Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Axis Capital India Conference 2019
30 slides from Mahindra Logistics's conference presentation, May 27, 2019
Slide 1: Outcome of interactions with Analysts / Institutional Investors cover letter
Mahirtdra Logistics L killed Mahindra Unit No. 3 ck 4, 76 Floor, Tecliniplex 2., Techrtipier Complex, Veer S avarkar Marg, LOGISTICS Goregaon (West). Murnbai - 400 062 Tel : + 91 22 28715500 Our Ref: MLLSEC/105/2019 Td1 Free : 1S00 258 6787 Maltindralogislies.com 27 May 2019 Read Office MakUnd re. T
Slide 2: Company Profile, May 2019
Company Profile May, 2019 May, 2019
Slide 3: Disclaimer
mal,indra LOGISTICS Disclaimer Certain statements and opinions with respect to the anticipated future performance of Mahindra Logistics in the presentation (“forward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not p
Slide 4: Overview
Overview IMahindra Group IMLL Snapshot IIndustry Update IBusiness Model IBusiness Details IFinancial Indicators IWay Ahead 3
Slide 5: Mahindra Group
Mahindra Group Automotive RISE Aftermarket Information Technology Financial Services Farm Equipment Accepting Alternative Driving positive Aerospace & Defence no limits thinking change Hospitality Real Estate Two Wheelers Good Corporate Dignity of Profession-alism Citizenship Customer Quality the In
Slide 6: One of India's largest 3PLs
One of India’s largest 3PLs INR 38+ Bn revenue(1) 17,800+ work force across India(2) 475+ client and operating locations Divisions: Supply Chain Management People Transport Solutions Subsidiaries: Lords Freight (India) Pvt. Ltd. 2x2 Logistics Pvt. Ltd. Joint Venture: Transtech Logistics Private Limi
Slide 7: History and achievements
MLL Snapshot History and achievements Mahindra Logistics Limited (MLL) Key Awards & Recognitions FY’09 founded and logistics business of M&M transferred to MLL Award, Achievements & Certifications Year SCALE Award for Overall Excellence 2018 New Management team focused on FY’11 building 3PL and
Slide 8: Led by a management team with comprehensive industry and functional experience
MLL Snapshot Led by a management team with comprehensive industry and functional experience Mr. Pirojshaw Sarkari (Phil) Mr. Sushil Rathi Mr. Yogesh Patel CEO COO CFO Previously, MD of UPS, Jet air Express and UPS Previously worked with Anantara Solutions, the Previously, Director-Finance at E
Slide 9: Recognitions received in FY19
MLL Snapshot Recognitions received in FY19 NITIE Awards: MLL won 3 silver awards CII SCALE Award for overall excellence Mahindra Innovation Awards: Gold award MLL General Motors team won an award for Mobile Dock Leveler for excellence at the National Convention on Quality Concepts, Gwalior Nagpur te
Slide 10: Unprecedented and favourable government interventions in the recent past
Industry Update Unprecedented and favourable government interventions in the recent past Policy Description 1 GST A major driver for future growth and supply chain consolidation Infrastructure 2 Focus on reducing the cost of logistics in India status Regional air Connects underserved airports
Slide 11: The government continues to work towards developing the logistics sector
Industry Update The government continues to work towards developing the logistics sector Draft National NITI Ayog to FAME II set new Logistics Policy introduce ITeS policy standards released The Ministry of Commerce Government think tank, Niti The Ministry issued a new releases the draft of th
Slide 12: 3PL outsourcing has a strong growth outlook
. Industry Update 3PL outsourcing has a strong growth outlook mi Growth trajectory Logistics segments Total logistics F3PL business I Nearly two thirds of the INR ‘000s cr INR ‘000s cr logistics sector is transportation, the remainder 3,450 121 is warehousing / storage 1,560 43 Road transport ac
Slide 13: MLL's competitive advantage is its asset light model
Business Model MLL’s competitive advantage is its asset light model Customers MLL 1 ▪ Scalable solutions – 010 • • ▪ High Return on both upwards and Equity downwards MLL Asset ▪ Enables faster ▪ Flexible, Light model growth customized benefits both solutions that meet customers specific needs ▪ Econ
Slide 14: Asset light business built on formidable ecosystem of business partners
Business Model Asset light business is built on formidable ecosystem of business partners Enablers to attract and retain partners Business partner network Unique strengths that have enabled MLL to create a wide network of business partners: Vehicles ~1,000 nos. ~500 nos. ▪ Genesis of the business mo
Slide 15: Supply Chain Management (SCM)
Business Details Supply Chain Management (SCM) • • • • .1k Supply chain Freight Transportation MLL Network – consulting forwarding surface express MLL services N _MU\ MINIM / Warehousing - • •wAry In-factory stores • IK W VAS (e.g, Packing, inventory & order & line feed Distribution labelling, kitti
Slide 16: SCM: Diverse industries and clients
Business Details SCM : Diverse industries and clients Diversified Logistics Company SCM business spans Automotive, Engineering, Consumer, Bulk, E-commerce, and Pharma sectors 65% of non-Mahindra business came from top 20 customers in Fiscal 2019 – Given the nature of business, engagement origina
Slide 17: Warehouse space under management has increased over the years
Business Details Warehouse space under management has increased over the years Warehousing space under management Share of Revenue from Warehousing & related 16 activities 14 F-15 12 10 F-16 8 15 F-17 13.5 6 10 4 F-18 2 F-19 - YTD Dec 0 F-17 F-18 F-19 - YTD Dec 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 14
Slide 18: People Transportation Solutions (PTS)
Business Details People Transportation Solutions (PTS) One of India’s largest organized asset light players Offers technology enabled people transportation solutions and services to domestic and multinational corporates • N • • I I 12 120+ I I I I I I I Cities I I Clients •, I • • N 500+ Busines
Slide 19: F19 CSR Initiatives
Business Details F19 CSR Initiatives Community Building • PMKVY training to 10,000 drivers (skill development) • Health and eye check-up camps for 2,000+ drivers • Scholarships for at least 100 underprivileged children Village Adoption – Tembha Village • Build pipeline to provide access to drinking
Slide 20: Key Highlights – FY2019 vs FY2018
Financial Indicators Key Highlights – FY2019 vs FY2018 3,851 t 12.7% 159 t 26.5% Revenue from operations EBITDA 1,366 t 8.8% 133 t 30.7% Revenue from Non Mahindra SCM PBT Segment 385 t 13.2% 86 t 32.4% Revenue from PTS Segment PAT 90 t 35.7% Adjusted PAT (Pre RSU/ESOP Charge) Note: 1. Consolidated f
Slide 21: FY19 Financial highlights
Financial Indicators FY19 Financial highlights Revenue from operations grows to Rs. 3,851 crore, up 12.7% Y-o-Y • M&M revenues in SCM business increases by 15.4% • Non-M&M revenues in SCM business increases by 8.8% o Revenue from warehousing & other valued-added services increases by 29.5% EBITDA at
Slide 22: Demonstrated track record of profitable growth
Financial Indicators Demonstrated track record of profitable growth Healthy growth in revenues over the last 5 years… 12.7% CAGR -.191° 3,851 3,416 2,667 1,931 2,064 I FY 15 FY 16 FY 17 FY 18 FY 19 …leading to sizeable PAT 32.3% 86.4 CAGik -22% 65.3 46.1 38.5 36.0 • FY 15 FY 16 FY 17 FY 18 FY 19 Not
Slide 23: Segmental Performance – SCM
Financial Indicators Segmental Performance – SCM Revenue Gross Margin 20% 3,466 CA,GR - 24°k. 282 cp,Gck - 3,076 242 2,376 182 1,679 1,814 131 119 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 Mahindra Revenue Non-Mahindra Revenue 1,366 2,100 cp,Gg - 40% 1,256 GNGR -12% 1,820 953 1,327
Slide 24: Non-Mahindra SCM Revenue Analysis
Financial Indicators Non-Mahindra SCM Revenue Analysis Warehouse & other value-added Transportation Break up segments 354 Gp.Gg - 440/0 983 1,012 26% 273 746 ell 207 391 137 74% 117 235 I I I 411 FY 15 FY 16 FY 17 FY 18 FY 19 I Activity-wise Breakup FY19 11 I FY 15 FY 16 FY 17 FY 18 FY 19 Auto Non-A
Slide 25: Segmental Performance – PTS
Financial Indicators Segmental Performance – PTS Revenue Gross Profit 41 cp.GR 385 CP,GR - 16°1° 340 32 30 295 252 250 23 23 I I II FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 Note: 1. Consolidated financials 2. All figures in INR crore, unless stated otherwise. 24
Slide 26: FY19 Return on Capital Employed, Return on Equity and Net Working Capital
Financial Indicators FY19 Return on Capital Employed, Return on Equity ••• and Net Working Capital Return On Capital Net Working Return on Employed Capital Equity (Ex-Surplus Funds) Net Working Capital Days: 38.0% 18.6% 21 days TDS: 8 Days Notes: (1) ROCE ex Surplus Fund (Profit Before Interest & Ta
Slide 27: MLL purpose and vision statement
Future Plan MLL Purpose statement ACCELERATING COMMERCE, EMPOWERING COMMUNITIES wRise. MLL vision statement Rise to be a INR 6,000 crore Logistics Service Provider by 2021, delivering consistent customer experiences in defined industry verticals through customized, technology driven solutions 26
Slide 28: Technology platforms, digitization, and process excellence
Future Plan Technology platforms, digitization, and process excellence: key enablers of the asset light model Transport Management Warehouse Management Digitization Systems Systems • MILES(1): Exclusively for the • Configurable based on • Digital and transformation office transportation of finished
Slide 29: Focus areas
Future Plan Focus areas , , Expand Margins Sustained growth in Non- M&M supply chain business Cost savings through increase in productivity • Penetrate existing accounts Enhance realization across deliverables • Build the pipeline ` of new accounts Participative approach towards margin • Accel
Slide 30: Thank you
Thank you 29
Mahindra Logistics — Axis Capital India Conference 2019 on 6ix