#1Spotlight on Krishnapatnam Port Adani Ports and SEZ Ltd., December 2020. adani Ports and Logistics#2Contents A Group profile B C D Company profile Krishnapatnam port (KPCL) the transformative asset KPCL assets - Marine, Terminal and Evacuation Infrastructure E KPCL operational efficiency post agreement FL G H KPCL future outlook ESG, CSR Annexure adani Ports and Logistics 2#3Adani Group: A world class infrastructure & utility portfolio 63.5% Transport & Logistics APSEZ Port & Logistics Portfolio 100% AAPT Abbot Point 100% AAHL Airports 100% 100% SRCPL Rail adani 75% AEL Incubator TM Energy & Utility Portfolio 75% ATL T&D 75% APL IPP 75% AGEL Renewables 100% 100% ARTL Roads AWL Water Data Centre ~USD 54 bn¹ Combined Market Cap 37.4% AGL Gas DisCom Adani • • • . • • adani Ports and Logistics Marked shift from B2B to B2C businesses- AGL Gas distribution network to serve key geographies across India AEML - Electricity distribution network that powers the financial capital of India Adani Airports - To operate, manage and develop eight airports in the country Locked in Growth 2020 - Transport & Logistics - Airports and Roads Energy & Utility - Water and Data Centre Opportunity identification, development and beneficiation is intrinsic to diversification and growth of the group. 1. As on November 27, 2020, USD/INR - 74 | Note - Percentages denote promoter holding Light purple color represent public traded listed verticals 3#4adani Ports and Logistics Adani Group: Decades long track record of industry best growth rates across sectors Port Cargo Throughput (MT) Renewable Capacity (GW) Transmission Network (ckm) CGD7 (GAs covered) 5% 2.5x 12% 25% 6x 161% 7% 21% 3x 1.5x 30% 45% Industry adani Industry adani Industry adani Industry adani 2014 2020 972 MT 1,339 MT 113 MT 223 MT 2016 2020 46 GW 114 GW 0.3 GW 14.2 GW6 2016 2020 320,000 ckm 423,000 ckm 6,950 ckm 14,837 ckm 2015 2020 62 GAs 228 GAS 6 GAS 38 GAS APSEZ Highest Margin among Peers globally EBITDA margin: 70%1,2 Next best peer margin: 55% AGEL developer Worlds largest EBITDA margin:89%1,4 Next best peer margin: 53% ATL Highest availability among Peers EBITDA margin: 92% 1,3,5 AGL India's Largest private CGD business EBITDA margin: 31%1 Next best peer margin: 30% Next best peer margin: 89% Transformative model driving scale, growth and free cashflow Note: 1 Data for FY20; 2 Margin for ports business only, Excludes forex gains/losses; 3 EBITDA = PBT + Depreciation + Net Finance Costs - Other Income; 4 EBITDA Margin represents EBITDA earned from power sales and exclude other items; 5. EBITDA margin of transmission business only, does not include distribution business. 6. Contracted & awarded capacity 7. CGD - City Gas distribution GAS 8. Geographical Areas - Including JV 4#5Adani Group: Repeatable, robust & proven transformative model of investment Activity Performance Phase Origination Analysis & market intelligence Viability analysis Strategic value • Development Site Development • Site acquisition Construction Operations Operation • . Life cycle O&M planning • adani Ports and Logistics Post Operations Capital Mgmt Redesigning the capital structure of the asset Operational phase funding consistent with asset life India's Largest Commercial Port (at Mundra) Highest Margin among Peers Concessions and regulatory agreements Investment case development Longest Private HVDC Line in Asia (Mundra Mohindergarh) Highest line availability Engineering & design Sourcing & quality levels Equity & debt funding at project Largest Single Location Private Thermal IPP (at Mundra) High declared capacity of 89%1 Asset Management plan 648 MW Ultra Mega Solar Power Plant (at Kamuthi, Tamil Nadu) Constructed and Commissioned nine months in In FY20 issued seven international bonds across the yield curve totalling-USD4Bn All listed entities maintain liquidity cover of 1.2x-2x as a matter of policy. 1. FY20 data for commercial availability declared under long term power purchase agreements; 14% 33% 47% 31% 55% 20% March 2016 March 2020 PSU - Pvt. Banks • Bonds 5#6Company Profile adani Ports and Logistics#7APSEZ: A transport utility with string of ports and integrated logistics network Achieving East Coast - West Coast Parity adani Ports and Logistics String of Ports Twelve Ports ~490 MMT of augmented capacity. Setting benchmark in turnaround time across industry. • Single window service & excellence in operations resulting in world's best port EBITDA margin ~70% Logistics Platform 54% 67% 66% FY15 8% 92% Capacity 490 MMT FY20 33% • Hinterland reach of >90% 972 Achieving East and West Coast Parity 113 101 Multi pronged growth in logistics business to amplify end mile connectivity. • Embedded ESG Framework for securing value. 12 ■West Coast Mundra East Coast Cargo Growth Comparison 223 1339 139 All India CAGR -5% APSEZ CAGR -12% 84 Mundra CAGR 5% Ex- Mundra CAGR 38% FY14 FY15 FY16 FY17 FY18 FY19 FY20 Mundra APSEZ APSEZ ex-Mundra All India (IPA) Consistent gain market share and grew at 2.5x of market, led by Non-Mundra Ports CAGR of 38% 7#8APSEZ : Largest private transport utility String of Ports Ports of Prosperity Ports One to twelve in twenty years "Transport Utility" SEZ 13k+* Ha of Land Bank *Includes both SEZ and non SEZ land Integrated Logistics (CTO to IWW & AFS an organic evolution) APSEZ Dhamra Port - adani Ports and Logistics Import - Coking coal 2x Port income Export - Steel (HRC/CRC) Port gate to customer gate model intertwined to customer's supply chain. Warehousing - 2x Warehousing income Warehousing Rail - GPWIS 2x Rail income Rail - GPWIS Customer Tata Steel Plant An integrated approach through Ports, SEZ and Logistics creating a multiplier effect 8#9APSEZ: Largest network of ports in India West Coast Capacity 327 MMT Dahej 14 MMT Moga Kanech Tuna 14 MMT Karaipur Kotkapura Dhamora Patli Kannauj Kishangarh East Coast Capacity 163 MMT Samastipur and Darbhanga Katihar Mundra Vidisha 264 MM Dahod Harda Hoshangabad Satna Ujjain Dewas Nagpur Taloja Hazira Borivali 30 MMT Mundra - India's Largest Commercial Port by Volume Kolkata Vizag MMT Dhamra 45 MMT Krishnapatnam Malur 64 MMT Kattupalli 18 MMT Mormugao 5 MMT Container Terminals Bulk Terminals Multipurpose Ports Silos CFS/EXIM Yard. Logistics Park Coimbatore Ennore 12 MMT Logistics Park Vizhinjam under construction 18 MMT Silos under construction FY06 Evolution of APSEZ FY21 1 Port 12* adani Ports and Logistics 10 MMT Capacity 490 MMT FY07 FY21 1 Logistics Park 5 6 Trains 60 12 ports serving vast economic hinterland of the country *Two port under construction (Vizhinjam & Myanmar) | Capacity excludes Myanmar 9#10APSEZ: Financial discipline and prudent policy creates value · Capital Management Investment Grade rated since FY16 Improve leverage ratio (from 4.4x to 2.9x) Incremental earnings deployed for growth (EBIDTA CAGR of 13% with constant Net Debt) Forex denominated long term debt • Strategy based on underlying FX earnings FX revenue as a percentage of FX debt continues to be stable Exponential increase in FX earnings to FX debt • service coverage 221 204 207 186 179 4.4 Net Debt (INR Bn) 3.4 Net Debt/EBITDA 2.9 2.9 2.5 FY16 FY17 FY18 FY19 FY20 2.9x 2.8x 2.7x 2,652 2,163 2,129 1,888 1.5× 1,978 Capital Allocation 0.7x 330 371 410 430 273 • New projects - Pre-tax project IRR of 16% • ROCE to be higher than cost of capital FY16 FY17 FY18 FY19 FY20 Capital flow mirrors growth vision adani Ports and Logistics Absolute net debt and FX debt obligation consistent with net debt to EBITDA coming down consistently FX Revenue Total FX Debt FX Maturity Coverage 10#11Krishnapatnam port (KPCL) the transformative asset adani Ports and Logistics#12adani Ports and Logistics APSEZ : Krishnapatnam port - Location of the asset Visakhapatnam Port Gangavaram Port Telangana Kakinada Port • • Krishnapatnam Port Located on east coast of India in Nellore district of Andhra Pradesh. (~180 km north of the Chennai Port) Largest private port on the east coast & the 2nd largest private port in the country BOST* Concession Model for 50 years Andhra Pradesh Krishnapatnam Port Kattupalli Port Kamarajar Port Chennai Port • Nearby Ports: Chennai Port - 200 km • Kamarajar Port (Ennore) - 180 km • Kakinada Sea Port - 520 km • Gangavaram Port Visakhapatnam Port - 660 Km - 665 km All weather deep water port, capable of handling cape size vessels. *BOST: Built operate share and transfer 12#13APSEZ: Krishnapatnam port the value accretive acquisition Shareholding APSEZ-75% Continuing Promoter - 25% KPCL Enterprise Value of INR 12,000 cr. and expected EBITDA for FY 21 to be around INR 1,200 cr. resulting in acquisition EV/EBITDA multiple of 10x Particulars APSEZ trades @ EV/EBITDA multiple of ~17x KPCL acquisition @ EV/EBITDA of 10x enhances APSEZ's value Amount in Rs. cr. Enterprise value 12,000 Total debt 7,500 Total equity 4,500 APSEZ share (75%) 3,375 adani Ports and Logistics 13#14APSEZ : Krishnapatnam port - Infrastructure PHASE-I & II (Developed) Phase-III (To be Developed) Mangrooves & Green Belt • • adani Ports and Logistics Port at a glance Master plan has an approved capacity of 300 MMT pa. Current capacity of 64 MMT pa. Waterfront of 20 km. under the concession with deep draught of 18.5 meters Port land of 3,064 acre developed out of 6,800 acre of available land Adequate waterfront and land bank for future development to capture growth 14#15APSEZ: KPCL - Salient features of concession Concession Period and its extension Concession is for 30 years from COD with automatic extension of 2 blocks of 10 years each Concession Start / End Concession started from March 2009/March 2059 Year March 2009 to February 2039 % of Gross Revenue 2.6% Revenue share to GoAP as % of Gross Income March 2040 to February 2049 5.2% March 2050 to February 2059 10.4% Terminal value at concession expiry Higher of fair market value as determined by experts or the debt outstanding at the end of concession period. Residual Concession Life of 39 years adani Ports and Logistics 15#16APSEZ : Krishnapatnam port - Hinterland reach पुणे Hinterland adani Ports and Logistics Gulbarga TELANGANA హైదరాబాద్ Kolhapur कोल्हापूर deanon Hyderabad Belgaum ಬೆಳಗಾವಿ GOA Hubli ಹುಬ್ಬಳ್ಳಿ KARNATAKA Anantapur అనంతపురం ANDHRA PRADESH Mangalore ಮಂಗಳೂರು Mysuru ಮೈಸೂರು Tirupati తిరుపతి Bengaluru ಬೆಂಗಳೂರು TAMIL NADU Visakhapatnam విశాఖపట్నం Vijayawada విజయవాడ Kakinada కాకినాడ Krishnapatnam Port Chennai A&GOT 607 60T PUDUCHERRY Tiruchirappalli திருச்சிராப்பள்ளி Central & Southern Andhra Pradesh, Telangana and Eastern Karnataka Port caters to thermal power, cement plants & edible oil refinery cluster Attracts export commodities like Agri, cement, minerals, fish products (reefer), etc. through container cargo Nearby Major Cities: • Chennai Hyderabad Bangalore Visakhapatnam - 175 km - 475 km - 390 Km - 650 km Madurai SHADWEEP Kochi 2021 மதுரை 16#17APSEZ : Krishnapatnam port - Inter and intra connectivity Junction with NH5 NH5 (Chennai to Kolkata) Dedicated KPCL 4 Lane Road adani Ports and Logistics Road Connectivity Internal road network of 55 Kms • Connected by 25 kms long dedicated four-lane road with lane NH-5 Chennai four Kolkata corridor • Upgradation of the 4 lane to 6 lane road is in progress with ROW of 60 m 17#18adani Ports and Logistics APSEZ : Krishnapatnam port - Inter and intra connectivity Chennai Kolkata Main Rail Line Venkatachalam Rail Connectivity Krishnapatnam Rail Co. Ltd. (KRCL) - SPV formed for rail connectivity to Port Works Executed by SPV: Double Rail Line from Venkatachalam to Port. (15 Km) with ROW of 30 m Single Rail Line from Venkatachalam to Obulavaripalle (91 km) Share-Holding Pattern of KRCL (SPV): Krishnapatnam Port . RVNL - 49.76% . KPCL - 12.96% • GOAP - 05.60% • • Sagarmala NMDC - 20.00% - 06.40% Bramhani Industries - 02.58% Internal Track length of 52 kms of which 35 kms is electrified, Capacity of 60 rakes per day Connected through an electrified double rail line to Venkatachalam road junction, which is 15 kms from the port, which has access to Chennai-Kolkata trunk route 18#19KPCL assets - Marine, Terminal and Evacuation Infrastructure adani Ports and Logistics#20APSEZ : Krishnapatnam port - Infrastructure Terminal 1 Terminal 4 Terminal 2 Terminal 5 Terminal 3 Break Waters Channels Break Waters 20 adani Ports and Logistics#21APSEZ : Krishnapatnam port - Details of Terminal Infrastructure Quay Length Terminal No (m) Capacity (MT) Cargo type Container adani Ports and Logistics Terminal -1 1200 21 General Dry Cargo Terminal -2 600 14 General Dry Cargo Terminal -3 600 16 Terminal -4 600 00 8 Terminal -5 300 5 Coal (Mechanized) General Dry Cargo Vegetable Oil General Dry Cargo Total: 3300 64 21 21#22APSEZ: Krishnapatnam port - Marine infrastructure - Terminal -1 adani Ports and Logistics Terminal-1 Capacity: 21 MMT Quay length: 1200 Mt. Cargo Type: Containers & General Cargo 22#23APSEZ : Krishnapatnam port - Marine infrastructure - Terminal -2 adani Ports and Logistics Terminal-2 Capacity: 14MMT Quay length: 600 Mt. Cargo Type: General Cargo 23#24APSEZ : Krishnapatnam port - Marine infrastructure - Terminal -3 adani Ports and Logistics PCL Terminal-3 Capacity: 16 MMT Quay length: 600 Mt. Cargo Type: Coal (Mechanized) 24#25APSEZ : Krishnapatnam port - Marine infrastructure - Terminal-4 adani Ports and Logistics Terminal-4 Capacity: 8 MMT Quay length: 600 Mt. Cargo Type: General Cargo & Veg Oil 25#26APSEZ : Krishnapatnam port - Marine infrastructure - Terminal -5 adani Ports and Logistics Terminal-5 Capacity: 5 MMT Quay length: 300 Mt. Cargo Type: General Cargo 26#27APSEZ : Krishnapatnam port - Infrastructure Ports Land owned (Acre) Waterfront Water Depth (kms) (Mts) Capacity (MMT) Berths (Nos) Quay Length (Mts) Vessels per annum (Nos) Krishnapatnam 3,064 20 18.5 64 12 3,300 1,400 Mundra 40,000 40 18.5 264 29 8,038 3,068 Dhamra 3,757 16 18.5 45 5 1,666 850 • Well developed infrastructure positioned to meet future growth requirements Adequate infrastructure already built to expand capacity without much capex. adani Ports and Logistics 27#28APSEZ : Krishnapatnam port - Infrastructure Ports Cranes (No) Mobile Locos Ground Storage Storage Equipments* (No) (No) Slot (No) Open (acre) Covered (Sq. mt) Krishnapatnam 22 312 6 5,000 608 2,06,000 Mundra 62 197 7 34,092 495 3,19,000 Dhamra 10 26 1 NA 95 33,750 Port has adequate modern implements to handle multi cargo with adequate storage facility adani Ports and Logistics 28#29KPCL operational efficiency post agreement adani Ports and Logistics#30APSEZ : Krishnapatnam Port - Post signing of agreement focused on improving EBITDA by business process re-engineering adani Ports and Logistics EBITDA margin expanded from 54% in Jan '20 to 70% in Oct '20, Operational process. Contracting process. a. Vendor process - Cash outflow b. Customer process - Revenue generation Rationalization of overheads. Resulted in permanent EBITDA improvement of more than Rs.300 cr. p.a. Achieved without incremental capex and through optimum utilization of existing facility 30#31APSEZ : Krishnapatnam Port - Focusing on improving EBITDA by Operation Process Pilot allocation optimized. Shore power for Tugs introduced. Tug movement in economy speed. Increased eRTG utilization from 37% in Dec-19 to 86% in Nov-20. 30% savings in fuel consumption Savings of Rs. 2 Cr p.a. Savings of Rs. 5 Cr p.a. adani Ports and Logistics Increased utilization of mechanized systems from 45% in Dec-19 to 55% in Nov-20. Savings of Rs. 7 Cr p.a. Process improvement - double handling eliminated. Rationalized Dumpers from 114 to 79, Wheel Loaders 36 to 26, ITVs 45 to 36, Excavators 30 to 20 and other outsourced equipment post Dec-19. Savings of Rs. 35 Cr p.a. 31#32APSEZ : Krishnapatnam Port - Focusing on improving EBITDA by Operation Process adani Ports and Logistics Decrease in repair & maintenance & fuel expenses due to equipment rationalization Savings of Rs. 20 Cr p.a. ■ HPSV lamps to LED conversion - 912 nos of HPSV lamps converted to LED post Dec-19 Savings of Rs. 1 Cr p.a. Bio-fuel blending -20% blending with HSD Savings of Rs. 2 Cr p.a. Other miscellaneous process improvements Savings of Rs. 8 Cr p.a. Total savings of Rs.80 cr. p.a. by optimally utilising existing assets and without incremental Capex. 22 32#33APSEZ : Krishnapatnam Port -Focusing on improving EBITDA by Contracting - Vendor Process adani Ports and Logistics Activity based costing (Benchmarked with other Adani Ports) Cash outflow with internal cost estimate principles. Survey 66% reduction Savings of Rs. 2.4 Cr p.a. Custom clearance - 76% reduction Savings of Rs. 4.5 Cr p.a. Fertilizer handling - 30% reduction Savings of Rs. 10.5 Cr p.a. Tug Hiring 24% reduction Savings of Rs. 1.24 Cr p.a. Railway O&M - 14% reduction Savings of Rs. 0.6 Cr p.a. Fixed to variable conversion of equipment hired on fixed period basis to per MT (Eg: Wheel Loaders, etc.) Savings of Rs. 13 Cr p.a. Re-negotiation of equipment contracts like dumpers, excavators, wheel loaders, sweeping machines Etc. Savings of Rs. 11 Cr p.a. 33#34APSEZ : Krishnapatnam Port -Focusing on improving EBITDA by Contracting - Vendor Process adani Ports and Logistics ■ Wholesale pricing of fuel - Rs. 3.4 /Litre saving by converting to wholesale pricing ■ Spares & Consumables Sourcing Annual Rate Contracts Explored alternate sources of procurement of spares & consumables and benchmarked with other ports Tapping of ancillary revenues (Eg: Bunkering, sludge, etc.) Savings of Rs. 1 Cr p.a. Savings of Rs. 11.5 Cr p.a. Revenue added of ~Rs. 3.5 Cr p.a. Other miscellaneous initiatives Savings of Rs. 8.76 Cr p.a. Resulted in savings of Rs.68 cr. p.a. 34#35APSEZ: Krishnapatnam Port -Focusing on improving EBITDA by Contracting - Customer Process. adani Ports and Logistics Niger Nigeria Guinea atellite Libya Egypt Saudi Arabia Sudan Chad Ethiopia South Sudan Pakistan India Customer Plant Yemen Gulf of Aden Arabian Sea Somalia Kenya Gabon DRC Tanzania Angola Zambia Namibial Zimbabwe Botswana Origin Port South Africa Mozambique Madagasca- Lacradive Sa Google Nepal Rate in Dec-19 Current Rate Myanmar (Burma) Commodity (Rs. (Rs. Thailand KPCL PMT) PMT) Viet Competitor Port Coal - 405 455 Customer A Malaysia Coal - 265 295 Customer B Coal - 263 305 Customer C Granite - Customer A 110 160 Indian Ocean Man data * ☐ Mapping of entire customer's supply chain from the point of origin till the point of consumption. ■ Recalibrating the contracts based on the commodity potential. Resulted in increase in Revenue of Rs. 80 cr. p.a. 35#36APSEZ : Krishnapatnam Port -Focusing on improving EBITDA by Rationalization of Overheads Insurance premium Savings of Rs. 46 Cr p.a. Rationalization of aircraft operation and travel Savings of Rs. 11 Cr p.a. Rationalization of security expenses Savings of Rs. 6 Cr p.a. ☐ Rationalization of rental and business promotion expenses Savings of Rs. 12 Cr p.a. Decrease in consultancy & personnel expenses Rationalization of other miscellaneous costs Savings of Rs. 12 Cr p.a. Savings of Rs. 11 Cr p.a. Resulted in savings of Rs. 98 cr. p.a. adani Ports and Logistics 36#37EBITDA Margin Jan '20 APSEZ : Krishnapatnam port - Improvement in EBIDTA margin post agreement 4.0% 4.0% 54% Revenue Improvement Process Optimization Rationalization of OH 2.0% 78% 2.0% 3.0% 74% 1.0% 3.5% 70% 4.5% T|| Cost Efficiency EBITDA Margin Oct '20 Mechanization Expansion EBITDA Margin FY22 EBIDTA Margin to expand further 78% by FY25- Build the Assets around the cargo type to be handled - Specialization Principle Further Mechanization Further expansion EBITDA Margin FY23 37 adani Ports and Logistics#38KPCL future outlook -#39APSEZ: KPCL - Unlocking of potential - capacity break up and expansion adani Ports and Logistics Capacity Break up 12 2 FY20 (64) In MMT 6 Dry Bulk 18 Container FY25 (100) ■Liquid 50 Capacity Utilization In MMT FY'25 48 FY'20 64 84 Cargo Handled Capacity 100 84% 76 The capacity will be ramped up by adding new equipments to keep the pace with cargo volume growth; About Rs. 750 crores will be spent for aforesaid capacity addition up to ~100 MMTPA during next 5 years 75% 39#40APSEZ: KPCL - Creating long term value by growing and improving cargo diversity Diversification of cargo basket adani Ports and Logistics FY20 (48) 37 Cargo diversification through : • • 2 6 FY21 (40) 32 4 2 11 14 Dry Bulk ■Container Liquid FY23 (70) 57 FY25 (84) 66 Cargo in MMT Harnessing long term relationships with ship liners to increase container volume by offering them multiple entry and exit points at a pan India level. Immediate hinterland provides ample opportunity for growth in liquid cargo which will also help improve margins. Steel and Fertilizer cargo will be provided with improved storage and handling facilities. Port catchment areas includes upcoming cement and clinker facilities. Development of available industrial land to bring customer inside the port gate thus improving stickiness of cargo. 40#41APSEZ : Krishnapatnam Port - Diversifying to handle POL products. BPCL Plot NGC Plot Capacity: 6 MMT; Berth designed for 150,000 DWT tankers. • Expected COD: April 2022. •Long Term agreements entered with: adani Ports and Logistics BPCL To handle High Speed Diesel Oil & Motor Spirit -1 MMT annual MGT. - ■ NGC - To handle Liquified Petroleum Gas with the following MGT from COD. Year -1: 0.25 MMT; ✓ Year -2: 0.37 MMT: Year 6 0.56 MMT Year -70.585 MMT ✓ Year -3: 0.47 MMT; Year -80.61 MMT • ✓ Year -4 0.50 MMT; ✓ Year -5: 0.53 MMT; Rs. 240 Cr Capex under investment. Year 90.64 MMT Year -10 (onwards): 0.675 MMT • Expected Revenue & EBITDA till FY25: Financial Year Revenue (Rs. Cr) EBITDA (Rs. Cr) EBITDA Margin FY 2022-23 47 40 86% FY 2023-24 52 45 87% POL Jetty FY 2024-25 57 49 87% 41#42APSEZ: Creating near term value through effective capital management Interest Saving Tax Working capital optimization • Current debt refinanced and replaced by proceeds from APSEZ US$ Bond. adani Ports and Logistics . Interest cost savings in constant rupee terms is ~6% p.a. • Interest cost saving on hedged basis 2% p.a. aggregating to Rs.125 cr. p.a. Saving of Rs.350 cr. p.a. • Utilization of existing carryforward losses including unabsorbed depreciation over the next two years. Optimal deployment of working capital ensuring prompt collection • Reduction of DSO by 15 days. Vendor payments and advances rationalized No expected cash tax outflow till FY22. Saving of Rs. 9 cr. p.a. APSEZ's credit rating helps reduce the overall cost of financing for KPCL 42#43APSEZ: KPCL the transformative asset enabling east and west coast parity For APSEZ • Diversification of cargo, coast and customer base • De-risks the portfolio of concentration and volatility KPCL BY FY25 ~1.8x Cargo 48 to 84 MMT • Hinterland reach increases to 90% New routes for Adani Logistics Enables APSEZ to reach 500 MMT by FY25 KPCL outlook • Cargo throughput a CAGR of 12% by FY25 . Revenue growth 18% CAGR by FY25 ~2.2x Revenue Rs.20 Bn to Rs.44 Bn ~3.2X EBITDA Rs.11 Bn to Rs.35 Bn FCF of Rs.2,500 cr. In FY 25 (>100% conversion of PAT to FCF) ~2.5× ROCE 8% to 20% • ROCE to reach 20% by FY25 adani Ports and Logistics 43#44ESG and CSR adani Ports and Logistics#45APSEZ : Krishnapatnam port - Imbibing Adani Group ESG philosophy Environment Adherence to global environment guidelines like Disclosure in CDP - Climate Change and Water Security, SBTI; Supporter of TCFD, Member of IUCN. ➤ Focus on Employee/ Contractor Worker's Safety Social ➤ Emphasis on Local procurement. ➤ Ensure Employees Satisfaction for Low Employee Turnover. Governance Rigorous audit process - Regular assurance by third party as per GRI standards. Related party transactions policy – Strict Implementation of the policy ➤ Consistent Disclosures to all stakeholders. SBTI (Science Based Target Initiatives) UNGC (United Nations Global Compact) TCFD (Task-force on climate related finance disclosures) adani Ports and Logistics 45#46APSEZ : Krishnapatnam port - ESG focus areas • Focus Areas Efficient use of water and energy from cleaner sources: To reduce Water intensity by 55% & Energy Intensity by 50% and Waste Intensity by 30% by FY 25. • Reduction of emission levels - 60% Emission Intensity reduction and 25% Renewable Energy Share by FY 25 • Zero tolerance for fatalities at port at al times. Initiatives till date Half Yearly Performance Energy Intensity* Emission Intensity* 36%↓ 328 GJ/Revenue 52% 26 tCO2e/Revenue Wind Energy # 15 MW Green Cover# 191 Ha adani Ports and Logistics Water Intensity* 3% ↑ 0.39 ML/Revenue Waste Intensity* 9% 1.02 MT/Revenue Terrestrial Plantation 4.3 Million Trees Planted Mangrove 50 Ha Afforestation 46#47Social APSEZ : Krishnapatnam port - Imbibing Adani group CSR philosophy Adani Foundation: Core Areas of Service *Education Health Sustainable Livelihood Infrastructure Adani Foundation Outreach: 18 States • 2,315 Villages 728,000 Families KPCL CSR Program: •1 State (Andhra Pradesh) • ⚫ 78 Villages 17,950 Families adani Ports and Logistics 47#48APSEZ : Krishnapatnam port - CSR Education Programs Schools 1. English Medium School 2. Navayuga World School Education, Books, Stationary, Uniform, Mid day Meals provided at free of cost. International School Krishnapatnam. facility provided at 779 Students belonging to Fishing and Other Backward Communities 1. Scholarships ASRA (After School Remedial Assistance) 2. Vidhyarathna Scholarships Free Education for 1175 students in 32 Fisherman villages. Supporting 240 poor fisherman children per year to pursue higher education. adani Ports and Logistics 29 07 2015 48#49APSEZ: Krishnapatnam port - CSR Health Programs Hospitals Free Medical Treatment with medicines: 1. Madhava Chikitsalayam 1. 705 patients treated monthly. 2. Medical Centre 3. KP Dental Care 3. 4. Navaneeta Homeopathy Clinic 2. 4500 patients treated monthly. 600 patients treated monthly including follow up cases. 4. 700 patients treated monthly including follow up cases. Ancillaries 1. Mobile Health Camps 2. Ambulance Services Providing free health camps in 8 villages fortnightly. Operating Three Ambulances to meet exigencies in Port and Port surrounding villages. On an average 150 calls registered per month. CVR Medical Relief Vars CVR adani Ports and Logistics 49#50APSEZ : Krishnapatnam Port - CSR Sustainable Livelihood & Community Infrastructure adani Ports and Logistics Livelihood 1. Navyatha - Tailoring & production unit 2. RO Water Plants 3. Village Sanitation Program Imparting Training to women in tailoring. Resulted in livelihood to 84 women belonging to Fishermen community. Six installed for providing Drinking Water to 4000 families every day. Garbage / Drains Clearance, Sweeping of Streets, Sanitation and Fog Machine Operation are carried out in the nearby villages covering 6000 families by 80 community people. Infrastructure Community Infrastructure Development Developed R & R Colony villages with Roads, Sanitation, Plantation, school buildings, temples, mosques, churches, community halls etc., Benefitted 17,950 families at an average per year CVR 50#51Annexures • Messaging on KPCL during interaction with stakeholders in Jan and Oct 2020 adani Ports and Logistics#52APSEZ: Acquisition of KPCL a synergistic accretion to portfolio. Transformational ■ asset ◉ Second largest private port asset with residual concession life of 40 years Enhances east coast west coast parity Complements APSEZ's existing network and consolidate customer base East coast traffic to cross > 100 MMTPA by FY22 Accelerate the journey of APSEZ to achieve 500 MMT by FY25 ■ Strategic flexibility ◉ Mundra on east coast Adds new economic hinterland - Andhra Pradesh, Karnataka, Telengana Key enablers - Contiguous land, excellent connectivity & approvals for growth in place Land bank of > 10k acres available for industrial development in the vicinity Opportunity to create a "New Mundra" growing at double digit from FY22 100 MMT by FY25 and EBIDTA set to double by FY23 Capable of handling 500 MMT APSEZ adds 12th port in its portfolio Messaging on KPCL during interaction with stakeholders in Oct 2020 adani Ports and Logistics 52#53APSEZ : KPCL USPS Port Infrastructure Mechanized Handling All weather, deep draft port capable of handling all types of vessels including Capesize Vessels; Mechanized coal handling system resulting in faster turnaround time of vessels; Extensive captive cargo base • 5,490 MW of operational coal based power plant & 800 MW under construction; 7,200 MT/day capacity of oil refineries; Dedicated Conveyors • Dedicated high speed conveyor of about 12.5 Km length from berths to power plants for transporting coal; Pipeline for Edible Oil Refineries . Two dedicated 16 inch pipeline of 6.5 Km length from berth to edible oil refineries; Rail and Road Connectivity Additional Expansion Possibility • Seamless congestion free connectivity by 4 lane road and double line rail leading to faster cargo evacuation; Debottlenecking* and Mechanisation will take capacity to >100 MMTPA by FY24. Capacity additions possible up to 500 MMTPA, Ample land available *Debottlenecking by optimizing the operations philosophy, further mechanization & sweating Idle capacities Messaging on KPCL during interaction with stakeholders in Oct 2020 adani Ports and Logistics 53#54APSEZ : Creating near term value through operational excellence at KPCL adani Ports and Logistics Revenue upliftment Benchmarking with other ports on tariff structure Bagging & dispatch New contractor appointed at economical rates Tug hiring, O&M and Fuel procurement Spares Rates renegotiated and benchmarked with other APSEZ ports on east coast. Alternative vendors for spares selected on competitive rates Particulars FY 20 H1 FY21 Volume 48 19 Performance Improvement Revenue 2,031 867 Revenue (PMT) 422 455 EBIDTA 1,179 590 EBIDTA (PMT) 245 310 EBIDTA % 58% 68% Operational efficiencies identified by APSEZ already resulting in tangible benefits for KPCL Messaging on KPCL during interaction with stakeholders in Oct 2020 54#55APSEZ : Creating long term value by embedding APSEZ's operational excellence FY20 -O FY21 FY22 FY23 Capacity 64 MMT - Throughput 48 MMT - EBITDA Margin - 58% Focus areas for business improvement Steps in FY21 Operational Efficiency • • . Debottlenecking Process optimization Technology integration - Leads to EBITDA margin expands to 69% in FY21 Steps in FY22 Operational Efficiency . Mechanization Cargo growth Steps in FY23 onwards Ongoing Value Addition Marketing efforts to increase sticky cargo • • Fully synergize with Diversification cargo mix New revenue streams Project execution integration with APSEZ EBITDA margin to equalize portfolio level APSEZ portfolio. . Project execution integration with APSEZ EBITDA margin ramp up by 200 bps FY21 - Capacity 64 MMT Throughput - ~40 MMT EBITDA Margin - 69% Messaging on KPCL during interaction with stakeholders in Oct 2020 FY22 Capacity 75 MMT Throughput 54 MMT EBITDA Margin - 70% - FY23 Capacity 90 MMT - - Throughput 70 MMT EBITDA Margin - 72% adani Ports and Logistics 55#56APSEZ : KPCL's EBITDA to nearly double by FY23 FY20 FY21 EBITDA EBITDA Margin ~Rs.1,180# cr. 58% -Rs.1,200 cr. 69% FY23 -Rs.2,200 cr. 72% Execution Focus Operational Efficiency Cargo Growth Business Evolution EBITDA (in INR cr.) 1,180 FY20 436 Margin Improvement 627 Cargo Growth 2,243 MI* - 14% Cargo Increment FY23 Margin improvement locked in basis H1 FY21 performance Messaging on KPCL during interaction with stakeholders in Oct 2020 adani Ports and Logistics 56 #Unaudited for FY20 | * MI - Margin Improvement#57APSEZ : Krishnapatnam Port - Key Customers Name Coal TPCIL/Sembcorp Energy JSW Group Karam Chand Thapar and Bros Swiss Singapore India Pvt. Ltd Global Coal And Mining Pvt Ltd India Coke and Power Pvt.Ltd Shipping Line Maersk (including Saffmarime) Hyundai Merchant Marine (HMM) Shreyas Shipping & Logistics (SSL) Mediterranean Shipping Company (MSC) Limestone JSW Steel Limited Vol. in MMT Name Vol. in MMT Edible Oil 10.2 Emami Agrotech Ltd 0.4 4.1 South India Krishna Oil and Fats Pvt. Ltd 0.3 2.6 Gemini Edibles Oil and Fats (1) Ltd. 0.3 1.4 Adani Wilmar Limited 0.2 1.4 0.8 Fertilizer Vol in TEUS Coromandel International Limited 0.6 188,978 Indian Potash Limited 0.3 110,388 90,322 Granite 46,745 Triple Line India Pvt. Ltd. 0.8 Integrated Project Logistics Pvt. Ltd 0.6 Cement 1.9 Penna Cement Industries Limited 0.7 In FY20, 19 MMT which is 38% of total cargo was long term/sticky carqo. Key customers are APPDCL, Sembcorp, Penna & Oil refineries, whose units are located in the vicinity of the Port. Messaging on KPCL during interaction with stakeholders in Oct 2020 adani Ports and Logistics 57#58APSEZ : KPCL land bank and expansion possibility Land Bank with Port Total Land in Possession Area in Acres 4,621 Additional land allotted by Govt. & to be acquired 2,169 Total Land for the Port Capacity Expansion Possibilities Existing Capacity Debottlenecking plans and overhauling of operations with addition of equipments and back up facilities by FY24 Port expansion potential 6,790 MMPTA 64 100 500 With large land bank, it has high potential to expand by capacity additions Messaging on KPCL during interaction with stakeholders in Oct 2020 adani Ports and Logistics 58#59Disclaimer adani Ports and Logistics 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 Ports and Special Economic Zone Limited ("APSEZL"), the future outlook and growth prospects, and future developments of the business and the competitive and regulatory environment, and statements which 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 APSEZL's shares. 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 APSEZL. APSEZL, 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. APSEZL assumes 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. APSEZL 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 authorised 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 authorised by or on behalf of APSEZL. 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 its 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 therefrom. Investor Relations Team: MR. D. BALASUBRAMANYAM Group Head - Investor Relations [email protected] +91 79 2555 9332 MR. SATYA PRAKASH MISHRA Senior Manager - Investor Relations [email protected] +91 79 2555 6016 MR. ATHARVATRE Assistant Manager - Investor Relations [email protected] +91 79 2555 7730 59