Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS

Adani Ports & Special Economic Zone — Q2 FY21 Earnings Presentation

43 slides from Adani Ports & Special Economic Zone's earnings presentation, Nov 3, 2020

  1. Slide 1: Adani Ports and SEZ Limited Q2 FY21

    Adani Ports and SEZ Limited Q2 FY21

  2. Slide 2: Contents

    Contents A Group profile B Company profile C Operational and financial highlights D Financial performance E ESG F Outlook G Annexures 2

  3. Slide 3: Adani Group: A world class infrastructure & utility portfolio

    Adani Group: A world class infrastructure & utility portfolio Adani Adani Transport & Logistics Energy & Utility Portfolio Portfolio • Marked shift from B2B to B2C businesses– 63.5% 100% 75% 75% • AGL – Gas distribution network to serve key APSEZ SRCPL ATL AGEL geographies across India Port & Logist

  4. Slide 4: Adani Group: Repeatable, robust & proven model infrastructure development

    Adani Group: Repeatable, robust & proven model infrastructure development Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt Analysis & Site acquisition Engineering & Life cycle O&M Redesigning the market design planning capital structure of

  5. Slide 5: Adani Group: Repeatable, robust business model applied to drive value

    Adani Group: Repeatable, robust business model applied to drive value Successfully applied across Infrastructure & utility platform Development at large scale & within time and budget India’s Largest Longest Private HVDC 6 4 8 MW Ultra Mega Largest Single Location Commercial Port Line in Asia Solar

  6. Slide 6: A transport & logistics utility that dominates the network

    APSEZ : A transport & logistics utility that dominates the network Ports Logistics SEZ • Ten operating Ports, ~490 MMT • Largest integrated logistics player • Large scale ‘ready to setup’ of augmented capacity in India. in India. industrial land (SEZ) • Hinterland reach of 90% • Operating 60+ rakes,

  7. Slide 7: Company Profile

    adani Ports and Logistics Company Profile

  8. Slide 8: Largest private transport utility

    APSEZ : Largest private transport utility APSEZ – Dhamra Port Ports Ports One Oneto totwelve ten in in Import - Export - Steel twenty twentyyears years Coking coal (HRC/CRC) 2x Port income String of Ports Ports of Prosperity Port gate to 2x Warehousing Warehousing SEZ customer gate Warehousing SEZ i

  9. Slide 9: Largest network of ports in India

    APSEZ : Largest network of ports in India West Coast East Coast Capacity 327 MMT Capacity 163 MMT FY06 FY21 Dahej 14 MMT Tuna Moga Kotkapura Patli Kanech Kilaraipur Dhamora 1 Port 12 * 14 Kannauj MMT Kishangarh Samastipur and Darbhanga 10 MMT Capacity 490 MMT Mundra Vidisha Katihar Harda 264 MMT Hos

  10. Slide 10: SEZ Port development - recurring income stream

    APSEZ : SEZ Port development - recurring income stream In Ha Mundra 8,491 65% 80% 2020 Dhamra 1,650 2019 20% 35% Total east coast land – 4658 Ha Krishnapatnam * 2,748 Kattupalli 260 • Total land bank of ~13k Ha. • Bringing customer inside Port gate. • Twin advantage of availability of large contiguo

  11. Slide 11: Update on COVID-19 and APSEZ's response

    APSEZ : Update on COVID-19 and APSEZ’s response • As per IMF India’s GDP to contract 10%* in 2020. • We expect bounce back in GDP in FY22 due to measures taken by govt. to boost demand, expecting 6-7% growth in GDP. • Q2 FY21 registered a growth of 36% Q-o-Q and 7% Y-o-Y basis against a declined of

  12. Slide 12: Operational and Financial Highlights

    Operational and Financial Highlights

  13. Slide 13: Operational highlights - Q2 FY21

    APSEZ : Operational highlights - Q2 FY21 • Cargo volume of 56.25 MMT a Q-o-Q growth of 36%, • KPCL acquisition completed in first week of October. which is 2 times the all India cargo growth of 18%. • Myanmar - To start commercial operation by Mar ‘21. • 300 bps increase in overall cargo market shar

  14. Slide 14: Cargo volume comparison – Q2 and H1 FY21

    APSEZ : Cargo volume comparison – Q2 and H1 FY21 (MMT)  36%  18%  11%  14% 56 2x growth 109 506 235 98 434 41 199 APSEZ All India** APSEZ All India ** Q1 FY21 Q2 FY21 Q1 FY21 Q2 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21  34%  31% 62  7% 45 130  17% 24 42 109 18 47 APSEZ All India ** APSEZ All Ind

  15. Slide 15: Cargo mix – H1 FY21

    APSEZ : Cargo mix – H1 FY21 Coal Container Crude Others 43% 41% 41% 41% 37% 41% 32% 36% 33% 33% 32% 28% 16% 15% 15% 15% 17% 14% 12% 12% 13% 12% 11% 11% FY 16 FY 17 FY 18 FY 19 FY 20 H1 FY21 15

  16. Slide 16: Financials - Q2 FY21

    APSEZ : Financials - Q2 FY21 • Operating revenue at Rs.2,903 cr. growth of 27%. • APSEZ maintains investment grade rating. • Net Debt to EBITDA at 3.44x. • Consolidated EBITDA at Rs.1,851 cr. growth of 29%. • Average maturity at 5.2 years. • Port revenue at Rs.2,432 cr. growth of 28%. • Loans increa

  17. Slide 17: Financials – Q2 FY21

    APSEZ : Financials – Q2 FY21 (QoQ - Rs. in cr.) 27% 2,903 29% 1,851 2,293 1,438 • Growth in revenue and EBITDA was lower than cargo volume Q1 FY21 Q2 FY21 Q1 FY21 Q2 FY21 growth due to higher share of Q1 FY21 Q2 FY21 Q1 FY21 Q2 FY21 cargo volume handled by JVs which are not consolidated in P&L. • Hi

  18. Slide 18: Segment wise Revenue & EBITDA - Q2 FY21

    APSEZ : Segment wise Revenue & EBITDA* - Q2 FY21 (QoQ - Rs. in cr.)  28% 2,432 • Growth in port revenue and EBITDA  15% is lower than cargo volume growth 1,904  24% due to higher cargo handling at JV 231 200 terminals which is not consolidated 152  14% 122  189% and change in cargo mix. 59 67 7

  19. Slide 19: Financials – H1 FY21

    APSEZ : Financials – H1 FY21 (YoY - Rs. in cr.) 5,616 -7% -10% 3,634 3,288 5,195 • Revenue and EBITDA decline lower than cargo volume decline due to better realization H1 FY20 H1 FY21 H1 FY20 H1 FY21 and operational efficiency. H1 FY20 H1 FY21 H1 FY20 H1 FY21 • PAT growth is lower than PBT growth on

  20. Slide 20: Segment wise Revenue & EBITDA - H1 FY21

    APSEZ : Segment wise Revenue & EBITDA* - H1 FY21 (YoY - Rs. in cr.)  9% 4,787 4,336  2%  12% • Port revenue and EBITDA decline 438 431  6% lower than cargo volume decline  1% 274 244 due to operational efficiency, 119 127 28 28 cargo mix, tariff hike and better realization. Ports Logistics O&M

  21. Slide 21: Debt profile – H1 FY21

    APSEZ : Debt profile – H1 FY21 5% 1% Short Term (%) Long Term (%) 95% • 7 year bullet repayment bond for 99% USD 750 mn issued for refinancing Mar ‘20 Sept ‘20 KPCL debt. • Currency mix in our debt portfolio is 71% 70% 68% 68% in line with debt capital program. 32% 32% 30% 29% Secured (%) Unsecured

  22. Slide 22: Debt profile – H1 FY21

    APSEZ : Debt profile – H1 FY21 (Rs. in cr.) 6% 5% 4% 1% 2% 1% 1% 8% 2,552 24,831 9% 5% 10% 4,361 5,039 21% 7% 22,137 22% 536 3% 17% 32% 8% 21% 61% 63% 50% 42% | # Mar '20 Cash Forex MTM New FX Debt New INR Debt Sept '20 Mar-18 Mar-19 Mar -20 Sept-20 USD Bond Rupee Bond ECA/ECB RTL CP PCFC, STL, & OD

  23. Slide 23: Strong operational performance improves free cash generation

    APSEZ : Strong operational performance improves free cash generation 80 76 100% 71 71 70 88% 80% 57 60 60% 50 46 52% 40% 40 30% 32% 33 • EBITDA conversion to free cash* 20% 30 increasing consistently on account of -1% 0% 20 -16% improvement in working capital. 10 -20% 0 -40% • Net debt to EBITDA* in

  24. Slide 24: Key ratios H1 FY21

    APSEZ : Key ratios H1 FY21 30% 7.0x 5.9x 25% 6.0x 4.9x 4.8x 4.5x 4.4x 5.0x 20% 4.0x 15% 3.0x • All key rating ratios continue to be in the 10% prescribed range. 2.0x 5% 1.0x • FFO to Gross Debt and FFO to Net Debt 17.0% 18.6% 22.4% 25.1% 18.6% 22.6% 22.7% 27.6% 19.4% 25.3% 0% 0.0x declined in H1 FY2

  25. Slide 25: Environment Social and Governance

    Environment Social and Governance

  26. Slide 26: ESG philosophy

    APSEZ : ESG philosophy  Adherence to global environment guidelines like – Disclosure in CDP – Climate Change and Water Security, SBTi; Supporter of TCFD, Member of IUCN  All port certified with Integrated Management System (ISO 9001, 14001 & 45001) and 4 ports with Energy Management System (ISO 50

  27. Slide 27: ESG Update H1 FY21

    APSEZ : ESG Update H1 FY21 Energy Intensity* Emission Intensity* Wind Energy # Solar Energy# 5%↓ 11 % ↓ 6 MW 13 MW 174 GJ/Revenue 22 tCO2e/Revenue Waste Management* Terrestrial Plantation Mangrove Water Intensity* 2889 Ha - Afforestation 19 % ↓ 97% 1.1 Million 2340 Ha - Conservation Managed through

  28. Slide 28: ESG Performance – H1 FY21

    APSEZ : ESG Performance – H1 FY21 Energy RE Share Emission 25 6% 1050000 186 6% 144000 25 184 142000 1048000 184 25 5% 140000 1046000 182 24 138000 1044000 180 4% 24 3% 136000 1042000 178 23 3% 134000 174 1040000 176 23 132000 22 1038000 174 2% 22 130000 1036000 172 22 128000 1% 1034000 170 21 12600

  29. Slide 29: ESG Performance – H1 FY21

    APSEZ : ESG Performance – H1 FY21 Water Consumption Waste Disposal Safety 2300 0.45 4000 0.57 0.60 12 0.42 0.45 0.40 0.40 0.40 3500 2200 0.46 0.50 10 0.32 0.35 3000 0.35 2100 0.30 0.40 8 0.30 2500 8 0.25 0.25 2000 2000 0.30 0.20 6 0.20 0.20 6 1500 1900 0.15 0.20 4 0.15 1000 0.10 1800 0.10 0.10 500 0

  30. Slide 30: Outlook FY21 – Reverts to growth trajectory

    APSEZ : Outlook FY21 – Reverts to growth trajectory  Cargo volume expected to be in the range of 225 MMT - 230 MMT excluding KPCL.  KPCL volume in H2 FY21 to be around 20 MMT.  Mundra ~142, Hazira ~22, Dhamra ~30 to 32 and Kattupalli ~ 11 MMT.  Consolidated revenue expected to be in the range of

  31. Slide 31: Annexures

    Annexures 1. Port wise cargo and financial details 2. ESG 3. Results - SEBI Format 4. Annexed File – Cargo and Financial Details

  32. Slide 32: Mundra Port Cargo Volume – Q2 FY21

    ASPEZ : Mundra Port Cargo Volume – Q2 FY21 (QoQ - Rs. in cr.) Q1 FY21 Q2 FY21  40%  36% 3.87 5.44 6.93 5.18  42% 2.50 1082 4.38 798 25.75 36.13 716 504 Revenue EBITDA * 14.21 19.38 Q1 FY21 Q2 FY21 Coal Container Crude Others Coal Container Crude Others • Cargo growth led by crude and other bulk c

  33. Slide 33: Dhamra Port - Volume and Financials Q2 FY21

    APSEZ : Dhamra Port - Volume and Financials Q2 FY21 (QoQ - Rs. in cr.) Q1 FY21 Q2 FY21  26%  30%  32% 6.36 2.91 8.30 4.07 381 3.45 4.22 303 244 185 Revenue EBITDA Coal Other Coal Other Q1 FY21 Q2 FY21 • Revenue and EBITDA growth in line with cargo growth. • EBITDA margin increased by 300 bps to 6

  34. Slide 34: Hazira Port - Volume and Financials Q2 FY21

    APSEZ : Hazira Port - Volume and Financials Q2 FY21 (QoQ - Rs. in cr.) Q1 FY21 Q2 FY21  16%  45% 0.89  7% 1.06 1.49 1.74 3.86 5.61 322 278 218 234 1.91 2.38 Coal Container (MMT) Others Coal Container (MMT) Others Revenue EBITDA Q1 FY21 Q2 FY21 • Cargo volume increase driven by higher coal volume

  35. Slide 35: Kattupalli Port - Volume and Financials Q2 FY21

    APSEZ : Kattupalli Port - Volume and Financials Q2 FY21 (QoQ - Rs. in cr.) Q1 FY21 Q2 FY21  54%  11% 0.14 0.21  17% 1.48 2.27 58 51 36 30 1.34 2.06 Containers (MMT) Others Revenue EBITDA Containers (MMT) Others Q1 FY21 Q2 FY21 • Cargo volume growth driven by higher container volume and handling o

  36. Slide 36: Dahej Port - Volume and Financials Q2 FY21

    APSEZ : Dahej Port - Volume and Financials Q2 FY21 (QoQ - Rs. in cr.) Q1 FY21 Q2 FY21  108%  145% 0.16 0.24  121% 0.70 1.71 82 50 40 0.54 23 1.47 Coal Others Coal Others Revenue EBITDA Q1 FY21 Q2 FY21 • Cargo volume increased due to higher coal volume. • Revenue and EBITDA growth lower than volum

  37. Slide 37: Terminals at Major Ports - Volume and Financials Q2 FY21

    APSEZ : Terminals at Major Ports - Volume and Financials Q2 FY21 (QoQ - Rs. in cr.) Q1 FY21 Q2 FY21  28%  32% 0.47 0.74 1.11 0.53 3.26 2.22 86  88% 61 2.26 26 3 0.37 Revenue EBITDA Coal Containers (MMT) Others Coal Containers (MMT) Others Q1 FY21 Q2 FY21 • Cargo volume decreased due to lower coal

  38. Slide 38: Adani Logistics and Harbour Services - Financials Q2 FY21

    APSEZ : Adani Logistics and Harbour Services - Financials Q2 FY21 (QoQ - Rs. in cr.)  28%  15%  30% 231 359 200 328 280  19% 253 43 52 Revenue EBITDA Revenue EBITDA Q1 FY21 Q2 FY21 Q1 FY21 Q2 FY21 • Rail volume - 69,061 TEUs Q2 vs 76,925 TEUs in Q1. • Revenue grew in line with 36% growth in carg

  39. Slide 39: ESG Performance – Q2 FY21

    APSEZ : ESG Performance – Q2 FY21 Energy RE Share Emission 550000 185 6% 70000 30 180 5% 69900 24 545000 180 5% 25 69800 540000 20 175 69700 535000 4% 20 170 69600 530000 165 3% 3% 69500 15 525000 158 160 69400 520000 2% 10 69300 155 515000 69200 1% 5 150 510000 69100 521853 546404 69922 69372 50500

  40. Slide 40: ESG Performance – Q2 FY21

    APSEZ : ESG Performance – Q2 FY21 Water Consumption Waste Disposal Safety 1200 0.33 0.35 2500 0.70 6 0.33 0.35 0.63 0.30 0.60 0.30 1000 5 2000 0.22 0.25 0.50 0.25 800 4 1500 0.20 0.40 0.20 600 3 4 0.15 0.30 0.15 1000 400 2 0.10 0.10 0.15 0.20 0.10 1 500 200 1 0.05 0.10 0.05 955 776 428 2162 1 1 0 0.

  41. Slide 41: Details Annexed in Linked File

    APSEZ – Details Annexed in Linked File 1. Port-wise Cargo Volume Q2 and H1 FY21 2. Ports and Logistics Vertical Key Financial Performance Q2 FY21 and H1 FY21 3. Debt Schedule Please double click on the icon to open -

  42. Slide 42: Consolidated financial performance – SEBI format

    APSEZ : Consolidated financial performance – SEBI format (` in crore) Quarter Ended Six Month Ended Year Ended Sr. September 30, June 30, September 30, September 30, September 30, March 31, No Particulars 2020 2020 2019 2020 2019 2020 . Unaudited Unaudited Audited 1 Income a. Revenue from Operations

  43. Slide 43: 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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