GATI LTD Investor Presentation l August 29th, 2012

1

Presentation Outline

• Overview

• Business Verticals & Growth Drivers

• Operational Capabilities

• Business Environment

• Financial Highlights

• Outlook 2012-15

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Forward Looking & Precautionary Statement

The presentation contains certain forward looking statements concerning future businessprospects and business profitability of Gati and its affiliates, which are subject to number ofrisks and uncertainties that could cause actual results to differ materially from those in suchforward looking statements. The risks and uncertainties relating to these statementsinclude, but not limited to, risks and uncertainties regarding fluctuation in earnings, ourability to manage growth, competition(both domestic and international), economic growth inIndia and the target countries for exports, ability to attract and retain highly skilledprofessionals, time and cost overruns on contracts, our ability to manage our internationaloperations, government policies in action with respect to investments, fiscaldeficits, 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 forwardlooking statements become materially incorrect in future or update any forward lookingstatements made from time to time by or on behalf of the company.

August 2012

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GATI OVERVIEW

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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

Corporate Structure

Gati Ltd

Divisions

International (Freight Forwarding)

E-Commerce

Subsidiaries

Gati-KintetsuExpress Pvt Ltd

Surface Express

Air Express

SCM

GTS

Gati Ship Pvt Limited

Other Indian Subsidiaries

Refrigerated Transport Business

Kausar India

Ltd

Fuel Station Subsidiaries

Newatia Commercial & Trading Pvt Ltd

Trymbak Commercial & Trading Pvt Ltd

Ocimum Commercial & Trading Pvt Ltd

Sumeru Commercial & Trading Pvt Ltd

Others

Zen Cargo Movers Pvt Ltd(CHA)

Gati Import Export Trading Ltd

Gati Logistics Park Pvt Ltd

International

Gati Asia Pacific Pte.Ltd

Gati Hong Kong Ltd

Gati Thailand Ltd

Gati China Holdings Ltd

Gati Cargo Express(Shanghai) Co.

Ltd(China)

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Our Journey to Excellence – Inception & Expansion

Inception (1989 – 1999)

•1989 - 95: Introduced Door to Door service - Money Back Guarantee for delay in shipments delivery

•Cash-On-Delivery introduced

•Call Free Number - First in the Indian logistics industry to launch the concept

•1996: Tied-up with Indian Airlines to facilitate speedier delivery of shipments

•1997: Introduced the concept of 3rd party logistics (3PL)

•1998 – Received the ISO 9001 certification

•Launched courier service – Suvidha

•1999: Expansion to SAARC countries by tie-up with postal departments of Bhutan and Maldives

•P.D. Agarwal Development Centre set up in Pune exclusively for employee training and development

Expansion (2001-2006)

•2001: Gati Millennium Parcel Express - First exclusive Cargo Train between Mumbai and Kolkata in association with Indian Railways

•Launched India-centric distribution solutions and forayed into Singapore

•2003:Migrated the operations to the first of its kind web-based solution - GEMS

•2004: Introduced mechanized racking systems in the automated warehouse at Panvel, Maharashtra

•2005: Mechatronic warehouses with APL racking and modern handling equipment across major Indian cities

•2006: Customer Convenient Centers introduced to enhance accessibility

•Gati Student Express launched

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Our Journey to Excellence – Consolidation & Emergence

Consolidation (2006-2008)

•Online Employee Information System and Performance MIS

•2007: Strategic alliance with China Railway Express International Logistics Co. Ltd.

•Joint Courier and Air Cargo Service with Air India

•Opened Mega Mechatronic Express Distribution Centre in Bangalore

•Introduced VTS (Vehicle Tracking System)

•Gati Cafe Deliver – an outlet concept offering a menu of services

•DOD Direct (Draft on line) to reduce cycle time of customer payments

•2008: Launched Centralized Call Centre at Nagpur

Emergence (2008 till date)

•Launched Millennium Parcel Express Train between Mumbai and Guwahati

•Strategic Alliance with GLS (General Logistics Systems)

•Gati Europe Express launched

•Introduced e-POD (Electronic Proof of Delivery)

•2009: Launched Mechatronic Warehouse in Hyderabad

•Introduced SQS (Service Quality Standardization)

•2010 - Launched RedSun, Supply Chain Division

•2010 - Ventured into E commerce – Makemygiftz.com

•2011 – Launch of Go To Market Strategy – Product & Service differentiation launched

•2012 – Joint Venture with KWE Japan

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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

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Corporate Social Responsibility

Earthquake Relief, Gujarat

Green Belt Plantation, Delhi

Weavers work shed, AP Floods

Flood Relief Support, Assam

Blood Donation Camp, Kolkatta

Tsunami Relief

Tamil Nadu

1 Million Tree Plantation, AP

Gati School Hyderabad

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Distinguished Board of Directors

Mahendra Agarwal K L Chugh

Dr. Ram S Taneja T S Rao

N SrinivasanSunil K Alagh

A P V N Sarma

Dr. P S Reddy

Sanjeev JainYoshinobu Mitsuhashi

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GATI – Shareholding Pattern(As on 30th June, 2012)

• Listed on BSE and NSE

• Consistent Dividend Track Record

44%

32%

2%

16%6%

Promoters

Public

FII's

Bodies Corporates

Others

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GATI – Corporate Governance – Five Tier Governance Structure

Board

of Directors

Committee of Directors

Operating Board Members

Corporate Performance Review Committee

Business Chain Group

Our Governance focuses on the attainment of the high standards oftransparency, accountability, ethics and equity with Management Flexibility, Empowerment andResponsiveness in the interest of the Shareholders, Customers, Employees, Business Associatesand the Society at large.

• Professional Board

• Committee Constitutes of Independent Directors

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BUSINESS VERTICALS & GROWTH DRIVERS

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Joint Venture – GATI & KWE

On February 13th 2012, Gati joined hands withKintetsu World Express - Japan’s leading logisticsservice provider to form GATI-KWE, an unmatchedleader in Express Distribution and Supply ChainSolutions.

Express Distribution and Supply Chain (EDSC)business of Gati has moved into the joint venturecompany through a Business Transfer Agreement.KWE has invested Rs. 2,677 Mn for its 30 per centstake in the Joint Venture.

The Joint Venture, GATI-KWE will combine Gati’sexpertise in 3PL and express distribution in India withKWE’s freight forwarding expertise and globalcustomer base. As a result, GATI-KWE is geared tonow give the Indian enterprises the GlobalAdvantage.

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GATI-KWE – Express Distribution & Supply Chain Solutions

Gati Kintetsu Express Private Limited (GATI-KWE) is a joint venture company betweenGati 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 strategicallylocated warehouses which will generate additional business volume forexpress 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

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GATI-KWE – Express Distribution & Supply Chain Solutions

Gati Kintetsu Express Private Limited (GATI-KWE) is a joint venture company betweenGati 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

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GATI INTERNATIONAL

Gati International, the global wing of Gati Limited is one of the leading providers offreight forwarding and logistics services

Industry Outlook•Indian Freight forwarding market is expected to grow at CAGR 14% to reachUSD 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

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Business Partners - International

Air

Freight

•

•

Ocean

Freight

•

•

Global

Partners

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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

GATI SHIP

Gati Ship Pvt Ltd., a subsidiary of Gati Limited, is a one stop logistics solutions providerfor 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

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GATI e-Commerce

Gati E-commerce division provides an integrated end to end logistic solution to on-lineretailers.

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

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OPERATIONAL CAPABILITIES

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TECHNOLOGY @ GATI

IT Infrastructure • State of Art Data Centre with full

redundancy

• Enterprise class Servers and Storage

• Disaster Recovery Site for key applications

• Robust Network connecting all offices to support operations 24 X 7

Our Applications • Gati Enterprise Management System (GEMS)

• Oracle Financials

• e-BizNet (Warehouse Management System)

• Human Resource Information System (HRIS)

• Mobile Applications

• Business Intelligence (BI)

• Vehicle Tracking System (VTS)

Customer’s facilities • IVR enabled toll free number – Multi

language support

• Shipment Tracking information – IVR , SMS E-mail , website , Customer login and web-services

• Customer’s and partner’s system integration for seamless data transfer

Awards and Recognitions• Champion CIO Award in 2005 & 2009

• CIO - Ingenious 100 in 2009

• IT User Award (NASCOM -CNBC -TV18) in 2009

• CIO Agile – 100 in 2010

• CTO of the Year (2nd Runner Up) in 2010

• EDGE 2010 & 2011 Award

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PEOPLE @ GATI

Employees 3273

Business Partners (GA s/Franchisee) 2078

Total Manpower ( Aug 2012) 5351

Average Employee Age 30 years

Diversity Mix (Male:Female) 86:14

S`

Top Management

Middle Management

Senior Management

S`

8

New talent account for about 20% of totalmanpower. 58% of Gati’ites have a service tenure ofmore than 5 years

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.

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401

Span of Control Mgr: Non Mgr - 1 : 13

8 <1 yr20%

1 to 4 yrs22%5 to 10 yrs

39%

> 10 yrs19%

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INFRASTRUCTURE @ GATI

17 Express Distribution Centers

2.5 million sft. Mechantronics

Warehousing space

Modernized Material Handling Equipments

Fleet of 4000+ vehicles

Fleet of 3 vessels 162 Reefer Vehicles 24x7x365 Centralized Customer Care Center

Gati Café Deliver

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BUSINESS ENVIRONMENT

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ECONOMY – GDP Growth

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

FY 2008 FY 2009 FY 2010 FY 2011 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12

India GDP Annual Growth (at factor cost: 2004-05)

• 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

• Industrial production in April was broadly flat over the previous month and last year and contributed to the weaker than expected GDP growth

Source: MOSPI

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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)

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GATI - Our Growth Sectors

General Manufacturing

20%

Consumer Goods26%

Auto Components

14%

Pharma14%

Apparel5%

Others21%

Charged Weight by VerticalFY2012 Industry Vertical

FY2012 vs

FY2011

General Manufacturing -11.5%

Consumer Goods 1.7%

Auto Components 16.3%

Pharma 26.4%

Apparel 8.7%

Others -1.5%

TOTAL 2.6%

YOY Volume growth by Vertical

Note: FY 2012F revenues based on annualized YTD FY 2012 revenue

• Broadly, GATI –KWE handles packages of all the major sectors in the economy

• GATI-KWE’s strength has been that our revenues are not overly dependant on any specific sector, which limits our exposure to any sector specific trends

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FINANCIAL HIGHLIGHTS

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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

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Business Restructuring

GATI Limited

Surface Express

GTS (Rail)

Air Express SCM

COAST TO COAST

KWE

30%

70%

International

E-Com

GATI KINTETSU EXPRESS PRIVATE LIMITED

100%100%

GATI LIMITEDGATI SHIP PRIVATE

LIMITED

Coast to CoastInternational

e-Com

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BUSINESS PERFORMANCE

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Express Distribution & Supply Chain (EDSC)

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

INR Mn

35

KAUSAR – Cold Chain

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

INR Mn

36

Gati Ship

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

INR Mn

37

Other Subsidiaries

Includes Fuel Stations, APAC (Foreign Subsidiarias),GIETL (Trading) & Zen Cargo (CHA)

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

INR Mn

38

Consolidated – Income Statement

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

Year end 30th June

*Includes Net Extra Ordinary Income of Rs. 750Milllion

INR Mn

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Consolidated – Income Statement

2012 2011 2010INCOME

Revenue from Operations 9956 9809 8,004

Sales 1846 2220 1,257

Other Income 1089 83 115

TOTAL 12,891 12,112 9,376Revenue 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 160Tax Expenses 252 97 65

Profit for the period 415 140 95

Year end 30th June INR Mn

*Includes Net Extra Ordinary Income of Rs. 750Milllion

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Divisional Performance – 2011-2012

EDSC73%

Kausar Cold Chain

3%

Shipping2%

Other subsidiaries

22%

Revenue Contribution

EDSC82%

Kausar Cold Chain5%

Shipping-11%

Other subsidiaries-2%

EBITDA Contribution

41

OUTLOOK

42

Trend Analysis

INR Mn

-

5,000

10,000

15,000

20,000

25,000

2008 2009 2010 2011 2012 2013E 2014E 2015E

Revenue

CAGR @ 17%

10%

8%

10%

8%

14%

10%

12%13%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2008 2009 2010 2011 2012 2013E 2014E 2015E

EBITDA

EBITDA Margin

43

Divisional Performance – 2014-2015

EDSC (73%)71%

Kausar Cold Chain (3%)5%

Shipping (2%)7%

Other subsidiaries (22%)17%

Revenue Contribution

() FY 2011-2012

EDSC (82%)80%

Kausar Cold Chain(5%)

7%

Shipping (-11%)10%

Other subsidiaries(-2%)

3%

EBITDA Contribution

44

CAPEX Plan

2013 2014 2015

50 60 63

200 150

220 250

390

467

IT Vehicles Infrastructure

Total Planned Expenditure : Rs. 1850 Mn over next Three Years Funding primarily through internal accruals/ disposal of surplus land

INR Mn

45

Debt Outlook

0

500

1000

1500

2000

2500

Gati GKE Gati GKE Gati GKE Gati GKE

2012 2013 2014 2015

199

2,181

149

1,931

99

1,681

49

1,1311249969

689409

224 236 247 255

BANK

FCCB

Public Deposits

46

THANK YOU

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