Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Q4 FY23 Earnings Presentation
50 slides from Mahindra Logistics's earnings presentation, Apr 24, 2023
Slide 1: Stock exchange filing cover letter
mahindra Mahindra Logistics Limited Arena Space, 10th & 11th Floor, LOGISTICS Plot No. 20, Jogeshwari Vikhroli Link Road, Near Majas Bus Depot, Jogeshwari (East), Mumbai - 400060, Maharashtra Tet +91 22 6836 7900 Email enquiries-ma@mahindra.com www.mahindralogistics.com CIN: L63000MH2007PLC173466 0
Slide 2: Investor Presentation: Business & Earnings Update April 2023
mahind ra LOGISTICS Investor Presentation Business & Earnings Update April 2023 4 au= OM GO fGREEN 1- 'a. 1 Confidential 1
Slide 3: Safe Harbor
Igniting Success* Safe Harbor “Presentation”), which have been prepared by Mahindra Logistics Limited (the This presentation and the accompanying slides (the "Presentation"), “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation
Slide 4: Company Overview
Igniting Success Company Overview mahindra LOGISTICS .. Confidential 3
Slide 5: Purpose and Vision
Igniting Success* Purpose Vision THANK YOU ACCELERATING RISE to be a Rs. 10,000 crore logistics COMMERCE service provider by FY 2026; delivering EMPOWERING exceptional customer experience through COMMUNITIES TO differentiated, technology enabled solutions RISE -'011,frat a 3 . RP. Confidential 4
Slide 6: Integrated supply chain logistics provider
Igniting Success Integrated supply chain logistics provider Contract Logistics 'P 04 AA MN B2B Express Providing Transportation, B2B express and PTL Warehousing, Stores & Line Feed , vil transportation with pan Fulfillment and VAS services India coverage mallindra 4 LOGISTICS V le I Last Mile Delive
Slide 7: Multi service provider for mobility solutions
Igniting Success Multi service provider for mobility solutions v z Employee Transportation / _4,16 Airport Services Providing end-to-end employee / 4 transportation services / 4 Dedicated booking counter with Kerb-side pickup 4 4 s mahindra V A LOGISTICS Ad i 43$ r t c t On Call Services Outstation
Slide 8: Macros are positive, continue to be driven by technology enhancements and sustainable logistics
Igniting Success Macros are positive, continue to be driven by technology enhancements and sustainable logistics Industry Trends M. Changing Channel Emerging demand Government policy Shift in global trade Higher demand for landscape driven by clusters across Tier II support for logistics flows due t
Slide 9: MLL Strategy
Igniting Success* MLL Strategy 3PL > Integrated Solutions Strategic Platforms Grow in profitable markets ▪ Increase focus on TCO vs purchased cost ▪ Create a MOAT with clients ▪ Access higher share-of-wallet 1 1 2 3 4 Expand Integrated Operations Digitization Offerings Solutions Excellence & Expand
Slide 10: Presence in High Growth Segments (End-Markets)
Igniting Success Presence in High Growth Segments (End-Markets) ▪ 4th largest automobile market in the world India is 4th Auto I ▪ Favorable ecosystem for exports & government support I: & 01 Hero ▪ 25% contribution in contract logistics market Auto Components ▪ 10% contribution in contract logistic
Slide 11: Supported by latest tech to manage the entire value chain
Igniting Success Supported by latest tech to manage the entire value chain LogiOne Tech Stack Integrated with Automation ▪ WMS - Handheld based inventory mgmt. Handheld r7 compatible ▪ – End to end transport mgmt TMS — WMS *It ▪ Electric Last mile delivery suite Drone based inventory counting ▪ – Lo
Slide 12: Business Updates
Igniting Success* Business Updates mahindra LOGISTICS .. Confidential 11
Slide 13: Management Commentary
Igniting Success Management Commentary – Managing Director and CEO Mr. Rampraveen Swaminathan — “" In Q4 FY23, we continued to invest in our vision of of becoming a customer-led provider of of integrated logistics & mobility solutions. Despite slowdown in some end markets, our core 3PL business demo
Slide 14: Business Highlights
Igniting Success* Business Highlights I I 01 Contract Logistics 02 B2B Express IIII il 111 II l 11 i 03 Freight Forwarding 04 Last Mile Delivery O 05 Mobility V e 0 ▪ Revenue up 14% & GM up ▪ Revenue up 2.5x YoY ▪ 35% drop in Revenue ▪ Revenue up 13% YoY, ▪ Revenue up 76% YoY 150 bps YoY due to Rivi
Slide 15: Contract Logistics - Key Trends & Opportunities
Igniting Success 0 Contract Logistics - Key Trends & Opportunities 9 Logistics Sector Industry Structure 0 0 Key Trends 2,400 •▪ Higher Demand for Integrated ▪ Highly fragmented with top 10 Solutions instead of piece-meal players having ~15% —15% share `000 Crore) logistics services 1,400 Ila (Rs. ‘
Slide 16: Contract Logistics - Core competency & capabilities
Igniting Success Contract Logistics - Core competency & capabilities End to End transport Warehousing solution Integrated Solutions solutions Manage WH with expertise in Centralized management Single point of contact design and operations of all transportation for E2E logistics Efficient Space Impro
Slide 17: Commenced development of largest warehouse park at Chakan
Igniting Success 0 Commenced development of largest warehouse park at Chakan •• Largest single facility of any 3PL in Chakan Talegaon belt *an 1111171111. -Niamey "" • Will house new Auto & Tech Center which will L showcase all automation systems development mahindra LOGISTICS .. Confidential 16
Slide 18: Contract Logistics - Operating Highlights
Igniting Success Contract Logistics - Operating Highlights LOGISTICS Space under management -farr-171-Filin • 19 Operating Mn. Sq. Ft. locations 500+ Vehicles Deployed 15,000+ Trucks Trucks Business Per month Associates 1,500+ ti mahindra LOGISTICS .. Confidential 17
Slide 19: B2B Express - Key Trends & Opportunities
Igniting Success 0 B2B Express - Key Trends & Opportunities 9 B2B Express (Surface) Industry Structure Key Trends li; okAs°10 24,000 ▪ Organized players account for ▪- Increasing demand for Direct to ~70% of volume -70% Consumer, Omni-channel fulfillment 14,000 Market Size (Rs. Crore) ▪ Skewed load
Slide 20: B2B Express - Core competency & capabilities
Igniting Success* B2B Express - Core competency & capabilities Significant Network Coverage . •!• • • ▪ Pan India coverage - 19,000+ Pin-codes .9.:.• MaT.L • • • • 11 • • • • ▪ 300+ Processing Centers & Branches • • 1=-72 0: • T• .9. • • ▪ 400+ partners for first mile & last mile connectivity • • •
Slide 21: B2B Express - Operating Highlights
Igniting Success B2B Express - Operating Highlights Pin-code reach RIVIGO BY mahinclro LOGISTIC 19,000+ RGO IVI Average Volume L NONIN IUsfr et 30,000+ 44) • eisalglfr Tonnes Transhipment Hubs 16. 0111: 1V & DCs Air 300+ Line Hauls & Mid- mile 1,100+ RIVIGO Trucks Trucks 1:21 MIME mahindra LOGISTICS
Slide 22: Freight Forwarding - Key Trends & Opportunities
Igniting Success Freight Forwarding - Key Trends & Opportunities 9 Freight Forwarding Industry Structure Key Trends li; olo GP ▪ Highly fragmented, largely ▪ Near shoring on account of regional 64,000 dominated by companies with conflicts, reducing dependence on 45,600 turnover of < Rs.100 Cr China
Slide 23: Freight Forwarding - Core competency & capabilities
Igniting Success* Freight Forwarding - Core competency & capabilities Expanding International Air Freight Ocean Freight Project Logistics presence AIL efizo, va ► Airport-to-Airport ► Ocean consolidation: I ► ODC solutions catering ► Expand presence in USA /Europe /Asia to & to diverse industries Ch
Slide 24: Freight Forwarding - Operating Highlights
Igniting Success Freight Forwarding - Operating Highlights , F • Ocean Freight Rate Index Ocean Freight ~80%↓ 41 4.‹ Volume vs Q4FY22 13,000+ TEUs in FY23 Air Freight Volume No. of Forwarding 4,900+ Lanes Tonnes in FY23 50+ Globally Globally mahindra LOGISTICS .. Confidential 23
Slide 25: Last Mile Delivery - Key Trends & Opportunities
Igniting Success Last Mile Delivery - Key Trends & Opportunities 9 Last Mile Delivery, India Industry Structure 0 0 Key Trends ▪ Last Mile is most expensive ▪ High growth in Micro fulfillment, 36,500 Oh ~50% component of supply chain, -50% sub same day delivery and dark contribution in transportatio
Slide 26: Last Mile Delivery – Strengthening our leadership position in EV
Igniting Success* Last Mile Delivery – Strengthening our leadership position in EV Vehicle as a Service • Offer a fleet of vans (with drivers) to customers who then use it as per their requirement Distribution as a Service el • Manage Last mile stations that receive, process, sort, route, allocate a
Slide 27: Last Mile Delivery - Operating Highlights
Igniting Success 0 Last Mile Delivery - Operating Highlights Launched 4W EV fleet eoc. Volume handled Accelerating into a Sustainable Future 300,000+ Our Fleet just got bigger! ermi per day orders per Fleet Deployed 3,600+ Vehicles per day Last Mile stations 4 40 . 70+ Geographic Reach e 1.eL eoeL e
Slide 28: Mobility - Key Trends & Opportunities
Igniting Success 0 Mobility - Key Trends & Opportunities 9 Enterprise Mobility Industry Structure Key Trends li; CPAix.13°1° 20,000 ▪ Highly fragmented with large ▪ Recovery in Air passenger traffic, 14,000 unorganized supply growth in Business travel Market Size (Rs. Crore) FY23 AEI FY26 ▪ Shift fr
Slide 29: Mobility - Core competency & capabilities
Igniting Success Mobility - Core competency & capabilities .6 ' •A' - A•if",--ut" I Enterprise Mobility Services Cab on Demand Services Airport & Outstation Upkeep Services ▪■ Fleet Management ▪ Semi Luxury Vehicle Options ▪ Assured Vehicles for Airport Transfers ▪ Fleet Management ▪ Adherence to OT
Slide 30: Mobility - Operating Highlights
Igniting Success* Mobility - Operating Highlights Revenue (Rs. Crore) • No. of Trips p 65 76 63 15,000+ 43 Per day Per No. of vehicles deployed 5,000+ Per day Per Q4FY22 Q2FY23 Q3FY23 Q4FY23 No. of operating Gross Margin (Rs. Crore) locations • 200+ No. of supply [ 11.0% 10.0% 11.1% 8.9% Pan India p
Slide 31: Drive to Net Zero
Igniting Success Drive to Net Zero Carbon Neutral by 1.75 Mn Sq Feet ~19.7 —19.7 Million 2040 Solar Powered warehouses Clio% • • Green KM with EVs ~ 1,300 MT CO2 1,500+ EV Savings in electricity 3W and PCV 1 • consumption 5 IGBC Gold & Platinum mahinclra Accreditation Certified buildings LOGISTICS E
Slide 32: CSR Updates
Igniting Success* CSR Updates Categories FY23 Activities Impact I Er LGBTQ Skill Development Community Welfare Activities: • ▪ Health Check-up camps I ..11 ▪ Blood Donation camps ▪ 23,068 -- underprivileged people Building ▪ Swachh Bharat Abhiyan were benefited through various Communities ▪ Support
Slide 33: Awards and Recognition
Igniting Success Awards and Recognition Logistics Company of the year, ILSC Excellence in Corporate Governance, ICSI Igniting Success IrO. mahindra Igniting Success ►► LOGISTICS Igniting Success with Good Govarnarlca Recognized for 2022 Promoting Culture & Good Governance Logistics Company of the Ye
Slide 34: Financial Update
Igniting Success* Financial Update Financial mahindra LOGISTICS .. Confidential 33
Slide 35: Quarterly Revenue Performance by Segment (Consolidated)
Igniting Success Quarterly Revenue Performance by Segment (Consolidated) Rs. Crore 1,327 1,330 1,273 63 65 1,200 55 60 76 1,136 57 79 44 1,088 106 61 42 73 1,033 W4343 51 91 58 39 109 105 55 S 35 141 113 47 883 101 4 43 29 43 41 42 95 33 1052 1035 945 975 799 835 851 683 S Q1FY22 Q2FY22 Q3FY22 Q4FY2
Slide 36: Financial Highlights – Q4 FY23
Igniting Success* Financial Highlights – Q4 FY23 Core Business Consolidated ( MLL + Lords + Mobility) (Including Rivigo & Whizzard acquisition) r • 11% Y-o-Y 1 25% r -o-Y Y-o-Y Y GM 1 17% Y-o-Y Y-o-Y idad Revenue 18% Y-o-Y 400 GM Revenue Rs. 1,206 Crore Rs. 137 Crore J Rs. 1,273 Crore Rs. 130 Crore
Slide 37: Financial Highlights – FY23
Igniting Success* Financial Highlights – FY23 Core Business Consolidated ( MLL + Lords + Mobility) (Including Rivigo & Whizzard acquisition) r I 21% Y-o-Y idee 5evenue R Revenue 29% I Y-o-Y GM 1 24% Y-o-Y idad Revenue 26% Y-o-Y 400 GM L Rs. 5,017 ,017 Crore 4- 294% Rs. 524 Crore Rs. 5,128 Crore Rs.
Slide 38: Entity wise results
Igniting Success Entity wise results Q4 Financial Performance Rs. Crore • Rs. FY23 Financial Performance Rs. Crore • Rs. Revenue EBITDA PAT Revenue EBITDA PAT Particulars Particulars Q4 F23 Q4 F22 Q4 F23 Q4 F22 Q4 F23 Q4 F22 FY23 FY22 FY23 FY22 FY23 FY22 MLL MLL 61.8 24.4 1,054.5 960.7 82.5 57.9 22.
Slide 39: Segment wise Financials
Igniting Success* Segment wise Financials Rs. Crore Rs. SCM Mobility -0 15% 24% > C24% I 74% C74% ) yt C 29% D I Revenue from Operations 76 i 1,197 260 4,868 3,939 202 43 1,045 Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 SCM Mobility -0 17% 25% 41% 37% Gross Margin 1I Y 123 27 486 7 105 I Y 387
Slide 40: SCM Financials (1/2)
Igniting Success* SCM Financials (1/2) / Rs. Crore Rs. Contract Logistics B2B Express • • 15% 26% > C26% I 153% C 85% 85%)-1 Revenue from Operations 975 105 294 4,007 3,168 159 851 42 Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 Contract Logistics B2B Express • C 30% 34% Gross Margin 121 455 93 3
Slide 41: SCM Financials (2/2)
Igniting Success* SCM Financials (2/2) Rs. Crore Rs. Freight Forwarding Last Mile Delivery • -36% C -36%) C -19%D-- -19% 13% 25% Revenue from Operations 113 450 'PUS/ . 44 39 201 366 I 73 162 1 %FL Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 Freight Forwarding Last Mile Delivery -36% )-- C-36%--
Slide 42: SCM Revenue Split
Igniting Success* SCM Revenue Split Rs. Rs. Crore Mahindra Non-Mahindra • • 27% 39%) 39% 1 2% 9% 674 2,688 512 523 2,180 2,000 533 1,938 1 Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 Transportation Warehousing & Solutions • • 22% 28% 28%P 1 C -9% D 11% I 257 1,043 964 3,825 233 942 789 2,996 Q4F
Slide 43: Income Statement
Igniting Successfl Statement Income Statement Rs. Crore Rs. Particulars Q4FY23 Q4FY22 Y-o-Y FY23 FY22 Y-o-Y Revenue 1,272.5 1,088.5 16.9% 5,128.3 4,140.8 23.8% Other Income 3.8 6.3 15.9 13.6 GM 129.6 109.9 18.0% 512.9 406.9 26.0% GM (%) 10.2% 10.1% 9 bps 10.0% 9.8% 17 bps Total Overheads 65.9 58.4 2
Slide 44: Consolidated Balance Sheet
Igniting Success* Consolidated Balance Sheet Rs. Crore Particulars 31-Mar-23 31-Mar-22 Particulars 31-Mar-23 31-Mar-22 Non-Current Assets 1,147.4 723.7 Equity 560.3 546.8 Property, plant and equipment 196.8 187.6 Equity share capital 72.0 71.9 Capital work-in-progress 3.3 0.4 Share Application Money
Slide 45: Cashflow Statement
Igniting Success* Cashflow Statement Rs. Crore Particulars FY23 FY22 Operating profit before working capital changes 281.5 202.8 Changes in working capital -88.3 50.7 Cash generated from operations 193.2 253.5 Direct taxes paid (net of refund) -73.8 -62.6 Net Cash from Operating Activities (A) 119.4
Slide 46: Outlook & Priorities
Igniting Success* Outlook & Priorities mahindra LOGISTICS .. Confidential 45
Slide 47: Building blocks in place to achieve the vision
Igniting Success 4 Building blocks in place to achieve the vision Grow Integrated logistics business Leverage acquisition to unlock growth Focus on margin expansion through productivity improvement f• dr_ . 11111• NIP •• • Build on Technology & Automation to become critical differentiators mahindra
Slide 48: Path to Value Creation
Igniting Success Path to Value Creation Path to Value Path to ROE Core Growth Creation Leadership in contract Rivigo Turnaround Monetize investments logistics 44 Leverage synergies - between core business Integrated solutions Digital Platform & acquisitions Customer service Margin expansion Partners
Slide 49: Contact Us
Igniting Success* Contact Us Company : Investor Relations Advisors : mahindrE sGA.StrategicGrowth Advisors LOGISTICS CIN: L63000MH2007PLC173466 CIN: U74140MH2010PTC204285 Mr. Rampraveen Swaminathan Mr. Shogun Jain / Mr. Mandar Chavan Managing Director and Managing Director and CEO CEO shogun.jain@sg
Slide 50: Thank You
Igniting Success fl THANK YOU mahindra LOGISTICS Corporate Office Corporate Office 10 & 10 & 11 11 Floor, Floor, Arena Arena Space Space Plot No No 20, Jogeshwari-Vikhroli Link 20, Jogeshwari-Vikhroli Link Road, Road, Plot Near Majas Near Majas Depot, Mumbai- 400 Mumbai- Depot, Jogeshwari 400 060 06