Slide 1: Filing cover letter to stock exchanges
Ambuja Cement ACL:SEC: February 18, 2021 SSE Limited , National Stock Exchange of India Ltd ., Phiroz Jeejeebhoy Towers, Plot No.C/1 'G' Block Dalal Street, Mumbai - 400 023 Sandra - Kurla Complex corp.relations@bseindia.com Sandra East, Mumbai 400 051 cmlist®nse.co.in Deutsche Bank Societe de la Bo
Slide 2: Investor Presentation February 2021
Ambuja Cement Investor P rese ntati on FEBRUARY 2021 - \ - \ \ \
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 o
Slide 4: Index
Index Company Overview Performance Highlights External Environment Slide 5-10 Slide 12-19 Slide 21-24 5 A robust foundation 12-13 Performance in Q4CY2020 21 Megatrends 6 Parentage Performance in CY2020 22 A closer look at cement sector 14 Robust performance, despite COVID-19 7 Solid fundamentals 23
Slide 5: Company Overview
Ambuja Cement Company Overview \
Slide 6: A robust foundation
A robust foundation Our Vision To be the most sustainable One of India’s leading cement Differentiated product portfolio for and competitive company in our industry manufacturers with a strong presence across North, Central, West and East India diverse climatic conditions 5 Integrated units Our Purp
Slide 7: Parentage
Parentage Part of LafargeHolcim Group, a leading Group synergies LafargeHolcim global conglomerate engaged in cement (LH) Ltd. Ambuja Cement & ACC inked a production, aggregates and ready-mix Our Parent Company Master Supply Agreement (MSA) concretes in 2018, to achieve economies of Sustainable
Slide 8: Solid fundamentals
Solid fundamentals Operational 29.65 MTPA 75% 291 MW Installed cement Capacity Utilisation Captive power capacity plant capacity People, partners 5,046 ~50,000 2.7 MN and community Employee base Channel partners CSR beneficiaries Environment 2.5x 8X Strong Independent and governance Plastic negative
Slide 9: Delivering with a diverse portfolio
Delivering with a diverse portfolio High-strength and high- Strength for the core Strength for the decor performance Portland COOL WALL Pozzolana Cement (PPC), PPC PLUS KAWACH Ordinary Portland Cement (OPC) and Blended cement across grades Focus on growth of Special Products COMPOCEM BUILDCEM PO
Slide 10: Strong presence with strategically located plants
Strong presence with strategically located plants North West North India Share of Revenue Share of Revenue Our integrated plants and grinding units are present in more than 11 states covering more than 32 districts across Northern, Central, Western and Eastern parts 25% 32% of the country 2 7 1 2 4
Slide 11: Recognition of our strength
Recognition of our strength Ambuja True Value Case study has been Based on our Dow Jones Sustainability Indices picked up by several business schools for Ambuja Cement is included in The teaching during 2020 such as IESE Business Sustainability Yearbook 2021 Worldwide School (Spain), College of Comm
Slide 12: Performance Highlights
Ambuja Cement Performance Highlights \
Slide 13: Robust financial performance in Q4 2020
Robust financial performance, supported by volume, price, cost actions and efficiency improvement in Q4 2020 7.05 MT ~90% ₹ 3,468 Sales Volume - CLC Capacity utilisation (%) Net Sales Cr. 8% 4pp 14% ₹ 768 ₹ 642 ₹ 497 EBITDA Cr. EBIT Cr. Profit After Tax Cr. 40% 61% 41% * CLC – Cement + Clinker * Adj
Slide 14: EBITDA growth of 23% in Full Year 2020
Sharp focus on cost resulted in EBITDA growth of 23%, despite challenges in volume in Full Year 2020 22.67 MT 75% ₹ 11,175 Sales Volume - CLC Capacity utilisation (%) Net Sales Cr. 6% ~6pp 2% ₹ 2,647 ₹ 2,125 ₹ 1,790 EBITDA Cr. EBIT Cr. Profit After Tax Cr. 23% 32% 26%* CLC – Cement + Clinker * Adjus
Slide 15: Robust performance, despite COVID-19 induced challenges
Robust performance, despite COVID-19 induced challenges Strong demand from rural housing, as well as tier II Higher share of Launched Ambuja Kawach and III cities helped in Special products in and Ambuja Plus in the volume growth the total revenue-mix Special segment 600 new channel Significant acce
Slide 16: Financial results – Standalone
Financial results – Standalone Quarter Ended December 2020 Year Ended December 2020 (all amount in ₹ Crore) Q4 2019 Q4 2020 Change (%) 2019 2020 Change (%) Net Sales 3038 3468 14% 11,353 11,175 -2% EBITDA 548 768 40% 2,149 2,647 23% EBITDA Margin (%) 18.0% 22.1% 4.1pp 18.9% 23.7% 4.8pp Operating EBI
Slide 17: Performance analysis – Q4 2020 vs Q4 2019 and CY 2020 vs CY 2019
Performance analysis – Q4 2020 vs Q4 2019 and CY 2020 vs CY 2019 Sales volume – Cement + Clinker Realisations* EBITDA (mn tonnes) (₹/tonne) (₹/tonne) 4,921 4930 1168 24.06 1,090 22.67 837 893 4718 4,644 6.54 7.05 Q42019 Q42020 CY2019 CY2020 Q42019 Q42020 CY2019 CY2020 Q42019 Q42020 CY2019 CY2020 S
Slide 18: Performance analysis (Contd.)
Performance analysis Q4 2020 vs Q4 2019 and CY 2020 vs CY 2019 (Contd.) Power and fuel Cost Freight and forwarding Cost Raw material Cost (₹/tonne) (₹/tonne) (₹/tonne) 1,281 1286 413 1075 1260 390 1,023 386 1,233 378 995 994 Q42019 Q42020 CY2019 CY2020 Q42019 Q42020 CY2019 CY2020 Q42019 Q42020 CY201
Slide 19: Performance analysis (Contd.)
Performance analysis Q4 2020 vs Q4 2019 and CY 2020 vs CY 2019 (Contd.) Other Expenses Total Cost (₹/tonne) (₹/tonne) 848 3,957 3956 840 3,898 778 772 3849 Q42019 Q42020 CY2019 CY2020 Q42019 Q42020 CY2019 CY2020 Other expenses per tonne declined by 8% Total cost per tonne declined by 2% for the
Slide 20: Financial results – Consolidated
Financial results – Consolidated Quarter Ended December 2020 Year Ended December 2020 (all amount in ₹ Crore) Q4 2019 Q4 2020 Change (%) 2019 2020 Change (%) Net Sales 6,963 7,350 6% 26,539 24,094 -9% EBITDA # 1,117 1,472 32% 4,597 5,135 12% EBITDA Margin (%) 16.0% 20.0% 4 pp 17.3% 21.3% 4 pp Operat
Slide 21: External Environment
Ambuja Cement External Environment \
Slide 22: Megatrends
Megatrends Population India is urbanising rapidly India stood at 1.38 billion in 2020; expected to touch Budget 2021-22* 1.64 billion by 2050 Urban Population to increase as a proportion of total population Continued focus on the infrastructure sector 80 and rural economy in the Union Budget 2021
Slide 23: A closer look at cement sector
A closer look at cement sector Cement demand in India Cement demand in India India is the second-largest cement producer and second- largest consumer of cement in the 295-300 MT 345-350 MT world. However, India’s per capita CY 2020 CY 2021 cement consumption is ~200-250 Internal estimate kg, lower
Slide 24: Catalysts for growth
Catalysts for growth Affordable housing Infrastructure spending segment 1,08,00,000 India is expected to attract ₹ 111 lakh crore Total houses sanctioned under PMAY investment worth ₹50 trillion (US$ The Ministry of Housing and Urban Projected investments in Affairs estimated an affordable 777.73 bi
Slide 25: Our response to opportunities
Our response to opportunities Strong retail focus Expansions Increased penetration by entering new markets Customise our product mix based on construction segment Setting up a greenfield plant at Marwar Created influencer engagement to promote the brand Mundwa (3.0 MTPA clinker; 1.8 MTPA
Slide 26: Strategic Priorities
Ambuja Cement Strategic Priorities \
Slide 27: Near-term focus areas – Health, Cost and Cash
Near-term focus areas – Health, Cost and Cash in Full year 2020 Health Cost Cash Protecting the physical and mental I CAN program yielded results. Focusing on receivables health of our employees. management to drive cash Optimization of sourcing through generation. Ensuring safety of our p
Slide 28: Long-term strategic priorities
Long-term strategic priorities Priority 01 Priority 02 Our strategy aims to deliver strong returns to Market share Special products shareholders, best-in-class and sustainable products to customers and consistent value to Capacity expansion Kawach – A Water all stakeholders Enhance distributio
Slide 29: Market share
1 Market share Capacity expansion to sustain growth Enhance distribution reach Customer Engagement Developed various digital Appointed 600 new dealers in the markets of platforms to engage all our Bihar, Madhya Pradesh, and Eastern Uttar Pradesh thus increasing our presence stakeholders ~46,000
Slide 30: Special products
2 Special products Driving superior value proposition through leveraging Group’s global research and development capabilities Key value-added products PPC PLUS COMPOCEM KAWACH Strengthened Ambuja Certified Technology, a unique holistic packaged solution, Ambuja Kawach handholding the customer in
Slide 31: Enhance efficiency
3 Enhance efficiency Cost optimisation driving bottomline Plant Operation efficiency Logistics Launched I CAN Program to reset the Enhanced use of alternative fuels and Rolled out a new integrated business cost base in manufacturing and supply waste materials to reduce operating cost planning
Slide 32: Achieve sustainability goals
4 Achieve sustainability goals SD 2030 Plan Aligned with LafargeHolcim’s Sustainability Strategy, the Sustainable Development Ambition 2030 provides critical impetus to the company’s objective to achieve growth 5 th through sustainable operations. Global Dow Jones Sustainability Indices ranking of A
Slide 33: Achieve sustainability goals (Contd.)
4 Achieve sustainability goals (Contd.) Climate and energy Circular economy Water and nature Specific net CO2 per tonne of cementitious Co-processed around 83,138 tonnes of plastic Reported 11% reduction in volume of water product is 531 kg, reflecting a 31% decline in waste in our kilns withd
Slide 34: Achieve sustainability goals (Contd.)
4 Achieve sustainability goals (Contd.) Creating a strong human capital Recruitment Capability development Talent management Safety In place campus hiring programmes Hold virtual sessions for specific Initiated continuous dialogues with Zero onsite fatality for the year. to recruit engineers
Slide 35: Corporate Social Responsibility
Corporate Social Responsibility Growing with the community through our CSR arm, Ambuja Cement Foundation Water Livelihood Health and sanitisation Education 105,000 2.1 lakhs 8.6 lakhs 10,000 Beneficiaries of water related activities Lives Lives Lives 10,380 20 146 8 Number of water harvesting and Ag
Slide 36: Governance
Ambuja Cement Governance
Slide 37: Highest level of governance
Highest level of governance At Ambuja Cement, we strive to maintain the highest level of governance standards backed by superior values, ethics and policies. Governance framework Components Core principles of governance 1 Executive Director Board Board members Emphasis on values such as empowerm
Slide 38: Board of Directors
Board of Directors NS Sekhsaria Jan Jenisch Martin Kriegner Nasser Munjee Rajendra P Chitale Chairman Vice Chairman Director Independent Director Independent Director Shailesh Haribhakti Dr Omkar Goswami Shikha Sharma Christof Hassig Then Hwee Tan Independent Director Independent Director Independen
Slide 39: Appendix
Ambuja Cement Appendix \
Slide 40: COVID-19 Update: Quick and decisive actions
COVID-19 Update: Quick and decisive actions Protecting employees and Reaching out to Responding as stakeholders local communities a business Supported 14,770+ families, migrants and Work from home Creation of immediate strategic labourers with ration kits arrangements for all office priorities
Slide 41: Operational performance
Operational performance Cement Production Cement Sales Volume Capacity Utilisation (MT) (MT) (%) 24.3 82 81 23.9 24.2 24.0 23.0 23.0 78 22.3 22.6 75 21.2 21.1 71 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Clinker factor EBITDA per tonne (%) (₹) 66.5 65.9 1168 845 893
Slide 42: Profit and Loss and Balance Sheet trend - Standalone
Profit and Loss and Balance Sheet trend - Standalone Net sales Operating EBITDA Profit after tax (₹ crore) (₹ crore) (₹ crore) 2,647 1,790 10,977 11,353 11,175 2,149 1,487 1,529 10,250 1,940 1,891 1,250 9,117 1,692 932 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Net wo
Slide 43: Environment, social and governance
Environment, social and governance CO2 emission per tonne of cement Dust emission per tonne of cement Thermal substitution rate (kg) (gram) (%) 5.6 5.4 34 5.1 550 4.2 4.2 27 543 22 23 16 530 531 531 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Plastic waste co-processes
Slide 44: Shareholding pattern
Shareholding pattern Category No of shares Percentage Percentage of shares (Million) (%) Foreign promoters - LH Foreign promoters –LH Group) 1,253 63.11 Group Foreign Investors (FIIS) 324 16.31 Foreign Investors (FIIS) Mutual Fund Banks & Institution 270 13.62 Mutual Fund Banks & OCB NRIS 12 0.61 In
Slide 45: Corporate and registered office
CORPORATE OFFICE REGISTERED OFFICE Elegant Business Park PO Ambujanagar MIDC Cross Road B Taluka Kodinar Off Andheri-Kurla Road Gir Somnath district Andheri (E) Gujarat – 362 715 Mumbai – 400 059