram Karaikal EBITDA growth: ~3x EBITDA growth: ~5x EBITDA growth: ~1.5x EBITDA growth: ~1.7x EBITDA growth: ~2x Margin expansion: ~1,100bps Margin expansion: ~3,700bps Margin expansion: ~1,200bps Margin expansion: ~700bps

  36. Slide 36: Strategic partnerships & sticky cargo

    Strategic partnerships & sticky cargo Strategic Partnerships Sticky Cargo Share Year Company Name Partner & Stake Adani International MSC 408 2011 Container (50%) Terminal Pvt Ltd 56% 54% Adani CMA Mundra 337 CMA-CGM 49% 2014 Terminal 312 (50%) Pvt Ltd Dhamra LNG Terminal Total Energies 230 2019 Pvt

  37. Slide 37: Quality assets

    Quality assets Top 10 ports of India include Mundra & Marine & Logistics assets Krishnapatnam FY09 FY14 Current scale (Q2 FY25) FY19 FY24 Kandla Sikka Mundra Mundra India’s leading third-party Tugs 114 marine services provider Sikka Mundra Sikka Paradip India’s largest capital Dredgers 28 dredging c

  38. Slide 38: Growth opportunity in logistics is immense

    Growth opportunity in logistics is immense Fastest growing economy + large consumer base…. ….We have a pan-India logistics presence Fastest Growing Large Economy Large Consumer Base G20 Real GDP CAGRs, 2015 to 2022 (%) Top 10 Countries by Population, 2022 (b) Future outlook for India is #1 7.2% 7.2%

  39. Slide 39: 'Future-ready' with integrated tech platforms

    ‘Future-ready’ with integrated tech platforms Automated container Fleet management Port ops management Real-time rake tracking Digital customer portal depot mgmt. (TOS) system Middleware integrating all our systems Port Community System (PCS) / Command & Control ITUP (Central platform to plan & moni

  40. Slide 40: Digital transformation roadmap

    Digital transformation roadmap 2023-24 2024-25 2025-26 2026-27 2027-28 NextGen foundation Scaling digitalization Transformation Reimagination Smart operations NextGen -TOS (Navis) NextGen -TOS (Navis) NextGen -TOS (Navis) • Digital innovations • Automated Operations • Process standardisation • Digit

  41. Slide 41: Use Case – Strategic Command Centre

    Use Case – Strategic Command Centre Digitized Data for Decision Making • Serves as a central information hub • Leverages data analytics to standardize processes and workflows, reduce TAT, address pilferage risk, increase asset utilization, improve response time, ensure SLA adherence and maintain saf

  42. Slide 42: What makes APSEZ unique?

    What makes APSEZ unique? Scale • India's largest private port operator • Largest network of waterfront to customer gate - 90% hinterland connectivity End-to-end solutions • Driven by a diverse asset base - Vast waterfront assets + extensive hinterland fleet • Strategic partnerships that drive growth

  43. Slide 43: E FY25 guidance

    E FY25 guidance STRICTLY CONFIDENTIAL

  44. Slide 44: FY25 Guidance

    FY25 Guidance FY25 Guidance Cargo 460-480 MMT Revenue Rs 29,000-31,000 Cr EBITDA Rs 17,000-18,000 Cr Capex Rs 10,500-11,500 Cr Net Debt to EBITDA 2.2–2.5x 44

  45. Slide 45: Organic growth - capex segment wise FY25

    Organic growth - capex segment wise FY25 (in INR Cr) Total TotalInvestment Investment ––11,500 17,400 Ports – 7,300 Marine Services - 400 Logistics – 2,300 Decarbonization – 1,500 Domestic 5,500 International 1,800 Tug 400 Grain Silos 1,600 WCT, Sri Lanka and Logistics Park 250 Mundra – Equipment fo

  46. Slide 46: F 5-year guidance

    F 5-year guidance STRICTLY CONFIDENTIAL

  47. Slide 47: Our aspiration: >2x revenue and EBITDA growth

    Our aspiration: >2x revenue and EBITDA growth* 1 BMT cargo volume, 7x revenue growth Cargo (MMT) Revenue (Rs Bn) EBITDA (Rs Bn) 655 365 1,000 327 507 500 Logistics Logistics Ports Ports 267 152159 241 APSEZ APSEZ 240 140 93 109 61 71 35 6 21 5 1 2020 2025E 2030F FY19 FY24 FY29 FY19 FY24 FY29 Our gro

  48. Slide 48: Targeting 1,000 MMT cargo volumes in 2030

    Targeting 1,000 MMT cargo volumes in 2030 Ports Revenue (Rs Bn) Cargo (MMT) • Current domestic port capacity at ~633 MMT, capacity 1,000 507 expansion at existing ports being guided by cargo demand CAGR 16% • APSEZ’s domestic port volume 500 growth >2x the country’s 241 cargo growth rate 240 93 • La

  49. Slide 49: Fast-paced growth for logistics business to continue

    Fast-paced growth for logistics business to continue Logistics Revenue (Rs Bn) Logistics EBITDA (Rs Bn) Logistics EBITDA Margin (%) 140 35 CAGR CAGR 46% 45% 26% 25% CAGR CAGR 15% 21 43% 5 29% 6 1 FY19 FY24 FY29F FY19 FY24 FY29F FY19 FY24 FY29F • Acceleration in growth driven by newly introduced truc

  50. Slide 50: Our five-year roadmap reflects doubling of cashflow generation

    Our five-year roadmap reflects doubling of cashflow generation Revenue (Rs Bn) EBITDA (Rs Bn) Net Cashflow from Operations Ports 655 (Rs Bn) 365 business contributes over 85% of 345 CAGR CAGR APSEZ’s 20% 18% total CAGR EBITDA 18% 159 267 CAGR CAGR 150 20% 18% CAGR 71 20% 109 60 FY19 FY24 FY29F FY19

  51. Slide 51: G Appendix

    G Appendix STRICTLY CONFIDENTIAL

  52. Slide 52: Performance against our 5-year guidance

    Performance against our 5-year guidance Parameters Guidance (FY21-FY25) Actuals (FY21-FY24) 2023 – 398 MMT 2025F – 500 MMT Cargo 2020-2023 CAGR: 2020-2025F CAGR: 17% 20% FY24 – Rs 267 Bn FY25F – Rs 300 Bn Revenue FY21-FY24 CAGR: FY21-FY25F CAGR: 24% 29% FY24 – Rs 159 Bn FY25F – Rs 187 Bn EBITDA FY21

  53. Slide 53: Comfortable leverage levels

    Comfortable leverage levels Mundra Port EBITDA In Particulars FY 16 Growth FY 24 FY 16 ~ 73%, FY 24 ~ 28%. 27% Domestic Market Share. EBITDA 5,376 3.20x 17,202 Cargo volumes have grown 3x the industry growth. Started Operations at Mundra Port Gross Debt 21,842 2.12x 46,389 with 10 MMT Capacity, curr

  54. Slide 54: Geographical & cargo diversification

    Geographical & cargo diversification Growing share of non Mundra Cargo Domestic Cargo Diversification 11% 34% 408 56% Non Mundra ports MMT volume CAGR 34% 89% from FY14 66% 44% 208 36% MMT FY14 FY19 FY24 Mundra Non-Mundra 113 MMT East Coast – West Coast Parity 32% 15% 43% FY14 FY19 FY24 FY14 FY19 FY

  55. Slide 55: 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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