Allcargo Logistics Limited · NSE:ALLCARGO
Allcargo Logistics — Q1 FY2023 Earnings Presentation
49 slides from Allcargo Logistics's earnings presentation, Aug 10, 2022
Slide 1: Covering letter to stock exchanges
To, To, Manager-Department of Corporate Services Manager - Listing Department BSE Limited National Stock Exchange of India 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
Slide 2: Investor Presentation August 2022
INVESTOR PRESENTATION AUGUST 2022
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Allcargo Logistics Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 4: Robust Business Growth
ROBUST BUSINESS GROWTH Global leader in complex CONSOLIDATED REVENUE (FY18 - FY22) 35% CAGR 3.3x LCL Market Operating 2400 direct trade lanes CONSOLIDATED EBITDA (FY18 - FY22) 42% CAGR 4.0x Widest and Largest Container Freight Station Operator in India Pioneers in India’s Express Logistics Dominant
Slide 5: Q1FY23 - Key Highlights
Q1FY23- KEY HIGHLIGHTS KEY MANAGEMENT COMMENTARY: Revenue^ ₹ 5,675 Cr ➢ The continued positive momentum in growth over last year has been an outcome of strategic and transformational initiatives undertaken by the company. There has been a sustained increase in revenues coming through digital platfor
Slide 6: Key Business Segments - Yearly Performance Trends
KEY BUSINESS SEGMENTS - YEARLY PERFORMANCE TRENDS 5,122 5,001 403 358 Capital Employed ROCE* Revenue EBITDA 2,935 (₹ Cr) (₹ Cr) 165 2,277 55.9% (₹ Cr) International Supply Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Chain (MTO) ALLCARGO LOGISTICS (ACL) 377 431 19 299 Capital Employed ROCE Revenue EBIT
Slide 7: Key Business Segments - Yearly Performance Trends
KEY BUSINESS SEGMENTS – YEARLY PERFORMANCE TRENDS ALLCARGO TERMINALS (ATL) 172 169 44 41 Capital Employed ROCE* Revenue 122 EBITDA 39 (₹ Cr) (₹ Cr) 469 31.5% (₹ Cr) CFS / ICD Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 # TRANSINDIA REALTY (TRLPL) 105 12 13 93 Capital Employed ROCE* Revenue 73 EBITDA (
Slide 8: Demerger Update
DEMERGER UPDATE SCALABLE BUSINESS OPPORTUINITIES
Slide 9: Demerger to Create Strategic Business Undertakings
DEMERGER^ TO CREATE STRATEGIC BUSINESS UNDERTAKINGS ALLCARGO LOGISTICS (ACL) ALLCARGO TERMINALS (ATL) TRANSINDIA REALTY (TRLPL) International Supply Express & Ecommerce Contract Container Freight Rental & Other annuity Chain (MTO) Logistics Logistics Stations & ICDs Businesses Asset Light Global Pla
Slide 10: International Supply Chain (MTO)
INTERNATIONAL SUPPLY CHAIN (MTO)
Slide 11: Global Leader in International Supply Chain Segment
GLOBAL LEADER IN INTERNATIONAL SUPPLY CHAIN SEGMENT Global #1 in LCL consolidation Distinct value proposition to small and operating the largest global LCL medium sized forwarders who benefit network from our scale &carrier relationships Global network leads to more port Global LCL Market Share pair
Slide 12: Uniquely Positioned with Unmatched Digital & Operational Capabilities
UNIQUELY POSITIONED WITH UNMATCHED DIGITAL & OPERATIONAL CAPABILITIES CONVENTIONAL PLAYERS HAVE OPERATING NETWORK DIGITAL START-UPS BUT LACK DIGITAL CAPABILITIES LACK OPERATIONAL FOOTPRINT AND SCALE LCL FCL Air Industry is converging towards an increasing demand Global network of over 180 countries
Slide 13: Driving Growth Through Technology
DRIVING GROWTH THROUGH TECHNOLOGY DIGITAL TRANSFORMATION (# OF DIGITAL BOOKINGS) OCR For Auto- Enables instant-booking. Reduces operational processes Booking between ECU and customers by three steps Total Digital +60% Bookings Data Data Analytics on customer behaviour and requirements Other digital
Slide 14: Digitizing Every Customer Touch-point with ECU360
DIGITIZING EVERY CUSTOMER TOUCH-POINT WITH ECU360 Shipping Instruction Value-Added Dashboard Registration Quotation / Pricing Booking & BL Invoice Track and Trace Services and Analytics FETCH QUOTES Enter further TRACK AND TRACE TRACKING for desired lane shipment details to shipment’s Estimated of a
Slide 15: Automating End-to-End Processes
AUTOMATING END-TO-END PROCESSES 01 02 03 04 QUOTE BOOK TRACK ANALYZE TARIFF SCHEDULE SPACE CUSTOMER SERVICE FILE AUDIT MANAGEMENT COMMUNICATION ENQUIRY BOOK PICKUP, AUTO NOTIFICATION CLOSURE PLANNING QUOTE DOCUMENTATION (SI,AN) SHIPMENT TRACKING JOB PROFIT REVIEW CUSTOM CLEARANCE PROVISIONING / INVO
Slide 16: Transforming Operations
TRANSFORMING OPERATIONS Efficient, Lean, Agile and Digitally Enabled Leader in the Logistics Industry ▪ Fact based End-to-End analysis of ▪ Informed pricing decisions by using ▪ Building the future network based the network network data, such as yield and on customer needs, anticipated ▪ Awareness a
Slide 17: Consistently Driving Growth
CONSISTENTLY DRIVING GROWTH Inorganic growth: Strong Track Record July 2021 Leading neutral consolidator in the Nordic region with offices in Sweden, Norway, Finland, and Denmark January 2021 JV with former South Korean agent-partner. The two entities will now operate together as ECU Worldwide Korea
Slide 18: Unlocking New Opportunities Through Innovation
UNLOCKING NEW OPPORTUNITIES THROUGH INNOVATION Door to Door Service Unique Sea-Air combo services CHINA TO US AND EUROPE Offering Increase Market Share ▪ Offered in 52 countries globally, resulting ▪ Focus on where volume flows, e.g. India, in convenience for customers and higher Europe, Americas ma
Slide 19: International Supply Chain (MTO) - Key Financial Trends
INTERNATIONAL SUPPLY CHAIN (MTO) - KEY FINANCIAL TRENDS Volumes Revenue (₹ Cr) LCL (‘000 cbms) FCL (‘00 TEUs) 9,107 17,643 7,376 7,701 8,449 6,605 2,274 2,373 5,122 5,001 2,031 2,935 4,717 4,888 5,930 1,435 1,475 1,574 FY20 FY21 FY22 Q1FY22 Q4FY22 Q1FY23 FY20 FY21 FY22 Q1FY22 Q4FY22 Q1FY23 EBITDA (₹
Slide 20: India's Pioneer in Express Logistics
INDIA’S PIONEER IN EXPRESS LOGISTICS Network Reach Deeper Leader in Logistics Widest in Industry Customer engagements 8 out of Top 10 Auto Companies 4.1 Mn sq. ft. Pan India 735 Warehousing space Area +650 out of 739 across multiple Coverage 8 out of Top 10 offices across Indian Districts Locations
Slide 21: Unique Integrated Network
UNIQUE INTEGRATED NETWORK Jammu & Kashmir 01 Himachal Pradesh 01 Managing one of the Industry’s widest integrated supply chain network Uttarakhand 02 Delhi 03 | 02 Punjab 04 Line Haul First-Last mile Uttar Pradesh 08 | 01 • 20 Express distribution centers • ~150 Own customer convenient center Haryan
Slide 22: Express Logistics - Industry with Limitless Opportunities
EXPRESS LOGISTICS - INDUSTRY WITH LIMITLESS OPPORTUNITIES Surface + Air + Ecommerce + Contract Logistics Total Available Market is ~Rs 52,500 crs Niche Contribution in Logistics Industry Accelerated growth Opportunities ₹ Crs 21,769 11,500 ₹ 24.6k Crs FY25 2,000 2,805 ₹ 51k Crs FY25 ₹ 13.5k Crs FY20
Slide 23: Poised for Growth Through Transformation
POISED FOR GROWTH THROUGH TRANSFORMATION Key Focus Areas: Key Focus Areas: DIGITIZATION Realignment of sales team Streamlining and structure and targeted INFRASTRUCTURE assessing each line item of TALENT approach towards Key P&L. Focused Account Management, improvement in line-haul MSME and Retail.
Slide 24: Digitization
DIGITIZATION Back-end Front-end Pick Up & Delivery automation CRM system Data Science • Pickup Registration, Validation, Visibility & Monitoring Managing customer relationships Route optimization, Load • Handheld printers for real time printing of labels and enhances ability to offer planning, enabl
Slide 25: Express & Ecommerce - Key Financial Trends
EXPRESS & ECOMMERCE - KEY FINANCIAL TRENDS GKEPL - Surface Volumes (‘000 MT) GKEPL - Revenue (₹ Cr) 966 1,242 1,159 848 1,012 781 257 279 320 365 179 237 FY20 FY21 FY22 Q1FY22 Q4FY22 Q1FY23 FY20 FY21 FY22 Q1FY22 Q4FY22 Q1FY23 EBITDA (₹ Cr) PBT (₹ Cr) 70 5 46 38 -6 25 -9 -8 13 -12 -1 -19 FY20 FY21 FY
Slide 26: Contract Logistics - Key Trends & Updates
CONTRACT LOGISTICS - KEY TRENDS & UPDATES Pan India Presence Key Update: CORE CAPABILITIES • Board of directors has approved the scheme of demerger whereby contract logistics business will get transferred to Avvashya Supply Chain Private Limited (currently wholly owned subsidiary of Allcargo), on go
Slide 27: CFS / ICD - Allcargo Terminals Limited (ATL)
CFS / ICD ALLCARGO TERMINALS LIMITED (ATL)
Slide 28: Leading Pan India Player with Unmatched Network
LEADING PAN INDIA PLAYER WITH UNMATCHED NETWORK Strategically Located Assets with Robust Operational Capabilities Operational Support Static Yard Capacity of over JHAJJAR Upcoming ICD/PFT 26,000 TEUs p.a. Strategic Location of all the Assets MUNDRA 2 CFS’s (Owned + DADRI - ICD Widest pan India prese
Slide 29: Overview of CFS/ICD Market
OVERVIEW OF CFS/ICD MARKET CFS/ICD - Proxy to Indian EXIM growth All the Growth Levers in Place for Future CAGR 8-10% • Potential reforms to increase the scope of activities and expand the role of CFS’s. 22 – 25* CFSs also gaining importance due to increased number of LCL shipments CFS/ICD - Market
Slide 30: Digital First Initiatives
DIGITAL FIRST INITIATIVES DIGITAL CUSTOMER JOURNEY DATA BASED DECISIONS PROJECT UNNATI • CFS-MAG centralised across 7 locations • MyCFS - Customer portal launched – Self service, Paperless • SYMPHONY SUMMIT tool for Incident management launched • CFS Dashboard and CRM launched CUSTOMER LEVEL ANALYTI
Slide 31: CFS/ICD - Key Financial Trends
CFS/ICD - KEY FINANCIAL TRENDS Volumes^ (‘00 TEUs) Revenue (₹ Cr) 4,505 578 449 464 3,234 2,825 172 1,409 1,383 169 825 122 FY20 FY21 FY22 Q1FY22 Q4FY22 Q1FY23 FY20 FY21 FY22 Q1FY22 Q4FY22 Q1FY23 EBITDA (₹ Cr) & EBITDA Margins (%) ROCE* (%) (%) 30.7 37.9 26.9 31.9 23.7 26.1 176 43.1 155 34.3 138 28.
Slide 32: Engineering, Logistics Parks and Others - TRLPL
ENGINEERING, LOGITICS PARKS AND OTHERS TRANSINDIA REALTY & LOGISTICS PARKS LIMITED (TRLPL)
Slide 33: Logistics Parks
LOGISTICS PARKS ➢ Allcargo has built best in class Grade-A warehousing infrastructure across key locations in India. A nationwide warehousing footprint of 6 million sq. ft. remains under development, through strong connectivity to industrial hubs and transport routes. ➢ The company has already lease
Slide 34: Engineering Solutions
ENGINEERING SOLUTIONS Cranes: Capacity Utilisation (%) • Engineering (Equipment) segment includes Crane and container handling equipment 87 rental; 85 73 75 75 • Multi-sectors serviced: Power (thermal, solar, wind and transmission lines), Oil & Gas, Refineries, Cement, Steel, Ports and Infrastructur
Slide 35: Rental and Others - Key Financial Trends
RENTAL AND OTHERS - KEY FINANCIAL TRENDS Revenue (₹ Cr ) EBITDA (₹ Cr) & EBITDA Margins (%) (%) 18.1 10.5 9.9 14.7 3.2 20.0 385 351 63 308 ENGINEERING SOLUTIONS 38 32 111 94 71 14 14 4 FY20 FY21 FY22 Q1FY22 Q4FY22 Q1FY23 FY20 FY21 FY22 Q1FY22 Q4FY22 Q1FY23 Revenue (₹ Cr) EBITDA (₹ Cr) & EBITDA Margi
Slide 36: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM
Slide 37: Board of Directors
BOARD OF DIRECTORS SHASHI KIRAN SHETTY ADARSH HEGDE PARTHASARATHY V S Chairman & Managing Director Joint Managing Director Vice Chairman & Non-Executive, Director A pioneer in logistics industry and a visionary, first generation entrepreneur. He is the founder of Allcargo Associated with Allcargo Lo
Slide 38: Management Team - Allcargo Logistics
MANAGEMENT TEAM - ALLCARGO LOGISTICS SURESH KUMAR R RAVI JAKHAR DEEPAL SHAH CEO (India) Group Chief Strategy Officer Deputy Group Chief Financial Officer A seasoned industry leader with nearly 30 years A thought leader with a unique blend of A proven leader with over 20 years experience in experienc
Slide 39: Management Team - ECU Worldwide
MANAGEMENT TEAM - ECU WORLDWIDE TIM TUDOR DMITRIY IOFFE SIMON SACHU CEO CCO LCL CCO, Global Air, FCL & Procurement An industry veteran with three decades of experience in Highly recognised commercial leader with rich experience An industry veteran with 20+ years experience, he has shipping and logis
Slide 40: Management Team - Gati
MANAGEMENT TEAM - GATI ADARSH HEGDE PIROJSHAW (PHIL) SARKAR HUAFREED NASARWANJI Managing Director, Gati-KWE Chief Executive Officer Chief Commercial Officer Seasoned Logistics professional acclaimed for leading CA by profession with decades of leadership Rich industry experience across integrated te
Slide 41: Consolidated Financial Overview
CONSOLIDATED FINANCIAL OVERVIEW
Slide 42: Key Financial Highlights - Consolidated
KEY FINANCIAL HIGHLIGHTS - CONSOLIDATED Total Operational Revenue^ (₹ Cr) EBITDA^ (₹ Cr) & EBITDA Margins^ (%) PAT* (₹ Cr) & PAT* Margins (%) (%) 6.5 6.9 6.0 7.6 7.7 (%) 3.6 3.2 0.9 4.8 4.9 20,072 1,516 965 10,498 634 6,895 7,346 503 5,675 449 434 248 280 234 95 FY19 FY20 FY21 FY22 Q1FY23 FY19 FY20
Slide 43: Consolidated Income Statement - Quarterly
CONSOLIDATED INCOME STATEMENT - QUARTERLY Particulars (₹ Cr) Q1FY23 Q1FY22 Y-0-Y Q4FY22 Q-0-Q Revenue from Operations 5,675 3,449 64.5 5,776 (1.7) Expenses 5,240 3,232 5,345 EBITDA 434 218 99.1 431 0.7 EBITDA Margin (%) 7.7% 6.3% 7.5% Other Income 22 10 11 Finance cost 29 28 30 Depreciation and amor
Slide 44: Annexures
allcargo logistics ANNEXURES |
Slide 45: Simplified Scheme of Arrangement
SIMPLIFIED SCHEME OF ARRANGEMENT Existing Structure Allcargo Logsitics Limited TransIndia Reality & Mirror demerger resulting in Equipment Hiring / Allcargo Terminals Multimodal Transport CFS and ICD Leasing and Logistics Limited (Wholly Logistics Parks Limited no change in the entitlement Operation
Slide 46: Rationale for Demerger
RATIONALE FOR DEMERGER STRATEGIC INDEPENDENCE AND OPERATIONAL & FINANCIAL FLEXIBILITY TO DRIVE GROWTH • Simplified structure with independent listed companies with sharp management focus Independent ❖ ACL: International Supply Chain(MTO) & Express /Contract Logistics Business Undertakings ❖ ATL: CFS
Slide 47: Scheme Highlights
SCHEME HIGHLIGHTS Allcargo Logistics (ACL) to demerge its CFS/ICD division and its asset heavy Equipment, Logistics Parks business into separately listed entities. The demerger would create three focused entities targeting distinct set of growth opportunities. ACL would now focus on its Internationa
Slide 48: Key Milestones, Indicative Timelines & Approvals Required
KEY MILESTONES, INDICATIVE TIMELINES & APPROVALS REQUIRED Upto ~3 months Upto ~8-10 months ~2-4 months Regulatory Filings & NCLT Filings & Board Approval ROC Filing Approvals Approvals • Approval of the • SEBI, Stock exchanges: • Filing of Scheme • ROC Filing transaction and other BSE & NSE, Lender
Slide 49: Thank You
Thank You Ankit Panchmatia Investor Relations +91-99870 71049 ankit.panchmatia@allcargologistics.com Mr. Irfan Raeen +91 97737 78669 irfan.raeen@linkintime.co.in Mr. Ashish Chovatia +91 99300 44680 ashish.chovatia@linkintime.co.in 48