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May 2013APSEZL Company Presentation
Adani Ports & SEZ Limited
Company PresentationMay 2013
May 2013APSEZL Company Presentation
APSEZL assumes no responsibility to publicly amend, modify orrevise any forward looking statements, on the basis of anysubsequent development, information or events, or otherwise.Unless otherwise stated in this document, the informationcontained herein is based on management information andestimates. The information contained herein is subject to changewithout notice and past performance is not indicative of futureresults. APSEZL may alter, modify or otherwise change in anymanner the content of this presentation, without obligation tonotify any person of such revision or changes. No person isauthorized to give any information or to make any representationnot contained in and not consistent with this presentation and, ifgiven or made, such information or representation must not berelied upon as having been authorized by or on behalf of APSEZL.This presentation is strictly confidential.This presentation does not constitute an offer or invitation topurchase or subscribe for any securities in any jurisdiction,including the United States. No part of it should form the basis ofor be relied upon in connection with any investment decision orany contract or commitment to purchase or subscribe for anysecurities. None of our securities may be offered or sold in theUnited States, without registration under the U.S. Securities Actof 1933, as amended, or pursuant to an exemption fromregistration therefrom.This presentation is confidential and may not be copied ordisseminated, in whole or in part, and in any manner. Thispresentation contains translations of certain Rupees amounts intoU.S. dollar amounts at specified rates solely for the convenience ofthe reader.
Certain statements made in this presentation may not be based onhistorical information or facts and may be “forward-lookingstatements,” including those relating to general business plansand strategy of Adani Ports and Special Economic Zone Limited(“APSEZL”), their future outlook and growth prospects, and futuredevelopments in their businesses and their competitive andregulatory environment, and statements which contain words orphrases such as ‘will’, ‘expected to’, etc., or similar expressions orvariations of such expressions. Actual results may differ materiallyfrom these forward-looking statements due to a number of factors,including future changes or developments in their business, theircompetitive environment, their ability to implement theirstrategies and initiatives and respond to technological changesand political, economic, regulatory and social conditions in India.This presentation does not constitute a prospectus, offeringcircular or offering memorandum or an offer, or a solicitation ofany offer, to purchase or sell, any shares and should not beconsidered as a recommendation that any investor shouldsubscribe for or purchase any of APSEZL’s shares. Neither thispresentation nor any other documentation or information (or anypart thereof) delivered or supplied under or in relation to theshares shall be deemed to constitute an offer of or an invitation byor on behalf of APSEZL.APSEZL, as such, makes no representation or warranty, expressor implied, as to, and does not accept any responsibility or liabilitywith respect to, the fairness, accuracy, completeness orcorrectness of any information or opinions contained herein. Theinformation contained in this presentation, unless otherwisespecified is only current as of the date of this presentation.
2
Legal Disclaimer
May 2013APSEZL Company Presentation
Adani Group Introduction
Industry Scenario: Indian Ports & Logistics
Adani Ports and Special Economic Zone Limited
Business Highlights
APSEZL Advantage
Financial Performance
Table of Contents
3
May 2013APSEZL Company Presentation
One of lndia’s largest private
port developers & operators
3 operating ports with 12
terminals and 31 berths*
Developing 3 bulk terminals
with 6 berths at 3 ports
Developed and operates 86 km
private railway line in India
One of the largest Mine
Developer and Operator
(MDO) in India
Developing coal mines
internationally in Australia
and Indonesia
Leading coal importer in
India: Sourcing coal from
Indonesia, South Africa and
Australia
Adani Group: An Overview
4
Developed power projects at
Mundra, Tiroda & Kawai
Leading private transmission line
developer
Mix of long-term power purchase
agreements and sales at the
prevailing market rates
Gas distribution in various cities of
India
•Coal•Mining•Trading
•AgroResources
• Ports • Railways• Shipping
Logistics•Power• Generation• Transmission• Trading
•Gas Distribution
Energy
Notes:*: Includes 2 Single Point Mooring facilities at Mundra
May 2013APSEZL Company Presentation
697 483
741
499
0
400
800
Major Ports Non Manor Ports
912 1,188
1,391 1,606 1,813
2,017
0
800
1,600
2,400
FY12 FY13E FY14E FY15E FY16E FY17E
XIth Five Year Plan (2007-12),Total Cargo Handled & Projections,
• 95% by volume and 70% by value of India’s international trade moves through ports
• Coastline of 7,517 km, ample opportunity to grow.
• 13 Major Ports; 6 on west coast and 7 on east coast
– Managed by Port trusts*, regulated by the Government of India;
– Served 59% of cargo traffic in FY12
• Privately owned ports served 41% of cargo traffic in FY12
– Gujarat a proactive player in development of non-major ports
Sources Ministry of Shipping (GoI), Ministry of Road Transport and Highways (GoI), Indian Ports Association, IBEF
MMT
Indian Ports: Immense Growth Potential
5
Ports in India: To grow from 7% (11th 5yr Plan) to 17% ... However, Less Capacity Added vs. Planned
Major Ports
Select Non-Major PortsCochin
New Mangalore
Mormugao
JNPT
Mumbai
Kandla
Hazira
MundraCalcutta
Paradip
Vizag
EnnoreChennai
Dahej
*: Ennore managed by a corporate entity
44 mtpa Shortfall
16 mtpa Shortfall
Planned
Actual
MMT
Major and Non-Major Ports of India
May 2013APSEZL Company Presentation
126%106%
93% 93%
0%
50%
100%
150%
Mumbai JNPT Mormugao Kandla
6.3 6.4 5.74.9
4.8 4.42.5
0.0
5.0
10.0
Driving traffic & investment to non-major ports
1.170.63 0.27 0.15 0.10 0.13 0.78 2.59
0.0
1.2
2.3
3.5
Non-Major Port Capacity Additions to Help Meet Demand Ample opportunity for private ports to grow
Bn MT (Capacity) MMT (Cargo Handled) % Share
Sources Ministry of Shipping (GoI), Ministry of Road Transport and Highways (GoI), Indian Ports Association
Indian Ports: Non-Major and Private Ports Gaining Share
6
With lag in capacity creation, Major Ports are highly congested; having high turn around times
APSEZL has emerged as the largest private port player with key assets on western coast of India
% Utilization Level All Major ports on west coast congested Turn Around Times (Days)
Bulk Terminals Containers
126% 560 1,029 188 352
988 28%
39%
49%
0
20
40
60
0
1,000
2,000
3,000
FY07 FY12 FY17ENon-Major Major % of Non-Major Ports Traffic
May 2013APSEZL Company Presentation
2 operational offshore
single point mooring
facilities
Long Term Contracts
with three petroleum /
POL companies
4 operational
container terminals at
Mundra and Hazira
Established
connectivity
infrastructure in place
All assets of Adani
Ports equipped to
handled coal cargo
Mechanized coal
handling
infrastructure in place
APSEZL’s Capability
184
358
190
364
0
150
300
450
FY12 FY25E
1,031
319234
188 131 14 1002,017
0
500
1,000
1,500
2,000
2,500
FY12 Coal Containers Crude Iron Ore Fertilizers Others FY17
696
981
559
795
0
300
600
900
1,200
FY12 FY17E
Coal: Critical for India’s Energy RequirementsMMT
Indigenous Supply
Total Demand Refining Capacity
Crude Requirement
Increasing crude importsMMT
Sources Ministry of Shipping (GoI), Ministry of Road Transport and Highways (GoI), Indian Ports Association
Indian Ports: Cargo Diversity Key Feature of Future Traffic
7
Increasing Containerization
Container traffic
MMT
APSEZL’s Capability APSEZL’s Capability
*
*: Includes petroleum/ POL#: 1,031 mtpa Projected number; Actual: 930 mtpa
#
3C: Coal, Container & Crude Traffic to Drive Volume in India
Cargo Handled in MMT)
150
358
0
150
300
450
May 2013APSEZL Company Presentation
Adani Ports: Key Business Highlights
8
Unique Asset Profile
Fully Integrated Services Provider
Strategic Location
Extensive Track Record of Project Execution
Diversified Cargo – Strong Relationships
Robust Financial Performance
2
6
1
3
4
5
May 2013APSEZL Company Presentation
India’s Gateway for International Trade
Evolved as India’s Leading Multi Terminal Port Developer and Operator
3 Ports having 12 terminals with 31 berths *(Mundra, Dahej & Hazira) 2 inland container depots at Patli (Punjab) and Kishangharh
(Rajasthan) in the north of India
Terminals : Operational
1 coal handling terminal with 1 berth at the Mormugao Port 2 bulk terminals with total 5 berths at the Vizag Port and Kandla Port
Terminals: Being Developed
6 Bulk Terminals 4 Container Terminals 2 Single Point Mooring3 Coal Handling Terminals
Energy Gateway
Crude – Crude Products Imports
2 operational single point mooring facilities. Potential to develop Single Point Mooring facilities at Mundra Port
Potential to develop a Liquefied Natural Gas terminal at Mundra Port
Coal: Feeding Power Projects Across the Hinterland
Operational dry bulk cargo facilities at Mundra, Dahej and Hazira Port Constructing coal handling terminals at the Mormugao & Vizag Port
and a dry bulk terminal which can handle coal cargo at the Kandla
World Class Infrastructure leading to robust growth…
52 66
91
0
50
100
FY 11 FY 12 FY 13
MMTPA
Volume (consolidated)
Sources Ministry of Shipping (GoI), Transport Research Wing, Indian Ports Association
9Notes1 Ranking among Indian ports2 *: 2 single point mooring facilities
Unique Asset Profile1
19.7 28.7 35.8 39.7 51.4 64.082.1
0
25
50
75
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY13
Growth at Mundra
Cargo (MMT)
10th
Rank1
2nd
Rank1
May 2013APSEZL Company Presentation
Unique Asset Profile – Support Infrastructure
Availability of Adequate Draft• Deep water ports with drafts ranging from 17.5 – 20 Mtrs at Berth and 32 Mtrs at SPM at Mundra and 17 Mtrs
at Dahej and Hazira• Accommodates capesize container cargo vessels of up to 10,000 TEUs, and • Very large crude carriers (“VLCCs”) and ultra-large crude carriers (“ULCCs”) of up to 360,000 DWTs
Port Infrastructure: Developing of Ports across Greenfield, Brownfield and Terminals
1
Supporting Facilities
• Mechanized material handling infrastructure including:
– Mobile harbor cranes, conveyor systems, port crafts and other equipments and back-up and storage areas
for dry and liquid bulk, container and crude oil cargo
– Two inland container depots at Patli and Kishanghar in the north of India, which strategically provide an
outreach to the land locked northern hinterland of India
– 6,641 hectares SEZ- Opportunity to expand storage and back up area
• Fleet of 13 dredgers capable of doing capital dredging across various marine conditions• 22 tug boats which are used to maneuver vessels inside out the port terminals
Port Craft and Mechanization
• Energy efficiency in port area - Efficient lighting system against conventional lighting• Electrification of container cranes - Converting Diesel RTG to Electric RTG• Alternative fuel programme - Use of solar power against electricity• Application of New technology to reduce emissions - Use of power generated through Regenerative crane
systems
Environmental Compliances & Eco Friendly Initiatives
10
May 2013APSEZL Company Presentation
Integrated Services Provider
Anchorage Pilotage Tug Pulling Berthing HandlingInternal
TransportStorage & Value Add
Evacuation(Rail-Road)
• Alignment of interests facilitates end to end provision of fully managed services
• Elevates the value chain resulting into reduced operating cycle of the customer
• Additional Revenue streams with reduced revenue leakage to third parties
Advantages of Integration
• Marine services: Providing services for pilotage, berthing and de-berthing of vessels; fleet of 22 tug boats
• Handling services and storage: Mechanized diversified cargo loading & unloading facilities; cranes, un-loaders/loaders, conveyors, closed as well as open storage area for various kind of bulk cargo, tankages for liquid cargo, various container freight stations in and around ports
• Intra-port transport services:
• Conveyors and trucks, to transport dry bulk to dedicated storage areas
• Network of Pipelines to transport liquid cargo from the vessels to storage tanks
• Rail connectivity till the berth at container terminals for faster evacuation
11
2
May 2013APSEZL Company Presentation
Strategic Location
Location Advantages:
• Close to one of the major global maritime trade routes
• Bridging the resource rich Middle East, Africa and Australia, and
regions with high resource demand and consumer exports in East and
North Asia and Europe
• Assets positioned on western and eastern coast of India to
strategically service the land locked hinterland.
• Ample land available for development of incremental storage and
evacuation infrastructure
Marine Advantages:
• Ability to berth larger vessels, deeper natural drafts with lesser
maintenance dredging requirements
Connectivity Advantages:
• Low transit time to reach northern, western & central hinterland
– Rail routes traverse through the sparsely populated desert regions of
Kutch and Rajasthan
– Well connected rail and road infrastructure to Mumbai & Delhi, key
industrial hubs of India.
3
12
Automobile
Chemicals
Engineering
Pharmaceuticals
Servicing key industrial sectors around the ports, terminals and ICDs
Natural Advantages at Adani Ports
Agriculture
Servicing Northern Western & Central Hinterlands
May 2013APSEZL Company Presentation
3
Extensive Evacuation Infrastructure
13
Mundra HaziraDahej
• A 48” pipeline connecting to petroleum refinery in Panipat – distance 1194 Kms
• A 1,017 Kms crude oil pipeline connecting Mundra to a petroleum refinery at Bhatinda
• A 1,036 Kms petroleum product pipeline connecting Mundra to Bahadurghar
Pipe(mundra)
• Dedicated six-lane approach road
• Linked to National Highway 8A and National Highway 15 and state highways
• National Highway 6 is a two-lane road that originates at Hazira and connects to National Highway 8
• Well connected through National Highway 8
Road
• Privately owned 86 kms double track connecting at Adipur-Mundra
• Owns a 20% equity interest in broad gauge track by Kutch Rail Co. Ltd.
• Situated c. 22 kms from Surat
• Surat is located on the broad gauge double-track rail route between Delhi and Mumbai
• Railway station two kms away from the Dahej Port
• Own 10.5% equity stake in 62.4 kms broad gauge railway to Bharuch
Rail
Connectivity Edge: The APSEZL Advantage
May 2013APSEZL Company Presentation
Connectivity Edge: Rail Infrastructure - Mundra 3
Origin Destination Distance (Kms)
Advantage Mundra*(Kms)
Mundra- Delhi 1,105 -
Mumbai- Delhi 1,350 245
Pipavav- Delhi 1,191 88
Mundra- Bhatinda 1,128 -
Mumbai-Bhatinda 1,536 408
Pipavav-Bhatinda 1,377 249
Railway Line Mundra(kms.)
Mumbai/JNPT (kms)
ICD Tughlakabad (New Delhi) 1,276 1,513
ICD Sabarmati (Ahmedabad) 367 491
ICD Ludhiana (Ludhiana) 1,551 1.895
ICD Kanakpura (Jaipur) 920 1,150
ICD Dadri 1,223 1,460
Bombay
Bathinda
Mathura
Delhi
Vadodara
Nagda
Kota
RewariBikaner
JothpurLuni
Bhildi
Mundra Kandla
ViramgamA’Bad
MehsanaPalanpur
Marwar
AjmerJaipur
Sources Indian Railways
14
Lower Railway Lead distance to Several Container Depots Shorter Route Compared to other Ports in the region
Rail Linkages connecting to Mundra Port
*: Distance Advantage from Mundra Port vs. other Ports
• 86 km private railway line from Mundra Port to
Adipur
• Developed railway linkages traversing through entire
SEZ area in Mundra
• Doubling of the Rail line connecting Mundra-Adipur
completed
• Double-stack container rakes operating till northern
hinterland
May 2013APSEZL Company Presentation
3
15
Crude Oil pipelines :
• A 1,194 Kms crude oil pipeline connecting Mundra to a
petroleum refinery at Panipat
• A developed 1,017 Kms crude oil pipeline connecting
Mundra to a petroleum refinery at Bhatinda
Petroleum Product Pipeline:
• A developed 1,036 Kms petroleum product pipeline
connecting Mundra to Bahadurghar
• Dedicated 6 lane and 4 lane roads connecting the port to
the state as well as national highway grid
• Developed flyovers and rail over-bridge to provide
uninterrupted and speedy and road transportation
• Truck Loading Facility through silos and hoopers
BhatindaPanipatDelhi
MehsanaMundra
Pipeline Connectivity
Connectivity Edge: Roads and Pipeline Infrastructure
Pipeline ConnectivityRoad Infrastructure
May 2013APSEZL Company Presentation
Extensive Track Record of Project ExecutionTimeline of Projects
4
2005•1st container
terminal at Mundra with 2 berths
2001•1st multi purpose
terminal at Mundra with 4 berths
2001 2005 2006•2nd multi purpose
terminal at Mundra with 4 berths
2006 2010•Mundra starts
handling RoRo vessels to export automobiles
2010 2011•One of the largest
coal import terminal commences at Mundra
2011 2011•Dry Bulk terminal at
Dahej with 2 berths operational
2011
2003•Offshore SPM for
crude handling
2003 2008•2nd container
terminal at Mundra with 2 berths
2008 2008•Mundra handles
Bulk, Crude, Containers
2008 2013•1st multi purpose
terminal at Hazira with 3 berths
2013 2013•1st container
terminal at Hazira with 2 berths
2013
2001 20052003 2008 2010 20122002 2004 2006 2007 2009 2011 2013
12 Operational Terminals
31 Berths 86 kms of private railway line
3 Terminals- Under Development
16
Having constantly added capacity over a decade, APSEZL has emerged as India’s largest private port player with key assets on western coast of India
May 2013APSEZL Company Presentation
19.7
28.7
35.839.7
51.4
64.0
82.1
0
15
30
45
60
75
90
FY07 FY08 FY09 FY10 FY11 FY12 FY13
Diversified Cargo Base & Strong Customer Relations
• Established relationships with customers between eight to ten
years
• High credit quality customer base across various cargo segments
• Pursuing increase in cargo volumes with customer commitments
through a mix of long-term and short-term agreements
• Long-term agreements with customers and end users across a
variety of services and cargos within our port services
– Thermal coal fired power plants with combined installed
capacity of > 8,620 MW
– Crude oil handling agreements with petroleum refineries
located at Panipat in Haryana and Bhatinda in Punjab
– Petroleum products handling agreement with petroleum major
– Automobile handling agreement with one of the largest
automotive companies in India
5
Cargo handled at Mundra in MMT/ PA
17
Banking on Strong Relationships…
Multi Cargo Terminals across the Western Coast Line
Contracted and sticky cargo contributing to growth
Dry Bulk Liquid Containers Crude
Mundra
Dahej
Hazira
Kandla
May 2013APSEZL Company Presentation
108155
228283
388
612
706
0
250
500
750
FY07 FY08 FY09 FY10 FY11 FY12 FY13
Figures in USD(1)
Figures in Mn except for EPS
Consolidated Total Revenues 2 EBITDA Profit After Tax
Earnings Per Share (Basic, INR/Share)(4) Net-Worth Net Assets(3)
CAGR (2007-2013): 37% CAGR (2007-2013): 42% CAGR (2007-2013): 43%
CAGR (2007-2013): 41% CAGR (2007-2013): 31% CAGR (2007-2013): 35%
Notes1 Convenience Exchange rate of US$1 as on 31st March 2013 = INR54.39 from RBI2 Including other income3 FY12 includes Abbot Point which is classified as discontinued operations for FY134 Our Company split the face value of its shares from Rs. 10 to Rs. 2 in the fiscal year 2010
Robust Financial Performance*
18
6
* Financials for FY07-10 are from respective Annual Reports for each financial year; Financials from FY11-13 are based on revised schedule 6 format and sourced from RHP
59
104147
186
259
391
485
0
100
200
300
400
500
FY07 FY08 FY09 FY10 FY11 FY12 FY13
34 39
80
124
169
203
298
0
50
100
150
200
250
300
FY07 FY08 FY09 FY10 FY11 FY12 FY13
1.0 1.1
2.2
3.4
4.6
5.5
8.1
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
FY07 FY08 FY09 FY10 FY11 FY12 FY13
278
636702
818
965
1,3001,401
0
500
1,000
1,500
FY07 FY08 FY09 FY10 FY11 FY12 FY13
442674
9521,244
1,483
3,852
2,628
0
1,000
2,000
3,000
4,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13
May 2013APSEZL Company Presentation
Become Gateway for Energy Resource Imports to India
Focus on Increasing Margins from OurOperational Facilities
Facilities in operation are positioned in West and South Gujarat to service northwest, west and central India
Developing terminals at the Mormugao Port and the Vizag Port to expand presence to southwest and southeast India
Growing presence on East coast with Vizag terminal
Growth on East coast through organic and inorganic means
Mundra already the enegry gate way fro India.
Focusing on coal and crude oil cargo services and providing connectivity to power plants and petroleum refineries
All adani ports equipped to handle coal cargo
For crude oil cargo, two operational single point mooring facilities and have the potential to develop two additional single point mooring facilities at the Mundra Port
Potential to develop an LNG Terminal
Establish Pan-India PresencePursue Benefits of Both Long-term and Short-term Arrangements with Customers To enhance existing long term as well as short term customer
relationships for steady mix of contracted and spot cargo
Try to convert short and medium term arrangements into long term arrangements
Plan to continue to increase the amount of cargo pursuant to these arrangements by increasing our capacity and continuing to refine our operating procedures
Offer Customers Multi-cargo Ports and Related Infrastructure
Positioned growth plans to accommodate the diversity of throughput by developing multi-cargo ports and infrastructure to cater to the diverse cargo needs of the customers
1
2
5
3
4 Focusing on revenue maximization and cost optimization
Focus on providing various value add services at the port to enhance the revenue horizon above marine, handling, storage and evacuation incomes.
Implementing globally benchmarked operational practices for reduction in operating costs
Use of information technology and mechanization at port facilities to reduce turnaround times, pilferage and wastage and resulting into minimal human intervention.
APSEZL
Adani Ports: Growth Strategies
19
May 2013APSEZL Company Presentation
Adani Ports: The Advantage
20
Strategic Location
• Resource rich hinterland• Close proximity to the global trade route• Naturally deep water ports, to berth larger vessels• Ports located near sparsely located
Fully Integrated Service Provider
• Integrated facilities with seamless services (marine services, stevedoring, handling transport, storage, value addition and evacuation)
• No revenue leakage; reduction in operating cycle and optimization of revenue
Strong Financials
• Consistent growth in the top-line and bottom-line at the flagship port of Munrda • Contribution from Subsidiaries: Dahej and Hazira operational• Abbot divestment to improve the gearing on a consolidated level
Seamless Project
Execution
• Comfortable headroom to cater to future cargo growth• Planned capacity addition over a period of time • Good record of cargo handling and evacuation
Robust Diversified
Cargo
• Capability to handle various kinds of cargo including Bulk, Containers Crude etc.• Long term port service agreements for key cargo segments such as coal, crude, petroleum products,
automobiles• Relationships with various customers for steel, fertilizers, agro commodities etc.
Unique Asset Profile
• Natural draft availability (16 metres+), naturally placid waters and long waterfront of 40 km at Mundra; • Ability to handle Super Capesize Bulk vessels, Very Large Crude vessels, upto 10000 TEUs Container Vessels• Dahej and Hazira acting as twin ports to provide multi cargo facilities to central India. • Well connected to hinterland – owner of 86 Km private railway line
• Amongst the few End to end logistics service provider in India
May 2013APSEZL Company Presentation
Thank You