Allcargo Logistics Limited · NSE:ALLCARGO
Allcargo Logistics — Investor Presentation (May 2023)
36 slides from Allcargo Logistics's investor presentation, May 31, 2023
Slide 1: Filing cover letter to stock exchanges
May 31, 2023 To, To, BSE Limited, National Stock Exchange of India Limited, Phiroze JeejeebhoyTowers, 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 Present
Slide 2: Investor Presentation May 2023
INVESTOR PRESENTATION May 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 Gati KWE Worldwide subsidiaries International Supply Chain Express & Contract Logistics Board
Slide 5: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS COMBINED FINANCIALS CONSIDERING 100% OWNERSHIP OF CONTRACT LOGISTICS Particulars Reported (Continuing) Contract Logistics Combined ₹ Crores FY23 FY22 FY23 FY22 FY23 FY22 Revenue 18,051 19,062 341 344 18,392 19,406 EBITDA 1,129 1,268 121 136 1,250 1,404 EBIDTA Margin 6.3% 6.7
Slide 6: Key Business Highlights
KEY BUSINESS HIGHLIGHTS ➢ Resilient business performance over last two years has enabled the Company to reduce debt. As of 31st March 2023, the Company has a consolidated net cash of ₹ 604 Cr. ➢ Revenue for FY23 declined 5.3% YoY from 19,062 Cr to 18,051 Cr. However, the Gross Profit over same perio
Slide 7: Key Business Highlights
KEY BUSINESS HIGHLIGHTS ➢ The company intends to revive profitability in international supply chain business by increasing volumes and reducing SG&A. Yields are expected to remain rangebound with short term decline driven by competitive pressure and bounce back with improved operating parameters inc
Slide 8: Key Business Highlights
KEY BUSINESS HIGHLIGHTS Significant growth in focused countries and new trade lanes led to LCL Market share expansion 15% ` expansion in global market share against the backdrop of subdued trade volumes due to recessionary headwinds ₹ 604 Cr Net Cash 604 Consolidated net cash as of 31st March’23 sto
Slide 9: Key Financial Highlights (Continued Operations)
KEY FINANCIAL HIGHLIGHTS (CONTINUED OPERATIONS) 17,642 1,305 16,333 1,059 Revenue EBITDA (₹ Cr) (₹ Cr) 8,449 456 International Supply ALLCARGO LOGISTICS (ACL) Chain FY21 FY22 FY23 FY21 FY22 FY23 1,723 70 1,490 1,314 EBITDA Revenue EBITDA 34 (₹ Cr) (₹ Cr) 24 Express Logistics FY21 FY22 FY23 FY21 FY22
Slide 10: Management Aspiration for 2026
MANAGEMENT ASPIRATION FOR 2026 Dummy Numbers for FY23 FY23 FY26 Revenue EBIDTA Revenue EBIDTA International Supply Chain 16,333 Crs 1,059 Crs 20,000 – 25,000 Crs 1,700 – 2,000 Crs Express + Contract 2,064 Crs 191 Crs 2,700 – 3,500 Crs 400 – 500 Crs *International Supply Chain operates on a calendar
Slide 11: 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 12: 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 13: International Supply Chain
@ecu WORLDWIDE LOGISTICS INTERNATIONAL SUPPLY CHAIN |
Slide 14: 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 and 40,000 Port pairing, key value driver for small & large freight forwar
Slide 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: International Supply Chain - Key Financial Trends
INTERNATIONAL SUPPLY CHAIN - KEY FINANCIAL TRENDS Volumes Revenue (₹ Cr) LCL (‘000 cbms) FCL (‘00 TEUs) 17,642 16,333 9,089 9,050 7,643 5,940 6,045 4,871 8,449 5,122 2,266 2,189 2,112 3,698 2,979 1,442 1,488 1,455 FY21 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 FY21 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 EBITDA (₹ Cr)
Slide 23: Express & Contract Logistics
EXPRESS & CONTRACT LOGISTICS
Slide 24: 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 Gurgaon 99% OF PINCODES^ SERVICED Jaipur Bihar Assam Rajasthan Guwahati Ahmedabad 150+ WAREHOUSE & DISTRIBUTION CENTERS B
Slide 25: 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 24
Slide 26: Express Business - Key Financial Trends
EXPRESS BUSINESS - KEY FINANCIAL TRENDS GKEPL - Volumes (‘000 MT) GKEPL - Revenue (₹ Cr) 1,133 1,469 966 1,242 781 1,012 257 287 285 320 379 356 FY21 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 FY21 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 GKEPL EBITDA (₹ Cr) GKEPL PBT (₹ Cr) 2 72 1 38 36 -6 -8 -10 21 12 4 -19 FY21 FY22 F
Slide 27: 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 28: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM
Slide 29: Board of Directors
BOARD OF DIRECTORS SHASHI KIRAN SHETTY ADARSH HEGDE PARTHASARATHY V S Executive Chairman & Founder Managing Director Vice Chairman & Non-Executive Director A pioneer in logistics industry and a visionary, first generation entrepreneur. He is the founder of Allcargo Associated with Allcargo Logistics
Slide 30: Management Team - Allcargo Logistics
MANAGEMENT TEAM - ALLCARGO LOGISTICS RAVI JAKHAR DEEPAL SHAH Group Chief Strategy Officer Deputy 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 di
Slide 31: 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 32: Management Team - Gati
MANAGEMENT TEAM - GATI ADARSH HEGDE PIROJSHAW (PHIL) SARKAR HUAFREED NASARWANJI Managing Director, Gati-KWE Chief Executive Officer Chief Commercial Officer Seasoned Logistics professional acclaimed for leading CA by profession with decades of leadership Rich industry experience across integrated te
Slide 33: Consolidated Income Statement - Quarterly
CONSOLIDATED INCOME STATEMENT - QUARTERLY Particulars (₹ Cr) Q4FY23 Q4FY22 Y-o-Y Q3FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue from Operations 3,395 5,464 -37.9% 4,127 -17.7% 18,051 19,062 -5.3% Expenses 3,252 5,074 3,874 16,921 17,794 EBITDA 143 390 -63.4% 254 -43.5% 1,129 1,268 -10.9% EBITDA Margin (%) 4.2
Slide 34: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Equity and Liabilities (₹ Cr) Mar-23 Mar-22 Assets (₹ Cr) Mar-23 Mar-22 Equity Non Current Assets Equity share capital 49 49 Plant, Property & Equipment (net) 357 724 Other equity 2,765 3,113 Right use of assets 444 458 Equity attributable to holders of the parent 2,814 3,
Slide 35: Consolidated Cash Flow
CONSOLIDATED CASH FLOW Particulars (₹ Cr) Mar-23 Mar-22 Profit before Tax 878 1,169 Adjustment for Non-Operating Items 431 522 Operating Profit before Working Capital Changes 1,309 1,691 Changes in Working Capital 587 -557 Cash Generated from Operations 1,897 1,134 Less: Direct Taxes paid 314 284 Ne
Slide 36: 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 35
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