Ambuja Cements Limited · NSE:AMBUJACEM

Ambuja Cements — Q3 2021 Earnings Presentation

32 slides from Ambuja Cements's earnings presentation, Oct 26, 2021

  1. Slide 1: Cover letter to stock exchanges

    Ambuja Cement ACL:SEC: 261h October, 2021 BSE Limited, National Stock Exchange of India Ltd., Ph iroz Jeejeebhoy Towers, Plot No.C/1 'G ' Block Dalal Street, Mumbai - 400 023 Bandra - Kurla Com plex corp .relations@bseindia.com Ba ndra East, Mumbai 400 051 cmlist@nse .co.in Deutsche Bank Societe de

  2. Slide 2: Investor Presentation July-September 2021

    PTEMBER 2021 Presentation JULY-SE Ambuja Cement Investor

  3. Slide 3: Safe-harbour statement

    Safe-harbour statement This presentation may contain certain forward-looking statements relating to Ambuja Cements Ltd. (“Ambuja”, or “Company”) and its future business, development and economic performance. These statements include descriptions regarding the intent, belief or current expectations o

  4. Slide 4: Index

    Index Company Overview Industry and Economy Strategic Priorities Performance Highlights Slide 4-7 Slide 8-10 S l i de 11 - 2 1 Slide 22-30 V

  5. Slide 5: Company Overview

    Ambuja Cement Company Overview

  6. Slide 6: Science Based Targets aligned with Net Zero Emission ambition

    Science Based Targets aligned with Net Zero Emission ambition Climate and Energy 20 % Scope 1 GHG emission reduction per ton of cementitious material • Committed to reduce scope 1 and scope 2 GHG Signed the emissions by 21% per ton of cementitious materials 43 % by 2030 from a 2020 base year Busines

  7. Slide 7: Viraat Strength

    Viraat Strength Our Vision Our Mission To be the most sustainable and To create value for all competitive company in our industry  Delighted Customers  Enlightened Partners  Loyal Shareholders  Inspired Employees  Energized Society  Healthy Environment Operational 31.45 MTPA 291 MW 5 Installed

  8. Slide 8: Performance drivers

    Performance drivers  Product premiumisation resulting in better  Operational efficiencies through ICAN program  Marwar production commenced from pricing and improved margins aiding in mitigating cost headwinds September 2021  MSA (Master Supply Agreement) leading to  Flyash dryers and Waste Hea

  9. Slide 9: Economy and Industry

    Economy and Industry

  10. Slide 10: Economy steadying as Covid-19 abates

    Economy steadying as Covid-19 abates (GDP Growth YoY) 15  Sequential improvement across all sectors, with subsiding impact 9.5 of Covid-19 and improvement in the vaccination rate 10 4 5  RBI retained the GDP growth rate at 9.5% for April 2021-March 2.8 -3.4 5.9 0 2022 and 7.8% for April 2022-March

  11. Slide 11: Sectoral update

    Sectoral update Housing Infrastructure Industrial / Commercial  Government's spending on affordable  Government thrust on infrastructure with Industrial construction demand to witness revival on housing schemes such as the Pradhan projects in National Infrastructure Pipeline the back of : Mantri A

  12. Slide 12: Strategic Priorities

    Ambuja Cement Strategic Priorities

  13. Slide 13: Enhancing capacity

    Enhancing 2 capacity Marwar, Rajasthan  Commercial Production commenced from September 2021  Enhances Ambuja’s clinker capacity by 3.0 MTPA and cement sales potential by 5.0 MTPA Project key highlights  Commissioned a dedicated water treatment plant with ~35 km long pipeline  Commissioned ~3.5 k

  14. Slide 14: Stepping up capabilities

    Stepping 2 up capabilities Gare Palma, Coal Block  Production started from the underground mine, providing fuel linkage to Ambuja’s Bhatapara plant in the East  Conveyor belt operational  Extraction is being ramped up Rabriyawas Plant (Rajasthan), Railway Siding  Railway siding made operational

  15. Slide 15: Sharpening competitive edge

    Sharpening competitive edge Operational Efficiency Special / Value Added Products Competency Augmentation  Increase in home market sales and reduction  Ambuja’s Special / Value Added cement are  Waste Heat Recovery of ~55 MW under widely accepted for its distinctive benefits implementation at var

  16. Slide 16: Digitalisation & Innovation

    Digitalisation 2 & Innovation Manufacturing Logistics & Commercial Innovation & New Solutions  Mines of Tomorrow (MOT) – Concept of  Continuous improvement through  New & innovative products and solutions connected mines being developed Transport Analytics Centre (TAC) to with sustainability focu

  17. Slide 17: Steadfast progress towards Sustainable Development

    Steadfast progress towards Sustainable Development SUSTAINABILITY PILLARS Climate & Energy Circular Economy Environment Community LEAD METRICS CO2 WATER WASTE VALUE Reduced Saved re-used Shared [kg CO2 / ton of cementitious [fresh water consumption - litre / [Mn tons] [Million new beneficiaries} mat

  18. Slide 18: Geocycle driving commitment to circular economy

    Geocycle 2 driving commitment to circular economy Circular Economy operates as the green arm to Ambuja Geocycle Bubble Barrier Co-processing the waste in cement kilns Completely decomposes Recovers energy and Leaves no residue Leads to conservation of waste through high recycles mineral value of nat

  19. Slide 19: Water and Biodiversity conservation

    Water 2 and Biodiversity conservation Environment  Biodiversity Assessment, through Biodiversity Indicator and Reporting System (BIRS) tool, for all its quarries  Implementing Biodiversity Management Plans (BMP) or Wildlife Conservation Plan for enhancing Biodiversity and protecting wildlife  Gre

  20. Slide 20: Community outreach through ACF

    Community outreach through ACF Community Water Education Skill Development Health and Nutrition Women Agriculture and Livelihood  2,543 students trained by SEDI and 1,668 students placed for work across locations  SEDI’s celebrated World Youth Skills Day with a opening of a new centre in Udaipur.

  21. Slide 21: Response to pandemic through ACF

    Response to pandemic through ACF Community  Launched COVISainik’s - a training program for community COVID-19 awareness in Bathinda on Mobilizing Physically Challenged to E-Rickshaws vaccination camps members as health volunteers; to offer a cadre of volunteers to the local administration and healt

  22. Slide 22: Appreciated across forums

    Appreciated across forums Community ACF Dadri won the Rotary Club ACF Ambujanagar, Ropar, Sankrail, Surat and Bhatapara were appreciated by Award on water, hygiene & sanitation government dignitaries for its work during the second COVID-19 wave ACF – Ambuja Cement Foundation Corporate Social Respons

  23. Slide 23: Performance Highlights

    Ambuja Cement Performance Highlights sai ™ ~ ~~. —_

  24. Slide 24: Performance highlights – Q3 2021 (Standalone)

    Performance highlights – Q3 2021 (Standalone) Sales Volume Net Sales Op. EBITDA 6.2 mn tons INR 3,193 crore INR 703 crore (9% YoY) (14% YoY) (3% YoY) Op. EBIT PBT Profit After Tax INR 577 crore INR 592 crore INR 441 crore (5% YoY) (1% YoY) (0.2% YoY) Q3- July to September, Sales volumes – Cement + C

  25. Slide 25: Performance highlights – 9M 2021 (Standalone)

    Performance highlights – 9M 2021 (Standalone) Sales Volume Net Sales Op. EBITDA 19.9 mn tons INR 10,114 crore INR 2,639 crore (27% YoY) (31% YoY) (40% YoY) Op. EBIT PBT Profit After Tax INR 2,258 crore INR 2,445 crore INR 1,829 crore (52% YoY) (39% YoY) (41% YoY) 9M – January to September, Sales vol

  26. Slide 26: Financial results – Standalone

    Financial results – Standalone Quarter ended 30th September 2021 Nine months ended 30th September 2021 ₹ Crore Q3 2020 Q3 2021 Change % 9M 2020 9M 2021 Change % Net Sales 2,802 3,193 14.0 7,707 10,114 31.2 Total operating costs 2,172 2,534 16.7 5,978 7,591 27.0 EBITDA 681 703 3.2 1,879 2,639 40.4 EB

  27. Slide 27: Performance analysis – Sales Volume and Price

    Performance analysis – Sales Volume and Price Sales volume – Cement + Clinker Realisations (million tons) (₹/ton) (Q3) (9M) (Q3) (9M) 19.9 5,154 5,094 15.6 6.2 4,939 4,934 5.7 Q32020 Q32021 9M2020 9M2021 Q32020 Q32021 9M2020 9M2021  Sales volumes grew by 9% for the quarter and 27% for 9  Realizati

  28. Slide 28: Performance analysis – Net Sales and EBITDA

    Performance analysis – Net Sales and EBITDA Net Sales EBITDA (₹ Crore) (₹ Crore) (Q3) (9M) 10,114 (Q3) (9M) 2,639 7,707 1,879 3,193 703 681 2,802 Q32020 Q32021 9M2020 9M2021 Q32020 Q32021 9M2020 9M2021  Net Sales grew by 14% for the quarter and 31% for 9  EBITDA grew by 3% for the quarter and 40%

  29. Slide 29: Performance analysis – Costs

    Performance analysis – Costs Power and fuel Cost Raw material Cost (₹/ton) (₹/ton) (Q3) (9M) (Q3) (9M) 1,245 424 1,156 406 390 1,013 381 993 Q32020 Q32021 9M2020 9M2021 Q32020 Q32021 9M2020 9M2021  Power and fuel cost per ton increased by 23% for the  Raw material cost per ton increased by 6% for

  30. Slide 30: Performance analysis – Costs

    Performance analysis – Costs Freight and forwarding Cost Other expenses (₹/ton) (₹/ton) (Q3) (9M) (Q3) (9M) 1,305 1,284 1,271 853 781 1,241 777 775 Q32020 Q32021 9M2020 9M2021 Q32020 Q32021 9M2020 9M2021  Freight cost per ton declined by 2% for the quarter and 9  Other expenses per ton increased b

  31. Slide 31: Financial results – Consolidated

    Financial results – Consolidated Quarter ended 30th September 2021 Nine months ended 30th September 2021 ₹ Crore Q3 2020 Q3 2021 Change % 9M 2020 9M 2021 Change % Net Sales 6,071 6,529 7.5 16,744 21,045 25.7 EBITDA 1,349 1,416 5.0 3,663 5,082 38.7 EBITDA Margin (%) 22.2% 21.7% -0.5pp 21.9% 24.1% 2.2

  32. Slide 32: Corporate and registered office

    CORPORATE OFFICE REGISTERED OFFICE Elegant Business Park PO Ambujanagar MIDC Cross Road B Taluka Kodinar Off Andheri-Kurla Road Gir Somnath district Andheri (E) Gujarat – 362 715 Mumbai – 400 059

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