Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — Merger or Acquisition (March 2021)
36 slides from Adani Ports & Special Economic Zone's merger presentation, March 2021
Slide 1: Adani Ports and SEZ Limited
Adani Ports and SEZ Limited March, 2021
Slide 2: Contents
Contents A Group Profile B Company Profile C Integrated Logistics Platform D Adani Track Management Services (ATMSPL) E Sarguja Rail Corridor Private Limited F Valuation methodology and Investment Case G Compliance & Transaction Timelines H Annexure 2
Slide 3: Adani Group: A world class infrastructure & utility portfolio
Adani Group : A world class infrastructure & utility portfolio Energy & Utility Adani Transport & Logistics Portfolio Portfolio • Marked shift from B2B to B2C businesses– 63.5% • ATGL – Gas distribution 100% 75% 55% network to serve key APSEZ NQXT2 ATL AGEL geographies across India Port & Logistics
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 (MT) Renewable Capacity (GW) Transmission Network (ckm) CGD7 (GAs8 covered) 161% 45% 12% 21% 2.5x 6x 3x 30% 1.5x 5% 7% 25% Industry APSEZ Industry AGEL Industry ATL Industry AGL 2014 972 MT 113
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 • Site acquisition • Engineering & design • Redesigning the • Analysis & market • Life cycle O&M capital
Slide 6: APSEZ: Company Profile
adani Ports and Logistics APSEZ : Company Profile
Slide 7: Largest network of ports in India
APSEZ : Largest network of ports in India West Coast East Coast Capacity 335 MMT Capacity 163 MMT FY06 FY21 Dahej 14 MMT Tuna Moga Kotkapura Patli Kanech Kilaraipur Dhamora 1 Port 12 * 14 Kannauj MMT Kishangarh Samastipur and Darbhanga 10 MMT Capacity 498 MMT Mundra Vidisha Katihar Harda 264 MMT Hos
Slide 8: APSEZ: Largest private transport utility
APSEZ : Largest private transport utility APSEZ – Dhamra Port Ports Ports One Oneto totwelve ten in in Import - Export - Steel twenty twentyyears years Coking coal (HRC/CRC) 2x Port income String of Ports Ports of Prosperity Port gate to 2x Warehousing Warehousing SEZ customer gate Warehousing SEZ i
Slide 9: APSEZ: Integrated Logistics Platform
adani Ports and Logistics APSEZ : Integrated Logistics Platform
Slide 10: Integrated logistics platform addressing customer needs
APSEZ : Integrated logistics platform addressing customer needs Grain Ware- Inland Rail Trains IFTs Silos housing Waterways Tracks Assets 60 5 0.8 0.4 mn 9 620* FY21 Trains Logistics Parks MMT Sq. ft. Barges KMs 200+ 15 2.5+ 5 mn 25+ 760+ FY25 Trains MMLP MMT Sq. ft. Barges KMs IFT : Inland Freight
Slide 11: Investing in the ecosystem of Integrated Transport Utility
APSEZ : Investing in the ecosystem of Integrated Transport Utility Integrated Logistics Services Rolling Stock Adding Rail Tracks - 2021 Consolidating Rail tracks under one platform and synergize with APSEZ KRCL : Kutch Railway Company Ltd. | BDRCL : Bharuch Dahej Railway Company Ltd. 11
Slide 12: APSEZ: Adani Track Management Services (ATMSPL)
adani Ports and Logistics APSEZ : Adani Track Management Services (ATMSPL)
Slide 13: Objective of Adani Track Management Services
APSEZ : Objective of Adani Track Management Services Creation of Investment platform for strategic investment in rail track assets Extend new business by participating in Indian Railways PPP projects Growth opportunities through providing adjacent services viz. GPWIS Center of excellence for rail as
Slide 14: Existing Rail assets that will be part of ATMSPL
APSEZ : Existing Rail assets that will be part of ATMSPL Operational Rail Asset under APSEZ Krishnapatnam Details Mundra Rail Dhamra Rail Kutch Rail BDRCL Railway Co. 74 Km 68.5 Km 113 Km 301 Km (Palanpur – 63 Km (Bharuch - Rail Line Gandhidham section) Dahej) (Mundra - Adipur) (Dhamra - Bhadrak) (K
Slide 15: Expansion possibility in new projects by Indian Railways
APSEZ : Expansion possibility in new projects by Indian Railways Cargo Demand Forecast as per National Rail Plan Contribution to Existing Rail Cargo Existing Rail Share Expected Rail Expected Rail Commodity Rail Cargo MT/Yr in Transport Share 2031* MT/Yr 2031* Balance of Goods 7% 81 4% 22% 770 Cemen
Slide 16: SRCPL: Sarguja Rail Corridor Private Limited
adani Ports and Logistics SRCPL : Sarguja Rail Corridor Private Limited
Slide 17: Sarguja rail corridor brief highlights of the project
APSEZ : Sarguja rail corridor brief highlights of the project Asset Details: • Track length - 70 KM • Capacity to handle 16 rakes per day • 50 Years land lease - Till 2065 Other Key features • 30 Years TAUA* with RRVUNL –Till 2044 • Coal Reserve of more than 4 Bn MT in the region • Potential annual
Slide 18: Sarguja rail corridor hinterland potential
APSEZ : Sarguja rail corridor hinterland potential Peak Basin Throughput- 97 MMTPA 1 Existing Mines 1 17 43 16 20 0-5 KM 5-10 KM 10-15 KM 15-20 KM 20-25 KM > 25 KM ▪ Average grade of coal in range of G8* to G11* against G13-G15* in GP and Talcher ▪ Coal grade suitable for Sponge Iron and Cement prod
Slide 19: Sarguja rail corridor facility snapshot
APSEZ : Sarguja rail corridor facility snapshot 19
Slide 20: Valuation methodology and Investment Case
adani Ports and Logistics Valuation methodology and Investment Case
Slide 21: SRCPL: Evaluation process and due diligence
SRCPL : Evaluation process and due diligence In order to evaluate the opportunity, Executive Committee formed Committee members included (detailed profile in slide 33) • Mr. G. K. Pillai (Chairman of the Audit Committee) • Mr. P. S. Jayakumar • Mrs. Nirupama Rao EC appointed the following agencies t
Slide 22: SRCPL: Key valuation assumptions
SRCPL : Key valuation assumptions Particulars Key Assumptions Capacity Currently serving one operating mine – PEKB (15 MTPA per year) Further extendable to 40 MTPA Coal Demand • RRVUNL : 19 MTPA at current PLF, estimated requirement 35 MTPA at 85% PLF. Annual Contracted capacity of 15.93 MTPA with S
Slide 23: SRCPL share swap estimation based on APSEZ shares
SRCPL : SRCPL share swap estimation based on APSEZ shares Proposed Transaction Impact of the Transaction on APSEZ Particulars in Rs. cr No of EPS Enterprise Value (DCF) 5,977 Net Profit Shares Particulars Net Debt at SRCPL 934 (in Rs. cr) (INR / (in Rs. cr) Equity Value of SRCPL 5,043 Share) BTMSPL
Slide 24: Existing legal entity structure
APSEZ : Existing legal entity structure 20% APSEZ (Mundra Rail Business) ARIPL 100% 100% 74% 100% 75% DPCL ATMSPL AHPPL APDPL (Dhamra Rail KPCL BTMSPL Business) 100% 11.17% 12.96% KRCL HIL BDRCL KRpCL SRCPL ATMSPL : Adani Tracks Mgt. Services Pvt Ltd | AHPPL : Adani Hazira Port Pvt. Ltd. | APDPL : A
Slide 25: Proposed legal entity structure
APSEZ : Proposed legal entity structure • BTMSPL (parent of SRCPL) to be merged with APSEZ and APSEZ to APSEZ issue fresh equity shares to ARIPL1 100% • Slump sale of Mundra undertaking to ATMSPL ATMSPL • ATMSPL to be merged with SRCPL; SRCPL to be renamed to ATMSPL 12.96% 20% 100% 11.17% • Slump sa
Slide 26: SRCPL investment case
APSEZ : SRCPL investment case All rail assets under one entity, no competing business within the group Significant growth potential available as business is yet to mature Secured long term contracts with sovereign equivalent counterparty providing earnings stability Cross-selling opportunity to depl
Slide 27: Compliance & Transaction Timelines
adani Ports and Logistics Compliance & Transaction Timelines
Slide 28: Compliance with RPT policy and process followed
APSEZ : Compliance with RPT policy and process followed Internal business team to review the opportunity and submit Proposal submitted proposal Formation of Executive Committee - (3 members - including Mr. G. K. Pillai (Chairman of the Audit Committee) Audit committee chairman) Mr. P. S. Jayakumar M
Slide 29: Transaction: Timelines & next steps
APSEZ Transaction: Timelines & next steps Final Approval of the transaction by Majority of the Minority Shareholders - as part of NCLT process ▪ Verification of documents by stock exchanges & submission to SEBI for comments– 5 Days ▪ Compliance report by the Company to stock exchanges and their subm
Slide 30: Annexures
adani Ports and Logistics Annexures
Slide 31: APSEZ and SRCPL details
adani Ports and Logistics APSEZ and SRCPL details
Slide 32: SRCPL Historical financials
APSEZ : SRCPL Historical financials Profit and Loss Statement Balance Sheet Particulars FY18 FY19 FY20 FY21E Particulars FY18 FY19 FY20 FY21E Cargo 3.6 10.6 14.4* 15.4* N.C. Assets 1448 1545 1494 1501 (MMT) Revenue - 50 456 368 417 Current Asset 247 366 573 586 operating EBIDTA 34 325 357 395 Net Wo
Slide 33: Profiles of executive committee members
APSEZ : Profiles of executive committee members Mr. Gopal Krishna Pillai is an independent Director of our Company. He is a former Indian Administrative Services officer. He holds a master’s degree in science from the Indian Institute of Technology, Chennai. He started his career as sub-collector, Q
Slide 34: Sarguja rail corridor track capacity
APSEZ : Sarguja rail corridor track capacity Capacity Assessment: Scott’s formula Existing Longest Section: Ramanujnagar- Tarkeshwarpur (20.233 Km) Single Line Capacity (C) = ((24 Hour * 60 min) * E / (T + t))/2 T = Total time taken by slowest Train in Ruling Section (Longest section) 1 Train Averag
Slide 35: Policy of Related Party Transactions link
https://www.adaniports.com/-/media/Project/Ports/Investor/corporate- governance/Policies/Policy_of_Related_Party_Transactions_for_Acquiring_and_Sale_of_A ssets.pdf
Slide 36: 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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