Allcargo Logistics Limited · NSE:ALLCARGO
Allcargo Logistics — Investor Presentation (September 2021)
46 slides from Allcargo Logistics's investor presentation, Sep 9, 2021
Slide 1: Exchange filing cover letter: Investors' Presentation
e!tQ0r98 logistics ltd. Listing Compliance and Legal Listing and Compliance Regulatory National Stock Exchange of India BSE Limited Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G Dalal Street, Fort, Bandra Kurla Complex, Sandra Mumbai - 400 001 (East),Mumbai - 400 051 BSE Scrip Code
Slide 2: Investor Presentation September 2021
Investor Presentation September 2021
Slide 3: Allcargo: End-to-End Integrated Logistics Solutions Experts
ALLCARGO: END-TO-END INTEGRATED LOGISTICS SOLUTIONS EXPERTS India’s largest private sector integrated multinational logistics conglomerate offering end-to-end ocean, air and door to door logistics solutions including freight- forwarding, container freight stations (CFS), inland container depots (ICD
Slide 4: Corporate Structure
CORPORATE STRUCTURE Allcargo Logistics Ltd. has three business divisions namely a) MTO, b) CFS/ICD and c) P&E. India MTO is part of Allcargo Standalone, while international subsidiaries are under Allcargo Belgium which is 100% subsidiary of Allcargo. In CFS/ICD segment, Speedy Multimodes, Dadri JV &
Slide 5: Proven Track Record in Acquisition, Integration & Turnaround
PROVEN TRACK RECORD IN ACQUISITION, INTEGRATION & TURNAROUND 1994-2004 2005-2010 2011-2016 2017-2021 • Started as a cargo handling • Listed on BSE Limited and • Started ICD at Dadri • Strategically expanded operator at Mumbai Port National Stock Exchange operations to FCL • Started New CFS near JNPT
Slide 6: Strong Business Fundamentals
STRONG BUSINESS FUNDAMENTALS Market Leadership Strong Cash Flows Established leadership in LCL and CFS business; Consistent strong operating cash flows over the Regaining leadership in B2B surface Express past ten years Focus on Growth Strategic initiatives to focus on high Consistent Dividend Recor
Slide 7: Business Snapshot - Q1FY22 Performance Update
BUSINESS SNAPSHOT - Q1FY22 PERFORMANCE UPDATE International Supply Express & ₹ mn Chain (MTO) CFS / ICD Rental & Others # Total Ecommerce Logistics REVENUE 29,354 1,222 2,988 928 34,493 EBITDA 1,653 389 10 123 2,175 CAPITAL 15,247 3,992 8,284 17,444 44,967 EMPLOYED RETURN ON 35.7% 34.3% - NM 14.1% C
Slide 8: International Supply Chain (MTO)
INTERNATIONAL SUPPLY CHAIN (MTO)
Slide 9: ECU Worldwide Capabilities
ECU WORLDWIDE CAPABILITIES Global #1 in LCL consolidation Distinct value proposition to small and medium operatingthe largest global LCL network sized forwarders who benefit from our scale & carrier relationships Operates across 4,000 port Global network leads to more port pairings than competitors,
Slide 10: Global Consolidation Market Overview
GLOBAL CONSOLIDATION MARKET OVERVIEW Overview of the Ocean Freight Market Overview of the LCL Market 6-7% 1% Out of the ~70m CBMs NVOCCs controlled business, ECU operates in markets that represent 30% ~60m CBMs of this traffic $206bn ~100m 2019A 2019A 70% 93-94% FCL LCL NVOCCs Big FFs Carriers Trend
Slide 11: ECU Digitalization – Driving Growth Through Technology
ECU DIGITALIZATION – DRIVING GROWTH THROUGH TECHNOLOGY Technology Platform Enhanced transactional visibility & intelligence Digital Transformation (# of ECU360 bookings) …wherewe aspire to be 60% …where we are… Complete Where we Book in 30 Sailing shipment 32% Ship with aClick seconds schedules were
Slide 12: ECU Growth Initiatives
ECU GROWTH INITIATIVES Vision ECU 2025 Digital Transformation Growth Through New opportunities M&A in Air Growing Growthin FCL geographical Growth in Air Dedicated Global Broader FCL business footprint Accounts Team customers leveraging ECU through targeted Growth Through portfolio further Worldwide
Slide 13: Expanding the Geographic Reach Through Nordicon
EXPANDING THE GEOGRAPHIC REACH THROUGH NORDICON Deal Contours ₹ mn Global leader in LCL consolidation with a network Largest player in Nordic region represented with operating in 180 countries and door-to-door own offices in Sweden, Norway, Finland, Denmark. deliveries in 56 global markets. Key offe
Slide 14: International Supply Chain (MTO) - Key Financials Trend
INTERNATIONAL SUPPLY CHAIN (MTO) - KEY FINANCIALS TREND Volumes Revenue (₹ mn) +23% +45% 2,102 2,031 84,490 1,656 66,047 1,435 61,590 1,399 53,748 47,558 989 29,355 Q121 Q421 Q122 Q121 Q421 Q122 FY17 FY18 FY19 FY20 FY21 Q1-FY22 LCL (‘000 cbm) FCL (‘00 TEU’s) EBITDA and EBITDA margin Return on Capita
Slide 15: Major Relationships
MAJOR RELATIONSHIPS Long Standing Relationships with Biggest carriers Biggest forwarders and several other, well recognized, small & mid-sized freightforwarders Addressing logistics needs of multiple global & regional customers …& other esteemed clientele Investor Presentation 14
Slide 16: Container Freight Station / Inland Container Depot
CONTAINER FREIGHT STATION / INLAND CONTAINER DEPOT
Slide 17: Leading Pan India Player with Unmatched Network
LEADING PAN INDIA PLAYER WITH UNMATCHED NETWORK Strategically Located Assets with Robust Operational Capabilities Operational Support Static Yard Capacity of over JHAJJAR 26,000 TEUs p.a. Upcoming ICD/PFT Strategic Location of all the Assets MUNDRA 2 CFS’s (Owned + DADRI - ICD Widest pan India prese
Slide 18: Overview of CFS/ICD Market
OVERVIEW OF CFS/ICD MARKET CFS/ICD - Proxy to Indian EXIM growth All the Growth Levers in Place for Future CAGR 8-10% • Potential reforms to increase the scope of activities and expand the role of CFS’s. 22 – 25* CFSs also gaining importance due to increased number of LCL shipments CFS/ICD - Market
Slide 19: Defined Strategy to Drive Future Growth
DEFINED STRATEGY TO DRIVE FUTURE GROWTH • Evaluating key locations at Western • Expansion through asset light facilities DFC and Eastern DFC for CFS at JNPT & Mundra • Evaluate working on PPP model • Acquisition of ICD and CFS players III C Work on PPP Current targets model for DFC • Economic viabil
Slide 20: CFS – Key Financials Trend
CFS – KEY FINANCIALS TREND Volumes Revenue (₹ mn) 4,306 4,598 4,490 4,640 3,340 3,235 4,094 3,040 2,831 2,950 1,222 825 FY17 FY18 FY19 FY20 FY21 Q1FY22 FY17 FY18 FY19 FY20 FY21 Q1FY22 Volumes (00s TEUs) Revenues (INR Mn) EBITDA and EBITDA margin Return on Capital Employed (%) 1,759 43.1% 1,541 1,483
Slide 21: Express & Ecommerce Logistics / Contract Logistics
EXPRESS & ECOMMERCE LOGISTICS / CONTRACT LOGISTICS
Slide 22: Gati KWE - India's Pioneer in Express Logistics
GATI KWE - INDIA’S PIONEER IN EXPRESS LOGISTICS Network Reach Deeper Leader in Logistics Widest in Industry Customer engagements 8 out of Top 10 Auto Companies 4.1 Mn sq. ft. Pan India 735 Warehousing space Area 668 out of 739 across multiple Coverage 8 out of Top 10 offices across Indian Districts
Slide 23: Industry with Limitless Opportunities
INDUSTRY WITH LIMITLESS OPPORTUNITIES Surface + Air + Ecommerce + Contract Logistics Total Available Market is ~Rs 52,500 crs Niche Contribution in Logistics Industry Accelerated growth Opportunities ₹ Crs 21,769 11,500 ₹ 24.6k Crs FY25 2,000 2,805 ₹ 51k Crs FY25 ₹ 13.5k Crs FY20 FY25 ₹ 25k Crs FY20
Slide 24: Poised for Growth Through Transformation
POISED FOR GROWTH THROUGH TRANSFORMATION Key Focus Areas: Reduction of debt through proceeds from sale of non-core assets. Key Focus Areas: Interest rate Enhance customer rationalization. experience. Data driven Target: Revenue decision making. Interest savings Profitability Governance Acceleration
Slide 25: Gati KWE: Combining Global Expertise with Domestic Experience
GATI KWE: COMBINING GLOBAL EXPERTISE WITH DOMESTIC EXPERIENCE Contract Crane Logistics Power of ONE Ocean Freight Logistics Rentals Parks Higher Wallet Share Custom Project ICD &CFS Clearance Logistics Increased Reach Integrated Solutions Air Express E-Commerce Freight Logistics Solutions Cost Side
Slide 26: Gati KWE – Key Financials Trend
GATI KWE – KEY FINANCIALS TREND Surface Volumes (‘000 MT) Gati KWE - Revenue (₹ mn) 2x 2.1x Core Express Revenue 239 250 3,192 3,234 210 200 2,542 2,618 2,371 178 (₹ mn) 88 1,124 FY20- Avg. Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 FY20- Avg. Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Corporate Right-sizing (Total
Slide 27: Gati KWE Major Relationships
GATI KWE MAJOR RELATIONSHIPS Auto Electronics Pharma FMCG E-Com Textiles Heavy Engineering Investor Presentation 26
Slide 28: Contract Logistics
CONTRACT LOGISTICS Pan India Presence • Contract Logistics segment involves end to end logistics services- transportation, payments and inventory management. CORE CAPABILITIES • Specializes in sectors such as Chemical, Automotive and Ecommerce/retail across India measuring over 5 mn sq. ft. 50 • Key
Slide 29: Other Businesses
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Slide 30: Projects & Engineering Solutions
PROJECTS & ENGINEERING SOLUTIONS Revenue (₹ mn) • The P&E segment includes Crane and container handling equipment rental and 4,569 Project transportation services. 3,381 3,508 3,142 3,082 • Allcargo Logistics offers enhanced expertise in the areas of: Turnkey Lifting and Transport Operations, Factor
Slide 31: Logistics Parks
all CALCO wisest moentytomoton LOGISTICS PARKS
Slide 32: Logistics Parks
LOGISTICS PARKS Revenue (₹ mn) Allcargo has built best in class Grade-A warehousing infrastructure across key locations in India. A nationwide warehousing footprint of 6 million sq. ft. remains under development, through strong connectivity to industrial hubs and transport routes. 576 The company ha
Slide 33: Logistics Parks Divestment Update
LOGISTICS PARKS DIVESTMENT UPDATE • Entered into a definitive transaction with the Blackstone Group on 13th January, 2020, wherein Blackstone would acquire 90% stake in Allcargo’s warehousing subsidiaries set up as SPVs at Telangana, Tamil Nadu, Karnataka, Gujarat, Goa and Maharashtra for an equity
Slide 34: Board of Directors
BOARD OF DIRECTORS • Mr. Shashi Kiran Shetty is a pioneer in logistics industry. A visionary, • Mr. Parthasarathy VS is a much-awarded professional, thought leader, first generation entrepreneur, Mr. Shetty started with Allcargo and votary of transformational changes with over 35 years of rich Logis
Slide 35: Allcargo Logistics Management Team
ALLCARGO LOGISTICS MANAGEMENT TEAM • Mr. Kumar R is a seasoned industry leader with a proven track record of • Capt. Anand has been with Allcargo Logistics since 2006 and has around 28 years in the telecom, consumer, and media industries. His served in several leadership positions including being CE
Slide 36: ECU Worldwide Management Team
ECU WORLDWIDE MANAGEMENT TEAM • Mr. Tudor has been with the organization for over a decade now. Starting • Mr. Shetty leads digitalization and technology initiatives through off as Regional CEO, his journey in ECU Worldwide has seen him achieve integration of diverse digital tools and initiatives ac
Slide 37: Environment, Social & Governance (ESG)
ENVIRONMENT, SOCIAL & GOVERNANCE (ESG)
Slide 38: Environment
ENVIRONMENT • Carbon footprint reduction: While constructing warehouses or CFS facilities, landscaping of land is carried out by using grass and planting trees. Polycarbonate panels (skylight panels) that help utilize natural light during the daytime are used on building roofs wherever possible. At
Slide 39: Social
SOCIAL Allcargo Logistics has been touching the lives of thousands of underprivileged members of society through Avashya Foundation’s inclusive initiatives across six focus areas - Education, Environment, Health, Women Empowerment, Disaster Relief and Sports, which are aligned to the United Nations’
Slide 40: Governance
GOVERNANCE • Effectiveness & Independence of Board: Board of Directors is a balanced Board, comprising Executive and Non-Executive Directors with professional expertise and experience in finance, legal, commercial, strategy & planning, business administration, corporate sustainability and other rela
Slide 41: Financial Overview
All CAFC ws:rens Imgentyta motion FINANCIAL OVERVIEW
Slide 42: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (₹ Mn) FY19 FY20 FY21 Q1-FY22 Revenue from Operations 68,949 73,462 1,04,981 34,493 Expenses 64,464 68,428 98,643 32,318 EBITDA 4,485 5,034 6,338 2,175 EBITDA Margin (%) 6.50% 6.85% 6.04% 6.31% Other Income 338 413 553 99 Finance cost 295 685 1,356 281 Depre
Slide 43: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Equity and Liabilities (₹ Mn) FY19 FY20 FY21 Assets (₹ Mn) FY19 FY20 FY21 Equity Non Current Assets Equity share capital 491 491 491 Plant, Property & Equipment (net) 11,368 12,099 15,614 Other equity 19,497 20,966 22,344 Right use of assets - 2,026 3,059 Equity attributab
Slide 44: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS Total Operational Revenue (₹ mn) EBITDA (₹ Mn) and EBITDA Margins (%) PAT (₹ Mn) and PAT Margins (%) 1,04,981 6,338 4.3% 8.3% 3.6% 3.2% 5,034 3.1% 68,949 73,462 4,649 6.2% 4,485 2,378 2.9% 2,479 55,833 60,492 3,771 2,343 6.5% 6.1% 6.0% 6.3% 34,493 1,740 0.9% 2,174 1
Slide 45: Disclaimer
DISCLAIMER Allcargo Logistics Ltd. Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are i
Slide 46: Thank You
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