#1TCI Earnings Presentation Q4 FY23 19th May 2023 TC TCI TCI LEADERS IN LOGISTICS Everything Logistics™ TET#2TCI Consolidated Overview TCI LEADERS IN LOGISTICS $500+ B 18 *per month 1800+ TCI 6+ In Millions Freight Div. Supply Chain Div. Seaways Decades of Experience Revenue Div. 650+ 160 Refer Vehicles+ 13K+ TCI CONCOR TCI Cold Chain Train movement 8K+ ISO Containers Cold Pallets positions GP Containers 20 3.5K+ 1K+ 10K TCI Bangladesh Transystem Logistics </> Employees Strength IT Enabled Own Offices Trucks in Operations TCI Nepal 06 14 GDP 2.5% Mn sq. ft. Warehouse Moving India's GDP Standalone SBUS Subsidiaries /JVS Coastal Ships Space by Value Everything Logistics | 2#3• Logistics industry Growth drivers F Consumer Driven Customer Driven Industry Driven Growth of omni channel retail prompting supply chain changes High Degree of Urbanization Product loyalty diminishing & putting pressure on supply chains . . Focus on core area of business leading to increased outsourcing Adoption of tech Increased Demand for bespoke and customized solutions Shift towards alternative modes of transportation: Multimodal green logistics • • Large market market opportunity Shift in global supply chains due to China+1 strategy National Logistics Policy giving positive direction (Modal mix change, Digitization, Standardization) Regulatory & Government Initiatives Infrastructure push PM Gati Shakti, Bharat Mala, Sagar Mala, MMLP, DFC Boost to domestic supply chain, PLI, Atmanirbhar Bharat GST, E-way bill, ULIP and E- invoicing driven governance push and formalization Everything Logistics | 3 TCI LEADERS IN LOGISTICS#4Company Strategy: Everything Logistics TCI LEADERS IN LOGISTICS Presence Across All Industry Sectors Key Technology & Automation USPS Driven Operations L Wide Range Of Services Unique Positioning To Incubate High Growth Segments Strong Multimodal Capabilities & Network Everything Logistics | 4#5Wide Range of Customized Services Verticals Served/ Products Automobiles E-Commerce Unlock Business Potential Customised Solution Products / Services LTL/FTL Warehousing Port Logistics Freight Forwarding Coastal Shipping Domestic Rail: Container & Auto movement CHA International Country Operations ODC/PHH Liquid & Gas Bulk Logistics In/Outbound Logistics Reefer Storage • Retail and CP • Chemicals • Hi-tech (ICE) Industrial & Engineering • Agri ⚫ Healthcare/ • Lifesciences Energy & Renewables • Aviation & Defense . Reefer TPT 3PL / 4PL End-to-End Supply Chain Solution Integrated Multimodal Solution Control Tower and Consultancy • Benefits For Customers Single Window Solution Operational Cost Efficiencies Trusted Delivery & Fulfillment Economies of Scale Cold Chain SAARC+ CHA Everything Logistics | 5 TCI LEADERS IN LOGISTICS#6Unique Positioning to incubate High Growth Segments TCI LEADERS IN LOGISTICS • • Chemical + Pharma China +1 Supply chain outlook Government push for local manufacturing Maturing domestic supply chain Multimodal solution for movement of Haz. and Non-Haz. bulk liquid and dry chemicals. Own strategic assets- Responsible Care, ITCO, PESO, and Drugs License, GDP- compliant Agri. ++ 16% of GDP in the farm & food sector Consumption linked sector with shorter cycles Renewables Cold Chain SAARC Increasing awareness on climate related risks Increased shift from fossil fuels to renewable energy Growth in the organized food delivery and e- commerce segments. Market maturing to the quality vs. cost TCI's approach to these high growth segments Multimodal solutions comprising last-mile deliveries. 3PL Solutions, Yard management, OBL, WH Offers hub-spoke solutions. End-to-End multimodal through Rail. Import clearance and Warehousing Last Mile and Storage • . Quality operations under cold & dry solutions 150+ fleet (100 own), 18000+ Pallet position • Increasing bilateral trade between BBIN countries Favorable policy framework from governments Own Subsidiaries in Nepal and Bangladesh. End-to-End multimodal through Road and Rail. AEO, IATA, CHA, Courier Licenses. Everything Logistics | 7#7Technology Driven Operations Security & Business Continuity Endpoint Detection and Response Advance Threat Protection Network & Web Application Firewall SSL, Security Protocols & Policies High Availability Disaster Recovery Secure code Repository ** Configuration & Integration GPS & GIS enabled Services Location & Route Geofencing • API's & External Integration with ULIP • IOT Devices - RFID, Temperature Sensors, Barcode, Scanner • Value Based Relationship Customer Relationship Management Supplier Relationship Management Order Management System Decision Support Systems BOT enabled Logistic Control Tower Business Intelligence Tools Route Planning & Optimization Security Operation Center • • CCCO IT Infrastructure & Database Cloud Computing Services and Servers Data warehousing & Layered Architecture Communication Tools WhatsApp Business Version Control and Repository System Core Business Operations Enterprise Resource Planning Fleet Management System Workforce Management System Procurement Management System GST, E-way, E-Invoice TCI LEADERS IN LOGISTICS Everything Logistics | 8#8Presence across all industry sectors capturing most of economic activities Engineering and Industrial Metals and Construction Material Chemical and Pharma Automotive (Mobility and Industrial) Consumption driven sectors: FMCG, Retail, FMCD, Apparel, textiles etc. Agriculture, Food grains Increasing Government spend on infrastructure Growth in size of GDP PLI, 100% FDI in select sectors Increasing Investment in Core sector Infrastructure development Increasing demand for specialty chemicals Rising awareness about health care Untapped 4W market, 3% penetration vs 22% in China. India is 4th largest market Rising middleclass population Infrastructure spend Increasing per capital income Rise of middle-class and youth population Expansion of E-com to tier 3/4/5 cities Increasing use of technology in crop production, soil fertility TCI LEADERS IN LOGISTICS Increasing population density and Gov. focus to stabilize supply chains around distribution | 9#9Key Highlights Consecutively highest quarter amidst strong sectorial trends. TCI LEADERS IN LOGISTICS Company's well-diversified service offerings, multi sectorial presence and adherence to core business fundamentals have contributed to our consistent growth Consolidated Revenue in Mn Our net borrowing remained at zero with additional cash surplus 10000 8000 7002 6000 4000 4088 2000 0 Q1 30% 9082 7035 13% 9395 8281 Q2 22 8430 8117 16% 10% 9914 9737 9040 9053 63 Q3 Q4 2021 2022 2023 Everything Logistics | 10#10TCI LEADERS IN LOGISTICS TCI Freight Division: Industry nature and trends Industry USD 180 B Freight Transport Market, highly fragmented and unorganized 1 Growth Drivers Need for FTL & LTL from a single provider LTL Freight Transport Market, relatively organized with 15% share Increasing adoption technology like on demand trucking and real-time pricing Anywhere to anywhere model Control Tower customized Freight solution with end-to-end visibility Growing need for in-transit small storage facilities Increasing awareness on sustainable logistics and demand for multimodal Packaging support for high value goods, fragile items in LTL segment Everything Logistics | 11#11TCI Freight Division: Core competencies and capabilities Hub Centers Network/Infrastructure TCI LEADERS IN LOGISTICS Large pool of truck supplier/ partner to support asset light model Trucks operated 4500 700+ IT enabled offices 25 strategic hub locations to support single window for FTL and LTL Freight solutions for landlocked SAARC countries Best in class IT capabilities ERP Integration with Customer for Billing and operation Mobile App & tablet-controlled operations Technology Solutions for Large and complex freight contracts Centralized control center operations Everything Logistics | 12#12In Mn TCI Freight Division: Key Operational Highlights. Figures in Mn Particulars Q4 FY23 Q4 FY22 Gr% FY23 FY22 Gr% Revenue 4217 3906 8.0% 15970 13716 16% TCI LEADERS IN LOGISTICS Moderate Growth in Q4 on an elevated base, however overall, 16% growth momentum amidst improved economic activities and higher volumes from large customers revenue growth, which off-set pressure of general Margins and ROCE remained stable amid benign freight rates and inflation in input prices EBDITA 201 180 12.0% 710 620 15% 69% 67% 67% 65% 65% 60% % to Revenue 4.8% 4.6% 4.4% 4.5% 40% 31% 33% 33% 35% 35% EBIT 191 170 12.3% 669 577 16% % to Revenue 4.5% 4.4% 4.2% 4.2% FY19 FY20 FY21 FY22 FY23 FY25 (E) LTL FTL 10% 3,000 40% 15,970 2,616 16,000 2,420 2,500 2,360 2,299 2,225 13,716 8% 13,000 12,093 12,474 30% 11,507 2,000 6% 10,000 սա սլ 27.6% 1,500 25.5% 20% 4% 7,000 1,000 4.2% 4.2% 16.4% 17.0% 17.8% 3.6% 10% 4,000 3.2% 3.3% 2% 500 1,000 0% 2018-19 2019-20 2020-21 2021-22 2022-23 Revenue EBIT 0% 2018-19 2019-20 2020-21 Capital Emp. 2021-22 2022-23 ROCE Everything Logistics | 13#13TCI Supply Chain Division: Industry nature and trends Industry Market Size USD 12 Bn 1 Growth Drivers Higher demand for integrated and customized solutions Relatively less fragmented with higher organized market 3PL Growth CAGR 15% 60% constitute road movements ⚫ 3PL penetration is 4.5% Vs 11% Globally Supply chain network optimization especially in warehousing TCI LEADERS IN LOGISTICS Growth of omni channel in tier 3/4/5 cities Increasing demand for automation and technology driven service offerings EV/alt fuel impact on 3PL for automotive Everything Logistics | 14#14TCI Supply Chain Division: Core competencies and capabilities 4K+ Own: 1K HHH 55 Vehicles under Operation 750 Mn Parts handled in Production Logistics per year 14 Mn SQFT Warehouse under management 00000 Yards managed 100+ trains operated per month 250 Acres Space under management Managing several of India's largest WHs Full-stack integrated offering from Conceptualization, Design, to execution High warehouse space utilization by expanding vertically VAS: labelling, repackaging, order processing, payment management Inventory management and visibility through WMS via client's ERP Integration Proprietary TMS for route optimization TCI LEADERS IN LOGISTICS Everything Logistics | 15#15TCI Supply Chain Division: Key Operational Highlights TCI Figures in Mn LEADERS IN LOGISTICS Particulars Q4 FY23 Q4 FY22 Gr% FY23 FY22 Gr% Revenue 3303 2552 29.4% 12763 10015 27% EBDITA 322 292 10.2% 1201 1069 12% % to Revenue 9.8% 11.5% 9.4% 10.7% EBIT 216 183 17.7% 778 614 27% % to Revenue 6.5% 7.2% 6.1% 6.1% In Mn Growth momentum continued amidst retention and expansion of business with existing clients and new business acquisitions Margin remained stable amid inflationary pressure on inputs cost which was off set by lower depreciation. 15,000 4,500 50% 12763 13,000 16% 4,000 3650 3,431 3,500 3,134 3,237 35% 3,004 11,000 10,149 10,015 3,000 9,243 9344 11% 9,000 In Mn 2,500 20% 24.0% 22.6% 2,000 18.3% 18.5% 18.4% 6% 7,000 7.0% 1,500 5% 6.1% 6.4% 6.1% 6.1% 1,000 5,000 1% 500 -10% 2018-19 2019-20 2020-21 2021-22 2022-23 2018-19 2019-20 2020-21 2021-22 2022-23 Revenue ⚫EBIT Capital Emp. (In Mn.) ROCE Everything Logistics | 16#16TCI Seaways: Industry nature and trends Industry Dhandhari Kalan Dhappar Panipat Jal Marg Vikas Project Rs. 5369 crore Coastal Shipping to Increase from 86MMT to 215MMT by 2025 Main container ports Feeder ports Trans-shipment port Port industrial cluster National Waterways (NW) -- Eastern DFC -- Western DFC Road corridors Milk run of ICDS Growth Drivers Waterways : 6% of transportation modal mix Coastal 6% Air 1% Inland 0.3% Rail 33% TCI LEADERS IN LOGISTICS Mundra The Sagar mala Project Rail line Slurry pipeline Sadiya Tughlakabad Agra POL/crude pipeline Allahabad Dhubri Road 60% Madhosingh Gwalior Rawtha Kandla Bhopal Kolkata/Haldia Keonjhar Ratlam IB Valley Hazira Paradip, Dhamra Pipavav Vadhavan JNPT Talcher Bailadila Vizag Hubli Mormugao Ankola Mangalore XXXXX Cochin Central Andhra port Krishnapatnam Ennore Chennal Puducherry O Central Tamil Nadu port Tuticorin Enayam US$120 billion Investment 6+ Mega Ports 14+ Coastal Economic Zones Industrial Zones near Ports GOI push for infrastructure development around ports and share of coastal shipping in overall logistics More SEZs, Multimodal Logistics Park and Warehousing zone near ports Push for green logistics Everything Logistics | 17#17TCI LEADERS IN LOGISTICS TCI Seaways Division: Core competencies and capabilities Reach & Services One of the leading multimodal coastal players having presence along the Western, Eastern & Southern ports of India Expertise in coastal shipping services, container & bulk cargo. movements, and transportation services First-mile and last-mile connectivity via rail & road Multi-modal solutions with reduced carbon footprint (Green logistics) Presence of TCI Seaways KANDLA PORT 13 MAJOR SEAPORTS IN INDIA HALDA FORT MUMBAI PORT PAADIFPORT ALL PORT MORMUGAO PORT MANDALONE PORT DENA PORT PORT BLAIR PORT ROCH PORT TUTICORN PORT TCI Express TCI Anand Own 8000+ marine containers (multipurpose) 06 domestic coastal ships with a total capacity of 77,957 DWT Serves 7 of India out 13 ports Everything Logistics | 18#18In Mn TCI Seaways Division: Key Operational Highlights. Figures in Mn Particulars Q4 FY23 Q4 FY22 Gr% FY23 FY22 Gr% TCI LEADERS IN LOGISTICS Growth Subdued amid lower freight rates and falling fuel prices during second half Margins impact due to high depreciation and lower Exim business Revenue 1395 1542 -9.5% 5593 5332 5% 100000 602 716 EBDITA % to Revenue 43.1% 46.4% EBIT 422 477 -11.6% 1645 1790 -8% % to Revenue 30.2% 30.9% -15.9% 2345 2363 -1% 80000 41.9% 44.3% INR/MT 60000 40000 20000 29.4% 33.6% 0 Fuel Price MT APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR 2021 2022 2023 6,000 5,593 40% 5,332 5,000 70% 4,210 5,000 35% 3,909 60% 4,000 3,780 3,645 3,593 4,000 3692 30% 50% 3,326 3,443 33.6% 3,000 29.4% 25% In Mn 3,000 40% 44.6% 46.5% 21,9% 19.9% 30% 2,000 20% 2,000 22.1% 19.2% 18.1% 22.1% 20% 1,000 15% 1,000 10% 2018-19 2019-20 2020-21 2021-22 2022-23 2018-19 2019-20 2020-21 2021-22 2022-23 Revenue (In Mn.) EBIT Capital Emp. (In Mn.) ROCE Everything Logistics | 19#19TCI's Joint Ventures Figures in Mn FY23 (FY22) ₹ Revenue TCI CONCOR TCI COLD CHAIN Transystem SOLUTIONS Multimodal Logistics Solutions 3047 (3010) 601 (587) 6920 (4670) Y-o-Y Growth 1.2% (-7.1%) 2.4% (62.5%) 42.5% (29.9%) PAT PAT Capital Employed % Strategic Partner's Share Key Operational Highlights 54.9 (56.1) 28.2 (27.6) 821 (540) 314 (419) 360 (336) 3109 (2924) 49% 20% 51% TCI LEADERS IN LOGISTICS Operates on asset- light model Building upon its capabilities of integrated multimodal logistics solutions Chemicals, Food Grains, Metals etc Cold chain services to cater temperature control Warehousing, Primary & secondary distribution requirements. Focused on automotive logistics of Japanese clients Everything Logistics | 20#20PAT EBDITA Financial Highlights CONSOLIDATED Revenue 45000 36000 27000 18000 9000 9.5% 9053 9915 32766 16.4% 38129 TCI LEADERS IN LOGISTICS Figures in Mn STANDALONE 40000 1 35000 19.0% 34925 30000 25000 29357 20000 11.8% 15000 | 10000 5000 0 8057 9011 Q4 FY22 Q4 FY23 FY22 0 Q4 FY22 Q4 FY23 FY22 FY23 5600 9.3% 4800 FY23 4563 4000 3200 -4.3% 4900 4986 4200 3500 2800 2100 11.2% 4689 4216 -3.7% 2400 1600 1366 800 1307 I 1400 700 0 1214 1169 0 Q4 FY22 Q4 FY23 FY22 FY23 Q4 FY22 Q4 FY23 FY22 FY23 3500 9.5% 3500 3000 13.5% 3207 2800 3035 2928 I 2500 2674 2100 2000 1400 -4.6% 1500 1.4% 1000 700 864 825 500 731 741 Q4 FY22 Q4 FY23 FY22 FY23 Q4 FY22 Q4 FY23 FY22 FY23 Everything Logistics | 21#21Consistent performance: Key financial Indicators TCI EV/EBIDTA Return on Capital Employed LEADERS IN LOGISTICS Figures in Mn 12.0 11.0 11.0 48% 10.3 14000 13459 13231 40% 10.0 12686 12690 12631 8.0 32% 8.0 6.0 6.0 12000 24% 26.1% 24.6% 20 2.0 0.0 4.0 16% 10000 16.1% 14.2% 15.0% 8% 8000 0% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Capital Emp. Excl. Cash ROCE Consolidated Profit After Tax Return on Net Worth 50% 3500 3000 2500 CAGR 21% 17000 14000 3206 2928 11000 40% 30% 2000 22.3% 8000 21.1% 16.9% 1500 14.1% 20% 1453 1432 1507 5000 13.3% 1000 1238 2000 10% 500 7570 8935 10152 11967 15256 0 -1000 0% FY19 FY20 FY21 FY22 FY23 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 Avg Net Worth Return on Net Worth Everything Logistics | 22#22Market Summary TCI LEADERS IN LOGISTICS Particulars UOM 31st Mar 23 Market Cap Rs Mn. 48,698 Shareholding Pattern as on 31st Mar 2023 2% 1% Debt Rs Mn. 846 3% 11% Cash equivalents Rs Mn (1561) Enterprise Value Rs Mn. 47,983 13% P/E Nos 16.1 EV/EBITDA Nos 10.2 69% 52 Week High Rs/share 845 52 Week Low Rs/share 555 15% 400% 350% 300% 250% 200% 14% 150% 13% 100% 125% 50% 80% 90% 100% 0% 10% FY18 FY19 FY20 FY21 FY22 FY23 Dividend Ratio -Dividend Payout Ratio 20% PROMOTORS INDIAN PUBLIC 17.9% FOREIGN HOLDINGS 17.3% 18% MUTUAL FUND BODY CORPORATE OTHERS 350% 300% 16% 14% 14% 12% CRISIL Long term Rating: AA ( Positive) ICRA Short Term Rating CP : A1+ Stock returned CAGR of 35% in last 20 years Stock coverage: 11: Buy Rating :11 # Including final dividend declared on 18th May 2023 @100% Everything Logistics | 23#23Corporate Governance: Social Responsibility • E Environmental पर्यावरण Eco-friendly workplaces, Solar Panel use at warehouses. Push towards green logistics via Rail & Coastal - Approx. 30% of consolidated revenues from Multimodal Started Sustainable Supply Chain Lab in partnership with IIM-B Produced 15.9 Mn (LY 16.0 Mn) renewal energy units. 200+ CNG vehicles S Social सामाजिक Road safety and health initiatives across 9 states impacted more than 2.5 Mn people Promotion of Education and vocational training amongst underprivileged and rural development programs, 10000+ beneficiaries in FY23 Artificial limb center and preventive healthcare centers. has served 25000+ beneficiaries in FY23 G Governance शासन Strong and diverse Board Published BRSR in FY22 voluntarily, First in the Logistics Sector. Long term performance-linked remuneration system Comprehensive Enterprise risk management and Business continuity plan TCI CONCOR TM =TCI SAFE SAFAR TCI LEADERS IN LOGISTICS Everything Logistics | 24#24Outlook • Demand momentum to continue but at a slower pace • TCI LEADERS IN LOGISTICS Headwinds of the global recession on domestic manufacturing, sub-optimal Monsoon and distressed rural demand etc. • Revenue and Profit growth of 10%-15% • Spill over effect of Capex Figures In Mn. Actual FY 23 FY24 (FY07 to Actual Budget FY22) Hub Centers & Small warehouses 5198 365 980 Ships 3210 0 1250 Containers 1251 160 340 Trucks & Rakes 4716 448 760 Others (W/H Equip, Wind 1329 222 420 Energy, IT etc. Total 15704 1195 3750 Everything Logistics | 25#25TCI LEADERS IN LOGISTICS Thank You! Everything Logistics Transport Corporation of India Limited TCI House, 69 Institutional Area Sector 32, Gurugram - 122001 Tel.: +91 - 124 - 2381603-07 | Fax: +91 - 124 - 2381611 E-mail Id: [email protected] | Website: www.tcil.com CIN: L70109TG1995 PLC019116 FCF Find Us on fin B