Adani Enterprises Limited · NSE:ADANIENT
Adani Enterprises — Investor Presentation (May 2024)
65 slides from Adani Enterprises's investor presentation, May 2024
Slide 1: Adani Enterprises Limited (AEL) Investor Presentation
Adani Enterprises Limited (AEL) Investor Presentation April – May 2024
Slide 2: Table of Contents
Table of Contents I. Introduction to Adani II. Introduction to Adani Enterprises Limited (AEL) III. Core Growth Businesses a) ANIL: Adani New Industries b) Adani Airports Holdings Limited c) AdaniConnex (Data Centre) d) Adani Roads Transport Limited IV. Emerging Digital Business (Digital Labs) V. Ot
Slide 3: I. Introduction to Adani
adani |. Introduction to Adani
Slide 4: Adani Portfolio: Decades long track record of industry best growth
Adani Portfolio: Decades long track record of industry best growth Introduction to the Adani Franchise Key Group Highlights ▪ Founded by Gautam Adani in 1988, the Adani Group, India's fastest growing corporate with Largest renewables platform in India Largest private T&D company in India businesses
Slide 5: Adani Portfolio: The evolution of the business
Adani Portfolio: The evolution of the business E VO LUT IO N O F T H E A DA N I GROUP IN INDIA Establishing Adani Exports ▪ Adani Exports Limited started as a Establishing Ports Business commodity trading company in 1988 ▪ In 1990, after establishing the trading business, the Adani Group developed i
Slide 6: Adani Portfolio: A World class infrastructure & utility portfolio
Adani Portfolio: A World class infrastructure & utility portfolio Flagship Infrastructure & Utility Core Portfolio Primary Industry Emerging B2C Incubator Energy & Utility Transport & Logistics Materials, Metal & Mining Direct to consumer (72.6%) (56.4%) (73.2%) (65.9%) (100%) (63.2%) AGEL AESL APSE
Slide 7: Adani Portfolio: Decades long track record of industry leading growth rates
Adani Portfolio: Decades long track record of industry leading growth rates across sectors Secular growth with world leading efficiency National footprint with deep coverage Growth 3x 6 Growth 4x 6 EBITDA 70% 1,2 EBITDA 92% 1,4 AEL Growth 3x 6 APSEZ Growth 1.4x 6 Adani’s Core Infra. Platform – AGEL
Slide 8: Adani Portfolio: A unique business of scale in India with unrivalled execution capabilities
Adani Portfolio: A unique business of scale in India with unrivalled execution capabilities The Growth of India India’s Growth to Remain Resilient Despite Global Challenges ▪ The World Bank's India Development Update notes India's resilience in a tough global environment, maintaining strong economic
Slide 9: Adani Portfolio: Repeatable, robust & proven transformative model of investment
Adani Portfolio: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Center of Excellence Project Management & Assurance Group AIMSL1 Policy -Strategy - Risk Site Origination Construction Operation Capital Management Development ▪ Engineering &
Slide 10: Adani Portfolio: Best-in-class management team with decades of experience
Adani Portfolio: Best-in-class management team with decades of experience Select Management Accomplishments Largest renewables Largest private airport 11 publicly listed c.10 GW of renewables Transformed Mundra Portfolio market cap business in India with networks operator in companies on BSE & pipel
Slide 11: Adani Portfolio: Best-in-class management team (Cont'd)
Adani Portfolio: Best-in-class management team with decades of experience (Cont’d..) Key Business Line Leaders Karan Adani: MD – Adani Ports (APSEZ) ▪ Mr. Karan Adani has successfully steered the growth strategy of APSEZ resulting in its rapid expansion from two ports to a string of ten ports and te
Slide 12: II. Introduction to Adani Enterprises Limited (AEL)
II. Introduction to Adani Enterprises Limited (AEL)
Slide 13: AEL: Adani portfolio's incubator arm
AEL: Adani portfolio’s incubator arm Business Philosophy Past Incubation Success Stories: Creating Decacorns FY23 Demerger Market Cap EBITDA ▪ The flagship company of the Adani Group has been driven by the Company Overview EBITDA Year ($bn) (5Y CAGR) philosophy of incubating stellar infrastructural
Slide 14: AEL: Adani portfolio's flagship subsidiary
AEL: Adani portfolio’s flagship subsidiary (%): AEL equity stake in its subsidiaries Adani Enterprises Incubator dedicated to nurturing a wide range of businesses, Limited spanning from core infrastructure to digital ventures Strategic Business Units Emerging Digital Other Business Core Growth Busin
Slide 15: AEL: Growth profile of incubating businesses
AEL: Growth profile of incubating businesses Core Segment Business Unit Growth Targets Description Scale ▪ New Industries: ▪ New Industries: Decarbonization of industrial and mobility through green hydrogen; 6 ▪ New Industries: Integrated Green GW manufacturing ecosystem of cell module line underway
Slide 16: AEL: A successful incubator
AEL: A successful incubator Attractive Incubation Record Green Hydrogen Ecosystem Business Models Strong incubation record Manufacturing eco-system for generating B2B Model low-cost green hydrogen Development ANIL Ecosystem, Data Center, Roads Year 2015 > APSEZ, APL & AESL B2C Model Ingots, cells, m
Slide 17: AEL: Best-in-class industry experts managing AEL
AEL: Best-in-class industry experts managing AEL Gautam Adani: Executive Chairman, Adani Group Rajesh Adani: MD, Adani Enterprises ▪ Founder and Chairman of the Adani Group, ▪ Vital part of the Adani group since its Key Sponsors which ranks among the top 3 industrial inception, heading the Group’s p
Slide 18: III. Core Growth Businesses
III. Core Growth Businesses 18
Slide 19: IIIa. ANIL (Adani New Industries Ltd)
IIIa. ANIL (Adani New Industries Ltd) 19
Slide 20: ANIL: Full capabilities across the green H2 vertical
ANIL: Full capabilities across the green H2 vertical resulting in a top-of-merit ecosystem ▪ ANIL has three primary business segments: the manufacturing of supply chain products, production of green hydrogen, and manufacturing of downstream products including ammonia, urea, and methanol ▪ This compr
Slide 21: ANIL: Green Hydrogen and its massive potential to decarbonize industries
ANIL: Green Hydrogen and its massive potential to decarbonize industries End Use Sectors Green Hydrogen Market (MMT) Key Drivers 1.85 − Green H2 consumption by existing refining capacity in line with expected policy Refinery Demand 0.78 from GoI (National Hydrogen Energy mission) 0.13 − New Refinery
Slide 22: ANIL: Designed to win in the Green Hydrogen market
ANIL: Designed to win in the Green Hydrogen market What it takes to win How we are delivering it 1 1Lowest cost Green Electron Large scale with high quality resources − Input power cost accounts for majority of cost − Investment of USD 50 bn by 2030 in the of Green Hydrogen Green Hydrogen ecosystem
Slide 23: ANIL: Adani's unique value proposition to capture hydrogen market share
ANIL: Adani’s unique value proposition to capture hydrogen market share Adani’s unique ability to control the costs of supply places it at the forefront of the global merit curve, both capturing market share and accelerating the expansion of that market through the production of fuel that is cost co
Slide 24: ANIL: Adani's unique value proposition to capture hydrogen market share
ANIL: Adani’s unique value proposition to capture hydrogen market share ▪ ANIL’s fully-integrated green hydrogen ecosystem with complete supply chain control will produce H2 at a fraction of the cost of other domestic production facilities – Adani’s Hub in Gujarat has an immense renewable potential
Slide 25: ANIL: Side by side comparison against peer group's hydrogen strategies
ANIL: Side by side comparison against peer group’s hydrogen strategies Company ANIL Company HQ Company - 16.6x 2.5x 1.4x 3.9x 3.0x EV/EBITDA’23 ▪ Building largest integrated ▪ NEOM Green Hydrogen ▪ UK: H2Teesside (blue H2, ▪ H2M Eemshaven (blue H2, ▪ EU: *NortH2, Holland ▪ Decarbonising Normandy Gre
Slide 26: ANIL: Manufacturing ecosystem poised to in-house all components
ANIL: Manufacturing ecosystem poised to in-house all components for Green Hydrogen manufacturing Key components of the project which is to be executed for 1.0 MMTPA Green Hydrogen ecosystem include: Green Ammonia Hybrid RE Electrolyzer for Green Green H2 H2 Pipeline Green Ammonia Offtake(1) / Green
Slide 27: ANIL: The largest integrated Green Hydrogen hub in the world at Mundra SEZ
ANIL: The largest integrated Green Hydrogen hub in the world at Mundra SEZ … And backed by credible Full suite of Hydrogen offerings … … For multiple end uses including substantial captive use in Adani Portfolio businesses … action on ground 1 5 RE capacity directly ~50 GW Green Fertilizers Steel, P
Slide 28: ANIL: Mundra SEZ is strategically located with well-developed supporting infrastructure
ANIL: Mundra SEZ is strategically located with well-developed supporting infrastructure Land Availability Multi modal connectivity Supporting infrastructure Power Supply and Connectivity − Renewable generation cluster at a site identified in Gujarat (~150 km from Mundra) − 4,620 MW Power Plant withi
Slide 29: ANIL: Key valuation drivers for ANIL
ANIL: Key valuation drivers for ANIL Key Business Drivers for ANIL and its Competitive Advantage vs. Peers Replication and Regional and Team and Strategy Cost Advantage Offtake Advantage ESG premium Growth Premium Platform Strategic Location Geographical Support Building a platform of ANIL’s ANIL is
Slide 30: ANIL: ANIL ecosystem business highlights
ANIL: ANIL ecosystem business highlights Solar Manufacturing ▪ 4 GW of Cell & Module manufacturing capacity ▪ Module export sales increased by 168% to 1.2 GW 9M FY24 ▪ Total module sales, including domestic sales, increased by 96% to 1.9 GW 9M FY24 ▪ India’s first wafer produced, commissioning of pl
Slide 31: IIIb. Adani Airport Holdings Limited
IIIb. Adani Airport Holdings Limited (Transport & logistics business of Adani Enterprises)
Slide 32: AAHL: Key highlights
AAHL: Key highlights ▪ Adani Airport Holdings Limited (AAHL), a subsidiary of Adani Enterprise Limited (AEL), is India’s largest airport infrastructure platform, with seven operating airports (Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Trivandrum) and one greenfield airport (Navi Mu
Slide 33: Indian Aviation Market: Strong growth indicators
Indian Aviation Market: Strong growth indicators India – Fastest growing aviation market over last decade… ...with strong indicators of future growth Passengers (mn)(1) CAGR (2018-40) – Top 10 fastest growing Asia Pacific aviation markets by passenger 1. Vietnam 2. India 4. Philippines 5. Indonesia
Slide 34: AAHL: Planned privatisation of new airports presents an attractive growth opportunity
AAHL: Planned privatisation of new airports presents an attractive growth opportunity ▪ Government of India has launched a National Monetization Pipeline (NMP) for monetization of brownfield infrastructure assets of aggregate value of US$ 72bn(1) Dharamsala Amritsar ▪ As part of NMP, 25 AAI airports
Slide 35: AAHL: Integrated airport network
AAHL: Integrated airport network Diversified Portfolio of Scale Integrated Airport Network Regional Airports International Gateway AAHL Operational Greenfield Mumbai Ahmedabad Lucknow Mangaluru Guwahati (MIAL) Jaipur Lucknow 5.1 Mn 4.8 Mn 5.2 Mn Navi Mumbai Jaipur Guwahati Trivandrum Ahmedabad 10.1
Slide 36: AAHL: Large platform in fastest growing aviation market
AAHL: Large platform in fastest growing aviation market Strong Fundamentals Robust Business Philosophy Passengers ▪ India – fastest growing aviation ▪ Business philosophy centred on market the ‘Airport Economic Precinct’ 60 Mn – Domestic ▪ Non-Aero spend per pax lower ▪ Transform consumer experience
Slide 37: AAHL: Diversified revenue streams
AAHL: Diversified revenue streams 1 Aero Revenue 2 Non-Aero Revenue 3 Real Estate Monetisation Regulated Revenue Passengers Non-Passengers Unregulated Revenue Unregulated Revenue RAB Planning Route Development Integrated Real estate development strategy Terminal Passenger Flow Ground Handling Fuel F
Slide 38: AAHL: Aero Strategy
AAHL: Aero Strategy Focussed on route development and stakeholder management to sweat airport assets to the fullest – Focus on smart planning of airside and terminals Long term economic alignment with all – Efficient and sustainable design 1 stakeholders Capacity Creation – Leveraging group's execut
Slide 39: AAHL: Non-aero Strategy
AAHL: Non-aero Strategy AAHL non aero strategy designed to increase footfalls and provide high quality services through strategic partnerships with reputed third parties – Develop new channels for sales (airport e-commerce) – Focus on increasing area for monetization both Increase – Anticipating con
Slide 40: AAHL: Business updates
AAHL: Business updates Portfolio of 8 Airports - Serving ~ 23% of total passenger base Updates Pax (Mn) ATM (‘000) 450.0 394.9 14% 65.7 53.4 23% 160.2 23.0 142.0 20.3 148.2 Lucknow Guwahati 21.4 126.9 16.3 Jaipur 5.2 Mn 5.1 Mn Q3 126.0 141.6 16.8 21.3 4.8 Mn Q2 Q1 9M-23 9M-24 9M-23 9M-24 Ahmedabad 1
Slide 41: Benchmarking AAHL: Regulatory Regime
Benchmarking AAHL: Regulatory Regime Key Points ▪ Immediate upside for Adani as India’s airports Regulatory market undergo initial Country privatisation, with Adani poised to capture market share Int’l Airports 11.0 36.0 36.0 18.0 31.0 34.0 ▪ Huge market Economic Regulation Dual Till Dual Till Dual
Slide 42: Benchmarking AAHL: Operational and Financial KPIs
Benchmarking AAHL: Operational and Financial KPIs Key Points ▪ Market opportunity Operational KPIs given India’s favourable tailwinds further 46.7 +268.4% 29.1 39.5 20.0+133.5% 104.2 +43.5% 149.5 120.0+103.1% 243.7 160.2+75.0% 280.4 22.7 +74.0% supported by Adani’s Passengers (2021-22) 7.9 positioni
Slide 43: IIIc. AdaniConneX
IIIc. AdaniConneX (Data Centre – 50:50 JV of Adani & Edge connex)
Slide 44: AdaniConneX: JV philosophy
AdaniConneX: JV philosophy Combining the assets and expertise of two of the world’s leading infrastructure providers to deliver new digital infrastructure solutions and premium technology services to the Indian market Largest Private Infrastructure and Energy A Large, Global, Private Data Center Pro
Slide 45: AdaniConneX: Future goals/experience & proven capabilities
AdaniConneX: Future goals/experience & proven capabilities Renewable Power – Powered with Green energy & offering carbon neutral solutions Hyperscale Campuses (20+ MWs) – Large data centre campuses in key Indian markets that can support major cloud requirements World Class Data Edge Data Centers: 2-
Slide 46: AdaniConneX: Data center markets
AdaniConneX: Data center markets Empowering Digital India with a Platform of Hyperscale to Hyperlocal Data Center Solutions Hyperscale Hyperlocal Focused on developing and operating new data centers in multiple markets Will develop strategically-placed Edge Data Centers and Far Edge facilities, crea
Slide 47: AdaniConneX: Existing portfolio
AdaniConneX: Existing portfolio Adani* EdgeConnex** AdaniConnex*** JV Co + OpCo Chennai DC1 17 MW (Multi Tenant / Operational since Oct 2022) DC Development Noida DC Development Pune Data Center Pune Data Center Two Support Properties Noida Data Center Noida Data Center Ltd Hyderabad Ltd (DCDHL) Ltd
Slide 48: AdaniConneX: Business updates
AdaniConneX: Business updates Empowering Digital India with a Platform of Data Center Status Solutions with Strong Partnership Chennai 33 • Phase I 17 MW Operational MW Noida 50 Noida • Overall completion ~74% > 50 MW Core & Shell + 10 MW MEP MW Hyderabad 48 Ahmedabad • Completion ~85% > Phase I of
Slide 49: AdaniConneX: Data center comparables
AdaniConneX: Data center comparables ▪ Wholesale (Turnkey) ▪ Wholesale (Turnkey) ▪ Wholesale (Powered ▪ Wholesale (Turnkey) ▪ Wholesale (Turnkey) ▪ Wholesale (Powered ▪ Wholesale (Turnkey) ▪ Wholesale (Turnkey) Base Shell) ▪ Retail ▪ Retail Base Shell) ▪ Retail ▪ Retail ▪ Retail ▪ Cloud / Managed Ve
Slide 50: IIId. Adani Roads Transport Limited
IIId. Adani Roads Transport Limited
Slide 51: Adani Roads Transport Limited: Key highlights
Adani Roads Transport Limited: Key highlights Existing Portfolio of 14 Projects for 5000+ Lane Kms ▪ ARTL (Adani Roads Transport Limited) is a wholly owned subsidiary of AEL that provides transport and utility infrastructure construction services in India ▪ The company focuses on large scale infrast
Slide 52: Adani Roads Transport Limited: Business updates
Adani Roads Transport Limited: Business updates Project Completion Status in 10 projects 62% KKRPL 75% 61% NPRPL 68% 61% HAM VBPPL 68% 43% BKRPL 49% 37% AVRPL 41% 57% PPRPL 67% 20% KSRPL 31% 27% BHRPL BOT 39% 19% Ganga HURPL 26% Expressway 19% UPRPL 26% Till Q2-24 Till Q3-24 BPRPL – Bilaspur Pathrap
Slide 53: IV. Emerging Digital Business (Digital Labs)
IV. Emerging Digital Business (Digital Labs)
Slide 54: Adani Digital Labs: Overview
Adani Digital Labs: Overview Adani Super App – Integrated Digital Platform to access Adani & partner Key Highlights services ▪ Adani’s B2C business expected to cover 450-500 mn consumers Adani B2C Businesses by 2026 Customer ▪ Focus on data analytics & catering to consumer preferences acquisition ▪
Slide 55: Adani Digital Labs: Adani Super App as one stop interface with consumers
Adani Digital Labs: Adani Super App as one stop interface with consumers Digital strategy aimed at achieving a truly seamless consumer experience Platform system partners Airline Ticketing Targeted Sampling Target leisure travelers who book tickets online Partner with brands to connect with for flig
Slide 56: Adani Digital Labs: Digital incubator within Adani Enterprises
Adani Digital Labs: Digital incubator within Adani Enterprises Digital Platform Key Group Adjacencies Captive Opportunity AAHL – 23% of Indian Air Traffic Adani Portfolio’s B2C businesses Platform where technology and digital Adani Wilmar – 35% of retail shop coverage Service 400 mn consumers Scale
Slide 57: V. Other Business Verticals (Primary Industries, Wilmar)
V. Other Business Verticals (Primary Industries, Wilmar)
Slide 58: Other Business Verticals: Materials, metal & mining business
Other Business Verticals: Materials, metal & mining business ▪ The Adani Group was India’s first private mining company who pioneered the concept of Mine Developer and Operator (MDO), and as of today, stands as one of the largest developers and operators of coal mines in India. The Group has also es
Slide 59: Other Business Verticals: Adani Wilmar Ltd.
Other Business Verticals: Adani Wilmar Ltd. (FMCG Business: 50:50 JV of Adani & Wilmar) ▪ Adani Wilmar limited is one of the largest food FMCG companies in India, with over two decades of trust and over 110 million household reach ▪ The company offers edible oils, wheat flour, rice, pluses and sugar
Slide 60: VI. ESG Highlights
adani VI. ESG Highlights
Slide 61: AEL: Strong Governance Framework
AEL: Strong Governance Framework Key Governance Areas Key Highlights ESG Governance Structure Board Independence & ✓ 50% Independent Directors Board of Directors Diversity ✓ 12.5% Women Directors ✓ Corporate Responsibility Committee in place with 100% Independent Directors to provide assurance Corpo
Slide 62: AEL: ESG performance highlights
AEL: ESG performance highlights FY 25 Targets FY 23 Achievements Status 25% Yearly reduction in energy intensity1 ✓ 26% Reduction in energy intensity1 25% Yearly reduction in emission intensity1 ✓ 55% Reduction in emission intensity1 20% Yearly % increase in renewable energy 13% % Increase in renewa
Slide 63: AEL: ESG – Ratings, Awards and Recognition
AEL: ESG – Ratings, Awards and Recognition ESG Ratings AEL’s Rating Scored 59/100, indicates good relative ESG performance and above average degree of transparency in Refinitiv ESG Score reporting material ESG data publicly DJSI-S&P Global Corporate Sustainability Scored 49/100 significantly better
Slide 64: AEL: ESG performance highlights Q3 FY24
AEL: ESG performance highlights Q3 FY24 Incubating Businesses Primary Industries ❑ ANIL Ecosystem ❑ Mining Services Business ▪ ~14% electricity consumption from RE sources ▪ ~9% reduction1 in energy intensity2 achieved ❑ Airport Business ▪ ~8% reduction1 in water consumption intensity2 achieved ▪ ~5
Slide 65: Thank You
Thank You