Corporate Presentation May2010

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% ----

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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)


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)


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)


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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