Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — H1 FY23 Earnings Presentation
47 slides from Adani Ports & Special Economic Zone's earnings presentation, Nov 1, 2022
Slide 1: Cover letter to stock exchanges
Ref No: APSEZL/SECT/2022-23/66 November 1, 2022 BSE Limited National Stock Exchange of India Limited Floor 25, P J Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 532921 Scrip Code: ADANIPORTS Sub: Investor Presentation on unaudit
Slide 2: Operational & Financial Highlights – H1 FY23
Operational & Financial Highlights – H1 FY23 Adani Ports and SEZ Ltd.
Slide 3: Table of Contents
Table of Contents A Adani Portfolio Overview B APSEZ Company Profile C Strategic, and Operational Highlights H1 FY23 D Financial Highlights H1 FY23 E ESG Highlights F Annexures 2
Slide 4: Group Profile
Group Profile STRICTLY CONFIDENTIAL
Slide 5: Adani: A World Class Infrastructure & Utility Portfolio
Adani: A World Class Infrastructure & Utility Portfolio ~USD 240 bn1 Combined Market Cap Flagship Infrastructure & Utility Core Portfolio Primary Industry Emerging B2C Materials, Metal & Incubator Energy & Utility Transport & Logistics Direct to consumer Mining (72.3%) (60.5%) (73.9%) (66.0%) (100%)
Slide 6: Adani Portfolio: Decades long track record of industry best growth rates
Adani Portfolio: Decades long track record of industry best growth rates across sectors Port Cargo Throughput (MMT) Renewable Capacity (GW) Transmission Network (ckm) CGD7 (GAs8 covered) 132% 36% 18% 12% 3x 5x 3x 25% 1.4x 6% 4% 25% Industry APSEZ Industry AGEL Industry ATL Industry AGL 2014 972 MMT
Slide 7: Adani Portfolio: Repeatable, robust & proven transformative model of investment
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
Slide 8: APSEZ: Company Profile
APSEZ: Company Profile STRICTLY CONFIDENTIAL
Slide 9: 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
Slide 10: 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 335 MMT 203 MMT Dahej Moga 14 Kanech Kotkapura MMT Kilaraipur Kaithal Panipat Dhamora Tuna 14 Patli Kannauj Samastipur & MMT Darbhanga Kishangarh Mundra Katiha
Slide 11: 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 81 H1 Trains 9 1.1 1.4 mn 620 FY23 (82 more MMLP MMT Sq. ft. KMs getting added) 2.5X 1.5X 2.5X 40X 3X 200+Trains 1
Slide 12: Strategic, and Operational Highlights H1 FY23
Strategic, and Operational Highlights H1 FY23 STRICTLY CONFIDENTIAL
Slide 13: Strategic Highlights – H1 FY23: Ports & SEZ
APSEZ: Strategic Highlights– H1 FY23 Ports & SEZ • Acquisition of three strategic assets that are key milestones in our journey towards becoming the largest transport utility - • Haifa Port Company, the operator of Israel’s largest port, at an implied EV/ EBITDA multiple of 7.5x • Completed acquisit
Slide 14: Strategic Highlights – H1 FY23: Ports & SEZ
APSEZ: Strategic Highlights– H1 FY23 Ports & SEZ • Coal volumes that were subdued in Q2 due to an extended monsoon have started to recover in the 2nd half of October • Volume boost from the recent contract wins in H2 • Five new services at Mundra and Hazira with a total cargo potential of ~ 2 lakh T
Slide 15: Strategic Highlights – H1 FY23: Logistics
APSEZ: Strategic Highlights– H1 FY23 Logistics • Completed acquisition ICD “Tumb” at Vapi in Gujarat, which amongst the largest ICDs in India with a capacity of 0.5 MTEUs; the facility is integrated into ALL from October 2022 onwards • ALL now has nine operating MMLPs, and one is under construction
Slide 16: Operational Highlights – H1 FY23
APSEZ: Operational Highlights– H1 FY23 Ports • APSEZ cargo volume grew 11% Y-o-Y to 177.5 MMT record highest volume • Growth of cargo volume was led by dry cargo (+18%) and containers (+5%) • Non-Mundra ports contributed 54% to the cargo basket • Most of the APSEZ ports have reported record half-yea
Slide 17: Financial Highlights H1 FY23
Financial Highlights H1 FY23 STRICTLY CONFIDENTIAL
Slide 18: Robust growth with diversification – H1 FY23
APSEZ: Robust growth with diversification –H1 FY23 (YoY) H1 FY22 H1 FY23 APSEZ Cargo volume East Coast Volume Non Mundra Volume 11% 13% 14% 159.91 177.47 61.80 69.68 84.23 96.10 MMT MMT MMT MMT MMT MMT ASPEZ Container volume West Coast Volume Mundra Volume 3% 10% 8% 4.11 mn 4.23 mn 98.12 107.80 75.6
Slide 19: Mitigating concentration risk – cargo volume distribution
APSEZ: Mitigating concentration risk – cargo volume distribution H1 FY23 39% 39% 38% 37% East Coast vs West Coast Share 61% 61% 62% 63% H1 FY23 H1 FY22 H1 FY23 H1 FY22 APSEZ All India West Coast East Coast H1 FY22 H1 FY 23 46% 47% Mundra vs Non Mundra Share 53% 54% Mundra Non Mundra Mundra Non Mundr
Slide 20: Diversifying cargo portfolio
APSEZ: Diversifying cargo portfolio 41% 43% 40% 41% 41% 38% 37% 40% 36% 36% 33% 35% 33% 32% 33% 32% 17% 16% 13% 13% 12% 13% 15% 12% 13% 7% 11% 11% 11% 8% 9% 7% 3% 3% 2% 3% 3% 3% 2% 2% 1% 0% 0% 0% 0% FY17 FY18 FY19 FY20 FY21 FY22 Q1 FY23 H1 FY23 Dry (Coal) Dry (Non Coal) Liquid (excl Crude) Crude Gas
Slide 21: Balanced growth across ports
APSEZ: Balanced growth across ports • All ports had a Y-o-Y growth in volumes • Growth at Mundra, Dahej and Krishnapatnam primarily contributed by coal, while at Kattupalli its primarily containers • Gangavaram Port, which is the latest addition to our portfolio handled 17 MMT of cargo in H1 FY23 20
Slide 22: Balanced growth across cargo type
APSEZ: Balanced growth across cargo type • Growth primarily driven by bulk and container cargo types • Coal and agri products contributed to Y-o-Y growth, while steel and minerals saw a decline • Container volumes grew on account of addition of two new shipping lines at Kattupalli and volume jump at
Slide 23: Sticky cargo ensures resilience
APSEZ: Sticky cargo ensures resilience 312 64% 62% 56% 58% 59% 247 53% 49% 223 208 • Sticky cargo constitutes ~53% of 180 177 total cargo with a higher base 169 155 121 131 138 • 70% of sticky cargo at Mundra Port 108 111 93 • Container constitutes 44% and liquid 12% of total sticky cargo FY17 FY18
Slide 24: Financial performance – H1 FY23
APSEZ: Financial performance – H1 FY23 (in INR Cr) H1 FY22 H1 FY23 Particulars Revenue EBITDA^ PAT# Revenue EBITDA^ PAT# APSEZ Consolidated* 8906 5414 2306 10,269 6551 2915 JVs AICTPL (CT-3), JV with MSC 645 344 94 757 375 26 ACMTPL (CT-4), JV with CMA-CGM 292 169 40 368 211 12 Total 9843 5927 2441
Slide 25: Key segment wise Operating revenue & EBITDA – H1 FY23
APSEZ: Key segment wise Operating revenue & EBITDA – H1 FY23 (YoY, in INR Cr) Ports Logistics 8967 721 70% 70% 29% 7164 546 6236 25% 5046 212 135 H1 FY22 H1 FY23 H1 FY22 H1 FY23 Revenue EBIDTA EBIDTA (%) Revenue EBIDTA EBIDTA (%) SEZ & Port Development O&M 9% 766 9% 34% 22% 334 303 210 170 72 27 31
Slide 26: Capex segment wise H1 FY23
APSEZ: Capex segment wise H1 FY23 (in INR Cr) Total Investment – 4,014 Ports – 2,594 Marine Services - 10 Logistics – 1,410 Tug 10 Warehousing 565 Logistics Park 579 Mundra 856 Container 928 Grain Silos 32 Dhamra 325 Dry 812 Trains 234 Gangavaram 517 Hazira 70 Liquid 291 Krishnapatnam Maintenance an
Slide 27: Debt Profile – H1 FY23
APSEZ: Debt Profile – H1 FY23 (YoY, in INR Cr) Gross Debt, Net Debt & Average Maturity Strong Cash Flow from Operations Debt repaid 44,996 45,453 Rs 5683 Cr 7.01 7.0 42,750 35,817 6.2 31,307 31,666 Sep' 2021 Mar'2022 Sep'2022 Net Debt Gross Debt Average Maturity (years) Net Debt to EBITDA^ 4.4 3.4 3
Slide 28: Key ratios H1 – FY23
APSEZ: Key ratios H1 – FY23 Rating Ratios^ 25% 23% 24% 22% 22% 18% 5.1 4.8 4.2 • FFO to Gross Debt and FFO to Net Debt improves to 22% and 24% respectively FY 21 FY22 H1 FY23 FFO / Gross Debt (13% to 15%) FFO / Net Debt (18% ‐ 25%) • FFO to interest coverage improves to 4.8x FFO Interest coverage (3
Slide 29: Port wise returns
APSEZ: Port wise returns 48% 23% 21% 19% 19% 20% 15% 16% 16% 16% 11% 11% 12% 11% 12% 11% 12% 8% 9% 7% 5% Terminals 3% 2% 3% 2% 3% Mundra Hazira Dahej Dhamra Kattupalli Krishnapatnam Gangavaram Logistics APSEZ -2% Consolidated -5% ROCE FY21 ROCE FY22 ROCE H1 FY23 • ROCE continuously improving at matu
Slide 30: ESG Highlights
ESG Highlights STRICTLY CONFIDENTIAL
Slide 31: ESG Indicators: progress vs. targets
ESG Indicators: progress vs. targets Indicator FY25 Target Till FY22 End Status: H1 FY23 Energy & Emission RE share in total electricity* 100% 20% 13% Energy intensity reduction* 50% 38% 47% Emission intensity reduction* 60% 45% 43% Water and Waste Water consumption intensity reduction* 60% 58% 64%
Slide 32: Progress on initiatives
Progress on initiatives • Renewable energy installation/ tie-ups o Kattupalli and Ennore likely to complete solar capacity additions of another 1.3MWp by Dec o Plan for Renewable capacity of around 350MW on a captive basis is being formalised • Delivery of E- ITVs o First lot of E-ITVs will arrive a
Slide 33: Annexures
Annexures STRICTLY CONFIDENTIAL
Slide 34: Risk Management Approach
APSEZ: Risk Management Approach (in INR Cr) • During the quarter, the Company has reassessed its risk management approach towards foreign currency exposure • This is in line with the focus on the transport utility model to reduce earnings volatility from currency driven fluctuations • The Company ha
Slide 35: Port wise cargo and financial details
Port wise cargo and financial details STRICTLY CONFIDENTIAL
Slide 36: Mundra port - volume and financials H1 FY23
APSEZ: Mundra port - volume and financials H1 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA EBITDA Margin 8% H1 FY23 2701 64% H1 FY22 2301 12.9 13.4 15.6 18.9 1716 1520 76 81 49.0 47.1 Dry Container Liquid (Inc Crude) Dry Container Liquid (Inc Crude) Revenue EBITDA H1 FY 22 H1 FY 23 • Cargo
Slide 37: Krishnapatnam port - volume and financials H1 FY23
APSEZ: Krishnapatnam port - volume and financials H1 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA Port EBITDA H1 FY22 H1 FY23 Margin 68% 13% 0.8 1198 2.0 0.4 0.7 996 813 721 22 25 19.4 24.0 Dry Container Liquid Dry Container Liquid Revenue EBITDA H1 FY 22 H1 FY 23 • Drop in container handli
Slide 38: Dhamra port - volume and financials H1 FY23
APSEZ: Dhamra port - volume and financials H1 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA EBITDA Margin 1% 807 836 64% H1 FY23 H1 FY22 0.9 2.1 533 486 17 17.1 14.9 16.3 Dry Liquid Dry Liquid Revenue EBITDA H1 FY 22 H1 FY 23 • Cargo increase is driven by jump in coal volumes • Revenue and E
Slide 39: Hazira port - volume and financials H1 FY23
APSEZ: Hazira port - volume and financials H1 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA EBITDA Margin 74% H1 FY22 1% H1 FY23 866 1.9 2.3 766 642 574 12.8 6.0 12.9 6.2 4.9 4.2 Dry Container Liquid Dry Container Liquid Revenue EBITDA H1 FY 22 H1 FY 23 • Marginal increase in overall volume
Slide 40: Dahej port - volume and financials H1 FY23
APSEZ: Dahej port - volume and financials H1 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA EBITDA Margin 65% 364 70% H1 FY22 H1 FY23 1.1 1.3 255 215 143 4.2 6.9 3.0 5.6 Coal Other Dry Cargo Coal Other Dry Cargo Revenue EBITDA H1 FY 22 H1 FY 23 • Cargo increase is due to jump in coal volumes
Slide 41: Kattupalli port - volume and financials H1 FY23
APSEZ: Kattupalli port - volume and financials H1 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA* 70% 137 EBITDA Margin 56% H1 FY22 H1 FY23 0.2 0.3 0.2 0.3 92 78 3.3 43 5.7 2.8 5.1 Revenue EBITDA Dry Container Liquid Dry Container Liquid H1 FY 22 H1 FY 23 • Container cargo has increased due t
Slide 42: Terminals at major ports & Dighi - volume & financials H1 FY23
APSEZ: Terminals at major ports & Dighi - volume & financials H1 FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA EBITDA Margin 26% 56% 296 H1 FY22 H1 FY23 0.03 0.02 222 3.4 4.5 8.9 11.1 105 6.6 5.4 56 Dry Container Liquid Dry Container Liquid Revenue EBITDA H1 FY 22 H1 FY 23 • Volume increase
Slide 43: Gangavaram port - volume & financials H1FY23
APSEZ: Gangavaram port - volume & financials H1FY23 (YoY, in INR Cr) Volume (MMT) Revenue & EBITDA* 851 EBITDA Margin H1 FY22 9% H1 FY23 67% 620 568 6.1 6.9 17.3 416 15.9 9.1 11.2 Coal Other Coal Other Revenue EBITDA H1 FY 22 H1 FY 23 • Increase in cargo volume is due to increase in coal and also
Slide 44: Adani Logistics and Harbour services - financials H1 FY23
APSEZ: Adani Logistics and Harbour services- financials H1 FY23 (YoY, in INR Cr) Logistics Harbour Services EBITDA Margin EBITDA Margin 87% 721 29%, 1220 546 1056 926 794 212 135 Revenue EBITDA Revenue EBITDA H1 FY 22 H1 FY 23 H1 FY 22 H1 FY 23 • Logistics revenue increased on account of higher rail
Slide 45: Consolidated financial performance – SEBI format
APSEZ: Consolidated financial performance – SEBI format 44
Slide 46: Thank You
Thank You Details Annexed in Linked File 1. Port-wise Cargo Volume Break up H1 FY23 2. Ports and Logistics Vertical Key Financial Performance H1 FY23 Please open the file in PDF reader and double click on the icon to open -
Slide 47: 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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