Aegis Logistics Ltd. — AGM Information 2020

Sep 23, 2020

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September 23, 2020

To, The Secretary, Capital Market Operations Market Operations Department, The National Stock Exchange of India Ltd. The Bombay Stock Exchange Ltd. Exchange Plaza, 5[th] Fl., Plot No.C/1, Phiroze Jeejeebhoy Towers, G Block, Bandra-Kurla Complex, Dalal Street, Fort, Bandra (E), MUMBAI – 400 023. MUMBAI – 400 051. Scrip Code: 500003 Scrip Code: AEGISCHEM

Dear Sir,

Sub : Chairman’s Speech at the 63[rd] Annual General Meeting (AGM)

We enclose herewith the Chairman’s speech delivered at the 63[rd] Annual General Meeting (AGM) of the Members of the Company held on Tuesday, 22nd September, 2020, through Video Conference (‘VC’)/ Other Audio Visual Means (‘OAVM’) facility.

Thanking you.

Yours faithfully, For AEGIS LOGISTICS LTD.

MONICA TANAY GANDHI Digitally signed by MONICA TANAY GANDHI DN: c=IN, o=Personal, postalCode=400103, st=Maharashtra, 2.5.4.20=bfcd0496b6ad8dbe85c6e295131edf2724fb1f75dbab3e12cc362421518aee99, serialNumber=35515a2f6b0d07209007b815dfe26589133732d888953a51287c5c2eb3d4f728, cn=MONICA TANAY GANDHI Date: 2020.09.23 13:43:10 +05'30'

MONICA GANDHI COMPANY SECRETARY

Encl. : a/a

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CHAIRMAN’S SPEECH

“Building an Unrivalled Network of Liquid and Gas Terminals”

63[rd] Annual General Meeting

Tuesday, September 22, 2020 (Through Audio Video mode)

Aegis Logistics Limited 1202, 12[th] Floor, Tower B, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel (W), Mumbai 400 013

Dear Members of Aegis Logistics Limited,

Ladies and Gentlemen,

I trust all of you are safe and healthy at place from where you are attending Meeting. On behalf of the Board of Directors, I thank you all for your kind presence here today.

The company has made its all efforts feasible under the circumstances to enable shareholders to participate in AGM and vote on the items being considered in the meeting as per guidance of MCA and SEBI.

With pleasure, I would like to share with you the highlights of the progress made by Aegis Group since we met twelve months back.

MACRO ECONOMIC OUTLOOK

The Indian macro-economic performance during the year 2019-20 can be characterized as slow but steady at 4.12%. The month of March 2020 saw the imposition of a national lockdown which did not impact the Company during the previous fiscal year, but will impact the business the national economy during 2020-21.

The oil, gas and chemical sector in which the Company operates is amongst the core industries in India that impacts all the other sections of the economy and the Company’s growth is closely linked to the energy demand. The policies adopted by the Indian government such as allowing 100 per cent foreign direct investment (FDI) in many segments of the economy and government measures to provide cleaner cooking fuel to rural households, remain the key drivers to our business.

BUSINESS PERFORMANCE AND MAJOR MILESTONES

The Company had a good performance in FY20 with Profit after Tax (normalised for ESPP) increasing from Rs. 252.11 Crore to Rs. 372.75 Crore and normalised Earnings per Share rising to Rs.10.01 in FY20 on consolidated basis. The Company is in a strong financial position with Cash and Cash equivalents in excess of Rs. 222 Cr and a very low debt to equity ratio at 0.03 on 31 March 2020. The Board was pleased to declare one interim dividend of Re. 0.50 per share of Rs. 1 each. Further, the Board of Directors of the Company has recommended Rs. 1.20 per share as final dividend on the face value of Rs. 1 each, which is subject to the approval of members at this Annual General Meeting.

GROUP STRATEGY & GOALS

Consistent with our vision of being the leading provider of logistics and supply chain services to India's oil gas and chemical industry, the Group strategy is clear. We will build an unrivalled network of liquid and LPG tank terminals at key ports around the coastline of India, with an emphasis on safety, environmental standards and high customer service.

Aegis's terminals are strategically located at key ports and in addition, pipelines from ports to inland demand centres are advantageous for Aegis' current and upcoming terminals. Also the strong customer relationships have enabled higher utilization of the Company’s terminal capacities.

I would like to highlight below the progress made by the Company with respect to the expansions approved by the Board of Directors in line with our strategy:

• The Company had earlier announced the setting up of additional tankage with the storage capacity of 40,000 KL beyond the existing 1,00,000 KL storage capacity at Kandla Port, which is now operational.

• The setting up of additional storage capacity of 50,000 KL beyond the existing storage capacity of 25,000 KL at Mangalore is expected to be completed by FY 2021.

• The Company has also approved addition of 20,000 KL of bulk liquid tankage beyond the existing 51,000 KL at Kochi Port, which is expected to be completed by FY 2021.

• The expansion of 12,000 KL of bulk liquid terminals at Haldia over and above the existing capacity of 1,20,000 KL is expected to be completed by FY 2021

• In order to cater to the rising demand, the Company is setting up a new LPG terminal of the capacity of 45,000 MT at Kandla, which is expected to be completed in FY 2021.

• The expansion of LPG storage capacity at Pipavav by 3,800 MT over and above the existing 18,300 MT and setting up a LPG railway gantry is expected to be completed by FY 2021.

• With this expansion, Aegis will retain its leadership position in both liquid and gas terminals.

• The company will be adding other logistics capabilities to its terminal facilities to offer better services to key customers.

• The Company will continue to participate in tenders for additional leased land at various ports.

• We continue to make steady progress in expanding our autogas retailing footprint and packed LPG cylinder distribution with the launch of new cylinder packages.

COMMITMENT TO WORLD CLASS STANDARDS

The Group is committed to continuous improvement and to high Health, Safety and Environmental standards. The Company is proud to have been awarded and recertified for the ISO 14001:2004, OHSAS 18001:2007 as well as ISO 9001:2008 standards for its flagship terminals at Mumbai port.

Lastly, I wish to thank the Board of Directors for their immense support. I am also grateful to the Central and State Governments where Aegis operates, the Port Trust and other Port authorities, all our stakeholders, investors, bankers, financial institutions, suppliers and customers for their consistent and resolute support and confidence in us. I also wish to acknowledge the contribution of the employees who have been our strength in the progress of the Company.

Raj K. Chandaria (Chairman of the Meeting)

22[nd] September, 2020