Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — Annual BlackRock Summit (June 2021)
33 slides from Adani Ports & Special Economic Zone's conference presentation, June 2021
Slide 1: Adani Ports and SEZ Limited
Adani Ports and SEZ Limited June, 2021
Slide 2: Contents
Contents A Group Profile B Transformational Journey of APSEZ C Update of FY21 D Going Forward E Opportunity embedded in Integrated logistics F Capital Management and ESG G Annexure 2
Slide 3: Adani Group: A world class infrastructure & utility portfolio
Adani Group: A world class infrastructure & utility portfolio Adani Transport & Logistics Energy & Utility • Marked shift from B2B to Portfolio Portfolio B2C businesses– • ATGL – Gas distribution 63.7% 100% 75% 56% network to serve key ATL AGEL geographies across India APSEZ NQXT2 Port & Logistics T
Slide 4: Adani Group: Decades long track record of industry best growth rates
Adani Group: Decades long track record of industry best growth rates across sectors Port Cargo Throughput (MMT) Renewable Capacity (GW) Transmission Network (ckm) CGD7 (GAs8 covered) 12% 45% 118% 20% 3x 5x 3x 30% 1.5x 4% 7% 25% Industry Adani APSEZ Industry AGEL Adani Industry ATL Industry AGL 2014
Slide 5: Adani Group: Repeatable, robust & proven transformative model of investment
Adani Group: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt Activity • Analysis & market • Site acquisition • Engineering & design • Life cycle O&M • Redesigning the capital
Slide 6: APSEZ: Transformational journey
APSEZ : Transformational journey Industry Business • 3x growth compared to market achieved without dilution • From a single port single commodity to an integrated in equity. logistics platform. • Driving efficiency through mechanization at large scale. • Strategic partnerships to unlock value. • Gro
Slide 7: A transport utility with string of ports and integrated logistics network
APSEZ : A transport utility with string of ports and integrated logistics network West Coast East Coast Capacity 335 MMT Capacity 227* MMT Dahej 14 MMT Tuna 14 MMT Mundra 264 MMT Dhamra Hazira Vizag 45 MMT Mundra - 30 MMT 6 MMT India’s Largest Commercial Dighi Gangavaram^ Container Terminals Port by
Slide 8: Our Strategy led to dominant market leadership
APSEZ : Our Strategy led to dominant market leadership Cargo Diversification FY02 FY11 FY21 Coal Containers (mmt) Crude Others APSEZ’s pillars of strategy Strategic Partnerships Integrated logistics FY02 FY11 FY21 East Coast West Coast parity West East West East West East Ensured resilience and stic
Slide 9: Growth journey in past two decades
Growth journey in past two decades 9
Slide 10: Consistent outperformance leading to gain in market share
APSEZ : Consistent outperformance leading to gain in market share Total cargo (MMT) 247 • Geographical diversification and parity in coasts led to reduction in concentration risk and higher growth. All India CAGR – 5% • Cargo diversification led to de-risking of cargo portfolio 1246 from commodity v
Slide 11: Revenue and EBITDA growth reflect robust cargo growth
APSEZ : Revenue and EBIDTA growth reflect robust cargo growth (In INR Bn) Revenue EBITDA and EBITDA Margin CAGR – 41% CAGR – 41% 126 9,000 80% 81 8,000 70% 69% 7,000 64% 60% 6,000 50% 5,000 40% 4,000 30% 3,000 20% 2,000 1,000 10% 0.13 0.2 - 0% EBITDA (Rs.Cr) EBITDA (%) • Customer centric services, s
Slide 12: FY21 Update and FY25 outlook
FY21 Update and FY25 outlook 12
Slide 13: Operational and Financial Highlights of FY21
APSEZ : Operational and Financial Highlights of FY21 Operating revenue at Rs.125 Bn 6% Cargo volume of 247 MMT 11% EBITDA* at Rs.80 Bn 7% Port revenue at Rs.107 Bn 12% Port EBITDA* at Rs.76 Bn 15% Market share in cargo volume at 25% 4% Port EBITDA margin at 70% 1% Container volume of 7.2 mn TEUs 16%
Slide 14: Medium term outlook
APSEZ : Medium term outlook Business Strategy Finance • Expanding capacity in • Going regional to build • To maintain Investment east and southern ports on our network strength grade rating. to capture hinterland • Focus on providing • Operational excellence & growth in the areas. single window serv
Slide 15: FY25 targets
APSEZ : FY25 (In INR Bn) Cargo Volume (MMT) Revenue EBITDA 274 187 500 2x 2.2x 2.3x 247 126 81 • Our business will grow as a transport utility in next five years FY21 FY25 FY21 FY25 FY21 FY25 • This period to witness Multiple times growth PAT FCF ROCE • Our focus on free cash generation 122 159 20%
Slide 16: Opportunity embedded in Integrated Logistics
Opportunity embedded in Integrated Logistics 16
Slide 17: Ample headroom for growth in expanding Infrastructure footprint
APSEZ : Ample headroom for growth in expanding Infrastructure footprint Rail - Container Grain Logistics - AALL 0.3 • 4.1 Mn TEU - Market Size 1.28 • 10.5 MMT - Market Size Mn Teu • 0.3 MnTEU - ALL Market Share MMT • 1.28 MMT - ALL Market Share (8%) (12%) • Market Expected to grow at healthy 12% gro
Slide 18: Integrated logistics to provide growth impetus & bring customers to ports gate
APSEZ : Integrated logistics to provide growth impetus & bring customers to ports gate Grain Rail Trains MMLPs Ware-housing Silos Tracks Assets 60 5 0.87 0.4 mn 620* FY21 Trains MMLP MMT Sq. ft. KMs 3X 3X 3X 75X 1.2X 200+Trains 15 MMLP 2.5+ MMT 30 mn Sq. ft. 760+ FY26 (Largest Private (Covering all
Slide 19: Capital Management and ESG
Capital Management and ESG 19
Slide 20: Disciplined capital management policy
APSEZ : Disciplined capital management policy Consistent investment Shift towards long term FX risk management- grade rating financing and profile Natural Hedge • Since FY16, capped at • Natural hedge flows as carrying • 94% of debt is long term sovereign. ~60% of EBIDTA in USD terms. (compared to 7
Slide 21: Robust ESG framework driven by policies backed by assurance
APSEZ: Robust ESG framework driven by policies backed by assurance Environmental Policy Environment Energy and Emission Policy Water Stewardship Policy Focus Areas Occupational Health and Safety Policy Stakeholder Engagement policy Occupational Health & Policies Social Corporate Social
Slide 22: ESG score comparison with global peers
APSEZ: ESG score comparison with global peers Bloomberg ESG Disclosure Score MSCI Rating Independent Directors % Maersk ICT, SIPGL, Concor 60 60 48 49 56 42 50 38 43 34 36 22 AAA AA A BBB BB B CCC APSEZ Sustainalytics ESG Risk Rating Free Float % Member of # Indices 38 72 109 99 98 28 51 82 76 79 23
Slide 23: ESG Targets - Environment
APSEZ: ESG Targets - Environment Carbon neutral by 2025 | Zero waste to landfill by 2025 | Single use plastic free by 2025 Mangrove afforestation 4000 Ha | Terrestrial Plantation in 1200 Ha by 2025 FY21 FY25 Renewable energy installation 20 MW 100 MW Environmental Parameters Energy intensity reducti
Slide 24: ESG Targets - Social & Governance
APSEZ: ESG Targets - Social & Governance FY21 FY25 Employee Satisfaction Social Parameters 4.1/5 4.5/5 Supplier Satisfaction 3.9/5 4.75/5 Customer Satisfaction 4.2/5 4.75/5 Safety 6 Fatalities + 17 LTI Zero Fatalities • All CXO level salaries are linked to safety Governance • Audit committee, nomina
Slide 25: Recent news flow on ESG front
APSEZ : Recent news flow on ESG front DJSI committee decided to remove APSEZ from its sustainability index on account of two key issues • APSEZ’s holding in Bowen Rail and its perceived link to Carmichael Coal mines. • APSEZ’s Investment in Myanmar Project - Sanction by US and European authorities t
Slide 26: Significant potential to unlocking value
APSEZ : Significant potential to unlocking value Ports Logistics SEZ / Land (Value Creator) (Value Multiplier) (Value Enabler) – Next gen ports viz. Dhamra, – Unique & diversified business model of – Bringing customer to the port gate to Gangavaram, Krishnapatnam, & providing integrated logistics se
Slide 27: Thank you
Thank you 27
Slide 28: Annexure
Annexure 28
Slide 29: Outlook FY22
APSEZ : Outlook FY22 In the range of 310 MMT - 320 MMT (includes 10 MMT of Gangavaram port from Q4 FY22) a growth of 29% Consolidated revenue expected to be around Rs.160 Bn. – Rs.168 Bn., a growth 34% Port revenue to be around Rs.130 Bn. – Rs.140 Bn., a growth of 30% Logistics revenue to be
Slide 30: Debt profile – FY21
APSEZ : Debt profile – FY21 (YoY - Rs. in cr.) Gross Debt, Net Debt & Average Maturity Gross Debt Movement 40,000 6.2 34,401 6 5,447 35,000 776 267 34,401 6 29,463 28,472 30,000 5.8 29,463 25,000 22,137 5.6 20,000 5.4 15,000 5 5.2 10,000 5,000 5 0 4.8 Mar'2020 Mar'2021 FY20 Additional FX debt Forex
Slide 31: Strong operational performance improves FCF in FY21
APSEZ : Strong operational performance improves FCF* in FY21 (YoY - Rs. in cr.) Cash Flow Conversion Free Cash Flow Movement 7000 9000 80% 1668 36 72% 6000 8000 70% 8063 5000 760 606 7000 7565 52% 60% 6000 50%4000 5000 5800 40%3000 4000 5800 3942 30% 3000 2000 3942 2000 20% 1000 10%1000 0 0% 0 FY20
Slide 32: Key ratios of FY21
APSEZ : Key ratios of FY21 Rating Ratios ROCE^ and ROE 30% 27.6% 5.1x 5.2x 25.4% 5.1x 17% 25% 22.7% 22.3% 5.1x 15% 20% 5.0x 13% 5.0x 12% 15% 4.9x 4.8x 4.9x 10% 4.8x 5% 4.8x 4.7x 0% 4.7x FY 20 FY21 FFO / Gross Debt (18% - 25%) FFO / Net Debt (13% to 15%) FY 20 ROCE ROE FY21 FFO Interest coverage (3x
Slide 33: Disclaimer
Disclaimer 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 grow
Adani Ports and Special Economic Zone — Annual BlackRock Summit (June 2021) on 6ix