Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — Investor Presentation (July 2019)
44 slides from Adani Ports & Special Economic Zone's investor presentation, July 2019
Slide 1: Adani Ports and SEZ Limited Investors Presentation
Adani Ports and SEZ Limited Investors Presentation
Slide 2: Vision
Vision To achieve 400 MMT of throughput by FY 25 For this APSEZ would pursue both organic and inorganic growth opportunities 2
Slide 3: Contents
Contents 1 Company Profile 2 Key Financials 3 FY 20 Outlook 4 ESG 5 Appendix 3
Slide 4: 1. Company Profile
1. Company Profile
Slide 5: APSEZ: A Leader In Ports And Logistics Infrastructure Sector
APSEZ: A Leader In Ports And Logistics Infrastructure Sector Leading Developer of • India’s benchmark to global ports in terms of strengths, capacities and Ports & Related operations Infrastructure • 9 ports in operation, 2 under development and 3 ICDs Market Share 21.2%1 • Diversifying and enhancin
Slide 6: Unique and Integrated Business Model
Unique and Integrated Business Model Ports Logistics SEZ (at Mundra) Total installed capacity of 395 mmtpa 20 year license to operate rails Land bank of over 8,481 hectares Concession assets with free pricing Enhancing connectivity between ports and Integration with port, developing indu
Slide 7: Turning Around Acquisitions
Turning Around Acquisitions Dhamra: Well Positioned to Emerge as Hub for East India Kattupalli: Successful Commissioning Cargo Volumes Cargo Volumes (MMT) (MMT) 8.9 20.7 7.5 5.5 11.1 1.0 FY13 FY19 FY16 FY17 FY18 FY19 Acquired on 22 June 2014 and turned around in the 1st year of Started as O&M op
Slide 8: Robust Growth In Diversified Cargo Volumes
Robust Growth In Diversified Cargo Volumes Our Reach Fast Growing Market Share in India2 21.2% 19.3% 19.3% Dahej 395 MMT Kilaraipur Total Installed FY17 FY18 FY19 14 Capacity MMT In Total Cargo Patli Kandla 14 Robust Growth in Volumes (MMT) MMT Kishangarh Mundra 207.7 252 MMT 180.0 168.7 Dhamra Hazi
Slide 9: Port Assets At Optimal Utilization Of Existing Capacity
Port Assets At Optimal Utilization Of Existing Capacity Installed Port(1) Utilization(2) Cargo Mix Key Highlights Capacity 137 Reaching New Heights 252 Mundra MMT • Mundra Port was ranked first in terms of total cargo handled across all Non-Major Ports and MMT Major Ports in India for FY19 (55.2%) 2
Slide 10: Logistics
Logistics Connecting and Simplifying the Supply Chain 10
Slide 11: Logistics Snapshot
Logistics Snapshot Logistics Warehousing 47 Trains - Parks at key - CFS, FTWZ, container, demand Bonded, & bulk, grain centers Domestic Domestic Inland & Grain Silos for containers Coastal Grain storage and Waterways Tanktainers 9 Sea Ports, Multi-modal with Dry, First-Mile & Transport Container & L
Slide 12: Logistics: End to End Connectivity
Logistics: End to End Connectivity Inland Container Depots EXIM Yard ICD – Partner Facilities and Acceptance Points Network Adani Agri Transportation Facilities Other Services Rail Logistics Parks Technology Platform Stuffing / De- stuffing End-to-end Road Warehousing Integrated Cargo Aggregation Lo
Slide 13: Adani Logistics – by 2023
Adani Logistics – by 2023 15+ 100+ Multi-modal Rakes Logistics Parks 5 Mn SqFt+ 2 Mn Sqft Warehouse Space Cold Storage 1.5 MMT+ 50K MT Air Cargo Silo Capacity 25+ Barges (Inland Waterway) 13
Slide 14: 2. Key Financials
2. Key Financials
Slide 15: Robust Earnings and Return Metrics
Robust Earnings and Return Metrics Revenue from Operations Consolidated EBITDA (INR Cr) 11323 (INR Cr) 7145 CAGR of 19% 7067 CAGR of 18% 10925 5692 8439 7109 4574 6152 3902 4830 2919 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Profit for the Year Return on Capital Employe
Slide 16: Strong Balance Sheet and Improved Leverage
Strong Balance Sheet and Improved Leverage Debt / Net Worth(1) 1.6 Net Debt / EBITDA(2) 1.6 (x) (x) 4.4 Within Desired 1.5 4.2 4.3 Level of 3-3.5x 1.2 1.1 3.4 1.0 2.9 2.5 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Borrowings Profile EBITDA / Finance Cost (years) (x) 5.1
Slide 17: APSEZ: Compelling Investment Thesis
APSEZ: Compelling Investment Thesis Proven credentials as proxy to India’s infrastructure growth Well positioned to leverage strong macro fundamentals of India Pan India Presence allows to capture addressable growth market and De-risks the portfolio. Integrated business model which includes SEZ, log
Slide 18: Increased focus on return to shareholders
Increased focus on return to shareholders Changes in Shareholder Return Policy APSEZ’s recently revised its dividend and shareholder return policy to be consistent with the long term strategic growth objectives of the company: 1. APSEZ has a consistent growth in its cash flow and thus endeavors to
Slide 19: 3. Outlook
3. Outlook
Slide 20: Well Positioned To Leverage India’s Macro Tailwinds
Well Positioned To Leverage India’s Macro Tailwinds India Total Import – Export India Cargo Growth Government Focus on Ports India GDP Growth expected Value expected Expected to be 8.6% - 10.9% Stable Regulatory to be 7.7% over 2018-2023(1) to grow at 8.2% CAGR over over the FY18 to FY25 Environment
Slide 21: Financial Outlook – FY20
Financial Outlook – FY20 • Revenue growth of 12%-14%. Revenue/EBIDTA • EBIDTA growth of 14%-16% • Expected ROCE to be in the range of 14%-15% • Port Revenue expected to grow by 1.5%-2% on per MT Port Revenue & EBIDTA • Port EBIDTA growth of 16%-18%. • SEZ Port development income in the range of Rs.8
Slide 22: 4. Environment Social Governance
4. Environment Social Governance
Slide 23: Governance and strategic oversight
Governance and strategic oversight • Sustainability issues are overseen by the Sustainability and CSR Committee of the Board, working in cooperation with the Risk and the Audit Committees, and the Board as a whole. • The Committee considers and oversees the management of key sustainability issues, s
Slide 24: Corporate Social Responsibility – Major Initiatives
Corporate Social Responsibility – Major Initiatives 1) SAKSHAM: Aims to make 3 lakh Indian youth skilled by 2022. ASDC has more than 30 centres across the nation for facilitating skill development through various courses. 5027 aspirants enrolled under various ASDC courses, new projects 2) Udaan:
Slide 25: Corporate Social Responsibility – Adani Foundation
Corporate Social Responsibility – Adani Foundation 11566 students and teachers from 194 schools and institutes visited the Ports under the Udaan Project. Udaan is a project that involves exposure visits for school and college students to Business units (Ports, Power Plants & Wilmar) to inspire the
Slide 26: Corporate Social Responsibility – Adani Foundation
Corporate Social Responsibility – Adani Foundation Adani employees adopt education of 704 children of migrant labourers in Mundra: Adani Group employees adopted 704 children of migrant labourers to ensure quality education for the children. The children are now studying in Hindi medium school. They
Slide 27: 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
Slide 28: 5. Appendix
5. Appendix
Slide 29: FY 19 Performance
FY 19 Performance Source: Company Filings, Bombay Stock Exchange
Slide 30: APSEZ – Operational Performance Highlights FY 19
APSEZ – Operational Performance Highlights FY 19 Operational Highlights • Record cargo throughput – Volume of 208 MMT – 15% Growth • Growth across eight ports in India - Mundra 13%, Hazira 16%, Kattupalli 18%, and Dahej 30% • Our terminals at major ports handles 12 MMT (127% growth) • All segments o
Slide 31: APSEZ – Financial Performance Highlights FY 19
APSEZ – Financial Performance Highlights FY 19 P & L Highlights • Port Revenue is at Rs.8,897 cr against Rs.7,393 cr up Rs.1,504 cr. 20% growth over FY18 • Port EBITDA is at Rs.6,053 cr against Rs.5,144 cr up Rs.909 cr. 18% growth over FY18 • Logistics EBITDA grows by 20% from Rs.76 cr to Rs.90 cr i
Slide 32: Consolidated Financial Performance – FY ‘19
Consolidated Financial Performance – FY ‘19 (Rs. in Cr.) Revenue 7145 EBIDTA** 7067 11323 10925 Revenue* has grown by 15% (Excluding SEZ income of Rs.769 cr. in FY19 vs. Rs 2481 cr in FY 18) FY 18 FY 19 FY 18 FY 19 EBITDA** has grown by 17% PBT PAT (Excluding SEZ EBITDA of Rs.665 5234 4,006 cr. in F
Slide 33: Revenue – Segment Wise Break up FY ‘19
Revenue – Segment Wise Break up FY ‘19 (Rs. In Cr.) FY 18 FY 19 411 452 210 225 827 583 769 2,481 7,393 8,897 Ports SEZ Logistics Australia Other revenue Ports SEZ Logistics Australia Other revenue Total Revenue – Rs.11,323 cr. Total Revenue – Rs.10,925 cr. Port Revenue – Rs.7,393 cr. Port Revenue –
Slide 34: EBIDTA - Segment Wise Break up FY 19
EBIDTA* - Segment Wise Break up FY 19 (Rs. In Cr.) FY 18 FY 19 36 210 90 35 225 76 665 1679 5144 6053 Ports SEZ Logistics Australia Other revenue Ports SEZ Logistics Australia Other revenue Total EBIDTA – Rs.7,145 cr. Total EBIDTA – Rs.7,067 cr. Port EBIDTA – Rs.5,144 cr. Port EBIDTA – Rs.6,053 cr.
Slide 35: Key Ports & Logistic Vertical Performance FY ’19
Key Ports & Logistic Vertical Performance FY ’19 (Rs. In Cr.) Kattupalli / Particulars Mundra Hazira Dahej Dhamra MIDPL 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 Cargo (MMT) 137 122 20 17 9 7 21 21 9 8 Operating Revenue 5,336 6,534 1,106 962 421 335 1,106 931 21
Slide 36: Debt Profile & Key Rating Ratios – FY 19
Debt Profile & Key Rating Ratios – FY 19 (Rs. In Cr.) Net Debt Maturity profile of Long Term Debt 54% Description Mar'2018 Mar'2019 Variance Long Term Borrowings 20,629 19,883 (746) Short Term Borrowings 1 6,188 6,187 34% Current Portion of Long Term Borrowings 802 1,116 314 Gross Debt 21,432 27,188
Slide 37: Key Return Ratios & Cash Flow
Key Return Ratios & Cash Flow (Rs. in cr.) Ratios FY 17 FY 18 FY 19 ROCE 12.1% 15.8% 13.5% ROE 24.9% 19.0% 17.6% Net Debt /EBIDTA 3.4x 2.5x 2.9x • Continue to maintain net debt to EBITDA within our desired level of 3 to 3.5x • Investment in new assets viz. Kattupalli, Dhamra and Terminals at Major P
Slide 38: ESG Performance
ESG Performance Source: Company Filings, Bombay Stock Exchange
Slide 39: Safety Performance
Health and Safety 25 Safety Performance 0.29 0.35 0.26 0.3 20 0.22 0.21 0.25 0.18 0.18 15 0.2 0.15 10 0.06 0.1 0.03 5 0.02 0.05 2 5 1 14 18 13 16 23 14 0 0 FY 17 FY18 FY 19 FY 17 FY18 FY 19 FY 17 FY18 FY 19 Work Related Injury (Fatality) High Consequence Work Recordable Work Related Related Injuries
Slide 40: Energy - Performance
Climate Change and Energy Energy - Performance 14356 3000000 20000 18851 15503 0 18000 44610 2500000 1748 16000 52851 14000 9906 2000000 9071 12000 6246 9738 1500000 10000 3296 8000 1000000 0 1743 6000 7043 4000 500000 15806 2000 782276 681000 464162 305201 2565281 2342188 2295625 1850402 0 0 FY 16
Slide 41: GHG Emissions - Reduction
Climate change and energy GHG Emissions - Reduction 2232 350000 2500 2136 2060 2090 300000 1977 1781 2000 250000 1382 1218 1500 200000 165051 150000 175568 176616 1000 74438 66794 65279 100000 193817 67577 138744 123270 500 50000 94278 88245 92383 113668 51064 76353 0 0 FY 16 FY 17 FY 18 FY 19 FY 16
Slide 42: Reduction of Water Withdrawal
Water Reduction of Water Withdrawal 21% 9% 32% 16% Third-party withdrawal to total water 18% withdrawal (%) 35% 3% 4% 5% 15% 27% 2% 9% 6% 16% 54% 11% 9% 67% 44% 15% 40% Public Utility Surface Water Ground Water Sea Water Third Party Private Utility Wastewater from other Industries 422 ML Wastewater
Slide 43: Water Consumption
Water Water Consumption 6000 40 37 35 5000 31 30 4000 24 18 20 25 3000 20 15 2000 13 11 9 5008 10 3648 2464 3508 3254 804 896 992 1000 5 0 0 FY 16 FY 17 FY 18 FY 19 FY 16 FY 17 FY 18 FY 19 Standalone Consolidated Consumption (ML) Intensity (ML/MMT) Water intensity improved by 31% from Water intensi
Slide 44: Growth
Growth adani Goodness
Adani Ports and Special Economic Zone — Investor Presentation (July 2019) on 6ix