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1Bonn, 12 December 2012
Blue Dart US Roadshow21 – 29 September, 2015
Anil KhannaManaging Director
Yogesh DhingraChief Operating Office & Chief Financial Officer
2
Our Vision continues to guide us to greater heights
“To be the best and set the pace inthe express air and integratedtransportation and distributionindustry, with a business and humanconscience.
We commit to develop, reward andrecognize our people who, throughhigh quality and professionalservice, and use of sophisticatedtechnology, will meet and exceedcustomer and stakeholderexpectations profitably”.
Passionately crafted by over 600 managers in 1993
3
Formidable Leadership History of
Pioneering and
Innovations Strong Brand Equity
Own Unique Aviation
Infrastructure and Ground
Network
Market Leading
Transit Time / Reach
Best-in-class Technology / InfrastructureExperienced
Senior Management
team
Passionate and
Committed Team
High Responsive to customers
Reliability and High Service Quality
Strong Return on Capital and
Healthy Balance Sheet
4
Formidable Leadership: A Significant Competitive Advantage
The Leader in Domestic Air Express (B2B
and B2C) & Consistently Profitable
Continuous Investments in people,
infrastructure, technology and innovations
Strong focus on growth, profitability and
shareholder return
DP DHL’s launching platform for
eCommerce in India and Asia
Poised for a leap in the India Growth Story
5
Formidable Leadership: Now at Inflexion Point
Kolkata
ChennaiBengaluru
Hyderabad
New Delhi
Ahmedabad
Mumbai
April 14 – March 15: Shipment of 141 mn. piecesApril 14 – March 15: Tonnage of over 559,000
5 Freighters (Boeing 757s)7 Air Network StationsMaintenance, ground handling, and security capabilitySpace Management; in-house developed SMART 1 tech.Daily Dedicated capacity of 385 Tons 2
Combination of Hub and Spoke and Centipede model65 Ground Hubs250 Network RoutesVehicles tracked through GPS devicesNetwork Control Centre monitoring on real-time basis
Extensive ReachOptimized flight scheduling; late pick-ups and early deliveriesMarket Leading Transit TimesSuperior Control resulting in higher service reliability
Unparalleled pan-India Air and Ground network
1 SMART: Space Management Allocation Reservation and Tracking2 Daily average for the 12 month period from April 2014 to March 2015
India map not to scale Network routes for illustrative purposes only
6
Formidable Leadership: Differentiated Solutions & Services
Developed customer-centric solutions and services for verticals ensuring sustainable long-run growth and leadershipIndustry Requirement Service Offering
Banking & Financial Services
Secure Time-Bound Delivery
The Time Definite Delivery (10:00am and 12:00 noon) service with full Money Back Guarantee (MBG)Critical Express
Pharma/ Healthcare / CRO
Safe and Temperature Controlled Transport
Temperature Controlled Logistics Solution to ensure safe and compliant transport in frozen, chilled and ambient conditions. Temperature ranges - 20°C, 2 - 8°C and 15 - 25°C for varying distribution times
Garments / Consumer Durables / IT
Cost Effective Logistics
Dart Surfaceline and Dart Surfaceline Plus is an economical, multimodal, door-to-door distribution service within India; cost-effective option for less time-sensitive bulk moves.
Travel & Tourism
Secure Time-Bound Delivery for VISA / Passports
Complete end-to-end securitized movement of Visa / passportsCritical Express
Confidential Express Logistics
Speedy & Secured Delivery
Domestic charter flights to meet growing demand for speedy and secure distribution of large cargo volumes and offer volumes and dimensions not available with other domestic airlinesSupported by efficient ground-handling facilities, India’s only computerized cargo reservation system and express driven efficiencies.
eCommerce Successful & Reliable Service
India’s most successful and reliable Cash On Delivery service. Blue Dart is also focusing on pre-paid and e-fulfilment
7
Formidable Leadership: Strong Express (B2B & B2C) Market Position
Market Position
Source: 1) Internal Estimates; to be validated by TMSUS$ = ₹ 63
Despite the slowdown since 2012, Blue Dart done well on revenue growth
Market Cap US$ 2674 mn
14 x
Market CapUS$ 197 mn
Share price increase of 14x since 2006
Market Cap
8,3 11,86,7 11,1
18,525,3
32,5
53,8
98,4
112,7
CY2006 CY2007 CY2008 CY2009 CY2010 CY2011 CY2012 CY2013 CY2014 Sept'15
Organized Air Express Market Share (%) (2013)
Organized Ground Express Market Share (%) (2013)
(1)
(1)
Blue Dart 52.0%
Competitor 1 15.0%
Competitor 2 10.9%
Competitor 3 8.5%
Others13.6%
Blue Dart 14.5%
Competitor 1 15.1%
Competitor 2 25.1%
Competitor 3 10.3%
Competitor 4 27.2%
Others7.8%
8
Formidable Leadership: Focus on B2B & B2C will continue
Auto BFSI Comp IT eCommerce
… any many more global and Indian brands
9
Opportunity in the World of ‘e’
Source eMarketer(www.eMarketer.com)
8,3%
10,1%
12,0%
13,8%
15,5%16,6%
5,8%6,5%
7,1%7,7%
8,3%8,9%
6,1%7,3%
8,4%9,4%
10,4%11,2%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
18,0%
2013 2014 2015 2016 2017 2018
China
US
Germany
There are significant opportunities for eCommerce in India. eCommerce as a percentage to overall retail market in India is below 1%
10
Opportunity: World of ecommerce
Blue Dart is set to capitalize on the rapidly growing ecommerce market in India.
Ecommerce Total (USD Bn)
Source: KPMG study: Blue Bird US$ = ₹ 63
2.4 3.6 5.4 8.412.7
19.2
29.1
2014 2015E 2016E 2017E 2018E 2019E 2020E
Last Mile Delivery(USD Mn)
Efulfilment ( USDMn)
X-Border Transactions ( USD Mn)
28.6 39.8 53.872.7
98.1132.4
176.2
2014 2015E 2016E 2017E 2018E 2019E 2020E
1.2 2.3 4.17.5
13.8
25.1
45.9
2014 2015E 2016E 2017E 2018E 2019E 2020E
138 196 278393
558
791
1122
2014 2015E 2016E 2017E 2018E 2019E 2020E
India Revenue Expectations
~1.1%
~0.5%~5.5%
First Mile ~1.5%, Reverse Logistics ~1%
11
Opportunity & Execution
Source: KPMG study US$ = ₹ 63
Indian Lastmile delivery/X-Border/Efulfillment Market size (USD Mn)
Key Growth Drivers
Growing mobile and internet penetration in non urban areas is the key driver for the growth of ecommerce in India
Demand from the Tier II, III and Small towns
Blue Dart’s Performance
Last mile Delivery
efulfillment
X Border
Blue Dart is a leading and preferred ecommerce logistics provider Focussed on improving eCommerce last mile delivery reachExploring possibility of alternate delivery channels to further strengthen the delivery
Blue Dart has entered into efulfillment with successfully rolling out its first efulfillment center at Delhi NCROther centers in pipeline ; Bangalore (November 2015), Mumbai (Q1, CY 2016)
With ecommerce evolving further, Blue Dart is set to serve its ecommerce customers by delivering orders abroad. Service on the India – USA trade-lane
2014 2015E 2016E 2017E 2018E 2019E 2020E
1122
176
45.9
791
13.8
350
558393278196138
13298
7354
4029
25.1
7.5
2.34.1
1.2
LAST MILE
EFULFILLMENTX BORDER
12
Technology & Automation: Infrastructure
Industry-leading adoption of new technology to enhance productivity, drive efficiencies, and ensure speedy and accurate information access to customers
Auto Sorter (B2C) Reverse Logistics (B2B / B2C)
Autosorters for sorting of ecommerce shipments
E-fulfillment facility to cater to the ecommerce needs
EFulfillment Centre (B2C)
Smoother Returns Management and Visibility
13
Technology & Automation: Infrastructure
Industry-leading adoption of new technology to enhance productivity, drive efficiencies, and ensure speedy and accurate information access to customers
Weight Dimension Labeling (B2B /B2C) Global Positioning System (B2B /B2C)
Captures shipment dimensions & weight
Improves billing accuracy
Automates the process
Enables speedy operations
Integrates with operations ERP
Supports vehicle tracking through Network Control Centre (NCC)
Provides 24X7 visibility
Enables dynamic routing
Enhances security
Accurate billing Real-time shipment visibility
Hand Held Device (B2B /B2C)
Captures real-time field delivery information
Supports adherence to customer SOP
Enhances security via in-built imaging and data solutions
Enables dynamic routing
Speedy delivery information
14
Technology & Automation: Last Mile
MOBILE SERVICE CENTRE (B2B /B2C)
Mobile Service Centre Vehicles for ecommerce deliveries
PARCEL LOCKER (B2C)Automated
Parcel Locker for ecommerce shipments pickup & drop
Mobile Payment Mechanisms –Credit / Debit card
MPOS (B2C)Smart Truck (B2B /B2C)
Increases visibility of operations
Simplifies inbound process and makes it less error-prone
Reduces emissions and transport costs due to dynamic tour planning
Customizable planning engine helps set conditions for number of stops for designated route
“Intelligent” Pick-up and Delivery
Industry-leading adoption of new technology to enhance productivity, drive efficiencies, and ensure speedy and accurate information access to customers
Alternate Delivery Options for consignee
PARCEL SHOP (B2C)
15
Technology & Automation: eCommerce & Eco-system
Industry-leading adoption of new technology to enhance productivity, drive efficiencies, and ensure speedy and accurate information access to customers
CROWD SOURCING (B2B /B2C)
Alternate Delivery Options (Blue Way)
Payment services through mobile wallet
BLUE WALLET (B2C)
Revamp of the old website with additional functionalities
www.bluedart.com (B2B /B2C)
MPS Track (B2B /B2C)Multiple Piece Level Tracking using wearable devices (Dart Apex and Dart Surfaceline shipments)
16
Cognizant of Challenges
VUCA* Macroeconomic and Business EnvironmentIntroduction of Innovative customer-centric solutions
Exposure to fluctuations in Crude Oil, Diesel and CurrencyStrong Mitigation plan through Fuel Surcharge Mechanism Introduction of Currency Adjustment Factor.
Entry of New Organized Players as Industry MaturesSignificant barriers-to-entry due to infrastructure bottlenecks like limitations of airside space, time slots, licensing and others
Availability of Skilled Front-Line ManpowerStrengthen the Employer of Choice ImageMore Automation
Changes in Regulatory Environment: Postal Bill, Carriage by Road Act, 2007 and Kerala VAT RegulationsProactively monitor the developments and adapt as necessary VUCA = Volatile, Uncertain, Complex and Ambiguous
17
Strategic Direction: Short to Medium Term
Continuous sequential and improvements to operational excellence – Reach, Transit Time, Service Quality
Strong Focus and differentiation for Industry Verticals – ecommerce, Banking & Financial, Computer & IT, Life Science & Healthcare, Consumer Durables, Consumer Electronics etc
Focus on emerging markets, sectors & SMEs
Initiatives act as strong enablers to growth
18
Strategic Direction: Long Term
Improve Air & Ground Market Share
Improve Share of Wallet / Business in all focus verticals
Invest in innovation for the next generation technology, state-of-the-art infrastructure, customer centricity, service quality, highly trained
and motivated workforce and profitable growth
A strong Strategy to meet and exceed stakeholder expectations
19
A Proven Track Record
Source: Audited Company Financial Reports. (1) All financials are on a Consolidated basis . (2) Total Income comprising Service Charges, Commission and Other Income
Year Ended Dec ‘10
Year Ended Dec ‘11
Year Ended Dec ‘14
Year Ended Dec ‘15
Accounting Period Ended March 31st
2013 (15M)
183.06 240.81 351.06 313.65 364.5726.2%
31.3%11.7% 16.3%45.8%
Income (2) ($ Mn) and Growth
15 20 31 19 218.2% 8.2% 6.2% 5.6%8.7%
Net Profit ($ Mn) and Margin
15 1729 19 24
Cash from Operating Activities ($ Mn)
US$ = ₹ 63
20
A Proven Track Record
Source: Audited Company Financial Reports. (1) After appropriatingUS 64 Million towards allotment of fully paid up non-convertibledebentures by way of bonus, DDT thereon and expenses related todebentures (2) Adjusted book value USD 4.7 (without bonus debentureand related expenses.
Year Ended Dec ‘10
Year Ended Dec ‘11
Year Ended Dec ‘14
Year Ended Dec ‘15
Accounting Period Ended March 31st
2013 (15M)
85.9 104.5 103.1 100.847.2 (1)
Networth* ($ Mn)
3.6
4.4 4.3 4.2
2 (2)
Book Value* per share ($)
Networth = Share Capital + Reserves & Surplus* On standalone basis
US$ = ₹ 63
21
A Proven Track Record
Source: Audited Company Financial Reports.(1) Cash from Operating Activities on a Consolidated basis. (2) Excludes Advances / Loan to Blue Dart Aviation. (3) RoCE on a standalone basis. (4) RoCE calculated as EBIT / Average Capital Employed.
Year Ended Dec ‘10
Year Ended Dec ‘11
Year Ended Dec ‘14
Year Ended Dec ‘15
Accounting Period Ended March 31st
2013 (15M)
28.3% 29.3%41.5% 29.2% 32.4%
Return on Capital Employed (RoCE) (%)
22
The world of ‘e’: Vision for the Future
50 1020
3040
00
eFacilitationeFulfillmentDeliveryCross-border eCommerce
Phase II
Strong Focus on eCommerce
Market leaderServing all leading ecommerce in India Multiple options: Parcel Lockers, Crowd Sourcing etc
First e-fulfilment centre operationalSecond to be operational in November 2015
Solutions tobe launched soon
To be reviewed post2016
23
The Most Awarded Logistics Company in India
24
Brand / Customer Service / Retail / Loyalty: Reader’s Digest Most Trusted Brand‘ Gold Award (7 years in a row) | Blue Dart ranked amongst ‘India’s Top 500 Companies’ by Dun & Bradstreet | ‘Brand Builder of the Year’ – 11th Indira Awards for
Marketing Excellence 2012 | ‘Quality Excellence Award for Customer Loyalty Programme’ – Blue Points – National Quality Excellence Awards 2012 | ‘Quality Excellence Award in Product Development’ – GOGREEN CNS – National Quality
Excellence Awards 2012 | ‘Retail Best Employer of the Year’ – 8th Reid & Taylor Award for Retail Excellence | ‘Customer Loyalty Program’ – Blue Points – 8th Reid & Taylor Award for Retail Excellence | ‘Best In-House Magazine’ – Daily News – 6th
INDY'S Awards 2012 | ‘Customer & Brand Loyalty Award in the Logistics Sector’ – Domestic Express – 5th Loyalty Awards | ‘Air Cargo Carrier of the Year Award’ – Indian Supply Chain & Logistics Summit and Excellence Awards | Human Resources |
‘Organization with Innovative HR Practices’ – Asia Pacific HRM Congress Awards 2012 | Ranked as one of the ‘Best companies to Work for in India 2012’ – Great Place to Work Institute, India (thrice in a row) | ‘Best HR Practices from an SME’ – 2nd SHINE.COM HR Leadership Awards | ‘Organization with Innovative HR practices’ – Global HR Excellence Awards 2011-
2012 | ‘Best HR Strategy in Line with Business’ – 6th Employer Branding Awards 2012 | ‘Organization With Innovative HR Practices’ – Asia Pacific HRM Congress | Sustainability | ‘Environmental Leadership’ – GOGREEN Carbon Neutral Service
(CNS) – Responsible Business Awards 2012 | ‘Sustainable Education Strategy’ – Blue Edge: Empowering Lives –Responsible Business Awards 2012 | ‘Best in CSR’ (Overall) – Responsible Business Awards 2012 | ‘Support and
Improvement of Education’ – Blue Edge: Empowering Lives – 6th INDY'S Awards 2012 | ‘Outstanding Contribution to the Cause of Education’ – Global HR Excellence Awards 2011-2012 | Individual | ‘CEO of the Year’ – Anil Khanna – Asia Pacific HRM
Congress Awards 2012 | ‘Responsible Business Leader’ – Anil Khanna – Responsible Business Awards 2012 | ‘Best CEO on India’ – Anil Khanna – Corporate Excellence Awards 2012 | CEO Thought Leader Award’ – Anil Khanna – Thought Leaders
Award 2012 for Mastering Change in a Hyperactive Business Environment | ‘Logistics Achiever’s Award’ – Anil Khanna –Logistics Talent Hunt 2012: International Conference and Award | ‘Brand Builder of the Year’ – Anil Khanna – 11th Indira
Awards for Marketing Excellence 2012 | ‘CEO of the Year’ – Anil Khanna – National Quality Excellence Awards 2012 | ‘Exemplary CEO of the Year‘ – Anil Khanna – Global HR Excellence Awards 2011-2012 | ‘Best CFO of India’ – Yogesh Dhingra
– Corporate Excellence Awards 2012 for his exceptional contribution to corporate finance | CFO 100 ‘Recognition of Excellence’ – Yogesh Dhingra, for his exceptional contribution to corporate finance | ‘Best Customer Service Professional of
the Year’ – Arun Nangpal – National Quality Excellence Awards 2012 | ‘Brand Builder of the Year’ – Ketan Kulkarni – 11th Indira Awards for Marketing Excellence 2012 | ‘Retail Leadership Award’ – Ketan Kulkarni – 8th Reid & Taylor Award for Retail
Excellence 2012 | ‘The Quality Champion Award’ – Asmita Malvankar – National Quality Excellence Awards 2012 | ‘Marcom Professional of the Year’ – Subrato Roy – 6th INDY'S Awards 2012
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