Allcargo Logistics Limited · NSE:ALLCARGO
Allcargo Logistics — Q1 FY24 Earnings Presentation
34 slides from Allcargo Logistics's earnings presentation, Aug 10, 2023
Slide 1: Exchange filing cover letter
August 10, 2023 To, To, BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Fort, Bandra Kurla Complex, Mumbai – 400001 Bandra (E), Mumbai - 400 051 BSE Scrip Code: 532749 NSE Symbol: ALLCARGO Dear Sir/Madam, Sub: Investor Pre
Slide 2: Investor Presentation August 2023
INVESTOR PRESENTATION August 2023
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Allcargo Logistics Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 4: Business Segments
BUSINESS SEGMENTS Simplified business structure post demerger ALLCARGO LOGISTICS LIMITED International Supply Chain India Business 50.2% Gati Ltd 70% Allcargo Belgium 30% & other ECU Allcargo Supply Chain GESCPL (earlier Gati KWE) Worldwide subsidiaries International Supply Chain Express & Contract
Slide 5: Key Financial Highlights – Consolidated
KEY FINANCIAL HIGHLIGHTS – CONSOLIDATED Revenue Combined EBITDA Debt ₹ 3,271 Crs ₹ 161 Crs ₹ 1,061 Crs Gross Debt -40% -4% -59% -8% -2% 1% 16% 2% ₹ 1,049 Crs YoY QoQ YoY QoQ Cash and Curr. investments Particulars International Supply Chain Contract Logistics* Express (GESCPL) ₹ Crores Q1FY24 Q1FY23
Slide 6: Key Business Highlights
KEY BUSINESS HIGHLIGHTS Weak macroeconomic outlook reflected in subdued global trade activity for the industry. China’s overall exports for the month of July declined 14.5% YoY while the imports are down 12.4% YoY. Similarly, India’s total merchandise trade is down 14% YoY in Q1FY24. Our strateg
Slide 7: Key Annual Financial Highlights
KEY ANNUAL FINANCIAL HIGHLIGHTS 17,643 1,305 16,333 1,059 Revenue EBITDA (₹ Cr) 8,449 (₹ Cr) 456 International Supply ALLCARGO LOGISTICS (ACL) Chain FY21 FY22 FY23 FY21 FY22 FY23 72 1,469 1,242 38 EBITDA 36 Revenue EBITDA 1,012 (₹ Cr) (₹ Cr) Express (GESCPL) FY21 FY22 FY23 FY21 FY22 FY23 344 341 136
Slide 8: Exceptional Success in Acquisitions & Turnaround
EXCEPTIONAL SUCCESS IN ACQUISITIONS & TURNAROUND ECU International (Asia), South Asia Terminals, Allcargo Belgium N.V., Administradora House Line C.A., AGL N.V., Asia Line, CELM Logistics SA de CV, China Consolidated Company, CLD Compania Logistica de Distribucion SA., Contech Transport Services, Co
Slide 9: Sustainability Initiatives – Electric Vehicles & Alternative Fuels
SUSTAINABILITY INITIATIVES – ELECTRIC VEHICLES & ALTERNATIVE FUELS Electric vehicles at Gati for Swedish Electric Trucks at Nodicon Terminal Gati and Schneider partner for eco- giant IKEA friendly express logistics solutions • Nordicon has been taking forward strides with EVs in Sweden • In addition
Slide 10: International Supply Chain
Ecu allcarco WORLDWIDE LOGISTICS oe . tax ae ey was 2 ae s . oS wa [% a. =: ia" . INTERNATIONAL SUPPLY CHAIN |
Slide 11: Global Leader in International Supply Chain Segment
GLOBAL LEADER IN INTERNATIONAL SUPPLY CHAIN SEGMENT Global #1 in LCL consolidation operating the SCALE CREATES largest global LCL network with 15% market FLYWHEEL OF SUCCESS share in operating markets 2,500 direct trade lanes, key value driver for small & large freight forwarders Distinct value prop
Slide 12: Uniquely Positioned with Unmatched Digital & Operational Capabilities
UNIQUELY POSITIONED WITH UNMATCHED DIGITAL & OPERATIONAL CAPABILITIES Conventional players have operating network Digital start-ups lack operational but lack digital capabilities footprint and scale FCL LCL Air Industry is converging …leading to stricter requirements towards an increasing for real t
Slide 13: ECU 360 Always Moving Forward
ECU 360 ALWAYS MOVING FORWARD ▪ Mature ▪ Nascent ▪ Does not exist 2020 2023 Features Trade Lanes Customer Profile Registration Process Speed of Quote Reply Booking Track and Trace – automatic Documentation Management Customized Reports & Analytics API Customs Module Knowledge Portal (newsletters etc
Slide 14: Digital Framework for Logistics
DIGITAL FRAMEWORK FOR LOGISTICS Recruitment Intelligent Analytics & Ecosystem Integration with Physical RDA end-to-end Automation Workflows Internet / IoT & RPA recommendation engines service offering Knowledge transfer / Data Aggregation Tools assessments for enhanced visibility ENABLE ENHANCE ENGE
Slide 15: How AI & Automation Are Creating a Unique Global Network
HOW AI & AUTOMATION ARE CREATING A UNIQUE GLOBAL NETWORK AND OPERATING RHYTHM Real time prescriptive yield intelligence Sales CRM 2.0 (Optimisation & Gamification) Customized dynamic Customized and Real time pricing focused sales supply visibility push ECU360 (Growth & customer Customer Centricity d
Slide 16: ISC Yield & Operational Metrics
ISC YIELD & OPERATIONAL METRICS Container Utilization Index (TTM) 100 International Supply Chain 92 Metric Q1FY23 Q1FY24 LCL Volume (‘000 cbm) 2,374 2,242 Jul-22 Aug-22 Sep-22 Feb-23 Mar-23 Oct-22 Jan-23 Apr-23 Jun-23 May-23 Nov-22 Dec-22 FCL Volume (‘000 TEU) 158 143 Container Utilization Index ISC
Slide 17: International Supply Chain - Key Financial Trends
INTERNATIONAL SUPPLY CHAIN - KEY FINANCIAL TRENDS Volumes Revenue (₹ Cr) LCL (‘000 cbms) FCL (‘00 TEUs) 17,643 16,333 9,089 9,050 7,643 5,940 6,045 8,449 4,871 5,043 2,373 2,112 2,242 2,979 2,823 1,574 1,455 1,430 FY21 FY22 FY23 Q1FY23 Q4FY23 Q1FY24 FY21 FY22 FY23 Q1FY23 Q4FY23 Q1FY24 EBITDA (₹ Cr)
Slide 18: Express & Contract Logistics
EXPRESS & CONTRACT LOGISTICS
Slide 19: Network Leader in Indian Supply Chain
NETWORK LEADER IN INDIAN SUPPLY CHAIN Jammu & Kashmir Himachal Pradesh UNIQUE COMBINATION OF Uttarakhand Punjab EXPRESS + CONTRACT LOGISTICS Haryana Delhi Jharkhand Uttar Pradesh 99% Gurgaon OF PINCODES^ Bihar SERVICED Jaipur Assam Rajasthan Guwahati 150+ Ahmedabad WAREHOUSE & Baroda West Bengal DIS
Slide 20: Express - Digital Backbone Aiding Decision Making
EXPRESS - DIGITAL BACKBONE AIDING DECISION MAKING Back-end Front-end Pick Up & Delivery Hub CRM system Data Science Automation Automation AI-led GEMS* 2.0 Sales Digital Network Design Acceleration Payments 19
Slide 21: Express Business - Key Financial Trends
EXPRESS BUSINESS - KEY FINANCIAL TRENDS GESCPL - Volumes (‘000 MT) GESCPL - Revenue (₹ Cr) 1,133 1,469 966 1,242 781 1,012 279 285 292 365 356 367 FY21 FY22 FY23 Q1FY23 Q4FY23 Q1FY24 FY21 FY22 FY23 Q1FY23 Q4FY23 Q1FY24 GESCPL EBITDA (₹ Cr) GESCPL PBT (₹ Cr, Pre-exceptions) 5 72 2 38 36 -5 -8 19 -10
Slide 22: Contract Logistics - Key Trends & Updates
CONTRACT LOGISTICS - KEY TRENDS & UPDATES Pan India Presence Key Update: CORE CAPABILITIES • The Contract Logistics business got transferred to our 100% subsidiary Allcargo Supply Chain Private Limited on 17 May 2023. The Company bought this remaining 38.87% stake in the JV ACCI for a consideration
Slide 23: Contract Logistics – Key Industries Catered
CONTRACT LOGISTICS – KEY INDUSTRIES CATERED Revenue Mix (Q1 FY24) Chemicals, Food & Pharma 35-40% E-commerce 35-40% Auto/Industrial 18-20% Chemical, Food & Pharma Warehousing E-commerce & Retail Solutions Automotive & Engineering Solutions State of the art warehousing space Fully and semi-automa
Slide 24: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM
Slide 25: Board of Directors
BOARD OF DIRECTORS SHASHI KIRAN SHETTY ADARSH HEGDE MOHINDER PAL BANSAL Founder & Executive Chairman Managing Director Non- Executive Independent Director A pioneer in logistics industry and a visionary, first Associated with Allcargo Logistics since inception and A CA with 25+ years of experience i
Slide 26: Management Team - Allcargo Logistics
MANAGEMENT TEAM - ALLCARGO LOGISTICS RAVI JAKHAR DEEPAL SHAH Group Chief Strategy Officer Group Chief Financial Officer A thought leader with a unique blend of entrepreneurial, management A proven leader with over 20 years experience in diverse fields such as and advisory experience across diverse s
Slide 27: Management Team - ECU Worldwide
MANAGEMENT TEAM - ECU WORLDWIDE TIM TUDOR DMITRIY IOFFE SIMON SACHU CEO CCO LCL CCO, Global Air, FCL & Procurement An industry veteran with three decades of experience Highly recognised commercial leader with rich experience An industry veteran with 20+ years He served as in shipping and logistics i
Slide 28: Management Team – Gati
MANAGEMENT TEAM – GATI PIROJSHAW (PHIL) SARKARI ANISH MATTHEW MEHERNOSH N. MEHTA Chief Executive Officer Chief Financial Officer Chief HR Officer CA by profession with decades of leadership Strategic leader with 19+ years of experience in Rich and diversified experience of 19+ years across experienc
Slide 29: Consolidated Income Statement - Quarterly
CONSOLIDATED INCOME STATEMENT - QUARTERLY Particulars (₹ Cr) Q1FY24 Q1FY23 Y-o-Y Q4FY23 Q-o-Q Revenue from Operations 3,271 5,474 -40% 3,395 -4% Expenses 3,132 5,114 3,252 EBITDA 139 360 -61% 143 -3% EBITDA Margin (%) 4.2% 6.6% 4.2% Other Income 20 16 20 Finance cost 24 18 19 Depreciation and amorti
Slide 30: Appendix
LOGISTICS APPENDIX |
Slide 31: Unit Economics of ISC Business
UNIT ECONOMICS OF ISC BUSINESS Key Drivers FCL LCL 1) Macroeconomic environment 1) Macroeconomic environment Volume 2) Market share 2) Market share 1) Procurement 1) Procurement capability capability 1) Container 1)utilization Container utilization 4) Value addition Yield 2) Trade lane2)mix Trade la
Slide 32: LCL Yield Drivers
LCL YIELD DRIVERS Container utilization: Higher utilization helps achieve operating leverage. Ocean freight cost forms around 35% of revenue on a normalized basis. For every 1% higher or lower utilization from normalized levels, the revenue impact is 1% while the Gross profit impact is 2% higher o
Slide 33: FCL Yield Drivers
FCL YIELD DRIVERS Procurement capability: Our procurement capabilities are linked to the volumes sourced. As the Company gathers scale in volumes, the procurement capabilities improve and so does the negotiation power. Procurement capability is also strengthened through our improved and deep vendo
Slide 34: Thank You
Thank You Investor Relations: Himanshu Yadav +91 95386 19013 himanshu.yadav@allcargologistics.com Sanjay Punjabi +91 9821080048 sanjay.punjabi@allcargologistics.com Mr. Jigar Kavaiya +91 99206 02034 Jigar.Kavaiya@sgapl.net Mr. Sagar Shroff +91 98205 19303 Sagar.shroff@sgapl.net 33