Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — Non-Deal Roadshow (September 2019)
25 slides from Adani Ports & Special Economic Zone's roadshow presentation, September 2019
Slide 1: Adani Ports and SEZ Limited
Adani Ports and SEZ Limited NDR, USA & Canada September, 2019
Slide 2: APSEZ: Investment thesis
APSEZ : Investment thesis Unique operating model with Assets with enhanced capacity sustained high and diversified utilization and operating leverage World-class growth having low risk technology and people Market leader in the fastest One-point transport utility with growing region across the integ
Slide 3: APSEZ: Sustained high growth
APSEZ : Sustained high growth (MMT) 400 CAGR FY09 FY19 • No. of Port: 1 • Capacity: 80 MMT • No. of Port: 10, JV-2 • Capacity: 395 MMT (FY09-19) • Revenue: 1,496 Cr • Revenue: 10,925 Cr 300 • EBITDA: 966 Cr • EBITDA: 7,067 Cr 19% Cargo 200 208 151 22% Revenue 100 Single commodity 93 to multi-commodi
Slide 4: APSEZ: Market leader with diversified cargo mix
APSEZ : Market leader with diversified cargo mix Our Reach Maintaining Diverse Cargo Mix 14% 27% Container 33% 12% 41% Coal Dahej Kilaraipur 208 36 14 395 MMT Total Installed Capacity MMT MMT Crude MMT Other bulk Patli Kandla 21% 19% 33% 14 Kishangarh MMT Mundra FY09 FY19 252 MMT Growing Market Shar
Slide 5: Our business hinterland will remain growth engine of the world
Our business hinterland will remain growth engine of the world INR 2.7 trillion India FY2019 nominal GDP INR 2.5 trillion Incremental GDP by FY2025 Roadmap 2025 Notes: Colour ramp is based on GDP growth rates in 2019. Source: The Conference Board Economic Outlook 2019, July 2019 update. Note: Averag
Slide 6: APSEZ: Benign regulatory environment with supportive India growth story
APSEZ : Benign regulatory environment with supportive India growth story Government Focus on Stable Regulatory Total Import – Export in Value terms India Cargo Volume Growth Environment in Port Sector expected to grow over 13% CAGR(1) Expected to be 5.5% CAGR • Stable regulatory history of over 25 y
Slide 7: Integrated logistics services to expand across the country
Integrated logistics services to expand across the country Technology Platform Creating Value Transportation Facilities Other Services Rail Logistics Parks Stuffing / De-stuffing Warehousing Cargo Aggregation Road (Incl Cold Storage) Inland Waterway Inland Waterway Customs Clearance Terminals Other
Slide 8: Substantial expansion of assets and service capabilities
Substantial expansion of assets and service capabilities Multi-modal Rakes * Warehouses Silo Capacity Logistics Parks 22%+ EBIDTA From 4 to 15+ From 49 to 200+ From 0.4 Mn to 5 Mn Sq.Ft. From 0.5 to 1.5 MMT Cold Storage Air Cargo Inland Waterways New Business Roadmap 2025 2 Mn Sq.Ft. 50K MT 25 Barge
Slide 9: APSEZ: Port based industrial development
APSEZ : Port based industrial development Mundra Kattupalli Dhamra • Land bank: • Land acquisition is in progress • Land acquisition is in progress 15,000 Ha. • Direct Rail & Road Connectivity to be • Attractive destination for mineral- (For SEZ and Industrial Parks) developed based industries • Loc
Slide 10: APSEZ: Capital allocation based on harnessing existing capacities
APSEZ : Capital allocation based on harnessing existing capacities Current State: FY19 Investment in key infrastructural projects Port(1) Installed Capacity Utilisation(2) Key identified infrastructure projects for capacity addition Mundra 252 MMT 137 MMT • Container terminal capacity – CT 2 and CT6
Slide 11: APSEZ: Capital allocation based on harnessing existing capacities
APSEZ : Capital allocation based on harnessing existing capacities Current State: FY19 Investment in key infrastructural projects Port(1) Installed Capacity Utilisation(2) Key identified infrastructure projects for capacity addition Vizhinjam Under Construction • Container transshipment hub • Phase
Slide 12: Key Pillars of Finance Strategy
Key Pillars of Finance Strategy 1. Consistent disclosures to increase 2. Reduce cost of capital predictability • Maintain Investment Grade Rating • Information efficiency • Timely and quality disclosure • Desired level of Net Debt/EBITDA 3.0x to • Reliable earnings 3.5x 3. Robust capital allocation
Slide 13: Environment, Sustainability & Safety
Environment, Sustainability & Safety Focus on Renewable Energy Reducing Carbon Footprint Water Conservation • Existing RE usage is 10 MW • Becoming a Carbon Neutral Company • 422 mld water recycled and reused and in • 100% cargo handling using RE by FY25 by FY25 FY19 • In-line with Paris Accord • 10
Slide 14: APSEZ Corporate Governance
APSEZ Corporate Governance Recent Governance Initiatives • Policy on “Related Party Transactions for Acquiring and Sale of Assets” • Dividend and shareholder return policy to be consistent with the long term strategic growth objectives of the company • Dividend set at 20% to 25% of Profit After Tax
Slide 15: APSEZ well placed to capture future growth
APSEZ well placed to capture future growth Why Invest with us? • Sustained high and diversified growth with low-risk and unique operating model • One-point transport utility across port and hinterland with integrated logistics presence • Enhanced capacity utilisation with operating leverage • Sustai
Slide 16: Thank You
adan Ports and Logistics Thank You
Slide 17: Appendix
adani Appendix
Slide 18: Adani Foundation – Building Communities
Adani Foundation – Building Communities 3.2 million people annually across 2,250 villages Education Community Sustainable Community in 18 states, 21 sites, Health Livelihood Infrastructure 38 locations. Beneficiaries 1,21,159 5,18,160 3,29,372 3,79,262 ~ 19 lakhs direct and 14 Lakhs indirect benefic
Slide 19: Leveraging technology on an enhanced service base
Leveraging technology on an enhanced service base Design Bidding Automated Automated & Integrated Workflow Project Management Workflow & Platforms for Internal and External 1 Data Based Stakeholders – providing visibility Operations Collaboration Decision making & data based decision making Project
Slide 20: People – Building future ready organisation
People – Building future ready organisation Leadership pipeline Continuous Capability Talent development Development Management • Leadership readiness for new • Focused training approach. • Create Opportunities for business and international expansion. Internal Talent. • People in sync with changing
Slide 21: Debt profile – Elongated from 4 to 6 years post bond issuance
Debt profile – Elongated from 4 to 6 years post bond issuance As of 31st March 2019 As of 31st July 2019# 49% 50% 17% 21% 2% 1% 17% 1% 1% 15% 4% 5% 5% 4% 5% 3% < 1 Year 1 -3 Years 3 - 5 Years >5 Years < 1 Year 1 -3 Years 3 - 5 Years >5 Years INR Debt Fx Debt INR Debt Fx Debt Description (INR Crs.) M
Slide 22: APSEZ is rated investment grade from FY16 and beyond
APSEZ is rated investment grade from FY16 and beyond Stable Outlook Baa3 BBB– BBB– FY 19 23% Covered by International rating agencies FY 18 25% FFO / Net Debt FY 17 20% FY 16 11% Matrix being maintained Range FY 15 17% FFO / Gross Debt : 18% - 25% FFO / Net Debt : 13% to 15% FY 14 11% Liquidity Rati
Slide 23: Reduction in cost of debt
Reduction in cost of debt 2.38% 9.0% 2.4% 2.2% 2.15% 7.97% 8.0% 7.66% 1.95% 1.95% Average 2.0% 6.97% 7.0% 1.8% 6.29% 1.6% 1.50% 6.0% 1.4% 5.70% 1.2% 5.0% 5.42% 1.0% Jul-15 Jan-17 Jun-17 Jul-19 Jul-19 4.0% FY14 FY15 FY16 FY17 FY18 FY19 5 Years Bond 10 Years Bond Strong fundamentals enable tapping cap
Slide 24: ROCE of portfolio of existing ports
ROCE of portfolio of existing ports 15% Mundra FY 19 9% Dhamra 20% Hazira 4% Kattupalli 15% Dahej -9% Ennore -5% Tuna -11% Vizag 6% Goa -15% -10% -5% 0% 5% 10% 15% 20% 25% 24 Investment Thesis Growth with Goodness Finance Strategy Technology & People
Slide 25: 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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