Slide 1: Regulation 30 filing cover letter
Secretarial Division ACC Limited Registered Office Cement House 121, Maharshi Karve Road Mumbai - 400 020, India No. ACC/ Sec./SE/22/010 February 09, 2022 CIN: L26940MH1936PLC002515 Phone: +91 22 41593321 National Stock Exchange BSE Limited Fax: +91 22 6631 7458 www.acclimited.com of India Limited C
Slide 2: Investor Presentation Q4 & Year 2021
February 2022 INVESTOR PRESENTATION STOCK CODE BSE: 500410 | NSE: ACC | Reuters: ACC.NS | Bloomberg: ACC:IN Q4 & Year 2021
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 – 34.5 MTPA
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 >5,00,000 Lives Touched 78 Ready Mix Concrete Plants >90% Share of Blended Cement ~6,000 Employees 470 Warehouses 7% 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 5 Star rating at Among the Development Nat
Slide 9: Strategic Priorities
Strategic Priorities Accelerating Growth Leading in Sustainability & Innovation Delivering Superior Performance
Slide 10: Accelerating Growth
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Slide 11: Accelerating Growth: Capacity Expansion
Accelerating Growth Capacity Expansion Sindri Ametha Tikaria Sindri Brownfield Ametha Greenfield Tikaria Brownfield Salai Banwa Greenfield Grinding Unit Integrated Unit Grinding Unit Grinding Unit Commissioned 1.4 MTPA Project implementation Project implementation Project implementation grinding uni
Slide 12: Accelerating Growth: Product Portfolio Expansion
Accelerating Growth Product Portfolio Expansion Premium Products Green Products Concrete+ Xtra F2R Superfast Gold Water Green Building ECOPact Strong Enables robust Shield Products Concrete with at least Higher strength construction in India’s first High strength cement 30% CO2 reduction quick time
Slide 13: Accelerating Growth: Ready Mix Concrete
Accelerating Growth Ready Mix Concrete Strong Demand Outlook ACC Well Positioned Growth Ambition Green Products • Plants Low penetration • 78 plants across India • Products Strong expansion plans • Further scale-up of • Rapid urbanisation • Industry leading products • Portfolio of valued added ECOPa
Slide 14: Accelerating Growth: Solutions & Products
Accelerating Growth Solutions & Products 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 floor tiles • A polymer modified white ce
Slide 15: Accelerating Growth: 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 acclimited.com | 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 acclimited.com | 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: Leave Behind No Waste #LBnW – for a Cleaner Tomorrow
Leading in Sustainability and Innovation Leave Behind No Waste #LBnW – for a Cleaner Tomorrow Brand campaign launched in India vs New Zealand 2 Tons per day test series Single Use plastic disposed during the India vs New Zealand test Collection and responsible disposition of plastic waste through co
Slide 21: Green Energy for a Greener Tomorrow
Leading in Sustainability and Innovation Green Energy for a Greener Tomorrow WHRS Projects Renewables Geocycle Initiatives • Journey of increasing share of • 82 MW of Solar energy capacity • Single-use plastics management green power remains on course • 19 MW of wind power with Leave Behind No Waste
Slide 22: Community Development
Leading in Sustainability and Innovation Community Development Sustainable Quality of WASH (Water, Sanitation, Livelihood Education Health & Hygiene) 40,000+ beneficiaries, 25,000+ beneficiaries, digital 450,000+ beneficiaries, connected through women literacy, online positively impacted through fed
Slide 23: Conservation of Natural Resources
Leading in Sustainability and Innovation Conservation of Natural Resources D 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 24: 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 Net specific CO2 Use Water Positive Index Target
Slide 25: Delivering Superior Performance
Delivering Superior Performance
Slide 26: People - Pillars of Performance
Delivering Superior Performance People - Pillars of Performance Talent & Diversity & Learning for Performance Succession Inclusion Growth Culture acclimited.com | 25
Slide 27: Digitalization – Enabler of Performance
Delivering Superior Performance Digitalization – Enabler of Performance Manufacturing - Plants of Logistics & Sourcing Commercial Tomorrow • Data & Analytics Infrastructure: • Transport Analytics Center • Dealer Connect TIS, PACT, EDGE AI • Fleet Management • Concrete Direct for RMX • Advanced Data
Slide 28: Project Parvat – Delivering Cost Efficiency
Delivering Superior Performance Project Parvat – Delivering Cost Efficiency Manufacturing Excellence Logistics Excellence Commercial Excellence • Improvement in Clinker Factor • Improvement in Direct dispatch • Revenue & margin management • Energy efficiency improvement • Warehouse footprint optimis
Slide 29: Delivering Superior Performance – Year 2021
Delivering Superior Performance – Year 2021 Another year of strong performance 28.9 MT 2.81 Mio m 3 ` 15,814 CRS Cement Sales Volume RMX Sales Volume Net Sales 13% YoY 24% YoY 17% YoY ` 2,998 CRS 15.2 % ` 1,863 CRS EBITDA Op. EBIT Margin Profit After Tax 27% YoY 250 bps YoY 30% YoY acclimited.com |
Slide 30: Economy & Sector Update
Economy & Sector Update
Slide 31: Global sustainability trends
Global sustainability trends Decarbonisation to rise Customer awareness and Digital tools to shape the Design for environment Sustainability as a across industry, transport activism pushing the evolution of sustainable and supply chain service emerging as a and buildings segments, environment, socia
Slide 32: Macro-Economy Outlook
Macro-Economy Outlook • GDP growth estimated at 9.2% for fiscal 2022 (Apr’21 to Mar’22) 9.2 7.8 • In fiscal 2023, growth to be more broad-based with rapid 6.5 6.0 5.7 progress in vaccination 4.2 3.7 3.7 3.4 o Real GDP growth in fiscal 2023 estimated at 7.8% (CRISIL) 2.8 o Government investment to co
Slide 33: Sectoral Outlook
Sectoral Outlook Industrial/ Housing Infrastructure Commercial • Continuation of budget allocation towards PMAY • Increase of 11% in budgetary support for core • Demand for warehousing space to increase scheme (Urban and Rural) in FY23 infrastructure sharply on the back of e-commerce boom • Modernis
Slide 34: Performance Review
Performance Review
Slide 35: Performance Highlights – Q4 2021
Performance Highlights – Q4 2021 Profitability impacted due to all time high fuel cost 7.49 MT 0.73 Mio m 3 ` 4,137 CRS Cement Sales Volume RMX Sales Volume Net Sales -3% YoY -1% YoY 2% YoY ` 556 CRS 9.6% ` 281 CRS EBITDA Op. EBIT Margin Profit After Tax -3% YoY -60 bps YoY -40% YoY acclimited.com |
Slide 36: Performance Highlights – Year 2021
Performance Highlights – Year 2021 Another year of strong performance 28.9 MT 2.81 Mio m 3 ` 15,814 CRS Cement Sales Volume RMX Sales Volume Net Sales 13% YoY 24% YoY 17% YoY ` 2,998 CRS 15.2% ` 1,863 CRS EBITDA Op. EBIT Margin Profit After Tax 27% YoY 250 bps YoY 30% YoY acclimited.com | 35
Slide 37: Financial Results – Consolidated
Financial Results – Consolidated Particulars Q4 Year ൠ&URUH 2020 2021 Change 2020 2021 Change Net Sales 4,066 4,137 2% 13,487 15,814 17% EBITDA# 572 556 -3% 2,355 2,998 27% EBITDA Margin (%) 14.1 13.4 -70 bps 17.5 19.0 150 bps Op. EBIT # 414 396 -4% 1,716 2,397 40% Op. EBIT Margin (%) 10.2 9.6 -60 b
Slide 38: Income Statement – Cement Business
Income Statement – Cement Business Particulars Q4 Year ( / Ton) 2020 2021 Change 2020 2021 Change Sales Revenue 4,881 5,033 152 4,834 5,025 191 Other Operating Income 99 113 14 112 113 1 Total Operating Income 4,981 5,146 166 4,946 5,138 192 Cost of Materials Consumed 492 457 -35 462 510 48 Power &
Slide 39: Performance Analysis - Sales Volume
Performance Analysis - Sales Volume Full year growth of 13% despite muted Q4 Cement Volume (Q4) Cement Volume (Annual) (Million tons) (Million tons) 13% 28.9 -3% 25.5 7.7 7.5 Q4 2020 Q4 2021 2020 2021 acclimited.com | 38
Slide 40: Performance Analysis – Net Selling Price
Performance Analysis – Net Selling Price Better price realisation supported by margin levers Net Selling Price (Q4) Net Selling Price (Annual) ( / ton) ( / ton) 3% 4% 5,025 5,033 4,834 4,881 Q4 2020 Q4 2021 2020 2021 acclimited.com | 39
Slide 41: Performance Analysis – Cost of Materials Consumed
Performance Analysis – Cost of Materials Consumed Q4 cost reduction driven by Project Parvat Raw Material Cost (Q4) Raw Material Cost (Annual) ( / ton) ( / ton) -7% 10% 510 492 462 457 Q4 2020 Q4 2021 2020 2021 acclimited.com | 40
Slide 42: Performance Analysis – Power & Fuel Cost
Performance Analysis – Power & Fuel Cost Significantly impacted by surge in fuel prices Power & Fuel Cost (Q4) Power & Fuel Cost (Annual) ( / ton) ( / ton) 27% 16% 1,138 1,216 978 961 Q4 2020 Q4 2021 2020 2021 acclimited.com | 41
Slide 43: Performance Analysis – Freight & Forwarding Cost
Performance Analysis – Freight & Forwarding Cost Leveraging MSA and Network Optimisation help mitigate inflationary headwinds Freight & Forwarding Freight & Forwarding Cost (Q4) Cost (Annual) ( / ton) ( / ton) -5% -1% 1,265 1,270 1,257 1,205 Q4 2020 Q4 2021 2020 2021 acclimited.com | 42
Slide 44: Performance Analysis – Employee Cost
Performance Analysis – Employee Cost Employee Cost (Q4) Employee Cost (Annual) ( / ton) ( / ton) -18% -11% 294 298 261 244 Q4 2020 Q4 2021 2020 2021 acclimited.com | 43
Slide 45: Performance Analysis – Other Expenses
Performance Analysis – Other Expenses Stricter control on fixed cost and SG&A Other Expenses (Q4) Other Expenses (Annual) ( / ton) ( / ton) -22% -2% 896 747 731 703 Q4 2020 Q4 2021 2020 2021 acclimited.com | 44
Slide 46: Registered Office
Registered Office Cement House, 121, Maharshi Karve Road, Mumbai – 400 020 acclimited.com in acc-limited ACCInd ACCCementOfficial