Slide 1: Regulation 30 Investor Presentation Cover Letter
Secretarial Division ACC Limited Registered Office No. ACC/ Sec./SE/22/054 Cement House 121, Maharshi Karve Road July 14, 2022 Mumbai - 400 020, India CIN: L26940MH1936PLC002515 National Stock Exchange BSE Limited of India Limited Corporate Relations Phone: +91 22 4159 3321 Fax: +91 22 6631 7458 Exc
Slide 2: Investor Presentation Q2 2022
July 2022 INVESTOR PRESENTATION STOCK CODE BSE: 500410 | NSE: ACC | Reuters: ACC.NS | Bloomberg: ACC:IN Q2 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 >1,60,000 Lives Touched 82 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
Fst Accelerating Growth
Slide 11: Accelerating Growth: Strong moves towards rapid expansion
Accelerating Growth Strong moves towards rapid expansion Tikaria Ametha Salai Banwa 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, (exe
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 Climate Control Higher strength construction in India’s first High strength, significantly Concret
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 • 82 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 57,000+ beneficiaries reached 42,000+ beneficiaries reached out 1,82,000+ beneficiaries, reached out through water harvesting structures by
Slide 22: Conservation of Natural Resources
Leading in Sustainability and Innovation Conservation of Natural Resources 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 • I
Slide 23: 6% Reduction in specific CO2 emission
Leading in Sustainability and Innovation 6% Reduction in specific CO2 emission Our sustainability strategy is led by our Sustainable Development (SD) 2030 Plan and aligned with Holcim Climate Circular Environment Community and energy economy Net specific CO2 Use Water Positive Index Target 2030 emis
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: Digitalisation – Business processes enabled by digital core
Delivering Superior Performance Digitalisation – 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 – Leveraging efficiencies to mitigate cost headwinds
Delivering Superior Performance Project Parvat –Leveraging efficiencies to mitigate cost headwinds Manufacturing Excellence Logistics Excellence Commercial Excellence • Improvement in Clinker Factor • Network Optimisation - MSA • Driving premiumisation • Higher share of WHRS power • Improvement in D
Slide 28: Economy & Sector Update
Economy & Sector Update | ae ene’
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 7.2% (CRISIL) GDP – Forecast (%, y-o-y) o Downside risk to growth due to volatile crude price, inflation and geopolitical risk o Traction from private sector led by PLI scheme & improved capacity utilisation o Hinges on infrastructure led Capex by
Slide 31: Sectoral Outlook
Sectoral Outlook Industrial/ Housing Infrastructure Commercial • Focus on PMAY scheme (Urban and Rural) • 18,000 km highway construction @50 km/day • Implementation of PLI scheme to boost domestic demand • Demand expected in real estate • 47,000 kms rural roads targeted ○ Over 185-195 million sq. ft
Slide 32: Performance Review
= Performance | Review
Slide 33: Performance Highlights – Q2 2022
Performance Highlights – Q2 2022 7.56 MT 0.83 Mio m 3 ` 4,393 CRS Cement Sales Volume RMX Sales Volume Net Sales 10.5% YoY 44% YoY 15% YoY ` 426 CRS 9.7% ` 227 CRS EBITDA Op. EBIT Margin Profit After Tax -51% YoY -13 pp YoY -60% YoY 32
Slide 34: Financial Results – Consolidated
Financial Results – Consolidated Particulars ( ₹ Crore) Q2’21 Q2’22 Change % H1 21 H1 22 Change % Net Sales 3,810 4,393 15% 8,024 8,715 9% EBITDA 869 426 -51% 1,730 1,061 -39% EBITDA Margin (%) 22.8 9.7 -13.1 pp 21.6 12.2 -9.4 pp Op. EBIT 723 262 -64% 1,440 742 -48% Op. EBIT Margin (%) 19.0 6.0 -13.
Slide 35: Income Statement – Cement Business
Income Statement – Cement Business Particulars (₹/Ton) Q2 21 Q2 22 Change per ton H1 21 H1 22 Change per ton Sales Revenue 5,153 5,337 4% 5,005 5,223 4% Other Operating Income 106 97 -8% 101 114 13% Total Operating Income 5,259 5,434 3% 5,107 5,337 5% Expenses Cost of Materials Consumed 543 662 22%
Slide 36: Performance Analysis - Sales Volume
Performance Analysis - Sales Volume Strong volume growth vs. previous year Cement Volume (Q2) Cement Volume (H1) (Million tons) (Million tons) 10.5% 3% 15.26 14.81 7.56 6.84 Q2 2021 Q2 2022 H1 2021 H1 2022 35
Slide 37: Performance Analysis – Net Selling Price
Performance Analysis – Net Selling Price Price increase to marginally offset cost inflation Net Selling Price (Q2) Net Selling Price (H1) (` / ton) (` / ton) 4% 4% 5,337 5,223 5,153 5,005 Q2 2021 Q2 2022 H1 2021 H1 2022 36
Slide 38: Performance Analysis – Raw Material Cost
Performance Analysis – Raw Material Cost Raw material cost impacted by inflationary headwinds Raw Material Cost (Q2) Raw Material Cost (H1) (` / ton) (` / ton) 22% 18% 662 644 543 546 Q2 2021 Q2 2022 H1 2021 H1 2022 37
Slide 39: Performance Analysis – Power & Fuel Cost
Performance Analysis – Power & Fuel Cost Soaring global energy prices led to significant cost increase Power & Fuel Cost (Q2) Power & Fuel Cost (H1) (` / ton) (` / ton) 44% 40% 1,708 1,514 1,183 1,085 Q2 2021 Q2 2022 H1 2021 H1 2022 38
Slide 40: Performance Analysis – Freight & Forwarding Cost
Performance Analysis – Freight & Forwarding Cost ‘Parvat’ actions partially mitigated diesel inflation impact Freight & Forwarding Cost (Q2) Freight & Forwarding Cost (H1) (` / ton) (` / ton) 6% 2% 1,359 1,326 1,294 1,278 Q2 2021 Q2 2022 H1 2021 H1 2022 39
Slide 41: Performance Analysis – Employee Cost
Performance Analysis – Employee Cost Employee Cost (Q2) Employee Cost (H1) (` / ton) (` / ton) -7% -6% 274 256 255 240 H2 2021 H2 2022 H1 2021 H1 2022 40
Slide 42: Performance Analysis – Other Expenses
Performance Analysis – Other Expenses Continued focus on fixed costs optimisation Other Expenses (Q2) Other Expenses (H1) (` / ton) (` / ton) -2% 1% 753 735 728 734 Q2 2021 Q2 2022 H1 2021 H1 2022 41
Slide 43: Registered Office
Registered Office Cement House, 121, Maharshi Karve Road, Mumbai – 400 020 acclimited.com in acc-limited ACCInd ACCCementOfficial