Operational & Financial Highlights
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Operational & Financial Highlights Adani Ports and SEZ Ltd., Q1 FY22 Contents A Group Profile B Company Profile C Highlights Q1 FY22 D ESG philosophy & performance E Response to recent developments F Update on Gangavaram and SRCPL Acquisition G Revised Outlook FY22 H Annexures 2 Group Profile Adani Group: A world class infrastructure & utility portfolio Adani Transport & Logistics Energy & Utility • Marked shift from B2B to Portfolio Portfolio B2C businesses– • ATGL – Gas distribution 63.4% 100% 75% 57.5% network to serve key geographies across India APSEZ ATL AGEL NQXT2 Port & Logistics T&D Renewables • AEML – Electricity distribution network 100% 75% 37.4% that powers the SRCPL APL ATGL3 financial capital of Rail 75% IPP Gas DisCom India • Adani Airports – To AEL operate, manage and Incubator develop eight airports in the country • Locked in Growth – • Transport & Logistics - 100% 100% 100% 50% Airports and Roads AAHL ARTL AWL AdaniConneX4 • Energy & Utility – Airports Roads Water Data Centre Water and ~USD 89 bn1 Data Centre Combined Market Cap Opportunity identification, development and beneficiation is intrinsic to diversification and growth of the group. 1 . As on July 30th , 2021, USD/INR – 74.4 | Note - Percentages denote promoter holding and Light blue color represent public traded listed verticals 2. NQXT – North Queensland Export Terminal | 3. ATGL – Adani Total Gas Ltd, JV with Total Energies | 4. Data center, JV with EdgeConnex 4 Adani Group: Decades long track record of industry best growth rates across sectors Port Cargo Throughput (MMT) Renewable Capacity (GW) Transmission Network (ckm) CGD7 (GAs8 covered) 132% 12% 45% 20% 3x 5x 3x 30% 1.5x 4% 7% 25% Industry APSEZAdani Industry AGELAdani Industry ATL Industry AGL 2014 972 MMT 113 MMT 2016 46 GW 0.3 GW 2016 320,000 ckm 6,950 ckm 2015 62 GAs 6 GAs 2021 1,246 MMT 247 MMT 2021 140 GW9 19.3 GW6 2021 441,821 ckm 18,801 ckm 2021 228 GAs 38 GAs APSEZ AGEL ATL ATGL Highest Margin among Worlds largest Highest availability India’s Largest private CGD Peers globally developer among Peers business EBITDA margin: 70%1,2 EBITDA margin: 91%1,4 EBITDA margin: 92%1,3,5 EBITDA margin: 41%1 Next best peer margin: 55% Among the best in Industry Next best peer margin: 89% Among the best in industry Transformative model driving scale, growth and free cashflow Note: 1 Data for FY21; 2 Margin for ports business only, Excludes forex gains/losses; 3 EBITDA = PBT + Depreciation + Net Finance Costs – Other Income; 4 EBITDA Margin represents EBITDA earned from power supply 5 . Operating EBITDA margin of transmission business only, does not include distribution business. 6. Contracted & awarded capacity 7. CGD – City Gas distribution 8. GAs - Geographical Areas - Including JV | Industry data is from market intelligence 5 9. This includes 17GW of renewable capacity where PPA has been signed and the capacity is under various stages of implementat ion and 29GW of capacity where PPA is yet to be signed’ Adani Group: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt • Analysis & market • Site acquisition • Engineering & design • Life cycleO&M • Redesigning capital structure planning of assets intelligence • Concessions & regulatory • Sourcing & quality levels • Viability analysis agreements • Asset Management plan • Operational phase funding • Equity & debt funding at consistent with asset life Activity • Strategic value • Investment case development project Revolving project finance facility of India’s Largest Longest Private HVDC 648 MW Ultra Mega Energy Network Operation $1.35Bn at AGEL – fully funded Commercial Port Line in Asia Solar Power Plant Center (ENOC) project pipeline (at Mundra) (Mundra - Mohindergarh) (at Kamuthi, TamilNadu) First ever GMTN1 of USD 2bn by an energy utility player in India’s – an SLB2 in line with COP26 goals at Highest Margin Highest line Constructed and Centralized continuous AEML among Peers availability Commissioned in monitoring of plants nine months across India on a single Issuance of 20 & 10 year dual tranche cloud based platform bond of USD 750 mn - APSEZ the only Performance infrastructure company to do so Debt structure moving from PSU’s banks to Bonds 14% 30% 50% 31% 55% 20% 6 1. GMTN – Global Medium Term Notes 2. SLB – Sustainability Linked Bonds PSU Pvt. Banks Bonds March 2016 March 2021 Company Profile APSEZ : A transport utility with string of ports and integrated logistics network West Coast East Coast Capacity 335 MMT Capacity 227* MMT Dahej 14 MMT Tuna 14 MMT Mundra 264 MMT Dhamra Hazira 45 MMT Vizag Mundra - 30 MMT 6 MMT India’s Largest Commercial Dighi Gangavaram^ Port by 8 MMT 64 MMT Volume Krishnapatnam 64 MMT Mormugao Container Terminals Kattupalli 5 MMT Bulk Terminals 18 MMT Multipurpose Ports Vizhinjam Ennore 12 MMT 18 MMT An integrated approach through Ports, SEZ and Grown from a single port to Twelve^ Ports ~560 MMT Logistics enables presence across value chain of augmented capacity to handle all types of cargo. *Includes both SEZ and non SEZ land | Vizhinjam considered on east coast as its primary hinterland would be there | CTO – Container Train Operator | IWW –Inland Water Ways | AFS – Air Freight Stations | ^ Gangavaram Port is under acquisition 8 APSEZ : Our Strategy led to market leadership Cargo Diversification Coal Containers (mmt) Crude Others APSEZ’s pillars of strategy Strategic Partnerships Integrated logistics FY02 FY11 FY21 East Coast West Coast parity West East West East West East Ensured resilience and stickiness of cargo 9 Highlights Q1 FY22 APSEZ : Strategic highlights – Q1 FY22 Operations Capital Management Growth • 83% Growth in cargo volume compared • APSEZ became the first Indian • Acquired balance 25% stake in to 33% growth by all India ports infrastructure company to have raised a Krishnapatnam port for Rs.2,800 cr., resulting in gain in market share. dual-tranche of 10.5-year and 20-year making it a 100% subsidiary of APSEZ • Cargo market share increased by 310 unsecured bonds. • Second international foray, to develop a bps to 28.6% and Container market container terminal at Colombo Port with a share increased by 163 bps to 43% • The notes were issued at attractive fixed capacity of 3.5 mn TEUs. Construction coupon of 3.8% and 5% respectively, • Two new service added one each at expected to start in Dec ‘21 Mundra and Hazira with a potential of • Acquired 31.5% stake in Gangavaram Port 125,000 TEUs p.a. • Maturity profile of debt increased from 6 from Warburg Pincus at Rs.120 per share years to over 7 years. • Five bulk rakes added under GPWIS. • Consideration for 58.1% stake from DVS Raju & Family agreed at Rs.120 per share • Port EBITDA margins improved to 71%. • Warburg Pincus invested Rs.800 cr. in & process for acquisition of balance APSEZ in April 2021 under preferential • The company under the corporate 10.4% from GoAP is at an advance stage quota provided free vaccination to all allotment guidelines. • its employees, family members of the Independent Directors’ Committee to employees and contract workers. 97% evaluate merger as a process for of employees, 80% of family members acquisition of balance 58.1% stake from and 94% of contract workers are DVS Raju & Family and determine the vaccinated. swap ratio • Merger scheme for consolidating rail track assets (by acquiring SRCPL and demerging Mundra rail assets) filed. 11 APSEZ : Operational highlights – Q1 FY22 (YoY) Cargo volume Cargo Market Share 83% 310 bps • Cargo volume increased due to growth in all Q1 FY21 Q1 FY22 types of cargo - Dry bulk grew by 104%, FY21 Q1 FY22 41.4 75.7 Container by 69%, and liquid cargo 25.5% 28.6% MMT MMT (including crude) by 57%. • All ports of APSEZ registered high double digit growth. • Mundra port continues to be the largest Container volume Container Market Share commercial port, 19% ahead of the second largest port Deendayal (Kandla) Port. 69% 163 bps • In logistics business, rail volume and Q1 FY21 Q1 FY22 terminal volume increased by 10% and 13% FY21 Q1 FY22 1.2 mn 2.1 mn respectively. 41.1% 42.7% TEUs TEUs 12 Market share calculated as per internal estimates. Excluding non Adani and coastal LNG, LPG Volume APSEZ : Cargo volume Q1 FY22 - APSEZ vs. All India (YoY in MMT) APSEZ All India Cargo* 76 265 83% 33% 199 41 31 69% 18 51% 71 47 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 APSEZ Total Cargo APSEZ Container All India Total Cargo All India Container East Coast - West Coast Share Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 33% 20% 36% 38% APSEZ All India 64% 62% 67% 80% West Coast East Coast West Coast East Coast West Coast East Coast West Coast East Coast 13 *As per internal estimates. Excluding non Adani coastal LNG, LPG Volume APSEZ : Balanced cargo composition – Q1 FY22 51% 48% 48% 45% 44% 45% 44% 43% 41% 41% 41% 40% 37% 32% 17% 15% 15% 14% 14% 12% 11% 0.3% 1.0% 0.5% FY16 FY17 FY18 FY19 FY20 FY21 Q1 FY22 Dry Liquid (incl. Crude) Gas Container 14 APSEZ : Financials highlights – Q1 FY22 (YoY, in INR cr.) Operating Revenue Operating EBITDA 99% 82% 2,293 4,557 1,438 2,620 Port Revenue Port EBITDA Port EBITDA Margin 100 bps 75% 78% 1,904 3,339 1,324 2,356 70% 71% PBT PAT EPS 60% 77% 72% 943 1,513 758 1,342 3.73 6.41 Q1 FY21 Q1 FY22 15 *EBITDA excludes forex loss of Rs.389 cr. in Q1 FY22 vs. forex gain of Rs.37 cr. in Q1 FY21 and Q1 FY21 EBITDA excludes one time donation of Rs.80 cr. APSEZ : Key segment wise operating revenue & EBITDA* - Q1 FY22 (YoY - Rs.