Allcargo Logistics Ltd — Investor Presentation 2021

Jun 24, 2021

Listing Compliance and Legal RegulatoryBSE Limited	Listing and ComplianceNational Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers,	Exchange Plaza, C-1, Block G
Dalal Street, Fort,	Bandra Kurla Complex,
Mumbai – 400 001	Bandra (East),
	Mumbai – 400 051
BSE Scrip Code: 532749	NSE Symbol: ALLCARGO

June 24, 2021

Dear Sirs,

Sub: Investors' Earnings Presentation

Pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Listing Regulations"), read with Part A of Schedule III of the Listing Regulations, we are attaching herewith the Investors' Earnings Presentation for the quarter and year ended March 31, 2021.

Pursuant to Regulation 46(2)(o) of the Listing Regulations, the aforesaid information is also available on the website of the Company i.e. www.allcargologistics.com.

Thanking You, Yours Faithfully, For Allcargo Logistics Limited

Devanand Mojidra Company Secretary & Compliance Officer

_____________________________________________________________________________________________________________________

F Y 2 1 / Q 4 – F Y 2 1 EARNINGS PRESENTATION

Overview

• Allcargo Logistics was incorporated in 1993 by the Chairman Mr. Shashi Kiran Shetty.
• Headquartered in Mumbai, Allcargo is the largest private sector integrated multinational logistics company in India.
• The company was listed on both the BSE & NSE in June 2006 and has a current market cap of ~INR 36.1 Bn as on 23rd June, 2021.
• Well capitalized & diversified business spread across geographies.
• Strong management team with experienced industry professionals of over 4,500.

Allcargo has a diversified presence across multiple logistics sectors including ocean & airfreight-forwarding, container freight stations (CFS), inland container depots (ICD), project cargo, equipment rental, Logistics Parks, supply chain management and express logistics.

Business Verticals

MTO	•Strong network of over 300 offices in more than 180 countries.•All acquisitions in MTO segment have been EPS accretive and cash flow positive from start of integration•Asset-light business strategy, focus on RoCE•Domestic consolidation movements connected to ICDs, CFS for export and import•Dedicated hazardous cargo movement and automated real time shipment status update and online tracking
CFSICD	•One of the largest CFS operators with state of the art facilities at JNPT, Chennai, Mundra and Kolkata (whichdrives 80% of India's container traffic with total installed capacity of ~500,000 TEUs.•COVID reinstate importance of CFS's. Direct port Delivery (DPD) issue bottomed. Increased the customer basethrough deeper market penetration and business excellence.
Expres	•Pan-India, industry leading express network covering 99% of GoIapproved pin codes.•Capabilities and established engagements managing supply chain of multiple sub-sectors•Transformation initiatives aimed to regain market leadership in the segment.•Focus on core competences and divest/sell non-core low RoCEsegments.
LP	•Developing existing land bank mapped to the current demand foreseen in Grade A warehouse. Allcargo is in agreat spot to get economies of a scale.•Consumption drive and infrastructure development would boost multi modal logistics parks with capability ofserving all types of cargo.•Logistics parks would have to provide warehousing, contract logistics and first and last mile connectivity.
Other	•The company has a network of warehouses across 45 locations in India•State-of-the-art facilities that are scalable & customized, with strong IT infrastructure and stringent adherence tocompliance•Geared up to meet the huge demand driven by stabilization of GST and e-commerce drive.•Multi-sectors serviced: Power (thermal, solar, wind and transmission lines), Oil & Gas, Refineries, Cement, Steel,Ports and Infrastructure.

FY21 / Q4–FY21 EARNINGS OVERVIEW

Consolidated Q4-FY21 Financial Performance

INR 33,493 MnRevenue fromOperations	INR 1,930 MnEBITDA	5.76 %EBITDA Margins
INR 59 MnNet Profit	0.18 %PAT Margins	INR (95) MnTotal ComprehensiveIncome
INR 2.19/ShareDiluted EPS

Consolidated FY21 Financial Performance

Consolidated Q4-FY21 Segmental Revenue Consolidated FY21 Segmental Revenue

Others

8 Q4-FY21 CONSOLIDATED INCOME STATEMENT (IND-AS)

Particulars (INR Mn)	Q4-FY21	Q4-FY20	Y-o-Y	Q3-FY21	Q-o-Q
Revenue from Operations	33,493	18,710	79.0%	27,347	22.5%
Expenses	31,563	17,646	78.9%	25,871	22.0%
EBITDA	1,930	1,064	81.4%	1,476	30.8%
EBITDA Margin (%)	5.76%	5.69%	7 Bps	5.40%	36 Bps
Other Income	108	176	(39.0)%	135	-20.0%
Finance cost	320	293	9.2%	290	10.3%
Depreciation and amortisation expenses	855	602	42.0%	748	14.3%
PBT before associates& joint ventures	863	345	150.1%	573	50.6%
Share of profit from associates and joint ventures	104	34	205.9%	34	NA
Exceptional items	(812)	273	NA	(206)	NA
Profit before tax	155	652	(76.2)%	401	(61.3)%
Tax expense	96	111	(13.5)%	387	(75.2)%
PAT	59	541	(89.1)%	14	321.4%
PAT Margin(%)	0.18%	2.89%	(271)Bps	0.05%	13 Bps
Other Comprehensive income	(154)	202	NA	3	NA
Total Comprehensive income	(95)	743	NA	17	NA
Diluted EPS (INR)	2.19	2.12	3.3%	0.57	NA

9 FY21 CONSOLIDATED INCOME STATEMENT

Particulars (INR Mn)	FY21	FY20	Y-o-Y
Revenue from Operations	1,04,981	73,462	42.9%
Expenses	98,643	68,428	44.2%
EBITDA	6,338	5,034	25.9%
EBITDA Margin (%)	6.04%	6.85%	(81) Bps
Other Income	553	413	33.9%
Finance cost	1,356	685	98.0%
Depreciation and amortisation expenses	3,061	2,316	32.2%
PBT before associates& joint ventures	2,474	2,446	1.1%
Share of profit from associates and joint ventures	170	61	NA
ExceptionalItems	(1,053)	547	NA
Profit before tax	1,591	3,054	(47.9)%
Tax expense	640	711	(10.0)%
PAT	951	2,343	(59.4)%
PAT Margin(%)	0.91%	3.19%	(228) Bps
Other Comprehensive income	36	353	(89.8)%
Total Comprehensive income	987	2,696	(63.4)%
Diluted EPS (INR)	7.04	9.08	(22.5)%

Key Operational Highlights in MTO for Q4-FY21:

• Shortage continues across the globe for ocean shipment both FCL/LCL. Ocean Export freight rates continues to remain near its highest for Latin America, South America, North America, Australia & Africa
• Different waves of pandemic led to disruptions and impacted volumes to an extent but the same was compensated by higher freight environment. Q4 volumes returned to normalcy.
• ECU360 continues to gain traction and is increasing share in overall bookings facilitating customers through digital interface.
• Despite uncertainty and tough operating environment, FY21 ROCE slightly improved +24% levels

Segment Financials

Revenues (INR Mn) Global Volumes (00s TEUs) EBIT Margin

Quarterly Volumes (TEUs) Quarterly Revenues (INR Mn)

Key Operational Highlights for Q4-FY21:

• Q1 witnessed significant drop in volumes but increased dwell time. Volumes recovered in Q2 and Q3 and Q4 witnessed strong growth in volumes.
• Port volumes registered strong growth in Q4, however volumes have taken a hit since then on account of second wave led lockdowns.
• CFS infrastructure played a big role in decongesting ports in crucial times during pandemic and helped India's exports and imports grow without constraints.
• RoCE for FY21 stood at 43% driven by higher capacity utilization and value added services aiding realization

Segment Financials

Quarterly Revenues (INR Mn)

Volume Numbers : EXCL Dadri

EXPRESS & CONTRACT LOGISTICS: Segment Financials (INR MN)

Key Operational Highlights for Q4-FY21

• Express Business under Gati continued to witness strong growth in Q4 recording highest ever volume and revenue for core B2B surface express business.
• Transformation program continues to drive improved sales, operations and digital enablement of business.
• Contract Logistics Business under ACCI witnessed strong growth despite pandemic registering an increase of 54% YoY in revenues. The growth was largely driven by e-commerce and chemical vertical.

Key Operational Highlights for Q4-FY21

• Development and construction of logistics parks is on schedule and nearly complete in key locations excluding recent acquisitions.
• Lease income from warehouses continues to rise and the trend will continue as more space gets ready and leased.
• The company's transaction with Blackstone will reduce its shareholding to a strategic minority holding of 10%. The transaction has seen delays due to Covid-impact on getting certain approvals, however the work is in progress now.

Key Operational Highlights for Q4-FY21:

14

• Project Logistics has seen strong growth in order book, increasing from Rs 1.4 bn at the start of FY21 to Rs 1.9 bn at the end of FY21
• Focus on infrastructure growth and development of new metro and renewable power projects is likely to provide good opportunity in future.
• Crane utilization has steadily improved after a challenging Q1 and now is better than previous years
• Company is focused on rationalizing its fleet to make the overall fleet younger.
• ROCE remains low due to significant depreciation on equipment.

Segment Financials

HISTORICAL FINANCIAL OVERVIEW

16 HISTORICAL CONSOLIDATED INCOME STATEMENT

Particulars (INR Mn)	FY19	FY20	FY21
Revenue from Operations	68,949	73,462	1,04,981
Expenses	64,464	68,428	98,643
EBITDA	4,485	5,034	6,338
EBITDA Margin (%)	6.50%	6.85%	6.04%
Other Income	338	413	553
Finance cost	295	685	1,356
Depreciation and amortisation expenses	1,559	2,316	3,061
PBT before associates, joint ventures	2,969	2,446	2,474
Share of profit from associates and joint ventures	52	61	170
ExceptionalItems	-	547	(1,053)
Profit before tax	3,021	3,054	1,591
Tax expense	542	711	640
PAT	2,479	2,343	951
PAT Margin(%)	3.60%	3.19%	0.91%
Other Comprehensive income	(127)	353	36
Total Comprehensive income	2,352	2,696	987
Diluted EPS (INR)	9.85	9.08	7.04

Equity and Liabilities (INR Mn)	FY20	FY21
Equity
Equity share capital	491	491
Other equity	20,966	22,344
Equity attributable to equity holders of theparent	21,457	22,835
Non-controlling interest	266	3,314
Total Equity	21,723	26,149
Non-current liabilities
Financial liabilities
Lease Liability	1,437	2,514
Borrowings	7,967	7,167
Other financial liabilities	249	320
Long term provisions	25	25
Net employment defined benefit liabilities	7	123
Deferred tax liability (net)	128	1,471
Other non-current liabilities	70	90
Total Non-current liabilities	9,883	11,710
Current Liabilities
Financial liabilities
Lease Liability	617	603
Borrowings	4,395	6,912
Trade payables	8,527	13,889
Other payables	654	1,420
Other financial liabilities	2,185	9,446
Net employment defined benefit liabilities	432	534
Other current liabilities	4,526	2,978
Income tax liabilities (net)	195	961
Total Current liabilities	21,531	36,743
Total equity and liabilities	53,137	74,602

Assets (INR Mn)	FY20	FY21
Non Current Assets
Plant, Property & Equipment (net)	12,099	15,614
Rightuse of assets	2,026	3,059
Capital Work in Progress	2,690	1,679
Investment Property (net)	326	320
Goodwill on Consolidation	3,365	5,664
Total Intangible assets (net)	1,864	5,334
Intangible Assets under Development	3	3
Investments in joint ventures and associates	4,134	2,534
Investments	893	395
Loans	492	986
Other financial assets	118	165
Deferred tax assets (net)	1,220	1,921
Income tax assets (net)	187	1,053
Other non-current assets	847	720
Total Non-Current Assets	30,264	39,447
Current Assets
Inventories	78	97
Investments	70	311
Loans	570	668
Trade receivables	11,501	21,757
Cash and cash equivalents	2,493	3,068
Other bank balances	587	744
Other financial assets	2,798	4,231
Income tax assets (net)	130	128
Other current assets	4,646	2,476
Assets classified as held for sale	-	1,675
Total Current Assets	22,873	35,155
Total Assets	53,137	74,602

Price Data (As on 31stMarch 2021)
Facevalue (INR)	2.00
Market Price (INR)	123.55
52 WeekH/L (INR)	155.15/ 57
Market Cap(INR Mn)	30,355.68
EquityShares Outstanding (Mn)	245.7
1 Year Avg.trading volume ('000)	407.8

Institutional Holding Acacia 8.20% SBI Mutual Fund 2.23% Singapore Government Pension Fund Global 2.22% Ellipsis Partners LLC 1.20%

Shareholding Structure (As on 31st March, 2021)

Allcargo Logistics Ltd. Disclaimer:

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Allcargo Logistics Ltd., which are expressed in good faith and in their opinion reasonable, including those relating to the Company's general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forwardlooking statements, including future changes or developments in the Company's business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. 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 securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.

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

Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and 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. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

Mr. Ravi Jakhar Group Chief Strategy Officer Tel: 91-98671 54321 Email: ravi.jakhar@allcargologistics.com

Mr. Anuj Sonpal Valorem Advisors Investor Relations Management Tel: 91-22-4903 9500 Email:allcargo@valoremadvisors.com

THANK YOU