Essar Ports Limited€¦ · Vadinar continued to be an award winning asset in FY13 for its world class HSE Cargo Handled Q4 FY12 Q4 FY13 Growth % FY12 FY13 Growth % Cargo (MMT) 9.06

Essar Ports LimitedEssar Ports Limited

Performance Update

Year ended 31st March 2013

Sector Overview

Projected Total Cargo Traffic Growth

885 898 970

1303

10451173

1290

1875

0

500

1000

1500

2000

FY11A FY12A FY13E FY17E

MM

TP

A

� As per Crisil research estimates, Indian Ports

traffic is expected to grow at 8% over next 5 years

� GDP growth is estimated to revive to a range of

6.1% to 6.7% in FY14 from approx 5% in FY13 as

per budget for FY14

� Private investment is the key for revival of India’s

GDP growth

� Lowering of interest rates in FY14 is also likely to

2

Source: Crisil Research

Essar Ports performing better than the industry

Source: Indian Ports Association

0

10

20

30

40

50

60

FY2012 FY2013

43.23

54.52Essar Ports (MMT)

300

400

500

600

FY2012 FY2013

560546

Major Ports (MMT)

FY11A FY12A FY13E FY17ETraffic Capacity

� Lowering of interest rates in FY14 is also likely to

support the growth

� Entry barriers exist on account of delays in project

implementation in terms of:

� Bidding processes

� Approvals

� Execution delays

� The Shipping Ministry has released draft

guidelines linking tariff to market forces, which

would be applicable to all future projects and give

big boost to investments in the sector

Company Overview

Salaya

Paradip I (Dry Bulk)

Hazira

Vadinar

� 20 MTPA Dry Bulk Terminal at Salaya� 14 MTPA Coal Terminal at Paradip*

Operational

Under Construction

� 58 MTPA Liquid Terminal at Vadinar� 30 MTPA Dry Bulk / General Cargo Terminal

at Hazira� 16 MTPA Dry Bulk Terminal at Paradip

3

HaziraINDIA

BAY of BENGAL

INDIAN OCEAN

Paradip II (Coal)

Hinterland for Essar Ports

� 14 MTPA Coal Terminal at Paradip*

� 20 MTPA General Cargo Terminal (expansion) at Hazira

� Liquid Storage Terminal (expansion) at Vadinar

Under Development

� Current capacity of 104 MTPA being scaled up to 158 MTPA by 2015� 3 stand-alone ports on the West Coast and 2 terminals on the East Coast of India. Presence in strategic locations� High visibility on revenue with long term Take-or-Pay contracts � Further scalability possible at most locations � High operating margins at operating ports

* Construction expected to commence shortly

Arabian Sea

Key Highlights

Cargo Handled

Q4 FY13

Q4 FY12

Growth % FY13 FY12

Growth %

Revenue 389.9 296.6 31% 1434.6 1131.1 27%

EBITDA 300.6 243.2 24% 1153.9 913.2 26%

PAT 92.1 -61.5 NA 331.6 64.0 418%

(Figures in Rs Cr)

10

20

30

40

50

60

31.2139.82

12.02

14.15

0.55

54.52

43.23

4

EPS 2.15 NA NA 7.80 1.56 400%

� Essar Ports board recommends a dividend of 5% of face value of the share (Rs 0.5 per share ) for FY13

� Highest ever cargo handled during a year of 54.52 m illion tonnes during FY2013 as against 43.23 million tonnes during FY12

� 14.82 million tonnes of cargo handled during the quarter which is the highest cargo handled in one quarter for Essar Ports

� The Company also recorded the highest ever quarterly revenues, EBITDA and PAT during this quarter

0

FY12 FY13

Vadinar Hazira Paradip Dry Bulk

Vadinar: Highlights

� EOL completed expansion of 20 MMTPA refinery in June 2012 and the according quarterly runrate of 10.5 MMTPA of cargo at Vadinar port achieved as per plan

� Vadinar continued to be an award winning asset in FY13 for its world class HSE

Cargo Handled Q4 FY12

Q4 FY13

Growth % FY12 FY13

Growth %

Cargo (MMT) 9.06 10.54 16% 31.21 39.82 28%

No. of Ships 74 103 39% 271 405 49%

19

22

25

28

31

34

37

40

31.21

39.82

5

� Vadinar continued to be an award winning asset in FY13 for its world class HSE practices. Awards won during the year at India Shipping Summit, Gujarat Star Awards and from The Royal Society for Prevention of Accidents (RoSPA)

� Completed construction of 3 HSD tankages of 180,000KL capacity during the year10

13

16

19

FY12 FY13

Hazira: Highlights

� Won HSE award from Greentech foundation and Best coal port performer award in the Indian Coal Markets conference

� Third party revenues contributed to ~5% of Hazira revenues during FY13

Cargo Handled Q4FY12

Q4FY13

Growth % FY12 FY13

Growth %

Cargo (MMT) 3.30 3.84 16% 12.02 14.15 18%

No. of Ships 71 67 -6% 243 268 10%

9.0

11.0

13.0

15.0

12.02

14.15

6

� Third party revenues contributed to ~5% of Hazira revenues during FY13

� Essar Steel has completed its expansion to 10 MMTPA capacity in January 2012. Plant is expected to ramp up production during the year7.0

9.0

FY12 FY13

Paradip Dry Bulk: Successful operations

� Successfully commissioned the state of the art terminal in

December 2012

� Essar Steel’s first phase of 6 MMTPA Pellet plant already

commissioned and production is expected to reach its peak

capacity soon

� Essar Steel’s second phase pellet plant of additional 6 MMTPA

Q4 FY13 FY13

Cargo (MMT) 0.44 0.55

No. of Ships 8 10

7

capacity is under construction

� Marketing ongoing with third party customers as well

Salaya: Progress

Construction work at Salaya

� Project progress: 59% completed . Expected COD: Dec 2013

� Piling and Decking works completed for Jetty

� Approach trestle to Jetty completed. Bund work has started

� Ship loader erection complete, unloaders erection is under progress

� Stackyard is operational with two stacker cum reclaimers

� Conveyor fabrication is under progress

8

� 1,710 MW of imported coal based power generating capacity already operational

Increasingly diversified cargo split and higher vol umes

FY12 FY13

Crude (SPM), 16.50Liquid

Intermediate, 6.40

Dry Bulk, 12.97

Breakbulk/Project Cargo, 1.73

Crude (SPM), 12.18

Liquid

Dry Bulk, 10.13

Breakbulk/Project Cargo,

1.89

9

Increase in cargo due to ramp up of Essar Oil and E ssar Steel throughput post completion of Essar Oil refinery expansion to 20 MMTPA and Essar Steel expansion to 10 MMTPA

Liquid Product (Jetty), 12.60

Liquid Product (Road/Rail),

4.32

6.40

FY13 Total Volume 54.52 MMT

Liquid Product

(Jetty), 8.29

Liquid Product

(Road/Rail), 4.34

Liquid Intermediate,

6.40

FY12 Total Volume 43.23 MMT

Strong growth in performance

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

1400.0

1600.0

FY11 FY12 FY13

746.5

1131.1

1434.6Revenue (Rs. Crore)

0.0

150.0

300.0

450.0

600.0

750.0

900.0

1050.0

1200.0

FY11 FY12 FY13

550.9

913.2

1153.9EBITDA (Rs. Crore)

10

235% CAGR in EPS highlighting the continued improve ment in the Company’s performance and overall finan cials

0.0

40.0

80.0

120.0

160.0

200.0

240.0

280.0

320.0

360.0

FY11 FY12 FY13

28.564.0

331.6PAT (Rs. Crore)

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

FY11 FY12 FY13

0.691.56

7.80Basic EPS (Rs. per Share)

(Figures in Rs Crore)

Q4FY13 Q4FY12 FY13 FY12

Total Income 389.9 296.6 1434.6 1131.1

Total Expenses 89.3 53.5 280.7 217.9

EBITDA 300.6 243.2 1153.9 913.2

EBITDA Margin 77% 82% 80% 81%

Interest and Finance Expenses 139.1 114.3 510.8 420.8

Profit Before Depreciation and

Financial Performance

� Revenue increase on account ofincreased off-take from anchorcustomers and higher take or paynumbers

� Quarter on Quarter revenue saw agrowth of 31% to Rs 389.9 crore andEBITDA saw a growth of 24% toRs. 300.6 crore

Highlights

Profit Before Depreciation and Tax 161.5 128.8 643.1 492.4

Depreciation 67.5 59.1 244.0 220.3

Profit Before Tax 94.0 69.7 399.1 272.2

Exceptional Item - 235.5 - 235.5

Profit After Exceptional Item and Before Taxes 94.0 -165.8 399.1 36.7

Tax 1.0 -106.4 64.5 -62.2

Adjustment for Share of Minority Interest 0.9 2.1 3.1 34.9

Profit After Tax 92.1 -61.5 331.6 64.0

Basic EPS (Rs) 2.15 -1.45 7.80 1.56

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Rs. 300.6 crore

� PAT for FY13 increased 5 fold to Rs331.6 crore as against Rs 64.0 crorefor the previous year

� EPS for FY13 at Rs 7.80 per share asagainst EPS of Rs 1.56 for FY12

Note: Financials reported as per Indian GAAP

Debt as on 31 st March 2013 (Rs Crore)

Operating 4,156

Project 1,581

TOTAL 5,737

Analyst Contacts

Mr. Anshumali DwivediHead – Investor RelationsEssar Ports LimitedTel: + 91 22 6744 7742 / + 91 98339 45648Email: [email protected]

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Mr. Rakesh KankanalaSenior Manager – Corporate FinanceEssar Ports LimitedTel: + 91 22 6744 7712 / + 91 99301 36596Email: [email protected]

Legal Disclaimer

“This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement withrespect to the purchase or sale of any security of Essar Ports Limited (the “Company” or “EPL” or “Essar Ports Limited”)and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

This presentation is not a complete description of the Company. Certain statements in this presentation contain words orphrases that are forward looking statements. All forward-looking statements are subject to risks, uncertainties andassumptions that could cause actual results to differ materially from those contemplated by the relevant forward lookingstatement. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and therecan be no assurance that future results or events will be consistent with any such opinion, estimate or projection. Theinformation in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete orcondensed and it may not contain all material information concerning the Company. We do not have any obligation to, anddo not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of thispresentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.

All information contained in this presentation has been prepared solely by the Company. No information contained hereinhas been independently verified by anyone else. No representation or warranty (express or implied) of any nature is madenor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of anyinformation, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither theCompany nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on thispresentation or its contents or otherwise arising in connection therewith. This presentation may not be used, reproduced,copied, distributed, shared or disseminated in any other manner.

The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession thispresentation comes should inform them about, and observe, any such restrictions.”

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