Acc Limited · NSE:ACC
Acc — FY2015 Earnings Presentation
22 slides from Acc's earnings presentation, Feb 10, 2016
Slide 1: 2015 Results
ACC 2015 Results Feb 10, 2016
Slide 2: Agenda
Agenda 1 Cement Industry 2 Key Highlights 3 Financial Summary 4 Performance Analysis 2 ACC Limited / India Investor Presentation
Slide 3: Cement Industry
Cement Industry Industry Growth (%) YoY 9.6 9.7 Demand for cement continues to remain subdued 1.5 4.5 -0.5 0.9 1.6 3.7 0 Industry capacity utilization lower at ~ 73 % Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 Surplus capacity continues to challenge cement sector Cement price trend rema
Slide 4: Agenda
Agenda 1 Cement Industry 2 Key Highlights 3 Financial Summary 4 Performance Analysis 4 ACC Limited / India Investor Presentation
Slide 5: Q4 2015 – Key Highlights
Q4 2015 – Key Highlights Cement Volume grown by 4% YoY; North, East & South regions showed upward trend while West region Volume declined marginally RMX volume Growth of 19% YoY due to higher share of wallet because of improved services & quality and addition of new customers Net Sales Impro
Slide 6: Financial Summary
Agenda 1 Cement Industry 2 Key Highlights 3 Financial Summary 4 Performance Analysis 6 ACC Limited / India Investor Presentation
Slide 7: Consolidated Financial Results – (1/2)
Consolidated Financial Results – (1/2) [Rs Cr] Q4 FY Particulars 2014 2015 Variance 2014 2015 Variance Net Sales 2762 2846 3% 11480 11433 - Other Operating Income 75 66 -12% 258 364 41% Cost of materials consumed 460 402 -13% 1788 1740 -3% Purchases of stock-in-trade 51 22 -58% 194 108 -44% Changes
Slide 8: Consolidated Financial Results – (2/2)
[Rs Cr] Consolidated Financial Results – (2/2) Q4 FY Particulars 2014 2015 Variance 2014 2015 Variance Operating EBITDA 257 280 9% 1513 1537 2% Other income 43 19 -55% 257 120 -53% Depreciation 147 158 8% 568 663 17% PBIT 153 140 -8% 1202 995 -17% Finance Costs 13 15 11% 83 65 -22% PBT before except
Slide 9: Consolidated Balance Sheet as at 31.12.2015
Consolidated Balance Sheet as at 31.12.2015 [Rs Cr] Equity and Liabilities 31.12.2014 31.12.2015 Variance Shareholders' Funds Share Capital 188 188 0 Reserves and Surplus 8030 8233 -203 Minority Interest 3 3 0 Non-current liabilities 657 590 67 Current liabilities 3804 3786 18 Total 12682 12800 -118
Slide 10: Financials - Consolidated
Financials - Consolidated Cement Volume [Mio T] Net Sales [Rs. Cr] 23.7 24.1 23.9 24.2 23.6 11130 10889 11480 11433 9430 EBITDA [Rs Cr] 2011 2012 2013 2014 2015 2196 2011 2012 2013 2014 2015 1921 1630 1513 1537 EBITDA Margin [%] EPS 70.6 20.4 19.7 58.3 61.9 56.5 15.0 2011 2012 2013 2014 2015 13.2 13
Slide 11: Performance Analysis
Agenda 1 Cement Industry 2 Key Highlights 3 Financial Summary 4 Performance Analysis 11 ACC Limited / India Investor Presentation
Slide 12: Cement Sales Volume
Cement Sales Volume [MioT] +4% Q4’15 YoY : 5.8 6.0 • Overall demand improved • East volume improved due to low base because of Q4 mining suspension in Q4’14 • North, East & South volume improved while West marginally declined Q4’14 Q4’15 -2.4% 24.2 23.6 2015 YoY : • Industry Demand growth of 1.5% fo
Slide 13: Consolidated Net Sales
Consolidated Net Sales [Rs Cr] +3.0% 2,763 2,846 Q4 Q4’15 YoY : • RMX volume growth 19%, Cement volume growth 4%, while Realization was soft Q4’14 Q4’15 -0.4% 11,481 11,433 FY 2015 YoY : • RMX volume increased by 28%, Cement volume lower by 2.4%, Realization was soft 2014 2015 13 ACC Limited / India
Slide 14: Consolidated Operating Costs by components
Consolidated Operating Costs by components [Rs Cr] Purchases of Changes in Purchases of Changes in stock-in-trade inventories stock-in-trade inventories Cost of materials consumed Cost of materials consumed 22 51 (1%) 402 460 (15%) Employee Cost Other Expenses (2%) Other Expenses 100 630 56 (17%) Em
Slide 15: Raw Materials – Cement Business
Raw Materials – Cement Business [Rs/Ton] Q4’15 YoY : • Slag prices renegotiated & reduced (Impact Rs 16 Cr) -22% 647 • Reduction in landed cost of Fly ash (Impact Rs 6 Cr) 506 • Lower cost of Additives & Corrective Materials (Impact Rs 7 Cr) Q4 • Suspension of mining operation at Chaibasa & Bargarh
Slide 16: Employee Cost - Consolidated
Employee Cost - Consolidated [Rs Cr] +21% 233 193 32 Severance Cost 4 +6% Q4’15 YoY : • Severance Cost Rs 32 Cr Q4 189 201 • LFL cost increase 6% Q4’14 Q4’15 +3% 772 748 4 33 Severance Cost 2015 YoY : -1% 744 739 FY • Severance cost Rs 33 Cr • Cost excl. Severance reduced by 1% 2014 2015 16 ACC Limi
Slide 17: Power & Fuel Cost - Cement Business
Power & Fuel Cost - Cement Business [Rs/Ton] -11% Q4 1,011 900 Power Mix Q4’14 Q4’15 Q4’15 YoY : Thermal Power Plant 73% 76% • Switching to Cheaper fuel - Petcoke & lower cost of Kiln Fuel Mix Imported Coal (Cost saving Rs 34 Cr) Linkage Coal 55% 34% • Higher usage of Alternative Fuels (Cost saving
Slide 18: Freight Cost – Cement Business
Freight Cost – Cement Business [Rs/Ton] -0.5% 1,111 1,105 Q4 Q4’14 Q4’15 Mode of Transport Mix Q4’15 YoY : • Reduction in road freight by 14% due to Rail 42% 44% reduction in diesel price & secondary lead Road 58% 56% • Increase in Rail Freight by ~ 3% +7% 1,045 1,118 2015 YoY: FY • Increase in Rail
Slide 19: Other Expenses - Consolidated
Other Expenses - Consolidated [Rs Cr] +3% Q4’15 YoY : 649 • Reduction in packing material cost by Rs 36 630 14 DMF /T Cement (Impact Rs 22 Cr) Q4 -1% 635 • Royalty Provision towards contribution to DMF/NMET effective from Jan’15 (Impact Rs 14 Cr) Q4’14 Q4’15 +2% 2015 YoY: 2,539 • Reduction in packin
Slide 20: Disclaimer
Disclaimer Cautionary statement regarding forward looking statements This presentation may contain certain forward-looking statements relating to the Company’s future business, developments and economic performance Such statements may be subject to a number of risks, uncertainties and other importan
Slide 21: Contact information
Contact information Ajeet Modi Investor Relations Phone: +91 22 3302 4321 Phone: +91 22 3302 4388 Fax: 91 22 66317421 www.acclimited.com 21 ACC Limited / India Investor Presentation 10th Feb’2016
Slide 22: Thanks
Thanks 22 ACC Limited / India Investor Presentation 10th Feb’2016