Acc Limited · NSE:ACC
Acc — Q1 2022 Earnings Presentation
39 slides from Acc's earnings presentation, Apr 19, 2022
Slide 1: Regulation 30 SEBI Cover Letter
Secretarial Division ACC Limited No. ACC/ Sec./SE/22/034 Registered Office April 19, 2022 Cement House 121, Maharshi Karve Road Mumbai - 400 020, India National Stock Exchange BSE Limited CIN: L26940MH1936PLC002515 of India Limited Corporate Relations Exchange Plaza, 5th Floor Department Phone: +91
Slide 2: Investor Presentation Q1 2022
April 2022 INVESTOR PRESENTATION STOCK CODE BSE: 500410 | NSE: ACC | Reuters: ACC.NS | Bloomberg: ACC:IN Q1 2022
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, fai
Slide 4: Index
Index ACC at a Glance Strategic Priorities Economy & Sector Update Performance Review
Slide 5: ACC at a Glance
ACC at a Glance
Slide 6: Pioneers in Nation Building
Pioneers in Nation Building Over eighty-five years Setting new benchmarks Driving excellence of contribution towards with Sustainability through innovation India's progress Commitment and digitalisation Part of the global building products conglomerate Holcim Vision Purpose A brand that creates sust
Slide 7: Creating Value through Sustainability, Innovation and Inclusivity
Creating Value through Sustainability, Innovation and Inclusivity Operational Sustainability Social 17 Cement Plants 58% Clinker Factor >1,20,000 Lives Touched 78 Ready Mix Concrete Plants >90% Share of Blended Cement ~6,000 Employees 470 Warehouses 9% Thermal Substitution Rate >56,000 Channel Partn
Slide 8: Awards and Accolades
Awards and Accolades ‘A’ rating for Geocycle - CII 3R ACC Gold Water climate change by award for Shield Cement - Carbon Disclosure ‘Excellence in Solar Impulse Project (CDP) Managing Foundation’s Municipal Solid ‘Efficient Solution’ Waste’ Label DISHA Skill #2 Best Place to 5 Star rating at Developm
Slide 9: Strategic Priorities
Strategic Priorities Accelerating Growth Leading in Sustainability & Innovation Delivering Superior Performance
Slide 10: Accelerating Growth
Fail Accelerating Growth
Slide 11: Accelerating Growth: Strong moves towards rapid expansion
Accelerating Growth Strong moves towards rapid expansion Tikaria Ametha Ametha Tikaria Tikaria Brownfield Ametha Greenfield Salai Banwa Greenfield Grinding Unit Integrated Unit Grinding Unit Commissioned 1.6 MTPA grinding Project implementation on track and Project implementation unit in Feb 2022, (
Slide 12: Product Portfolio Expansion
Accelerating Growth Product Portfolio Expansion Premium Products Green Products Concrete+ Xtra F2R Superfast Gold Water Green Building ECOPact AIRIUM Strong Enables robust Shield Products Concrete with A climate control Higher strength construction in India’s first High strength, significantly concr
Slide 13: Ready Mix Concrete business poised for significant growth
Accelerating Growth Ready Mix Concrete business poised for significant growth Strong Demand Outlook ACC Well Positioned Growth Ambition Green Products • Plants Low penetration • 78 plants across India • Products Strong expansion plans • Faster scaling-up of • Rapid urbanisation • Industry leading pr
Slide 14: Solutions & Products business - Aspiring for leapfrog growth
Accelerating Growth Solutions & Products business - Aspiring for leapfrog growth LeakBlock range of waterproofing solutions Integral waterproofing compound for concrete and plaster with advanced polymer technology Xtra Strong Tile Adhesive • Ready to use adhesive made with a special formula to fix f
Slide 15: Continue to Strengthen Brand Saliency
Accelerating Growth Continue to Strengthen Brand Saliency with BCCI Atoot Bandhan Sustainability Premiumisation partnership LBnW (Leave Houses of Expanding Digital, Green Cement & Behind no Waste) Tomorrow ACCHELP.in Concrete 14
Slide 16: Leading in Sustainability and Innovation
Leading in Sustainability and Innovation
Slide 17: Net Zero Future
Leading in Sustainability and Innovation Net Zero Future First Indian Cement Company to Sign Net Zero Pledge with Science based Targets ACC has become the first and only Indian cement company to sign the Business Ambition for 1.5°C along with Science Based Targets. ACC has committed to reduce • Scop
Slide 18: Industry Recognition
Leading in Sustainability and Innovation Industry Recognition 17
Slide 19: Bubble Barrier Technology – Initiative towards cleaner rivers
Leading in Sustainability and Innovation Bubble Barrier Technology – Initiative towards cleaner rivers Building cleaner India First pilot project on Mantola Canal, Agra City in 2021 Non-invasive technology through bubble curtains generated by perforated tubes placed at the bottom of the water bodies
Slide 20: Green Energy for a Greener Tomorrow
Leading in Sustainability and Innovation Green Energy for a Greener Tomorrow WHRS Projects Renewables Geocycle Initiatives • Jamul, Kymore and Ametha projects • Journey of increasing share of green • Single-use plastics management with on track power on course Leave Behind No Waste, Zero Plastic, •
Slide 21: Structured framework to address social concerns
Leading in Sustainability and Innovation Structured framework to address social concerns Water Governance Sustainable Social & Management Livelihoods Inclusion 8,000+ beneficiaries reached 10,000+ beneficiaries reached out 1,04,000+ beneficiaries, reached out through water harvesting structures by s
Slide 22: Conservation of Natural Resources
Leading in Sustainability and Innovation Conservation of Natural Resources Dḍ Target to achieve the Water Positivity Index of at least 5 times by 2030 Aim to further strengthen our “Positive Impact on Biodiversity” by 2030 Focused Action for biodiversity conservation Freshwater Withdrawal in cement
Slide 23: SD 2030 Plan - Commitment for a Better Tomorrow
Leading in Sustainability and Innovation SD 2030 Plan - Commitment for a Better Tomorrow Our sustainability strategy is led by our Sustainable Development (SD) 2030 Plan and aligned with Holcim Climate Circular Environment Community and energy economy Target 2030 Net specific CO2 Use Water Positive
Slide 24: Delivering Superior Performance
Delivering Superior Performance
Slide 25: People - Pillars of Performance
Delivering Superior Performance People - Pillars of Performance Talent & Diversity & Learning for Performance Succession Inclusion Growth Culture 24
Slide 26: Digitalization – Business processes enabled by digital core
Delivering Superior Performance Digitalization – Business processes enabled by digital core Manufacturing-Plants of Tomorrow Logistics & Sourcing Commercial • Data & Analytics Infrastructure: • Transport Analytics Center • Dealer Connect TIS, PACT, EDGE AI • Fleet Management • Concrete Direct for RM
Slide 27: Project Parvat – Delivering strong positive impact
Delivering Superior Performance Project Parvat – Delivering strong positive impact Manufacturing Excellence Logistics Excellence Commercial Excellence • Improvement in Clinker Factor • Network Optimization - MSA • Driving premiumisation • Higher share of WHRS power • Improvement in Direct dispatch •
Slide 28: Economy & Sector Update
Economy & Sector Update
Slide 29: Global sustainability trends
Global sustainability trends Decarbonisation to rise Customer awareness Digital tools to shape the Design for environment Sustainability as a across industry, transport and activism pushing the evolution of sustainable and supply chain service emerging as a and buildings segments, environment, socia
Slide 30: Macro-Economy Outlook
Macro-Economy Outlook • FY23 GDP growth estimated at 7.8% (CRISIL) o Downside risk to growth due to volatile crude price and inflation o Better Prepared to face external shocks due to forex shield GDP – Forecast o Hinges on infrastructure led Capex by Government o Normal monsoon expected for 4th yea
Slide 31: Sectoral Outlook
Sectoral Outlook Industrial/ Housing Infrastructure Commercial • Focus on PMAY scheme (Urban and Rural) in • Target to construct 25000 km highways & roads in • Implementation of PLI scheme to boost domestic FY23 FY23 demand • Demand expected in real estate • Momentum to continue Urban infra, Bharatm
Slide 32: Performance Review
Performance Review
Slide 33: Performance Highlights – Q1 2022
Performance Highlights – Q1 2022 Profit declined due to significant fuel cost increase despite project ‘Parvat’ delivering strong internal efficiencies 7.71 MT 0.87 Mio m 3 ` 4,322 CRS Cement Sales Volume RMX Sales Volume Net Sales -3% YoY 4% YoY 3% YoY ` 635 CRS 11.1% ` 396 CRS EBITDA Op. EBIT Marg
Slide 34: Financial Results – Consolidated
Financial Results – Consolidated Particulars Quarter Ended 31st March (all amounts in ₹ Crore) Q1’21 Q1’22 Change Net Sales 4,213 4,322 3% EBITDA 860 635 -26% EBITDA Margin 20.4% 14.7% -5.7 pp Op. EBIT 717 481 -33% Op. EBIT Margin 17.0% 11.1% -5.9 pp Profit After Tax 563 396 -30% EPS (₹/share) 30.0
Slide 35: Income Statement – Cement Business
Income Statement – Cement Business Particulars Quarter Ended 31st March (₹/Ton) Q1’21 Q1’22 Change Sales Revenue 4,875 5,112 5% Other Operating Income 98 131 34% Total Operating Income 4,973 5,243 5% Expenses Cost of Materials Consumed 549 627 14% Power & Fuel Cost 999 1,323 32% Freight & Forwarding
Slide 36: Performance Analysis - Sales Volume and Price
Performance Analysis - Sales Volume and Price Muted demand environment led to volume degrowth Cement Volume Net Selling Price (Million tons) (` / ton) -3% 5% 5,112 4,875 8.0 7.7 Q1 2021 Q1 2022 Q1 2021 Q1 2022 35
Slide 37: Performance Analysis – Cost of Materials & Fuel cost
Performance Analysis – Cost of Materials & Fuel cost Cost adversely impacted by steep rise in fuel price, partially mitigated by project ‘Parvat’ efficiencies Raw Material Cost Power & Fuel Cost (` / ton) (` / ton) 14% 32% 627 549 1,323 999 Q1 2021 Q1 2022 Q1 2021 Q1 2022 36
Slide 38: Performance Analysis – Costs
Performance Analysis – Costs Project ‘Parvat’ helped deliver 1% lower per ton Freight & Forwarding cost despite fuel inflation Freight & Forwarding Cost Employee Cost Other Expenses (` / ton) (` / ton) (` / ton) -1% -6% 4% 1,308 706 733 1,293 238 224 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 3
Slide 39: Registered Office
Registered Office Cement House, 121, Maharshi Karve Road, Mumbai – 400 020 acclimited.com in acc-limited ACCInd ACCCementOfficial