Slide 1: Ambuja Cement
Ambuja Cement 17th February, 2022 BSE Limited, National Stock Exchange of India Ltd., Phiroz Jeejeebhoy Towers, Plot No.C/1 'G' Block Dalal Street, Mumbai - 400 023 Sand ra - Kurla Complex corp.relations@bseindia.com Band ra East, Mumbai 400 051 cmlist@nse.co.in Deutsche Bank Societe de la Bourse de
Slide 2: Investor Presentation Q4CY21 | CY2021
Revolutionary bubble barrier technology that removes plastic and revives the Yamuna. To know more, visit www.changethestory.co .in . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .1111?1~- Ambuja INVESTOR PRESENTATION Q4CY21 | CY2021 Cement Stock code-BSE:500425 | NSE:AM
Slide 3: Safe-Harbour Statement
Safe-Harbour Statement This presentation may contain certain forward-looking statements relating to Ambuja Cements Ltd. (“Ambuja” or “Company”) and its future business development and economic performance. These statements include descriptions regarding the intent, belief or current expectations of
Slide 4: Index
Index Company Overview 04 Strategic Priorities 13 Economy and Sector Update 09 Performance Review 39 Ambuja Cement Limited Investor presentation | CY 2021 3
Slide 5: Company Overview
= COMPANY OVERVIEW
Slide 6: Ambuja Cement at a Glance
Ambuja Cement at a Glance Vision To be the most sustainable and 31.45 MTPA 15.2% >89% competitive company in our industry Cement Capacity Share of premium Share of products* blended cement 63% 8x 5.1% Clinker Factor Water positive Thermal Mission Substitution rate To create value for all • Delighted
Slide 7: Strong Pan-India Presence with Strategically Located Plants
Strong Pan-India Presence with Strategically Located Plants Region-wise share of revenue Integrated cement plants (%) 1. Ambujanagar, Gujarat 2. Darlaghat, Himachal Pradesh 3. Maratha Cement Works, Maharashtra 20 21 Darlaghat 4. Rabriyawas, Rajasthan Ropar Nalagarh 5. Bhatapara, Chhattisgarh Bathind
Slide 8: Attractively Positioned for Capturing Opportunities
Attractively Positioned for Capturing Opportunities Well-defined growth Widespread presence Strong Brand Growing plans with proven to capture the growing positioning in the premiumisation execution capabilities demand market ICAN - Cost efficiency Sustainability leadership Superior stakeholder Stron
Slide 9: Awards and Recognition
Awards and Recognition Global Top 5 Global Bronze CII 3R Award #1 in India in Dow Jones In Sustainability Yearbook 2022 based For 'Excellence in Managing Sustainability Index (DJSI) in the on S&P Global ESG score for the Municipal Solid Waste’ to construction materials category second consecutive ye
Slide 10: Economy and Sector Update
~ Ss __ -— _ ECONOMY AND - SECTOR UPDATE
Slide 11: Positive GDP Outlook
Positive GDP Outlook GDP growth estimated at 9.2% for Fiscal deficit at 6.9% of GDP in fiscal 2022 fiscal 2022; 6.4% target for next GDP projection (% y-o-y) year and gradual reduction to 9.2 ▪ Fiscal 2023 forecasts: Fitch 7.6%; 7.8 S&P India 7.8%; Government of 4.5% by fiscal 2026 6 6.5 India Econo
Slide 12: Key Trends Accelerating Sectoral Growth
Key Trends Accelerating Sectoral Growth 150 crore Expected 60 crore India’s 71% Increase in home Increased demand for better population of India by 2030 urban population by 2030 sales in CY2021 against living standards and more from 137 crore now from 37.7 crore in 2011 CY2020 (in top 7 cities) effi
Slide 13: Boost to the Infrastructure Sector in Budget 2022
Boost to the Infrastructure Sector in Budget 2022 Housing Infrastructure Industrial/Commercial ▪ 8 million houses budgeted for completion ▪ Increase of 11% in budgetary support for ▪ Demand for warehousing space to under PMAY scheme (Urban and Rural) core infrastructure increase sharply on the back
Slide 14: Strategic Priorities
STRATEGIC PRIORITIES
Slide 15: Strategic Priorities Driving Sustainable Growth
Strategic Priorities Driving Sustainable Growth Accelerating Expanding SOLUTIONS Delivering SUPERIOR Leading in GROWTH AND PRODUCTS PERFORMANCE SUSTAINABILITY 14
Slide 16: Accelerating Growth
ACCELERATING GROWTH
Slide 17: Stepping Ahead on Growth Ambition
Stepping Ahead on Growth Ambition The Board has approved in principle an investment of ₹ 3,500 crore for : NORTH CENTER ▪ 7.0 MTPA potential North East cement grinding expansion across our Bihar existing grinding units at WEST Jharkhand Sankrail and Farakka EAST Bengal and greenfield grinding unit a
Slide 18: Strengthening Capacities
Strengthening Capacities Marwar, Rajasthan ▪ Commenced commercial production at Marwar cement plant in Naguar district of Rajasthan in September 2021 ▪ Clinker capacity expansion of 3 MTPA with a potential to increase sales by 5 MTPA ▪ The Plant has deployed state-of-the-art technology and equipment
Slide 19: Engaging with Customers Across Mediums
Engaging with Customers Across Mediums ▪ Ten second “Giant” TV commercial was launched in Dec 2021 ▪ TVC on-air on leading national & regional news channels (Regions - Rajasthan, Gujarat, Maharashtra & Punjab) ▪ Brand and to strengthen positioning- with a mother-brand TVC ▪ Key channels : Aaj Tak, “
Slide 20: Engaging with Customers Across Mediums
Engaging with Customers Across Mediums Ambuja Abhimaan: Loyalty program to maintain long-term relationship ▪ Partnered with BCCI as their Official Sponsor with a ▪ Engagement with our stakeholders through films strategy to deepen our engagement with cricket and our on festivals/events target audienc
Slide 21: Expanding Solutions and Products
EXPANDING SOLUTIONS AND PRODUCTS
Slide 22: Product Portfolio
Product Portfolio Premium products Base products ▪ High-strength and high- performance Portland Pozzolana Cement (PPC), Ordinary Portland Cement (OPC) and Blended cement across grades ▪ Focus on growth of premium products ▪ Services addressing three main customer segments – individual home builders,
Slide 23: Solutions Range Complementing our Core Cement Range
Solutions Range Complementing our Core Cement Range One-stop solution for construction needs ▪ Solutions and Products portfolio (temperature resistant concrete blocks, micro fine mineral additives and maturity sensors), is in nascent stage and aims to complement our strength in core cement business
Slide 24: Capturing Share of Mind with Technology Solutions
Capturing Share of Mind with Technology Solutions Priorities Tools ▪ Demand generation of Ambuja products & solutions ▪ Maximising trade volumes and retail penetration Ambuja Certified Technology My World ▪ Developing and maximising premium products Capturing mind space of Digital ecosystem connecti
Slide 25: Delivering Superior Performance
DELIVERING SUPERIOR PERFORMANCE
Slide 26: Enhancing Efficiency
Enhancing Efficiency Efficiency programs across the value chain to drive superior performance: • Driving superior commercial process by using digital tools • Reduction in electrical and thermal energy consumption by adopting Plants of Tomorrow framework and Digital Tools • Improving clinker factor a
Slide 27: Scaling Up Innovation and Digitalisation
Scaling Up Innovation and Digitalisation Plants of Sales and Logistics Tomorrow Marketing ▪ Data & Analytics Infrastructure ▪ Dedicated apps for sales force, ▪ TAC enhancement deployed (TIS, PACT) technical teams, dealers and ▪ Fleet Management ▪ Advanced Data Analytics contractors ▪ Blue Yonder ▪ P
Slide 28: Empowered People
Empowered People Talent and succession Diversity and inclusion ▪ Creating multiplier effect by ▪ Building a diverse and leveraging talent pool inclusive workforce, free of between both operating discrimination companies (ACC/Ambuja) Learning for growth Performance culture ▪ A continuous learning ▪ H
Slide 29: Leading in Sustainability
LEADING IN SUSTAINABILITY
Slide 30: Global Sustainability Trends
Global Sustainability Trends Customer awareness and activism Decarbonisation will rise across pushing the environment, social industry, transport and buildings and governance (ESG) agenda segments, supported by innovative technologies Digital tools will shape the Design for environment and supply ev
Slide 31: Science Based Targets Aligned with Net Zero Emission Ambition
Science Based Targets Aligned with Net Zero Emission Ambition Science Based Targets 20% Scope 1 GHG emission reduction per ton of cementitious materials . ▪ Committed to reducing Scope 1 and 2 GHG emissions by 21% per ton of cementitious materials by 43% Signed the Business Ambition for 2030 from a
Slide 32: Sustainability Targets and Achievements
Sustainability Targets and Achievements Sustainable Development Plan 2030 Climate and Circular Water and People and Energy Economy Nature Communities WATER Saved CO2 VALUE Lead metrics WASTE (Fresh water Reduced Shared Re-used consumption: (kg CO2/ton of (Million (Million tons) Litre/t cementitious
Slide 33: Sustainability Initiatives
Sustainability Initiatives Optimising Resource Climate and Energy Circular Economy Water Utilisation ▪ Increasing clean and green ▪ Introduce complex waste and ▪ Higher use of recycled water ▪ Focus on reducing clinker energy Low Flash Point waste and rainwater harvesting factor ▪ Driving performanc
Slide 34: Partnering For a Cleaner India
Partnering For a Cleaner India Geocycle Bubble Cleaning up airports Leave Behind no Waste Community clean up Barrier and ports Initiative #LBnW ▪ Direct sourcing of biomass ▪ Successful demonstration at ▪ Dry waste collection and ▪ Ambuja and ACC partnership from farmers at Rabriyawas Yamuna river (
Slide 35: Water and Biodiversity Conservation
Water and Biodiversity Conservation ▪ Biodiversity Assessment, through Biodiversity Indicator and Reporting System (BIRS) tool, across quarries ▪ Implementing Biodiversity Management Plans (BMP) or Wildlife Conservation Plan ▪ Green belt development in and around plants and mines ▪ Aim to further st
Slide 36: Community Outreach through Ambuja Cement Foundation
Community Outreach through Ambuja Cement Foundation Water harvesting post monsoon in Industry-academia interaction at AU Skill Oxygen Plant inaugurated in Gir Kitchen gardening success in Ropar a new water structure in Vizag Academy for prospect placement for SEDI Gadhada Dist. Gir Somnath students
Slide 37: Covid-19 Update
Covid-19 Update COVID-19 and Vaccination awareness wall paintings in villages ACF Dadri received commendation letter for effort in awareness COVID-19 medical kits provided to CoviSAINIKs to march towards during vaccination drive ending the pandemic ▪ 6,347 CoviSAINIK’s trained; 2,576 are currently ▪
Slide 38: Maintaining Highest Standards
Maintaining Highest Standards Governance framework Core principles of governance 5 Board of Directors ▪ Corporate Governance is an integral part Independent Directors ▪ Board members of the way Ambuja has been doing business since inception. Good Corporate Governance at Ambuja Executive management C
Slide 39: Board of Directors
Board of Directors NS Sekhsaria Jan Jenisch Nasser Munjee Rajendra P Chitale Shailesh Haribhakti Chairman Vice Chairman Independent Director Independent Director Independent Director Dr. Omkar Goswami Shikha Sharma Christof Hassig Martin Kriegner Then Hwee Tan Independent Director Independent Direct
Slide 40: Performance Review
—— _ PERFORMANCE oa REVIEW Fezee-
Slide 41: Performance Highlights – CY 2021 (Standalone)
Performance Highlights – CY 2021 (Standalone) 27.02 mn tons INR 13,794 cr INR 3,207 cr Sales Volume (CLC) Net Sales Op EBITDA (19% YoY) (23% YoY) (21% YoY) INR 2,656 cr INR 2,785 cr INR 2,081 cr Op EBIT PBT Profit After Tax* (25% YoY) (15% YoY) (16% YoY) INR 2,132 cr Profit After Tax* (19% YoY) Cr -
Slide 42: Performance Highlights – Q4 2021 (Standalone)
Performance Highlights – Q4 2021 (Standalone) 7.16 mn tons INR 3,679 cr INR 568 cr Sales Volume (CLC) Net Sales Op EBITDA (2% YoY) (6% YoY) (-26% YoY) INR 398 cr INR 340 cr INR 252 cr Op EBIT PBT Profit After Tax* (-38% YoY) (-48% YoY) (-49% YoY) INR 303 cr Profit After Tax** (-39% YoY) Cr – Crore C
Slide 43: Financial Results – Standalone
Financial Results – Standalone Quarter Ended December Year ended (All amounts in ₹ Crore) 2020 2021 Change % 2020 2021 Change % Net Sales 3,468 3,679 6.1% 11,175 13,794 23.4% EBITDA 768 568 -26.0% 2,647 3,207 21.2% EBITDA (%) 22.1% 15.4% -6.7 pp 23.7% 23.3% -0.4 pp Operating EBIT 642 398 -38.0% 2,12
Slide 44: Performance Analysis
Performance Analysis Sales Volume & Realisation Sales volume – Cement + Clinker Realisation (₹/ton) (mn tons) 5,135 5,105 27.0 4,926 4,930 22.7 7.0 7.2 Q4CY20 Q4CY21 CY20 CY21 Q4CY20 Q4CY21 CY20 CY21 ▪ Highest ever cement sales volume in CY 2021, growth of 17% over 2020 ▪ Improvement in realization
Slide 45: Performance Analysis
Performance Analysis EBITDA EBITDA EBITDA (₹/crore) (₹/ton) 1,168 1,187 3,207 1,091 2,647 768 793 568 Q4CY20 Q4CY21 CY20 CY21 Q4CY20 Q4CY21 CY20 CY21 ▪ EBITDA growth of 21% for the full year supported by strong performance in ▪ EBITDA/ ton for CY 2021 grew supported by cost mitigation through effici
Slide 46: Performance Analysis
Performance Analysis Cost Elements Power and Fuel Cost Freight and Forwarding Cost Raw Material Cost (₹/ton) (₹/ton) (₹/ton) 1,572 1,260 1,234 1,224 420 1,266 1,178 408 386 996 994 378 Q4CY20 Q4CY21 CY20 CY21 Q4CY20 Q4CY21 CY20 CY21 Q4CY20 Q4CY21 CY20 CY21 ▪ Power & Fuel cost rose sharply during 202
Slide 47: Performance Analysis
Performance Analysis Cost Elements Other Expenses Total Cost (₹/ton) (₹/ton) 4,421 905 811 3,981 3,902 3,849 778 772 Q4CY20 Q4CY21 CY20 CY21 Q4CY20 Q4CY21 CY20 CY21 ▪ Other expenses impacted mainly on account of brand & promotion expenses, ▪ Total operating cost per ton increased by 3% during the ye
Slide 48: Financial Results – Consolidated
Financial Results – Consolidated Quarter Ended December Year ended (All amounts in ₹ 2020 2021 Change % 2020 2021 Change % Crore) Net Sales 7,350 7,503 2.1% 24,094 28,548 18.5% EBITDA 1,472 1,128 -23.4% 5,135 6,210 20.9% EBITDA (%) 20.0% 15.0% -5 pp 21.3% 21.8% 0.4 pp Operating EBIT 1,188 798 -32.8%
Slide 49: Awards Financial and Sustainability Reporting
Awards Financial and Sustainability Reporting Plaque Awards for Excellence in Financial Reporting for Plaque Award for "Special Recognition" in Category II - the year 2020-21 in Category VII (A) – Manufacturing and Climate Change - “ICAI International Sustainability Trading Sector (turnover equal to
Slide 50: Thank you
Thank you REGISTERED OFFICE CORPORATE OFFICE PO Ambujanagar Elegant Business Park Taluka Kodinar MIDC Cross Road B Gir Somnath district Off Andheri -Kurla Road Gujarat – 362 715 Andheri (E) Mumbai – 400 059