Acc Limited · NSE:ACC
Acc — Investor Presentation (February 2021)
49 slides from Acc's investor presentation, Feb 11, 2021
Slide 1: Exchange filing cover letter – Investor Presentation
Secretarial Division ACC Limited Registered Office Cement House 121, Maharshi Karve Road No. ACC/Sec./SE/21/011 Mumbai - 400 020, India February 11, 2021 CIN: L26940MH1936PLC002515 Phone: +91 22 3302 4321 National Stock Exchange BSE Limited Fax: +91 22 6631 7458 www.acclimited.com of India Limited C
Slide 2: Investor Presentation: 2020
Investor Presentation : 2020 February 11, 2021 Stock code: BSE: 500410 | NSE: ACC | Reuters: ACC.NS | Bloomberg: ACC:IN
Slide 3: Safe Harbour Statement
Safe Harbour Statement This presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness,
Slide 4: Index
Index 1 ACC at a Glance 2 Performance Review 3 Opportunity Landscape 4 Strategic Priorities 5 Business Enablers 6 ESG
Slide 5: ACC at a Glance
ACC at a Glance
Slide 6: Partner in India's Progress
Partner in India’s Progress A leader in Indian building materials A brand that inspires space with a pan-India operational and marketing presence confidence among customers and other stakeholders Vision Proven track record in setting To be one of the most respected 33.05 MTPA industry benchmarks wit
Slide 7: Strong Parentage Providing Competitive Edge
Strong Parentage Providing Competitive Edge LafargeHolcim (LH) is a leading global conglomerate Shareholding Pattern LH Key Facts engaged in the production of cement, aggregates and ready- mix concretes LH is reinventing how the world builds - to shape a world Parent > 70,000 that is greener, sm
Slide 8: Sustainable Value Creation through Scale and Innovation
Sustainable Value Creation through Scale and Innovation Operational Social Environment and governance 17 ~6,500 3.7% Cement plants Employees Reduction in net specific CO2 emissions of cementitious materials 80 56,000 9.3 MT Ready mix concrete plants Channel partners Usage of waste derived resources
Slide 9: Pioneer in Industrialisation and Nation Building
Pioneer in Industrialisation and Nation Building 1930s 1950s 1970s 1990s 2010s 2020 The Associated Cement Establishes Bulk Introduces India’s first Becomes part of Ambuja Capacity expansion at Sustainability – reduce Companies Limited is Cement Depot, Okhla energy-efficient pre- Group an
Slide 10: An Integrated Portfolio that Drives Value
An Integrated Portfolio that Drives Value Cement Ready Mix Concrete RMX is supplied in a variety of grades and compositions to meet specific needs of diverse clientele - from simple requirements for small homes to high performance concrete to meet complex needs of mega projects Offers wide range
Slide 11: Nation-Wide Presence
Nation-Wide Presence Cement plants Sales units Grinding unit Integrated plant Bihar HP Andhra Pradesh AP Madhya Pradesh MP Chandigarh Well – diversified Vizag Kymore Chhattisgarh presence across nation Chhattisgarh Maharashtra MH CG Haryana Jamul Chanda Jharkhand Cement 12 RJ UP Odisha OD
Slide 12: Top of the Mind Brand Recall
Top of the Mind Brand Recall Initiatives Kamaal Ki Kahani Video series chronicling real life motivational stories of resilience to engage with consumers Kamaal Ki Baat A knowledge series where experts from construction and building industry share their learnings, experiences and key expertise with o
Slide 13: Recognition of Excellence
Recognition of Excellence Won the second Runner Up award in the ACC’s Bargarh Cement Works was adjudged as ACC achieved the highest recognition of manufacturing sector for the Best Excellent Energy Efficient by Confederation of ‘Outstanding Accomplishment’ in Corporate Presented Annual Report at SAF
Slide 14: Performance Review
Was, EERE ARR WA WU \ SEES WSEAS EA WORE \_ Ae ARN —
Slide 15: Performance Highlights – Q4 2020 (Consolidated)
Performance Highlights – Q4 2020 (Consolidated) Delivered strong operating performance Cement Sales Volume RMX Sales Volume Net Sales 7.7 mt 0.73 Mio m3 INR 4,066 crs (-0.6% YoY) (-20.9% YoY) (+2.4% YoY) EBITDA # Op. EBIT Margin # Profit After Tax INR 701 crs 13.4% INR 472 crs (+29.5% YoY) (+3.8ppYo
Slide 16: Performance Highlights – 2020 (Consolidated)
Performance Highlights – 2020 (Consolidated) A strong year of performance despite Covid setback Cement Sales Volume RMX Sales Volume Net Sales 25.5 mt 2.3 Mio m3 INR 13,487 crs (-11.6% YoY) (-35.7% YoY) (-12.1% YoY) EBITDA # Op. EBIT Margin # Profit After Tax INR 2,484 crs 13.7% INR 1,430 crs (+3.0%
Slide 17: Improving Margins and Free Cash Flow
Improving Margins and Free Cash Flow Margin expansion driven by Product Mix Parvat - Implemented cost efficiency Generation of additional cash & cash Optimisation and Cost Efficiency Initiatives measures with ongoing positive impact equivalents driven mainly by strong working capital actions Leverag
Slide 18: Financial Results – Consolidated
Financial Results – Consolidated Particulars Quarter Ended December 2020 Year Ended December 2020 (all amount in ₹ Crore) Q4 2020 Q4 2019 Change (%) 2020 2019 Change (%) Net Sales 4,066 3,970 2.4% 13,487 15,343 -12.10% EBITDA # 701 541 29.5% 2,484 2,413 3.0% EBITDA Margin (%) 17.2% 13.6% 3.6pp 18.4%
Slide 19: Income Statement – Cement
Income Statement – Cement Particulars Quarter Ended December 2020 Year Ended December 2020 (Rs. / Ton) Q4 2020 Q4 2019 Change per ton 2020 2019 Change per ton Sales Revenue 4,834 4,722 112 4,881 4,508 374 Other Operating 99 107 (8) 112 103 10 Income Total Operating Income 4,981 4,615 366 4,946 4,825
Slide 20: Performance Analysis - Sales Volume
Performance Analysis - Sales Volume Strong performance in a tough year, with plant utilisation higher than industry Cement Volume (Q4) Cement Volume (Annual) (Million tonnes) (Million tonnes) -0.6% -11.6% 28.9 25.5 7.7 7.8 Q4 2020 Q4 2019 2020 2019 Performance Review acclimited.com | 19
Slide 21: Performance Analysis – Net Selling Price
Performance Analysis – Net Selling Price Improvement in realisation driven by better product and segment mix and improved pricing environment Net Selling Price (Q4) Net Selling Price (Annual) (₹ /ton) (₹ /ton) 8.3% 2.4% 4,881 4,834 4,722 4,508 Q4 2020 Q4 2019 2020 2019 Performance Review acclimited.
Slide 22: Performance Analysis – Cost of Materials Consumed
Performance Analysis – Cost of Materials Consumed Continuous focus on manufacturing and procurement efficiencies Raw Material Cost (Q4) Raw Material Cost (Annual) (₹ /ton) (₹ /ton) 15.6% -10.9% 519 492 462 426 Q4 2020 Q4 2019 2020 2019 Performance Review acclimited.com | 21
Slide 23: Performance Analysis – Power & Fuel Cost
Performance Analysis – Power & Fuel Cost Leveraging Geocylce for alternate fuels, efficiency improvement in energy consumption and mix optimisation Power & Fuel Cost (Q4) Power & Fuel Cost (Annual) (₹ /ton) (₹ /ton) 4.9% -6.5% 1,046 961 978 916 Q4 2020 Q4 2019 2020 2019 Performance Review acclimited
Slide 24: Performance Analysis – Freight & Forwarding Cost
Performance Analysis – Freight & Forwarding Cost Focus on direct dispatches, network and warehouse footprint optimisation and procurement savings Freight & Forwarding Cost (Q4) Freight & Forwarding Cost (Annual) (₹ /ton) (₹ /ton) 6.9% -2.9% 1,307 1,265 1,270 1,184 Q4 2020 Q4 2019 2020 2019 Performan
Slide 25: Performance Analysis – Employee Cost
Performance Analysis – Employee Cost Full year impacted by lower volume absorption Employee Cost (Q4) Employee Cost (Annual) (₹ /ton) (₹ /ton) 12.5% 10.7% 298 294 265 266 Q4 2020 Q4 2019 2020 2019 Performance Review acclimited.com | 24
Slide 26: Performance Analysis – Other Expenses
Performance Analysis – Other Expenses Pursuing cost reduction and cost avoidance through various initiatives Other Expenses# (Q4) Other Expenses# (Annual) (₹ /ton) (₹ /ton) 3.1% -9.9% 774 730 708 698 Q4 2020 Q4 2019 2020 2019 #excluding charge of ₹129 Crore in Q4’20 & Year 2020 Performance Review ac
Slide 27: Opportunity Landscape
Opportunity Landscape
Slide 28: Favourable Demand-Supply Dynamics
Favourable Demand-Supply Dynamics India is the world’s second largest Country wise cement production* Cement sector break-up# cement producer, with growing demand in the construction, infrastructure, and (%) (%) 15 housing segments 54 China 24 Infrastructure 32 India Rural Housing Although India
Slide 29: Driven by Rapid Urbanisation
Driven by Rapid Urbanisation India’s working population# Cement demand is expected to grow by 15%–17% in CY 2021 Population by broad age groups (million) 1000 25-64 India’s urban population is expected to reach 525 million by 2025, up from an 500 65+ estimated 463 million in 2020. Thereby 0-14 t
Slide 30: Affordable Housing Segment to be a Key Driver
Affordable Housing Segment to be a Key Driver The government’s vison of In 2020, around 586.05 lakh Demand for affordable homes is “Housing for all by 2022” is tonnes of cement were used at set to stay healthy, supported by expected to create lucrative the start of construction work a growing popula
Slide 31: Infrastructure Recovery to Support Demand
Infrastructure Recovery to Support Demand Infrastructure investment (past and planned under NIP)* National Infrastructure Pipeline (NIP) envisages ₹ 111 lakh crore investment over 2020-2025 period. This would require almost doubling the pace of infrastructure investment 40% ` lakh crore A major
Slide 32: Strategic Priorities
Strategic Priorities
Slide 33: Focused on 'Health, Cost and Cash' in Near-Term
Focused on ‘Health, Cost and Cash’ in Near-Term Health Cost Cash Protecting our employees physical and Decline in expenses due to Better supplier credit management mental health Operating efficiencies Reduction in day sales outstanding Keeping our people, partners and Source optimisation
Slide 34: A Purpose-Led Strategy for Future Growth
A Purpose-Led Strategy for Future Growth At ACC, our core purpose is to be a driving force in creating a confident future for our people, our customers, our shareholders and our nation. Enhancing and upgrading Enhancing Reimagining our Accelerating ESG across capacities profitability business propos
Slide 35: Expanding Capacities to Capitalise on Opportunities
Expanding Capacities to Capitalise on Opportunities Planned Capacity Expansion (MTPA) 2.2 U T T A R PR A D ESH (ginding unit) 1.6 T IK A R IA U N IT (grinding unit) With projected increase in 1.4 SIN D R I* cement demand, expansions ( g r i ndi ng u n i t) have been kick started to increase clinker
Slide 36: Business Enablers
Business Enablers
Slide 37: Leveraging Technology
Leveraging Technology Automated workflow and data-based decision making Integrated workflow platforms for internal and external stakeholders Contractors Providing visibility and data-based opinions Integrated dashboards and in-time data for key insights into our business Individual Dealers Hou
Slide 38: Optimising Logistics for Better Supply Chain Management
Optimising Logistics for Better Supply Chain Management Improving cost-to-serve and time-to-serve Four pillars of logistics strategy Distribution safety Cost efficiency Technology Environment efficiency 31.4% Drop in incidents Driver Management Centres Continual measures to build a Focused on
Slide 39: ESG
ESG
Slide 40: Responsible Growth
Responsible Growth Environment Social Governance 493 kg/t Zero 61 years Specific carbon emissions of cementitious materials Onsite fatality Median director age (2019 – 512 kg/t) 85.3 mu 13,581 ~4 years Total learning Average tenure of Independent Green energy hours in Super Assisted Intelligent Dire
Slide 41: Committed to Building a Sustainable Future
Committed to Building a Sustainable Future Focus Areas Initiatives Climate change mitigation and adaptation Measures to reduce CO2 emission intensity levers – clinker factor reduction, Water positivity energy efficiency improvement, use of alternative fuels and raw materials, Managing waste
Slide 42: Progressing Well Towards Achieving SD 2030 Goals
Progressing Well Towards Achieving SD 2030 Goals Our sustainability strategy is led by our Sustainable Development (SD) 2030 Plan, developed in 2016, and aligned with the earlier SD 2030 Plan of our parent LafargeHolcim Climate Circular Environment Community and energy economy Target 2030 Reduction
Slide 43: Promoting a Safe, Inclusive and Vibrant Culture
Promoting a Safe, Inclusive and Vibrant Culture Our employees have opportunities to learn, connect and be a voice in our workplace ACC-Ambuja Leadership Super Assisted Talent review, succession Academy (AALA) - make Intelligent Learning planning with robust learning an everyday (SAIL) - Digital lear
Slide 44: Delivering a Wider, Meaningful Impact
Delivering a Wider, Meaningful Impact Areas Quality Education Livelihood WASH (Water, Sanitation, Health & Hygiene) 34,801 186 14,304 ₹ 4.52 Crore 2.26 Lakh 29,293 Beneficiaries of Schools supported Lives touched Savings mobilised Lives touched Lives touched through safe education initiatives for qu
Slide 45: Good Governance Driving Business Forward
Good Governance Driving Business Forward Committed to high standards Board balance chart of ethical conduct. EthicalView Reporting Policy (‘EVRP’) is the Strategic oversight 1 vigil mechanism instituted by us to report concerns about unethical behaviour, in compliance with applicable regulations R
Slide 46: COVID-19 update: Quick and Decisive Actions
COVID-19 update: Quick and Decisive Actions Protecting employees and Reaching out to local Responding as a 4,29,752 stakeholders communities business Cotton masks produced Work from home arrangements for all Protecting frontline workers Increased communication with all and distributed office s
Slide 47: Board of Directors
Board of Directors Mr N S Sekhsaria Mr Jan Jenisch Mr Martin Kriegner Non-executive and Non-independent Director Non-executive and Non-independent Director Non-executive and Non-independent Director Key expertise: Management, Marketing and Key expertise: General Management Key expertise: Sustainabil
Slide 48: Board of Directors (Contd.)
Board of Directors (Contd.) Mr Vinayak Chatterjee Mr Shailesh Haribhakti Mr S K Roongta Non-executive and Independent Director Non-executive and Independent Director Non-executive and Independent Director Key expertise: Infrastructure Planning and Key expertise: Auditing, Tax and Risk Key expertise:
Slide 49: Registered Office
Registered Office Cement House, 121, Maharshi Karve Road, Mumbai – 400 020 acclimited.com ACCInd acc-limited ACCCementOfficial