Slide 1: Ambuja Cement filing letter to stock exchanges
Ambuja Cement 19th July, 2022 Bombay Stock Exchange Limited National Stock Exchange of India Ltd., Phiroz Jeejeebhoy Towers, Plot No.C/1 'G' Block Dalal Street, Mumbai - 400 023 Sandra - Kurla Complex Scrip Code: 500425 Sandra East, Mumbai 400 051 Scrip Code: AMBUJACEM Deutsche Bank Societe de la Bo
Slide 2: Investor Presentation Q2CY22
INVESTOR PRESENTATION Q2CY22 © Ambuja Cements Stock Ltd. 2022code-BSE:500425 | NSE:AMBUJACEM | Reuters: 1 ABUJ.NS| Bloomberg: ACEM
Slide 3: Index
Index 03 06 Company Economy and Overview Sector Update 09 25 Strategic Performance Priorities Review
Slide 4: Company Overview
COMPANY OVERVIEW ee
Slide 5: Ambuja Cement at a Glance
Ambuja Cement at a Glance 31.45 MTPA 16% 89% Vision Cement Capacity Share of premium products* Share of To be the most blended cement sustainable and competitive company in our industry 62% 8x 6% Clinker Factor Water positive Thermal Substitution rate Mission To create value for all ▪ Delighted Cust
Slide 6: Awards and Recognition
Awards and Recognition ` ` ` #ChangeTheStory campaign wins Gold #ChangeTheStory campaign awarded Ambuja Kawach awarded at Customer in Environmental category at IMAGEXX Bronze at Abby Awards under green FEST Show 2022. “Best use of Innovation Award 2022 category to Enhance Customer Experience” Ambuja
Slide 7: Economy and Sector Update
ECONOMY AND SECTOR UPDATE
Slide 8: Economy Highlights
Economy Highlights ▪ The recovery in domestic economic activity Real GDP growth (%) is gathering strength (RBI MPC June 2022 meeting note) 8.7 ▪ Rural consumption should benefit from 7.3 6.8 6.5 likely normal monsoon ▪ Investment activity is expected to be 3.7 supported by improving capacity utilisa
Slide 9: Favourable Sectoral Growth Drivers
Favourable Sectoral Growth Drivers Housing Infrastructure Industrial / Commercial ● Focus on PMAY (Urban & Rural) scheme to ● Road segment to be a strong demand ● Implementation of PLI scheme to generate continue with 3.9 Mn Urban and 5.4 Mn Rural driver strong capex ● Momentum to continue in Urban
Slide 10: Strategic Priorities Driving Sustainable Growth
Strategic Priorities Driving Sustainable Growth Read more Read more Read more Accelerating GROWTH 10 Delivering SUPERIOR PERFORMANCE 13 Leading in SUSTAINABILITY 18
Slide 11: Accelerating Growth
ACCELERATING GROWTH
Slide 12: Accelerating Our Growth Journey
Accelerating Our Growth Journey ▪ Ropar, Punjab - Brownfield Integrated cement plants expansion of 1.5 MTPA cement 1. Ambujanagar, Gujarat grinding 2. Darlaghat, Himachal Pradesh ▪ Bhatapara, Chhattisgarh - 3. Maratha Cement Works, Maharashtra integrated facility with: Ropar Darlaghat 4. Rabriyawas,
Slide 13: Expanding Solutions and Products
Expanding Solutions and Products Ambuja Cool Walls: The most sustainable, environment friendly National footprint wall solutions ▪ Less energy requirement - Low carbon emission ▪ Pond fly ash - 70% raw material ▪ Zero soil erosion Pinjore Nalagarh ▪ Low thermal conductivity leading to heat reduction
Slide 14: Delivering Superior Performance
DELIVERING SUPERIOR PERFORMANCE
Slide 15: Enhancing Efficiency
Enhancing Efficiency Green Power Alternate Fuel and Raw Materials Operational Excellence ▪ Waste Heat Recovery (WHRS) projects at ▪ Usage of waste generated though industrial, ▪ Reduction in thermal & electrical energy Marwar, Darlaghat and Bhatapara plants on municipal and biomass as fuel in the ki
Slide 16: Scaling Up Innovation and Digitalisation
Scaling Up Innovation and Digitalisation ▪ Video Analytics at packing plants ▪ Dealer Connect ▪ Mines of Tomorrow ▪ Loyalty Program Management ▪ Predictive Maintenance ▪ Sales Force Automation ▪ Plant Solutions - Intelligent Asset ▪ Revenue & Margin Management Manufacturing Sales and Management ▪ Un
Slide 17: Branding & Promotions
Branding & Promotions “Deewar 2” Ad Campaign (TV & Digital) Initiatives to support Channel Partners ▪ Integrated Media Campaign on leading TV ▪ Google My Business - Industry first News, Sports Channels & Digital Platforms hyperlocal initiative (YT & OTT) ▪ Over 200+ locations live in Rajasthan & ▪ T
Slide 18: Strengthening Ties with IHBs and Contractors
Strengthening Ties with IHBs and Contractors Ambuja Signature Club launched for deepening Organised National Webinar on - Ultra high Ambuja IHB Clinic launched in Gujarat, engaging ties with architects & engineers through family performance concrete: Future of construction IHBs and contractors engag
Slide 19: Leading in Sustainability
LEADING IN SUSTAINABILITY
Slide 20: Leading in Sustainability
Leading in Sustainability Optimising Resource Climate and Energy Circular Economy Water Utilisation ▪ Continuously increasing the ▪ Installation of Waste Heat ▪ Continuous improvement in ▪ Higher use of recycled water usage of flaysh and share of Recovery Systems (WHRS) Thermal Substitution Rate and
Slide 21: Geocycle Initiatives
Geocycle Initiatives Usage of Spent Pot Lining (SPL) at Bhatapara ▪ Spent Pot Lining (SPL) is waste material generated by Aluminum industry ▪ Geocycle for the very first time in India has achieved co-processing of a critical waste stream like SPL, on such a large scale ▪ It is one of the major sourc
Slide 22: Corporate Sustainability Campaign
Corporate Sustainability Campaign #CHANGETHESTORY MOMENT DIGITAL BRAND PROPERTIES BUILDING THOUGHT Yielding engagement through User Generated Digital brand properties like Changemakers LEADERSHIP content Establishing thought leadership through exclusive Green Blog Series MOMENT MARKETING INTERNAL CO
Slide 23: Sustainability Targets and Achievements
Sustainability Targets and Achievements Sustainable Development Plan 2030 Climate and Circular Water and People and Energy Economy Nature Communities CO2 Reduced WASTE WATER Saved VALUE Lead metrics (kg CO2/ton of Re-used (Fresh water consumption: Shared cementitious material) (Million tons) Litre/t
Slide 24: Community Outreach through Ambuja Cement Foundation (ACF)
Community Outreach through Ambuja Cement Foundation (ACF) New Initiatives undertaken ▪ Sub-Centre of SEDI Surat inaugurated ▪ SEDI Bilaspur, (Chhattisgarh) begins operations ▪ New Ambuja Health & Wellness Centre in Deorani, (Chhattisgarh) New Partnerships ▪ NABARD: New Skill Development Project in S
Slide 25: Recognised for our Community Development Efforts
Recognised for our Community Development Efforts Awards Events ▪ Appreciation of SEDI Agoocha and Jaitaran (Rajasthan) ▪ On the occasion of World Environment Day, a virtual at district and sub-district level event on Water Stewardship & Sustainable ▪ KVK Mansa (Punjab) awarded Best Work in Water Env
Slide 26: Performance Review
PERFORMANCE REVIEW
Slide 27: Performance Highlights – Q2CY 2022 (Standalone)
Performance Highlights – Q2CY 2022 (Standalone) 7.39 mn tons INR 3,958 cr INR 685 cr Sales Volume* (15% YoY) Net Sales (18% YoY) Op. EBITDA (-29% YoY) INR 531 cr INR 1,138 cr INR 1,048 cr Op. EBIT (-36% YoY) PBT (18% YoY) Profit After Tax (45% YoY) cr: crore *Cement and Clinker 26
Slide 28: Performance Highlights – H1CY 2022 (Standalone)
Performance Highlights – H1CY 2022 (Standalone) 14.89 mn tons INR 7,813 cr INR 1,475 cr Sales Volume* (9% YoY) Net Sales (13% YoY) Op. EBITDA (-24% YoY) INR 1,170 cr INR 1,792 cr INR 1,543 cr Op. EBIT (-30% YoY) PBT (-3% YoY) Profit After Tax (11% YoY) cr: crore *Cement and Clinker 27
Slide 29: Financial Results – Standalone
Financial Results – Standalone Quarter Ended June ‘22 Half Year ended June ‘22 (All amounts in ₹ Crore) 2021 2022 Change % 2021 2022 Change % Net Sales 3,342 3,958 18.4% 6,921 7,813 12.9% EBITDA 960 685 -28.7% 1,936 1,475 -23.8% EBITDA (%) 28.7% 17.3% -11.4 pp 28.0% 18.9% -9.1 pp Operating EBIT 829
Slide 30: Performance Analysis: Sales Volume & Realisation
Performance Analysis Sales Volume & Realisation Sales volume – Cement + Clinker Realisation (million tons) (₹/ton) (Q2) (H1) 14.89 (Q2) (H1) 5,357 5,249 5,203 13.66 5,067 7.39 6.42 Q2CY21 Q2CY22 H12021 H12022 Q2CY21 Q2CY22 H12021 H12022 ▪ Swift ramp up of recently commissioned Marwar plant ▪ In line
Slide 31: Performance Analysis: EBITDA
Performance Analysis EBITDA EBITDA EBITDA (₹/crore) (₹/ton) (Q2) (H1) (Q2) (H1) 1,936 1,494 1,418 960 1,475 991 926 685 Q2CY21 Q2CY22 H12021 H12022 Q2CY21 Q2CY22 H12021 H12022 ▪ EBITDA impacted by significant Increase in fuel cost, partly mitigated by ▪ Impacted by significant Increase in fuel cost,
Slide 32: Performance Analysis: Cost Elements
Performance Analysis Cost Elements Power and Fuel Cost Freight and Forwarding Cost Raw Material Cost (₹/ton) (₹/ton) (₹/ton) (Q2) 1,786 (H1) (Q2) (H1) (Q2) (H1) 1,579 1,228 1,225 1,222 1,227 1,191 1,115 443 432 422 419 Q2CY21 Q2CY22 H12021 H12022 Q2CY21 Q2CY22 H12021 H12022 Q2CY21 Q2CY22 H12021 H120
Slide 33: Performance Analysis: Cost Elements
Performance Analysis Cost Elements Other Expenses Total Cost (₹/ton) (₹/ton) (Q2) (H1) (Q2) 4,478 (H1) 4,329 3,701 810 775 773 742 3,755 Q2CY21 Q2CY22 H12021 H12022 Q2CY21 Q2CY22 H12020 H12021 ▪ Other Expense per ton increased marginally largely in line with current ▪ Total operating cost per ton in
Slide 34: Financial Results – Consolidated
Financial Results – Consolidated Quarter Ended June H1 ended June (All amounts in ₹ Crore) 2021 2022 Change % 2021 2022 Change % Net Sales 6,899 7,943 15.1% 14,516 15,697 8.1% EBITDA 1,827 1,115 -39.0% 3,666 2,539 -30.7% EBITDA (%) 26.5% 14.0% -12.5pp 25.3% 16.2% -9.1pp Operating EBIT 1,551 796 -48.
Slide 35: Thank you
Thank you REGISTERED OFFICE CORPORATE OFFICE PO Ambujanagar Elegant Business Park Taluka Kodinar MIDC Cross Road B Gir Somnath district Off Andheri -Kurla Road Gujarat – 362 715 Andheri (E) Mumbai – 400 059