Delhivery Limited · NSE:DELHIVERY

Delhivery — MS Annual Asia Pacific Summit 2023

29 slides from Delhivery's conference presentation, Nov 9, 2023

  1. Slide 1: Intimation under Regulation 30: Schedule of Investor Conference

    Date: November 09, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (E), Mumbai – 400 001 India Mumbai – 400 051 India Scrip Code: 543529 Symbol: DELHIVERY Sub: Intimation under Regulation 30

  2. Slide 2: Slide 2

  3. Slide 3: Safe harbour and disclaimer

    Safe harbour and disclaimer This Presentation is prepared by Delhivery Limited (“Company”) and is for information purposes only without regards to specific objectives, financial situations or needs of any particular person and nothing in it shall be construed as an invitation, offer, solicitation, r

  4. Slide 4: We aim to build the Operating System for commerce in India

    We aim to build the Operating System for commerce in India 3

  5. Slide 5: India's logistics market is large and highly fragmented

    India’s logistics market is large and highly fragmented Direct Logistics Spend (1) Direct Logistics Share of Top 10 Per Capita Direct ($Bn) Spend / GDP (1) (%) Organized Players Logistics Spend($) (2) (%) 200 8% ~1.5% 150 1,470 7% ~15% 4,460 1,470 10% ~7-10% 1,050 Source: RedSeer report 1. As of CY2

  6. Slide 6: Massive TAM

    Massive TAM Express Part Truckload Supply Chain Cross-Border Parcel (1) Truckload Freight (1) Services (1) Air (1) Freight (1) $10-12 Bn $26 Bn $163 Bn $109 Bn $8 Bn+ ➢ E-commerce express ➢ Express PTL ➢ National & regional ➢ End-to-end supply ➢ Air express parcel parcel chain solutions with ➢ Air f

  7. Slide 7: India's largest integrated logistics platform

    India’s largest integrated logistics platform(1) ₹7,224 Cr / ₹3,872 Cr 44.6% (1.0%) FY23 / H1 FY24 FY19 – 23 Revenue CAGR(2) H1 FY24 Adjusted EBITDA margin Revenue from services vs (9.7%) in H1 FY23 / (0.6%) in Q2 FY24 363 Mn 691K Tons 18,655 (YoY:15.6% growth) (YoY: 31.6% growth) Pin-codes covered(

  8. Slide 8: Strength of our operations

    Strength of our operations Differential Scale → Better unit economics Lower volatility in volumes → higher network utilization Express Parcel(5) 1,600 600 4% Load (K Tons)(1) 500 Load (K Tons)(1) 1,200 1,101 400 300 -13% 800 -28% 200 1,000 -17% 100 400 663 - 360 Q1 Q2 Q3 Q4 0 Delhivery (FY23) Expres

  9. Slide 9: Adjusted EBITDA

    Adjusted EBITDA Adjusted EBITDA(1) (₹ Cr) (58) (26) 74 81 (217) (125) (67) 6 (25) (13) 3.7% 3.9% 0.3% (0.6%) (1.6%) (1.3%) (3.8%) (3.7%) (7.0%) (12.5%) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 FY22 FY23 FY24 8 (1) FY22 figures are on proforma basis

  10. Slide 10: Delhivery: Investment case

    Delhivery: Investment case 1 $200Bn+ addressable market - large and highly fragmented 2 Largest integrated logistics platform with a full range of supply chain services 3 Unified world class network infrastructure, inter-operable across business lines and services 4 Asset-light business model with p

  11. Slide 11: Delhivery is at the cross-section of several growth drivers

    Delhivery is at the cross-section of several growth drivers(1) INFRASTRUCTURE TECHNOLOGY & DATA SCIENCE Large real estate footprint | Leveraging Data science, ML & AI | Proprietary India’s regulatory reforms & tech platform | Cutting edge infra-development | General capital engineering & automation

  12. Slide 12: Q2 FY24 Update

    Q2 FY24 Update 11

  13. Slide 13: Quarterly highlights

    Quarterly highlights 1 Strong start to Q3: Oct Express Parcel volumes 70 Mn+ (with higher proportion of heavy); PTL ~120K tons 2 Key Focus Areas: Working capital: Significant improvement in net working capital days (28 days vs 38 days as of Mar’23) primarily due a to 12 days reduction in receivables

  14. Slide 14: Q2 FY24 performance

    Q2 FY24 performance Revenue from services(1) Express Parcel revenue Express Parcel shipments (₹ Cr) YoY: 8% (₹ Cr) YoY: 8% (Mn) YoY: 12% QoQ: 0.7% QoQ: (0.5)% QoQ: 0.6% 1,202 1,210 182 181 1,125 161 1,930 1,942 1,796 11% 8% 10% 7% 8% 6% 18% 19% 16% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 PTL

  15. Slide 15: Q2 FY24 performance

    Q2 FY24 performance Revenue from services(1) TL revenue Supply Chain Services revenue (₹ Cr) YoY: 8% (₹ Cr) YoY: 46% (₹ Cr) YoY: (9%) QoQ: (20%) QoQ: 0.6% QoQ: 15% 206 1,930 1,942 180 164 1,796 150 8% 131 11% 103 10% 7% 8% 6% 18% 19% 16% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 Cross Border S

  16. Slide 16: Adjusted EBITDA

    Adjusted EBITDA ₹ Cr Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 FY23 Service EBITDA refers to Revenue from customers(1) 1,746 1,796 1,824 1,860 1,930 1,942 7,225 cash EBITDA generated after accounting for direct variable and fixed costs of Service EBITDA (6) 86 139 205 196 201 422 operations, e

  17. Slide 17: Q2 FY24: Drivers of adjusted EBITDA movements vs Q1 FY24

    Q2 FY24: Drivers of adjusted EBITDA movements vs Q1 FY24 ₹ Cr Remarks Q1 FY24 Adjusted EBITDA (A) (25) Incremental revenue in Transport (Express and PTL) 35 Incremental gross profit in Transport (Express and PTL) (B1) ~18 Prior to 2Q specific items listed below (-) Planned investments in last mile (

  18. Slide 18: Cost Drivers – Q2 FY24 vs Q1 FY24

    Cost Drivers – Q2 FY24 vs Q1 FY24 ₹ Cr Q2 FY22 Q2 FY23 Q1 FY24 Q2 FY24 FY23 Freight, Handling and Servicing Cost(1,2) 1,157 1,436 1,438 1,442 5,669 % of Revenue from services(2) 78.5% 79.9% 74.4% 74.3% 78.5% Line haul expenses 558 645 648 632 2,517 % of revenue 37.8% 35.9% 33.6% 32.5% 34.8% Vehicle

  19. Slide 19: Adjusted EBITDA Bridge

    Adjusted EBITDA Bridge Adjusted EBITDA ₹ Cr Q2 FY23 Q1 FY24 Q2 FY24 FY23 Remarks Total revenue from customers 1,796 1,930 1,942 7,225 Less: Freight handling and servicing cost 1,436 1,438 1,442 5,669 Less: Purchase & change in inventory of traded - - - 2 goods Less: Employee benefit expense 353 353

  20. Slide 20: Working capital position improving YoY

    Working capital position improving YoY Net Working Capital (Days) 43 73 47 37 38 28 106 87 78 77 74 65 40 37 39 37 35 33 Mar '19 Mar '20 Mar '21 Mar '22 Mar '23 Sep '23 Receivable days Payable days Net Working Capital Days (Receivable days – Payable days) Receivable days = (Trade receivable + Unbill

  21. Slide 21: Appendix

    Appendix 20

  22. Slide 22: Quarterly financial performance

    Quarterly financial performance Income (₹ Cr) Q2 FY23 Q1 FY24 Q2 FY24 Q-o-Q% Y-o-Y% FY23 Revenue for services (A) 1,796 1,930 1,942 1% 8% 7,224 Revenue from traded goods (B) - - - - - 2 Revenue from customers (A+B) 1,796 1,930 1,942 1% 8% 7,225 Other income 87 101 101 (0.1%) 16% 305 Total income 1,8

  23. Slide 23: Balance sheet

    Balance sheet ₹ Cr ₹ Cr Equity and Liabilities Mar ‘23 Sep ’23 Assets Mar ‘23 Sep ‘23 Total equity 9,177 9,111 Non – current assets Non – current cash equivalents(1) 670 1,222 Non – current liabilities Property, plant and equipment (Incl CWIP) 817 972 Borrowings 114 80 Goodwill and other intangible

  24. Slide 24: Strong liquidity position

    Strong liquidity position Debt to Equity ₹ Cr Mar ‘22 Sep ‘22 Mar ’23 Sep ’23 Term loan 233 246 199 170 Working capital loan 120 5 - - Debt (excludes CCPS) (A) 353 251 199 170 Cash and cash equivalents(1) (B) 2,512 5,752 5,508 5,534 Net debt (A-B) (2,159) (5,502) (5,309) (5,364) Networth (C) 5,957 9

  25. Slide 25: Cash flow summary

    Cash flow summary ₹ Cr H1 FY23 H1 FY24 Net cash from / (used in) operating activities (119) 305 Cash generated from / (used in) operations (81) 297 Cash operating profit/ (loss) before working capital changes(1) (122) 186 Changes in net assets(1,2) 41 111 Direct taxes paid (net of refund) (38) 8 Net

  26. Slide 26: Investing in capacity and capability building

    Investing in capacity and capability building 9.0% 7.5% 7.2% 6.8% 7.8% 7.0% 0.6% 0.5% 0.4% 1.6% 1.1% 1.1% 1.7% 1.8% 1.9% 2.8% 2.0% 3.5% 2.0% 1.5% 2.1% 1.2% 1.3% 0.8% 1.7% 2.7% 1.0% 1.2% 2.3% 2.4% 1.4% 1.8% 1.2% 1.2% 0.2% FY19 FY20 FY211 FY22 1,2 FY23 H1 FY24 Vehicles Automation Plant, Machinery & Le

  27. Slide 27: Employee Stock Options

    Employee Stock Options(1) Estimated P&L charge (non-cash) for ESOPs already granted Cost of performance-based ₹ Cr Cost of time-based options(2) options(3) FY24 155 94 FY25 95 40 FY26 38 12 FY27 5 2 FY28 0 0 Total 294 147 Number of Employees holding ESOPs (vested + unvested) : 1,631 ESOPs not yet gr

  28. Slide 28: Definitions and abbreviations

    Definitions and abbreviations Cross Border Cross border express parcel and freight service by the Company The pro forma consolidated P&L and adjusted EBITDA have been compiled by our Company to illustrate the impact of the acquisition of SpotOn Logistics Private Limited on our consolidated Pro forma

  29. Slide 29: For any queries, please write to us at ir@delhivery.com

    28 For any queries, please write to us at ir@delhivery.com

Delhivery — MS Annual Asia Pacific Summit 2023 on 6ix