Aegis Logistics Limited · NSE:AEGISLOG
Aegis Logistics — H1 FY2015 Earnings Presentation
34 slides from Aegis Logistics's earnings presentation, November 2014
Slide 1: Aegis Logistics Limited
Aegis Logistics Limited November 2014
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Aegis 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 secu
Slide 3: Agenda
Business Overview 4 Joint Venture with ITOCHU 6 Gas Business 16 Liquid Business 21 Financials 26 3
Slide 4: Business Overview
Business Overview Liquid Division Gas Division Business Business Third Party Liquid Logistics (3PL) Third Party Gas Logistics (3PL) H1 FY2015 EBITDA O&M Services Rs 83.40 Cr Auto Gas Retailing and Packed LPG Cylinders for Commercial Segment Industrial Gas Distribution Gas Gas Sourcin
Slide 5: Agenda: Joint Venture with ITOCHU
Business Overview 4 Joint Venture with ITOCHU 6 Gas Business 18 Liquid Business 24 Financials 30 5
Slide 6: Aegis enters into a Joint Venture for its Singapore based LPG Sourcing and Supply Business
Aegis enters into a Joint Venture for its Singapore based LPG Sourcing and Supply Business with ITOCHU Petroleum Co., (Singapore) Pte Ltd 6
Slide 7: Powerful Partners… …coming together…
Powerful Partners… Aegis Group International Pte. Ltd (AGI) is a sourcing and trading subsidiary of Aegis Logistics Limited, leading Oil, Gas & Chemical Logistics Company Aegis Logistics has five distinct but related business segments, and operates a national network of Liquid Terminals, LPG Ter
Slide 8: …Creating ‘Leading LPG Sourcing Player in India’
…Creating ‘Leading LPG Sourcing Player in India’ Aegis Logistics Limited sold 40% of its equity ownership in its wholly owned subsidiary, Aegis Group International Pte. Ltd. Singapore, to ITOCHU Petroleum Co., (Singapore) Pte Ltd., a wholly owned subsidiary of ITOCHU Corporation for a total consider
Slide 9: … through ‘Vertical Integration Strategy’
… through ‘Vertical Integration Strategy’ Gas Distribution Gas Logistics (3PL) AND/OR Gas Sourcing Sourcing Fees Industrial Sourcing Shipping Terminalling Auto Gas Sourcing, Shipping & Cost Optimization Commercial 9
Slide 10: JV : Best of both Worlds
JV : Best of both Worlds Aegis ITOCHU Growing LPG Market in India Large Volume of LPG Sourcing 0.85 mn MT p.a. throughput Efficient and Cost Effective Shipping capacity at Mumbai and Pipavav Port for High Volumes Strong Customer Relationships with Large Oil Companies Strong Negotiating P
Slide 11: Strategic Rationale for JV
Strategic Rationale for JV 1 Increase market share in India’s LPG Import 5 2 Cost Leadership in LPG Future Strategy Import Market 4 3 Unique Port Infrastructure Presence at Strategic Locations 11
Slide 12: Increase market share in India’s LPG Import
1 Increase market share in India’s LPG Import Consumptions of LPG in India (mn MT) Imports of LPG in India (mn MT) +6% 16.3 6.6 15.3 15.6 6.3 14.3 +16% 5.8 13.1 12.0 12.2 10.8 4.5 2.8 2.7 2.3 2.4 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14P FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Aegis sourced 0.8mn MT
Slide 13: Cost Leadership in LPG Import Market
2 Cost Leadership in LPG Import Market ITOCHU Negotiating Power Product World wide linkages with Global Oil Companies Planning & Sourcing Large Volume of LPG Sourcing Distribution Efficient Shipping & Supplies & Clubbing Cargo Evacuation Fleet of VLGCs Optimizing Shipping & Supply System
Slide 14: Presence at Strategic Locations
3 Presence at Strategic Locations Aegis – Gas Terminal Facilities Own & Operate 22,700 MT Gas Terminal with Throughput Capacity of 0.85 mn MT Mumbai Port – Owned Land (Mumbai Port Trust) Pipavav Port – Lease with GPPL Expanding Pipavav Gas Capacity from 2,700 MT to 5,400 MT (0.1 mn MT throug
Slide 15: Unique Port Infrastructure
4 Unique Port Infrastructure Aegis - Gas Infrastructure Terminal Facilities Port Capacity (MT) Owns and Operates Refrigerated Gas Terminal in Mumbai and Spherical Existing - Trombay Mumbai 20,000 Pressurized Gas Terminal in Pipavav along with Jetty pipeline Existing – Pipavav Gujarat 5,400 Direc
Slide 16: Future Strategy
5 Future Strategy Target : Market Share of 20-25% with 2.5 mn MT of sales volume in 5 years New LPG import terminals required to cater to the growing LPG imports Our next phase of growth in LPG business will come from investments in Port Infrastructure for LPG imports LPG terminals at ports wi
Slide 17: Agenda: Gas Business
Business Overview 4 Joint Venture with ITOCHU 6 Gas Business 18 Liquid Business 24 Financials 30 17
Slide 18: Capturing Complete LPG Value Chain
Capturing Complete LPG Value Chain Gas Distribution Gas Logistics (3PL) AND/OR Gas Sourcing Sourcing Fees Industrial Sourcing Shipping Terminalling Auto Gas Segment Activity Revenue Stream Gas Sourcing Sourcing & Shipping Sourcing Commission Throughput Fees, Handling & Value Gas Logistics Terminalli
Slide 19: Update on Capacity Expansion
Update on Capacity Expansion Expansion: 2,700 MT at Pipavav Distribution Business Commissioned : 2,700 MT at Pipavav Crossed 154 Distributors/Dealers Final Project Cost ~Rs. 20 Cr 100 Auto Gas Stations Commercial operations started 54 Commercial & Industrial Distributors spread across 42
Slide 20: Gas Distribution Network
Gas Distribution Network B2C Auto Gas Retailing: Distribute LPG as Auto Fuel through Gas Station Network 100 Auto Gas Stations across 7 States B2B Bulk Industrial Distribution: Distribute LPG through road tankers to Auto, Steel, Ceramic Industries etc Commercial LPG: Distribute Packed Cylind
Slide 21: Gas Division Performance
Gas Division Performance Revenue (Rs. Crs.) Normalized EBITDA (Rs. Crs.) * 4,900 95.1 4,371 85.1 3,874 60.5 2,376 46.1 42.8 42.7 1,724 224 FY10 FY11 FY12 FY13 FY14 H1FY15 FY10 FY11 FY12 FY13 FY14 H1FY15 * - Normalized EBITDA – Before Forex, Hedging Related Expenses 21
Slide 22: LPG Volume Break-up
LPG Volume Break-up Distribution (‘000 MT) Logistics (‘000 MT) 53 620 48 49 44 477 39 460 417 332 272 21 FY10 FY11 FY12 FY13 FY14 H1FY15 FY10 FY11 FY12 FY13 FY14 H1FY15 22
Slide 23: Agenda: Liquid Business
Business Overview 4 Joint Venture with ITOCHU 6 Gas Business 18 Liquid Business 24 Financials 26 23
Slide 24: Liquid Logistics and O&M Services
Liquid Logistics and O&M Services Liquid Logistics (3PL) O&M Services Shipping Terminalling O&M Facilities Segment Activity Revenue Stream Storage and Throughput Fees, Handling & Value Liquid Logistics Terminalling Addition Service Charges O&M Services Operations & Maintenance O&M Fees 24
Slide 25: Liquid Terminal Facilities
Liquid Terminal Facilities Existing Facilities Port Capacity (KL) Trombay Mumbai 198,000 Ambapada Mumbai 75,000 Willingdon Island Kochi 51,000 Chiranjibpur Haldia 60,190 Pipavav Gujarat 1,20,120 Built up of Capacities 504 120 60 273 51 Mumbai Kochi Haldia Pipavav Total Total capacity : ~ 500,000 KL
Slide 26: Update on Capacity Expansion
Update on Capacity Expansion New Project: 60,190 KL at Haldia Expansion: 120,000 KL at Pipavav New Project: 60,190 KL at Haldia (Greenfield) Expansion: 120,000 KL at Pipavav Final Project Cost Rs. 51 Cr Final Project Cost ~Rs. 90 Cr Debt : Rs. 30 Cr; Internal Accruals : Rs. 21 Cr Full Ca
Slide 27: Liquid Division Performance
Liquid Division Performance Revenue (Rs. Crs.) Normalized EBITDA (Rs. Crs.) * 131 83.5 107 61.2 92 87 54.2 81 49.7 45.9 65 40.7 FY10 FY11 FY12 FY13 FY14 H1FY15 FY10 FY11 FY12 FY13 FY14 H1FY15 * - Normalized EBITDA – Before Forex, Hedging Related Expenses 27
Slide 28: Multiple Growth Drivers
Multiple Growth Drivers Haldia Fully Operational in FY15 & Pipavav Partially Operational Capacity Pipavav Terminal Facility Expansion: 50,000 KL Liquid & 2,700 MT Gas Expansion Strengthening Distribution Network for Commercial Packed Cylinders Expanding Auto Gas Station network in Tier I & I
Slide 29: Agenda: Financials
Business Overview 4 Joint Venture with ITOCHU 6 Gas Business 18 Liquid Business 24 Financials 30 29
Slide 30: Consolidated Profitability Statement
Consolidated Profitability Statement Rs Crs Q2FY15 Q2FY14 Y-o-Y % Q1FY15 Q-o-Q % Revenue 1489 1,563 -5% 949 57% Cost of Sales 1414 1,506 890 Others 30 19 21 Normalized EBITDA (Segment) * 45 38 19% 38 19% Finance, Hedging & Forex related 3 1 6 Expenses (Net) Depreciation 6 6 5 Unallocated Expenses 5
Slide 31: Consolidated Profitability Statement
Consolidated Profitability Statement Rs Crs H1FY15 H1FY14 Y-o-Y % FY14 Revenue 2438 2,369 3% 5,031 Cost of Sales 2304 2258 4,804 Others 51 39 83 Normalized EBITDA (Segment) * 83 72 16% 144 Finance, Hedging & Forex related Expenses 9 4 19 (Net) Depreciation 11 11 21 Unallocated Expenses 11 12 25 Prof
Slide 32: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. Crs Sept-14 Mar-14 Rs. Crs Sept-14 Mar-14 Shareholder’s Fund 390 349 Non-Current Assets 550 552 ShareCapital 33 33 Fixed Assets * 476 462 Reserves & Surplus 357 316 Non-Current Investments 3 10 Minority Interest 16 13 Other Non-Current Assets 71 80 Non-Current Liabilit
Slide 33: Dividend Track Record
Dividend Track Record Dividend 42% 37% 34% 40% 29% Payout 18 15 14 10 6 6 5 4 4 2 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 DPS EPS Interim Dividend for FY2015 of Rs 2.5 per share 33
Slide 34: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Aegis Logistics Limited Strategic Growth Advisors Pvt. Ltd. CIN: L63090GJ1956PLC001032 CIN: U74140MH2010PTC204285 Mr. Murad Moledina, CFO Ms. Payal Dave / Mr. Jigar Kavaiya murad@aegisindia.com dpayal@sgapl.net / kjigar