Investor Presentation
Thinking big
Doing better July 2018
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2
Contents
Adani Group
Company Profile
Others
3
Nation Building - Responding strategically to some of India’s profound challenges
Rising Energy Needs Growing Infra Requirements Increasing Power Demand Food Safety
• Indian economy to remain • 90% of the volume and 72% • ~70% of electricity is • India has among the highest
heavily reliant on Coal of total value of country’s generated from thermal food losses in the world
international trade is power which will continue
• The key driver of coal through maritime transport over the next two decades • Stagnant oil seed
demand is the power sector production and rising edible
• Shipping Ministry estimates • In 2015, as per IEA, World oil demand is increasing
Indian Ports will need to Energy Outlook, over 240 import dependency
have capacity to handle 2.5 million Indian citizen had no
bn MT cargo by 2025 access to electricity
• Resources: Obtaining coal • Logistics: A large network • Energy: Conventional and • Agri: Agri products &
from mines and trading; in of ports, Special Economic Renewable Power infrastructure
future it will also include oil Zone and multi-modal generation, transmission,
and gas. logistics – rail and ships Solar PV manufacturing and
• Adani’s coal operations will gas distribution
account for ~20% of India’s • Adani Ports will handle ~20% • Adani’s power generation will • Adani will cater to 25% of
projected coal requirements of the total cargo at Indian represent ~5% of India’s India’s edible oil demand by
by 2021 Ports by 2021 projected capacity by 2021 2021
4
The Making of India’s Leading Infrastructure Group
Coal Trading
Started a Commenced Among the largest
(1999) Coal traders in the
Commodity world
Trading ICM
Gautam Adani
Business Awarded India’s
Chairman 1st MDO
(2006)
Acquired Carmichael
Adani Acquired Bunyu coal mine Australia
Coal Mine (2010)
Enterprises listed
Indonesia (2008)
(1994) Mining operations
in India, Indonesia Coal Mining
& Australia
Mundra Port
(MDO)
Commenced
1995 (1995)
50: 50 JV with
Wilmar International Commissioned
(2000) Solar PV plant at Mundra
(2017)
Adani Power
1st CNG Station
Adani listed (2009)
Ahmedabad Awarded Grain Storage
Ports
(2004) business from MP state
listed
(2007)
“Fortune”
Largest Food
2009 Commissioned first 1st transmission FMCG brand in
line India
unit (2009)
commissioned
(2009) Worlds Largest JV with
Single location Indian Oil Agro
Acquired Solar Power Plant Corporation
Presence
Dhamra Port Listed (2015) (648 MW) (2016) (2014)
Acquired 1,200 MW in 13 cities
(2014)
Udupi Thermal Power
plant (2015)
Acquired GMR and
Reliance Transmission Project pipeline To be
Lines (2016) > 2GW listed
(2018)
2018 Operates 10
Bangladesh PPA
ports/terminals
Signed (2017) To be
BSES acquisition (2017)
listed
(2018)
Adani Gas
Adani Green Energy = will be demerged from AEL w.e.f from 1st April 2018 FMCG = Fast-moving consumer goods
All business in green colour in Adani Enterprises Limited 5
Adani Group – At a Glance
Largest private sector ports, thermal power, transmission, renewables and coal trading player in India
180 MMT ~15% of India’s EXIM trade 10,440 MW ~5% of India’s Thermal Generation Capacity
2,500 MW ~4% of India’s Renewable Generation Capacity 11,890 Ckt Km ~3% of India’s Transmission Network
–Integrated coal –India’s largest –India's largest private –India’s largest –Renewables –Leading Private
management commercial ports thermal power private transmission Capacity: 1.9 GW Sector CGD
operations operator and generation Co with Co operational, 1.2 GW Company in India
–Over 50% market integrated logistics installed capacity of –Installed Capacity under pipeline –Focussed Pure Play
share in coal (66 Company 10,440MW 5,000ckt KMs; –Solar: 90%, Wind: Gas Marketing and
MTPA) –Market share of ~15% –A national record: doubling by 2019 10%(3) Distribution
–Leading Coal MDO in India’s cargo Mundra thermal plant –SPA signed in Dec –Geographically company
player in India –10 Ports across West running continuously 2017 to acquire BSES diversified portfolio –Operational in 4
and East Coast for 600 days Electricity cities
–Agro commodities and –Tamil Nadu 648 MW
storage, ‘Fortune’ - –Multi-modal logistics –Signed PPA with Govt distribution (c. 3 mn : World’s largest –IOAGPL – 50:50 JV
India's leading cooking of B’desh in 2017 for consumers) single location solar with Indian Oil
–Mundra SEZ (8481 1.6 GW ultra super-
oil brand ha) –Rated Investment plant Corporation with
critical thermal power Grade by Moody’s, operations in 9 cities
–India’s largest solar –Rated Investment project (COD 2022) –Quality
panel and cell S&P, Fitch Counterparties:
Grade by Moody’s,
manufacturer (1.2 GW S&P, Fitch SECI – 28%,
p.a.)
NTPC - 17%
Revenues EBITDA Revenues EBITDA Revenues EBITDA Revenues EBITDA Revenues EBITDA Revenues EBITDA
₹ 37,984 Cr ₹ 3,002 Cr ₹ 12,334 Cr ₹ 8,073 Cr ₹ 21,093 Cr ₹ 6,174 Cr ₹ 3,239 Cr ₹ 2,937 Cr ₹ 1,078 Cr ₹ 857 Cr ₹ 1309 Cr ₹374 Cr
Total Debt Total Assets Total Debt Total Assets Total Debt Total Assets Total Debt Total Assets Total Debt Total Assets Total Debt Total Assets
₹ 17,915 Cr ₹ 43,615 Cr ₹ 21,433 Cr ₹ 47,375 Cr ₹ 52,835 Cr ₹ 69,523 Cr ₹ 10,009 Cr ₹ 17,265 Cr ₹ 9,280 Cr ₹ 13,280 Cr ₹348 Cr ₹1,311 Cr
Market Cap: ₹ 14,776 Cr Market Cap: ₹ 76,731 Cr Market Cap: ₹ 7,039 Cr Market Cap: ₹ 16,634 Cr Market Cap: 4,337 Cr Listing Oct 2018
Operational
Massive Unmatched
excellence Track record of Experienced management
scale execution
Focus on integrating Expertise in regulatory
Largest in Greenfield assets
productivity, acquisitions environment in India
class in record time
lowest cost
Note 1: All the financials are from respective companies’ Annual Financial Statements dated 31 March 2018
2: Market cap is as of 18th June 2018 3: Mix as of March 31, 2018 6
Adani Group : Financial Snapshot* and Stock Price Movement
16,953 39,904 73,640 75,729 5,546 18,218 21,043 1,75,597 1,91,058 1,151 19,490 38,310 45,106
474 1,06,997
5,534
4% 4% 4% 4%
11% 11% 7% 6% 8% 3%
27% 14% 8% 13%
8% 8%
32% 28% 31% 2%
35% 51% 48%
41%
69% 29% 34% 65%
13% 16% 46% 47%
38% 25%
96%
81% 24% 25% 23%
37% 39%
52% 50% 49% 44% 39%
31% 34% 28% 35% 35%
28% 27%
17% 14%
FY 2007 FY 2012 FY 2017 FY 2018 FY 2007 FY 2012 FY 2017 FY 2018 FY 2007 FY 2012 FY 2017 FY 2018 FY 2007 FY 2012 FY 2017 FY 2018
AEL APSEZ APL ATL AGEL AEL APSEZ APL ATL AGEL AEL APSEZ APL ATL AGEL AEL APSEZ APL ATL AGEL
Adani Enterprises Adani Ports and SEZ Adani Power Adani Transmission
34%
133%
394%
16%
16%
16%
Adani Enterprises NIFTY 50 Adani Ports & SEZ NIFTY 50 Adani Power NIFTY 50 S&P BSE POWER Adani Transmission NIFTY 50
•
•
Includes listed Group Companies
Stock Price Movements are until 31-03-2018
7
Adani Enterprises: a Diversified Incubator
8
Thinking Big, Doing Better
9
Adani Enterprises : Evolution
2018
• Demerger of Adani Green Energy & Adani Gas
2010
• QIP of $ 850 mn
• Acquired Carmichael Coal Mine
• Won First Coal MDO contract
2007
• APSEZ IPO subscribed 116x
• FCCB Issue of $ 250 mn
2017
• Solar Mfg plant
2001 commissioned
• Adani Gas Started
2015
1996 • Demerger of APSEZ, APL & ATL
• Bonus Issue of 1 : 1
2009
• APL IPO subscribed 21x
• Bonus Issue of 1 : 1
2006
Nov-1994 listed on • Stock Split : Ratio 10 : 1
BSE & NSE @ Rs
150/share
Subscribed 25x 1999
• Signed JV with Wilmar, Singapore
• Bonus Issue of 1 : 1
10
AEL: Corporate Structure
Promoters
75%
AGL AWL
Adani Global MSPVL
(City Gas (Edible Oil & Others
Mauritius (Solar Mfg)
Distribution) Food)*
100% AALL/AAFL
100% 100%
(Agro Storage)
AGPTE AGFZE
Singapore Dubai 100% Defence
100%
Road, Metro &
100% 100% 100% 100%
Railways
AMPTY PTAG ASPL ABPL
Carmichael Bunyu Coal
Shipping Bunkering 100% Cement
Coal Mine Mine
(Singapore) (India)
(Australia) (Indonesia)
100%
Water
Consolidated Financials FY18 (₹ in Crs)
Parameter Total Coal MDO ICM AGL MSPVL AALL+AAFL Others AWL*
Op. EBIDTA 3,002 466 1,261 374 328 100 473 1,010
FY2015
10000 Others,
ICM, 12% 6%
APSEZ,
31%
APL, 51%
1000
FY2018
100
ICM
9%
Coal MDO 13%
1997
1998
1994
1996
1999
2002
2001
2007
2003
2005
2008
2014
2000
2004
2006
2009
2016
2010
2011
2012
2013
2015
2017
Others
5%
12
Adani Enterprises : Experienced Management Team
Mr Gautam Adani, Chairman & Founder - Adani Group Mr Rajesh Adani, MD – Adani Enterprises Ltd
Mr Adani has more than 33 years of business He has been associated with Adani Group since its
experience. His journey has been marked by his inception. He is in charge of the operations of the
ambitious and entrepreneurial vision, coupled with Group and has been responsible for developing its
great vigour and hard work. This has not only enabled business relationships. His proactive, personalized
the Group to achieve numerous milestones but also approach to the business and competitive spirit has
resulted in creation of a robust business model which is helped towards the growth of the Group and its various
contributing towards building India. businesses.
Mr Rajeev Sharma, CEO – Adani Gas Ltd Mr T K Kannan, CEO – Adani Wilmar Ltd
Mr Sharma has over 38 years of focused experience in Mr Kannan has been active in the group since 1999. He
Oil & Gas industry especially natural gas pipelines and has about 40 years of experience in the Edible Oil
city gas distribution networks. He has been with Adani Sector. Out of which the last 20 years he has been with
since 2003 & responsible for Group’s initiatives in city Adani Wilmar Ltd working in Singapore & India. With his
gas distribution. He was associated with GAIL for 19 rich experience he has been handling the Edible Oil
years in various capacities. Mr Sharma was the business and Co-ordinating, Trading, Marketing &
founding MD of Indraprastha Gas Ltd and has Manufacturing since inception. Prior to joining Adani
implemented the prestigious CNG Program in Delhi. Wilmar, he worked 20 years for Godrej Soaps Ltd.
13
Adani Enterprises : Consolidated Historical Financials
Total Debt / EBITDA 6.9x 6.7x 5.7x businesses from challenging gestation to
Note 1: Excludes Adani Wilmar (50% JV) now consolidated as per equity method per IndAS. defence, roads, cement and water
Note: 1. Per Indian Accounting Standard (IndAS) 2. Note: EBITDA = PBT + Depreciation + Net Finance Costs 3. Debt figures exclude Intra-Group Borrowings
14
AEL: India Coal – Coal MDO & ICM
1
5
Global Coal: Demand to remain stable, with India contributing significantly towards
imports & Australia towards exports
-67
+40
~+95 +69
+21
-67
-3
+130
5% 29%
2017 2035
Coal Volumes (Mt) Indonesia Australia Others
2,500 Million toe Coal Consumption by Region 5.0% Coal Consumption Growth and Regional Contributors
4.0%
2,000 China India OECD Other Asia Other
3.0%
1,500 2.0%
1.0%
1,000
0.0%
500
-1.0%
- -2.0%
2000 2010 2015 2020 2030 2040 2000-2010 2010-2020 2020-2030 2030-2040
Decline in exports from Indonesia to be offset by exports from Australia With thermal coal prices projected to remain stable
500 96
1,200 100
87 86
457 80 82
76 78
429 80
Rest of World
800
416 Indonesia
60
397
Australia
316
40
400
550 20
399 450
0 0
2015 2025 2040 2017 2018E 2019E 2020E 2021E 2022E 2023E
Source: International Energy Outlook, 2017 Source: Bloomberg, JP Morgan Estimates
17
Evolution of Indian Coal Mining & Opportunities
Amendment to Coal Mines Nationalization Act •Allowed private sector participation in coal mining for captive usage
(1973), 1991 •Case to case basis allotment of 218 coal blocks
Auction by Competitive Bidding of Coal Mines •Additional regionally-explored (RE) coal blocks allocated to various PSUs - 14 for Power
Rules, 2012 end use & 3 for commercial mining
•MoC has opened commercial mining for private sector under Act’ 2015
Way Forward
•Methodology for auction published on Feb 27, 2018 and tender process expected soon
Captive mines portfolio including CIL’s mines for potential MDO business shown below
Category No. of Coal Blocks Category No. of Blocks
70 Billion Ton
18
Demand Drivers for Thermal Coal in India
Share of Thermal Power to go down to 51% in next 5 years, although expected to increase in absolute terms
2016-17 2022-23
Coal
8% Large Hydro
2% 2%6%
4%
Small Hydro 13%
10% & Bio Mass
Wind Power
4% 326 GW 472 GW 51%
Solar Power 13%
59%
13% Nuclear 4%
240000
220000
200000
Additions Capacity
MW
180000
160000
140000
120000
FY 17 FY 23
Coal based power capacity expected to increase from 204 GW in FY 2018 to 240 GW in FY 2023
Power generation expected to increase at rate of 6 to 7 % for next 5 years
CIL- Base CIL- Pessimistic CIL- Optimistic SCCL - Base SCCL - Pessimistic SCCL - Optimistic
210 Captive & Others Coal Production (Mn Ton) MoC has auctioned/allocated 94 captive coal blocks
191
180 under CMN* Act 1973, CMSP Act 2015, CBR 2012
172
147
150
152 Production started in 13 auctioned/allocated coal blocks
111 132
120
80 100 117 Production forecasted to reach 172 MT by FY23 based on
90
63 59
52 51 53 72 89 possible opening of new mines and ramp up
60 40 44 46
53 64
46
30 46 47
FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19FY-20 FY-21 FY-22 FY-23
Optimistic Base @90% Pessimistic@80%
400
200
0
FY-17 FY-18 FY-19 FY-20 FY-21 FY-22 FY-23
Imports over the next 5 years likely to be range bound between 140 to 160 MMT
(MMT) 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 CAGR (18 to 23)
Total Demand 828 852 886 930 988 1050 1117 5.6%
Total Supply (Base) 597 625 659 706 763 825 897 7.5%
Imports may go beyond the range based on how CIL & captive performs, removal of infrastructure bottlenecks
including railways !!
21
Adani India Mining: Introduction
• Exploration
Parsa East and Kanta Basan,
Peak Capacity 15 MMTPA • Preparation of GR, Mine Plan
Geological
516 256 200 210 736 589 81 2588
Reserves (MnT)
Mineable
451 184 160 (Est) 134 553 554 66 2102
Reserves (MnT)
Capacity
15 5 7 (Est) 5 23.6 20 4 80
(MTPA)
CMDPA
Contract Status Signed Signed Signed Signed LoA awaited LOA issued
signed
23
Why we entered into MDO? - a natural progression from Coal Trading
Adani entered in
Indian Mining
MDO Business in
2008 - with
RVUNL
24
PEKB Project - World class infrastructure developed within a record time
Mining operations started within record time of 5 Strong EBIDTA Margins & Profitability with stable
cash inflows and robust financial indicator
years from the date of allocation of coal block
Engineers
8.27 8.33
More than 25 MMT coal produced since the start
6.3
of mine
MMTPA
PEKB mine - a model project - it is vertically integrated through private rail corridor (SRCPL) to provide last mile
delivery of coal at TPS
20 40
15 30
10 20
5 10
0 0
Dhansar
Sainik
AMR
JSPL
VPR
Essel
Mahalaxmi
Sadhbhav
PT Darma
Southwest
Monte Carlo
Sical
Adani
Ambey
BGR
Jaypee Power
Thriveni
Indonesian
Company
* JSPL : Turnover - Rs. 15494 Cr. ; Networth – Rs. 21675 Cr. Source: Adani Analysis, Company Reports
26
Robust operations driving strong financial performance
8.27 8.33
7.31 7.1
6.3
5.5
3.44
2.95
1.2 0.96
FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18
61%
56%
54%
47%
956 579
863
466
286
135
77
18
FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18
27
Integrated Coal Management: Our Global Footprint…
Multi-Country Multi modal Customer Account
Financing Management
Procurement Logistics
ICM
Parli
Ramagundam Vishakhaptnam Muara Satui
TanjungIndonesia
Simhadri
Kondapalli Gangavaram Pemancingan
Kakinada
Richard Bay
Goa
South Africa
Queensland
Ennore
North Chennai Australia
Mettur Tuticorin
Ports
Locations served
Tuticorin
We are a team of 200 + People with operations spread across globe through more than 20 satellite offices & branch
offices, 4 global offices and a HO based out of Gurgaon
28
AEL: Integrated Coal Management – Amongst World’s leading & India’s largest
In MMT FY 18
7%
31% 48% 56% 45%
22% SEBs
66 MMT APL
78 81
185 66 Exports
58 164
145 147
63% Private/Others
8%
in ₹ Crs. In $/ MT
Revenue EBIDTA
55.71
52.52
2.85
1.85 1.84
FY 16 FY 17 FY 18
Revenue / MT EBITDA / MT
FY16 FY17 FY18
29
AEL: Adani Gas –
City Gas Distribution
www.adanigas.com
30
Natural Gas – A Low Cost, Clean & Efficient Source of Energy
Abundance Availability Affordability
Acceptability
Gas Value Increasing Expanding Price decline,
Less polluting,
Proposition Liquefaction Imports / commoditized,
clean and green
capacity infrastructure fungible
Global Gas export capacity increasing 50% between 2016-20 Infrastructure around natural gas import is accelerating
425 398
400 374 80 73
375
350 328 60 53
325 44
299
300 40 28
265 24
275 245 248
241 16
250 20
225
200 0
13 14 15 16 17e 18e 19e 20e China LNG (MMTPA) India LNG (MMTPA) India Pipeline ('000 KM)
mtpa FY 16 FY 20E
Poor air quality in cities supporting gas adoption Gas is cheaper than oil linked fuel
$/MMBTU
Oil Linked Fuels
Gas Price
Iran 3
Nigeria 11.3 10.8
5
Pakistan 5 8.7
7.6 7.1
B'desh 6 6.3
0 10 20 30 40
World’s 100 cities with worst Air Quality
From a fragmented and regional market, natural gas now a global commodity. Supply is driven by new discoveries and demand
by rapid infrastructure development
31
India belatedly catching up on the Natural Gas
Environmental commitments, “Make in India” initiative, need for energy security makes natural gas a priority
Lower Gas Consumption per Capita (Cbm/person) India Contracted and Uncontracted LNG Demand
30,630 21,449
2,367 1,678
253 152
80
32
36 37
• Reduce oil import 10% by 2020
28 30
26 26
India has lagged, but given the global glut, this might be a advantage with significant uncontracted demand.
Gas and Renewables together serves the twin purpose of climate and growth
32
City Gas Distribution (CGD) infrastructure generates demand
China Gujarat
Gas consumption increased 4 times compare to India Highest CGD penetration and gas has 25% share in energy mix
LNG as transport fuel picked up due to LNG infrastructure compare to national average of 6%
India China
188
200 172
151
Gas Consumption
137
150
111
93
84
100 73
59
48
35 41
50 30
71
60 61
51 49 49
36 37 40 42
28 30 32
-
FY 02 FY 04 FY 06 FY 08 FY 10 FY 12 FY 14
2230 2500
160
140 1824
2000 LNG Station (Nos)
120
100 1500
175
80
777 137 1000
60 124
40 304 74 500
203
20 101
14 17 22 38
0 0
FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16
Consensus at political & judicial level to replicate Gujarat model , i.e. to increase gas share to 25%
33
Massive Infrastructure Investment in Oil & Gas sector is underway
Carrier first- Commodity latter. Infrastructure will unblock latent demand.
About $23bn will be spent in the next 5 years to build oil & natural gas infrastructure.
Approx. $1 bn VGF has been granted to GAIL to build pipeline infrastructure with likely unbundling
34
Indian CGD is ready for next growth cycle
CGD to provide base load to Gas Economy. Government is aggressively pushing Compressed Natural Gas and Piped Natural Gas
Growth Drivers
India Gas Demand is Increasing
252
500
219 • 120 districts have high pollution levels
190
400 167
150 • Stringent emission norms. SC suggestion to ban Fuel Oil &
MMSCMD
CGD demand adequately covered by domestic production • Industrial automation supports gas as fuel
38%
140 40%
35% • Domestic production of natural gas is rising and expected to
120 35% grow considerably
31%
100 29%
30%
80
26% • Fuel Oil production declining at refineries
21% 25%
60 111
97
17%
19%
100 103 108
20%
• Absolute constrain on LPG production and Import
92 88 87 91
40 infrastructure
14%
20 41 15%
27 31 36
15 16 17 18 22
0 10% • Highway, Inter city traffic, MHV, 2W will drive demand
FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21
• Urbanisation and High rise building supports CGD
India CGD Demand Domestic Productiom
CGD as % of Domestic Production
CGD will have wider political patronage due to its wider, small consumption intensity (Household, passenger vehicles, small
enterprises)
35
Natural Gas: Clean Fuel for Swachh Bharat (Clean India)
Fuel for urban India, clean India, digital India, GST compliant India
CNG has significant price advantage over Petrol Khurja- Case Study
INR/ ltr energy equalized
80.00 Demonetization, GST roll out and environmental pressure changing the
70.00 fuel landscape.
60.00
33.44 Small town about 100 Km from Delhi is famous for ceramics art work. 150
50.00
units making hand crafted pottery and ceramic work.
40.00 14.83
9.06
30.00 11.78 Unorganized sector, avoided using natural gas which leaves a trail and can
20.00 reveal financial data.
29.22
10.00 22.64
- Used all kinds of fuels – Furnace Oil, PetCoke, Kerosene, Rubber/Tyre Oil,
Petrol CNG as emission monitoring not a deterrent
Brent/ Gas S&D Cost/ Margins Taxes
The tri–combination of Demonetization, GST and SC’s decision to ban
Furnace Oil, PetCoke has proved to be a game changer for fuel mix.
Natural Gas Vehicle Penetration is low and will increase
India 1% November 2016 our total PNG sale in Industrial segment at Khurja was
2000 SCMD.
Thailand 1%
China 2%
December 2017 sales, increased to 16000 SCMD, registering 8 fold growth
Brazil 2%
Egypt 3%
FY 19 will reach 80000 SCMD, growth of 4000% in 2 year expecting 100%
Banglade… 11% units on Natural Gas.
Iran 15%
Pakistan 33% Industry is happy with ease of use with gas: saving space/ easy to handle/
on tap/ pay after use/ safe and reliable. It has improve the product quality.
0% 10% 20% 30% 40%
NGVs as % of total vehicle population
Apart from less polluting and ease of operation, Natural Gas will continue to have significant competitive advantage over
liquid fuel
36
Regulatory Framework, Policy Landscape
• Network Tariff-20% • Prices are more stable and less volatile • LNG approved as fuel for highway
• No. of Domestic Connection-50% than liquid fuel
• No. of CNG Outlets-20% transportation
• Inch KM of Pipeline-10% Gas Supply Mechanism
• Natural gas is likely Ito be included in GST
• Government allocates gas for CNG &
• Push for LPG penetration in rural area
domestic use
• Strong entry barriers by regulation-
Awards 25 years concession • Gas for other segments bought from open
market exclusivity
• Awardee to build the urban
network • Sourcing is fair mix of short term and spot • Ban on Fuel Oil in NCR and SC suggestion
o Network exclusivity for 25 yrs
o Marketing exclusivity for 5 yrs contracts
to ban pan India
expected to increase to 8 year
• Term prices are benchmarked to Brent
• Massive infrastructure in oil & Gas
• No regulation around marketing crude
margin
• Main suppliers are GAIL, GSPC, IOCL • Likely unbundling of GAIL
AGL is directly operating in 4 cities and added 9 cities in recent bidding rounds through IOCL JV, All 9 cities to be operational by 2021
Panipat
Bulandshahr Cities 4 9
Faridabad
Khurja Infrastructure
-Steel Pipeline KM 500 750
Ahmedabad -PE Pipeline KM 6,000 5000
Dharwad
South Goa Gas Volume
MMSCMD 1.75 1.5
Adani Gas
38
The JV with IOCL: Public sector pedigree with private sector expertise
Petronet LNG, IGL with 50% private ownership are success stories in Indian gas sector, IOAGPL to replicate and exceed the
same in CGD JV will have private sector character
IOAGPL is in perfect position to participate in growth driven by new geographies and intensify growth within developed
cities
39
Adani Gas – Key growth drivers
Intensifying the growth within same and new geography, increasing PNG penetration in each segment
Replicating the AGL learnings at JV
CGD is in resurgence mode and ready for next round of growth, likely to have higher growth compared to peers
40
Adani Gas customer base is well spread out across segment and cities
Pure play CGD company with 10 year of operational track record
Dom
7% • Balanced product segment mix
FBD
28% • Wide customer base
Ind CNG
37% 53% AHD
64%
• No single entity greater than 2% of revenue
Well established player, competitive advantage from low operating cost, scale advantage for new cities
41
Adani Gas: De-Merger
Adani Gas Limited (AGL) operates the CGD business and is currently 100% subsidiary of AEL
• AGL is operating in 4 cities and its 50: 50 joint venture with Indian Oil Corporation
Largest Private Sector CGD
Limited, has been authorised for 9 cities.
player in India with significant
• CGD is end customer facing business, listing of AGL will provide AGL with brand
growth opportunities
awareness for future growth
42
Resilient operations resulting into robust financial performance
Strong Operational Matrix
Volume in MMSCMD Gross Margin INR per SCM Gross Margin in % & INR/Crs)
800 50%
25
CAGR 10.1 700 45%
1.50 9.6 9.7
1.3 37% 38%
40%
20 8.5 600
1.1 1.1 33%
1.20 1.1 1.0 35%
500 25%
15 30%
0.63 6.0
0.90 11.09 12.34
0.57 0.51 11.80 400 178 25%
0.52 0.47
11.81 16% 133 20%
10 300 132
0.60 94
7.53 15%
200 93
0.30 0.61 0.68 5 306 10%
0.55 0.56 0.57 7.69 7.73 240 232 261
7.11 100
4.47 4.96 152 5%
- 0 - 0%
FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18
CNG PNG PNG CNG CNG
Operating EBIDTA INR per SCM / Free Cash Flow INR/Crs. ROCE (%)
EBIDTA Margin in %
9 35%
7.6
8 49 21%
6.9 6.9
7 30% 19% 18%
5.8 16%
6 30% 29% 12 33 140
40
25%
5 4.1 26% 125
30 11%
4 0 78
20%
3 18%
50
2 15% 128 96 152
1
11%
79 178
0 10%
FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18
EBIDTA (Per SCM) FCF (Post Capex) ROCE
43
Key Investment Highlights
Natural gas has become a major source of clean fuel based energy across the world with heavy investment in
production, transportation and distribution infrastructure
India has lagged; however now serious efforts to catch up: $23bn earmarked
Adani Gas is the largest private sector player – well positioned to take advantage of this growth
Cost leader, strong balance sheet and superior execution capability should help in building pan India CGD
infrastructure
44
AEL: Adani Wilmar – Edible Oil & Food
www.farmpik.com
Edible Oil Industry in India
46
Indian Edible Oil Consumption Growth Drivers
One of the lowest per capita oil consumption (in kg) Market Dynamics
70
61.1 63.9 63.9 63.6
59.7 • Exponential increase in consumption driven by rising
60 62.4 62.8 64.2
59.5 60.1 income levels and aspiration.
50
43.8 43.8
40 39.6 39.7 41.2
• Imports which constituted 3% in late nineties of
30 overall consumption now at 70%.
25.1 25.7 26.2 26.4 26.6
20
15.4 15.8 16.7 17.4
14.9
10 • Per capita consumption to rise to about 23kg by 2025
with a growth likely to be around 4%.
0
2011-12 2012-13 2013-14 2014-15 2015-16
EU USA China Brazil India • Indian oilseed production stagnating and not likely to
grow – fueling growth of Imports
Consumption to grow manifold
35
30 • Lowest Per Capita Consumption (Kg) of Edible Oil in
30 26 India – Huge potential to grow.
25 23
20 20
20 17
15 • 50% of consumption still catered by unorganized
10 sector- Huge potential for consumer pack business.
5
0
• Demand not constraint - Supply is abundant.
2015-16 2020-21 2024-25
47
Adani Wilmar: Strong Growth through Brand across Food segments
Edible Oil and Food Business Dominant Market Share
(as at March-18)
19%
14%
5% 4% 4%
48
Business Model & Strategy
Journey so far….
• Set up first refinery at Mundra with a refining capacity of 600 TPD in the year 1999
• Refining capacity increased from 600 TPD in 1999 to 11000 TPD in 2018
• Owns 18 refineries and 10 crushing units at various strategic locations across India.
• One of the leading exporters of Castor Oil, Oleo-Value Added Products and De-oiled Cakes
• Revenue went up from INR 417 Cr to INR 25000 Cr over these years
• 18 Refineries & 10 Crushing Units • To be considered as FMCG Food Company instead of only
• Refining capacity of over 11,340 tonnes per day
edible oil company
• Seed crushing capacity of 8,950 tonnes per day
• Packaging capacity of 8,360 tonnes per day • Overall Volume Target – 10 MMT by 2021-22
• 5000+ distributors & >1 mn outlets serve 30 mn • Consumer Packed Oil Business – 3LMT/Month as against
households
1.75-1.80 LMT/Month at present
• India’s No.1 edible oil brand “Fortune” having presence all
over India • Plan to Grow in new business segments like Wheat Flour,
• Diversified food products such as Rice, Soya, Pulses, Besan, Rice, Soya Nuggets and Sugar
Castor and Soya & Oleo value added products
49
Financial Parameters
EBIDTA Networth
Rs Cr Rs Cr
1200
1800 1655
1010
1000 1600
CAGR : 24% CAGR : 21%
1400 1280
783
800 1200 1048
961
600 525 1000
502 776
426 800
400 600
200
400
200
0 0
FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18
50
Key Investment Highlights
1
Indian food
consumption trend is
a compelling case
for AWL’s business
7 2
Competitive advantages in
Strong parentage, company sourcing, investment in
managed by professionals
capacities and strong
and industry experts business strategy aligned to
shift in consumption pattern
Investment 3
6
Diversified product highlights
Pan India presence and
portfolio and focus on extensive manufacturing,
branding to capture marketing, sales and
incremental market share distribution platform
5 4
Strong financial profile with Prudent business strategy and
revenue growth ~25% CAGR, risk management policies, given
with comfortable cash flows the low margin business coupled
throughout the tenor of the with commodity cycles and
project competition
51
AEL: Mundra Solar PV - Solar Manufacturing
52
Solar Manufacturing - Demand-Supply Scenario
Global solar PV demand projection (in GW)
Installed Capacity
Projected Capacity
100000
82500
65000
48000
32000
12288
3745 6760
To achieve such an ambitious target, India is projected to install on average 18,000 MW of solar capacity annually
Duty impacts are expected to have a cumulative impact on imported PV products; an additional customs duty of
7.5% is also being considered
2-3 GW 4 GW 6 GW 6 GW
Upper limit of
CFA* @30%
~ $46 Mn ~ $37 Mn ~ $48 Mn ~ $16 Mn
• Controlling Forex outflow: In the absence of manufacturing, India will need to import USD 42 bn. of solar equipment by 2030
corresponding to 100 GW of installed capacity1.
• Job Creation: Solar manufacturing can also create direct employment of more than 50,000 in the next 5 years assuming local
manufacturing captures 50% domestic market share and 10% global market. Another at least 125,000 indirect jobs will be created in
the supply chain
• Investment opportunity in the country impacting the GDP
• Achieving self-sufficiency:
a) Major exporters may decide to divert most of their supply for domestic use (as evidenced by increased demand pull in Q3 2017 and
non-availability of imported modules)
b) Sudden jump in prices in the future due to supply shortages (polysilicon supply constraint raised the price due to supply disruptions)
c) Dispute with major suppliers (as evidenced in the case of China’s rare earth supply to Japan or supply of gas by Russia to European
nations)
d) Unless end-to-end value chain capability is created domestically, temporary protectionist measures like ADD/CVD on cells/modules
may attract additional tariffs on imported raw material like wafers/polysilicon
• Protection against fluctuation in pricing: Unless end-to-end value chain capability is created domestically, temporary protectionist
measures like ADD/CVD on cells/modules may attract additional tariffs on imported raw material like wafers/polysilicon
• Quality and warranty assurance
1) India’s energy imports have risen sharply from USD 43 bn. in 2005-06 to USD 167 bn. in 2013-14. In comparison India’s trade deficit
in 2013-14 was USD 139 bn. Solar power is a strategic need for the country as solar power can potentially save USD 20 billion in fossil
fuel imports annually by 2030.
56
Largest PV manufacturer in India with global scale & quality standards
Production Capacity of Leading Indian Players (in MW) Manufacturing processes and systems equivalent to SMSL,
making us the preferred choice
Cell Module In
Prov
Produc In hous AAA ISO
3*EL en
1400 1400 Compa tion 3xIE hous e IEC6 IEC6 UL17 IEC6 IEC6 Sun 900
Testi CMS Equi
ny Capacit C e Quali 1730 1215 03 1701 2716 Simu 1:
ng pmen
y GW R&D ty later 2015
ts
Lab
Adani 1.2 Y Y Y Y Y Y Y Y Y Y Y Y Y
JA
900 5.3 Y Y Y Y Y Y Y Y Y Y Y Y Y
Solar
Jinko
6.2 Y Y Y Y Y Y Y Y Y Y Y Y Y
Solar
Hanw
500 500 ha Q 5.3 Y Y Y Y Y Y Y Y Y Y Y Y Y
410 430 Cells
Trina
300 5.9 Y Y Y Y Y Y Y Y Y Y Y Y Y
Solar
GCL 4.9 Y Y Y Y Y Y Y Y Y Y Y Y Y
Longi
0 0 0 0 3.5 Y Y Y Y Y Y Y Y Y Y Y Y Y
Solar
Canadi
Adani SolarTata Power Solar
Vikram Solar Waaree Solar Indo Solar Jupiter Solar an 5 Y Y Y Y Y Y Y Y Y Y Y Y Y
Solar
Adani Solar products’ technical specifications are better than / at par with top tier competition’s offerings
57
Adani Solar products have excelled in performance testing against
IEC standards & global peers
Adani ‘s internal pass criteria is even more stringent than IEC standards to ensure delivery of products of only the highest quality and
performance
Pmax degradation (in %)
Type of test Pass Criteria Pass Criteria Actual
(IEC) (Adani) Results
DH1000 – Damp Heat 5 3 1.9
TC200 – Thermal Cycling 5 5 2.9
Mechanical Load Test 5 5 4.1
UV Preconditioning Test 5 3 0.4
HF 10 – Humidity Freeze 5 3 1.9
Hot Spot 5 3 0.9
Potential Induced Degradation 5 3 1.5
Ammonia Corrosion 5 3 0.7
Salt Mist Corrosion 5 5 3.9
Adani (MSPVL) Vs Leading Chinese Supplier Mahoba Site UP Adani (MSPVL ) Vs Leading Domestic Supplier Ghani Site AP
Gain /Loss Average of Jinko Per KW DC Generation Delta Adani 72 Cells Waaree 72 Cells
(Adani-Jinko)/Adani
58
Competitive Advantage
Manufacturing ecosystem with co-located ancillaries Large investment in Capex driving down cost of
developed along the lines of China production
MSPVL
MSPVL
Advantage
Futuristic technology mix with higher binning Investment Vertical integration capability / expansion into
than competition global market
Technical consultants enabling high power output Lowest capex intensity (INR 1.6 Cr / MW) w.r.t.
and efficient production peers
59
Future Plans & Key Investment Highlights
Future Plans
Over 4,100 man-years of technical Only cell maker producing 5 bus bar
know-how / expertise cells in India
WHY
MSPVL
Futuristic technology mix with higher MSPVL
Investment Vertical integration capability /
binning than competition expansion into global market
60
AEL: Others – Agro Infra, Bunkering, Shipping, Defence,
Commuting Infra, Cement and Water
61
Agro Infrastructure
• 35% fruits & vegetable lost due to lack of storage • 7% grain lost due to lack of storage infrastructure in India
infrastructure in India • Introduced first of its kind modern and scientific storage facilities in India ,
• Brand FARM-PIK, India’s largest selling fruit brand ensuring negligible losses and minimal human touch
• Pioneer to introduce Controlled Atmosphere (CA) technology • Capacity with private railway sidings, transporting grains in bulk from grain-
in India, for increased fruit storage life producing states to consumption areas
• Three Controlled Atmosphere (CA) storages with capacity to • Current total storage capacity of 1 MMT is set to rise to 2 MMT by 2021
store 24,000MTs in the heart land of Apple orchards in HP • Since 2005, built storage capacity of 850,000 tons at 13 locations in India
• A boon to farmers which has changed the apple marketing − Operates storage facilities of 5,50,000 tons at 7 locations under BOO for
landscape in HP FCI for 20 Years
• Sourcing fruits globally for the Indian market − Operates storage facilities of 3,00,000 tons at 6 locations under DBFOT
• Selling through a wide network of retail chain stores across for MPWLC for 30 Years
the major cities in India • Building silos in 10 more locations across India for FCI and PGPCL, with a
capacity of 4,75,000 tons under DBFOT/DBOO for 30 Years
BOO - Build Own Operate; DBFOT - Design, Build, Finance, Operate, Transfer; FCI – Food Corporation of India
MPWLC = Madhya Pradesh Warehousing and Logistics Corporation PGPCL = Punjab Grain Procurement Corporation Ltd 62
Adani Bunkering – a leading bunker supplier in India & Adani Shipping
Bunkering : Re-fueling of ships with different grades of Fuel Oil
Rating – BBB+/Stable
63
Defence & Aerospace Business
Focus on platforms and Collaborate with credible and Help develop and grow the Focus on capabilities critical
technologies of critical committed global partners dynamic MSME’s, which are for indigenisation including
importance, to assert India's willing to team up for the long critical for a fast scale-up and design, system integration,
military competence, to meet term and who are willing to sustainable ecosystem in India maintenance & support in
emerging security challenges transfer technology & skills India
UPGRADES &
LIFE CYCLE MANGEMENT - Prime
Fighter aircrafts (Gripen AEROSTRUCTURES & COMPOSITES
E/F) • High quality machined components
supplier to Global OEMs – GE,
MRO* & SUPPORT - Prime
Honeywell, UTC etc.
• Skill Building & Training Centre for fabrication etc.. DESIGN & R&D - Prime
MSME PARTNERS
• 53000 kms of NHs have been identified to be • 60% of Indians living in urban areas by 2050 • 100% FDI in the railway infrastructure allowed
built under Bharatmala • Metro rail operating in 10 cities and in 12 more • Prospective investment of USD 131 bn in next
• Under phase I target to reach 24,800 kms by cities it is under implementation five years
FY22 with capital of Rs 5.35 tn • At present, Metro projects of ~Rs 2 tn are • Government aims to boost passenger
• PMGSY intends to award projects of 20000 under approval in 15 cities amenities by PPP model
kms in FY 2017-18 and targets to award • India’s share in the global metro network is • Investment opportunities in components &
projects of 25,000 km in FY 2018-19 currently limited to 3% coaches manufacturing, Infrastructure,
• Metro's role as main transporter has yet to electrification, DFC, terminals operations
gain significance in India gauge conversion & network expansion
• Focus on the projects across India initiated by • Focus on the projects across the country • Adani is first investor cum developer of private
NHAI & MORTH initiated by various States railway line in India
• Target selected projects under BOT, TOT, HAM • Target selected underground Metro-rail, Mono- • Focus on pan-India PPP projects
model which can offer scale and complexity to rail, Light-rail projects which can offer scale • Target selected EPC projects which can offer
create a differentiated value and complexity to create a differentiated value scale and complexity to create a differentiated
• In-organic growth through M & A value
MORTH – Ministry of Road Transport and Highways; PMGSY - Pradhan Mantri Gram Sadak Yojana; DFC – Dedicated Freight Corridor
BOT – Build-Operate-Transfer; TOT - Toll-Operate-Transfer; HAM - Hybrid Annuity Model 65
Cement Business
Cement Plant Footprints & Capacities – Phase I Cement Business Growth Plan
Lakhpat Integrated Unit • The clinker for the planned units will be produced at Lakhpat, which
Clinker Capacity: 3.2 MTPA will also be an integrated unit
• ACL has also acquired a limestone mine with reserves of 170+ mt
Lakhpat IU Mundra BT
Phase I – Status of Statutory Clearance
Clinker/Cement to be
fed to Gus/BU by Sea
Cement Capacity: 0.55 MTPA
Mundra BT Clearan
Lakhpat Mundra Udupi Dahej Raigarh
ce
Dahej GU Dahej GU
Site visit Date for Filing of
Cement Capacity: 1.1 MTPA Environme Public
Public
TOR
Application
completed by
nt Hearing meeting
EAC, TOR Hearing for TOR
route
Clearance Completed completed
awaited Awaited completed
Site visit by
Raigarh BT Raigarh BT
Range
Cement Capacity: 1.65 MTPA Forest Not Not
Forest Not Required Not Required
Clearance Required Required
Officer
completed
Water Stress (withdrawals/available supply) in India India Per Capita Water Availability in Cubic Meters (cm)
68
Carmichael Coal Mine - Overview
69
Carmichael Coal Mine: Capital Cost & Status of Major Approvals
Judgemen
Capex Particulars AUD $m
Initial Further t on
Matter Counterparty
Judgement Appeal Further
Mine Fleet 516 Appeal
Grant of Mine
Pre strip 372 ✔
Environmental Land Services of
In favour of No n/a
Authority on Coast and Country Inc
Adani
CHP and CPP 225 February 2, 2016
✔
Land Services of Coast
NGWS pipeline 158 Land Court Hearing In favour of No n/a
and Country Inc
Adani
MIA & Mine Pit Civils 125 Australian
Grant of Mine EPBC ✔ ✔
Conservation
Approval on October In favour of Yes In favour
Owners costs 106 Foundation
14, 2015 Adani of Adani
Incorporated (ACF)
Grant of
Comprehensive and Competitive Capital Cost Environmental ✔
Whitsunday Residents
Authority for Port In favour of n/a n/a
Against Dumping Ltd
Development dated Adani
December 7, 2015
Hearing in
Application to Adrian Burragubba,
the Federal
register the ILUA on Linda Bobongie, Lester
Court n/a n/a
April 27, 2016 by Barnard, Delia Kemppi
estimated to
Adani and Lyndell Turbane
be held
70
Favourable strip ratio and mine development sequence ensure low cost
sustainable operations
Favourable strip ratio enables cost competitiveness of the Low operating costs insulate against price and FX movements
operation throughout the mine’s life – Carmichael will be able to operate throughout the cycle
5.78
5.09 Rail Cost $/t 9.6
4.96
Consistent strip ratio guarantees consistent volume & quality Margin $/t 24.6
71
Focus Markets – India and South East Asia
Growth markets forecast to be India and SEA – power generation markets that are aligned to Carmichael 5000kCal specifications
gap in India.
72
Carmichael Mine: A conventional, commercially robust and competitive coal
mine
73
Sustainability
Environment
74
One vision,
One team
Thinking big
Doing better
To be the globally admired leader in integrated infrastructure businesses with a deep commitment
to nation building. We shall be known for the scale of our ambition, speed of execution and quality
of operation.
75