Corporate Day - Key Messaging Adani Ports and SEZ Limited August, - PowerPoint PPT Presentation

Corporate Day - Key Messaging Adani Ports and SEZ Limited August, 2019

APSEZ : Investment thesis Unique operating model with Assets with enhanced capacity sustained high and diversified utilization and operating leverage World-class growth having low risk technology and people Market leader in the fastest One-point transport utility with growing region across the integrated logistics globe with 60-70% Sustained profitability hinterland presence and enhanced balance Emphasis on environment, sheet strength sustainability and corporate Benign regulatory governance environment with stable outlook 3 Roadmap 2025 Investment Thesis Technology & People Growth with Goodness Finance Strategy

Crossed key milestone of 200 MMT in FY19 (MMT) CAGR 400 FY09 FY19 (FY09-19) • No. of Port: 1 • No. of Port: 10, JV-2 • Capacity: 80 MMT • Capacity: 395 MMT • Revenue: 1,496 Cr • Revenue: 10,925 Cr 19% 300 • EBITDA: 966 Cr • EBITDA: 7,067 Cr Cargo 200 208 22% 151 Revenue 100 Single commodity 93 to multi-commodity 22% 36 0 FY09 FY11 FY13 FY15 FY17 FY19 FY21 FY23 FY25 EBITDA APSEZ is among the top 5 fastest growing port players in the world 4 Investment Thesis Roadmap 2025 Technology & People Finance Strategy Growth with Goodness

Next 200 MMT to be achieved in 6 years (MMT) FY25 • No of Ports: 11, JV-2 • Capacity: 570 MMT 400 FY09 FY19 400 Cargo • No. of Port: 1 • No. of Port: 10, JV-2 • Capacity: 80 MMT • Capacity: 395 MMT 290 19% 300 CAGR (FY09-19) • P II - Myanmar 0.30 Mn TEUs 200 • Dhamra LPG, LNG 208 • Mundra CT 6 12% • P I - Myanmar 168 151 0.5 Mn TEUs CAGR (FY19-25) 100 • Vizhinjam Single commodity 93 to multi-commodity • Mundra LNG, LPG and T 2 Conv. 36 0 FY09 FY11 FY13 FY15 FY17 FY19 FY21 FY23 FY25 Source: Internal calculation APSEZ is among the top 5 fastest growing port players in the world 5 Investment Thesis Roadmap 2025 Technology & People Finance Strategy Growth with Goodness

Our business hinterland will remain growth engine of the world INR 2.7 trillion FY2019 nominal GDP India INR 2.5 trillion Incremental GDP by FY2025 Notes: Colour ramp is based on GDP growth rates in 2019. Source: The Conference Board Economic Outlook 2019, July 2019 update. Note: Average real GDP projected for 2019-25 is 7.5% Average nominal GDP estimated at 11.6% USD-INR exchange rate is projected at 70 6 Roadmap 2025 Investment Thesis Technology & People Growth with Goodness Finance Strategy

Coal Consumption to increase (MMT) FY19 FY25 Assumptions: 969 1,142 Total Coal Consumption 1. Power demand assumed to grow at 5% through FY25 861 1,013 2. By FY25, Non-Coking Coal Power • Coal power requirement (Adj for RE and other non-thermal) 566 671 (Utilities) is 1,200 BU (1000 BU in FY19) • Coal PLF seen to rise to 67% Power (CPPs) 77 95 • Thermal coal requirement for utilities ~670 MMT (570 MMT in FY19), Captive power ~100 MMT (80 MMT in FY19), Cement and other Non-Power 218 246 industries ~250 MMT (220 MMT in FY19) 670 191 892 121 1. CIL dispatches to grow by 800 MMT (80% of CIL stated target 1,000 MMT), ramp-up assumed in ECL, CCL, NCL, SECL, and MCL 55 90 2. Major lines up for opening and unclogging capacities include Shivpur- Coking Coal 108 129 Kathua in CCL (+20 MMT), Jharsuguda-Barapalli-Sardega (+35MT, Phase II +60MT), Kharsia-Dharamjaigarh in SECL (+80MT) and Tori-Shivpur in Steel CCL (+80 MMT). 60 48 60 69 3. Other public and private miners will ramp-up to 65 MMT Domestic Total 730 239 952 189 Imported Coastal Source: Internal calculations 7 Roadmap 2025 Investment Thesis Technology & People Growth with Goodness Finance Strategy

Opportunity in containers handling: 1.7X rise in all India volumes Drivers (%) 1. Economy doubling in size over 2025, consumption led demand 30.0 will hold as rising disposal income and premiumisation of consumption will mean demand of imported goods. Based on 28.0 Historical 2. Transshipments volumes at selective ports, especially at Growth Trends Mundra & Vizhinjam. 26.0 3. Growth(minor volumes) in regional landlocked country 24.0 Correlation container demand: Nepal & Bhutan with Indian 4. Inorganic support in form of cargo containerisation from 22.0 GDP YoY current levels of 65% ( benchmark 85 to 90 %). Growth 20.0 5. Long term impact of make in India and high growth in Correlation manufacturing Gross Value Added with Global 18.0 container growth 16.0 TEUs/1000 Years 14.0 All India West East South population growth trends 12.0 2018-19 17 11 1 4 2024-25e 10.0 28 19 2 7 FY14 15 16 17 18 19f 20f 21f 22f 23f 24f 25f Growth 65% 73% 100% 75% Source: Internal calculations 8 Roadmap 2025 Investment Thesis Technology & People Growth with Goodness Finance Strategy

APSEZ will continue to outpace India’s cargo growth by 2X (Cargo Volume in MMT) (%) FY19 FY25 1792 5.5% CAGR 1,300 23 19 29 23 FY19 FY25 16 24 14 16 18 18 (MMT) FY25 390*** 25%** FY19 207 Container Coal Crude Other Liquid Non-Coal 22% **ex of coastal volumes *** 390 MMT excludes Myanmar Operations Source: Internal calculations 9 Roadmap 2025 Investment Thesis Technology & People Growth with Goodness Finance Strategy

APSEZ cargo diversification will continue (MMT) CAGR 11.5% FY19 FY25 450 400* 400 350 3 7 300 8 250 208 33 40 200 9 49 150 100 9 50 6 12 24 0 FY19 FY25E Containers 83 187 Other Liquid 11 21 LPG & LNG 0 13 Crude 25 38 Non-Coal 19 33 Coal 69 93 Container Coal Non-Coal Crude LPG & LNG Other Liquid * Includes 16 MMT cargo from inorganic growth 10 Roadmap 2025 Investment Thesis Technology & People Growth with Goodness Finance Strategy

Containers to contribute 62% to incremental volume (%) Of which 5 ports account > 90% 200 Mundra – 59% 176 109 Myanmar & Vizhinjam – 16% 180 Kattupalli + Ennore – 15% 160 140 120 100 80 14 17 60 13 40 10 13 20 0 Container NC Coal Other Dry Crude Other Liquid Gas Total 11 Roadmap 2025 Investment Thesis Technology & People Growth with Goodness Finance Strategy

APSEZ port wise incremental cargo volume by FY25 (%) (%) 71% of incremental growth comes from containers out of which 18% is transhipment Commodity FY 19 FY 25 200 Containers 34 48 176 89 180 Coal 29 51 160 Crude + POL 8 9 140 42% of incremental growth comes from coal Gas (LPG + LNG) 0 19 120 Other Liquid 15 19 100 36 Total 22 25 80 60 10 9 40 9 9 9 20 3 2 0 Mundra Dhamra Hazira Katupali Ennore Myanmar Vizhinjam Tuna Vizag Total 12 Roadmap 2025 Investment Thesis Technology & People Growth with Goodness Finance Strategy

Focused capital allocation based on harnessing existing capacities Current State: FY19 FY 25: Investment in key infrastructural projects Expected in FY25 Port (1) Utilisation (2) Installed Capacity Key identified infrastructure projects for capacity addition Installed Capacity Utilisation • Container terminal capacity – CT 2 and CT6 227 MMT Mundra 252 MMT 137 MMT 325 MMT • Liquid cargo storage tanks (55%) (70%) • LPG and LNG • Rail linkage to Hazira port Hazira 30 MMT 20 MMT 43 MMT 29 MMT • Liquid terminal (65%) (68%) • Warehouse and open cargo storage yards • New multipurpose cargo berth Dhamra 45 MMT 21 MMT 83 MMT 58 MMT • Doubling of railway line (46%) (70%) • Container infrastructure • LPG and LNG • Rail connectivity to Kattu-palli port 18 MMT Kattu-palli 18 MMT 9 MMT 26 MMT (51%) • Multipurpose berth and liquid terminal Facility (69%) Notes: (1) Does not include Dahej, Ennore, Tuna, Goa, Kandla and Vizag ports / terminals (2) Actual cargo volumes in FY19, and percentage utilisation: calculated as actual volumes in FY19 / installed capacity 13 Roadmap 2025 Investment Thesis Technology & People Growth with Goodness Finance Strategy

Focused capital allocation based on harnessing existing capacities Current State: FY19 FY 25: Investment in key infrastructural projects Expected in FY25 Port (1) Installed Capacity Utilisation (2) Key identified infrastructure projects for capacity addition Installed Capacity Utilisation 9 MMT • Container transshipment hub Vizhinjam Under Construction 18 MMT (50%) • Phase I – 0.5 Mn Installed Capacity Myanmar Under Construction 12 MMT 8 MMT (expected cost of USD 220 – 230 Mn) (67%) • Phase II – 0.3 Mn Installed Capacity (expected cost of USD 55 – 60 Mn) • 4 Logistic park/ICDs • Investment in an additional 12 + Multimodal • 15+ Multi-modal Logistics Logistics • 49+ rakes (3) logistics parks Parks • Warehouse: 0.4Mn Sq. Ft. • 200+ rakes • Investment in additional 180+ Rakes • Warehouse: 5 Mn SqFt. (Bulk + Container Trains + Auto Trains) • 1.5 MMT+ Silo Capacity • Additional 4.5 Mn Sq. Ft + Warehouse • 2 Mn Sqft Cold Storage Space development Estimated Capex of INR 17,500 Crs. to create ~170 MMT of capacity+Logistics Expansion Notes: (1) Does not include Dahej Ennore, Tuna, Goa, Kandla and Vizag ports / terminals (2) Actual cargo volumes in FY19, and percentage utilisation: calculated as actual volumes in FY19 / installed capacity (3) Number of rakes is as on 20-Aug-2019 14 Roadmap 2025 Investment Thesis Technology & People Growth with Goodness Finance Strategy