Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS

Adani Ports & Special Economic Zone — Q3 FY23 Earnings Presentation

61 slides from Adani Ports & Special Economic Zone's earnings presentation, January 2023

  1. Slide 1: Operational & Financial Highlights – 9M FY23

    Operational & Financial Highlights – 9M FY23 Adani Ports and SEZ Ltd.

  2. Slide 2: Table of Contents

    Table of Contents A Adani Portfolio Overview B APSEZ Company Profile C Strategic, and Operational Highlights 9M FY23 D Financial Highlights 9M FY23 E ESG Highlights F Annexures 2

  3. Slide 3: A Group Profile

    A Group Profile STRICTLY CONFIDENTIAL

  4. Slide 4: Adani: A World Class Infrastructure & Utility Portfolio

    Adani: A World Class Infrastructure & Utility Portfolio Flagship Infrastructure & Utility Core Portfolio Primary Industry Emerging B2C Materials, Metal & Incubator Energy & Utility Transport & Logistics Direct to consumer Mining (72.6%) (60.8%) (74.2%) (65.1%) (100%) (63.2%) AGEL ATL APSEZ1 AEL NQXT

  5. Slide 5: Adani Portfolio: Decades long track record of industry best growth

    Adani Portfolio: Decades long track record of industry best growth with national footprint Secular growth with world leading efficiency National footprint with deep coverage Growth 3x Growth 5x Core Portfolio EBITDA 70% 1,2 EBITDA 92% 1,4 Utility 92% Transport 85% Consumers ~400 mn Served AEL Growth

  6. Slide 6: Adani Portfolio: Repeatable, robust & proven transformative model

    Adani Portfolio: 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

  7. Slide 7: B APSEZ: Company Profile

    B APSEZ: Company Profile STRICTLY CONFIDENTIAL

  8. Slide 8: APSEZ: Transformational Business Model

    APSEZ: Transformational Business Model Ports Logistics SEZ • National footprint with 13 ports • Largest integrated logistics player in • Large scale ‘ready to setup’ industrial across the coastline, de-risks the India land (SEZ) Development portfolio of concentration risk. • Rail, MMLPs, Warehousing

  9. Slide 9: 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 Installed Capacity Installed Capacity ~355 MMT ~225 MMT thirteen Dahej Moga 16 Kanech Kotkapura MMT Kilaraipur Kaithal Panipat Dhamora Tuna 14 Patli Kannauj Samastipur & MMT Darbhanga Kishangarh Mu

  10. Slide 10: Logistics to provide growth impetus & help reaching customer's gate

    APSEZ: Logistics to provide growth impetus & help reaching customer's gate Trains MMLPs Grain Silos Ware-housing Rail Tracks Assets 58 5 0.88 0.4 mn 540 FY20 Trains MMLP MMT Sq. ft. KMs 87 9M Trains 9 1.1 1.5 mn 620 FY23 (76 more MMLP MMT Sq. ft. KMs getting added) 2.5X 1.7X 2.5X 40X 3X 200+Trains 1

  11. Slide 11: C Strategic, and Operational Highlights 9M FY23

    C Strategic, and Operational Highlights 9M FY23 STRICTLY CONFIDENTIAL

  12. Slide 12: Strategic Highlights– 9M FY23 (Ports & SEZ)

    APSEZ: Strategic Highlights– 9M FY23 Ports & SEZ • Acquisition of four strategic assets that are key milestones in our journey towards becoming the transport utility - • Haifa Port Company, the operator of Israel’s largest port, at an implied EV/ EBITDA multiple of 7.5x • Indian Oiltanking Limited (

  13. Slide 13: Strategic Highlights– 9M FY23 (Logistics)

    APSEZ: Strategic Highlights– 9M FY23 Logistics • MMLPs: ✓ Integration of ICD “Tumb” with Adani Logistics, one of largest ICD in India with a capacity of 0.5 MTEUs ✓ Taloja MMLP became operational during the year ✓ ALL shortlisted as the H1 bidder for Loni ICD and Valvada ICD • Warehouses: ✓ Added wa

  14. Slide 14: Operational Highlights– 9M FY23

    APSEZ: Operational Highlights– 9M FY23 Ports • APSEZ handled ~24% of India’s total cargo volumes during 9M FY23, and continues to be India’s largest port company and the country’s largest transport utility • APSEZ cargo volume grew 8% Y-o-Y to 252.9 MMT, led by dry cargo (+14%) and containers (+5%)

  15. Slide 15: Robust growth with diversification – 9M FY23

    APSEZ: Robust growth with diversification – 9M FY23 (YoY) 9M FY22 9M FY23 APSEZ Cargo volume East Coast Volume Non Mundra Volume 8% 11% 12% 234.31 252.90 88.42 98.16 121.51 135.94 MMT MMT MMT MMT MMT MMT ASPEZ Container volume West Coast Volume Mundra Volume 2% 6% 4% 6.16 mn 6.31 mn 145.89 154.74 11

  16. Slide 16: Marginal growth with diversification – Q3 FY23

    APSEZ: Marginal growth with diversification – Q3 FY23 (YoY) Q3 FY22 Q3 FY23 APSEZ Cargo volume East Coast Volume Non Mundra Volume 1% 7% 7% 74.40 75.43 26.64 28.49 37.28 39.84 MMT MMT MMT MMT MMT MMT ASPEZ Container volume West Coast Volume Mundra Volume 2% 2% 4% 2.05 mn 2.08 mn 47.76 46.94 37.12 35

  17. Slide 17: Mitigating concentration risk – cargo volume distribution

    APSEZ: Mitigating concentration risk – cargo volume distribution 9M FY23 38% 39% 39% 40% East Coast vs West Coast Share 62% 61% 61% 60% 9M FY22 9M FY23 9M FY22 9M FY23 APSEZ All India West Coast East Coast 9M FY22 9M FY23 48% 46% Mundra vs Non Mundra Share 52% 54% Mundra Non-Mundra Mundra Non-Mundra

  18. Slide 18: Diversifying cargo portfolio

    APSEZ: Diversifying cargo portfolio 41% 43% 41% 41% 38% 37% 37% 38% 36% 33% 33% 32% 33% 32% 17% 13% 13% 12% 13% 12% 15% 13% 11% 11% 11% 8% 9% 6% 3% 3% 2% 3% 3% 3% 3% 1% 1% 0% 0% FY17 FY18 FY19 FY20 FY21 FY22 9M FY23 Dry (Coal) Dry (Non Coal) Liquid (excl Crude) Crude Gas Container 18

  19. Slide 19: Balanced growth across ports – Q3 FY23

    APSEZ: Balanced growth across ports – Q3 FY23 • Growth at Krishnapatnam was driven by coal and container cargo • Growth at Kattupalli was driven primarily by container cargo • Growth at Dahej was primarily driven by coal cargo • Volumes at Gangavaram Port and Hazira Port were flat Y-o-Y • Mundra and

  20. Slide 20: Balanced growth across ports – 9M FY23

    APSEZ: Balanced growth across ports – 9M FY23 • Almost all ports had a Y-o-Y growth in volumes • Growth at Mundra was primarily contributed by coal and agri • Growth at Dahej was majorly contributed by coal, followed by minerals • Growth at Kattupalli was contributed by containers • Growth at Krishn

  21. Slide 21: Balanced growth across cargo type – Q3 FY23

    APSEZ: Balanced growth across cargo type – Q3 FY23 • Growth primarily driven by coal and container cargo types • Decline was seen in crude and other dry cargo types 21

  22. Slide 22: Balanced growth across cargo type – 9M FY23

    APSEZ: Balanced growth across cargo type – 9M FY23 • Growth primarily driven by coal, agri and container cargo types • Decline was seen in steel, minerals and crude cargo • Container volumes grew primarily on account of volume jump at Ennore and Kattupalli 22

  23. Slide 23: Sticky cargo ensures resilience

    APSEZ: Sticky cargo ensures resilience 312 64% 62% 58% 59% 54% 253 247 56% 49% 223 208 180 • Sticky cargo constitutes ~54% of 169 155 total cargo with a higher base 138 136 131 121 108 111 • 70% of sticky cargo at Mundra Port • Container constitutes 45% and liquid 12% of total sticky cargo FY17 FY18

  24. Slide 24: D Financial Highlights Q3 & 9M FY23

    D Financial Highlights Q3 & 9M FY23 STRICTLY CONFIDENTIAL

  25. Slide 25: Financial performance – Q3 FY23

    APSEZ: Financial performance – Q3 FY23 (in INR Cr) Q3 FY22 Q3 FY23 Particulars Revenue EBITDA^ PAT# Revenue EBITDA^ PAT# APSEZ Consolidated* 4,072 2,612 1,535 4,786 3,011 1,337 JVs AICTPL (CT-3), JV with MSC 341 184 91 359 206 60 ACMTPL (CT-4), JV with CMA-CGM 163 93 32 189 111 29 Total 4,576 2,889

  26. Slide 26: Financial performance – 9M FY23

    APSEZ: Financial performance – 9M FY23 (in INR Cr) 9M FY22 9M FY23 Particulars Revenue EBITDA^ PAT# Revenue EBITDA^ PAT# APSEZ Consolidated* 12,978 8,026 3,842 15,055 9,562 4,252 JVs AICTPL (CT-3), JV with MSC 986 527 185 1,115 582 85 ACMTPL (CT-4), JV with CMA-CGM 456 262 72 556 321 41 Total 14,420

  27. Slide 27: Key segment wise Operating revenue & EBITDA – Q3 FY23

    APSEZ: Key segment wise Operating revenue & EBITDA – Q3 FY23 (YoY, in INR Cr) Ports Logistics 3,936 71% 70% 490 3,431 29% 26% 2,737 2,427 299 142 79 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Revenue EBIDTA EBIDTA (%) Revenue EBIDTA EBIDTA (%) SEZ & Port Development O&M 12% 169 72% 10% 124 64% 108 90 157 167 1

  28. Slide 28: Key segment wise Operating revenue & EBITDA – 9M FY23

    APSEZ: Key segment wise Operating revenue & EBITDA – 9M FY23 (YoY, in INR Cr) Ports Logistics 12,903 1,211 71% 70% 10,595 29% 8,973 25% 845 7,473 354 214 9M FY22 9M FY23 9M FY22 9M FY23 Revenue EBIDTA EBIDTA (%) Revenue EBIDTA EBIDTA (%) SEZ & Port Development O&M 10% 890 9% 48% 501 460 29% 380 261

  29. Slide 29: Debt Profile – 9M FY23

    APSEZ: Debt Profile – 9M FY23 (YoY, in INR Cr) Gross Debt, Net Debt & Average Maturity Strong Cashflow from Operations 45,453 45,534 7.0 42,750 39,277 35,817 31,666 6.2 6.0 Mar'2022 Sep'2022 Dec'2022 Net Debt Gross Debt Average Maturity (years) Net Debt to EBITDA 4.4 3.4 3.3 3.0 2.9 3.2 • Strong int

  30. Slide 30: Key ratios 9M – FY23

    APSEZ: Key ratios 9M – FY23 Rating Ratios^ Debt Maturity Profile 25% 25% 22% 23% 22% 18% Rupee Debt Foreign Debt Foreign Debt Year Total Debt (in Rs Cr) 5.4 (in Rs Cr) (in Rs Cr) Repayment Details 5.1 4.5 FY 22-23 191 - 191 FY 23-24 1,946 293 2,239 EUR 5 mn USD 650 mn bond in FY 24-25 2,190 5,916 8,

  31. Slide 31: Port wise returns

    APSEZ: Port wise returns 48% 23% 21% 19% 19% 20% 15% 16% 16% 16% 11% 11% 12% 11% 8% 9% Terminals 7% 5% 3% 2% 3% 2% 3% Mundra Hazira Dahej Dhamra Kattupalli Krishnapatnam Gangavaram Logistics -2% -5% ROCE FY21 ROCE FY22 ROCE H1 FY23 • ROCE continuously improving at matured ports with better capacity

  32. Slide 32: FY24 Guidance

    APSEZ: FY24 Guidance FY23 Guidance FY24 Guidance Rs 12,200 Cr – Rs 12,600 Cr EBITDA Rs 14,500 Cr – Rs 15,000 Cr Rs 8,600 Cr Capex Rs 4,000 Cr – Rs 4,500 Cr 3.0-3.5x Net Debt to EBITDA ~2.5x 32

  33. Slide 33: FY24 Guidance: Movement in Net Debt

    APSEZ: FY24 Guidance Movement in Net Debt during FY24 * 4,000 – 4,500 (14,500 – 15,000) Cash Surplus generated through operations during FY24 would be used to re-pay / pre-pay loans of Rs 5,000 Cr, resulting in reduction of Net Debt to EBITDA ratio to ~2.5x 33 *Estimated Net Debt as of 31st Mar’23

  34. Slide 34: E ESG Highlights

    E ESG Highlights STRICTLY CONFIDENTIAL

  35. Slide 35: ESG Indicators: progress vs. targets

    ESG Indicators: progress vs. targets Indicator FY25 Target Till FY22 End Status: 9M FY23 Energy & Emission RE share in total electricity* 100% 20% 13% Energy intensity reduction* 50% 38% 41% Emission intensity reduction* 60% 45% 41% Water and Waste Water consumption intensity reduction* 60% 58% 56%

  36. Slide 36: Progress on initiatives

    APSEZ: Progress on initiatives ESG • Plan for renewable capacity of 250 MW on a captive basis is being formalised • E-ITV’s induction commenced at Ennore, Kattupalli, Hazira and Mundra with 304 no’s of E-ITVs while remaining 34 no’s are expected to be delivered by Mar’23. • Electrification of equipm

  37. Slide 37: ESG ranking & awards

    APSEZ: ESG ranking & awards • Moody’s ESG solutions has accorded first position to APSEZ in the global rankings for “Transport & Logistics” sector among emerging markets (Oct-22). • APSEZ’s ranks 1st among 59 Indian companies, and 9th rank among 844 companies in the Emerging Markets globally across

  38. Slide 38: F Annexures

    F Annexures STRICTLY CONFIDENTIAL

  39. Slide 39: Risk Management Approach

    APSEZ: Risk Management Approach (in INR Cr) • During the last quarter, the Company has reassessed its risk management approach towards foreign currency exposure • The Company has a natural hedge on FX i.e., dollar linked in flows to meet dollar debt outflows • We have adopted a mix of active hedging

  40. Slide 40: Port wise cargo and financial details

    Port wise cargo and financial details STRICTLY CONFIDENTIAL

  41. Slide 41: Mundra port - volume and financials Q3 FY23

    APSEZ: Mundra port - volume and financials Q3 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA  EBITDA Margin Q3 FY22 4% Q3 FY23 1,452 67% 1,210 6.9 5.8 6.1 5.4 979 816 37 36 24.4 24.0 Dry Container Liquid (Inc Crude) Dry Container Liquid (Inc Crude) Revenue EBITDA Q3 FY 22 Q3 FY 23 • Cargo volu

  42. Slide 42: Mundra port - volume and financials 9M FY23

    APSEZ: Mundra port - volume and financials 9M FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA* EBITDA Margin 9M FY22 4%  9M FY23 4,153 65% 3,511 19.8 21.4 19.5 24.2 2,696 2,336 113 117 71.5 73.1 Dry Container Liquid (Inc Crude) Dry Container Liquid (Inc Crude) Revenue EBITDA 9M FY 22 9M FY 23 •

  43. Slide 43: Krishnapatnam port - volume and financials Q3 FY23

    APSEZ: Krishnapatnam port - volume and financials Q3 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA Port EBITDA 482 Margin 65% Q3 FY22 Q3 FY23 20%  416 0.2 0.4 0.6 0.4 315 266 9 10 8.0 9.2 Revenue EBITDA Dry Container Liquid Dry Container Liquid Q3 FY22 Q3 FY23 • Increase in coal volumes led t

  44. Slide 44: Krishnapatnam port - volume and financials 9M FY23

    APSEZ: Krishnapatnam port - volume and financials 9M FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA^^ Port EBITDA 9M FY22 9M FY23 1,680 Margin 67% 15%  1.2 1,412 2.2 1.0 1.1 1,128 987 31 35 27.4 33.2 Dry Container Liquid Dry Container Liquid Revenue EBITDA 9M FY22 9M FY23 • Increase in coal vo

  45. Slide 45: Dhamra port - volume and financials Q3 FY23

    APSEZ: Dhamra port - volume and financials Q3 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA EBITDA Margin 14% ↓ 386 66% Q3 FY23 360 Q3 FY22 0.3 1.1 246 237 8 7 7.1 6.7 Dry Liquid Dry Liquid Revenue EBITDA Q3 FY 22 Q3 FY 23 • Cargo volumes decreased across segments • EBITDA margin improved to 6

  46. Slide 46: Dhamra port - volume and financials 9M FY23

    APSEZ: Dhamra port - volume and financials 9M FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA* EBITDA Margin 4% ↓ 64% 1,193 1,196 9M FY22 9M FY23 3.1 1.2 770 726 25 24 22.0 22.9 Dry Liquid Dry Liquid Revenue EBITDA 9M FY 22 9M FY 23 • Coal volumes increased however was offset by reduction in min

  47. Slide 47: Hazira port - volume and financials Q3 FY23

    APSEZ: Hazira port - volume and financials Q3 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA EBITDA Margin Q3 FY22 Q3 FY23 Flat Y-o-Y 400 402 72% 1.3 1.4 305 291 2.6 2.5 6 6 2.2 2.3 Dry Container Liquid Dry Container Liquid Revenue EBITDA Q3 FY 22 Q3 FY 23 • Volumes during the quarter were flat

  48. Slide 48: Hazira port - volume and financials 9M FY23

    APSEZ: Hazira port - volume and financials 9M FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA EBITDA Margin 9M FY22 9M FY23 1,267 74% 1%  1,167 3.1 3.7 933 879 8.7 8.9 19 19 7.1 6.5 Dry Container Liquid Dry Container Liquid Revenue EBITDA 9M FY 22 9M FY 23 • Volumes increased for dry and liquid

  49. Slide 49: Dahej port - volume and financials Q3 FY23

    APSEZ: Dahej port - volume and financials Q3 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA EBITDA Margin 14%  62% 120 Q3 FY22 Q3 FY23 101 0.6 0.7 74 64 2 2 1.2 1.5 Coal Other Dry Cargo Coal Other Dry Cargo Revenue EBITDA Q3 FY 22 Q3 FY 23 • Increased coal cargo volumes led to growth in port v

  50. Slide 50: Dahej port - volume and financials 9M FY23

    APSEZ: Dahej port - volume and financials 9M FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA EBITDA Margin 50%  68% 484 9M FY22 9M FY23 1.9 329 1.8 317 207 6 9 4.2 7.1 Revenue EBITDA Coal Other Dry Cargo Coal Other Dry Cargo 9M FY 22 9M FY 23 • Growth in coal and minerals cargo led to increase

  51. Slide 51: Kattupalli port - volume and financials Q3 FY23

    APSEZ: Kattupalli port - volume and financials Q3 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA 72%  EBITDA Margin Q3 FY22 77 60% Q3 FY23 0.1 0.2 0.1 0.2 48 46 2 3 25 1.4 2.6 Dry Container Liquid Dry Container Liquid Revenue EBITDA Q3 FY 22 Q3 FY 23 • Container cargo has increased due to addi

  52. Slide 52: Kattupalli port - volume and financials 9M FY23

    APSEZ: Kattupalli port - volume and financials 9M FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA 70%  EBITDA Margin 214 58% 9M FY22 9M FY23 0.3 0.3 0.6 0.4 140 124 5 9 69 4.3 7.7 Dry Container Liquid Dry Container Liquid Revenue EBITDA 9M FY 22 9M FY 23 • Container cargo has increased due to a

  53. Slide 53: Terminals at major ports & Dighi - Q3 FY23

    APSEZ: Terminals at major ports & Dighi - volume & financials Q3 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA 127 EBITDA Margin 10%  118 15% Q3 FY22 Q3 FY23 0.01 0.00 1.8 1.8 4 5 2.6 3.1 32 20 Dry Container Liquid Dry Container Liquid Revenue EBITDA Q3 FY 22 Q3 FY 23 • Volume increase is pri

  54. Slide 54: Terminals at major ports & Dighi - 9M FY23

    APSEZ: Terminals at major ports & Dighi - volume & financials 9M FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA 431 EBITDA Margin 20%  27% 9M FY22 9M FY23 343 0.04 0.03 5.2 6.3 13 16 118 9.6 79 8.1 Revenue EBITDA Dry Container Liquid Dry Container Liquid 9M FY 22 9M FY 23 • Volume increase is

  55. Slide 55: Gangavaram port - volume & financials Q3 FY23

    APSEZ: Gangavaram port - volume & financials Q3 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA 306 EBITDA Margin Q3 FY22 1%  Q3 FY23 280 61% 181 186 2.2 2.3 6 6 4.3 4.2 Revenue EBITDA Coal Other Coal Other Q3 FY 22 Q3 FY 23 • Marginal increase in cargo volume is due to increase in iron ore vol

  56. Slide 56: Gangavaram port - volume & financials 9M FY23

    APSEZ: Gangavaram port - volume & financials 9M FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA EBITDA Margin 6%  1,158 65% 9M FY22 9M FY23 899 755 9.0 8.4 598 22 24 13.3 15.3 Revenue EBITDA Coal Other Coal Other 9M FY 22 9M FY 23 • Increase in cargo volume is due to increase in coal volumes wh

  57. Slide 57: Adani Logistics and Harbour services- financials Q3 FY23

    APSEZ: Adani Logistics and Harbour services- financials Q3 FY23 (YoY, in INR Cr) Logistics Harbour Services EBITDA Margin EBITDA Margin 86% 490 29% 591 509 442 299 387 142 79 Revenue EBITDA Revenue EBITDA Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 • Logistics revenue increased on account of higher rail • Reven

  58. Slide 58: Adani Logistics and Harbour services- financials 9M FY23

    APSEZ: Adani Logistics and Harbour services- financials 9M FY23 (YoY, in INR Cr) Logistics Harbour Services EBITDA Margin EBITDA Margin 86% 29% 1,811 1,211 1,565 1,368 845 1,180 354 214 Revenue EBITDA Revenue EBITDA 9M FY22 9M FY23 9M FY22 9M FY23 • Logistics revenue increased on account of higher r

  59. Slide 59: Consolidated financial performance – SEBI format

    APSEZ: Consolidated financial performance – SEBI format 59

  60. Slide 60: Thank You

    Thank You Details Annexed in Linked File 1. Port-wise Cargo Volume Break up 9M FY23 2. Ports and Logistics Vertical Key Financial Performance 9M FY23 Please open the file in PDF reader and double click on the icon to open -

  61. Slide 61: 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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