adani ports & sez limited - i-maritime · adani ports & sez limited company presentation...

May 2013APSEZL Company Presentation

Adani Ports & SEZ Limited

Company PresentationMay 2013


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


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


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


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


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


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


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


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


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


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


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


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


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


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


Extensive Track Record of Project ExecutionTimeline of Projects

4

2005•1st container

terminal at Mundra with 2 berths

2001•1st multi purpose


2001 2005 2006•2nd multi purpose


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


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


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


108155

228283

388

612

706

0

250

500

750


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


34 39

80

124

169

203

298

0

50

100

150

200

250

300


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


278

636702

818

965

1,3001,401

0

500

1,000

1,500


442674

9521,244

1,483

3,852

2,628

0

1,000

2,000

3,000

4,000



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


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


Thank You

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