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8/9/2019 Corporate Presentation May2010
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CORPORATE PRESENTATION2009-10
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Cautionary Statement
Statements in this Presentation describing the Company s objectives,
estimates, expectations or predictions may be forward looking
statements within the meaning of applicable securities laws and
regulations. Actual results could differ materially from those expressed
or implied. Important factors that could make a difference to theCompany s operations include global and Indian demand supply
conditions, cyclical demand and pricing in the Company s principal
markets, changes in Government regulations, tax regimes, economic
developments within India and other factors. The Company assumes no
responsibility to publicly amend, modify or revise any forward lookingstatement, on the basis of any subsequent development, information or
events, or otherwise.
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V ision And Heritage
Started as a one man, one office, one truck company in1958.
Oldest and most respected logistics company in India.
Involved in all major public and private projects of nationbuilding in its history.
Continuous and strategic diversification in value added andnew areas of logistics.
One of the most trusted and respected brands in thecountry.
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8.25 Million sq . ft . of warehousing space
1200 Company Owned Branches Covering 99 .45% of the GDP
Moving 2.5% By Value of India GDP
6,500 professionals on rolls20 ,000 outsourced
At any point 7 000 trucks are carrying TCI shipments : 1 200 owned trucks & trailers
In-house ERP : EDI capableWeb based Track and Trace through GPS
Infrastructure
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Corporate Governance
Listed Entity Rated and Certified
Corporate Social Responsibility
A key partner of Bill & Melinda GatesFoundation running AIDS Intervention
Programs across India
Non Discrimination Policy
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A Single-window solutions enabler fromConceptualization to Implementation
FTL/FCL, LTL & Over-dimensional cargo
services through Road, Rail & Sea .
India s fastest growing express company fordoor to door courier and cargo .
Completes the service offering of the Group withconnectivity & services across the world at globalstandards
Leading player in CoastalShipping , N VOCC & Project Cargo
Services and SBUs
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Management Body
Management Body
ExecutiveCommittee
Core Committee(Divisions)
Long term strategy, policy makingMD, EDs, Legal, Accounts & Finance, Human
Resources, IT and Divisional Heads
Operational reviews/ Business strategyCEOs, MD, EDs, Finance, Operations & Regional
Heads
Unique to Logistics industry with high degree of professionalism
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IndustryScenario
Mature,Fragmented,Low barriers toentry, low cost
Growth, niche,high entrybarriers, costefficiency
Nascent,knowledgebased, very highbarriers, singlewindow
Growth, highentry barriers,low cost
Mature,medium entrybarriers,Single windowacross
boundariesIndustryGrowth 5-10% 15-20% 20-
3 0% 10-15% 10-15%
% of TotalRevenues(FY 09-10)
50% (7 26 cr.) 2 7 % (3 86 cr.) 1 7 % (24 8 cr.) 4 % (6 1 cr.) 0.58% (8 cr.)
TCIEBIDTAMargins
3 -5% 7 -10% 9-12% 20+% ----
TCIGrowthPattern
10-15% 20-25% 25- 4 0% 20-25% ----
8
Industry Dynamics & SBU Snapshot
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TCIStandalone
JV/ PF/Subsidiaries
ConsolidatedFY200 9-1 0
ConsolidatedFY2008 -0 9
Key Financials TCI Consolidated 200 9-1 0Rs. In Crores
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Freight Division
FTL, LTL and Parcel Service
ROAD
7 00 owned offices
Customer base of 150,000
RAIL
Containers, Parcel Vanand Wagons
Special Automotivewagons
Over DimensionalCargo
ProjectManagement
Own hydraulic axlesand trailers
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Freight Division: Financials
50% of revenues, 3 0% operating margins in FY 200 9-1 0
Revenues 6 51 6 83 7 26 6 .3
EBDITA 24 .9 3 1.7 33 .6 6 .3
% to T/O 3 .8 4 .6 4 .6 -
PBIT 21.2 2 7 .1 28. 6 5.5
Capital Employed 12 6 13 0 1 47 .0 1 3 .1
200 7-08 (Audited)
2008 -0 9(Audited)
200 9-1 0 (Audited)
% increase over lastyear
Division s share of overall business consistently reducing:
Share in totalRevenue
59% 5 7 % 56 % 52% 50%
FY2005 -0 6 FY200 6-0 7 FY200 7-08 FY2008 -0 9 FY200 9-10
Outlook:- Projected growth of 8 -10% - Increasing value addition for better margins
Rs. In Crores
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Synergy with Freight -Acquisition in ILSPL
5 1% equity stake
Container Corporation of India Ltd4 9% equity stake
P otential Benefits:
Integration of rail and road cargo movement.
Establishing synergy between two rail and roadgiants.JV company to gain provide end to end multimodal solutions.
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Express door-to-door service for time sensitive and high value documents and parcels
Domestic &International
13000 locations in India &200 countries
Air (chartered space fromAirlines)
Surface: Road & Rail
200 ,000 customers
Value Added Services
Diplomat (non servicelocation) Delivery
Holiday Service
Freight on Delivery
USP
Courier (Documents): 0 -5 kgs
Packages: 5 -50 kgs
Air cargo: all dimensions
TCI XPS Division
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TCI XPS Division: Financials
27
%of overall revenues 31
%of operating margins in FY
2009-1
0
Revenues 3 22 346 3 86 11. 6
EBDITA 24 .7 28. 7 34 .9 21. 6% to T/O 7 .7 8.3 9.0 -
PBIT 20. 4 24 .0 3 0.1 25. 4
Capital Employed 7 9.1 7 9.3 86 .7 9.33
200 7-08 (Audited)
2008 -0 9(Audited)
200 9-1 0 (Audited)
% increase over lastyear
Rs. In Crores
Outlook:Business growth projected at 20% growth
Shift in revenue mix towards high value and higher yieldsegments for higher profitability
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TCI Supply Chain Division
Auto Retail & CP Hi-Tech Telecom Healthcare Cold Chain
Supply Chain ConsultingDesign of Supply chain strategy fromprocurement to distribution
Supply Chain ExecutionLead Logistics Provider
Warehousing :Distribution Centers, Cross Docks & In-PlantIncrease in warehousing space by 0. 7 5 mn.
Cold Chain :Transport solutions for perishable cargo inPharma, Foods & Chem. by Reefer vehicles
Key Account ManagementGroup Services
CustomersCustomers added during this year includesTata Nano, GM, Nitco, Hero Honda, Samsung
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4 9% equity stake
Mitsui & Co . Ltd
5 1% equity stake
Sy nerg y to TCIL
Complete logistics solutions from inbound tooutbound transportation across India andabroad.
Sole logistics partner for Toyota Kirloskar MotorsLtd. in India
TCI s share- Revenue of Rs 46 Cr and PAT Rs 4 .0Cr, Assets Rs 2 7 Cr., Liabilities Rs 5.1 3 Cr andloans of Rs 5 Cr.
99.9% service level
Joint venture with MITSUI
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TCI Seaways Division
Ships Owned
5 ships with capacity of 2500 4500 DWT, includingProject Ships equipped withown cranes: Total capacityof 16 500 DWT
Coastal ShippingServices
Scheduled services fromEast coast to Andaman and
NicobarNeighboring countries
Other Services
Chartering of Vessels
Stevedoring & MTO License
NVOCC services with own &leased containers
Updates :
Dry dock repair and survey for 1 ship (TCI Lakshmi) was carried out at Portblair.Rising fuel cost, ship manning and attrition cost had impacted the cost of operation.Breakdown in one ship resulted in expenditure of Rs 2.50 Cr , thereby reducing the overallprofit.
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TCI Seaways: Financials
4% of business, 11 % of operating margins in FY 200 9-1 0
Revenues 5 4 6 5 6 1 -6 .1
EBDITA 10.0 13 .9 12. 3 -11. 4
% to T/O 18.6
21.5 20.2 -PBIT 9.0 9.6 8.3 -13 .54
Capital Employed 73 .6 7 5.6 7 5.2 -0.5
200 7-08 (Audited)
2008 -0 9(Audited)
200 9-1 0
(Audited)
% increase over lastyear
Rs. In Crores
Outlook :Expected to post growth of 1 5 -20% p . a . with addition of one ship in existing fleet .Dry docking of 2 ships expected in next fiscal .Auction for oil exploration in the Andaman sea is on and construction of additional port jetty isexpected during 20 10 -11 .Upgrading of Andaman & Nicobar ports into a major port shall open up the shipping trade
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50% equity stake
Scan Trans50% equity stake
TCIL had invested Rs 285 Lacs.
Equity payback achieved within 2 years.
Looking for more opportunities in same field.
Due to dry dock and break down results are notas per expectations.
Joint venture with Scan Trans
ANN -SOFIE SC AN Ap S
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TCI Global - Strategy
DomesticBranches/Foreign WOS
15 in India and 5 OperatingInternational WOS atSingapore, Hong Kong,Indonesia, Thailand andChina
Activities in India
Freight Forwarding Import & Export by Sea/Air,
Custom Clearance CHALicenses in 8 ports,
Related Transportation
Activities abroad
Freight Forwarding Import& Export by Sea/Air,
Custom Clearance,Transportation, Warehousingand Courier
Outlook - Business :Concentrate on India Centric trade
Target internal customers
Double business in the coming Financial year
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TCI Global Financials
Revenues 10. 6 8.4 4 .3 25. 3 33 .7
EBDITA - 0.9 -2.2 -2.6 -3 .7 -5.9
PBIT -0.93 -2.2 -2.8 - 3 .9 -6 .1
Capital Employed 2.0 3 .0 2.8 1. 3 4 .3
Global Domestic
(08 -0 9)(Audited)
Global Domestic
(0 9-1 0 )(Audited)
Global ForeignSubsidiaries
(08 -0 9)(Audited)
Global Foreign
Subsidiaries(0 9-1 0 )
(Audited)
Global Total Domestic &
Foreign(0 9-1 0 )
(Audited)
Rs. In Crores
Expansion Plan :4 new overseas Branches by Mar 11
6 New branches in India
Roll out operations in branches
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Other Divisions -
Cumulative capacity 11.50 MW 11.50 MW 11.50 MW 11.50 MW
Capital Employed 4766 4 844 4637 4 18 3
EBDITA 584 90 6 590 64 8
Rs. In Lacs200 6-0 7
(Audited)
200 7-08
(Audited)
2008 -0 9
(Audited)
200 9-1 0
(Audited)
- No immediate plan to add further capacity
- Return on capital employed continuously impro ving
E nerg y division
Revenues 22.2 23
.4
15.0EBDITA 0.29 0.3 0 0.2 3
PBIT 0.29 0. 3 0 0.2 3
Capital Employed 0.1 3 0.1 7 0
Trading division
200 7-08 (Audited)
2008 -0 9(Audited)
200 9-1 0
(Audited)
- Trading division has been hived off and thereby ceases to exist from FY 20 10 -11
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Demerger of Real Estate & Warehousing Division
TCI Board in its meeting held on 17 th March 20 10 has approved the demerger of its RealEstate & Warehousing Division into TCI Developers Ltd (TDL) w . e .f 1st April 20 10.
Focused attention on respective core businesses i . e . logistics and real estate
Asset light status for TCI parentImproved Return on Capital Employed & Net Worth to TCI parentMaximizing shareholders wealth by unlocking valueBook value of the assets Rs .54 Cr.
Automatic listing in BSE & NSE
Share swap ratio TCIL (F V Rs. 2 ) :TDL (FV Rs.10 ) :- 20 :115 nos . properties
Continued .
Scheme & Benefits to StakeholdersScheme & Benefits to Stakeholders
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Demerger of Real Estate & Warehousing Division
Properties identified for commercial development Residential, CommercialCapital intensive and long gestation periodInduction of strategic investors having longer perspective
Plan for Commercial DevelopmentPlan for Commercial Development
Logistics Parks, large scale warehousing centers, truck terminals, FTWZsCapital intensive and long gestation periodInduction of strategic investors having longer perspectiveAdding value through back to back long term leasing by parent
Plan for Logistics Infrastructure DevelopmentPlan for Logistics Infrastructure Development
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Capital Expenditure Plan
Hub Centers & Smallwarehouses
58.50 2 3 .26 81. 76 25.00
Wind power 9.00 0 9.00 0
Ships & Containers 50.00 0. 36 50. 36 50.00
Trucks & Containers 54 .00 29.2 4 83 .24 6 5.55
Others 28.50 7 .03 3 5.5 3 19. 4 5
Total 200.00 59.89 259.89 1 6 0.00
2006
-09Actual
2009-10Actual
TOTALActual
2010-11Proposed
Rs. In Crores
Funding Pattern:Sources of finance for the Capex in FY 2010-11:
Amount 128 3 2 1 6 0
Debt Internal Accruals Total
Rs. In Crores
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Highlights : F Y 200 9-1 0
Revenue growth achieved @ 11.51% in during FY10 as compared tosame corresponding period FY09.
PAT showed a growth of 52% despite adjusting Rs 2.9 3 cr. loss towardsderivative swap transaction.
Final Dividend @ 20% aggregating to 4 0% for the year has beendeclared by the board
ROCE improved to 1 4 .7 2% as against 1 3 .27 % in same period.
RONW improved to 1 3 .82% as against 10. 44 % in same period.
Share of value added & higher margin services increasing in respectivedivisions.
Interest incidence down due to softening of overall liquidity scenario .
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Key Ratios TCI Standalone
Revenues 1198.5 1298.0 1 4 50. 6 11. 7
Other income 4 .4 6 .5 3 .9 -3 8.6
Operating Profit /
EBDITA80.8 99.0 11 3 .9 15.1
PBDT 63 .9 74 .9 9 4 .3 25.9
PAT 28.4 28. 3* 43 .0** 51. 6
Cash Profit 51.1 5 4 .3 7 0.6 3 0.0
Share capital 1 4 .5 1 4 .5 1 4 .5 -
EPS(Fv Rs. 2 each) 3 .92 3 .91 5.9 3 51. 6
200 7-08 (Audited)
2008 -0 9(Audited)
200 9-1 0
(Audited)
% increase over lastyear
Rs. In Crores
* This figures includes a provision of Rs. 4 .00 Cr. against MTM losses.
** This figures includes a provision of Rs.2.9 3 Cr. against MTM losses.
Continued
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Key Ratios TCI Standalone Continued
EBDITA(%) 6 .7 7 .6 7 .8
NPM (%) 2. 4 2.1 2.9
ROCE (%) 12.6 13 .2 1 4 .7
RONW (%) 11.4 10. 4 13 .8
Debt/EBDIT 2.8 2. 3 2.4
Debt Equity 0.92 0.8 6 0.8 7
DSCR 1.2 1.3 1.7
200 7-08
(Audited)
2008 -0 9(Audited)
200 9-1 0 (Audited)
Rs. In Crores
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Future Outlook
Revenue growth target
15 -20%
EBIDTA target
8 -8.25%
Projected EPS growth
20 - 30%
Higher growth expected vs . last year with revival in economy & betterservices mix
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Summary
Strategy
Aiming to be an integrated
SCS provider
Adapting Global best practices
Focus on value addedproducts & services
TCI s Strengths
Structured & integrated
approach
Extensive infrastructure
High reputation and customerorientation
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V ision Statement
TCI Group should be a customer oriented, multi technology, multi specialist transport
system in the Indian and International markets, with a proven commitment to excellence in
every facet of activity and pursuit of value based policies to satisfy aspirations of society,
customers, vendors, employees, shareholders & the transport industry.
\
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THANK YOU
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