Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Investor Presentation (May 2023)
49 slides from Ultratech Cement's investor presentation, May 24, 2023
Slide 1: Corporate Dossier cover letter to exchanges
24th May, 2023 BSE Limited The Manager Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers, The National Stock Exchange of India Limited Dalal Street, “Exchange Plaza”, Bandra-Kurla Complex, Mumbai 400 001. Bandra (East), Mumbai 400 051. Scrip Code: 532538 Scrip Code: ULTR
Slide 2: UltraTech Cement Limited - Big in Your Life
UltraTech Cement Limited BIG IN YOUR LIFE STOCK CODE: BSE: 532538 NSE: ULTRACEMCO REUTERS: UTCL.NS BLOOMBERG: UTCEM IS / UTCEM LX
Slide 3: Contents
Contents Aditya Birla Group Indian UltraTech Operational and Overview Cement Sector Landscape Financial Performance 2
Slide 4: Aditya Birla Group - Overview
Aditya Birla Group - Overview
Slide 5: Aditya Birla Group - Overview
Aditya Birla Group - Overview ◼ # 1 cement player in India ◼ 3rd largest cementplayer globally (ex - China) PREMIUM GLOBAL ◼ # 2 in VSF globally ◼ World’s leading sustainable CONGLOMERATE ◼ # 1 producer of specialty chemicals, manufacturer of carbon black caustic soda & advance materials in India ◼
Slide 6: UltraTech Cement
UltraTech Cement India’s Largest Selling CementBrand Largest RMC manufacturer in Market Capof FY23 ConsolidatedRevenue 3rd largest cementplayer India with 231 plants ~USD 27bn* ~USD 7.9 bn globally (ex - China) Different Products to provide complete Leading Player of White ~2.1 bn bags of cement ~78
Slide 7: Building the Sustainable Future
Building the Sustainable Future Enhanced Stakeholder Value VISION To be The Leader in Building Solutions Socially responsible Profitable growth Strong financials Premium brand Market leader Innovation Sustainability MISSION To deliver superior valueto stakeholders on the four pillarsof Customer Team
Slide 8: Diversified product portfolio catering a full suite of building solutions
Diversified product portfolio catering a full suite of building solutions Conventional: Positioning cement at Contemporary: Providing an umbrella the core of all construction Building solutions of related construction products and services Capacity Leading player 231 RMC plants in 3,450 outlets in R
Slide 9: Grey Cement: Balanced growth through organic and inorganic expansion
Grey Cement: Balanced growth through organic and inorganic expansion Capacity evolution (In mtpa) 132.4 116.8 Organic Inorganic 68.9 66.9 67.7 51.8 120.0 mtpa 24.8 9.6 35.0 ◼ Acquisition of : 31.0 20.0 2025 1.1 63.5 o Jaypee Cement (21.2 mtpa), 1.0 18.0 18.0 49.9 42.9 o Binani Cement (6.25 mtpa), 1.
Slide 10: Birla White: Building a Robust Portfolio
Birla White: Building a Robust Portfolio Products Range 2001 2002-2006 1988 Launch of VAPs, White Cement White Putty Textura, Levelplast 9 2018-2022 Launch of VAPs 2012-2014 Fragrance Putty Launch of Pre-cote, Waterproof/Bioshield New Putty Facility putty White cement based liquid primer 9
Slide 11: UltraTech RMC
UltraTech RMC Product offering based on the requirement Ludhiana Chandigarh Performance Usage based Decorative Green Dehradun Patiala Roorkee based Concrete Concrete Concrete Concrete Sonepat Ghaziabad Bahadurgarh Gurgaon Delhi Meerut Kanpur Bhiwadi Noida Shahjahanpur Faridabad Siliguri Jaipur Neemr
Slide 12: UltraTech Building Solutions
UltraTech Building Solutions One-stop building solution for the retail customer 3,450 UltraTech Helps to increase the share of Building Solutions outlets customer wallet to 60% + Benefits for Home Builders ◼ Convenience, trust empowerment Benefits for Dealers ◼ Increase in earning capacity ◼ Better
Slide 13: UltraTech Building Products
UltraTech Building Products Dry Mix Environment Synergy friendly ◼ In line with our vision ◼ Environment (M-Sand helping ‘To be THE LEADER in conserve sand beds; less water Building Solutions’ needed in curing) ◼ Forward integration of ◼ Society (Homogenous end product; the cement business batchwise
Slide 14: Board of Directors (Independent Directors)
Board of Directors (Independent Directors) Arun Adhikari ◼ Alumni of the Indian Institute of Technology, Kanpur and the Indian Institute of Management, Calcutta IndependentDirector ◼ Areas of expertise - sales and marketing, culminating in general management and leadership roles ◼ Masters in Law fro
Slide 15: Board of Directors
Board of Directors ◼ Chairman of the Aditya Birla Group since 1995 Kumar MangalamBirla ◼ Chairs the Boards of all the Aditya Birla Group’s major companies in India (Hindalco, Grasim, Aditya Birla Capital and UltraTech Cement) and globally; Global companies include Novelis, Birla Carbon, Aditya Birla
Slide 16: Management Team
Management Team ◼ A BE (Hons.) in Mechanical and an MBA from FMS, Delhi. He has done his AMP from Wharton ◼ He has an overall experience of over 37 years and with the Group for 28 years. Vivek Agarwal ◼ A veteran with the Cement Business of the Group, he has played a key role in the Post-Merger Inte
Slide 17: Shareholding Pattern
Shareholding Pattern 5 1 Promoter Group 18 Foreign Portfolio Investors (FPI) and Others As on Mutual Fund (MF), Institutions, Insurance and 31st March, 2023 Bodies Corporate 60 Other Public Holding 16 GDRs Key Foreign Portfolio Investors (FPI) Key Domestic Mutual Funds, Insurance and Institutional I
Slide 18: Indian Cement Sector
Indian Cement Sector
Slide 19: Indian Cement Industry - Overview
Indian Cement Industry - Overview …but remains a highly underpenetrated market India is the second largest cement …but remains a highly underpenetrated market producer in the world… Global cementproduction (per capita cement consumption in kg) 1650-1700 World average : 500-550 300-320 280-300 280-30
Slide 20: Standalone local market sizes comparable to key cement producing countries
Standalone local market sizes comparable to key cement producing countries Latest Cement Capacity (mtpa)1 North India: ~112 mtpa Brazil: ~100 mtpa East India: ~128 mtpa Vietnam: ~119 mtpa Central India: ~80 mtpa Mexico: ~60 mtpa West India: ~79 mtpa Italy + Germany: ~79 mtpa South India: ~176 mtpa T
Slide 21: All segments indicating a positive demand environment
All segments indicating a positive demand environment Industrial & Commercial Sectoral demand growth CAGR: FY23-FY27 ~ 08-10% Urban Housing Industrial & Commercial ~6% Infrastructure ~30-32% ~22-24% Segmental mix in Urban Housing ~8% Demand (FY23) Rural Housing ~8% Infrastructure ~9% Rural Housing ~
Slide 22: Union Budget 2023 Highlights
Union Budget 2023 Highlights Agriculture credit target increased from 18 lakh crs to 20 Capital outlay of Rs 2.4 lakh crs for Railways vs Rs 1.37 lakh lakh crs. crs in FY23. Urban planning reforms for states and cities to transform The outlay for PM Awas Yojana (PMAY) is being enhanced by them into
Slide 23: UltraTech Landscape
UltraTech Landscape
Slide 24: UltraTech - India Footprint
UltraTech - India Footprint ◼ 24 Integrated Units1 (IU) ◼ 29 Grinding Units2 (GU) ◼ 8 Bulk Packaging Terminals3 (Sea + Rail) ◼ 1 White Cement & 3 Putty Unit ◼ 5 Jetties Grey Cement Capacity (mtpa) UTCL UTCL Capacity UTCL Industry Zones Sharein As on March’23 Mix Capacity Industry North 25.7 20% ~112
Slide 25: UltraTech – Contributing to build a strong nation
UltraTech – Contributing to build a strong nation Grey cement capacity (Mtpa) – India Grey Cement Capacity (mtpa) 155.05 Ongoing Phase II Zones Mar-23 Mar-25 Expansion Expansion North 25.7 0.8 4.4 30.9 Central 28.4 - 7.3 35.7 East 22.9 3.5 5.2 31.6 West 29.5 1.2 0.0 30.7 South 20.5 - 5.7 26.2 All In
Slide 26: End-to-end capabilities with integrated operations
End-to-end capabilities with integrated operations Strong manufacturing capability with control over supply chain Raw material Captive power generation Production Capacity Limestone ◼ Captive power plant generates 1,188 MW of Particulars UOM Current ◼ Key input for manufacturing cement power Grey Ce
Slide 27: Nationwide reach with strong logistics presence across India
Nationwide reach with strong logistics presence across India ~5.7 mn bags dispatched per day in India (FY23) > 30,000 destinations ~61% lifting by GPS enabled fleet Integrated model ~30,000+ orders processed daily Integrated Unit Grinding Unit Bulk Terminals Jetty Jetty Inland water transport One of
Slide 28: Extensive Technical Support to the Distribution Network
Extensive Technical Support to the Distribution Network ◼ Over 1,600 personnel deployed to provide technical advisory & testing Services along with value-added solutions to home builders, engineers, architects and contractors ◼ Mobile concrete vans providing on-site testing for concrete, water, aggr
Slide 29: Digitally connected
Digitally connected UltraTech Trade Connect ◼ Customer Connect: Order scheduling, ◼ Platform to engage with dealers, acknowledgement and real time tracking for Non- retailers, masons, contractors, trade and Key customers. architects ◼ UltraTech - Prashikshan Pahal: To provide basic knowledge about c
Slide 30: ESG at UltraTech
ESG at UltraTech
Slide 31: Progressing towards our sustainability targets
Progressing towards our sustainability targets Climate and Circular Environment Green Energy Economy Energy CO2 Alternative Raw WATER Green Power ESG Metric Emmission material and Fuel Positive Mix ^ [kg CO2/t cement] [MnT] [Times] [% of Total Power] FY23 Performance* 557 -4.3% 29.3 +21% 4.1x +8% 25
Slide 32: Carbon Emission reduction
Carbon Emission reduction Scope 1 Target Achieved Key Steps leading to reduction in emissions Carbon 2032 till 2023 Emission reduction 27% 12% Increase in alternative fuel and clean energy Specific Net Direct GHG emissions Adoption of emerging technologies FY17 FY21 FY22 FY32 12% 27% Increase in sha
Slide 33: Board Structure and Compliance
Board Structure and Compliance Shareholders Independent Directors 50% Board of Directors Nomination, Remuneration and Stakeholders Woman Directors 30% Audit Relationship Compensation Risk Management Corporate Social Board Attendance >90% Finance and Sustainability Responsibility Executive Management
Slide 34: Policies governing our business
Policies governing our business 1. Sustainability Policy 11. Anti-Harassment and discrimination policy 2. Code of Conduct 12. Supplier Code of Conduct 3. Tax Policy 13. Human Rights Policy 4. Policy on Related Party Transaction 14. Safety Policy 5. Whistleblower Policy 15. Occupational Health Policy
Slide 35: Financial Statistics
Financial Statistics
Slide 36: Key Performance Trends - Consolidated
Key Performance Trends - Consolidated Grey Cement Sales (Million Tonnes) and Net Sales (Rs Crs) Capacity Utilisation (%) 110.00 104.09 90% 65,455 65,324 65,193 65,062 64,931 64,800 64,669 64,539 64,408 64,277 64,146 64,015 63,884 63,753 62,338 63,622 63,491 63,360 63,229 63,099 62,968 62,837 62,706
Slide 37: Key Performance Trends - Consolidated
Key Performance Trends - Consolidated EBIDTA (Rs Crs) Normalised PAT (Rs Crs) 13000.00 12978.00 12956.00 12934.00 12912.00 12890.00 12868.00 12846.00 12824.00 12802.00 12780.00 12758.00 12736.00 12714.00 12,302 12,022 6500.00 6487.00 6474.00 6461.00 6448.00 6435.00 6422.00 6409.00 6396.00 6383.00 63
Slide 38: Grey Cement Cost Trends – India Operations
Grey Cement Cost Trends – India Operations Energy Cost (Rs / Mt) Comparative Cost (TPP / WHRS ) 8.00 7.50 7.20 1750.00 1740.00 1730.00 1692 7.00 1720.00 1710.00 1700.00 1690.00 6.50 1680.00 1670.00 1660.00 1650.00 1640.00 1630.00 1620.00 1610.00 6.00 5.80 1600.00 1590.00 1580.00 1570.00 1560.00 1550
Slide 39: Grey Cement Cost Trends – India Operations
Grey Cement Cost Trends – India Operations Raw Materials Cost (Rs/ Mt) Logistics Cost (Rs / Mt) 650.00 1280.00 1270.00 1248 1260.00 1250.00 600 1240.00 1230.00 1214 600.00 1220.00 1210.00 1187 1200.00 1190.00 1158 550.00 504 531 1180.00 1170.00 1144 493 1160.00 1150.00 491 1140.00 1130.00 1124 500.0
Slide 40: Key Inputs: Historical Price Trends
Key Inputs: Historical Price Trends Pet coke Price Trend 2000 1,731 1,766 1,697 300 1,450 1,573 1,327 250 1500 1,011 1,026 985 978 1,019 1,099 231 200 914 913 937 952 208 224 193 1000 193 188 150 95 91 80 71 70 70 123 142 100 500 87 110 50 0 0 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
Slide 41: EBITDA PMT Trend
EBITDA PMT Trend 1689 1651 99 1478 198 1460 1449 1438 65 1394 68 88 108 1308 1324 1299 70 1262 1251 31 58 51 1158 103 82 1178 1121 40 1110 1090 1094 1051 89 1061 32 50 131 70 50 98 945 926 1590 1413 866 45 57 1453 54 1060 1069 1381 1266 1159 1277 1248 900 1011 1020 1169 1324 1138 990 1330 1277 812 9
Slide 42: Quarterly Performance Trends – India Operations
Quarterly Performance Trends – India Operations Rs Crs Particulars Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 Q1FY22 Q4FY21 Q3FY21 Q2FY21 Q1FY21 Q4FY20 Capacity (MTPA) 127.0 121.4 115.9 114.6 114.6 112.6 111.4 111.4 111.4 111.4 111.4 111.4 111.4 Total Sales Volume (MnT) 30.5 24.8 22.2 24.2 26.
Slide 43: Annual Performance Trends – India Operations
Annual Performance Trends – India Operations Rs Crs Particulars FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY14 Capacity (MTPA) 127.0 114.6 111.4 111.4 109.4 85.0 66.3 64.7 60.2 54.0 Total Cement Volume (MnT) 101.7 89.5 82.6 78.8 82.4 60.6 50.2 49.3 46.1 42.6 Net Sales 60,359 49,615 42,578 39,923
Slide 44: Annual Performance Trends – India Operations
Annual Performance Trends – India Operations Rs Crs Financial Position FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY14 Net Fixed Assets (Incl. Goodwill) 62,121 59,008 56,161 57,681 58,613 40,782 24,387 24,499 23,632 18,650 Investments in Subs/Associates/JVs 3,187 2,183 2,118 772 759 751 746 725 73
Slide 45: Quarterly Performance Trends - Consolidated
Quarterly Performance Trends - Consolidated Rs Crs Particulars Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 Q1FY22 Q4FY21 Q3FY21 Q2FY21 Q1FY21 Q4FY20 Capacity (MTPA) 132.4 126.8 121.3 120.0 120.0 118.0 116.8 116.8 116.8 116.8 116.8 116.8 116.8 Total Sales Volume (MnT) 31.65 25.86 23.1 25.0 27.7
Slide 46: Annual Performance Trends - Consolidated
Annual Performance Trends - Consolidated Rs Crs Particulars FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY14 Capacity (MTPA) 132.4 120 116.8 116.8 115.4 89.0 70.3 67.7 63.2 57.0 Total Cement Volume (MnT) 105.7 94.0 86.4 83.1 86.0 64.6 53.7 52.6 49.4 45.8 Net Sales 62,338 51,708 44,239 41,781 41,052
Slide 47: Annual Performance Trends – Consolidated
Annual Performance Trends – Consolidated Rs Crs Financial Position FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY14 Net Fixed Assets (Incl. Goodwill) 64,987 61,606 58,775 60,258 61,200 43,332 27,124 27,233 26,239 21,057 Investments in Subs/Associates/JVs 1,017 101 74 47 44 34 23 15 21 21 Net workin
Slide 48: Glossary
Glossary ➢ MNT - Million Metric Tons ➢ WHRS - Waste Heat Recovery System ➢ LMT - Lakh Metric Tons ➢ Green power Mix includes WHRS, captive renewable power and ➢ MTPA - Million Tons Per Annum renewable power mix in grid power consumption ➢ LTPA - Lacs Tons Per Annum ➢ EBITDA = Profit Before Tax plus
Slide 49: Disclaimer
Disclaimer Statements in this ‘presentation’ describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Impor