Adani Enterprises Limited · NSE:ADANIENT
Adani Enterprises — Adani Airport Holdings — Investor Presentation (October 2022)
64 slides from Adani Enterprises's investor presentation, Oct 13, 2022
Slide 1: Adani Airports Investors Presentation
Adani Airports Investors Presentation 13 October 2022
Slide 2: Table of Content
Table of Content 1 Adani Portfolio Overview 2 AAHL – India’s Largest Private Airport Platform 3 AAHL – Business Strategy & Key Differentiators 4 AAHL – Transforming Travel Experience 5 ESG – Embedded into Business Philosophy 6 AAHL – Futuristic Airport Platform
Slide 3: Adani Portfolio overview
01 Adani Portfolio overview
Slide 4: 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 5: 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 6: 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 7: Adani Airports: Emulating Adani's Business Philosophy
Adani Airports: Emulating Adani’s Business Philosophy Large Scale Platform De-risking Capex Strategic Locations 8 Airports Operating Airports: De-risked 8 City center airports 23% of Indian Air Traffic maintenance capex ➔ RAB hardening Control over 50% of Development 200+ Mn1 consumer base NMIAL de-
Slide 8: AAHL – India's Largest Private Airport Platform
02 AAHL – India’s Largest Private Airport Platform
Slide 9: AAHL: India's Largest Private Airport Platform
AAHL : India’s Largest Private Airport Platform Diversified Portfolio of Scale Network Regional Airports & Of International Gateways Airports Guwahati Jaipur Lucknow 5.4 Mn 5.0 Mn 5.4 Mn Conducive Integrated Structure Ahmedabad for Airport Airport Multi Model 11.4 Mn Inorganic Platform Platform Logi
Slide 10: AAHL Platform: Key Highlights
AAHL Platform: Key Highlights 1 Strong underlying business drivers − India – Fastest growing aviation market − Non-Aero spend per pax lower vs other airports globally (potential for 2x-3x growth from current levels) − Stable and evolved regulatory environment with long term concession period (50-60
Slide 11: Revenue Structure at Airport
Revenue Structure at Airport There are two types of revenues in Airport Business : Infra Play 1 Regulated Revenue Non- Regulated (Aero Revenue) Revenue Assured Return through Asset Revenue in relation to Hardening Aero Services at Airport 2 3 Non-Aero Revenue CSD Revenue (Aero Revenue) • Landing/ Pa
Slide 12: Airports Sector in India: Mature Regulatory and Stakeholder Setup
Airports Sector in India: Mature Regulatory and Stakeholder Setup ICAO GoI Well-Defined Model Regulatory environment has evolved Regulatory Set up to become more mature and efficient MoCA New concessions address issues faced in earlier Independent concessions regulatory body Matured and well-defined
Slide 13: MYT Framework for True-up and Tariff Setting over the control period
MYT Framework for True-up and Tariff Setting over the control period Landing, Parking, Airlines Aerobridge charges Regulatory True Up ARR User Development Fees Passengers Determined for a block of (UDF) 5 years (Control Period) Under/Over collection of revenue against ARR is Cargo, Fuel Farm and tru
Slide 14: Indian Aviation Industry: Growth Indicators
Indian Aviation Industry : Growth Indicators India – Fastest growing aviation market over last decade… ...with strong indicators of future growth Passengers in millions CAGR (2018-40) – Top 10 fastest growing Asia Pacific aviation markets by passenger COVID-19 impact 1. Vietnam 2. India 4. Philippin
Slide 15: Planned Privatization of new airports presents an attractive growth opportunity
Planned Privatization 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 INR 6 lakh crore Dharamsala Amritsar − As part of NMP, 25 AAI airports
Slide 16: Adani Airports: Business Strategy & Key Differentiators
Aero Non-Aero CSD 04 Adani Airports : Business Strategy & Key Differentiators
Slide 17: Key Business Drivers
Key Business Drivers Consumers Passenger Non-Passenger City Dwellers • Airlines • Meters & Greeters • City Population • OMCs • Airport Staff Categories • Enterprise Consumers • Cargo • Aviation Community • Tourists • Ground Handling Airport Business Aero Business Non-Aero Business CSD Business Footf
Slide 18: A. Aero Business
Capacity Development Route Development Reliable and Technology driven Operation A. Aero Business
Slide 19: 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 Capacity – Efficient and sustainable design 1 with all stakeholders Creation – Leveraging group's executi
Slide 20: AAHL Aero Strategy: Capacity Creation and Route Development
AAHL Aero Strategy : Capacity Creation and Route Development Revamping the Exiting Infrastructure and Creation of New Route Development and Airline Partnership Capacities to Cater India’s Growing Air Traffic Capacity Addition (Next 5 Years) on account of Capex Program Route Development – Premiumizat
Slide 21: Case Study: Ahmedabad: Asset Hardening and De-risking of Return
Case Study : Ahmedabad : Asset Hardening and De-risking of Return Next 5 Years Capital Expenditure Unlocking Capacity Additional Assured Return INR Cr Mn A. Return on Investment : 28 (Average 14%) 2,495 2,472 2,223 2,423 1,854 9 1,379 2,100 664 Existing Capacity Augment Capacity 2023 2024 2025 2026
Slide 22: Large Cargo Business with identified growth drivers transforming the industry
Large Cargo Business with identified growth drivers transforming the industry Air Cargo Sector in India AAHL Air Cargo Strategy Air Cargo Penetration FY 22 • Central Receiving and Distribuiton Center (MMT) (1) • Central Duty Free Supply Chain EU 16.88 US 9.52 • Domestic • Bonded Warehouses / Offices
Slide 23: AAHL Strategy for Fuel Farm
AAHL Strategy for Fuel Farm AAHL to control entire value chain from fuel storage to aircraft refueling Hydrant Refuel Vehicle Aircraft Common Fuel Farm facilities developed by AAHL Jet Fuel price & other FIC & ITP OMCs service charges – AAHL to develop Open Access Fuel Farm & ITP refueling facilitie
Slide 24: Ground Handling
Ground Handling Landside – Passenger Flow Ground Handling Activities Departing Passengers − Guiding the aircraft in & out of parking and towing with pushback tractors − Checkin counter services for the departing pax Check-in Baggage Handling Security Check Immigration Boarding Gate management till e
Slide 25: B. Non-Aero Business
04 B. Non-Aero Business
Slide 26: Key Cohorts to take forward at overall level
Key Cohorts Key Cohorts to take forward at overall level… HERDS (egg them on to spend) ALPHA (fulfil need for quiet time / VULNERABLE (make them drink / meal) feel safe and secure) Leisure Group Solo Male WT Education • Family • Work Trip • Students gatherings • Males • Holiday • Travelling vacation
Slide 27: Target Audience
Target Audience Core Target Leisure Groups Solo Male Traveler Work Solo Male Traveler Leisure Focus Cohorts F&B Chocolates Local Delicacies Eyewear Cosmetics Perfumes Magazines/Books Apparel Liquor Alleviate High Price Develop Marketing Perception Calendar Value Added Brand Niche (Deals of the Day W
Slide 28: Growth Drivers
Growth Levers Global Benchmarking of Terminal Layout – Widen reach of consumer network - Growth 18% - 1 23% 2 Focus on Land Side Retail and F&B offering for employees, visitors, meet and greet category – Growth 12% - 17% Premium Brands with Higher ATV – Premium Chocolate, Ayurveda, Spa, Florist, 3 W
Slide 29: Transformation of Passenger Journey
Transformation of Passenger Journey Mapping the entire passenger • Delivery at • International boarding journey through the Adani App gates brands • Varied category mix • International Boarding brands • Varied SHA Gate category mix • High pax • Local waiting Brands • Limited options • Passenger Chec
Slide 30: Driving Higher ATV through Premium Brands
Driving Higher ATV through Premium Brands Category ATV Brand ATV Premium Apparel 4,000 INR 12,000 INR 200% Bakery 500 INR 750 INR 50% Sweets 900 INR 1,500 INR 66% Foot-wear 5,000 INR 8,500 INR 70% Luggage 6,500 INR 11,000 INR 70% Perfumes 10,000 INR 16,000 INR 60% Transformation of Brand Mix – Drivi
Slide 31: Duty Free Potential
Duty Free Potential Growth Drivers • Business Centric Approach - Duty Free Potential at Mumbai Airport is close to USD 8 Billion. • DF business has been internalized through JV (Gross margin of more than 60%) • JV has been extended at other Adani airports to capture the value chain Current sale at d
Slide 32: Case Study: Area Monetization
Case Study: Area Monetization Expansion of Commercial Area : Area (000'Sq Mtr) 47 28 21 17 14 9 2 4 1 1 2 1 1 2 0 0 Mumbai AMD LKO IXE JAI GAU TRV NMIAL 2022 2025 Expansion of Commercial Green filed Identification of Area existing area outside project dark spaces optimization terminals terminal Expa
Slide 33: Case Study – Leveraging customer's Dwell Time
Case Study – Leveraging customer’s Dwell Time [Greenfield] 1 2 3 4 Duty paid Relay Female Oriented Fashion & Relaxation zone; High ATV Premium fashion boutique cluster High ATV Jewelry; High ATV International brands High ATV/Impulse category Entry 1 7 8 2 6 3 9 Exit 8 5 4 9 8 7 6 5 Feel good & last
Slide 34: Case Study – Area Optimization - Brownfield
Case Study – Area Optimization - Brownfield Low RPSM Area SCM High RPSM Area High RPSM Area Existing philosophy Adani philosophy Monetized all 3 elements Outlet Storage
Slide 35: Unlocking Potential – Targeting 5X Growth
Unlocking Potential – Targeting 5X Growth Brand and Category Non- Mix basis travelling Pax Profile Marketing Customers Initiatives Digital Channel Internaliza tion of Identificati High on and Margin Organic Monetariz Growth Businesses Base case ation of 2022-23 New Area Growth 1.5 – 1.5 – 0.5 – 0.5
Slide 36: C. City Side Development
04 C. City Side Development
Slide 37: City Side Development (CSD): Demand Scenario Case Study (1/3)
City Side Development (CSD) : Demand Scenario Case Study (1/3) A. Jaipur - Banquet & Convention Center B. Ahmedabad - Hotels Market : Market : Destination Weddings: Globally exotic locations for marriage and financial capital - diverse tourism opportunities coupled with a booming industrial conferen
Slide 38: City Side Development (CSD): Demand Scenario Case Study (2/3)
City Side Development (CSD) : Demand Scenario Case Study (2/3) India’s largest & most advanced aquariums Best in class technology driven Top Golf – Worlds best technology driven Virtual Reality parks Golf Range Hospitality driven by Top Hotel Brands Iconic World Trade Center Tower/s Visually distinc
Slide 39: City Side Development (CSD): Demand Scenario Case Study (3/3)
City Side Development (CSD) : Demand Scenario Case Study (3/3) Legoland Madame Tussauds Family Entertainment Center Rainforest Cafe Themed Restaurant Experience Studio
Slide 40: Case Study: 2 Nights at Mumbai CSD Area
Case Study: 2 Nights at Mumbai CSD Area Approx. Dwell Time S.I. Activity Day Time in mins Arrival in Mumbai & 1 1 120 Mins 11 AM to 1 PM Hotel Check In 2 Lunch at Hotel 1 90 Mins 1 PM to 2.30 PM 3 Madame Tussauds 1 90 Mins 2:30 PM to 4 pm 4 VR-Entertainment 1 90 Mins 4 PM to 5:30 PM 5 Shopping, Unwi
Slide 41: CSD in Adani Airports Portfolio: Phase 1 Development Mix
City Side Development (CSD) in Adani Airports Portfolio: Phase 1 Development Mix Hospitality Retail Consolidated Office Family Entertainment Flexi Office Aquarium 5 Star Retail 3.4 mn sq ft 5 Locations, 0.5 mn sq ft 6 Hotels 1,700 keys 7 Retail Locations Avg. Rent INR 180 sq ft per 2.1 mn sq ft 2.6
Slide 42: City Side Development & Operation Model
City Side Development & Operation Model Design brief Partnership with Conceptualization & final design Development AAHL Business Operator Architect or Specialized firm AAHL e.g Revenue Mechanism Segments Operations By Revenue for AAHL Revenue for Operator Management / Marketing fees hotel Hotel Hote
Slide 43: Adani Airports: Initiatives to Transform Airports
05 Adani Airports : Initiatives to Transform Airports
Slide 44: Key Initiatives at Platform Level: Aero
Key Initiatives at Platform Level : - Aero 1 2 3 4 5 Offer distinct value Develop Development of Drive higher mix of Grow domestic pax multi-airport proposition to comprehensive international through regional hub system airlines support system for passengers development airlines comprehensive airlin
Slide 45: Key Initiatives at Platform Level: Non-Aero
Key Initiatives at Platform Level : - Non-Aero 1 2 3 4 5 6 Maximize Commercial Tie-up Service Increase Access to all Leverage Digital for Enable Consumer Customized Offerings Potential of Partnership with and Offering Additional Revenue Experience at Airport Passenger Offerings Concessionaires Strea
Slide 46: Key Initiatives at Platform Level: Cargo
Key Initiatives at Platform Level : - Cargo Adani Airports to Build the most integrated air cargo ecosystem and leading player in the Industry. Industrial Clusters in Core and shared catchments Develop cargo demand from core & shared catchments Develop integrated cargo terminal and warehousing & log
Slide 47: Adani Airports: ESG embedded into Business Philosophy
06 Adani Airports : ESG embedded into Business Philosophy
Slide 48: Overview of ESG Commitments and Targets
Overview of ESG Commitments and Targets Environment Social Governance 1. Achieve carbon neutrality in 1. 100% coverage of employees 1. 100% compliance with FY 24 in ESG-specific training regulatory requirements program 2. 100% transition to green 2. Zero corruption and electricity in FY 24 2. Mainta
Slide 49: Adani Airports - Green Path
Adani Airports - Green Path Scope-1 & 2 CO2 (Ton) Milestones for 100% green Electricity (Oct-Dec 22) (Jan-Mar 23) 73% Reduction Vendor Commencement Finalization of Project 110,080 64% Reduction 38,528 27,520 (Jan-Mar 24) Completion of 2022 2025 2027 Floating RFP LOI Issuance Project of (Jul-Sep 22)
Slide 50: Adani Airports: Futuristic Airport Platform
07 Adani Airports : Futuristic Airport Platform
Slide 51: Passenger Journey
Passenger Journey Book Ticket, Taxi Luggage & Pranaam Service F&B Retail Lounge Duty Free*/Paid Online booking Entry at Ahmedabad through Adani Hotels One App Fine Dine Retail Plaza Meet and Greet Area Advertisement Advertisement CSD Area Terminal Area Exit Take delivery at Lucknow Airport Arrival G
Slide 52: Adani Airport: looking into the future, what is in it for consumers
Adani Airport: looking into the future, what is in it for consumers CX Team Technology & Quality Operations Digital Consumer Experience • Drive Customer Centricity in SUPER APP by • Introducing Pranam Service for taking care of offering all the services in a platter to the consumer from land to air.
Slide 53: Adani Airports: Futuristic Airport Network
Adani Airports : Futuristic Airport Network Digital Way of Expanding Network of Operations Airports • AOCC, New Technologies (IoTs, Sensors, big data) • Prioritize domestic airports in the • Smart Building Solutions and Asset Management NMP pipeline (25 New Airports) • Enhancement of overall efficie
Slide 54: Thank You
Thank You
Slide 55: Annexures
adani Annexures
Slide 56: Cargo Strategy Summary across Airport Network
Cargo Strategy Summary across Airport Network ✓ Existing facility AMD LKO IXE JAI GWA TRV MIAL NMIA ✓ Planned facility Integrated Cargo Terminals ✓ ✓ ✓ ✓ ✓ ✓ ✓ Specialised Services offered / planned Dedicated freighter bays ✓ ✓ ✓ ✓ ✓ Air Freight Stations ✓ ✓ ✓ ✓ Multimodal connectivity to cargo term
Slide 57: Control Period and Tariff order timelines for AAHL Airports
Control Period and Tariff order timelines for AAHL Airports Past Control Periods Current Control Period Airport Control Period Date of tariff order Airport Control Period Status of tariff order FY12-FY16 17 Apr 2015 Ahmedabad FY22-FY26 Petition filed Ahmedabad FY17-FY21 23 Jul 2018 Lucknow FY22-FY26
Slide 58: Operating Model 2.0
Building the Strategy Levers Vision 5x non-aero revenue Operating Model 2.0 Growth levers Increase Widen Increase Increase ATV customer passenger Penetration % base throughpu t Integrate Digital in DNA Enablers Put Customer First Leverage Core Strengths
Slide 59: Joint Business Planning with Concessionaires
Joint Business Planning with Concessionaires • Marketing calendar (EOSS, Festive sale) • Concessionaire engagement program (Store wars) 48% • AOP planning with concessionaire (Roll out the incentive to sales staff accordingly) 44% • Implementation of RLCC (Strong controls) • Implementation of EPOS (
Slide 60: Growth Drivers: MIAL to Double its IPP in next Years
MIAL to Double its IPP in next 5 Years Growth Drivers • Expected IPP in 2022-23 • Space monetization – 28 K Sq Meter of commercial area to be increased to 47 K is INR 250 (USD 3.6) Sq meter • Same is expected to be • Brand mix - Working with industry experts to bring international brands at Mum Airp
Slide 61: Case Study – Leveraging right audience
Case Study – Leveraging right audience Now: 2025: Leveraging the growth of high spending 40% 50% target audience through right brand mix Solo Women Group Women Traveler Traveler Women Solo Women Student work Traveler Traveler
Slide 62: Help Improving the Passenger Experience with Value Added Services – Benchmarking
Help Improving the Passenger Experience with Value Added Services – Benchmarking Theme Initiatives Global Benchmarking • Duty Free : Expand SKU, Introduce fashion & luxury products in-line - MIAL: SIN, DXB, FRA (70% L&T, with European airports P&C) • Aggressively track and communicate competitive du
Slide 63: Help Improving the Passenger Experience with Value Added Services – Benchmarking
Help Improving the Passenger Experience with Value Added Services – Benchmarking Theme Initiatives Global Benchmarking • Create integrated, comprehensive and well-designed asset - In addition to renowned airports ecosystems across hospitality (Hotel + MICE), retail and healthcare like SIN, AMS, CDG,
Slide 64: Airport City Side Development
Airport City Side Development Type of Visitor Aspirational, Futuristic, Unique, and Interactive Spaces Development Entertainment destinations: One of Dynamic & Flexible Hospitals: Hospitals with quality facilities Facilities Development India’s largest & best indoor and providing state of the art he
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