Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — Investor Presentation (November 2021)
37 slides from Adani Ports & Special Economic Zone's investor presentation, Nov 9, 2021
Slide 1: Intimation for interactions with Investors
Ref No: APSEZL/SECT/2021-22/100 November 9, 2021 BSE Limited National Stock Exchange of India Limited Floor 25, P J Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 532921 Scrip Code: ADANIPORTS Sub: Intimation for interactions wit
Slide 2: Adani Ports and SEZ Limited
Adani Ports and SEZ Limited November 2021
Slide 3: Contents
Contents A Group Profile B Company Profile C Growth Journey of APSEZ D Opportunity embedded in Integrated logistics E Value Creation and Investment Thesis F Annexure 2
Slide 4: 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 63.8% 100% 75% 60.2% network to serve key ATL AGEL geographies across India APSEZ NQXT2 Port & Logistics
Slide 5: Adani Group: Long track record of industry best growth rates across sectors
Adani Group: Long track record of industry best growth rates across sectors Port Cargo Throughput (MMT) Renewable Capacity (GW) Transmission Network (ckm) CGD7 (GAs8 covered) 132% 12% 45% 21% 3x 5x 3x 30% 1.5x 4% 7% 25% Industry Adani APSEZ Industry Adani AGEL Industry ATL Industry AGL 2014 972 MMT
Slide 6: 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 capital stru
Slide 7: 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 8: APSEZ: A transport utility with string of ports and integrated logistics network
APSEZ : A transport utility with string of ports and integrated logistics network 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 Co
Slide 9: APSEZ: 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 10: 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 150X 3X 200+Trains 15 MMLP 2.5+ MMT 60* mnSq.ft. 2000+ KMs FY25 (Largest Private (Covering a
Slide 11: APSEZ ESG Framework
APSEZ ESG Framework
Slide 12: APSEZ: Robust ESG assurance framework
APSEZ : Robust ESG assurance framework Guiding principles United Nations Sustainable TCFD SBTi Global Compact Development Goals Disclosure Standards GRI Standards BRSR IIRC CDP disclosure Policy Structure Focus Area - UNSDG • Environment Policy • Climate Action E • Energy and Emission Policy • No po
Slide 13: APSEZ: Social Initiatives
APSEZ : Social Initiatives (H1 FY22) Education • More than 2,944 meritorious students from underprivileged sections receive free education along with daily meals at Adani Vidya Mandirs 2. Zero Hunger • 3156 students receive education at highly subsidized rates through our schools at United Nations 4
Slide 14: APSEZ: Governance initiatives
APSEZ : Governance initiatives Policies Committees Assurance • Environment Policy covered in BR • Corporate Responsibility Committee Policy • Risk Management Committee Corporate Responsibility Committee • Corporate Social Responsibility Policy • Corporate Social Responsibility Committee “CRC” formed
Slide 15: Value creation and Investment Thesis
Value creation and Investment Thesis
Slide 16: APSEZ: Immense value creation
APSEZ : Immense value creation FY16 FY21 FY25 Capital Employed* Rs.341 bn. 1.8x Rs.605 bn. 1.3x Rs.771 bn. EBITDA Rs.46 bn. 1.8x Rs.81bn. 2.3x Rs.187bn. Net Debt / 3x EBIDTA 4.4x 1.3x 3.3x = ROCE 11% 160 bps 12% >740 bps 20%+ • Capital employed grows by 1.3x while EBIDTA improves 2.3x • EBITDA to do
Slide 17: Investment opportunity
APSEZ : Investment opportunity APSEZ : Medium Term • Largest transport utility covering entire supply chain with 29%^ Growth Targets market share and 90% of hinterland coverage in India. • Diversification of cargo mix, east coasts west coast parity and de-risks our portfolio from concentration and v
Slide 18: Thank You
adani Ports and Logistics Thank You
Slide 19: Annexure: Operational and Financial Performance - H1 FY22
Annexure Operational and Financial Performance - H1 FY22
Slide 20: APSEZ: Strategic highlights – H1 / FY22
APSEZ : Strategic highlights – H1 / FY22 Operations Capital Management Growth • 47% Growth in cargo volume compared • APSEZ became the first Indian • Acquisition of 10.4% stake in Gangavaram to 16% growth by all India ports infrastructure company to have raised a Port (GPL) held by Government of And
Slide 21: APSEZ: Operational highlights – H1 / FY22
APSEZ : Operational highlights – H1 / FY22 (YoY) Cargo volume Cargo Market Share West Coast Volume 47% 310 bps 26% H1 FY21 H1 FY22 FY21 H1 FY22 H1 FY21 H1 FY22 98 144 25.5% 28.6% 78 MMT 98 MMT MMT MMT Container volume Container Market Share East Coast Volume 42% 144 bps 134% H1 FY21 H1 FY22 FY21 H1
Slide 22: APSEZ: Cargo volume H1 / FY22 vs All India
APSEZ : Cargo volume H1 / FY22 vs All India (YoY in MMT) APSEZ All India Cargo* 504 16% 434 144 47% 98 141 60 109 30% 42 42% H1 FY21 H1 FY22 H1 FY21 H1 FY22 APSEZ Total Cargo APSEZ Container All India Total Cargo All India Container East Coast - West Coast Share H1 FY21 H1 FY22 H1 FY21 H1 FY
Slide 23: APSEZ: Balanced cargo composition – H1 / FY22
APSEZ : Balanced cargo composition – H1 / FY22 51% 48% 45% 45% 45.8% 44% 44% 43% 41.8% 41% 41% 41% 37% 32% 17% 15% 15% 14% 14% 12% 11.9% 0.3% 1.0% 0.5% FY16 FY17 FY18 FY19 FY20 FY21 H1 FY22 Dry Liquid (incl. Crude) Gas Container 22
Slide 24: APSEZ: Financials highlights – H1 / FY22
APSEZ : Financials highlights – H1 / FY22 (YoY, in INR Cr) Operating Revenue Operating EBITDA^ 56% 47% 5,195 8,089 3,288 4,826 Port Revenue Port EBITDA Port EBITDA Margin 46% 47% 4,336 6,347 3,043 4,458 70% 70% PBT* PAT** EPS 13% 7% 5% 2,740 3,105 2,152 2,310 10.56 11.07 **During Q2 pursuant to a no
Slide 25: APSEZ: Key segment wise Operating revenue & EBITDA - H1 / FY22
APSEZ : Key segment wise Operating revenue & EBITDA* - H1 / FY22 (YoY - Rs. in Cr) Ports Logistics 600 546 100% 7,000 6,347 100% 90% 500 431 6,000 80% 80% 5,000 4,336 4,458 70% 400 60% 4,000 60% 3,043 300 50% 3,000 40% 40% 200 135 2,000 30% 95 100 20% 20% 1,000 10% - 0% - 0% H1 FY21 H1 FY22 H1 FY21
Slide 26: APSEZ: Debt profile – H1 / FY22
APSEZ : Debt profile – H1 / FY22 (Rs. In Cr) Gross Debt, Net Debt & Average Maturity Gross Debt Movement 50,000 50,000 7.20 5,248 351 822 44,996 7.01 44,996 45,000 45,000 7.00 40,000 6.80 5,818 34,401 40,000 35,000 31,307 28,472 6.60 30,000 34,401 6.40 35,000 25,000 6.20 20,000 30,000 5.98 6.00 15,0
Slide 27: APSEZ: Strong operational performance results in strong FCF
APSEZ : Strong operational performance results in strong FCF* (Rs. in Cr) Cash Flow Conversion 9000 72% 80% 8000 70% 8063 7000 7565 53% 60% 52% 6000 5800 50% 5000 3942 40% 4000 4826 2550 30% 3000 • Free cash flow from operation does not include 2000 20% cash flow from Gangavaram port and the Sarguja
Slide 28: APSEZ: Key ratios - H1 / FY22
APSEZ : Key ratios - H1 / FY22 Rating Ratios^ 30.0% 5.1x 6.0x 25.4% 25.0% 22.3% 23% 5.0x 4.5x 20.0% 18% 4.0x 15.0% 3.0x • All key ratios continue to be within the prescribed 10.0% 2.0x range. 5.0% 1.0x • In H1 FY22 total Revenue includes US$ 293 Mn of 0.0% 0.0x earnings in FX currency. The growth is
Slide 29: APSEZ: Port wise returns
APSEZ : Port wise returns 16% Mundra 15% 16% 24% Hazira 19% 20% 13% Dahej 11% 24% 12% Dhamra 11% 15% Port wise ROCE 5% Kattupalli 3% 1% Krishnapatnam 8% 9% 5% Logistics 2% 4% -5% -5% Terminals -3% FY20 FY21 H1 FY22 In line with our strategy of improving capacity utilization and diversification of ca
Slide 30: APSEZ: Acquisition of Gangavaram Port (GPL) – Update
APSEZ : Acquisition of Gangavaram Port (GPL) – Update (in Rs. Cr) • APSEZ acquired 31.5% stake from Warburg Pincus and Particulars (INR Cr) FY21 H1 FY22** FY22E^ Growth (YoY) 10.4% from Government of Andhra Pradesh during the Cargo 32 16 39 19% reported period. With this APSEZ is currently holding 4
Slide 31: APSEZ: Acquisition of Sarguja Rail Corridor (SRCPL) – Update
APSEZ : Acquisition of Sarguja Rail Corridor (SRCPL) – Update (in Rs. Cr) Particulars (INR Cr) FY21 H1 FY22** FY22E* Growth (YoY) • APESZ is consolidating its rail track assets by acquiring Sarguja Rail Corridor (SRCPL). Cargo (MMT) 15 7 19 26% • As per the board approved revised Related Party Opera
Slide 32: APSEZ: ESG update H1 / FY22
APSEZ : ESG update H1 / FY22 H1 FY22 Performance Progress till date Energy Intensity* Emission Intensity* Wind Captive# Solar Captive# 11% ↓ 15 % ↓ 6 MW 14 MW 175 GJ/Revenue 21 tCO2e/Revenue Water Intensity* Waste Management* Terrestrial Plantation# Mangrove# 16 % ↓ 84% 1.7 Million 2989 Ha - Affores
Slide 33: APSEZ: ESG performance H1 / FY22
APSEZ : ESG performance H1 / FY22 Energy Intensity Emission Intensity Renewable Energy Share • Improvement in intensities 198 9.3% on account of increase in 200000 30 10.0% 1600000 9.0% 175 180 180000 1400000 160 160000 25 25 8.0% revenue driven by cargo 1200000 140 140000 21 20 7. 0% growth 1000000
Slide 34: APSEZ: Governance initiatives
APSEZ : Governance initiatives Board Committee Restructuring Myanmar Divestment • Existing Board Committee composition changed: Committee Existing Proposed ▪ The Company’s Risk Management Audit & Nomination & Remuneration 75% Independent Directors 100% Independent Directors Committee, after a review
Slide 35: APSEZ: Outlook FY22
APSEZ : Outlook FY22 ❖ Cargo volume guidance revised to 350 - 360 MMT, a growth of 45% Volume ❖ This includes 10 MMT of incremental volume from existing ports and 39 MMT of Gangavaram port (GPL) which will be consolidated from April ‘21. ❖ Consolidated revenue - Rs.18,000 cr. – Rs.18,800 cr. (includ
Slide 36: APSEZ: 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 37: 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
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