Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS

Adani Ports & Special Economic Zone — FY2020 Earnings Presentation

50 slides from Adani Ports & Special Economic Zone's earnings presentation, May 2020

  1. Slide 1: FY20 Adani Ports and SEZ Limited

    FY20 Adani Ports and SEZ Limited

  2. Slide 2: Contents

    04-07 Group Profile 08-13 Company Profile 14-18 Operational and Financial Highlights FY20 Financial Performance FY20 19-25 Financial Outlook FY21 26-29 ESG 30-31 Annexures 32-50

  3. Slide 3: Group Profile

    adani Ports and Logistics Group Profile

  4. Slide 4: Adani Portfolio

    Transport & Logistics Energy & Utility Portfolio Adani Portfolio Adani • Philosophical shift fromB2B 63.1% 100% 75% 75% to B2C businesses– APSEZ SRCPL ATL AGEL • AGL – Gas distribution Port & Logistics Rail T&D Renewables network to serve key geographies across India 100% 75% 37.4% • AEML – Electric

  5. Slide 5: Adani infrastructure development and operations model

    Development Operations Post Operations Phase Origination Site Development Construction Operation Capital Mgmt Analysis & Site acquisition Engineering & Life cycle O&M Redesigning the market design planning capital structure of intelligence Concessions the asset and regulatory Sourcing & Asset Activi

  6. Slide 6: Successfully applied across infrastructure and utility platform

    Successfully applied across Infrastructure & utility platform Development at large scale & within time and budget India’s Largest Longest Private 64 8 MW Ultra Mega Largest Single Location Commercial Port HVDC Line in Asia Solar Power Plant Private Thermal IPP (at Mundra) (Mundra – Dehgam) (at Kamut

  7. Slide 7: APSEZ key strengths

    Large Scale Strategic Locations User Driven • Nine operating Ports, ~410 MMT • Hinterland reach of 60%-70% • LNG and LPG Terminals at Development of augmented capacity in India. Dhamra and Mundra. • Targeting East and West Coast Parity Best in Class Efficiency Symbiotic Integration ESG • In Containe

  8. Slide 8: Company Profile

    adani Ports and Logistics Company Profile

  9. Slide 9: 9 Ports serving vast economic hinterland of the country

    Cargo trajectory assimilates West Coast East Coast Sticky Cargo Diversification Capacity Capacity 327 MMT 99 MMT Dahej 14 MMT Kandla 14 Coal 32% Crude 11% Constitutes ~60% of Cargo MMT Container 41% Others 16% volume Mundra 264 MMT Achieving East Coast - West Coast Parity Dhamra 45 FY20 Hazira MMT F

  10. Slide 10: Case Study: Customer Centric End to End Logistics

    Technology driven multi-modal Particulars FY19 FY20 Logistic Solutions Rakes 20 60 Infrastructure Multi-Modal Rail Volume 150,942 325,067 (TEUs) Logistics Park Rail Logistics Parks 4 5 Grain Silos Terminal 400,000 500,000 Capacity (TEUs) Warehouses Trucking Terminal Volume 242,868 334,851 (TEUs) Col

  11. Slide 11: Value Creation: Developing Industrial Clusters

    Developing Industrial Clusters: Total Land Bank ~10k+ Ha. • Mundra SEZ (8000 Ha.) West Coast East Coast 80% 20% Mundra 8,000 20% Proposed industrial development 80% • Kattupalli (150 Ha + 110* Ha) • Dhamra (1200 Ha + 450* Ha) West Coast East Coast Dhamra 1650 Value Creation: • Bringing customer insi

  12. Slide 12: Volume growth consistently ahead of All India Ports

    APSEZ Total Throughput All India Ports Total Cargo CAGR – 9% CAGR – 5% Container CAGR – 17% Container CAGR – 8% 1600 250 1400 1200 200 1000 150 800 1282 1339 223 1208 600 208 100 1134 180 1052 1072 169 144 152 400 91 50 75 84 62 200 42 49 224 248 256 171 181 199 0 0 FY15 FY16 FY17 FY18 FY 19 FY 20 F

  13. Slide 13: Balanced Cargo Mix

    Coal Container Crude Others 47% 41% 41% 41% 37% 41% 32% 36% 29% 33% 33% 32% 16% 14% 15% 15% 15% 14% 12% 12% 13% 10% 11% 11% FY15 FY 16 FY 17 FY 18 FY 19 FY 20 Balanced Cargo Mix……… 13

  14. Slide 14: Operational & Financial Highlights FY20

    Operational & Financial Highlights FY20 Logistics

  15. Slide 15: Operational Highlights and Acquisitions

    Operational Highlights Acquisitions • Cargo volume of 223 MMT a growth of 7%. • B2B acquisition completed in Q1 FY20. • Achieved 100 MMT of dry cargo handling, • Myanmar - To start commercial operation by Jan 2021. • Acquisition of KPCL is on track, expected to be • Crossed 6 mn TEUs mark in contain

  16. Slide 16: Financial Highlights FY20

    P&L Balance Sheet • APSEZ maintains its investment grade rating. • Operating revenue at Rs.11,873 cr. growth of 9%. • Gross debt at Rs.29,463 cr., Cash Balance at Rs.7,326 cr. • Consolidated EBITDA at Rs.7,565 cr. growth of 7%. resulting in a Net Debt at Rs.22,137 cr. • Consolidated EBITDA margin at

  17. Slide 17: Incremental Cargo - Commodity wise and Port wise

    Incremental Cargo - Commodity wise • All major commodity segments have 223 7 shown positive growth 7 -2 • Crude volume were lower due to less 4 import by refineries (IOCL and 208 HPCL). • All major ports registered growth FY19 Coal Containers Crude Others FY20 except Dahej. Incremental Cargo – Port

  18. Slide 18: Sticky Cargo Trend

    Sticky Cargo Trend Sticky Cargo  Constitutes ~60% of total cargo. 128 121 111  Increasing at a CAGR of ~10% 108 FY17 FY18 FY19 FY20  81% of sticky cargo at Mundra. Port, as other port mature share of Sticky Cargo Composition- Port wise & Cargo wise sticky cargo from other ports will 5% increase.

  19. Slide 19: Financial Performance FY20

    adani Ports and Logistics Financial Performance FY20

  20. Slide 20: Operating Revenue and EBITDA

    Operating Revenue  948 11,873 64 3 381 • Consolidated revenue up by 9% due to -217 8% increase in Port revenue and 65% 716 10,925 increase in Logistics revenue. • Consolidated EBITDA* grew by 7% in line with cargo growth. FY19 Ports Logistics SEZ O&M Others FY20 Operations • EBITDA margin is lower

  21. Slide 21: Ports, Logistics, SEZ

    Ports SEZ Logistics  8%  28%  65%  28%  9% 9,613 769 964 8,897 665  159% 6,593 552 479 6,053 583 90 234 Revenue EBITDA Revenue EBITDA Revenue EBITDA FY19 FY20 FY19 FY20 FY19 FY20 O&M Operations Others • Port Revenue and EBITDA growth in line  14%  1%  7% with cargo growth of 7%. • Logistics

  22. Slide 22: Debt Structure: Gross Debt and Net Debt

    Debt Structure Gross Debt 2516 32% 5223 285 1768 -2314 29,463 27,188 -5203 68% Foreign Currency Indian Currency FY19 Forex MTM New FX B2B Debt New INR Repayments CP Repaid FY20 Debt Debt LTD 5% 29% Net Debt 2516 5223 285 20,707 1768 -2314 22,137 -5203 - 845 71% 95% Secured Unsecured Long Term Short

  23. Slide 23: Product wise Debt Maturity Profile

    Product wise Debt Maturity profile of Long Term Debt 6% 5% 4% 54% 2% 9% 10% 2% 21% 7% 47% 3% 17% 32% 8% 34% 21% 24% 22% 61% 50% 42% 5% 6% 6% Mar-18 Mar-19 Mar -20 <1 year 1-3 years 3-5 years > 5 years USD Bond Rupee Bond ECA/ECB RTL CP PCFC&STL Buyers Credit FY19 FY20 Door to Door Maturity DTD Tenor

  24. Slide 24: Rating Ratios

    Rating Ratios 30.0% 6.0x 25.0% 4.5x 4.9x 4.8x 5.0x • Net debt to EBITDA* maintained at 2.9x 4.4x 4.4x which is below our desired level of 3x-3.5x. 20.0% 4.0x 3.1x 15.0% 3.4x 3.0x • All key rating ratios continue to be in the 2.9x 2.9x prescribed range. 2.5x 10.0% 2.0x 5.0% 1.0x • Earnings growth and

  25. Slide 25: ROCE and ROE

    ROCE FY19-FY20 24.1% 21.5% 20.1% • Returns ratio continues to be robust. 18.3% 16.2% • ROCE for Dhamra which was at 9% in FY19 13.5% 13.4% 12.6% 12.0% has increased by 300 bps to 12%. 8.6% 4.4% 4.8% 5.1% 5.4% • ROCE for Mundra is lower on account of capitalization of T2 terminal during the year. APS

  26. Slide 26: Outlook FY21

    Outlook FY21 Logistics

  27. Slide 27: Port operations during COVID-19 lockdown

    • Port operations is classified as an ‘essential service’ and as such all Ports are operating. • Announced Force Majeure to customers in order to mitigate the risks of under performance due to bottlenecks. • Implementing Govt. of India operating procedures at all our ports with safety of the workfor

  28. Slide 28: Economic Outlook and Operations Outlook

    Economic Outlook Operations Outlook • Cargo volume lower due to slow movement of road transport and supply bottlenecks. • Availability of manpower to be a challenge this will impact productivity in the short term. • Situation expected to improve progressively from 4th May as lockdown will be lifted

  29. Slide 29: Liquidity Management and Focus on Cash Conservation

    Liquidity Management Focus on Cash Conservation  Rationalizing operating expenses through – • Focus on maintaining adequate liquidity to tide over • By eliminating redundancy. uncertainties and unpredictable scenarios. • Efficiency improvement. • Converting fixed cost to variable cost. • Fully cove

  30. Slide 30: Environment Social & Governance

    adani Ports and Logistics Environment Social & Governance

  31. Slide 31: ESG highlights

    52 % ↓* 37 % ↓* 6 MW 13 MW Energy Intensity Emission Intensity Wind Turbine Solar Panel 9074 GJ/MMT 1407 tCO2/MMT 44 % ↓* 99% 10 Million 2889 Ha - Afforestation Waste Managed through 5R Trees Planted 2340 Ha - Conservation Water Intensity Waste Management Terrestrial Plantation Mangrove 20.2 ML / MM

  32. Slide 32: Annexures: Port wise Details, ESG, CSR

    34-40 Port wise Details FY20 42-45 ESG 46-49 CSR 50-53 Operational & Financial Performance - Q4 FY20

  33. Slide 33: Mundra: Volume, Revenue & EBITDA

    Volume (MMT) Revenue & EBITDA* FY19 FY20 11  1% 13  13% 34 22 35 26  20% 137 139 5,336 4,643 3,784 3,016 70 66 Coal Container Crude Others Coal Container Crude Others Revenue EBITDA Container Volume Break up (MMT) FY19 FY20 FY20 FY19  6% 14 11 12 14 • Achieved record container volume of 4.8 mn T

  34. Slide 34: Dahej: Volume, Revenue & EBITDA

    Volume (MMT) Revenue & EBITDA* FY19 FY20  15%  10% 7 6  19% 6 6 19.58 21.63 1,274 1,106 954 804 8 9 Coal Container Others Revenue EBITDA Coal Container Others FY19 FY20 • Cargo volume up 10%. • EBITDA margin improved by 200 bps to 75%. • All cargo segments registered growth, coal 6%, • Increase i

  35. Slide 35: Hazira: Volume, Revenue & EBITDA

    Volume (MMT) Revenue & EBITDA* FY20 FY19  30%  22% 2 2  28% 9.07 6.37 421 329 269 194 7 5 Coal Others Coal Others Revenue EBITDA FY19 FY20 • Revenue and EBITDA decreased in line with • Cargo volume decreased by 30%, due to reduction in cargo volume. lower trading coal handled. • EBITDA margin red

  36. Slide 36: Dhamra: Volume, Revenue & EBITDA

    Volume (MMT) Revenue & EBITDA* FY19 FY20  29%  44% 8  37% 15 20.67 29.71 1,431 1,106 15 898 655 13 Coal Other Revenue EBITDA Coal Other FY19 FY20 58% Growth 104% Growth • Highest cargo volume handled since inception. • Revenue and EBITDA increased on account of cargo • New types of cargo – steel

  37. Slide 37: Kattupalli: Volume, Revenue & EBITDA

    Volume (MMT) Revenue & EBITDA* FY20 FY19  22%  26% 1 0.3  31% 8.93 10.86 265 211 160 122 8.6 10 Containers Other Revenue EBITDA Containers Other FY19 FY20 • Revenue and EBITDA growth in line with cargo • Container volume up by 17%, crossed 10 MMT. growth. • Started handling liquids and other bulk

  38. Slide 38: Terminals: Volume, Revenue & EBITDA

    Volume (MMT) Revenue & EBITDA* FY20 FY19 1.91  31%  25% 0.83 4.00 4.24 12.18 15.23 372 284 >100% 5.68 6.48 1.42 2.84 57 Goa Vizag Tuna Ennore Revenue EBITDA (23) Goa Vizag Tuna Ennore FY19 FY20 • Revenue growth is in line with cargo growth. • Cumulative volume increased by 25%. • EBITDA turns posi

  39. Slide 39: Adani Logistics and Harbour Services

    Adani Logistics Harbour Services  65%  14%  14% 964  159% 1,442 1,284 1,263 1,127 583 90 234 Revenue EBITDA Revenue EBITDA FY19 FY20 FY19 FY20 • Rail volume up by 115% to 325,067 TEUs in FY20. • Revenue and EBITDA in Harbour services grew • Rail volumes higher due to additional rail capacity and

  40. Slide 40: Energy consumption and intensity

    Standalone* Consolidated* 2000000 1% 9000 1800000 8505 8413 8000 1600000 7000 0.4% 1400000 6000 1200000 5554 5531 5000 1000000 4000 800000 1661643 469479 1731857 3000 600000 477773 2000 400000 200000 2% 4% 1000 0 0 FY19 FY20 FY19 FY20 Standalone (APSEZ) Consolidated Energy (GJ) Energy Intensity

  41. Slide 41: GHG emissions

    Standalone* Consolidated* 300000 0.51% 1400 1290 1297 1200 250000 1000 899 899 200000 800 150000 600 252088 266972 100000 77315 400 76311 50000 1.3% 200 5.9% 0 0 FY19 FY20 FY19 FY20 Standalone (APSEZ) Consolidated GHG Emission (tCO2e) Emission Intensity (tCO2e/MMT) • GHG emission has marginally d

  42. Slide 42: Water consumption

    Standalone* Consolidated* 4500 25 4000 3500 20 20 19 3000 15 2500 2000 10 11 10 1500 3633 1000 4138 5 896 928 500 4% 14% 0 0 FY19 FY20 FY19 FY20 Standalone (APSEZ) Consolidated Water Consumption (ML) Water Intensity (ML/MMT) • Water consumption has increased by 4% for standalone and decreased 14%

  43. Slide 43: Safety performance

    35 0.45 30 0.41 0.40 0.36 0.35 25 0.30 20 0.25 0.20 15 10 0.15 0.16 0.15 0.05 0.10 5 1 4 13 26 14 30 0.05 0 0.01 0.00 FY19 FY20 FY19 FY20 FY19 FY20 Work Related Injury High Consequence Recordable Work (Fatality) Work Related Injuries Related Injuries (LTI) (Fatality + LTI) Number Rate • We lost four

  44. Slide 44: CSR: Education, Community Health, Livelihood

    Education Community Health Free Education – Transportation Support – Medical Support – Support for Insurance cover – 137 students 605 students 9876 persons 2566 persons Play School for – Turtle Conservation Trainings Senior Citizen Scheme Medical Financial Support in to Fishermen – (above 60 years)

  45. Slide 45: Q4 FY20 cargo volume growth

    APSEZ Total Throughput *All India Ports Total Cargo 7% Growth 4% Growth 58 260 54 250 Vs. Q4 FY 19 Q4 FY 20 Q4 FY 19 Q4 FY 20 * Of which Containers All India Container Volume 8% Growth 64 64 24 22 Vs. Q4 FY 19 Q4 FY 20 Q4 FY 19 Q4 FY 20 45 -*As per internal estimates. Excluding non Adani and coastal

  46. Slide 46: Q4 FY20 Operating Revenue and EBITDA

    Operating Revenue  161 138 3,082 19 10 2,921 -320 -9 • Consolidated revenue down by 5% and EBITDA* down by 15% on account of lower SEZ income during the quarter. • SEZ income is lower due to timing Q4 FY19 Ports Logistics SEZ O&M Operations Others Q4 FY20 mismatch which has resulted in lower EBITDA

  47. Slide 47: Q4 FY20 Ports, Logistics, SEZ

    Ports SEZ Logistics  1%  89%  93%  98%  3% 2,383 2,402 361 286  91% 335 1,492 1,530 148 49 41 26 7 Revenue EBITDA Revenue EBITDA Revenue EBITDA Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 O&M Operations Others • Port Revenue lower due to change in cargo  7%  14%  14% mix and higher shar

  48. Slide 48: Embedded annexure files

    1. Port-wise Cargo Volume 2. Key Ports and Logistics Vertical Financial Performance FY20 3. Key Ports and Logistics Vertical Financial Performance Q4 FY20 4. Debt Schedule Please double click on the icon - 48

  49. Slide 49: Statement of results

    Quarter Ended Year Ended Sr. March 31, December 31, March 31, March 31, March 31, Particulars No. 2020 2019 2019 2020 2019 (Refer Note 18) Unaudited (Refer Note 18) Audited Audited 1 Income a. Revenue from Operations 2,921.19 2,901.95 3,082.49 11,438.77 10,925.44 b. Gain arising from infrastructure

  50. Slide 50: Investor Relations Team

    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 growth prospect

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