May, 2020 Adani Ports and SEZ Limited Updated - May, 2020
Group Profile 04-07 Company Profile 09-17 Financial Profile 19-27 ESG 29-33 Annexures 34-43
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Transport & Logistics Energy & Utility Adani Adani Portfolio Portfolio • Philosophical shift fromB2B 63.3% 100% 75% 75% to B2C businesses – APSEZ SRCPL ATL AGEL • AGL – Gas distribution Port & Logistics Renewables Rail T&D network to serve key geographies across India 100% 75% 37.4% • AEML – Electricity AGL AAPT 75% distribution network APL IPP Gas DisCom Abbot Point that powers the AEL financial capital of India Incubator • Adani Airports – To operate, manage and develop six airports in the country 100% 100% 100% 100% AAHL ATrL AWL Data • Locked in Growth 2020 – Airports Roads Water Centre • Transport & Logistics - Airports and Roads ~USD 21 bn 1 • Energy & Utility – Water and Data Centre Combined Market Cap APSEZ, ATL, AGEL & AEML- only Private sector Infrastructure IG issuers in India 4 1. As on April 30, 2020, USD/INR – 75.10 | Note - Percentages denote promoterholding Light blue colour represent public traded listed verticals
Development Operations Post Operations Phase Origination Site Development Construction Operation Capital Mgmt Analysis & Life cycleO&M Redesigning the Site acquisition Engineering & market planning capital structure of design Concessions intelligence the asset Asset and regulatory Sourcing & Activity Management plan Operational phase Viability analysis agreements quality levels funding consistent Investment case Strategic value Equity & debt with asset life development funding at project Redefining the Envisaging Complex O&M optimisations Successfully placed 7 space e.g. evolution of sector developments on e.g. Solar plants issuances totalling Mundra Port e.g. Adani time & budget e.g. ~USD4Bn in FY20 Transmission APL All listed entities Performance maintain liquidity cover of 1.2x- 1.8x for FY21. Focus on liquidity planning ensures remaining stress free. Low capital cost, time bound & quality completion providing long term stable cashflow & enhancedRoE 5
Successfully applied across Infrastructure & utility platform Development at large scale & within time and budget India’s Largest Longest Private 648 MW Ultra Mega Largest Single Location Commercial Port HVDC Line in Asia Solar Power Plant Private Thermal IPP (at Mundra) (Mundra – Dehgam ) (at Kamuthi, TamilNadu) (at Mundra ) Key APSEZ ATL AGEL APL Business Excellence in O&M – Constructed and Highest Margin High Availability Highest benchmarked to Commissioned in among Peers in the Billed availability availability Model global standards 9 months World of 89% 5 among Peers EBITDA margin:90% 1,4 Attributes EBITDA margin:65% 1,2 EBITDA margin: 91% 1,3 Diverse financing sources – only Indian infrastructure portfolio with four (4) Investment Grade PSU 55% Private Banks 31% (IG) issuers Private Banks 31% Bonds 31% March September Bonds 14% PSU 38% 2016 2019 Note: 1 Data for FY19; 2 Excludes forex gains/losses; 3 EBITDA = PBT + Depreciation + Net Finance Costs – Other Income; 4 EBITDA 6 Margin represents EBITDA earned from power sales and exclude other items; 5 FY20 data for commercial availability declared under long term power purchase agreements; Include listed Group companies
Ports Logistics SEZ • Largest integrated logistics player • Nine operating Ports, ~410 MMT • Large scale ‘ready to setup’ in India. of augmented capacity in India. industrial land (SEZ) • Operating 60+ rakes, 5 IFTs and Development • Hinterland reach of 60%-70% • Land Bank of 10,000 ha. at 400,000 sq.ft. of warehouse • Targeting East and West Coast Mundra, Dhamra and Kattupalli space. Parity ESG Best in Class Efficiency Symbiotic Integration • Ports, SEZ and logistics • Embedded ESG Framework for • In Container 30 Moves/hour integrated service removes Operations enhanced value creation the distinction between Port • Port EBITDA margin ~70% and Customer gate. Capital Management Debt Capital Program Efficient Use of Capital • IG rated since FY16 Access to international markets: • ROCE greater than cost of Value Creation • Reduction in interest cost by capital. • ROCE, one of the highest ~150 bps. • Elongated Maturity among global Peers. • Pre-tax project IRR of 16% 7
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Tech enabled operations Ports One to ten in twenty years String of Ports Consumer facing yet Ubiquitous to Ports of Prosperity customer trajectory SEZ "Ports to Platform” ~10k+ Ha of land bank Network dominance, Competitiveness is the moat Integrated Logistics Intimate connection (CTO to IWW and AFS an organic to customer supply evolution) chain 9
Evolution of APSEZ West Coast East Coast Capacity FY20 Capacity 1 FY06 327 MMT 99 MMT 1 410 10 Capacity 41x MMT MMT Dahej Assets 14 $8,223 $471 17x (US$ mn) MMT Port Kandla 14 Ports * MMT Mundra 264 MMT Achieving East Coast - West Coast Parity FY20 Dhamra 45 FY19 Hazira 20% MMT 30 MMT Vizag 15% Mundra - 6 India’s Largest MMT Commercial Port by Kattupalli Volume 18 MMT Mormugao 5 MMT Ennore Bulk Terminals 12 MMT Vizhinjam 85% Multipurpose Ports 80% Container Terminals West Coast East Coast 18 West Coast East Coast 9 Ports serving vast economic hinterland of the country 10 *Ports in India only
APSEZ Total Throughput All India Ports Total Cargo CAGR – 6% CAGR – 10% Container CAGR – 9% Container CAGR – 17% 1600 250 1400 1200 200 1000 150 800 1339 1282 223 1208 600 208 100 1134 1072 180 169 152 400 50 91 84 75 200 62 49 256 248 224 199 181 0 0 FY16 FY17 FY18 FY 19 FY 20 FY16 FY17 FY18 FY 19 FY 20 APSEZ Cargo Volume APSEZ Container Volume All India Cargo All India Container Volume growth consistently ahead of All India Ports 11
New Cargo Added - Coal Container Crude Others 41% 41% 41% 37% 41% 32% 36% 33% 33% 32% Mundra LPG 16% 15% 15% 15% 14% 13% 12% 12% 11% 11% FY 16 FY 17 FY 18 FY 19 FY 20 Mundra LNG 12
Sticky Cargo Trend Sticky Cargo Constitutes ~60% of total cargo. 128 121 Increasing at a CAGR of ~10% 111 108 81% of sticky cargo at Mundra. FY17 FY18 FY19 FY20 Port, as other port mature share of Sticky Cargo Composition- Port wise & Cargo wise sticky cargo from other ports will increase. 5% 9% 2% 16% 7% 30% Container and coal constitutes Mundra Coal 79% of total sticky cargo. 1% Dahej Containers Hazira Crude + POL Other Bulk Dhamra Kattupalli 81% 49% 13
Jammu Kashmir (In USD Billion) Himachal Pradesh Region FY19 FY25 Arunachal Punjab Pradesh Uttaranchal West 1290 2520 Haryana East 438 823 Sikkim Rajasthan Uttar South 706 1359 Assam Nagaland Pradesh Meghalaya Bihar Total 2434 4702 Manipur Jharkhan Mizoram Gujarat West Madhya d Bengal Pradesh Tripura Chattisgarh • Agility of logistics business brings Orissa flexibility in port business, Maharashtra improves stickiness of cargo. • Andhra Covering 70% of India’s economic Pradesh & Telangana hinterland. Karnataka • Economic hinterland reach in West Region GDP terms will increase 2x. South Region Tamil Nadu Kerala East Region Focus on further increasing the hinterland reach through organic and inorganic path 14 *Source : Internal Estimates
Rail Volume (lakh TEUs) Terminal Capacity (lakh TEUs) 2007 3.3 4.0 1.5 Terminal Volume (lakh TEUs) 4.0 Warehousing Capacity (lakh sqft.) 2019 4.0 2020 2007 3.3 5.0 2.4 2007 8 8 Barges 2018 14 14 Logistics Park 2019 2020 Silos 4 5 2018 India’s largest and diversified private rail operator 2020 15
Total Land Bank ~10k+ Ha. Developing Industrial Clusters: • Mundra SEZ (8000 Ha.) West Coast East Coast 80% 20% 20% Mundra 8,000 Proposed industrial development 80% • Kattupalli (150 Ha + 110* Ha) • Dhamra (1200 Ha + 450* Ha) West Coast East Coast Dhamra 1650 Value Creation: • Bringing customer inside Port gate. • Entrenching into customer’s supply chain – Higher Consumer Interface Kattupalli 260 • Providing Multimodal Connectivity 16 * Additional land under acquisition
Revenue Growth (3 yr CAGR) EBITDA Margin % 22.0% 64.0% Faster Growth than peers 46.7% Credit Rating ESG Rating Name 12.0% 42.8% 42.7% 39.0% APSEZ** Baa3/BBB-/BBB- CCC 4.8% 28.3% 3.7% 3.5% BB Baa1/A-/- Peer 1 BB Peer 2 Baa3/-/BBB APSEZ Peer 1 Peer 3 Peer 4 Peer 2 Peer 5 Peer 2 APSEZ Peer 5 Peer 3 Peer 4 Peer 1 -2.3% Peer 3 Baa1/BBB/- CCC Net Debt/LTM EBITDA ROCE % Peer 4 Aa1/AA/- N.A. 8.3x 12.6% Peer 5 A1/A+/- BB 8.1% 4.6x **APSEZ underlying rating is BBB/Baa2 4.5x 6.7% 5.5% 4.7% 2.9x 2.3x 2.2x 1.9% Peer 3 Peer 1 Peer 2 APSEZ Peer 5 Peer 4 APSEZ Peer 2 Peer 4 Peer 5 Peer 1 Peer 3 Note: Ratings in the sequence of Moody’s / S&P / Fitch. Source: Audited financials as per each of the above companies’ publicly available rating reports. (1) Financials for comparable companies are on Last Twelve Month (LTM) 17 Peer 1 – Hutchison Port Holdings, Peer 2 – DP World, Peer 3 – China Merchant, Peer 4 – PSA Terminals, Peer 5 – Shanghai Port. As per internal analysis
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