Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — Merger or Acquisition (February 2019)
24 slides from Adani Ports & Special Economic Zone's merger presentation, Feb 28, 2019
Slide 1: Exchange filing cover letter: Acquisition of Agri Logistics Business
Ports and Logistics Ref No: APSEZUSECT/2018-19/120 February 28, 2019 BSE Limited National Stock Exchange of India Limited Floor 25, P J Towers, Exchange Plaza, Dalal Street, Sandra Kurla Complex, Mumbai - 400 001 Sandra (E), Mumbai - 400 051 Scrip Code: 532921 Scrip Code: ADANIPORTS Sub: Presentatio
Slide 2: Acquisition of Adani Agri Logistics Business (AALL)
Acquisition of Adani Agri Logistics Business (AALL) APSEZ 28 February 2019
Slide 3: Discussion Topics
Discussion Topics 1. Transaction background and context 2. Adani Agri Logistics Limited (AALL) – Strategic Fit for Adani Logistics 3. AALL – Geographical Presence and Concession Structure 4. Agri Logistics – Business Potential 5. AALL – Business Potential and Strategic Synergies 6. Financial and Val
Slide 4: Transaction Context
Transaction Context • 2016: Initial Evaluation by APSEZ of AALL • 2017/18: APSEZ Strategic Business Plan on Logistics finalized • 2017/18: AALL becomes a sizeable business with new contracts • 2017/18: ALL review of strategy and identification of potential sites for logistics businesses • Target 202
Slide 5: AALL - A good fit into ALL Logistics Strategy
AALL - A good fit into ALL Logistics Strategy • Adani Logistics Limited (“ALL”) is a leading player in India providing infrastructure and Target fits well into Adani services across Container, Bulk, Break-bulk & Liquids Logistics strategy • AALL is India’s largest player with 45% market share in mod
Slide 6: AALL– Brief Overview
AALL– Brief Overview Pan India Presence in 10 States Strong Contractual Framework Highlights Notes Volume • Guaranteed tonnage from FCI / States Offtake • Ultimate off-taker being FCI (Government of India Entity) Revenue • INR / Ton based on minimum guaranteed tonnage Escalation • Inflation linked f
Slide 7: Agri Logistics Opportunity in India
Agri Logistics Opportunity in India Significant opportunity on account of supply – demand gap in agri logistics infrastructure Near Term Infrastructure Growth Potential • Current agri losses of 7-8% and government target to bring this down to global average of <0.5% • Efficient infrastructure requir
Slide 8: India Agri Logistics – Visible Pipeline of Opportunities
India Agri Logistics – Visible Pipeline of Opportunities Silo Tenders Nabha (Punjab) Capacity: 0.05 MMT Punjab: AALL Qualified Bidder Tenders in Place 0.55 MMT Capacity: 2.1 MMT Timing: April 2019 Locations: 21 Tenders expected by Q2 CY 19 2.95 MMT Timing: Q2 CY19 Uchana (Punjab) Total 3.50 MMT Capa
Slide 9: AALL – Adding Value to Adani Logistics
AALL – Adding Value to Adani Logistics
Slide 10: Business Potential for Combined Logistics Business
Business Potential for Combined Logistics Business Complementary Asset Utilization and Logistics Business Efficiencies • Doubles size and scale • Leverage infrastructure • Handling multiple • Increase addressable market commodities • Enhance network and market • Rail transportation penetration • Fir
Slide 11: Near Term Synergy Potential for next 2-3 years
Near Term Synergy Potential for next 2-3 years FY21/FY22 Incremental Capex Savings FY21 EBITDA • ALL to leverage rail sidings for PFTs# Leverage Rail • 5 potential sites identified – 20% of ALL’s target 75-100 Cr Sidings for PFT for next few years • Use sidings to handle 3rd party cargo • Additional
Slide 12: Realizing Synergies – Taloja (Navi Mumbai)
Realizing Synergies – Taloja (Navi Mumbai) Warehouse Planned Land for PFT Existing Silos Existing Rail Siding • Plan to utilize Surplus Land for creating 20,000 Sqm Warehouse • Industries: Chemicals and Auto • Future PFT planned
Slide 13: Combined Business Potential – EBITDA Progression
Combined Business Potential – EBITDA Progression (INR Crores) 375 311 26 248 52 71 170 99 Existing Incremental Existing New Silo New AALL AALL AALL Contracts FY20 EBITDA from Contracts Business Warehousing FY22E FY23E FY24E Existing FY22E Business Contracts 12
Slide 14: Valuation and Financial Highlights
Valuation and Financial Highlights
Slide 15: AALL – Valuation Methodology
AALL – Valuation Methodology Independent • Ernst and Young Merchant Banking Services LLP Valuer Transaction • 100% stake in AALL from Adani Enterprises Limited (AEL) for a cash consideration of INR 946 Cr • Acquisition targeted to be completed by March end, 2019 Valuation • Discounted cash Flow meth
Slide 16: Delivering Value Accretion over the next 3 years by Realizing Synergies
Delivering Value Accretion over the next 3 years by Realizing Synergies Illustrative Accretion to Enterprise Value INR Crores Adjusted EV Notes: 1. Surplus land is vacant and not currently utilized area of ~96 acres valued at INR ~ 110 Crs. 2. New Silo business – Based on indicative financials for 1
Slide 17: Combined Indicative Financials – Including Identified Synergies
Combined Indicative Financials – Including Identified Synergies INR Crores Year 2020E 2021E 2022E 2023E 2024E 2025E Capacity – Silo - MT 1,025,000 1,425,000 2,075,000 2,575,000 3,075,000 3,075,000 Capacity Warehouse – No. of Pallets 600,000 600,000 600,000 600,000 600,000 Revenue 137 221 328 412 499
Slide 18: Contracted Capacity – Key Financial Highlights (Excluding Synergies)
Contracted Capacity – Key Financial Highlights (Excluding Synergies) INR Crores Year 2020E 2021E 2022E 2023E 2024E 2025E Capacity - MT 1,025,000 1,425,000 1,575,000 1,575,000 1,575,000 1,575,000 Volume Handled - MT 1,025,000 1,425,000 1,575,000 1,575,000 1,575,000 1,575,000 Revenue 137 193 225 232 2
Slide 19: New Silo Business – Indicative Financials
New Silo Business – Indicative Financials INR Crores Year 2020E 2021E 2022E 2023E 2024E 2025E Capacity - MT 500,000 1,000,000 1,500,000 1,500,000 Volume Handled - MT 500,000 1,000,000 1,500,000 1,500,000 Revenue 70 143 222 228 EBIDTA 52 107 165 170 EBIDTA Margin 74% 74% 74% 74% Depreciation 21 42 63
Slide 20: Co-location of Warehousing at AALL Sites – Indicative Financials
Co-location of Warehousing at AALL Sites – Indicative Financials Among the 6 identified locations, detailed analysis has been conducted on 2 locations (Taloja and Deoli) and its potential has been dimensioned below. INR Crores Year 2020E 2021E 2022E 2023E 2024E 2025E Capacity – Pallets 600,000 600,0
Slide 21: Annexure
Annexure
Slide 22: AALL: Current Holding Structure
AALL: Current Holding Structure Adani Enterprise Limited 100% Adani Agri Logistics Limited 100% 100% 100% # FCI Direct FCI Contracts @ MPWLC Contracts # PUNGRAIN Contracts (via Contracts (via SPV) (via SPV) SPV) (5.5 Lac. MT) (1.75 Lac. MT) (3.0 Lac. MT) (3.0 Lac MT) @ ALL (Kotakapura) Ltd. ALL (Dew
Slide 23: Operational Assets - Overview
Operational Assets - Overview User (Contracting Land Area Capacity Take or Pay MGT Concession Location Party) Acres In MT (FY19) In MT Period Total (a+b+c) 355 15,75,000 16,10,500 a) Operational Project 268 8,75,000 9,18,500 Moga FCI 46.52 200,000 150,000 2007-27 Chennai FCI 33.64 25,000 50,000 2007
Slide 24: adani
adani
Adani Ports and Special Economic Zone — Merger or Acquisition (February 2019) on 6ix