Allcargo Logistics Limited · NSE:ALLCARGO
Allcargo Logistics — Investor Presentation (July 2020)
47 slides from Allcargo Logistics's investor presentation, Jul 8, 2020
Slide 1: Exchange filing cover letter for investor presentation
Listing Compliance and Legal Listing and Compliance Regulatory National Stock Exchange of India BSE Limited Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G Dalal Street, Fort, Bandra Kurla Complex, Mumbai – 400 001 Bandra (East), Mumbai – 400 051 BSE Scrip Code: 532749 NSE Symbol: AL
Slide 2: Investor Presentation July 2020
INVESTOR : PRESENTATION llcarc & July 2020 ingenaly in Maton ND logistics Itd.
Slide 3: Company Snapshot
2 COMPANY SNAPSHOT Overview • Allcargo Logistics was incorporated in 1993 by the Chairman Mr. Shashi Kiran Shetty. • Headquartered in Mumbai, Allcargo is the largest private sector integrated multinational logistics company in India. • The company was listed on both the BSE & NSE in June 2006 and ha
Slide 4: Value Proposition
3 VALUE PROPOSITION Consistent Dividend Track Record ROCE Focused 25% Dividend Payout track record Constant management endeavour to improve the return ratios of the company Strong Cash Flows Focus on Growth Consistent Operating Cash Flow Strategic initiatives to focus on high generation over the pas
Slide 5: Company Overview
all Ca IG logistics Itd. COMPANY OVERVIEW
Slide 6: Business Verticals
5 BUSINESS VERTICALS Allcargo has a diversified presence across multiple logistics sectors including ocean & airfreight-forwarding, container freight stations (CFS), inland container depots (ICD), project cargo, equipment rental, Logistics Park and supply chain management. Business Verticals Multimo
Slide 7: Financial Overview
6 FINANCIAL OVERVIEW FY20 Consolidated Financials Consolidated Operational Revenues 73,462 68,949 Consolidated Operational Income 60,492 INR 73,462 Mn 56,405 55,833 EBITDA INR 5,034 Mn FY16 FY17 FY18 FY19 FY20 EBITDA Margin 6.85% Segmental Revenue FY19 Project & Engineering Logistic Park 5% 1% Net P
Slide 8: Marquee Clients
MARQUEE CLIENTS UmmzZ. =FedEx 9 Dilscnencer Express ® KUEHNE+NAGEL «ur gi —~ “TOLL @ DSV ODWO stay ahead GEODIS oO LGD QREhlig compeowexeness FORWARDING WORLDWIDE All CAFC vos ral Expeditors 4» & PANALPINAS? hellman’” SDV on 6 continents Worldwide Logistics DACHSER IISGLBAL [Z|RHENUS Intelligent Log
Slide 9: Key Milestones
8 KEY MILESTONES ACCI inaugurated its Chairman of The company’s first Allcargo acquired newest warehouse in Allcargo Logistics, Container Freight 62% stake in Bhiwandi for Clariant, Acquired ~46% Mr Shashi Kiran Station of 23 acres PE New Vernon Acquired 2 Leading Avvashya CCI a multinational stake
Slide 10: Board of Directors
9 BOARD OF DIRECTORS Shashi Kiran Shetty, Chairman • Mr. Shetty has been a pioneer in the Indian logistics sector for more than three decades. • He has founded and steered Allcargo through several milestones, making it the global leader in LCL consolidation and the largest Indian company in this spa
Slide 11: Board of Directors
10 BOARD OF DIRECTORS Mohinder Pal Bansal Non-Executive, Independent Director • A Chartered Accountant by qualification, Mohinder Pal Bansal has more than 25 years of experience in Mergers & Acquisitions, Strategic Advising, Capital Markets, Company Portfolio Integration as well as post-acquisition
Slide 12: Management Team
11 MANAGEMENT TEAM ALLCARGO LOGISTICS MANAGEMENT Sheetal Gulati – Group Chief Financial Officer • Sheetal Gulati joined the company in 2019 as the Group Chief Financial Officer. He has spent large part of his career in the logistics and transport sector. • With over 25 years of experience, he brings
Slide 13: Management Team
12 MANAGEMENT TEAM ALLCARGO LOGISTICS MANAGEMENT Prakash Tulsiani – Executive Director and CEO, CFS-ICD • Mr. Tulsiani has over two decades of experience in the business of shipping and ports, both in India and overseas. • He is a qualified Chartered Accountant and Company Secretary with expertise i
Slide 14: ECU Worldwide Management Team
13 ECU WORLDWIDE MANAGEMENT TEAM Tim Tudor CEO – ECU Worldwide • With over 29 years of experience in shipping and logistics industry, Tim Tudor has worked with companies like Australia New Zealand Direct Line, Direct Container Line and Vanguard Logistics • He manages overall ECU business as worldwid
Slide 15: Awards and Accolades
14 AWARDS AND ACCOLADES Chairman Mr. Shashi Kiran Shetty India Risk Management Conquest 2017 and honoured as the Global Visionary at Awards 2017 Northern India Multimodal Logistics the Economic Times Family Business Best Risk Management Awards 2017 Awards - 2019 Practice in Supply Chain LCL Consolid
Slide 16: Key Strengths
15 KEY STRENGTHS • Strong network of over 300 offices in more than 160 countries • All acquisitions in MTO segment have been EPS accretive and cash flow positive from start of integration M • Fixed and committed stuffing and sailing schedules ensuring the quickest turnaround in LCL T • The MTO segme
Slide 17: Multimodal Transport Operations
MULTIMODAL TRANSPORT OPERATIONS
Slide 18: Multimodal Transport Operations
17 MULTIMODAL TRANSPORT OPERATIONS Segment Financials at a Glance • Multimodal Transport Operations (MTO) include the movement of cargo, domestically or internationally through multiple modes of transportation like air, ocean, road and/or rail. 66,047 61,590 These services include Non Vessel Owning
Slide 19: Less Than Container Load Cargo
18 LESS THAN CONTAINER LOAD CARGO • Less Than Container Load is the transportation of small ocean freight shipments not requiring the full capacity of an ocean container -usually less than 20 CBM (cubic meters); a freight forwarder may create a “consolidation” by putting together multiple LCL shipme
Slide 20: ECU Worldwide: Global Presence
19 ECU WORLDWIDE: GLOBAL PRESENCE
Slide 21: MTO: Insights
20 MTO: INSIGHTS • Allcargo sees the fragmented LCL industry as an opportunity to expand its global network further and consolidate the LCL industry. • Aims to scale up the business substantially, through expansion of FCL business (both by way of organic & inorganic opportunities). • Committed to bu
Slide 22: Container Freight Stations / Inland Container Depot
CONTAINER FREIGHT STATIONS/ INLAND CONTAINER DEPOT
Slide 23: CFS / ICD
22 CFS / ICD Segment Financials At A Glance • The CFS/ICD segment caters to the handling of import/export cargo, customs clearance 4,598 4,490 and other related ancillary services at ports. 4,220 4,306 4,094 3,340 3,235 3,040 2,950 • In the mid 1990’s, the Government of India started private investm
Slide 24: Domestic Footprint in CFS/ICD
23 DOMESTIC FOOTPRINT IN CFS/ICD DADRI C: 75,000 TEU DELHI MUNDRA C: 56,000 TEU KOLKATA C: 80,000 TEU MUMBAI C: 150,000 TEU CHENNAI C: 100,000 TEU Current CFSs Current ICDs C – Capacity
Slide 25: CFS / ICD: Insights
24 CFS / ICD: INSIGHTS • Expected changes in DPD policy, shall bring in stability to the business. • With port related CFSs well covered, possible foray into rail-linked inland depots. • Developing opportunity to handle high value cargo and ancillary services to provide integrated logistics solution
Slide 26: Projects & Engineering
all Carp logistics itd. Ingenuity In Motion PROJECTS & ENGINEERING
Slide 27: Projects & Engineering
26 PROJECTS & ENGINEERING • The company owns a diverse fleet of special equipment and has developed an in-house Segment Financials At A Glance repairs and maintenance (R&M) division to efficiently manage all types of R&M of its fleet wherever deployed. 5,481 • The P&E segment includes Equipment Leas
Slide 28: Project & Engineering: Insights
27 PROJECT & ENGINEERING: INSIGHTS • Growth in the infrastructure sector especially in power, oil & gas, cement and steel is expected to increase demand for specialized transport solutions. • The current executable order book in Project logistics is around INR 1,392 Mn along with visible pipeline of
Slide 29: Logistics Park
all Carcp logistics Itd. Ingenuity In Motion LOGISTICS PARK
Slide 30: Logistics Parks
29 LOGISTICS PARKS • Developing existing land bank mapped to the current demand foreseen in Grade A warehouse. Allcargo is in a great spot to get economies of a scale. • Consumption drive and infrastructure development would boost multi modal logistics parks with capability of serving all types of c
Slide 31: Operational Highlights
30 OPERATIONAL HIGHLIGHTS • Allcargo is building state-of-the-art strategically located logistics parks across Segment Financials At A Glance India • The company entered into a definitive transaction with the Blackstone Group on 13th January, 2020, wherein Blackstone would acquire Allcargo’s 266 war
Slide 32: Supply Chain Management
allcarc logistics Itd. Naum ewe ASHI HE: EH MR SUPPLY CHAIN MANAGEMENT
Slide 33: Supply Chain Management
32 SUPPLY CHAIN MANAGEMENT • Supply Chain Management segment involves activities such as designing and planning Warehouse Locations across India supply chains, designing facilities, warehousing, transporting and distributing goods, processing orders and collecting payments, managing inventory and al
Slide 34: Supply Chain Management: Insights
33 SUPPLY CHAIN MANAGEMENT: INSIGHTS • CRISIL Report has estimated that the supply chain management (3PL) is expected to grow at a CAGR of 19-21% to reach ~INR 57,000 Cr by FY2020, Allcargo in a great position to take advantage of the same. • Plans to scale-up the business with a top-line target of
Slide 35: Opportunity
34 OPPORTUNITY Our strategy in acquiring majority stake in ACCI has proven beneficial. Factors like GST, growth across major industries and emergence of organized retail is supporting the growth in demand for reliable logistics partners. Within logistics park, need for Grade A warehouses is expected
Slide 36: Gati Acquisition
GATI ACQUISITION
Slide 37: Gati Overview
36 GATI OVERVIEW • Gati, founded in 1989, is India’s pioneer in Express Distribution and Supply Chain Solutions, with a strong presence in Asia Pacific region and SAARC countries, along with an extensive network across India providing timely deliveries to 20,000 PIN Codes, covering 735 out of 739 di
Slide 38: Allcargo-Gati: End-to-End Logistics Player
37 ALLCARGO-GATI: END-TO-END LOGISTICS PLAYER • Allcargo completed the acquisition of 46.83% stake in Gati in April 2020 in line with the company’s long-term strategy to strengthen its domestic business. • The acquisition would further synergize efforts to offer end-to-end services to Allcargo’s dom
Slide 39: Financial & Strategic Overview
FINANCIAL & STRATEGIC OVERVIEW
Slide 40: Future Growth Strategy
39 FUTURE GROWTH STRATEGY • Aim to become the biggest value creator in the logistics space with highest governance standards. • Technology-driven company - A lot of efforts are being put to make the company ready for the next-gen business model. • Focus on asset light and high growth potential segme
Slide 41: Historical Consolidated Income Statement
40 HISTORICAL CONSOLIDATED INCOME STATEMENT Particulars (INR Mn) FY18 FY19 FY20 Revenue from Operations 60,492 68,949 73,462 Expenses 56,720 64,464 68,428 EBITDA 3,772 4,485 5,034 EBITDA Margin (%) 6.23% 6.50% 6.85% Other Income 391 338 413 Finance cost 299 295 685 Depreciation and amortisation expe
Slide 42: Consolidated Balance Sheet
41 CONSOLIDATED BALANCE SHEET Equity and Liabilities (INR Mn) FY19 FY20 Assets (INR Mn) FY19 FY20 Equity Non Current Assets Equity share capital 491 491 Plant, Property & Equipment (net) 11,368 12,099 Other equity 19,497 20,966 Right use of assets - 2,026 Equity attributable to equity holders of the
Slide 43: Financial Highlights (Consolidated)
42 FINANCIAL HIGHLIGHTS (CONSOLIDATED) Total Operational Revenue (INR Mn) EBITDA (INR Mn) and EBITDA Margins (%) PAT (INR Mn) and PAT Margins (%) 73,462 68,949 60,492 8.93% 4.39% 4.26% 56,405 55,833 8.33% 2,476 2,479 2,343 5,039 6.85% 2,378 4,649 6.23% 6.50% 2.88% 5,034 3.60% 3,772 4,485 1,740 3.19%
Slide 44: Capital Market Data
43 CAPITAL MARKET DATA Stock Return Price Data (As on 30th June, 2020) 30% Allcargo BSE Small Cap 20% Face value (INR) 2.0 10% Market Price (INR) 78.50 0% -10% 52 Week H/L (INR) 122.7/51.5 -20% -30% Market Cap (INR Mn) 19,287 -40% Equity Shares Outstanding (Mn) 245.7 -50% -60% 1 Year Avg. trading vo
Slide 45: Allcargo Greens
44 ALLCARGO GREENS Global campaign to encourage eco-friendly ways of living by taking small steps towards sustainable living. By saving paper, limiting use of plastics, switching lights off whenever possible, working with communities around our facilities and offices on environmental issues, plantin
Slide 46: Disclaimer
45 DISCLAIMER Allcargo Logistics Ltd. Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions ar
Slide 47: Thank You
All CAFO east. Ingenuity In Motion
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