Allcargo

Transcription

Allcargo
Analyst/ Investors Meet
25th May, 2015
India’s 1st Multinational Logistics Company
Multimodal Transport
Operations (LCL+FCL)
Container Freight
Stations / Inland
Container Depots
Equipment Rentals
Project Logistics
Contract Logistics
Coastal Shipping
 Amongst top 2 LCL consolidators in the world, Among only 3 companies with owned global network
 One of largest CFS operators in India, Only company having significant presence at all 3 major
container ports of country
 Amongst leading P&E players in India
 Market leaders in coastal shipping and positioned to be active in inland waterways
 Strong management team with experienced industry professionals
Vision: Charting the Growth Plan
Largest LCL consolidator in the world by far
India’s largest integrated logistics service
provider
US$ 2 Billion Company by 2020
Achieve consistent ROCE of 25%
Financial and Business
Performance – FY15
Consolidated Financials
Operating Revenues (INR Cr)
16%
5,629
4,851
o 16% YoY growth in Operating Revenue
3,926
o Growth driven by all business verticals
o Our business - global in nature
FY13
FY14
FY15
Consolidated Financials
EBIDTA (INR CR) and Margin
21%
o 21% YoY growth in EBITDA
475
356
o Margin at 8.4% - improvement of
391
38 basis points
9.1%
8.1%
8.4%
o Focus on margin improvement
going ahead - Initiatives across
FY13
FY14
FY15
businesses - already in place
Consolidated Financials
PAT (INR Cr) and Margin
o Over 35% YoY growth in PAT
35%1
170
240
 Post adjustment of INR 28 Cr in
FY14 - one time amortization of
149
goodwill net of taxes
4.3%
3.7%1
4.3%
o Margin at 4.3% - improvement over 60
FY13
FY14
FY15
basis points1
o EPS at 19.0 – YoY growth of 61%
1
Growth and PAT Margin based on normalized PAT for FY2014 after adjusting for onetime goodwill amortization, net of taxes, arising due to merger of
MHTC logistics
Consolidated Balance Sheet
Net Debt (INR Cr)
Networth (INR Cr)
INR 115 Cr
INR 272 Cr
1,908
693
1,793
495
1,586
FY13
421
FY14
FY15
FY13
o
Networth improved by INR 115 Cr
o
Net Debt reduced by INR 272 Cr
o
Net Debt to Equity improved to 0.22
FY14
FY15
Return on Capital Employed1
19% Without goodwill
14%
12%
With goodwill
13%
12%
9%
FY13
FY14
o Total Capital Employed – INR
2,653 Cr
o ROCE with goodwill at 13%
o ROCE without goodwill at 19%
1
FY15
ROCE
Without
Goodwill
With
Goodwill
MTO
(LCL+FCL)
49%
16%
CFS
30%
26%
P&E
9%
9%
Return on capital employed calculated as PBT + Interest Cost / Average Capital Employed
Outperforming Global MTO (LCL+FCL) & Local CFS markets
CFS Volume Growth – FY152
MTO (LCL+FCL) Volume Growth - FY15
Allcargo
Port
Local CFS Market
30%
26%
9%
29%
14%
8%
5%
4%
9%
7% 6%
1
LCL+FCL
Organic &
Inorganic
Combined
LCL+FCL Only
Organic
Global
Container
Market
JNPT
Chennai
Mundra
o Total volume growth at 26%, Organic
growth at 9%
o Significantly outperforming both - Port and
Local CFS markets at all locations
o Outperforming global ocean freight
market growth of 5%
o Adding new customers
o Focus on penetration into high potential
markets
1
(1%)
Industry Data and Management Estimate; 2 Sources: IPA, Adani Ports, Industry data
o Increasing wallet share
MTO (LCL+FCL) Business Performance and Financials
Global Volumes (000’s TEUs) Exports + Imports
Revenues (INR Cr)
15%
26%
422
335
285
FY13
4,149
4,774
3,192
FY14
FY15
FY13
FY14
FY15
o 26% YoY growth in volumes
o 15% YoY growth in revenue
o Outperformed global container
o Revenue not in line with volume
market of 5%1
growth as it is dependent on Freight
rates, which is pass-through
o Growth driven by markets of
Germany, India, UK, US, China and
South East Asia
1
Industry Data and Management Estimate
o Margins more important – GP margin
intact
MTO (LCL+FCL) Business Performance and Financials
EBITDA (INR Cr) and Margin
21%
45%
220
165
5.2%
FY13
1
Without
goodwill
Return on Capital Employed1
49%
42%
182
4.4%
FY14
With goodwill
4.6%
20%
FY13
FY15
16%
16%
FY14
FY15
o 21% YoY increase in EBITDA
o ROCE over 40% on consistent basis
o Margin improvement by 22 bps
o Continuous focus on improving
ROCE
Return on capital employed calculated as PBT + Interest Cost / Average Capital Employed
CFS Business Performance and Financials
Volumes (000’s TEUs)
Revenues (INR Cr)
28%
17%
292
259
250
FY13
FY14
FY15
310
315
FY13
FY14
403
FY15
o 17% YoY growth in volumes
o 28% YoY growth in Revenue
o Outperformed port and local CFS
market
o Focus on high margin mix of cargo –
o Growth driven by CFS at Mundra and
JNPT
ODC/ Flat racks, new customers and
increasing wallet share
CFS Business Performance and Financials
Return on Capital Employed1
EBITDA (INR Cr) and Margin
16%
Without goodwill
130
109
30%
29%
112
26%
35.1%
35.5%
32.5%
26%
26%
23%
FY13
FY14
FY15
FY13
FY15
o 16% YoY growth in EBITDA
o ROCE increased to 30%
o Margin decline on account of moderate
reduction in dwell time and one time
operational expense
o Continuous focus on improving ROCE
o JNPT 2 CFS growth in line with expectation
1
FY14
With goodwill
Return on capital employed calculated as PBT + Interest Cost / Average Capital Employed without Goodwill
P&E Business Performance and Financials
Revenues (INR Cr)
EBITDA (INR Cr) and Margin
19%
25%
530
454
FY13
423
FY14
FY15
152
128
128
28.2%
30.3%
28.7%
FY13
FY14
FY15
o 25% YoY growth in Revenues
o 19% YoY growth in EBITDA
o Business revival - demand coming from
renewable energy, refineries and coastal
movements
o Consistent Margin over 28%
P&E Business Performance and Financials
Return on Capital Employed1,2
Asset Utilization - Cranes
15%
79%
79%
9%
7%
70%
FY13
FY14
FY15
o Increase in asset utilization
o Q4FY15 utilization at 90%+ and continue
in Apr-15
1
FY13
6%
FY14
FY15
FY16 E
o ROCE at 9% without considering
residual value of equipment (estimated at
over INR 650 Cr as against book value –
INR 412 Cr)
Return on capital employed calculated as PBT + Interest Cost / Average Capital Employed; 2ROCE in FY14 after adjusting for onetime goodwill amortization,
net of taxes, arising due to merger of MHTC logistics
Way Forward…
MTO (LCL+FCL) Growth Strategy- Initiatives along “Three Horizons”
Horizon 3
• Develop “LCL returns” as a
large scale strategic product (etailing)
Horizon 2
Horizon 1
• Capture growth momentum
in key markets like: China,
South East Asia, USA, Latin
America, Africa
• M&A / Bolt-on Acquisitions:
Achieve leading position on
selected trade lanes
• “NextGen” operations system
towards full digitalization to
enhance customer experience
• Further enhanced
operations system for
additional efficiency gains
• Continue to develop “FCL”
as a strategic core product
• Completion and roll-out of
new operations system
Time
“Extend and defend core
businesses”
“Build emerging businesses”
“Create Viable Options”
MTO (LCL+FCL) Strategy – Multi Dimension Focus
Trade Lane
Management
Continue M&A
Strategy
Margin
Protection
Operational
Efficiency
FCL / Other
Opportunities
CFS Strategy: Targeting New Shores
Consolidate
Current
Position
Target New
Locations
Synergies
from MTO
(LCL+FCL)
Target New
Segments
P&E Strategy: Engaging the Customer Creatively
Pursue Asset
Light Model
Focus on
Capacity
Utilization &
Higher Margin
Secure Longer &
Larger Contracts
Successful
Investments
Innovative
Logistics
Solutions
Management Team
MTO (LCL+FCL) Management Team
Shashi Kiran Shetty
Executive Chairman
Adarsh Hegde
Executive Director
Marc Stoffelen
Executive Director
Suryanarayanan S
Executive Director
Martin Mueller
Chief Commercial &
Strategy Officer
Simon Bajada
Regional CEO – NWEurope & MED
Shanta Martin
Regional CEO – ISC,
GCC & Africa (SE)
Thomas Heydorn
Regional CEO – CNE
Europe
Uday Shetty
Regional CEO - APAC
Tim Tudor
Regional CEO LATAM
John Abisch
Regional CEO - USA &
Central America
Ajit Jangle
Global HR & IT Head
India Management Team
Armin Kalyaniwalla
CEO - Project Division
Adarsh Hegde
Executive Director
Umesh Shetty
Executive Director
Jatin Chokshi
Chief Financial Officer
Ajit Jangle
Global HR & IT Head
Ashok Shrivastava
CEO – Shipping Division
Sandeep Bakshi
COO – Shipping Division
Balaji V
CEO - Contract Logistics
New Business Opportunities
Contract Logistics: Tapping the Colossal Territory
The Opportunity
 One of fastest growing sub-sector of logistics in India
 Implementation of GST - create significant opportunities
Advantage - Allcargo
 Allcargo - recently ventured into contract logistics - has built attractive
customer universe in short span of time
 Highly respected brand in logistics - in India and Globally
Way ahead…
 Aim to strategically expanding through both organic and inorganic growth
models
 Develop unique set of skills – In-plant logistics, Hospital logistics, Reverse
logistics, Chemical, Spare parts and Pharma After Sales management
Coastal Shipping: Creating the Market
The Opportunity
 Low share of coastal shipping in India - At 7%
 Govt. promoting coastal shipping by providing privileges as well as
incentives
Advantage - Allcargo
 Allcargo is amongst very few companies developing coastal shipping
business in India
 Highly synergistic business model with P&E division
 Fleet of 3 owned mid-sized vessels and 1 chartered vessel, serving all
major and minor ports in India
Way ahead…
 Aim to diversify into Containerized services and expand in short sea and
inland waterway trade
 In process of acquiring two vessels against contract for 2+2 years from
MNC
 To expand in ship chartering business
New Growth Areas: E-Commerce Logistics
 Indian E-Commerce - reached US$ 3.5 Bn in 2014
CAGR growth of 34% since 2009
 E-commerce - less than 1% of overall retail market in
India - expected to grow by 50% CAGR by 2020
 Logistics in developing economies, including India biggest barrier to E-Commerce growth
 Key to Success - Efficient last-mile network to ensure
timebound delivery and return management
 Up-stream infrastructure – needs to be built with
strategic location choices of fulfillment centers
proximal to delivery modes
Thank You!