Acc Limited · NSE:ACC
Acc — Non-Deal Roadshow (March 2023)
30 slides from Acc's roadshow presentation, Mar 27, 2023
Slide 1: Intimation of Analysts/Investor Meeting
No. ACC/ Sec./SE/23/021 March 27, 2023 National Stock Exchange BSE Limited of India Limited Corporate Relations Exchange Plaza, 5th Floor Department Plot No.C/1, G Block, P.J. Towers, Dalal Street Bandra Kurla Complex, Mumbai 400 001 Bandra (East), Mumbai 400 051 Scrip Code: 500410 Scrip Code: ACC D
Slide 2: Investor Presentation March 2023
Investor Presentation March 2023
Slide 3: Adani Group Profile Cement Industry Outlook Adani Cement Overview (Ambuja + ACC)
01 Adani Group Profile 02 Cement Industry Outlook 03 Adani Cement Overview (Ambuja + ACC) 04 Adani Cement – Growth Strategy 05 Adani Cement – Outlook 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 (63.2%) (72.6%) (60.8%) (74.2%) (65.1%) (100%) Cement 5 AGEL ATL APSEZ1
Slide 6: Adani Portfolio: Decades long track record of industry best growth with national footprint
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 Growth
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 • Life • Redesigning capital structure • Analysis & market • Site acquisition • Engineering & design
Slide 8: Cement Industry Outlook
Cement Industry Outlook 02 7
Slide 9: Industry Outlook
Industry Outlook 1. Strong volume growth on the back of projected GDP GDP Forecast % y-o-y growth and proposed infra spend in the budget 8.7 7.3 6.7 6.7 2. Cement per capita consumption offers good 6.0 headroom for growth (global average of 525 kg per person vs 250 kg in India) 2022 2023 E 2024 F 20
Slide 10: Adani Cement Overview (Ambuja + ACC)
Adani Cement Overview (Ambuja + ACC) 03 9
Slide 11: 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 12: 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 78,000 5 Channel partners across India Bulk Cement Terminals 14 89% Integrated units Share of blended cement 16 7.5% Integrated Unit Grinding units Thermal Substitution rate ● Grinding Unit
Slide 13: Adani Cement: Pan India footprint
Adani Cement: Pan India footprint North (30%) N Capacity: 19 MTPA No. of plants: 10 East (24%) Capacity: 17 MTPA No. of plants: 8 E Central (11%) C Capacity: 8 MTPA No. of plants: 3 West (20%) Integrated Unit (14) ● Grinding Unit (16) Capacity: 14 MTPA No. of plants: 4 W Bulk Terminal South (15%
Slide 14: 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 15: Adani Cement: Stakeholder value creation
Adani Cement: Stakeholder value creation Environmental Community 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
Slide 16: Adani Cement: ESG ratings
Adani Cement: 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 15
Slide 17: Adani Cement: Performance highlights for CY22
Adani Cement: Performance highlights for CY22 Cement Volume (MT) Net Sales (Rs Bn) Realizations (Rs/ton) 53.2 53.7 279 294 5,475 234 5,244 46.9 4,980 2020 2021 2022 2020 2021 2022 2020 2021 2022 EBITDA (Rs/ton) EBITDA Margin (%) Kiln Coal Price (Rs per '000 Kcal) 22.0% 22.7% 1,190 1,094 2.60 688 12.
Slide 18: Adani Cement – Growth Strategy
Adani Cement – Growth Strategy 04 17
Slide 19: 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 20: 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 19
Slide 21: Adani Cement: Consumers & influencers at the centre
Adani Cement: Consumers & influencers at the centre 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 22: Adani Cement: Professionals – Knowledge centre & lab network
Adani Cement: Professionals – Knowledge centre & lab network • Partnering with National / local professional institutions • Sustainable knowledge sharing platform for construction professionals • Technical talks, Panel discussion, Showcasing new products/technology, Application Workshops • Opportuni
Slide 23: 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 24: 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 25: Adani Cement - Outlook
cement AGE Adani Cement - Outlook O5
Slide 26: 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 27: 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 28: 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 29: Thank You
cement AGE Thank You Cement
Slide 30: 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