Safe Harbor. This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner.

Transcription

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2 Safe Harbor Certain statements made in this presentation may not be based on historical information or facts and may be forward-looking statements, including those relating to general business plans and strategy of Adani Group companies including Adani Enterprises Limited ( AEL ), Adani Ports and Special Economic Zone Limited ( APSEZ ), Adani Power Limited ( APL ), Adani Transmission Ltd. ( ATL ) and their associates. Their future outlook and growth prospects, and future developments in their businesses and their competitive and regulatory environment, and statements contain words or phrases such as will, expected to, etc., or similar expressions or variations of such expressions. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in their business, their competitive environment, their ability to implement their strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India. This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase or sell, any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of Adani Group company s securities in any jurisdiction. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or an invitation by or on behalf of Adani Group companies. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any of Adani Group company s securities. Adani Group companies, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified is only current as of the date of this presentation. Adani Group companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. Adani Group companies may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. No person is authorized to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of Adani Group companies. This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner. This presentation contains translations of certain Rupee amounts into U.S. dollar amounts at specified rates solely for the convenience of the reader. 2

3 Our Vision, Values & Culture Vision Values Culture 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 Courage: We shall embrace new ideas and businesses Trust: We shall believe in our employees and other stakeholders Commitment: We shall stand by our promises and adhere to high standards of business P - Passion R - Results I - Integration D - Dedication E - Entrepreneurship 3

4 India s Growth Journey is the Journey of Adani

5 India: A Paradigm Shifter in Global Economy One of the global growth engines of the 21 st century, ranking high on many macro-economic indicators Availability of cost effective engineering resources Estimated to become the 5 th largest consumer market by 2025 Rising middle class puts increasing demand on infrastructure needs like power, water, road & land Amongst the top ten economies of the world 5

6 Thinking Big for India Rising Coal Need Rising Infra Need Rising Power Need Housing Demand Food Shortage Indian economy to remain heavily reliant on Coal The key driver of coal demand is the Indian power sector 90% of the volume and 72% of total value of country s international trade is through maritime transport According to Shipping Ministry, Indian Ports will need to have capacity to handle 2.5 bn MT cargo by % of electricity consumed is produced through thermal power which will continue over the next two decades In 2013, as per IEA, World Energy Outlook, In 2013, over 237 million Indian citizen had no access to electricity India has experienced some of the highest food losses in the world Stagnant oil seed production and rising edible oil demand is increasing import dependency Our businesses are our strategic response to the nation s challenges Shortage of urban houses stood at 18.8 Mn units in 2012, expected to grow at CAGR 6.6% until Smart City Project, Infra & Affordable Housing initiatives by Govt/Urban Authorities will trigger Demand Resources: Obtaining coal from mines and trading; in future it will also include oil and gas production. Logistics: A large network of ports, Special Economic Zone (SEZ) and multi-modal logistics railways and ships. Energy: Conventional and Renewable Power generation, transmission, Solar PV manufacturing and gas distribution Agri: Agri products & infrastructure Real Estate: Integrated townships, Individual residential, commercial developments and social clubs

7 Thinking Big for India Largest Coal Importer in India Largest port operator in India growing faster than the industry average Largest private power producer in India India s largest edible oil brand- Fortune; largest player in Oleo, Castor, Speciality Fats and Wheat Storage (silos) Developing one of India s largest integrated townships in Ahmedabad, fast growing across Mumbai and NCR Our Strategic Response to Nation s Challenges Adani s coal operations* will account for ~20% of India s projected coal requirements by 2021 Adani s port infrastructure will handle ~20% of the total cargo handled at Indian Ports by 2021 Adani s power generation capacity will be more than ~5% of India s projected capacity by 2021 Adani will cater to 25% of India s edible oil demand by 2021 Adani will be developing real estate properties over 80 million sq ft by 2021

8 8 Group Overview Thinking big Doing better Revenue : $11 billion FY2017 Human Capital: 11,000+ Our mines, ports and power plants help people to work, shop, cook, read and go about improving their daily lives. Presence: 50 countries, 70 locations Listed Companies: Adani Enterprises Ltd, Adani Ports and SEZ Ltd, Adani Power Ltd, Adani Transmission Ltd

9 Vision E E Coal Handling (MMT) Cargo Handling (MMT) Resources Bunkering (MMT) Logistics Energy Power Generation Capacity (MW) Power Transmission Capacity (CKM) 12,358 30,000 8,511 20,000 Agri Silo, Fruits and Food products (MMT) Gas Distribution (No. of Cities) Solar Manufacturing Capacity (MW) ,500 3,000 Real Estate Construction (Mn sq. ft.) 10 80* * Estimated Potential 9

10 Delivering Steady Growth

11 Unparalleled Growth CAGR: 11% CAGR: 39% CAGR: 36% 2,810 27, ,357 1,087 20, , , ,853 Revenues (in $ Million) EBIDTA (in $ Million) Total Assets (in $ Million) Note: The above calculation applies for Adani Enterprises Limited ( AEL ); Adani Ports and Special Economic Zone Limited ( APSEZ ) ; Adani Power Limited ( APL ) ; Adani Transmission Limited ( ATL ); and its subsidiaries, associates and Joint ventures. Revenue: Total Revenue in consolidated statement of Profit and Loss EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization in consolidated statement of Profit and Loss Total Assets: Total Assets in Consolidated Balance Sheet. RBI reference rate of US$1 are INR 44 for 2007, INR 51 for 2012 and INR 65 for 2017 (used for conversion of above financials)

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13 Adani s Competitive Advantage MDO : Mining, Development & Operations; SPM : Single Point Mooring; SEZ : Special Economic Zone 13

14 Resources Fuelling the growth of Indian economy

15 Coal: Global Consumption driven by India and China Global consumption to slowly increase by 2035*, led by India. Key economies of India and China to remain heavily reliant on Coal India s Power Generation Mix 2017 E 74% 10% 3% 13% MT Coal Hydro Nuclear 6,564 MT Others 2035 China s Power Generation Mix 2017 E % 20% 4% 29% Thermal Hydro Nuclear *Source: Wood Mackenzie 2017 H1 Macroeconomic Outlook Others 15

16 Coal: Demand & Increasing Market Share Adani's Coal Market share in India shall rise significantly by FY2021 Coal demand in India - driven predominantly by the power sector 18% % 19% % 77% 78% Adani Mining (India and Indonesia) Adani Coal Handled Power Cement Others 16

17 Coal: Mine Development & Operation Parsa (E) Kanta Basin, Peak Capacity 15 MMTPA Kente Extension Peak Capacity 7 MMTPA Jitpur, Peak Capacity 2.5 MMTPA Gere Pelma-III Peak Capacity 5 MMTPA Talabira II & III Peak Capacity 20 MMTPA Parsa, Peak Capacity 5 MMTPA Largest Mine Developer & Operator in India Coal Production in year MMT Land Acquisition Exploration Develop, plan, operate & manage mining operation Establishment of washery & reject based power plants Logistics solution Average Potential mine life: 30 years Estimated direct employment to 3200 people through these coal blocks MMTPA: Million Metric Tons/ Annum Operational Under Development 17

18 Coal: from World to India Substantial contribution to Bunyu economy Coal Production in year MMT Location : Bunyu, North Kalimantan, Indonesia Potential Mine Life: 15 Years Peak Capacity: 8 MMTPA Direct employment to 1600 people (90% being locals) Bunyu, Indonesia Largest investment by an Indian company in Australia Operational Under Development Galilee Basin, Australia Location : Carmichael Mine, Galilee Basin, Queensland, Australia Potential Mine Life : 60 years Peak Capacity : 60 MMTPA The Mine Project will be a major contributor in generating over 10,000 (indirect/direct) jobs for Australians. 18

19 Bunkering Business Largest bunker suppliers in India and at certain ports outside India Dedicated infrastructure - Barges, Tankages and Pipeline at berth for bunkering operations Strength of physical operations at all Ports of Gujarat and Goa Marketing arrangement with PSU oil marketing companies (OMCs) at all Indian ports Tie-ups with reputed suppliers at ports in Sri Lanka, Fujairah, Singapore, South Africa, China, East Africa and Europe Strong team across India and presence in Singapore & Dubai 19

20 Logistics An economic gateway for the nation

21 Global Logistics through Maritime Transport Seaports continue to be a crucial link for access to the global marketplace. The volume of cargo moved by ocean transportation is projected to dramatically increase over the coming decades. So we are strengthening our infrastructure to meet the future demands. And, that will create more jobs, alleviate congestion, reduce pollution and deliver prosperity. 21

22 CAGR: 6.36% CAGR: 9.94% CAGR: 18.31% Ports in India: Overview Cargo Handling 7x growth compared to other non major ports All figures in MMT E E E Major Ports Non Major Ports Adani Ports- India (Under the purview of Central GoI) (excluding Adani Ports) Note: Major and Non Major Ports Estimates are based on industry analysis and CAGR of past 10 years MMT: Million Metric Tons; CAGR: Compounded Annual Growth Rate: 22

23 Adani Port Presence Mundra Largest Port Operator in India Tuna Dahej Hazira Dhamra Vizag Mormugao 7 7 Vizhinjam (Project Pipeline) 6 6 Kattupalli Ennore All Units in MMTPA Current Capacity Proposed Capacity 23

24 Industrial Land Integrated Infrastructure Offering land in Special Economic Zone, Domestic Tariff Area and Free Trade and Warehousing Zones with cluster based zoning Excellent integrated utilities such as power, water, CETP (Common Effluent Treatment Plant) Quality social infrastructure facilities - housing, education, healthcare and recreation Multi-modal connectivity with sea, air, rail and road linkages 24

25 Integrated Logistics Solutions Inland Container Depots Multiuser Inland Container Depots (ICD) at Patli, Gurgaon; Kishangarh, Rajasthan and Kilaraipur, Punjab Additional ICDs planned at strategic locations across the Country Railways Licensed container rake operator with 10 owned rakes and 12 leased rakes 300 kms privately laid track length 25

26 Dredging and Shipping Business Dredging Owns a total fleet of 19 dredgers Largest fleet of cutter suction dredgers in India Shipping Wholly-owned subsidiaries in Singapore and Panama to manage shipping and freight operations 5 cape size vessels 26

27 Energy Committed to ensure energy security for India

28 Power Demand & Supply Dynamics Latent demand for power to drive demand India s required Installed Power Capacity (in GW) 7-8% India s projected GDP growth rate for India s per capita consumption in units, approx 1/10 th of US M Houses yet to be electrified Note: All figures from CEA as on 31 st March,

29 Coal Based Power Generation One of World s Largest Single Location Coal Fired Private Power Plant at Mundra 4620 Kawai 1320 Operational Power Plants Installed Capacity (MW) Mundra, Gujarat 4620 Tiroda, Maharashtra 3300 Kawai, Rajasthan 1320 Tiroda 3300 Udupi 1200 Godda 1600 Udupi, Karnataka 1200 Total All figures in MW Commissioned Project Pipeline Note: All Units in MW Adani Power Plant 29

30 Power Transmission India s largest private power transmission company Operational 8511 C Kms Under Implementation 2566 C Kms First private company in India to build HVDC System Developed India s largest private HVDC Line

31 Renewable Energy- Power Generation Mission 2021: 10,000+ MW Operational Capacity: 1918 MW Under Construction: 582 MW The 648 MW solar power plant at Kamuthi, Tamil Nadu was world s largest single-location solar power plant at the time of setting-up Developed India s largest, 100 MW, single location HSAT solar power plant at Bathinda, Punjab Solar Parks / Zones: Solar Parks will be open for other players to set up their solar power generation units 31

32 Renewable Energy- Solar PV Manufacturing Premier Manufacturer of Indian Cells and Modules 1.5 GW cell and module manufacturing capacity largest greenfield solar PV facility in the world State-of-the-art facility (3 floor architecture) built within a year Best-in-class equipment sourced from European and Global suppliers Projected vertically integrated capacity of 3GW by 2020 Strong & experienced team with 4,100+ man years to ensure process sustenance Co-located ancillary units to support Just-In-Time (JIT) procurement and cost reduction Plant located in Electronics Manufacturing Cluster (EMC) with access to infrastructure, logistics, port and SEZ facilities and potential for further expansion

33 Gas Distribution Faridabad Household 32,372 Industrial 213 Commercial 79 CNG Station - 13 Khurja Household 2,166 Industrial 36 CNG Station 1 Ahmedabad Household 2,50,635 Industrial 753 Commercial 2,187 CNG Station - 50 Vadodara Household 575 Industrial 89 Commercial 1 CNG Station - 6 Indian Oil Adani Gas Pvt Ltd (IOAGPL) 50:50 joint venture with Indian Oil Corporation implementing CGD at Chandigarh, Allahabad, Ernakulam, Udhamsingh nagar, Panipat, Daman and Hubli-Dharwad 33

34 Agri Ensuring food security for the nation

35 Developing infrastructure to ensure India s Food Security Lack of storage infrastructure leading to losses to the nation Adani s technology driven storage solutions ensuring food security for the nation, empowering farmers Food storage and logistics 5-7% Grain loss 100% Nutrition Intact and minimal human contact 30-35% Fruits & vegetable loss 0% Negligible grain loss Edible Oil High import dependency, set to rise to 76% by 2021 from current 70% Adani s state-of-the-art edible oil refineries and packaging units 2% Stagnant domestic production 1 Mn Adani s edible oil available across 1 Mn outlets in India 6% Rising edible oil consumption (CAGR) 25% Adani s contribution to India s demand by

36 Edible Oil and Food Business 36

37 Grain Storage and Logistics Business Introduced first of its kind modern and scientific storage facilities in India Ensures negligible losses, minimal human touch, and intact nutrition over a long period of time Spread over 14 Locations, with private railway sidings, transporting grains in bulk from grain-producing states to consumption areas Current total storage capacity of 1 MMT is set to rise to 2 MMT by 2021 Additional 4.5 Lac MT capacity being built at 9 locations 37

38 Fruits Business Brand FARM-PIK, India s largest selling fruit brand Pioneer to introduce Controlled Atmosphere (CA) technology in India, for increased fruit storage life Total CA storage capacity of 23,500 tons, spread across 3 locations in Himachal Pradesh (HP) A boon to farmers which has changed the apple marketing landscape in HP Sourcing fruits globally for the Indian market Selling through a wide network of retail chain stores across the major cities in India 38

39 Real Estate Developing Real Estate Properties worth 80mn sq ft across India

40 Demand Supply Gap Urban Housing- Gap* Shortage of urban housing to CAGR 6% between ; Smart City Project to trigger the demand Real Estate and Regulation Act, 2016, to benefit corporate players committed for transparency, accountability and follow good customer practices All Units in Million Units

41 Integrated Township Shantigram Ahmedabad Shantigram : Largest Integrated Township of Gujarat. Total Development potential of 40 mn sq. ft. on 580+ acre area Belvedere Golf & Country Shantigram with amenities like 9 hole Golf Club, party lounge, restaurants, Swimming pool, Indoor games, sports complex, Gym/Yoga, Spa/wellness center, Children play area, Bowling, Movie theatre etc. Adani Corporate House : Development of 0.81 mn sq ft on 10 acre area 41

42 Presence in NCR and Mumbai Mumbai : Western Heights, Andheri(W): High end Residential Apartments, development of 0.8 ml sq ft Residential and 0.15 mn sq ft of Retail/Suites. Inspire, BKC: Grade A Office complex in Mumbai s premier CBD district. Development of 0.8 mn sq ft. Designed as LEED certified Gold Building. Monte South,Byculla : High end Residential Apartments, 1 mn sqft development over 12 Acres. 42

43 Affordable Housing Ahmedabad : Aangan: 1.15 mn sq ft area phase 1 development Pratham: 0.68 mn sqft area development on 6 Acres land Phase 2 to be launched soon Gurgaon: Aangan : 0.5 mn sft of development on 5.5 Acres land. Phase 2 to be launched soon Mundra: Township: 2.5 mn sq ft area of Residential already developed on 117 Acres of land. Self Development of Hostel, Club, Teachers Colony and Guest House 43

44 Financial Services Accelerating the India Growth Story through Financial Services

45 Financial Services Rural Value Chain, MSME & Affordable housing Retail & Rural Wholesale Aligning with 3 Key Nation building missions: Agri Value Chain MSME Real Estate Corporate Make In India: Supporting the MSME sector Doubling farm income: By building a financial eco-system for Rural and Semi- Urban India Affordable Housing Infrastructure Housing for All: Provide reasonable financing for Affordable Housing for both Customers and Developers 45

46 Defence and Aerospace Helping build a secure nation

47 Defence and Aerospace National Security It is time for the world s largest democracy to secure its destiny by being self-reliant in defence and security Make In India To play an instrumental role in helping transform India into a destination for world class high-tech defence manufacturing, aligned to Make in India initiative 47

48 Pillars of Strategy Focus on platforms and technologies of critical importance, to assert India's military competence, and help meet emerging security challenges at our borders. Collaborate with credible & committed global partners who are willing to team-up for the long term, and willing to transfer state of the art technology & skills. Help develop and grow the dynamic MSMEs, which is critical for a fast scaleup and sustainable ecosystem in India. Focus on capabilities critical for true indigenization including design, system integration, maintenance & upgrade in India. 48

49 Current Activities Successful collaborations in place with global OEM s Saab, Elbit Systems, Solvay Chemicals. Fundamental capabilities across systems and components in defence & aerospace in place with investments in Comprotech Engineering and AutoTec Systems. Adani composites manufacturing park being set up for civil and defence aerospace requirements. Setting up skill building, training and certification centre for aerospace manufacturing. 49

50 Other Initiatives Other Initiatives

51 Education Adani Institute of Infrastructure, Ahmedabad Offering full time programs in Infrastructure Engineering and Management Gujarat Adani Institute of Medical Sciences, Bhuj First ever Public Private Partnership based Medical College in the medical education sector. Offering MBBS and PG courses in almost all clinical branches to 900 students and interns. 51

52 Adani Foundation Our Inclusive and Progressive Way of Life

53 Adani Foundation Adani Foundation is an intrinsic part of Adani Group s efforts towards Corporate Social Responsibility and has been working relentlessly across 20 locations, 13 states and 1470 villages, towards uplifting the lives of more than 5,00,000 families. Empowering communities through: Education Health Livelihood Rural Infrastructure Overall, about 2% of Adani group s total profit is invested in Corporate Social Responsibility initiatives 53

54 Educating Children Empowering Future Adani Vidya Mandir (AVM) has been successfully operating in Ahmedabad, Bhadreshwar (Gujarat) and Surguja (Chattisgarh) and is providing free education to more than 1,900 meritorious students from underprivileged section of the society. Adani Public School, Adani DAV Public School, Adani Vidyalayas and Navchetan Vidyalaya are providing subsidized quality education to 2,400 students in these 5 schools across locations. Empowering more than 300 Government Schools and Balvaadis nurturing 100,000 children. 54

55 Enabling Healthcare Empowering Lives GAIMS GKG Hospital a 750 bedded hospital in Bhuj is attending to an average of 1,500 patients and conduction 40 surgeries each day. Mobile Health Care Units treating more than 25,000 patients and Rural Clinics attending an average of 6000 patients each month. Senior Citizen Health Cards provided to 7500 elderly. 18,000 people treated at various Medical Camps conducted annually across locations. Providing treatment to over 4 lakh people annually 55

56 Developing Rural Infrastructure Empowering Communities State of the art school buildings and infrastructure constructed for 8 schools run by Adani Foundation. Promoting water conservation by constructing 21 Check Dams & Deepening of 223 Ponds, thereby increasing water storage capacity to 688,969 Cu.mt 361 Aavas constructed & repaired for BPL families and 365 housing shelters constructed & refurbished for the fisher folk community. 335 potable water facilities made available to the villagers. Other works include construction of various Healthcare centres, approach roads, community halls, Individual / Community toilets etc. 56

57 Sustainable Livelihood Empowering Generations Introduced 2,700 farmers to SRI technique of cultivation covering 4,400 acres of land, due to which cost of production reduced by 35% while production increased by 50% 600 Farmers supported for Drip Irrigation, covering 1,500 Ha land 2,500 fishermen are supported with fishing equipments, like fishing nets, anchors, etc. 150 fisherfolk families were engaged in mangrove afforestation covering an area of 2,823 Ha. Over 37,000 man-days provided to fisherfolk during non-fishing months Creating and supporting women SHG s in producing and marketing their products/services. 57

58 Special Projects Swachhagraha Inculcating Culture of Cleanliness in across 17 States in 2,300 Schools, through 2,800 Swachhagraha Preraks & 32,700 Swachhagrahis. The program has an average outreach of around 70,000 per month. Saksham Adani Skill development Centre, training the youth in 25 ASDC centres across 6 states in India. 34 Govt. & 11 ASDC customized and Govt. approved courses offered. Capacity to train 20,000 candidates per annum. 58

59 Special Projects SuPoshan Curbing Malnutrition & Anaemia across 14 Sites, 309 villages, 501 Aanganwadis & 90,565 Households. Udaan Inspiration based visit for schools and college students to Adani business locations. More than 2.25 lakh students from 3000 institutes have participated and benefitted. 59

60 Our Business model is aligned with the national interest The back-story to our success is the growth of India s middle class. Their demand for goods and services places an ever-growing demand on the nation s infrastructure, in terms of ports, power, water and transportation. We are building infrastructure to handle nation s future needs. Gautam Adani Chairman, Adani Group 60

61 We are 11,000+ young, dynamic doers working across the globe for a common purpose Thinking big Doing better One vision, One team.