Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — JP Morgan Debt Conference 2020
40 slides from Adani Ports & Special Economic Zone's conference presentation, Feb 22, 2020
Slide 1: Debt Presentation - JP Morgan Debt Conference
Adani Ports and SEZ Limited DEBT PRESENTATION JP MORGAN DEBT CONFERENCE, F E B R U R A Y, 2 0 2 0 MIAMI
Slide 2: Contents
CONTENTS Adani Group Company Profile Technology & People 04-07 17-21 27-28 Adani Group : A world class APSEZ : A transport & logistics infrastructure & utility portfolio 04 utility that dominates the network 17 Adani Group : Repeatable, robust APSEZ : Capital Management & proven model to deliver RoE
Slide 3: Adani Group
Ports and Logistics Adani Group
Slide 4: Adani Group: A world class infrastructure & utility portfolio
Debt Presentation | February 2020 Adani Group: A world class infrastructure & utility portfolio Transport & Logistics Portfolio Adani Energy & Utility Portfolio Adani 62.5% 100% 75% 75% Philosophical shift from B2B to B2C businesses – APSEZ SRCPL ATL AGEL Port & Logistics Rail T&D Renewables AGL – G
Slide 5: Adani Group: Repeatable, robust & proven model to deliver RoE
Debt Presentation | February 2020 Adani Group: Repeatable, robust & proven model to deliver RoE Development Operations Post Operations Phase Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisition Engineering & design Life cycle O&M Redesigning the capital
Slide 6: Adani Group: Repeatable, robust business model applied to drive value
Debt Presentation | February 2020 Adani Group: Repeatable, robust business model applied to drive value Successfully applied across Infrastructure & utility platform Development at large scale & within time and budget India’s Largest Longest Private HVDC 648 MW Ultra Mega Largest Single Location Com
Slide 7: Adani Group: World-Class credit portfolio attracting global investors
Debt Presentation | February 2020 Adani Group: World-Class credit portfolio attracting global investors Transport & Logistics Portfolio Company Issue date Issue Size (USD Mn.) Coupon Current Yield** Average Maturity DTD Debt structure Ratings Jul,19 650 3.38% 2.87% 5 5 Bullet BBB- (S&P, Fitch) / Baa
Slide 8: ESG
Debt Presentation | February 2020 Ports and Logistics ESG 08
Slide 9: APSEZ: ESG Performance
Debt Presentation | February 2020 APSEZ: ESG Performance 54% 40% 6 MW 13 MW 70 % Local Energy Intensity* Emission Intensity* Wind Turbine# Solar Panel# Procurement 44% 99% Waste 10 Million 2889 Ha 7% Water Intensity* Managed through 5R Trees Planted Mangrove Afforestation Employee Turnover *Compared
Slide 10: APSEZ: Sustainability Roadmap - Environment
Debt Presentation | February 2020 APSEZ: Sustainability Roadmap Target by FY 21 Target by FY 25 Energy Intensity - 55% Reduction Energy Intensity - 60% Reduction Natural Resource Conservation Water Neutrality Roadmap Alliance for Water Stewardship Water Intensity - 45% Reduction Water Intensity - 55
Slide 11: APSEZ: Sustainability Roadmap - Social
Debt Presentation | February 2020 APSEZ: Sustainability Roadmap Target by FY 21 Target by FY 25 Safety Mandatory Induction Training for BSC 5 Star Audit and Certification of Ports everyone entering into APSEZ Premises Employee Turnover < 6% Employee Turnover < 5% Employee Development Employee Satisf
Slide 12: APSEZ: Sustainability Roadmap - Governance
Debt Presentation | February 2020 APSEZ: Sustainability Roadmap Recent Policy Initiatives FY21 Targets Policy on “Related Party Transaction All CXOs level employees and KMPs for Acquiring and Sale of Assets”. compensation to be linked to safety. Policy Capital Allocation policy -Project pre Audit Co
Slide 13: APSEZ: Climate Strategy
Debt Presentation | February 2020 APSEZ: Climate Strategy Environment related factors that matter to our business model Carbon Emission Resource Management Waste Management Climate Awareness Increase Renewable Energy Reduce freshwater withdrawal Material Recovery Facility share by 80% Biogas Plant (
Slide 14: Case: Carbon Footprint Reduction and Waste Management
Debt Presentation | February 2020 Case: Carbon Footprint Reduction and Waste Management Renewable Energy Initiatives Integrated Waste Management Energy Mix Waste Management through 5R Principle (Reduce, Reuse, Reprocess, Recycle, Recover) Renewable 6% Renewable 25% FY 20 Conventional 94% FY 25 Conve
Slide 15: Case: Social Up-liftment Fisherman Community
Debt Presentation | February 2020 Case: Social Up-liftment Fisherman Community Education Community Health Free Education – Transportation Support – Medical Support – Support for Insurance cover – 155 students 605 students 9876 persons 2566 persons Play School for – Turtle Conservation Trainings Seni
Slide 16: Company Profile
Debt Presentation | February 2020 Ports and Logistics Company Profile 16
Slide 17: APSEZ: A transport & logistics utility that dominates the network
Debt Presentation | February 2020 APSEZ : A transport & logistics utility that dominates the network Pan India Presence Industrial Cluster/SEZ Integrated Logistics 11* Ports across 8000+ Ha. port side land - Connects entire value coastline of India. customer gate at port gate. chain. Covering vast h
Slide 18: APSEZ: Capital Management Program
Debt Presentation | February 2020 APSEZ : Capital Management Program Consistent investment grade Elongated debt maturity profile Liability Management- Natural rating Increased from 3 years to 6 years. Hedge Investment grade rating since FY16, Debt mix changed FX 65% and INR US dollar denominated inc
Slide 19: APSEZ: Immense value creation
Debt Presentation | February 2020 APSEZ : Immense value creation Key Highlights FY15 FY20 Total capital employed is USD 6,743 mn. (Equity USD 3,571 mn. and Debt USD 3,172 mn.)*# EBITDA has grown ~2x over the Strict period Credit Rating BBB-/Baa3 Covenant BBB-/Baa3 Management Enterprise Value grown 6
Slide 20: Global Benchmarking: APSEZ vs. Global Peers
Debt Presentation | February 2020 Global Benchmarking : APSEZ Vs. Global Peers Revenue Growth (3 yr CAGR) EBITDA Margin % Name Credit Rating ESG Rating 14.6 65 DP WORLD Baa1/-/BBB+ BB 57 11 50 47 45 SHANGHAI PORT A1/A+/- BB 35 PSA TERMINALS Aa1/AA/- N.A. 1.7 1.5 CHINA MERCHANTS Baa1/BBB/- CCC -0.4 -
Slide 21: APSEZ: All four bonds are in the money
Debt Presentation | February 2020 APSEZ : All four bonds are in the money Normalized As of 02/15/2019 114.00 Last Price ADSEZ 3.95 01/19/2020 144A Corp 103.42 112.593 112.00 ADSEZ 4 07/30/2027 144p Corp 112.593 ADSEZ 438 07/03/2029 144A Corp 102.504 ADSEZ 338 07/24/2024 144A Corp 101.834 110.00 108.
Slide 22: Annexure
Debt Presentation | February 2020 Key Financials Ports and Logistics Finance Strategy Technology and People Highlights - 9M FY20 Annexure 22
Slide 23: Financials - Robust Earnings and Return Metrics
Debt Presentation | February 2020 Financials - Robust Earnings and Return Metrics Revenue from Operations(1) EBITDA(2) EBITDA Margin (%) Profit for the Year Profit Margin(3)(%) (US$ mn) (US$ mn) (US$ mn) .5% CAGR: +11 64.3% 63.1% 64.7% 64.7% 46.2% 32.6% 37.0% 37.18% .8% 581.5 572.6 578.7 294.6 CAGR:
Slide 24: APSEZ is rated investment grade from FY16 and beyond
Debt Presentation | February 2020 APSEZ is rated investment grade from FY16 and beyond APSEZ - International Rating Joint Ventures – Domestic Ratings Rating Agency Rating/ Outlook Remarks Rating Agency Rating/ Outlook Company Remarks AICTPL (JV with Fitch BBB-/Stable CARE AA/Stable Long Term Facilit
Slide 25: Debt profile - Elongated post bond issuance
Debt Presentation | February 2020 Debt profile – Elongated from 3 to 6 years Reduction in cost of debt post bond issuance Long Term Debt Maturity profile Long Term Debt Maturity profile# Improving Interest cost Shrinking APSEZ Spread 9.0% 2.38% 2.4% 49% 7.97% 2.15% 2.2% 8.0% 7.66% 1.95% 1.95% 2.0% 3
Slide 26: Technology & People
Debt Presentation | February 2020 Ports and Logistics Technology & People 26
Slide 27: Leveraging technology on an enhanced service base
Debt Presentation | February 2020 Leveraging technology on an enhanced service base Automated & Integrated Design Bidding CAPEX Planning & Optimisation Automated Workflow & Workflow Platforms for Internal and External Project 1 Data Based Stakeholders – providing Management Decision visibility & dat
Slide 28: People: Building future ready organisation
Debt Presentation | February 2020 People : Building future ready organisation Leadership pipeline Continuous Capability Talent development Development Management Leadership readiness for new business and Focused training approach. Create Opportunities forInternal international expansion. Talent. Peo
Slide 29: Highlights - 9M FY20
Debt Presentation | February 2020 Ports and Logistics Highlights - 9M FY20 29
Slide 30: Operational Highlights 9M FY20
Debt Presentation | February 2020 Operational Highlights 9M FY20 Operational Highlights Acquisitions Cargo volume of 165 MMT, achieved a growth of 8% Definitive agreement signed to acquire 75% stake in Krishnapatnam Port. Equity of Rs.5,520 cr. to be funded by Cargo growth across all the three regio
Slide 31: Cargo Comparison: APSEZ vs. All India Ports - 9M FY20
Debt Presentation | February 2020 Cargo Comparison : APSEZ vs. All India Ports - 9M FY20 APSEZ Total Throughput * All India Ports Total Cargo 8% Growth 5% Growth 165 764 154 729 Vs. 9M FY 19 9M FY 20 9M FY 19 9M FY 20 Of which Container All India Container Volume 8% Growth 4% Growth 68 192 184 62 Vs
Slide 32: Cargo Composition: 9M FY20
Debt Presentation | February 2020 Cargo Composition : 9M FY20 Coal Container Crude Others 47% 41% 41% 41% 37% 41% 32% 36% 29% 33% 33% 32% 17% 15% 15% 15% 14% 14% 12% 12% 13% 10% 11% 10% FY 15 FY 16 FY 17 FY 18 FY 19 9M FY 20 Balanced Cargo Mix……… 32
Slide 33: Consolidated Financial Performance
Debt Presentation | February 2020 Consolidated Financial Performance Operating Revenue Consolidated EBIDTA* Operating Revenue grew 8,952 5,921 by 14% 7,843 5,135 Consolidated EBITDA* grew by 15% 9M FY 19 9M FY 20 9M FY 19 9M FY 20 PBT PAT PBT grew by 13% 3,987 3,439 2,706 3,543 PAT grew by 27% 9M FY
Slide 34: Energy Performance - 9M FY20
Debt Presentation | February 2020 Energy Performance – 9M FY20 9166 8593 8944 8333 8309 8046 447940 5868 5712 5648 5605 422646 430672 433212 5341 5194 409086 395613 128922 117406 119715 110757 118762 109267 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 FY 19 FY 20 FY 19 FY 20 Standalone (APSEZ) Consolidated E
Slide 35: Emission Performance - 9M FY20
Debt Presentation | February 2020 Emission Performance – 9M FY20 1342 1324 1383 1292 1248 1288 941 910 926 827 819 66580 884 59900 65549 69002 67159 19625 61362 21248 18878 17843 16694 19433 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 FY 19 FY 20 FY 19 FY 20 Standalone (APSEZ) Consolidated Emission Intensit
Slide 36: Water Consumption - 9M FY20
Debt Presentation | February 2020 Water Consumption – 9M FY20 24 19 13 1276 19 18 12 18 11 11 11 10 974 937 927 805 15 264 240 242 757 227 238 230 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 FY 19 FY 20 FY 19 FY 20 Standalone (APSEZ) Consolidated Water Intensity (ML/MMT) Water Consumption (ML) Water Intensi
Slide 37: Health and Safety Performance - 9M FY20
Debt Presentation | February 2020 Health and Safety Performance – 9M FY20 17 16 0.95 0.90 7 6 0.36 4 4 0.31 3 3 0.24 2 1 1 1 0.24 1 1 1 0 0 0 0.10 0.10 0.10 0.06 0.00 0.05 0.05 0.05 0.05 0.00 0.05 0.00 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 FY 19 FY 20 FY 19 FY 20 FY 19 FY 20 Work Rel
Slide 38: KPCL: Provides an opportunity to APSEZ to repeat performance
Debt Presentation | February 2020 KPCL: Provides an opportunity to APSEZ to repeat performance Development Operations Post Operations Phase Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisition Engineering & design Life cycle O&M intelligence planning Co
Slide 39: Disclaimer
Debt Presentation | February 2020 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 (“AP
Slide 40: Thank You
dani Ports and Logistics Thank You
Adani Ports and Special Economic Zone — JP Morgan Debt Conference 2020 on 6ix