Dalmia Bharat Ltd. · NSE:DALBHARAT
Dalmia Bharat — Investor Presentation (August 2024)
68 slides from Dalmia Bharat's investor presentation, Aug 14, 2024
Slide 1: Exchange filing cover letter - Investor Presentation August 2024
File No: 1010/2 August 14, 2024 BSE Limited National Stock Exchange of India Limited P J Towers, Dalal Street, “Exchange Plaza”, Plot No. C-1, Block G Fort Mumbai - 400001 Bandra - Kurla Complex, Bandra (East), Scrip Code: 542216 Mumbai - 400 051 Symbol: DALBHARAT Subject: Investor Presentation -Aug
Slide 2: Investor Presentation August 2024
INVESTOR PRESENTATION August 2024
Slide 3: Disclaimer
Disclaimer Certain statements in this presentation describing the Company's objectives, projections, estimates and expectations may be 'forward looking statements' within the meaning of applicable laws and regulations. Although our expectations are based on reasonable assumptions, these forward-look
Slide 4: Table of Contents
PA G E SECTION NO. 01. Dalmia Bharat at a Glance 4 02. Industry Outlook 12 03. Company Overview 21 04. Shareholder Value and Capital Allocation 41 TA B L E O F CO N T E N T S 05. ESG 48 06. Awards 59 07. Appendix 62 3
Slide 5: Dalmia Bharat at a Glance
SECTION 01 DALMIA BHARAT AT A GLANCE 4
Slide 6: Dalmia Bharat Group Overview
Dalmia Bharat Group Overview Founded in 1939 by Late Shri Jaidayal Dalmia, Dalmia Bharat Group is one of the Fastest Growing and Most Profitable Groups in India ▪ Fourth-largest cement ▪ One of the fastest growing cane- ▪ India’s first Omni-channel manufacturing company in India based multi-product
Slide 7: Dalmia Bharat Limited - 4th Largest Cement Player
DALMIA BHARAT LIMITED - 4th Largest Cement Player in the Fastest Growing Economy in the World 6
Slide 8: Our Vision, Our Mission, Our Values
Biodiversity park at our Ariyalur plant Our Vision To unleash the potential of everyone we touch Our Mission To be in the top two in all our businesses on the strength of our people and the speed of our innovation Our Values ▪ Integrity ▪ Humility ▪ Trust & Respect ▪ Commitment People. Planet. Perfo
Slide 9: Dalmia Bharat by the Numbers
Dalmia Bharat by the Numbers Fundamentals Financials 45.6 MnT^ 28.8 MnT ₹14,691 Cr ₹ 5,105 Cement Capacity Sales Volume Net Sales NSR / Ton 22.6 MnT^ 398 MW^ ₹ 2,639 Cr ₹ 917 Clinker Capacity Captive Power Capacity EBITDA EBITDA / Ton 15 23 18.0% ₹34,011 Cr^ Plants States Served EBITDA Margin Market
Slide 10: Key Milestones Over The Past Decade
Key Milestones Over The Past Decade Expansion into Past Decade North East through Entered into Acquisition of Commenced production Cement capacity The company has Acquired Kalyanpur of Line 2 at BCW unit in Definitive agreement expansion at Kadapa Calcom and consistently made substantial Cement Limi
Slide 11: Geographic Expansion
Geographic Expansion FY14 Present 5 Plants 15 Plants 11.8 MnT 46.6 MnT 9% 28% 46.6 MnT 64% Our Markets Organic Inorganic Distressed Existing Plants 10
Slide 12: Growth Snapshot
Growth Snapshot 10 YEAR CAGR* 14% 16% 17% 20% Capacity Volume Revenue EBITDA 4x 4x 5x 6x Aggressive Yet Sustainable Growth Enabled Us to Emerge as the 4th Largest Cement Player In India *FY14-FY24 11
Slide 13: Industry Outlook
SECTION 02 INDUSTRY OUTLOOK 12
Slide 14: Demonstrating resilience in the face of geopolitical challenges
Demonstrating resilience in the face of geopolitical challenges India’s underlying economic fundamentals are robust Economic Growth projections S&P Global India Manufacturing PMI 65 2024e 2025e 6.8 6.5 60 58.3 4.2 4.2 3.2 3.2 55 1.7 1.8 50 45 World Output Advanced Emerging India Mar'22 Jun'22 Sep'22
Slide 15: Robust Cement Demand Growth
Robust Cement Demand Growth Cement Demand is expected to grow by ~8-9% to ~455-460 MnT in FY25 500 Industry Cement Demand (MnT) 450 400 350 300 250 200 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25e The demand trajectory remains favorable and is anticipated to be consistent in the short to medium ter
Slide 16: Demand Growth - a multiple of GDP growth
Demand Growth - a multiple of GDP growth After a slowdown in last decade, Cement Demand is reviving driven by a fresh Housing, Capex and Commodity Cycle FY14: Taper tantrum FY20: Credit Tightness Housing + Capex Cycle - Housing Cycle FY17: Demonetization FY21: COVID-19 pandemic - Capex Cycle FY18: G
Slide 17: Cement Demand Growth To Be Robust
Cement Demand Growth To Be Robust Robust potential for growth in cement demand due to the relatively low per capita cement consumption, bolstered by the housing and infra sectors Per Capita Cement Consumption/Kg Cement Demand Mix 500-550 11% Rural Housing 39% Urban Housing 280-290 24% Infrastructure
Slide 18: Key Demand Drivers
Key Demand Drivers ▪ Government has announced additional 2 Cr houses under the PMAY (R) over the next 5 years, taking the total number of such houses to 5 crore ▪ Allocation to PMAY (R) has increased by 70% from FY24RE to Rs 54,500 crore for FY25 ▪ Over the past 8 years, the government has successfu
Slide 19: Key Takeaway - Union Budget FY25
Key Takeaway - Union Budget FY25 Infrastructure allocation at 11.11 lakh crores - equivalent to 3.4% of GDP PMAY Urban 2.0 has a proposed investment of Rs 10 lakh crore and a credit-linked interest subsidy of Rs 2.2 lakh crore 3 Cr additional houses under Pradhan Mantri Awas Yojana (PMAY) in rural a
Slide 20: Recovery in Real Estate Market
Recovery in Real Estate Market The Residential sector has recorded a 9-year high sales launches in CY2023 Residential Unit Sales and Launches in Top 8 Cities in India 4,00,000 3,00,000 2,00,000 1,00,000 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 E Launches Sales ✓ Sales and launches have be
Slide 21: Capex Push of Government to Drive Demand
Capex Push of Government to Drive Demand Continuity of the incumbent government ensures stable policies and sustained investment in infrastructure Capex by Center (Rs Trillion) 12.0 6.0% 11.1 10.0 Capex (Rs Lac Cr) Capex as % of India GDP 9.5 5.0% 8.0 7.3 3.4% 4.0% 5.9 6.0 3.0% 2.1% 4.3 4.0 1.6% 3.4
Slide 22: Company Overview
SECTION 03 COMPANY OVERVIEW 21
Slide 23: Company Overview
Company Overview Integrated Model with State-of- Market Leader in Each of Our Pioneer in the Area of the-Art Production Facilities and Operating Regions Sustainability Supply Chain 01 03 05 02 04 06 Diverse Product Portfolio with Lowest Cost Producer with Proven Multi-tier Governance Structure Stron
Slide 24: Pioneer in the Area of Sustainability
01 Pioneer in the Area of Sustainability Dalmia has one of the lowest net carbon footprint in Global cement industry - 467 CO₂ emission- Kg/ton in Q1FY25 One of the lowest Clinker factor at 60% in Q1FY25 First cement group to commit to become carbon negative by 2040 One of the Largest producer of sl
Slide 25: Globally Recognized for its Focus on Sustainability
01 Globally Recognized for its Focus on Sustainability ▪ Member, G20 Resource Efficiency Circular Economy Industry Coalition (RECEIC) DALMIA BELIEF ▪ First global triple Joiner company for RE100, EV100 & EP100 Clean and Green is Profitable ▪ Founding member - LEADIT and First Movers Coalition (FMC)
Slide 26: Diverse Product Portfolio with Strong Brand Recognition
02Consumer Brands Diverse Product Portfolio with Strong Brand Recognition ▪ AA+ Category premium product ▪ Produced using superior ▪ Protects the construction ingredients to provide high ▪ Dalmia Supreme help building from harsh environmental for high strength concrete applications strength construc
Slide 27: Dalmia DSP positions itself in A+/A category across markets
02 Dalmia DSP positions itself in A+/A category across markets East (Orissa) South (Tamil Nadu) “A+” Dalmia DSP, “A+” Ultratech Super, Dalmia DSP, Ultratech Premium Ramco Super Crete ICL – CSK ₹25/bag “B” “A” ₹20/bag “A” Dalmia Ultratech Dalmia Ultratech ACC F2R , Concreto India Ramco ₹55/bag ₹40/ba
Slide 28: Consistent Improvement in Product Mix
02 Consistent Improvement in Product Mix ▪ Since its launch, DSP has been immensely successful in East and ▪ One of the Largest producer of Slag Cement in India North East Region ▪ Share of Blended Cement increased from 84% in FY23 to ▪ DSP contributes meaningfully higher profitability than other 87
Slide 29: Launched new RCF Branded DSP Bag
02 Launched new RCF Branded DSP Bag Introduced New RCF Branded DSP Bag from Chandrapur Cement Works, Maharashtra ▪ Flag-off the first lot of the new RCF Branded DSP bag from ▪ Engagement with masons and contractors through 300 RCF Chandrapur Cement Works; placed in over 250 stores within camps/meets
Slide 30: Integrated Model with State-of-the-Art Facilities
03 Integrated Model with State-of-the-Art Facilities Raw Material Power Plants Limestone Power Source Location ▪ Average Life of Mine: 20+ years ▪ One of the lowest power ▪ One of the largest cement producers across majority plants consumption per ton of cement in in East, North East and South Regio
Slide 31: Demonstrating Resilient Supply Chain
03 Demonstrating Resilient Supply Chain New Initiatives launched Supply Chain by Numbers Over 90% of the fleet is equipped with GPS, enabling optimized Tons CO2 Emission saved 108+ through alternate fuel routes, diversion detection, and improved fuel usage Implemented Green Channel for dealer trucks
Slide 32: Efficient Movement of Clinker
03 Efficient Movement of Clinker Lease based/GPWIS Rake Electric Vehicles on Pilot 31 General Purpose Wagon Investment Scheme
Slide 33: Focused on Usage of Smart Technology
03 Focused on Usage of Smart Technology Focused on automation and mobility and cloud solutions, strengthening supply chain management TMS Solution SAP Ariba Dalmia tied up with Blue Technology Stack Yonder to implement TMS solution which provides a comprehensive platform that helps 01 02 Provide bet
Slide 34: Lowest Total Cost Producer of Cement in India
04 Lowest Total Cost Producer of Cement in India Raw Material Cost/T Power & Fuel Cost/T Key drivers Rs/T include long Rs/T 994 1,641 877 934 term tie-ups 1,429 787 760 with suppliers, 1,306 725 648 716 702 692 1,157 1,231 1,083 focus on 979 897 887 801 blended cement along with investment in FY20 F
Slide 35: Proven Track Record of Financial Performance
04 Proven Track Record of Financial Performance Sales Volume (MnT) Sales Revenue 5Y CAGR: 9% Consistent 5Y CAGR: 9% 14,691 28.8 13,552 25.7 Capacity additions 20.7 22.2 19.3 and share of 11,286 9,674 10,110 premium products led volume and revenue growth FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 F
Slide 36: Proven Track Record of Financial Performance
04 Proven Track Record of Financial Performance Net Debt (Rs Cr) Net Debt/EBITDA Our resiliency has 3,118 enabled us to 1.48 Delever our Balance Sheet and 661 484 0.28 0.18 154 provided 0.06 FY20 FY21 FY22 FY23 FY24 Flexibility for FY20 FY21 FY22 FY23 FY24 future expansion -0.59 (1,421) Adjusted RoC
Slide 37: Market Leader in Highly Attractive East India Market
05 Market Leader in Highly Attractive East India Market Key demand drivers of the region Key Projects in Bihar and North East ▪ The government will prioritize on developing the eastern region ▪ Patna & Buxar Expressway (Rs 26,000 Cr) of India ensuring a more balanced and widespread growth ▪ Bhagalpu
Slide 38: Multi-Tier Governance Structure
06 Multi-Tier Governance Structure ▪ Audit Committee ▪ Risk Management Committee ▪ Stakeholders’ Relationship Committee ▪ Corporate Social Responsibility Committee ▪ Nomination and Remuneration Committee ▪ Operations Committee Board of Directors Executive ▪ Constituted a team of top leadership which
Slide 39: Overseen by a Reputed Board
06 Overseen by a Reputed Board ▪ 46+ years of experience in ▪ Served as CEO of Siam City ▪ Serves as Co-Chief Executive the cement industry and has Cement Public Company in Officer at IDFC Foundation; earlier served as President Bangkok From Jan’02 till previously held leadership of the Cement retir
Slide 40: Managed by a Diverse Leadership Team
06 Managed by a Diverse Leadership Team Puneet Dalmia Rajiv Bansal Dharmender Tuteja KC Birla Sameer Nagpal Ganesh Wamanrao Udaiy Khanna MD & CEO President and Chief Chief Financial Officer Head – Growth & Chief Operating Officer Jirkuntwar Head - Human Resources Transformation Officer Expansion Hea
Slide 41: Shareholder Value and Capital Allocation
SECTION 04 SHAREHOLDER VALUE AND CAPITAL ALLOCATION 40
Slide 42: Drivers of Value Creation
Drivers of Value Creation GROWTH PROFITABILITY RESPECT & CASH FLOW GENERATION HUMAN CAPITAL DIGITIZATION ACCELERATED FOCUS ON ESG 41
Slide 43: Strategic Imperatives
Strategic Imperatives ▪ PAN India Pure Play Cement Company ▪ Significant presence in every market wherein Dalmia operates ▪ Grow capacity at a CAGR of 14% - 15% over the next decade to reach 110-130 MnT by Strategic 2031 Vision ▪ Target of 75 MnT by FY2028 ▪ Maintain a strong balance sheet along wit
Slide 44: Disciplined and Value Focused Capital Allocation
Disciplined and Value Focused Capital Allocation Capital Allocation Framework Up to 10% of the Operating Cash Flow towards shareholders’ return which would include a mix of both dividend & share buy-backs Up to 10% of Operating Cash Flow towards an Innovation & Green Energy Fund which would be chann
Slide 45: Identified levers for sustainable EBITDA improvement
Identified levers for sustainable EBITDA improvement Focused initiatives on key operating levers to further improve EBITDA/T Increase in market share Improvement in trade with higher Capacity share through premium Utilization product launches Reducing power & fuel cost by Near Term Increase in Share
Slide 46: Capex Plan
CAPEX PLAN 45
Slide 47: Cement Capacity Expansion Plan
Cement Capacity Expansion Plan 2.4 49.5 +0.5 MnT Rohtas, BH +2.4 MnT 0.5 Lanka, AS 1.0 46.6 1.0 44.6 Capacity as Ariyalur, Kadapa, Current Rohtas, Lanka, Capacity Brownfield Greenfield on FY24 TN AP Capacity BH AS by FY25 46
Slide 48: Announced Clinker Capacity Expansion Plan
Announced Clinker Capacity Expansion Plan Figures in MnT South East North East West Total Q1FY25 10.1 7.7 2.7 2.1 22.6 FY25 10.4 8.3 2.7 2.1 23.5 FY26 10.4 8.3 6.3 2.1 27.1 47
Slide 49: ESG
SECTION 05 ESG 48
Slide 50: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Environmental, Social & Corporate Governance (ESG) has been an central pillar of our business strategy Environmental Social Governance Our specific net emissions, 467 kg CO2/ Corporate Social Responsibility activities Institutionalized good governance led t
Slide 51: Leading the Cement World in Carbon Emissions
Leading the Cement World in Carbon Emissions ^ 353^ 467 Dalmia Bharat Dalmia Bharat Net Eastern Operations 608 560 CO2Emissions Net CO2Emissions India Average** Global Average* * Source: GNR data published in 2021 representative of 22% cement production in the world. ** Source: GNR data published in
Slide 52: Carbon Negative Roadmap
Carbon Negative Roadmap Switch to 100% blended cement production Dalmia Determined Contribution (DDC) by 2026 Grey to Green Roadmap for Carbon Negative Transition RE 100 commitment to transition to 100% renewable power by 2030 EP 100 commitment to double energy productivity by 2030 EV 100 commitment
Slide 53: WHRS and Solar Power Update
WHRS and Solar Power Update Renewable Energy Power 11x 185 186 166 Solar WHRS Total Renewable Power - MW 113 114 100 63 32 32 66 72 72 17 17 10 8 8 22 31 9 9 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY25 In line with the commitment towards RE100 by 2030 & Carbon Negative by 2040, executed multiple Renewable
Slide 54: Leading Player to Supply Blended Cement in Key Infra Projects
Leading Player to Supply Blended Cement in Key Infra Projects A testament of the quality of our blended cement is its usage in construction of some of the breakthrough projects in the country Lower Subansiri Hydro-electric Project, Sela Tunnel, Arunachal Pradesh 2 Lane Bridge over river Brahmaputra,
Slide 55: CSR at Dalmia Bharat
CSR at Dalmia Bharat Activities at CSR Climate Action : Constructed a pond in Social Infrastructure : Held a general Livelihood: Facilitated over 30 micro Jirimgaon village, Lanka with a capacity of medical camp in Dalmiapuram in enterprises in Bokaro, Cuttack, 2700 KL, benefiting 135 community coor
Slide 56: Theory of Change Designed to Ensure CSR Initiatives
Theory of Change Designed to Ensure CSR Initiatives Help Achieve Our Vision & Mission Creating Opportunities Activities Expected Outcome Impact Creating economic Farm Schools for increase in income Social - Improved quality of life through opportunities that enable skilling pre and post access to ba
Slide 57: Our CSR Partners
Our CSR Partners jusuanr —_ Mago” ASee FOUNDATION ef, N-S-D-C =) SEHPBBL lopment 1 y y evelopment Corporation” —Z neva Soa Sothonre QIZ skip APSSDC AkzoNobel ¢, Solidaridad solidarida Bharat Limited . WEP Schneider Kaun Electric y oy SY WH =NDri wt p Werte ankcrour Gravity Micro lrigatio sl OcsRBoOx
Slide 58: Redefining Corporate Governance
Redefining Corporate Governance ▪ First cement company in ▪ Appointed one of the ▪ Segregated the family ▪ Use technology to track ▪ Implemented a India to formally Big4 accounting firms, office and the corporate and monitor different organization wide Risk announce a Capital EY, as its Internal off
Slide 59: Governing Polices at Dalmia
Governing Polices at Dalmia Code of Conduct for all members of Board of Code of Practices and Procedures for Fair Disclosure Directors and Senior Management of unpublished price sensitive information Related Party Transaction Policy Code of Conduct for prevention of Insider Trading Nomination and Re
Slide 60: Awards
SECTION 06 AWARDS 59
Slide 61: Sustainability Awards
Sustainability Awards CDP leadership Award (CDP Discloser 9th National Conclave on Environment, National Conference of Sustainability 2023, Climate) Energy& Climate Change 2024 2023-24 (FAME & Golden Bird) Environmental Stewardship Environment Excellence Award, Energy 1. Lifetime Achievement Award t
Slide 62: Supply Chain Awards
Supply Chain Awards 163rd Procurement, Project ISCM Supply chain rankings of the “2nd 2nd Procure Connect Confex & Awards Management, Corporate Real Estate, India Supply Chain Leaders Senate 2024 2024 Facility Management Awards 2024 Leadership Award for Professional Supply Chain Champion (Northern P
Slide 63: Appendix
SECTION 07 APPENDIX 62
Slide 64: Key Financials
Key Financials Particulars FY20 FY21 FY22 FY23# FY24# Cement Capacity – MnT 26.5 30.8 35.9 38.6 44.6 Sales Volume - MnT 19.3 20.7 22.2 25.7 28.8 Net Sales - Rs Cr 9,674 10,110 11,286 13,552 14,691 EBITDA - Rs Cr 2,106 2,760 2,426 2,328 2,639 EBITDA Margin% 21.8% 27.3% 21.5% 17.2% 18.0% EBITDA - Rs/M
Slide 65: Adjusted RoCE and RoE
Adjusted RoCE and RoE REPORTED ADJUSTED* (in Rs Cr) FY20# FY21# FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 EBITDA (including Other Income) 2,323 2,949 2,586 2,454 2,954 2,323 2,949 2,586 2,454 2,954 Less : - Depreciation as per books 1,528 1,266 1,235 1,305 1,498 1,528 1,266 1,235 1,305 1,498 Add: Amor
Slide 66: Movement in Cash & Cash Equivalents - FY24 (Rs Cr)
Movement in Cash & Cash Equivalents - FY24 (Rs Cr) Healthy trend of Cash Conversion with 100% ratio in FY24 887 600 2635 85 204 4166 2827 100 3,102 169 452 Opening Cash Cashflow Proceeds Debt Capex Dividend Interest Interest IEX Others Closing Cash & Cash from from Sale movement Payment Received mov
Slide 67: Strong Balance Sheet
Strong Balance Sheet (Rs Crores) 31.03.2020 31.03.2021 31.03.2022 31.03.2023 31.03.2024 Fixed Assets^ 14,990 14,905 15,336 16,745 18,153 Investments^ 118 740 1,305 1,389 590 Net Working Capital 71 (846) (652) (549) (591) Other Assets 531 454 670 925 1,139 Total Assets 15,711 15,254 16,660 18,510 19,
Slide 68: Thank You
CONTACT INFORMATION Thank You Corporate Office: 11th & 12th floor, Hansalaya Building, 15, Barakhamba Road, New Delhi – 110001 e: investorrelations@dalmiabharat.com w: www.dalmiabharat.com