Aegis Logistics Limited - "Positioned for growth" Investor Presentation - December 2017
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Aegis Logistics Limited
“Positioned for growth”
Investor Presentation
December 2017
Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Aegis Logistics Limited (the
“Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation
to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding
commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering
document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but
the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth,
accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all
inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or
any omission from, this Presentation is expressly excluded.
This presentation contains certain forward looking statements concerning the Company’s future business prospects and business
profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in
such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and
uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international),
economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on
contracts, our ability to manage our international operations, government policies and actions regulations, interest and other
fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of
these forward looking statements become materially incorrect in future or update any forward looking statements made from
time to time by or on behalf of the Company.
2
Strong Performance
Revenue Normalized EBITDA* PAT
+83% +38% +103%
1,242 77 56
56
677 28
Q2FY17 Q2FY18 Q2FY17 Q2FY18 Q2FY17 Q2FY18
Revenue Normalized EBITDA* PAT
+48% +27% +73%
2,100 144 103
113
1,418
59
H1FY17 H1FY18 H1FY17 H1FY18 H1FY17 H1FY18
* Normalized EBITDA – Before Forex, Hedging Related Expenses
Financials are per IndAS; Rs. In Cr 3
Current Business Break-up
Liquid Division Gas Division
▪ Business ▪ Business
– Third Party Liquid Logistics (3PL) – Third Party Gas Logistics (3PL)
– O&M Services H1FY18 EBITDA – Auto Gas Retailing and Packed LPG Cylinders
for Commercial segment
Rs. 144 Cr
– Industrial Gas Distribution
Liquid – Marine Products Distribution (Bunkering)
38% – Gas Sourcing
Gas
62%
▪ Revenue Model ▪ Revenue Model
– Fee based Revenue Model – Fee based Revenue Model for Gas Logistics
– Handling and Other Service Charges – Fees for Sourcing Business
– O&M fees – Retail Margin for Gas Distribution
– Handling and Other Service Charges
4
Major ongoing Expansion Projects
Liquid - Kandla
▪ Capacity - 100,000 KL
LPG - Pipavav
▪ Static Capacity – 10,200 MT Liquid - Haldia
▪ Throughput – 800,000 MT
▪ Phase II – 35,000 KL Commenced
Mission
To build an unrivalled national
port infrastructure and
distribution network in the Oil
and Gas sector in India
LPG - Haldia
Liquid - Mangalore
▪ Static Capacity – 25,000 MT
▪ Throughput – 2,500,000 MT ▪ Capacity – 25,000 KL
5
Gas Logistics
6
Gas Logistics - Capturing Complete Value Chain
40% 60% Gas Distribution
Gas Logistics (3PL)
AND/OR
Gas Sourcing Sourcing Fees
Industrial
Sourcing Shipping Terminalling Auto Gas
Segment Activity Revenue Stream
Gas Sourcing Sourcing & Shipping Sourcing Commission
Throughput Fees, Handling &
Gas Logistics Terminalling Commercial
Value Addition Service Charges
Industrial, Commercial &
Gas Distribution Distribution Margin
Auto Gas
Creating ‘Leading LPG Sourcing Player in India’ through Vertical Integration Strategy
7
Demand Supply Gap exists for LPG in India...
Consumption of LPG in India Imports of LPG in India
‘000 MT ‘000 MT
+207% CAGR 17%
21,537 11,026
14,331
10,456
4,484
7,016
2,883
853
2000-01 2005-06 2010-11 2016-17 2000-01 2005-06 2010-11 2016-17
Incremental Demand in LPG met through Imports
•Source: PPAC
8
Tons
Million
0
5
10
15
20
Metric 25
30
35
40
2004-05
2005-06
2006-07
2007-08
2008-09
Domestic Supply
2009-10
2010-11
Source: PPAC/IOC and Management Estimates
2011-12
2012-13
Demand
2013-14
2014-15
2015-16
2016-17(P)
11
2017-18
21
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
2026-27
2027-28
2028-29
2029-30
...Increasing LPG imports will require new Terminal Capacity
2030-31
Imports
2031-32
2032-33
2033-34
16
36
2034-35
9
To Capitalize on this Opportunity
Leading LPG Logistics Player in India
JV with ITOCHU
✓ Efficient and Cost Effective
Shipping for High Volumes Expansion -
Terminaling Capacity
✓ Strong Negotiating Power
✓ Growing LPG Market in India
✓ Financial Muscle
✓ Strong Customer Relationship
✓ Terminaling Capacity
10JV with ITOCHU
Aegis entered into a Joint Venture for its
Singapore based LPG Sourcing and Supply Business
with
ITOCHU Petroleum Co., (Singapore) Pte Ltd
Aegis Logistics Limited sold 40% of its equity ownership in its wholly owned subsidiary, Aegis
Group International Pte. Ltd. Singapore, to ITOCHU Petroleum Co., (Singapore) Pte Ltd., a
wholly owned subsidiary of ITOCHU Corporation for a total consideration of $ 5.85 million
Sold 40% in AGI ITOCHU Petroleum Co.,
Aegis Logistics Ltd
(Singapore) Pte Ltd
60% Aegis Group International Pte. Ltd (AGI) 40%
Joint Venture to become a leading
LPG sourcing player in India
Attaining Cost Leadership in the LPG import market
Lowering the delivered price to most Competitive levels
11LPG Capacity Post Expansion
Static Capacity MT Throughput Capacity MT
63,300 5,000,000
Expansion in Haldia & Pipavav
Debottlenecking in Mumbai
25,000
2,500,000
28,100
25,400 18,300
5,400 8,100 1,400,000
1,300,000
750,000 6,00,000
20,000 20,000 20,000
250,000 1,100,000
5,00,000 7,00,000
2015-16 2016-17 2017-18 2015-16 2016-17 2017-18
Haldia Pipavav Mumbai
12Greenfield Capacity Expansion at Haldia
✓ Static Capacity
▪ 25,000 MT – 2 Fully Refrigerated Tanks of
12,500 MT each
▪ 24 carousel (Filling Points) bottling plant
✓ Throughput Capacity
▪ 2,500,000 MT at full utilization
Project Cost
✓ ▪ Rs 250 crs – LPG Terminal
West Bengal
▪ Rs. 25 crs – LPG Bottling Plant Haldia
✓ Means of Finance
▪ Internal Accruals
✓ Project Completed
Signed 20 years of MOU with
▪ Q3 FY17-18
a Large PSU as Anchor Customer
✓ Pipeline Connectivity
at the Current Market Throughput Rates
▪ Paradip -Durgapur Pipeline passes
through Haldia
Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness
13Debottlenecking of LPG Terminals at Mumbai
✓ Static Capacity to remain same
▪ 20,000 MT
✓ Throughput Capacity
▪ 1,100,000 MT (incremental 400,000 MT)
✓ Project Cost
▪ Rs 15 crs
✓ Means of Finance
▪ Internal Accruals
✓ Project Completed
Project Status:
▪ Q3 FY17-18
▪ Intake Pumps – Under Progress
✓ Pipeline Connectivity ▪ Internal Pipeline – Completed
▪ Uran – Chakan / Shikrapur LPG ▪ Connectivity of Mumbai Terminal to
Pipeline passes through Mumbai
Uran – Chakan Pipeline Grid – Completed
14Brownfield Capacity Expansion at Pipavav
✓ Static Capacity
▪ 10,200 MT
✓ Throughput Capacity
▪ ~800,000 MT at full utilization Gujarat
Pipavav
✓ Project Cost
▪ Rs 75 crs
✓ Means of Finance
▪ Internal Accruals
Throughput volumes for LPG handled in Pipavav
✓ Project Completed
expected to grow
▪ Q3 FY17-18
through
existing and new customer relationships
Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness
15Our Gas Distribution Network
B2C
▪ Auto Gas Retailing: Distribute LPG as Auto Fuel through Gas Station
Network
▪ 107 Auto Gas Stations across 7 States
B2B
▪ Bulk Industrial Distribution: Distribute LPG through road tankers to Auto,
Steel, Ceramic Industries etc
▪ Commercial LPG: Distribute Packed Cylinders for Commercial and
Industrial users
▪ 102 Commercial Distributors spread across 45 Cities in 8 states
16Gas Division Performance EBITDA*
Capacity Existing & New
Expansion Customer Relationships Sustainable Business
Rs. in Cr.
Average ~21 Average ~31 Average ~39 Avg. ~45
51
46
42
39 39
35 35
27 27 27
24
22
20
19
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18
* Normalized EBITDA – Before Forex, Hedging Related Expenses
17LPG Volume - Logistics
‘000 MT
Average ~157 Average ~245 Average ~338 Avg. ~363
434 424
400
308 302
279
268
238
200 206
197
163
132 131
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18
18LPG Volume - Distribution
‘000 MT
Average ~10 Average ~13 Average ~15 Avg. ~18
18 17
15 15 15
14
13 13 13
12
11 11
10 10
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18
19Liquid Logistics
20Liquid Logistics and EPC Services
Liquid Logistics (3PL) O&M Services
Shipping Logistics O&M Facilities
Segment Activity Revenue Stream
Throughput Fees, Handling & Value
Liquid Logistics Logistics
Addition Charges
Operations &
O&M Services O&M Fees
Maintenance
21Liquid* Traffic at Indian Ports
POL Traffic Growth at Indian Ports POL Traffic at Major Ports*
mn MT
+38%
Others Haldia
376.7 3% 4% Paradip
Kandla
16%
27%
349.3 350.8 348.3
330.2 Visakhapatnam
325.3
7%
312.6
Chennai
272.0 Kochi 6%
Mumbai
16% 9%
JNPT
2% New
Mangalore
10%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
(P)
Mumbai, Kochi, Haldia, Kandla and Mangalore handle ~70% of the traffic at Major Ports
Liquid – Excludes Chemicals
Source: Indian Ports Association
22
* During April – July 17Greenfield Liquid Terminal Expansion
Greenfield Liquid Terminal Expansion at Greenfield Liquid Terminal Expansion at
Kandla Port – 100,000 KL Mangalore Port – 25,000 KL
Kandla
Gujarat
Mangalore Karnataka
✓ Project Cost
✓ Project Cost
▪ Rs 75 crs ▪ Rs 18 crs
✓ Means of Finance ✓ Means of Finance
▪ Internal Accruals ▪ Internal Accruals
✓ Project Completion Date ✓ Project Completion Date
▪ FY17-18 ▪ FY17 - 18
Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness
23Brownfield Liquid Terminal Expansion
Liquid Terminal Expansion at Haldia Port – 35,000 KL
West Bengal
Phase II Project Cost Means of Finance Project Completion Date
35,000 KL ▪ Rs 35 crs ▪ Internal Accruals ▪ Q1 FY18 - 19
Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness
24Liquid Capacity Post Expansion
01 Mumbai
Built up of Capacities (‘000s KL)
✓ Existing – 273,000 KL 689
02 Kochi Existing
25
✓ Existing – 51,000 KL Expansion 100
03 Haldia
120
✓ Expansion – 35,000 KL 120
✓ Existing – 85,190 KL
85
04 Pipavav 35
✓ Existing – 120,120 KL
273 51
05 Kandla
✓ Expansion – 100,000 KL
06 Mangalore
Mumbai Kochi Haldia Pipavav Kandla Mangalore Total
✓ Expansion – 25,000 KL
Total Capacity post expansion at Kandla & Haldia : ~ 689,000 KL
25Liquid Division Performance
Revenue (Rs. In Cr.) Normalized EBITDA (Rs. In Cr.)
+12% +29%
83 54
75
42
H1FY17 H1FY18 H1FY17 H1FY18
171 97 102
153 154 91
131 84
2013-14 2014-15 2015-16 2016-17 2013-14 2014-15 2015-16 2016-17
26We are leading provider of logistics and supply chain
services to India’s oil, gas and chemical industry
Strategic port locations Storage terminals
Rail connectivity Pipelines
27Unique Infrastructure
Liquids LPG
▪ Terminals at key ports- Mumbai, Kochi, ▪ Refrigerated Gas Terminal in Mumbai
Haldia, Pipavav
▪ Pressurized Gas Terminal in Pipavav
▪ Jetty Pipelines ▪ Pipeline connectivity to Petchem plant
▪ Multiple tank sizes
▪ Network of 107 Autogas stations in 7 states
▪ Coated , Stainless Steel and Heated tanks
▪ Network of 102 commercial distributors in
▪ Road, Rail and Pipeline connectivity 8 states
▪ LPG Sourcing JV with Itochu in Singapore
Integrated Supply Chain Management
28Our Strategy : Building a Necklace of Terminals
around the coastline of India
✓ VLGC
▪ All Ports are Deep Water Ports
to accommodate VLGC
New
Location ✓ Pipelines
▪ Pipeline Facilities for Larger
Customers
Kandla
Pipavav Haldia ✓ Railways
▪ Railways available at Pipavav
Mumbai and can be set up at all ports
except Mumbai
Mangalore New
Location
✓ Roadways
Kochi ▪ Well developed Infrastructure to
enable connectivity to the
customers
Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness
29Strong Industry Partners
30Management Team
Raj Chandaria Anish Chandaria
Chairman & MD Vice Chairman & MD
Sudhir Malhotra Rajiv Chohan
Group President & COO President -Business Development
Murad Moledina K. S. Sawant
Chief Financial Officer President - Operations & Projects
31Financial Performance
Solid Foundations
32Consolidated Profitability Statement [IndAS]
Rs. In Cr. Q2 FY18 Q2 FY17 Y-o-Y % H1 FY18 H1 FY17 Y-o-Y %
Revenue 1,242 677 83% 2,100 1,418 48%
Cost of Sales 1,137 590 1,897 1,245
Others 28 31 59 60
Normalized EBITDA (Segment) * 77 56 38% 144 113 27%
Finance, Hedging & Forex related
4 5 8 9
Expenses (Net)
Depreciation 6 6 12 12
Unallocated Expenses 7 7 15 15
Profit Before Tax 60 37 59% 109 76 43%
Tax 4 10 6 17
Profit after Tax 56 28 103% 103 59 73%
* Normalized EBITDA – Before Forex Hedging Related expenses
33Consolidated Balance Sheet [IndAS]
Rs. In Cr. Sep-17 Rs. In Cr. Sep-17
ASSETS Equity
Non Current Assets 1. Equity Share Capital 33
1. Fixed Assets 947 2. Other Equity 887
2. WIP 352 3. Non Controlling Interest 30
3. Other Intangible Assets 1 Total Equity 951
4. Goodwill 1
5. Financial Assets Non Current Liabilities
1. Financial Liability
i. Other Investments 0
i. Borrowings 59
ii. Other Financial Assets 10
ii. Other Liabilities 13
6. Deferred Tax Asset 51
2. Provisions 11
7. Other Non Current Asset 118
3. Deferred Tax Liability (Net) 81
Total Non Current Assets 1,479
4. Others 2
Total Non Current Liabilities 166
Current Assets
1. Inventories 27 Current Liabilities
2. Financial Assets 1. Financial Liability
i. Other Investments 0 i. Borrowings 379
ii. Trade Receivables 386 ii. Trade Payables 349
iii. Cash and Cash Equivalents 102 iii. Other financial liabilities 200
iv. Other Bank Balances 6 2. Provisions 1
v. Other 7 3. Current Tax Liabilities 7
3. Other Current Assets 73 4. Other current liabilities 27
Total Current Assets 602 Total Current Liabilities 964
TOTAL - ASSETS 2,081 TOTAL EQUITIES AND LIABILITIES 2,081
34Annual Consolidated Profitability Statement [IGAAP]
Rs. In Cr. FY17 FY16 Y-o-Y %
Revenue 3,938 2,213 78%
Cost of Sales 3,567 1,874
Others 125 114
Normalized EBITDA (Segment) * 246 225 9%
Finance, Hedging & Forex related Expenses (Net) 18 16
Depreciation 23 22
Unallocated Expenses 33 34
Profit Before Tax 172 153 12%
Tax 38 27
Profit after Tax 134 126 6%
* Normalized EBITDA – Before Forex Hedging Related expenses
35Consolidated Balance Sheet [IGAAP]
Rs. In Cr. Mar-17 Mar-16 Rs. In Cr. Mar-17 Mar-16
Shareholder’s Fund 602 504 Non-Current Assets 899 651
Share Capital 33 33 Fixed Assets * 784 545
Reserves & Surplus 569 471 Non-Current Investments - -
Minority Interest 29 39
Other Non-Current Assets 115 106
Non-Current Liabilities 130 154
Long Term Borrowings 77 109
Current Assets 838 248
Other Non Current Liabilities 53 45
Inventories 22 12
Current Liabilities 977 202
Short Term Borrowings / Trade Receivables 706 97
177 47
Buyers Credit
Cash and Bank Balances 61 97
Trade Payables 681 77
Other Current Liabilities 118 78 Other Current Assets 50 42
Total Liabilities 1,738 899 Total Assets 1,738 899
* Including Goodwill on Consolidation
36Profit & Dividend Track Record
Dividend
32% 35% 44% 34% 24% 32% 34%
Payout
Rs. In Cr.
Dividend Paid Net Profit 120
113
103
61
47
41
34 36
22 25
21
15 15
8
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
37For further information, please contact:
Company : Investor Relations Advisors :
Aegis Logistics Limited Strategic Growth Advisors Pvt. Ltd.
CIN: L63090GJ1956PLC001032 CIN: U74140MH2010PTC204285
Mr. Murad Moledina, CFO Ms. Payal Dave / Mr. Jigar Kavaiya
murad@aegisindia.com payal.dave@sgapl.net / jigar.kavaiya@sgapl.net
www.aegisindia.com www.sgapl.net
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