MAHLOGNSE8 May 2019

Mahindra Logistics Limited has informed the Exchange regarding Analysts/Institutional Investor Meet/Con. Call UpdatesIn compliance with Regulation 30(6) of the Securities and Exchange Board of India (...

Mahindra Logistics Limited

Mahindra LOGISTICS

Our Ref: MLLSEC/93/2019

8 May 2019

To, BSE Limited, (Security Code: 540768) Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai - 400 001

Mahirtdra Logistics L killed Unit No. 3 ck 4, 76 Floor, Tecliniplex 2., Techrtipier Complex, Veer S avarkar Marg, Goregaon (West). Murnbai - 400 062

Tel : + 91 22 28715500 Td1 Free : 1S00 258 6787 Maltindralogislies.com

Read Office MakUnd re. Towers, P. K. Kume Chow 1c. Worli.., Mumbid. - 400 015

CIN : L63000MH200 7PLC 1 7346,6

National Stock Exchange of India Ltd., (Symbol: MAHLOG) Exchange Plaza, 5th Floor, Plot No. C/1. “G” Block, Bandra -Kurla Complex, Bandra (East), Mumbai – 400 051

Dear Sirs,

Sub: Outcome of interactions with Analysts/Institutional Investors/Funds - Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”)

This is further to our letter dated 25 April 2019, wherein we had given advance intimation of earnings conference call scheduled today viz. Wednesday, 8 May 2019 with several Analysts/Institutional Investors/ Funds on the Audited Standalone and Consolidated Financial Results of the Company for the fourth quarter and financial year ended 31 March 2019 (“Q4 and FY 2019 Financial Results”).

In compliance with Regulation 30(6) of Listing Regulations, we hereby inform you that the Company has today viz. Wednesday, 8 May 2019, completed its Earnings conference call with several Analysts/Investors/Funds on Q4 and FY 2019 Financial Results.

The Analysts/Investors/Funds were briefed on the published Q4 and FY2019 Financial Results, the enclosed earnings presentation and general business overview of the Company.

The audio and text transcript of the earnings call will also be uploaded on the website of the Company at http://www.mahindralogistics.com/investor/financial-information

Kindly take the same on record and acknowledge receipt.

Thanking you, For Mahindra Logistics Limited

Brijbala Batwal Company Secretary

Enclosure: as above

Mahindra Logistics Ltd Mahindra Logistics Ltd

Q4 & FY19 Earnings Presentation Q4 & FY19 Earnings Presentation

May 8, 2019 May 8, 2019

Disclaimer

Certain statements and opinions with respect

to the

anticipated future performance of Mahindra Logistics in the

presentation (“forward-looking statements”), which reflect

various assumptions concerning the strategies, objectives

and anticipated results may or may not prove to be correct.

Such statements generally are identified by forward-

looking words such as “believe,”

“plan,”

“anticipate,”

“continue,”

“estimate,”

“expect,”

“may,”

“will” or other

similar words. They

involve a number

risks,

uncertainties and assumptions which could cause actual

results or events to differ materially from those expressed

implied by the forward-looking statements. These

include, among other

factors, changes in economic,

political, regulatory, business or other market conditions.

Such forward-looking statements only speak as of the date

the presentation is provided to the recipient and Mahindra

Logistics is not under any obligation to update or revise

such forward-looking statements to reflect new events or

circumstances. No representation or warranty (whether

express or implied) is given in respect of any information in

this presentation.

mahindra LOGISTICS

Q4 / FY2019 Results Overview Q4 / FY2019 Results Overview

3 3

Key Highlights – FY2019 vs FY2018

mahindra LOGISTICS

3,851

I 12.7%

Revenue from operations

159

26.5%

EBITDA

I 8.8% 1,366 Revenue from Non Mahindra SCM Segment

133

30.7%

PBT

385

I 13.2%

Revenue from PTS Segment

32.4%

PAT

35.7% Adjusted PAT (Pre RSU/ESOP Charge)

___

Note: 1. Consolidated financials 2. All figures in INR crore, unless stated otherwise

Management Comment

Mahindra LOGISTICS

Commenting on the performance, Mr. Pirojshaw Sarkari (Phil), CEO at Mahindra Logistics Ltd. said:

“Mahindra Logistics added over Rs. 400 Cr to its topline and Rs. 21 Cr to its bottom line. We have achieved margin expansion because of efficiencies driven across segments. We achieved positive free cash flow of Rs. 39 Cr for FY 19 as compared to negative in the previous 2 years. In Non-M&M Warehousing and value-added services we have grown by 30% over FY 18. We are pleased to declare an increased dividend of 18%.

It gives me immense pleasure that we kept our commitment of training 10,000 drivers under PMKVY during the year. The drivers who got trained were not only working for our operations, but also across the industry. I reiterate that for “Make in India” to succeed, “Move in India” has to be more efficient”.

Consolidated Summarized P&L Statement

Mahindra LOGISTICS

*Note 2

Note: 1. All figures in INR crore, unless stated otherwise Note: 2 Adjusted EBITDA and Adjusted PAT are before ESOP/RSU charge.(FY 19- Rs. 5.6 Crs, FY 18 – Rs. 1.7 Crs)

YoYYoYChange (%)Change (%)Revenue from operations1014.7892.713.7%3851.33416.112.7%Other Income1.90.8130.8%7.65.929.8%Total Income1016.6893.513.8%3859.03422.012.8%Gross Margin88.877.514.6%323.1273.818.0%EBITDA42.838.511.1%158.9125.626.5%Adjusted EBIDTA46.839.019.9%164.5127.329.2%Depreciation6.05.314.8%21.919.711.2%EBIT36.733.210.5%136.9105.929.3%Interest1.00.922.1%3.53.8-7.5%Profit before tax35.732.410.2%133.4102.130.7%Profit after tax23.820.914.0%86.465.332.4%Adjusted PAT26.521.225.0%90.166.435.7%EPS (Diluted) in INR3.292.8714.6%11.979.0432.4%ParticularQ4 FY19Q4 FY18FY19FY18FY19 Financial highlights

mahindra LOGISTICS

Revenue from operations grows to Rs. 3,851 crore, up 12.7% Y-o-Y

• M&M revenues in SCM business increases by 15.4%

• Non-M&M revenues in SCM business increases by 8.8%

o Revenue from warehousing & other valued-added services increases

by 29.5%

EBITDA at Rs. 158.9 crore, up by 26.5%

PBT improves by 30.7% to Rs. 133.5 crore. PBT % increased by 47 bps

from 2.98% to 3.45%.

PAT higher by 32.4% to Rs. 86.4 crore.

PAT Adjusted for non-cash expense of ESOP/RSU Charges is Rs. 90 Cr, a

growth of 35.7% over FY 18.

Note: 1. All figures in INR crore, unless stated otherwise

FY19 highlights

mahindra LOGISTICS

• Free cash flow for the year improved by Rs. 71 Cr to Rs. 39 Cr positive

as compared to Rs. 32 Cr negative in FY 18.

•

Improvement in ROCE from 25.5 % to 28.1% over the same time previous

year.

• For the first time ever, the company crossed Rs. 1000 Cr revenues in

Non-Auto segment in the SCM business.

• Proportion of warehousing and other value-added activities reached

26% in Non-M&M SCM segment

• Completed training of 10,000+ drivers across India within one year,

under Pradhan Mantri Kaushal Vikas Yojana, an important initiative to

make our roads safe.

Note: 1. All figures in INR crore, unless stated otherwise

Segmental Performance – SCM

Revenue

Gross Margin (GM)

mahindra LOGISTICS

3,466

3,076

FY18

FY19

807

917

Q4 FY18 Q4 FY19

282

242

FY18

FY19

Growth

13.7%

12.7%

Growth

14.8%

16.7%

Mahindra Revenue

Non-Mahindra Revenue

GM (%)

8.5%

8.6%

7.9%

8.1%

2,100

1,820

FY19

FY18

471

543

Q4 FY18 Q4 FY19

1,256

1,366

FY18

FY19

336

374

Q4 FY18 Q4 FY19

Growth

15.4%

Growth

11.4%

8.8%

Note: 1. Consolidated financials 2. All figures in INR crore, unless stated otherwise.

Non-Mahindra SCM Revenue Analysis

Transportation

983

1,012

26%

mahindra LOGISTICS

Warehouse & other value- added segments

354

273

264

278

Q4 FY18 Q4 FY19

FY19

FY18

74%

Activity-wise Breakup FY19

Q4 FY18 Q4 FY19

1 I

FY19

FY18

Growth

5.5%

2.9%

Growth

32.8%

29.5%

Auto

Non-Auto

320

340

25%

936

1,026

Q4 FY18 Q4 FY19

FY19

FY18

75%

Industry-wise Breakup FY19

289

258

N n

Q4 FY18 Q4 FY19

FY18

FY19

Growth

9.9%

6.5%

Growth

11.8%

9.5%

Note: 1. Consolidated financials 2. All figures in INR crore, unless stated otherwise.

Segmental Performance – PTS

mahindra LOGISTICS

Revenue

Gross Margin (GM)

385

340

1 1

FY19

FY18

Q4 FY18 Q4 FY19

FY18

I FY19

GM (%)

10.4%

9.4%

10.6%

Growth

13.1%

13.2%

Growth

13.4%

27.6%

Note: 1. Consolidated financials 2. All figures in INR crore, unless stated otherwise

The government continues to work towards developing the logistics sector

Draft National Logistics Policy released

NITI Ayog to introduce ITeS policy

FAME II set new standards

▪ The Ministry of Commerce

▪ Government think tank, Niti

▪ The Ministry issued a new

releases the draft of the National

Aayog is working on an ITeS

notification on 28th March 2019

Logistics Policy. Apart from

policy to introduce intelligent

setting new standards for

setting up a separate fund and a

transport system in the country

Faster Adoption and

single-window e-marketplace,

in the wake of increasing road

Manufacturing of Hybrid and

the draft policy also suggested

fatalities.

setting up of a National Council

for Logistics which will be

chaired by the Prime Minister.

Source: media reports

Electric Vehicles (FAME-II),

criteria under which electric

vehicles will be eligible for

incentives.

MLL has successfully trained 10000+ drivers in a year! under the Pradhan Mantri Kaushal Vikas Yojana

India needs skilled drivers to move the wheels of the Indian economy. MLL took up this challenge and conducted trainings at 229 locations pan India on: • Road Safety • Crisis & Conflict Management • Vehicle Maintenance and Sustainability • Statutory Compliances • Stress Management • Soft Skills

Mr. Anand Mahindra’s letter to the PM Mr. Narendra Modi Mr. Anand Mahindra’s letter to the PM Mr. Narendra Modi

14 14

MLL spearheading the ‘Zero Accident Zone’ MLL spearheading the ‘Zero Accident Zone’ initiative on Mumbai-Nashik Expressway initiative on Mumbai-Nashik Expressway

5 15

Company Overview Company Overview

16 16

One of India’s largest 3PLs

INR 38+ Bn revenue(1)

17,800+ work force across India(2)

475+ client and operating locations

Divisions:

Supply Chain Management

People Transport Solutions

Subsidiaries:

Lords Freight (India) Pvt. Ltd.

2x2 Logistics Pvt. Ltd.

Joint Venture:

Transtech Logistics Private Limited

MLL Bhiwandi warehouse

(1). Revenue for FY19 (2). Includes 3rd Party Contract Manpower

3PL (Third party logistics): strong growth outlook

mahindra LOGISTICS

Growth Trajectory

I.'.

....... •••

1110

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411.,

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Ep INR trillion

Total logistics

3 PL Business

INR billion

GpGik-"*I° 9.2

6.4

570- 580

GPGikYr°

325-335

Huge growth opportunity in 3PL – expected to grow at CAGR of 19-20%

FY17

FY20

FY17

FY20

2020

3 PL Business 6%

3PL Growth Drivers

Major Trends

Large organized 3PL players to enjoy a distinctive edge over smaller, unorganized players due to:

▪ ▪ ▪ ▪ ▪ ▪

Pan-India presence

Ability to offer scalable and flexibility solutions

Solutions driven capability

Technology driven implementation

Cost-effective solutions

Professional management and brand

, /

c i m o n o c E

: s r e v i r D

r e m o t s u C

: s r e v i r D

GST Implementation

Make in India

Technology Proliferation

Focus on core business

Need for value added services

Need for flexible and scalable solutions

Source: Report of supply chain and 3PL potential in India, freight forwarding and corporate people transportation services, CRISIL research

GST to act as a major driver for future growth and consolidation

mahindra LOGISTICS

No Borders

▪ Seamless inter-state movement of goods ▪ Redesign of supply chain – efficiencies instead of tax

De-Bottlenecking

▪ Removal of check posts - speed up transportation

Value Added Services

▪ Opportunity to offer value-added services - restructure

and manage complex distribution channels

Hub-and-Spoke

▪ Efficiencies through organized logistics, and lower

freight costs

Consolidation

▪ Expected consolidation of warehouses ▪ Advent of large multi-user integrated regional

warehouse

MLL: Ready for GST

▪ GST ready multi- user warehousing key certain in locations

▪ Cater to changing transportation requirements

–

▪ Primary

bigger trucks

▪ Secondary longer distances; more transit maintain service levels

reliable time to

mahindra LOGISTICS

MLL: Differentiated Play: 3PL Offerings

One stop shop for logistics end-users: MLL pursues a unique ‘asset-light’ business model to provide customized logistics solutions across a diverse set of industries

3 PL

2 PL

- ,

•

Asset-light / Low capital outlay

Asset-heavy / Capital intensive

End-to-End logistics

Limited transportation and warehousing services

Provides value added services

No value added services

Offers scalable, flexible & customized solutions

Limited scope to scale-up & provide flexible & customized solutions

Vast resource network

Restricted resource network

High return ratios

Relatively low return ratios

Operates with latest IT software’s and Apps

MLL is one of the Pioneers of 3PL model in India

mahindra LOGISTICS

Supply Chain Management (SCM)

INTEGRATED SERVICE PROVIDER

IMMIE MN\ IE ‘IkwwAr,

-","•n

• • a

•

Supply chain consulting

Freight forwarding

Transportation

Distribution

VAS (e.g, Packing, labelling, kitting)

Warehousing - inventory & order management

o= —= -

MLL Network – surface express services

In-factory stores & line feed

National transport

Warehousing & consolidation

In-Factory stores and line feed

24 offices 350+ operating locations 20+ Network hub locations

15 mn+ sq ft

50+ stockyards

At 50+ manufacturing locations across India

Integrated end to end service offerings to the customer

People Transportation Solutions (PTS)

mahindra LOGISTICS

One of India’s largest organized asset light player

Offers technology enabled people transportation solutions and services to over 150 domestic & multinational corporates

i 1 1 1 1 I.

13 Cities

•

i 1 150+ Clients 1 1 1 1 I. ..

•

( I I I I

t s.

325+ Business Partners

••

I I I I

..•

Clients

Primarily serve leading corporates: IT, ITeS, Business Process Outsourcing, Financial services, Consulting and Manufacturing Industries

Asset light business: formidable ecosystem of business partners

Business partners network

Business Partners

mahindra LOGISTICS

Unique strengths that have enabled MLL to create a wide network of business partners:

▪ Genesis of the exceptional business model: Large anchor client with sizeable PAN-India presence – Mahindra & Mahindra

▪ Mahindra brand and trust: mutually

beneficial partner relationships – based on trust and comfort built over decades

▪ MLL’s scale enables it to provide

business assurance, process, and technology to its business partners

▪ Business partner development and

loyalty program

M C S

. s o n 0 0 0 , 1 ~

~ 3 2 5 n o s .

P T S

Vehicles

Manpower

Warehouses

MLL

▪ Sales & Solutions design

▪ Process

▪ Technology infrastructure

▪ Control tower

▪ Training & development

Built over decades of trust and engagement

MLL’s competitive advantage: ‘Asset-Light’ model

mahindra LOGISTICS

MLL

Mahindra LOGISTICS

▪ High Return on Equity ▪ Low Capital Expenditure requirements ▪ Lower Working Capital requirements

MLL Asset Light model benefits both MLL and customers

Customers

▪ Scalable solutions – both upwards and

downwards

▪ Flexible, customized solutions that meet

specific needs

mahindra LOGISTICS

Diverse industries and clients

Diversified Logistics Company

▪

SCM business spans Automotive, Engineering, Consumer, Bulk, E-commerce, and Pharma sectors

65% of non-Mahindra business came from top 20 customers in Fiscal 2019

– Given the nature of business, engagement originates at CXO level – leading to deep relationships

– MLL is deeply ingrained in clients operational ecosystem – own employees present in various client

manufacturing facilities. Cost of replacement is significant

– Client retention rate has been 100% for the top 25 SCM, non Mahindra group clients in F19.

Non Mahindra SCM – sample clients

Revenue from ops for Non-Mahindra SCM (INR lakhs)

136565

ASHOK LEYLAND

BOSCH

THERMAX

SIEMENS VolIn

Non M&M Revenue % to Total Revenue

35,231

FY15

29.87%

CAGR ~40%

Source: Report of supply chain and 3PL potential in India, freight forwarding and corporate people transportation services, CRISIL research

FY19

43.99%

mahindra LOGISTICS

Diverse industries: track record of leveraging existing skills to enter fast growing verticals

Strong focus to equally diversify across industry verticals

Strategy of cross-deployment of skills – entry and expansion into existing and new areas such as

Auto engineering, consumer & pharma, e-Commerce & bulk

E-commerce – New business vertical delivering growth

▪

E-commerce service portfolio has been enhanced over a period of time

Includes not only transportation and warehousing but also integrated logistics management

Expanding array of services to provide comprehensive solutions to clients in e-commerce space

Vendors

Fulfillment Centre (FC)

State FC

State Sort Centre(SC)

City Distribution Centre (DC)/SC

Store

End customer

MU WOO

Technology and control tower is a key differentiator

mahindra LOGISTICS

Location Clustering Ce areaArsa Hae Hig.hag LE.ad

D.:melons

Huh Level Monitoring

TIT@ 0..igh-mrdS runs *d ' OehilxiiTot.

trinkicl frerpiqh sawsfry etero4. foe roport ettesuhgM piekYrIOrlti

What does it do?

ConNgurable Geo Fencing

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tr-03 !al.& ki

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waitL 9 h`..F.sitkiarr9r1

Trend Analysis R'gonno ene.* of *goal t& eaba.' ETA ro SYLSOE eiTekl lewarians GlEhery

End to end truck track and trace ▪ Time management ▪ Minimize idle time ▪ Maximize truck utilization

Dispatch planning ▪ Optimize truck planning ▪ Capacity and cost

optimization

Value added services ▪ SMS & Email service

updates

Real Time Shipment Trading Torkg the curnini ocarbn oftf,a Litturerd

Vro daraNd Locatiap Hirdorf

SOL and KPI Measurement Accurate aWsitied eparta

aqd .KP! Tfred sof e rnEd Ltraugh

KEY ROLES FOR THE CONTROL TOWER

TRACKING

ANALYTICS

SHIPMENT CREATION

HELPDESK

NEW ACCOUNT ON-BOARDING

Corporate Social Responsibility

Driver Welfare

Driver welfare is a major focus area for us. Activities

include:

• Developing restrooms and other infrastructure facilities

for drivers along highways and at major loading or

unloading points

• Training on safe driving (e.g. seat belt campaign)

• Scholarships for the children of drivers

Nanhi Kali

• Project Nanhi Kali was initiated by the K. C. Mahindra

Education Trust, with the aim of providing primary

education to underprivileged girl children in India

• Through Nanhi Kali, MLL has sponsored the education

of nearly 2,303 girl students in FY19

mahindra LOGISTICS

WEAVING PERFECT PARTNERSHIPS TO BUILD HER LIFE

NeAlfi

for the girl child

Thank You Thank You

About Us

About Mahindra Logistics

Mahindra LOGISTICS

For further information please contact:

Mahindra Logistics Limited (MLL) is a portfolio company of Mahindra Partners, the USD 1 billion private equity division of the USD 20.7 billion Mahindra Group. MLL is an integrated third-party logistics (3PL) service provider, specializing in supply chain management and people transport solutions. Founded more than a decade ago, MLL serves over 300 corporate customers across various industries like Automobile, Engineering, Consumer Goods and E- commerce. The Company pursues an “asset-light” business model, providing customised and technology enabled solutions that span across the supply chain and people transport operations.

Yogesh Patel (CFO & Compliance Officer)

Mahindra Logistics Limited

Tel: +91 22 2871 5500

Email: cfo.mll@mahindra.com

For more information, visit www.mahindralogistics.com

About Mahindra Partners

Mahindra Partners is the 1 billion USD Incubation, Private Equity & Venture Capital division of the Mahindra Group. Its mission is to accelerate value creation through a diversified global portfolio of emergent businesses. The portfolio spans across multiple industries like logistics, steel processing, renewable energy, conveyor systems, retail, infrastructure consulting and skill building, luxury boat manufacturing and media. It has recently expanded operations in U.S. by investing in the IoT and shared mobility space.

For more information, visit www.mahindrapartners.com

About Mahindra

The Mahindra Group is a USD 20.7 billion federation of companies that enables people to rise through innovative mobility solutions, driving rural prosperity, enhancing urban living, nurturing new businesses and fostering communities. It has a leadership position in utility vehicles, information technology, financial services and vacation ownership in India and is the world’s largest It also enjoys a strong presence in agribusiness, components, commercial vehicles, consulting services, energy, industrial equipment, logistics, real estate, steel, aerospace, defence and two wheelers. Headquartered in India, Mahindra employs over 200,000 people across 100 countries.

tractor company, by volume.

Learn more about Mahindra on www.mahindra.com / Twitter and Facebook: @MahindraRise

Anoop Poojari / Devrishi Singh

CDR India

Tel: +91 22 6645 1211/ 1222

Email: anoop@cdr-india.com

devrishi@cdr-india.com

mahindra LOGISTICS

ACCELERATING COMMERCE. EMPOWERING COMMUNITIES TOR ise .

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Mahindra Logistics Limited has informed the Exchange regarding Analysts/Institutional Investor Meet/Con. Call UpdatesIn compliance with Regulation 30(6) of the Securities and Exchange Board of India (...

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