Slide 1: Regulation 30 cover letter to stock exchanges
Secretarial Division ACC Limited Registered Office No. ACC/Sec./SE/21/051 Cement House 121, Maharshi Karve Road July 19, 2021 Mumbai - 400 020, India CIN: L26940MH1936PLC002515 National Stock Exchange BSE Limited of India Limited Corporate Relations Phone: +91 22 3302 4321 Fax: +91 22 6631 7458 Exch
Slide 2: Investor Presentation: Q2 2021
Investor Presentation : Q2 2021 July 2021 Stock code: BSE: 500410 | NSE: ACC | Reuters: ACC.NS | Bloomberg: ACC:IN
Slide 3: Safe Harbour Statement
Safe Harbour Statement ▪ This presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness,
Slide 4: Index
Index 1 ACC at a Glance 2 Economy & Sector Update 3 Strategic Priorities 4 Performance Review
Slide 5: ACC at a Glance
ACC at a Glance
Slide 6: Partner in India's Progress
Partner in India’s Progress A brand that inspires confidence among customers and other stakeholders ACC has emerged Consistently set new Legacy of active Focused on retail as one of the benchmarks with contribution to India’s (contributes ~80% of front-runners in our relationship -first progress spa
Slide 7: Sustainable Value Creation through Scale and Innovation
Sustainable Value Creation through Scale and Innovation Environment Operational Social and governance 17 ~6,000 58% # Cement plants Employees Clinker Factor 79 56,000 7% # Ready mix concrete plants Channel partners Thermal Substitution Rate ~77%* >2,00,000 50% Capacity utilisation Lives touched Inde
Slide 8: Delivering Results through Optimization
Delivering Results through Optimization Focus on Premiumization through special Parvat – Efficiency measures such as clinker Strong performance in Accounts Receivable and application cements like Gold Water Shield,F2R factor optimization, reduction in energy Inventory, Superfast; consumption, lead d
Slide 9: Economy & Sector Update
Economy & Sector Update
Slide 10: GDP Growth likely to see a Sharp Rebound
GDP Growth likely to see a Sharp Rebound ▪ GDP forecast at 9.5% for fiscal 2022 (April’21 to Mar’22) ▪ Largely on account of low base ▪ Budgetary focus on capex to support growth in short term and also create platform for medium term growth ▪ India’s GDP growth is expected to see base effect driven
Slide 11: Sectoral Outlook
Sectoral Outlook Housing Infrastructure Industrial /Commercial ▪ Second wave of pandemic impacted cement ▪ Continued Govt. focus on infrastructure Industrial construction demand to witness revival demand through increased budgetary allocation supported by: ▪ 19.5mn rural houses are targeted for towa
Slide 12: Strategic Priorities
UPPORTED 8 suPrORTED BY ACC Ost) [+ ey COVID-19 17 1) Pee VACCINATION Raa VACCINATION CEMENT WORK: suPPonreD By BARGARK CENENT WORKS CEMENT WORKS ‘SUPPORTED BY es ND-19 COVID-19 7? CEMENT Woes CoviD.19 COvID-% VACCINATION ACC y Strategic Priorities ” eee
Slide 13: Accelerating our Journey Forward
Accelerating our Journey Forward Ametha Integrated Project WHRS Projects Cost Efficiency Projects ▪ Capacity expansion project at Ametha in ▪ Jamul (10 MW) ▪ Wet Flyash dryer installation at Kymore, Madhya Pradesh and associated grinding ▪ Kymore (14MW) Gagal & Wadi on fast track units have commence
Slide 14: Innovation Engine Chugs Ahead
Innovation Engine Chugs Ahead Green Cement ECOPact Admixture and Other Products & Solutions ▪ Various environment friendly products ▪ ECOPact – Low Carbon Positive Impact ▪ Cost effective Concrete Admixture under development, targeting: developed in RMX o Rolled out Pan India; Excellent Volume o Wat
Slide 15: Leveraging Digitization to bring Efficiencies
Leveraging Digitization to bring Efficiencies Manufacturing - Plants of Tomorrow Logistics & Sourcing Commercial ▪ TIS (Technical Information System) & ▪ TAC (Transport Analytic Center) : ▪ Adoption of digital assets PACT (Performance & Collaboration Tool) Dashboard on secondary lead analysis & o De
Slide 16: SD 2030 Goals are our Core Priority
SD 2030 Goals are our Core Priority Our sustainability strategy is led by our Sustainable Development (SD) 2030 Plan and aligned with Holcim Climate Circular Environment Community and energy economy Net specific CO2 emissions : Target 2030 Use 30 million tonnes Water Positive Index – 5 3.5 million –
Slide 17: Community Remains Top Priority
Community Remains Top Priority WASH (Water, Sanitation, Sustainable Livelihood Quality Education Malnutrition Mitigation Health & Hygiene) ▪ 38,194 new beneficiaries added ▪ 7,532 children supported for ▪ 8,758 people provided drinking ▪ 11,683 children below 5 years, ▪ 9 watershed structures create
Slide 18: Stepping Up Our Pandemic Response
Stepping Up Our Pandemic Response Mask Distribution & Emergency Ration Kits Awareness Community health infrastructure support ▪ 1,57,393 masks produced and 1,43,497 ▪ 11,907 people reached for tele-counselling (mental ▪ 432 jumbo oxygen cylinder and 261 oxygen distributed health awareness) concentra
Slide 19: Performance Review
Performance Review
Slide 20: Performance Highlights – Q2 2021 (Consolidated)
Performance Highlights – Q2 2021 (Consolidated) Strong performance delivery in a challenging quarter Cement Sales Volume RMX Sales Volume Net Sales 6.84 mt 0.58 Mio m3 INR 3,810 crs (44% YoY) (293% YoY) (51% YoY) EBITDA Op. EBIT Margin Profit After Tax INR 869 crs 19% INR 569 crs (65% YoY) (4.6 pp Y
Slide 21: Performance Highlights – H1 2021 (Consolidated)
Performance Highlights – H1 2021 (Consolidated) Cost efficiencies under 'Parvat' driving margin expansion Cement Sales Volume RMX Sales Volume Net Sales 14.81 mt 1.41 Mio m3 INR 8,024 crs (31% YoY) (31% YoY) (35% YoY) EBITDA Op. EBIT Margin Profit After Tax INR 1,730 crs 17.9% INR 1,132 crs (56% YoY
Slide 22: Financial Results – Consolidated
Financial Results – Consolidated Particulars Quarter Ended June 2021 Half-Year Ended June 2021 (all amount in ₹ Crore) Q2 2020 Q2 2021 Change (%) H1 2020 H1 2021 Change (%) Net Sales 2,520 3,810 51% 5,953 8,024 35% EBITDA 525 869 65% 1,112 1,730 56% EBITDA Margin (%) 20.8 22.8 2.0pp 18.7 21.6 2.9pp
Slide 23: Income Statement – Cement Business
Income Statement – Cement Business Particulars Quarter Ended June 2021 Half-Year Ended June 2021 (Rs. / Ton) Q2 2020 Q2 2021 Change per ton H1 2020 H2 2021 Change per ton Sales Revenue 5,050 5,153 103 4,777 5,005 228 Other Operating Income 164 106 -58 127 101 -26 Total Operating Income 5,214 5,259 4
Slide 24: Performance Analysis - Sales Volume
Performance Analysis - Sales Volume Strong growth despite 2nd wave of Covid Cement Volume (Q2) Cement Volume (H1) (Million tonnes) (Million tonnes) 30.8% 43.7% Performance Review acclimited.com | 23
Slide 25: Performance Analysis – Net Selling Price
Performance Analysis – Net Selling Price Improvement in realization driven by premium product and brand positioning Net Selling Price (Q2) Net Selling Price (H1) (`Rs/ton) (Rs`/ton) 2.0% 4.8% Performance Review acclimited.com | 24
Slide 26: Performance Analysis – Cost of Materials Consumed
Performance Analysis – Cost of Materials Consumed Impacted by reducing clinker factor and rising input costs, mitigated through project 'Parvat' Raw Material Cost (Q2) Raw Material Cost (H1) (Rs/ton) (Rs/ton) 36.8% 19.3% Performance Review acclimited.com | 25
Slide 27: Performance Analysis – Power & Fuel Cost
Performance Analysis – Power & Fuel Cost Impact of higher fuel prices, various efficiency projects underway to drive cost down Power & Fuel Cost (Q2) Power & Fuel Cost (H1) (Rs/ton) (Rs/ton) 27.0% 6.5% Performance Review acclimited.com | 26
Slide 28: Performance Analysis – Freight & Forwarding Cost
Performance Analysis – Freight & Forwarding Cost Projects like geo mix and network optimization underway to mitigate fuel cost headwinds Freight & Forwarding Cost (Q2) Freight & Forwarding Cost (H1) (Rs/ton) (Rs/ton) 4.8% 0.4% Performance Review acclimited.com | 27
Slide 29: Performance Analysis – Employee Cost
Performance Analysis – Employee Cost Better absorption driven by higher volumes Employee Cost (Q2) Employee Cost (H1) (Rs//ton) (Rs/ton) -16.0% -15.5% Performance Review acclimited.com | 28
Slide 30: Performance Analysis – Other Expenses
Performance Analysis – Other Expenses Increase driven by higher cost of maintenance in plants Other Expenses (Q2) Other Expenses (H1) (Rs/ton) (Rs/ton) 18.4% 3.3% Performance Review acclimited.com | 29
Slide 31: Registered Office
Registered Office Cement House, 121, Maharshi Karve Road, Mumbai – 400 020 acclimited.com ACCInd acc-limited ACCCementOfficial