Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — Investor Presentation (June 2022)
51 slides from Adani Ports & Special Economic Zone's investor presentation, June 2022
Slide 1: Adani Ports and SEZ Limited
Adani Ports and SEZ Limited June, 2022
Slide 2: Contents
Contents A Group Profile B Company Profile C Growth Journey of APSEZ D Investment Case E Annexure 2
Slide 3: Group Profile
A Group Profile STRICTLY CONFIDENTIAL
Slide 4: Adani: A World Class Infrastructure & Utility Portfolio
Adani: A World Class Infrastructure & Utility Portfolio ~USD 206 bn1 Combined Market Cap Infrastructure Portfolio Incubator Energy & Utility Transport & Logistics Direct to consumer Other businesses (74.9%) (61.3%) (74.9%) (65%) (100%) (44%) AGEL ATL APSEZ AWL AEL NQXT2 Renewables T&D Ports & Logist
Slide 5: Adani: Decades long track record of industry best growth rates across sectors
Adani: Decades long track record of industry best growth rates across sectors Port Cargo Throughput (MMT) Renewable Capacity (GW) Transmission Network (ckm) CGD7 (GAs8 covered) 45% 12% 132% 18% 3.4x 5x 3x 30% 1.5x 4% 6% 25% Industry Adani APSEZ Industry AGELAdani Industry ATL Industry AGL 2014 972 M
Slide 6: Adani: Repeatable, robust & proven transformative model of investment
Adani: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt • Site acquisition • Engineering & design • Redesigning the capital structure Activity • Analysis & market • Life cycle
Slide 7: Company Profile
B Company Profile STRICTLY CONFIDENTIAL
Slide 8: APSEZ: Transformational Business Model
APSEZ: Transformational Business Model Ports Logistics SEZ • National footprint with 12 ports • Largest integrated logistics player in • Large scale ‘ready to setup’ industrial across the coastline, de-risks the India land (SEZ) Development portfolio of concentration risk. • Rail, MMLPs, Warehousing
Slide 9: A transport utility with string of ports and integrated logistics network
APSEZ: A transport utility with string of ports and integrated logistics network Grown from a single port to Twelve Ports ~560 MMT of An integrated approach through Ports, SEZ and augmented capacity to handle all types of cargo Logistics enables presence across value chain *Includes both SEZ and non
Slide 10: Logistics to provide growth impetus & help reaching customer's gate
APSEZ: Logistics to provide growth impetus & help reaching customer's gate Trains MMLPs Grain Silos Ware-housing Rail Tracks Assets 24 4 0.4 mn 510 FY16 Trains MMLP -- Sq. ft. KMs 75 6 0.87 0.8 mn 620 FY22 Trains MMLP MMT Sq. ft. KMs 3X 3X 3X 75X 3X 200+Trains 15 MMLP 2.5+ MMT 60 mn Sq. ft. 2000+ KM
Slide 11: Growth Journey
C Growth Journey STRICTLY CONFIDENTIAL
Slide 12: Sequential cargo volume growth beats industry
APSEZ: Sequential cargo volume growth beats industry (in MMT) APSEZ Cargo Throughput All India Cargo Throughput* 350 1050 312 1024 1016 300 1000 979 247 971 250 223 208 180 950 934 200 169 150 894 900 100 850 50 0 800 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 APSEZ Cargo All India
Slide 13: Growth in cargo throughput led by change in mix
APSEZ: Growth in cargo throughput led by change in mix 600 500 ~33% MMT All India cargo 500 Market Share by FY25 400 312 42% 247 MMT Container 300 MMT share 38% 200 41% 52 100 MMT 3 MMT 0 FY02 FY11 FY21 FY22 FY25 Others Crude Coal Container Diversification of cargo started from FY10, with container
Slide 14: Cargo growth driven by parity among coasts & share of non-Mundra ports
APSEZ: Cargo growth driven by parity among coasts & share of non-Mundra ports East Coast – West Coast Parity 11% 49% 38% 51% FY25 FY02 FY11 FY22 62% 100% 89% West East West East West East West East Growing share of non Mundra Cargo Non Mundra ports volume CAGR 57% 99% from FY11 72% 64% 48% 52% 28% 3
Slide 15: Glide path for FY25
APSEZ: Glide path for FY25 Historical track record Growth momentum to continue 312 500 312 Cargo 152 (MMT) 52 FY11 FY16 FY22 FY22 FY25 274 171 171 Revenue 79 (INR bn) 20 FY11 FY16 FY22 FY22 FY25 187 104 104 EBITDA 46 (INR bn) 13 FY11 FY16 FY22 FY22 FY25 Accelerated growth to continue resulting In si
Slide 16: APSEZ: Debt Profile
APSEZ: Debt Profile Debt Maturity Long term vs short term debt 10 7 FY16 FY22 FY25 10% 6% 26% 3 2 74% 90% 94% FY11 FY16 FY22 FY25 Long Term Short Term FX vs INR debt • 41% of the debt is having 5+ years of maturity FY25 • Debt profile shifting to each single FY16 FY22 maturity to be within cashflow
Slide 17: Consistent increase in EBIDTA leading to stronger credit profile
APSEZ: Consistent increase in EBIDTA leading to stronger credit profile Capital Management 120 6.0x 100 5.0x 4.8x 4.5x 4.2x Strong business fundamentals to 80 4.0x result in: 3.4x 60 3.4x 3x 3.0x Significant increase in earnings 2.9x Including GPL De-leverage 40 2.0x Improve Interest coverage
Slide 18: Consistent USD denominated revenue resulting in higher coverage
APSEZ: Consistent USD denominated revenue resulting in higher coverage Forex denominated long term debt (In USD mn) 4500(In USD mn) Including GPL 350% 4000 2.9x 2.8x 300% • Strategy to borrow in foreign currency 4,044 3500 2.5x is based on underlying USD earnings 250% 3000 3,237 2500 2.3x 200% • USD
Slide 19: Sustained FX debt servicing coverage
APSEZ: Sustained FX debt servicing coverage Forex denominated long term debt (In USD mn) 1200 600% 5.0x 974 1000 500% 822 800 725 400% • FX debt service coverage of more than 3.0x 600 300% 3x given our increasing FX revenue 400 200% • Even in FY25, when $650 mn bond is 1.3x coming up for maturity, w
Slide 20: Immense value creation
APSEZ: Immense value creation FY16 FY22 FY25 To double in 3 years EBITDA 2x 2x 46 98 187 with minimal further (INR bn) investment With improved asset Return on Capital utilization & maturing of 11% 11% ~20% Employed (ROCE) assets ROCE at major ports to reach ~20% EBITDA growth in Maintain steady sta
Slide 21: APSEZ Investment Case
D APSEZ Investment Case STRICTLY CONFIDENTIAL
Slide 22: Investment opportunity
APSEZ: Investment opportunity Largest Transport – Covers entire supply chain with 29%^ market share and 90% of economic hinterland in India Utility De-risked asset – Diversification of cargo mix, east coasts west coast parity, de-risks our portfolio from concentration and portfolio volatility Future
Slide 23: Thank You
adani Ports and Logistics Thank You
Slide 24: Annexure
Annexure Operational and Financial and ESG Performance - FY22
Slide 25: Strategic Highlights– FY22 (Ports)
APSEZ: Strategic Highlights– FY22 (YoY) Ports • SRCPL acquisition completed and consolidated in APSEZ books with retrospective effect from 1 April 2021 • Gangavaram acquisition likely to be completed in all aspects during Q1 FY23; post NCLT approval APSEZ FY22 numbers will be restated to include GPL
Slide 26: Strategic Highlights– FY22 (Logistics, SEZ)
APSEZ: Strategic Highlights– FY22 (YoY) Logistics • Launched Grade-A warehousing business segment by partnering with Flipkart for a 534,000 sq. ft. fulfilment center in the upcoming logistics hub at Mumbai • Initiated construction of new warehousing facilities at Mumbai, Indore, Palwal, Ranoli, Koch
Slide 27: Operational Highlights– FY22
APSEZ: Operational Highlights– FY22 (YoY) Ports • APSEZ cargo volume grew by 26% to 312 MMT, journey from 200 MMT to 300 MMT achieved in record three years time • Handled record container volume of 8.2 mn TEUs which is a growth of 14% • Four new types of dry cargo added – Sulphur at Dahej, Dolomite
Slide 28: Robust cargo growth with diversification
APSEZ: Robust cargo growth with diversification (YoY) FY21 FY22 APSEZ Cargo volume East Coast Volume Non Mundra Volume 26% 84% 58% 247 312 64 118 103 162 MMT MMT MMT MMT MMT MMT ASPEZ Container volume West Coast Volume Mundra Volume 14% 6% 4% 7.2 mn 8.2 mn 183 194 144 150 TEUs TEUs MMT MMT MMT MMT 2
Slide 29: Mitigating concentration risk – cargo volume distribution
APSEZ: Mitigating concentration risk – cargo volume distribution (YoY) 120% 100% 26% 80% 38% 37% 36% East Coast 60% vs West Coast Share 40% 74% 62% 63% 64% 20% 0% FY21 FY22 FY21 FY22 APSEZ All India West Coast East Coast FY21 FY22 Mundra 52% 58% vs 42% 48% Non Mundra Share Mundra Non Mundra Mundra N
Slide 30: Diversifying cargo portfolio
APSEZ: Diversifying cargo portfolio (YoY) 43% 41% 41% 41% 38.4% 37% 36% 33% 33% 33.0% 32% 32% 13% 13% 17.0% 12% 11% 13% 13% 9% 12% 8% 11% 11% 3% 3% 2% 3% 3% 3% 0.3% 1.0% 0.5% FY17 FY18 FY19 FY20 FY21 FY22 Dry (Coal) Dry (Non Coal) Liquid (excl Crude) Crude Gas Container 30
Slide 31: Balanced growth across ports
APSEZ: Balanced growth across ports (YoY in MMT) 320 2 1 312 3 1 4 6 300 20 280 30 260 247 240 220 200 FY21 Gangavaram Krishnapatnam* Mundra Terminals Hazira Dhamra Dahej Kattupalli FY22 • Gangavaram port, which is the latest addition to our ports portfolio handled 30 MMT of cargo • Mundra port grew
Slide 32: Balanced growth across cargo type
APSEZ: Balanced growth across cargo type (YoY in MMT) 320 2 1 312 4 310 5 2 0.7 14 300 290 8 17 280 270 14 260 250 247 240 230 220 FY21 Container Non Coking Coking Minerals Fertillizers Agri Other Dry Crude Other Gas FY22 Coal Coal Liquid • All major commodity segments have shown positive growth • D
Slide 33: Sticky cargo ensures resilience
APSEZ: Sticky cargo ensures resilience (YoY, in MMT) 350 70% 312 62% 300 60% 58% 59% 56% 250 247 50% • Sticky cargo constitutes ~49% of 49% 223 total cargo with a higher base 208 200 40% 180 • Sticky cargo grew by 12% 155 150 131 138 30% • 70% of sticky cargo at Mundra Port 121 111 100 20% • Contain
Slide 34: Financial performance FY22
APSEZ: Financial performance FY22 (in INR Cr) Particulars Revenue EBITDA^ FCF APSEZ Consolidated 15,934 9,811 5,261 Gangavaram Port 1,206 796 1,293 Joint Ventures at Mundra 1,975 1,085 801 AICTPL (CT-3), JV with MSC 1,355 732 498 ACMTPL (CT-4), JV with CMA-CGM 620 353 303 Total 19,115 11,692 7,355 A
Slide 35: Financial performance FY22
APSEZ: Financial performance FY22 (YoY, in INR Cr) Operating Revenue PBT* Capex 27% 12,550 15,934 6,292 5,946 1,954 3,749 Operating EBITDA^# PAT** Free Cash Flow 22% 8,063 9,811 5,049 4,795 5,800 5,261 • The Board has recommended a dividend of Rs.5 per share, which works out to a payout of Rs.1,056
Slide 36: Key segment wise Operating revenue & EBITDA - FY22
APSEZ: Key segment wise Operating revenue & EBITDA - FY22 (YoY, in INR Cr) Ports Logistics 14,000 12,964 75% 1,400 30% 1,208 12,000 10,739 70% 1,200 26% 70% 70% 25% 958 24% 10,000 9,120 1,000 20% 7,560 65% 8,000 800 15% 6,000 60% 600 320 10% 4,000 400 226 55% 5% 2,000 200 - 50% - 0% FY21 FY22 FY21 F
Slide 37: Improving debt profile
APSEZ: Improving debt profile (YoY, in INR Cr) Gross Debt, Net Debt & Average Maturity Gross Debt Movement 50,000 772 1,564 3,775 900 45,453 50,000 44,996 45,453 8 45,000 45,000 7 7,169 7 40,000 40,000 7 34,401 6 32,959 6 34,401 35,000 31,307 35,000 28,472 5 30,000 30,000 25,000 4 20,000 25,000 3 15
Slide 38: FCF continues to be strong
APSEZ: FCF continues to be strong (YoY, in INR Cr) Cash Flow Conversion FCF including 12000 72% GPL- 6,554 80% 70% 10000 52% 9811 60% 8000 8063 54% 50% 7565 6000 40% 5800 5261 30% 4000 3942 20% 2000 10% 0 0% • EBITDA to FCF conversion at 54% due to increase in FY20 FY21 FY22 Capex and net interest c
Slide 39: Credit ratios within prescribed range
APSEZ: Credit ratios within prescribed range Rating Ratios^ 30% 6.0x 25% 25% 22% 5.0x 5.1x 21% 20% 17% 4.0x 4.2x 15% 3.0x 10% 2.0x • FFO to Gross Debt and FFO to Net Debt improves to 18% and 5% 1.0x 23% respectively including Gangavaram port FFO and interest coverage improves to 4.6x 0% 0.0x FY21 FY
Slide 40: Port wise returns
APSEZ: Port wise returns 30% 25% 24% 23% 19% 20% 19% 16% 16% 15% 15% 13% 13% 12% 12% 12% 11% 11% 11% 10% 9% 8% 5% 5% 5% 3% 3% 2% 2% Terminals 0% Mundra Hazira Dahej Dhamra Kattupalli Krishnapatnam* Logistics APSEZ Consol -2% -5% -5% -5% -10% ROCE FY20 ROCE FY21 ROCE FY22 • APSEZ consolidated ROCE de
Slide 41: Volume recovery underway at major disruption points
APSEZ: Volume recovery underway at major disruption points (in MMT) FY21 FY22 • Coal volume was subdued on account of lower imports by key IPPs like APL, Coal volume handled at Mundra CGPL at Mundra and SembCorp, APGENCO in Andhra Pradesh, due to - • disruptions in the supply chain • incessant rain
Slide 42: Strategic Partnerships to drive growth
APSEZ: Strategic Partnerships to drive growth Adani International Container Adani CMA Mundra Terminal Dhamra LNG Terminal Pvt Colombo West International Company Name Terminal Pvt Ltd Private Limited Ltd Terminal (Private) Limited Dhamra LNG terminal is a 5 MTPA LNG import & Asset Description Contain
Slide 43: Guidance FY23
APSEZ: Guidance FY23 (in INR Cr) Expected cargo volume : 350 to 360 MMT, a growth of 12-15% Particulars Revenue EBITDA Capex FCF (INR Cr) Base Case Optimistic Case Base Case Optimistic Case Base Case Optimistic Case Base Case Optimistic Case APSEZ Consolidated 19,200 19,800 12,200 12,600 8,600 8,600
Slide 44: Capex summary FY23
APSEZ: Capex summary FY23 (in INR Cr) Capex in Incremental Annualized Annualized FY23 Capacity Revenue at optimal utilization EBITDA at optimal utilization Ports* 4,877 155 MMT 5,225 3,650 Details in Logistics 1,179 slide 40 195 150 Warehousing 2,544 9 mn sqft 325 300 Details in Total 8,600 slide 39
Slide 45: 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 • ~90% of debt is long term. sovereign. ~50% of EBIDTA in USD terms. • Elongating
Slide 46: Environment, Social & Governance
Environment, Social & Governance
Slide 47: Targeting ESG leadership
APSEZ: Targeting ESG leadership ESG Ambition Actions Taken Carbon neutral by 2025 Material progress on Carbon Neutrality target • Retrofitting of RTGs completed; Retrofitting of Quay Cranes in progress with completion in FY23 • Order already placed for 100 Battery-operated EITVs; orders for balanc
Slide 48: Targeting ESG leadership
APSEZ: Targeting ESG leadership ESG Ambition Actions Taken Ensure biodiversity • Biodiversity initiatives yielding concrete results • Mangrove conservation areas increases to 2850 Ha, and afforestation to 3390 Ha conservation • Restoration project initiated on 10 Ha grassland ecosystem at Kutch in
Slide 49: Environmental performance - FY22
APSEZ: Environmental performance - FY22 Over achievement against targets on most indicators/ metrics Indicator FY25 Target FY22 Target Status: FY22 Energy & Emission RE share in total electricity* 100% 15% 20% RE share in total energy* 25% 6% 7.7% Energy intensity reduction* 50% 30% 54% Emission i
Slide 50: Other key actions undertaken / in-progress
APSEZ: Other key actions undertaken / in-progress • Roll-out of sustainable procurement policy and Information security policy • Climate Risk Vulnerability of individual port assessed; action plan being developed for implementation of adaptation measures across ports facing higher risk • ESMP roll-o
Slide 51: 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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