Gati Ltd provides an investor presentation outlining its business. The presentation covers Gati's business verticals and growth drivers, operational capabilities, and financial highlights. It also provides an overview of Gati, discusses its joint venture with Kintetsu World Express, and outlines the various business verticals including express distribution, supply chain solutions, international freight forwarding, warehousing, cold chain solutions, e-commerce, coastal shipping, and import/export trading.

1. GATI LTD
Investor Presentation l August 29th, 2012
1

2. Presentation Outline
• Overview
• Business Verticals & Growth Drivers
• Operational Capabilities
• Business Environment
• Financial Highlights
• Outlook 2012-15
2

3. Forward Looking & Precautionary Statement
The presentation contains certain forward looking statements concerning future business
prospects and business profitability of Gati and its affiliates, which are subject to number of
risks and uncertainties that could cause actual results to differ materially from those in such
forward looking statements. The risks and uncertainties relating to these statements
include, but not limited to, risks and uncertainties regarding fluctuation in earnings, our
ability to manage growth, competition(both domestic and international), economic growth in
India and the target countries for exports, ability to attract and retain highly skilled
professionals, time and cost overruns on contracts, our ability to manage our international
operations, government policies in action with respect to investments, fiscal
deficits, regulations, etc., interests and other fiscal costs generally prevailing in the economy.
The company does not undertake to make any announcements in case of these forward
looking statements become materially incorrect in future or update any forward looking
statements made from time to time by or on behalf of the company.
August 2012
3

4. GATI OVERVIEW
4

5. Gati - At Glance
• Established in 1989, Gati is India’s Pioneer & Leader in Express Distribution and
Supply Chain Solutions
• Service Offerings include :
– Express Distribution – Road , Rail & Air
– Supply Chain Solutions
– International Freight Forwarding & Custom Clearance
– Warehousing
– Cold Chain Solutions
– E-Commerce
– Coastal shipping
– Import/ Export and Trading
• FY – 12 Group Revenue of Rs. 12094 Million
• Operations across India, Singapore , China, Thailand, Nepal and Hong Kong
5

6. Corporate Structure
Gati Ltd
Divisions Subsidiaries
International Gati-Kintetsu Gati Ship Pvt Other Indian
International
(Freight Forwarding) Express Pvt Ltd Limited Subsidiaries
Refrigerated Fuel Station Gati Asia Pacific
E-Commerce Surface Express Transport Business Others
Subsidiaries Pte.Ltd
Kausar India Newatia Zen Cargo Movers
Air Express Commercial & Gati Hong Kong Ltd
Pvt Ltd(CHA)
Ltd Trading Pvt Ltd
Gati Import Export
SCM Trymbak Gati Thailand Ltd
Trading Ltd
Commercial &
Trading Pvt Ltd
Gati Logistics Park Gati China Holdings
GTS Ltd
Ocimum Pvt Ltd
Commercial &
Trading Pvt Ltd Gati Cargo
Express(Shanghai) Co.
Ltd(China)
Sumeru Commercial
& Trading Pvt Ltd
6

7. Our Journey to Excellence – Inception & Expansion
Inception (1989 – 1999) Expansion (2001-2006)
•1989 - 95: Introduced Door to Door service - Money Back •2001: Gati Millennium Parcel Express - First exclusive Cargo
Guarantee for delay in shipments delivery Train between Mumbai and Kolkata in association with Indian
Railways
•Cash-On-Delivery introduced
•Launched India-centric distribution solutions and forayed into
•Call Free Number - First in the Indian logistics industry to Singapore
launch the concept
•2003:Migrated the operations to the first of its kind web-
•1996: Tied-up with Indian Airlines to facilitate speedier based solution - GEMS
delivery of shipments
•2004: Introduced mechanized racking systems in the
•1997: Introduced the concept of 3rd party logistics (3PL) automated warehouse at Panvel, Maharashtra
•1998 – Received the ISO 9001 certification
•Launched courier service – Suvidha •2005: Mechatronic warehouses with APL racking and modern
handling equipment across major Indian cities
•1999: Expansion to SAARC countries by tie-up with
postal departments of Bhutan and Maldives •2006: Customer Convenient Centers introduced to enhance
accessibility
•P.D. Agarwal Development Centre set up in Pune
exclusively for employee training and development •Gati Student Express launched
7

8. Our Journey to Excellence – Consolidation & Emergence
Consolidation (2006-2008) Emergence (2008 till date)
•Online Employee Information System and Performance MIS •Launched Millennium Parcel Express Train between Mumbai
and Guwahati
•2007: Strategic alliance with China Railway Express
International Logistics Co. Ltd. •Strategic Alliance with GLS (General Logistics Systems)
•Joint Courier and Air Cargo Service with Air India •Gati Europe Express launched
•Opened Mega Mechatronic Express Distribution Centre in •Introduced e-POD (Electronic Proof of Delivery)
Bangalore
•2009: Launched Mechatronic Warehouse in Hyderabad
•Introduced VTS (Vehicle Tracking System)
•Introduced SQS (Service Quality Standardization)
•Gati Cafe Deliver – an outlet concept offering a menu of
services •2010 - Launched RedSun, Supply Chain Division
•DOD Direct (Draft on line) to reduce cycle time of customer •2010 - Ventured into E commerce – Makemygiftz.com
payments
•2011 – Launch of Go To Market Strategy – Product & Service
•2008: Launched Centralized Call Centre at Nagpur differentiation launched
•2012 – Joint Venture with KWE Japan
8

9. Awards & Recognitions
First Logistics Company in India to be awarded ISO 9001 Certification
Bagged the Voice of customer Award for “The Best Logistics Company ‘03” in a survey conducted by
Frost & Sullivan
Awarded Consumer Super Brand status in the Logistics category for 2006-07 & 2009-10
Gati was given the Champion CIO award for less than ` 1000 crores category of the Enterprise Connect
Awards – 2005, 2009
Nominated for NDTV ‘Business Leadership Awards’ 2006 in logistics category
Awarded the ‘Best Logistics Partner’ by HCL Info Systems in 2006
Gati was awarded the Amity HR – excellence award in 2005, 2007, 2008 & 2009
IT User Awards - NASSCOM - CNBC-TV18- Logistic vertical
Life time Achievement Award 2010 – Mr. Mahendra Agarwal, CEO & MD Gati Ltd.
Gati was awarded The Best Logistics Provider of the Year – Road – 2011
Edge Award 2011 for use of IT for maximising Business Impact – Video Conferencing
Mr. Mahendra Agarwal - 'Executive of the Year' Award (Logistics) by ICC - 2012
9

10. Corporate Social Responsibility
Earthquake Green Belt Weavers work Flood Relief
Relief, Gujarat Plantation, Delhi shed, AP Floods Support, Assam
Blood Donation Tsunami Relief 1 Million Tree Gati School
Camp, Kolkatta Tamil Nadu Plantation, AP Hyderabad
10

11. Distinguished Board of Directors
K L Chugh Mahendra Agarwal Sunil K Alagh N Srinivasan Dr. P S Reddy
A P V N Sarma Yoshinobu Mitsuhashi Dr. Ram S Taneja T S Rao Sanjeev Jain
11

12. GATI – Shareholding Pattern(As on 30th June, 2012)
6%
16%
2% 44% Promoters
Public
FII's
32% Bodies Corporates
Others
• Listed on BSE and NSE
• Consistent Dividend Track Record
12

13. GATI – Corporate Governance – Five Tier Governance Structure
Board
of Directors
Committee of Directors
• Professional Board
Operating Board Members • Committee Constitutes of
Independent Directors
Corporate Performance Review Committee
Business Chain Group
Our Governance focuses on the attainment of the high standards of
transparency, accountability, ethics and equity with Management Flexibility, Empowerment and
Responsiveness in the interest of the Shareholders, Customers, Employees, Business Associates
and the Society at large.
13

14. BUSINESS VERTICALS & GROWTH DRIVERS
14

15. Joint Venture – GATI & KWE
On February 13th 2012, Gati joined hands with
Kintetsu World Express - Japan’s leading logistics
service provider to form GATI-KWE, an unmatched
leader in Express Distribution and Supply Chain
Solutions.
Express Distribution and Supply Chain (EDSC)
business of Gati has moved into the joint venture
company through a Business Transfer Agreement.
KWE has invested Rs. 2,677 Mn for its 30 per cent
stake in the Joint Venture.
The Joint Venture, GATI-KWE will combine Gati’s
expertise in 3PL and express distribution in India with
KWE’s freight forwarding expertise and global
customer base. As a result, GATI-KWE is geared to
now give the Indian enterprises the Global
Advantage.
15

16. GATI-KWE – Express Distribution & Supply Chain Solutions
Gati Kintetsu Express Private Limited (GATI-KWE) is a joint venture company between
Gati and Kintetsu World Express, Japan’s leading logistics provider.
.
Industry Outlook
•Express cargo market in India is growing at 15-18% per annum(Source:
CRISIL Research Estimate)
•3PL in India is expected to grow to an INR 300 billion market by 2015(Source:
CRISIL Research Estimate)
•Introduction of GST will facilitate a country wide network of strategically
located warehouses which will generate additional business volume for
express distribution and supply chain services
Growth Drivers
New Opportunities
•Leveraging the KWE global customers
•Strengthening vertical presence - Auto Components, Pharma and
Consumer Goods and mid size companies across industries
•Dedicated New Business Development teams.
• To enhance our Business Partner network in Tier II and III cities thereby
growing our Cash and Carry Business
16

17. GATI-KWE – Express Distribution & Supply Chain Solutions
Gati Kintetsu Express Private Limited (GATI-KWE) is a joint venture company between
Gati and Kintetsu World Express, Japan’s leading logistics provider.
. Growth Drivers
Organic Growth
• Introduced New Products – Using Multi modal Express Plus and Premium
Plus and Standard for specific backhaul locations.
• Pricing Strategy – Introduced Distance based pricing
•Expanding into Intra State movement as a growth area in large states.
• Mandatory clause against fuel increase linked to freight as a % currently at
50%
• Existing customer Retention. (Currently 45% are > 3 years customers)
•Profit Enhancement through
• Freight Exchange introduced
• Fleet expansion - owned
• Developing Key Vendors for better rates.
• Improve CTC Cycle - Reduce average collection days to < 45 days
• Improve Productivity in sales and operations through using LEAN
•Further improve our Service offering and Delivery through Centralized NMC
•Investment in Surveillance systems
17

18. GATI INTERNATIONAL
Gati International, the global wing of Gati Limited is one of the leading providers of
freight forwarding and logistics services
Industry Outlook
•Indian Freight forwarding market is expected to grow at CAGR 14% to reach
USD 12 Bn in 2014.(Source KPMG Report).
•In APAC the Freight forwarding market is expected to grow at 12%.(Source-
KPMG Report).
Growth Drivers
•APAC centric operations with new trade lanes
•Consolidate buying capacities for Air and Ocean forwarding
• Collaborative approach with KWE
• Introduction of Value Added Services and a seamless transfer for
International Express Distribution
18

19. Business Partners - International
•
Air •
Freight
•
Ocean •
Freight
Global
Partners
19

20. KAUSAR INDIA – Cold Chain Solutions
Gati Kausar, a subsidiary of Gati Limited is a cold chain transportation solutions
company with over 20 years of unmatched cold chain distribution expertise.
Industry Outlook
•The cold chain industry in India is estimated to be ~INR 125 bn growing at
20-25% and expected to touch INR 400 billion by 2015
•Government of India setting up 30 mega foods parks by 2012 to propel
demand for cold storage and transportation
Growth Drivers
•Leveraging on the sector friendly policies
•High growth potential Industry
•Focus on higher-value and growth markets - Processed
foods, Pharma, Dairy, Ready-To-Eat, Marine and poultry
20

21. GATI SHIP
Gati Ship Pvt Ltd., a subsidiary of Gati Limited, is a one stop logistics solutions provider
for all sea bound cargo shipments operating vessels across several routes.
Industry Outlook
•Opening up of trade lanes between India and Myanmar will open potential
to increase our trade volumes in this sector
•Shipping Industry out look remains weak with low freight rates
Growth Drivers
•Special focus on the India – Port Blair – Myanmar lane
•To bring in a Strategic Business Partner
21

22. GATI e-Commerce
Gati E-commerce division provides an integrated end to end logistic solution to on-line
retailers.
Industry Outlook
•E-tailing market is estimated to reach Rs. 53,000 Cr in 2015
(Source: Avendus, 2011)
Growth Drivers
• Top companies in Teleshopping and e-tailing segments
•Define industry standards and set benchmarks
•Develop and establish a world class home delivery network
•Expand our capacity size to cater to 30K Home Delivery per day FY 13
• COD capability is a key market strength
22

23. OPERATIONAL CAPABILITIES
23

24. TECHNOLOGY @ GATI
IT Infrastructure Our Applications
• State of Art Data Centre with full • Gati Enterprise Management System (GEMS)
redundancy • Oracle Financials
• Enterprise class Servers and Storage • e-BizNet (Warehouse Management System)
• Disaster Recovery Site for key applications • Human Resource Information System (HRIS)
• Robust Network connecting all offices to • Mobile Applications
support operations 24 X 7 • Business Intelligence (BI)
• Vehicle Tracking System (VTS)
Customer’s facilities Awards and Recognitions
• IVR enabled toll free number – Multi • Champion CIO Award in 2005 & 2009
language support • CIO - Ingenious 100 in 2009
• Shipment Tracking information – IVR , SMS • IT User Award (NASCOM -CNBC -TV18) in
E-mail , website , Customer login and web- 2009
services • CIO Agile – 100 in 2010
• Customer’s and partner’s system integration • CTO of the Year (2nd Runner Up) in 2010
for seamless data transfer • EDGE 2010 & 2011 Award
24

25. PEOPLE @ GATI
HR Vision : We endeavour to support the organization by attracting the best talent and
consistently enhance the skill of our Gati’ites to ensure the achievement of Company’s Goals.
We aspire to be a preferred employer of choice.
Employees 3273
Business Partners (GA s/Franchisee) 2078
Total Manpower ( Aug 2012) 5351
Average Employee Age 30 years
Diversity Mix (Male:Female) 86:14
8
Top Management 8 > 10 yrs <1 yr
19% 20%
Senior
Management 28 1 to 4 yrs
5 to 10 yrs 22%
Middle 39%
Management 401
Span of Control Mgr: Non Mgr - 1 : 13 New talent account for about 20% of total
S` manpower. 58% of Gati’ites have a service tenure of
more than 5 years
25

26. INFRASTRUCTURE @ GATI
17 Express Distribution 2.5 million sft. Modernized Material Fleet of 4000+ vehicles
Centers Mechantronics Handling Equipments
Warehousing space
Fleet of 3 vessels 162 Reefer Vehicles 24x7x365 Centralized Gati Café Deliver
Customer Care Center
26

27. BUSINESS ENVIRONMENT
27

28. ECONOMY – GDP Growth
• While growth in India has moderated, the
domestic demand has remained relatively
resilient compared to the major economies
• Indian GDP growth rate in Q4 FY2011-12, eased
to 5.3% as against 6.1% in Q4 2011 and is the
lowest since 2004
Source: MOSPI
India GDP Annual Growth (at factor • Industrial production in April was broadly flat
10.0% cost: 2004-05) over the previous month and last year and
contributed to the weaker than expected GDP
9.0%
growth
8.0%
7.0%
6.0%
5.0%
4.0%
FY 2008 FY 2009 FY 2010 FY 2011 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12
28

29. Indian Express Cargo Industry
• The Indian express industry size is estimated at
Rs. 10,870 crores (about USD 2.2 billion) in 2011-
12 and is expected to grow at 17% per annum to
Rs. 17,450 crores (about USD 3.5 billion) in the
next three years.
• Future Growth Drivers – High level of consumption
demand(10% over next 10 years) and need for
specialized services(Temp controlled
services/Import cargo movement) will fuel the
future growth of industry.
• The growth of the industry will be driven by the
current major customer segments, namely auto
components, banking &
finance, garments, pharmaceuticals, IT hardware
and mobile phones, where GATI is already active
• Implementation of GST, Postal Bill, High operating
costs, Low level of infrastructure will be some
critical areas for the industry.
(Source: CRISIL, EICI Survey)
29

30. GATI - Our Growth Sectors
YOY Volume growth by Vertical
Charged Weight by Vertical FY2012 vs
Industry Vertical
FY2012 FY2011
General Manufacturing -11.5%
Consumer Goods 1.7%
Others General
21% Auto Components 16.3%
Manufacturing
Pharma 26.4%
20%
Apparel 8.7%
Apparel Others -1.5%
5% TOTAL 2.6%
Consumer
Pharma Goods • Broadly, GATI –KWE handles packages of all the major
14% 26% sectors in the economy
Auto • GATI-KWE’s strength has been that our revenues are not
Components overly dependant on any specific sector, which limits our
14% exposure to any sector specific trends
Note: FY 2012F revenues based on annualized YTD FY 2012 revenue
30

31. FINANCIAL HIGHLIGHTS
31

32. Key Highlights
• Renewal of FCCB at favorable terms - $22 Million
• Formation of Joint venture with Kintetsu World Express (KWE)for infusion
of equity Rs 2,677 Million for 30% stake with Rs. 3,305 Million debts
• Business Restructuring of Shipping Division into wholly owned subsidiary
Gati Ship Private Limited for better business focus and proposed strategic
partners
• Core business grew 9% in the current economy
• Significant deleveraging of balance sheet
32

33. Business Restructuring
70%
KWE GATI Limited
30%
100%
100%
Surface
GTS (Rail) International COAST TO Coast
Coast to COAST
Express
E-Com
e-Com
Air Express SCM
GATI KINTETSU EXPRESS GATI SHIP PRIVATE
GATI LIMITED
PRIVATE LIMITED LIMITED
33

34. BUSINESS PERFORMANCE
34

35. Express Distribution & Supply Chain (EDSC)
INR Mn
2013E YOY 2012 YOY 2011 YOY 2010
Revenues 10020 12% 8,925 9% 8,165 23% 6622
EBDITA 1154 12% 1,030 21% 851 12% 759
EBDITA Margin (%) 12 12 10 11
Outlook
• Projected CAGR (2012-2015) : Over 15%
• Business synergy with KWE , improved economic environment & increased demand of
ECOM vertical.
• Significant growth in GTS (Rail Transportation)
• Profit Improvement due to reduced interest burden
35

36. KAUSAR – Cold Chain
INR Mn
2013E YOY 2012 YOY 2011 YOY 2010
Revenues 543 35% 402 33% 303 30% 233
EBITDA 102 70% 60 13% 53 88% 28
EBITDA Margin (%) 19 15 17 12
Outlook:
•Projected CAGR (2012-2015) : Over 35%
•Focus on setting up pan India cold chain warehouses to provide integrated solutions on
Hub and Spoke model
•Reefer fleet size from 162 to 350 by 2015
•Growth fuelled by fiscal incentives and sector friendly government policies
36

37. Gati Ship
INR Mn
2013E YOY 2012 YOY 2011 YOY 2010
Revenues 803 252% 227 (75%) 923 (2%) 939
EBITDA 129 (144) (220%) 120 (19%) 149
EBITDA Margin % 5 (63) 13 16
• Significant revenue de-growth since ships were under dry docks
• Shipping division hived- off to a separate subsidiary Gati Ship Private Limited with effects from 31st
March 2012
• At the end of Q4 -GATI Majestic & GATI Pride completed their Repairs and Dry - dock and are now
operational for commercial voyages
Outlook:
• Projected CAGR (2012 - 2015) : Over 50%
• Leader in Chennai - Port Blair - Yangon route, greater focus on this route post opening of Myanmar
economy.
• Inviting strategic investor to tap full potentiality of Coastal shipping
37

38. Other Subsidiaries
Includes Fuel Stations, APAC (Foreign Subsidiarias),GIETL (Trading) & Zen Cargo (CHA)
INR Mn
2013E YOY 2012 YOY 2011 YOY 2010
Revenues 2752 5% 2,623 (9%) 2,895 130% 1,715
EBITDA 45 (27) 18 1% (13)
EBITDA Margin % 2 (1) 1 (1)
Outlook:
• Projected CAGR (2012 - 2015) : Over 10%
• Enhanced focus on trade lanes between china-India, Hong Kong - India, Singapore -India &
Germany-India. Ocean Freight product development from Africa
38

39. Consolidated – Income Statement
INR Mn
Year end 30th June
2012* 2011 2010
Revenues 12,891 12,112 9,376
EBITDA 1,801 1,007 914
EBITDA Margin 14% 8% 10%
PBT 667 237 160
PAT 415 140 95
*Includes Net Extra Ordinary Income of Rs. 750Milllion
39

40. Consolidated – Income Statement
Year end 30th June INR Mn
2012 2011 2010
INCOME
Revenue from Operations 9956 9809 8,004
Sales 1846 2220 1,257
Other Income 1089 83 115
TOTAL 12,891 12,112 9,376
Revenue Growth 6% 30%
Operating Expenses 8899 8967 6,587
Other Cost 2190 2138 1,875
Total Expenses 11,090 11,105 8,462
EBIDTA 1,801 1,007 914
Finance Cost 619 516 482
Depreciation 370 254 272
Exceptional Item (145)
Profit before Tax 667 237 160
Tax Expenses 252 97 65
Profit for the period 415 140 95
*Includes Net Extra Ordinary Income of Rs. 750Milllion
40

41. Divisional Performance – 2011-2012
Other Revenue Contribution
subsidiaries
22%
Shipping
2%
Kausar Cold EDSC
Chain 73%
3%
EBITDA Contribution
Shipping Other subsidiaries
-11% -2%
Kausar Cold Chain
5%
EDSC
82%
41

42. OUTLOOK
42

43. Trend Analysis
Revenue INR Mn
CAGR @ 17%
25,000
20,000
15,000
10,000
5,000
-
2008 2009 2010 2011 2012 2013E 2014E 2015E
16%
14%
EBITDA 14%
12%
13%
12%
10%
10% 10%
8% 10%
8% EBITDA Margin
6% 8%
4%
2%
0%
2008 2009 2010 2011 2012 2013E 2014E 2015E
43

44. Divisional Performance – 2014-2015
Other subsidiaries
Revenue Contribution
(22%)
17%
Shipping (2%)
7%
Kausar Cold Chain
(3%) EDSC (73%)
5% 71%
Other EBITDA Contribution
Shipping (-11%) subsidiaries(-2%)
10% 3%
Kausar Cold
Chain(5%)
7% EDSC (82%)
80%
() FY 2011-
2012
44

45. CAPEX Plan
IT Vehicles Infrastructure INR Mn
467
390
250 220
200
150
50 60 63
2013 2014 2015
Total Planned Expenditure : Rs. 1850 Mn over next Three Years
Funding primarily through internal accruals/ disposal of surplus land
45

46. Debt Outlook
2500 2,181
1,931 BANK
2000 1,681
1249 FCCB
1500 1,131
969
1000 689 Public Deposits
409
500 199 224 149 236 247 255
99 49
0
Gati GKE Gati GKE Gati GKE Gati GKE
2012 2013 2014 2015
46

47. THANK YOU
47