Ambuja Cements Limited · NSE:AMBUJACEM
Ambuja Cements — Q4 FY2023 Earnings Presentation
52 slides from Ambuja Cements's earnings presentation, May 2, 2023
Slide 1: Investor Presentation filing cover letter to stock exchanges
No. ACL/Sec/SE/02nd May 2023 Bombay Stock Exchange Limited National Stock Exchange of India Ltd., Phiroz Jeejeebhoy Towers, Plot No.C/1 'G' Block Bandra – Kurla Dalal Street, Mumbai – 400 023 Complex Bandra East, Mumbai 400 051. Scrip Code: 500425 Scrip Code: AMBUJACEM Luxembourg Stock Exchange, S A
Slide 2: Operational & Financial Highlights
Operational & Financial Highlights For the Quarter Ended March 31, 2023
Slide 3: Content
Content 01 Adani Group Profile 3-6 02 Adani Cement - Overview 7-10 03 Financial, ESG and Governance Overview 11-16 04 Performance Highlights 17-24 05 Way forward & Growth Updates 25-34 06 ESG Updates 35-48 07 Accolades & Awards 49-51 2
Slide 4: Adani Group Profile
Adani Group Profile 01 3
Slide 5: Adani: A World Class Infrastructure & Utility Portfolio
Adani: A World Class Infrastructure & Utility Portfolio Flagship Infrastructure & Utility Core Portfolio Primary Industry Emerging B2C Materials, Metal & Incubator Energy & Utility Transport & Logistics Direct to consumer Mining (69.2%) (57.2%) (71.7%) (61.0%) (100%) (63.2%) AGEL ATL APSEZ AEL NQXT1
Slide 6: Adani Portfolio: Decades long track record of industry best growth
Adani Portfolio: Decades long track record of industry best growth with national footprint Secular growth with world leading efficiency National footprint with deep coverage Growth 3x Growth 5x Core Portfolio EBITDA 70% 1,2 EBITDA 92% 1,4 Utility 92%# Transport 85%# Consumers ~400 mn Served AEL Grow
Slide 7: Adani Portfolio: Repeatable, robust & proven transformative model of investment
Adani Portfolio: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt Activity • Site acquisition • Engineering & design • Life cycle O&M • Redesigning capital structure • Analysis
Slide 8: Adani Cement (Ambuja + ACC) - Overview
Adani Cement (Ambuja + ACC) - Overview 02 7
Slide 9: Adani Cement: Builders of Progress in India
Adani Cement: Builders of Progress in India Well poised for Growth Cost Leadership Market Leadership Achieve lowest cost to serve by • Pan India presence with iconic Capacity to double from the current leveraging Group’s vast experience brands Development 67.5 MTPA to 140 MTPA and unmatched adjacenc
Slide 10: Adani Cement: Presence in 28 states and 550+ districts
Adani Cement: Presence in 28 states and 550+ districts (~70%) * 67.5 MTPA 10 Cement Capacity Captive Ships 1,11,000 5 Channel partners across India Bulk Cement Terminals 14 92% Integrated units Share of blended cement Integrated Unit 16 8.8% ● Grinding Unit Grinding units Thermal Substitution rate
Slide 11: Adani Cement: Iconic brands that shaped the industry
Adani Cement: Iconic brands that shaped the industry High contribution All India Presence - Iconic brands Price Leadership coming from IHB 2022 A Band ( >Rs 340+ /bag) ACC + Ambuja – 80% Industry – 65% % of Sales Heritage India‘s 1st Cement Company Inter-generational legacy B Band (Rs 320-340 /bag)
Slide 12: Financial Overview
Financial Overview For the Quarter Ended March 31, 2023 03 11
Slide 13: Financial results (for the Qtr.)
Financial results (for the Qtr.) Ambuja Ambuja ACC Consolidated Standalone Standalone KPIs UoM Mar 23 Dec 22 Mar 23 Dec 22 Mar 23 Dec 22 Revenue from Operation Rs. Cr 7,966 7,907 4,256 4,129 4,791 4,537 EBITDA Rs. Cr 1,523 1,138 962 715 588 419 EBITDA (%) % 19.1% 14.4% 22.6% 17.3% 12.3% 9.2% Profit
Slide 14: ESG Overview
prbuie ACL ESG Overview adani ss, Cement
Slide 15: ESG performance update
ESG performance update KPIs Remarks Target 2030 Actual Target 2030 Actual - Improvement in TSR by 1.1 % YoY Climate and energy - Accelerating Green products & Solutions (Net specific CO2 453 513 400 466 - WHRS power amplified to reduce carbon emissions) Kg/t footprint - Higher proportion of Blended
Slide 16: Governance Overview
prbuie ACL Governance Overview adani. Cement
Slide 17: Board & Committee Structure
Board & Committee Structure Statutory Committees Board of Directors Governance Committees Audit CSR Risk Mgt. Public Committee Committee Committee Consumer 2 3 Committee 1 Stakeholder Nomination & Corporate 1 Info. Tech & Relationship Remuneration Responsibility Data Committee Committee Committee Se
Slide 18: Performance Highlights
Performance Highlights For the Quarter Ended March 31, 2023 04 17
Slide 19: Ambuja Cement (Consolidated): Performance highlights (for the qtr.)
Ambuja Cement (Consolidated): Performance highlights (for the qtr.) Sales volume – Clinker & Cement (MioT) EBITDA – (Rs. Crore) Revenue – (Rs. Crore) EBITDA – (Rs./ton) 14.4 1,515 1,523 1,055 1,079 7,900 7,907 7,966 14.1 1,138 829 13.7 Mar 2022 Dec 2022 Mar 2023 Mar 2022 Dec 2022 Mar 2023 Mar 2022 D
Slide 20: Ambuja Cement (Consolidated): Performance highlights (for the qtr.)
Ambuja Cement (Consolidated): Performance highlights (for the qtr.) Raw Material Cost – (Rs./ton) Power & Fuel Cost – (Rs./ton) Freight and Forwarding Cost – (Rs./ton) Other Expenses – (Rs./ton) 1,705 1,390 1,443 1,335 1,339 1,404 783 763 702 667 732 629 Mar 2022 Dec 2022 Mar 2023 Mar 2022 Dec 2022
Slide 21: Ambuja Cement (Standalone): Performance highlights (for the qtr.)
Ambuja Cement (Standalone): Performance highlights (for the qtr.) Sales volume – Clinker & Cement (MioT) EBITDA – (Rs. Crore) Revenue – (Rs. Crore) EBITDA – (Rs./ton) 1,192 1,101 4,129 4,256 3,927 927 7.7 8.1 7.5 962 825 715 Mar 2022 Dec 2022 Mar 2023 Mar 2022 Dec 2022 Mar 2023 Mar 2022 Dec 2022 Mar
Slide 22: Ambuja Cement (Standalone): Performance highlights (for the qtr.)
Ambuja Cement (Standalone): Performance highlights (for the qtr.) Raw Material Cost – (Rs./ton) Power & Fuel Cost – (Rs./ton) Freight and Forwarding Cost – (Rs./ton) Other Expenses – (Rs./ton) 1,570 1,376 1,159 1,155 1,281 1,084 737 676 574 415 490 445 Mar 2022 Dec 2022 Mar 2023 Mar 2022 Dec 2022 Ma
Slide 23: ACC: Performance highlights (for the qtr.)
ACC: Performance highlights (for the qtr.) Sales volume – Clinker & Cement (MioT) EBITDA – (Rs. Crore) Revenue – (Rs. Crore) EBITDA – (Rs./ton) 4,791 4,427 4,537 887 8.5 7.8 7.7 694 541 693 588 419 Mar 2022 Dec 2022 Mar 2023 Mar 2022 Dec 2022 Mar 2023 Mar 2022 Dec 2022 Mar 2023 Mar 2022 Dec 2022 Mar
Slide 24: ACC: Performance highlights (for the qtr.)
ACC: Performance highlights (for the qtr.) Raw Material Cost – (Rs./ton) Power & Fuel Cost – (Rs./ton) Freight and Forwarding Cost – (Rs./ton) Other Expenses – (Rs./ton) 1,460 1,341 1,294 1,332 1,217 780 871 861 1,113 691 662 786 Mar 2022 Dec 2022 Mar 2023 Mar 2022 Dec 2022 Mar 2023 Mar 2022 Dec 202
Slide 25: Ambuja Cement (consolidated): Cash & Cash Equivalents position
Ambuja Cement (consolidated): Cash & Cash Equivalents position Cash & Cash Equivalent for the last five quarters Synopsis of the changes in the Cash & Cash Equivalent Cash Balance Rs. Cr Remarks Cash Balance Rs. Cr December 21 Year end 11,358 Opening balance as on 1st Jan 2022 11,358 Under June 22 Q
Slide 26: Way Forward & Growth Strategy
Way Forward & Growth Strategy 05 25
Slide 27: Adani Cement: Synergies with Adani Group
Adani Cement: Synergies with Adani Group Fly Ash Utilization of fly ash Coal generated from Use AEL / ANR power plants expertise in procuring operated by Adani coal and mining Power (APL) operations People Talent movement Power & Renewables within Leverage APL’s the group across expertise to improve
Slide 28: Adani Cement: Sales & Marketing strategy
Adani Cement: Sales & Marketing strategy • Focus on nine high growth states for • Improve brand cement - Rajasthan, awareness through Punjab, HP, UP, J&K, differentiated regional Bihar, Jharkhand, positioning and, Maharashtra and elevating website and Karnataka social media communication • Ramp up d
Slide 29: Adani Cement: Branding strategy
Adani Cement: Branding strategy BRAND PARTNERSHIPS WITH MARQUEE SPORTING EVENTS Cricket - Official Sponsor – BCCI – 2019-2023 - Team Sponsor – Women’s IPL - Team Sponsor Gulf Giants Pro-Kabaddi & Kho-Kho - Team Sponsor– Pro-Kabaddi League - Partners of Gujarat Giants Team– Kho-Kho 28
Slide 30: Adani Cement: Consumers & influencers at the center
Adani Cement: Consumers & influencers at the center IHB Contractor Professionals Dealer • IHB clinic • Relationship • Knowledge Strengthening • Site visits programs centers & lab consumer pull & • Technical • Contractor network enabling dealers to guidance certification • Technical sell all products
Slide 31: Adani Cement: EBITDA improvement initiatives
Adani Cement: EBITDA improvement initiatives Cost leadership through operational efficiencies (Rs 300-400/ton improvement in EBITDA for FY24) Optimising Optimising Other optimisations Manufacturing cost Logistics cost Increase in WHRS capacity from 80 MW to Manpower streamlining – Operating as a Rai
Slide 32: Growth Strategy
prbuie ACL Growth Strategy
Slide 33: Adani Cement: Priority projects for FY24
Adani Cement: Priority projects for FY24 Targeting doubling of capacity to 140 MTPA incl. additional capacity unlocking through debottlenecking Total Capex – Rs 7,000 Crs* Capacity Expansion Clinker Units Expansion Process Optimizations and (Grinding Units) (Integrated Units) Operational Efficiencie
Slide 34: Adani Cement: Transformational Roadmap
Adani Cement: Transformational Roadmap Plant Capacity (MT) Sales Volumes (MT) Net Sales (Rs Bn) EBITDA (Rs Bn) Apx. 140 Apx. 119 Apx. 700 175 68 54 297 51 2023 E 2028 F 2023 E 2028 F 2023 E 2028 F Last 3 years avg. 2028 F EBITDA (Rs/ton) EBITDA Margin (%) ROCE (%) 1,470 19% 25% 19% 13% Internal accr
Slide 35: Adani Cement: Summary
Adani Cement: Summary Net sales to Capacity to grow from Rs double from Growth to be funded through internal accruals 297 Bn in FY23 67.5 MTPA to to Rs ~700 Bn 140 MTPA in FY28 ESG focus on reducing CO2 , EBITDA/ton to enhance EBITDA margin to expand from 19%* to 25% in FY28 grow from ~Rs consumptio
Slide 36: ESG Update
prbuie ACL ESG Update O06 Cement
Slide 37: Adani Cement: Stakeholder value creation
Adani Cement: Stakeholder value creation Environmental Society Governance • Strong commitment to • Spend of ~Rs 300 Cr on • Enhanced Governance - In Sustainable Development various social addition to the statutory (SD) 2030 Plan development program committees, there are 7 (direct/partnership - Rs ad
Slide 38: ESG Ratings
ESG Ratings DJSI Climate Circular economy and energy Climate Water 80 B B 73 A- B Industry Max score 89 A A Best Possible Score 100 A A 37
Slide 39: Ambuja Cement: ESG performance update
Ambuja Cement: ESG performance update Our sustainability strategy led by our Sustainable Development (SD) 2030 Plan Climate Circular Environment Community and energy economy Target 2030 Net specific CO2 Use Fresh water 3.5 million emissions* 21 million tons consumption Number of new 453 kg /t of was
Slide 40: ACC: ESG performance update
ACC: ESG performance update Our sustainability strategy led by our Sustainable Development (SD) 2030 Plan Climate Circular Environment Community and energy economy Target 2030 Net specific CO2 Use Water Positive Index 3.5 million emissions* 30 million tons 5 Number of new 400 kg /t of waste derived
Slide 41: ACC New ESG Initiatives
ACC New ESG Initiatives ‘ACC AEROMaxX’, a state-of-the-art ultralight filler and insulation concrete launched in Delhi & Hyderabad 40
Slide 42: Adani Cement: Corporate Social Responsibility
Adani Cement : Corporate Social Responsibility 41
Slide 43: CSR @ Ambuja
CSR @ Ambuja Segment Major Transformations Till Date Water Governance & • 63.50 MCM Water Storage Capacity Created Management • 556 Check Dams Built • 13157 Family supported for Roof Rain Water Harvesting Structures • Over 1,00,000+ households Impacted in revival of drinking water sources • Salinity
Slide 44: CSR @ Ambuja
CSR @ Ambuja Segment Major Transformations Till Date Agriculture • Working with 2.50 lakh farmers across locations • 1633 farm ponds to improve availability of irrigation water • Over 10,000 beneficiaries in the current year involved in Allied Agriculture with 50-60% female participation Better Cott
Slide 45: Adani Cement: Governance
prbuie ACL Adani Cement : Governance adani Cement
Slide 46: Board & Committee Structure
Board & Committee Structure Statutory Committees Board of Directors Governance Committees Audit CSR Risk Mgt. Public Committee Committee Committee Consumer 2 3 Committee 1 Stakeholder Nomination & Corporate 1 Info. Tech & Relationship Remuneration Responsibility Data Committee Committee Committee Se
Slide 47: Key policies & its focus areas
Key policies & its focus areas RPT Policy To provide guidelines for entering into transaction with Related Parties Whistle Blower Policy To provide framework for responsible and secure whistle blowing CSR Policy To recommend amount towards CSR activities Remuneration Policy To provide criteria for d
Slide 48: Key policies & its focus areas
Key policies & its focus areas Policy For Determining Material The objective of this policy is to ensure governance of the Company’s material Subsidiaries subsidiary companies The intent of this policy is to lay down procedure of Inquiry in case of leak or suspected Leak of UPSI Policy leak of UPSI
Slide 49: Key policies & its focus areas
Key policies & its focus areas This policy provides the guidelines to continuously optimize energy use to improve our Energy Management Policy sustainability performance To ensure commitment to Environment, Social and Governance (ESG) principles and ESG Policy leverage the diversity and size of our
Slide 50: Accolades & Awards
prbuie ACL Accolades & Awards O07 Cement
Slide 51: Accolades & Awards
Accolades & Awards Ambuja ranked No.1 as India’s OHSSAI Gold Award for OHSSAI Silver Award for Development Catalyst Award Most Trusted Cement Brands Road Safety Occupational Health & Safety 2022 2023 ICAI Award for Excellence in ICC Social Impact Award Digital Customer Financial Reporting 2021-22 20
Slide 52: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Ambuja Cements Limited (“Ambuja”), the future outlook and growth prospects, and futu