Shree Cement Limited · NSE:SHREECEM
Shree Cement — Investor Presentation (October 2019)
30 slides from Shree Cement's investor presentation, Oct 19, 2019
Slide 1: Exchange filing cover letter: corporate presentation
CIN No. : L26943RJ1979PLC001935 Phone : 01462228101-6 Toll Free : 1800 180600316004 F a x : 014622281171228119 E-Mail: shreebwr@shreecementltd.com Website : www.shreecement.in SHREE CEMENT LTD. a\'E>OB~OOI a~'E>~~11800'" 0140 c>f. ,,?- 0,f ~ Regd. OffIce: .ri .. ri. . BANGUR NAGAR, POST BOX NO.33, B
Slide 2: Shree Cement Corporate Presentation
Shree Cement Corporate Presentation
Slide 3: Disclaimer
Disclaimer This presentation has been prepared for general information purposes in respect of Shree Cement Limited (“Company”) together with its subsidiaries (together, with the Company, the “Group”) only, without regard to any specific objectives, suitability, financial situations and needs of any
Slide 4: Company Overview
Company Overview
Slide 5: Shree Cement – Third Largest Cement Group in India
Shree Cement – Third Largest Cement Group in India 1 Third Largest More Than 3 711 MW of Decades of Power Cement Group Operations Generation^^ in India* 1 Higher 1 Lowest Total Promoted by 1 8% Market EBITDA Per Cost Per Bangur Family Share* Tonne^ Tonne# As of Sep As of Mar 10 Yr 1 Third Highest Ma
Slide 6: Evolution of the Company
Evolution of the Company Key Milestones • 1979: Incorporation • 2008: First Waste Heat Recovery Plant at Beawar • 1984: IPO and listing on BSE in 1985 • 2011 : First Power Plant at Beawar of 150 MW capacity • 1985: Installed first cement unit of 0.6 MTPA at Beawar • 2015: Acquisition of 1.5 MTPA gri
Slide 7: Region-Wise Capacity of Shree Cement Plants
Region-Wise Capacity of Shree Cement Plants Cement Clinker Cement Capacity* Capacity Capacity Region Plant Location Region/ Location (MTPA)* (MTPA)* Central North India Ras# Rajasthan 7.0 15.0 South India India 4% North India Khushkhera Rajasthan 3.5 - 7% North India Beawar# Rajasthan 3.6 3.0 UAE No
Slide 8: Shree Cement has Outperformed the Market Over a Decade
Shree Cement has Outperformed the Market Over a Decade Price Movement of Shree Cement vis-a-vis the Market Rebased to 100 with a log scale of 10 1,142 Prices Shree: 18,888 100 Shree: 1,653 100 Nifty: 5,084 226 Nifty: 11,474 30-Sep-09 30-Sep-10 30-Sep-11 30-Sep-12 30-Sep-13 30-Sep-14 30-Sep-15 30-Sep
Slide 9: Industry Overview
Industry Overview
Slide 10: Strong Fundamentals to Drive India's Cement Demand
Strong Fundamentals to Drive India’s Cement Demand India is the second largest producer* of cement... ...and has a low per capita cement consumption* Others 26% (In Kg) 1,650 – 1,750 World Avg. 500 - 550 Brazil 1% Russia 1% Turkey 2% 800 - 850 700 - 750 Vietnam 2% China 58% 300 - 350 300 - 350 200 -
Slide 11: Demand - Supply Imbalance Leading to Higher Capacity Utilizations
Demand - Supply Imbalance Leading to Higher Capacity Utilizations Growth in Cement Demand Growth in Capacity Addition* (MTPA) (MTPA) 335 351 376 457 475 496 522 544 274 299 25 36 25 27 18 20 27 21 16 5 FY17 FY18 FY19 FY20E FY21E FY17 FY18 FY19 FY20E FY21E Total Cement Demand Incremental Demand Insta
Slide 12: Region-Wise Demand and Supply Dynamics
Region-Wise Demand and Supply Dynamics NORTH CENTRAL WEST EAST SOUTH PAN INDIA REGION (% Market Share*) 21% 13% 14% 18% 34% 100% Capacity (MTPA)* 102 62 71 90 171 496 Market Share of Top 5 Players# 77% 55% 56% 64% 42% 48% Demand (MTPA) 60 50 63 80 82 335 2018-19 Growth 6-7% 9-11% 7.5-8.5% 13-15% 18-
Slide 13: Shree Cement – Key Strengths
Shree Cement – Key Strengths
Slide 14: Key Strengths
Key Strengths 1 Third largest cement group in India with leadership position in North India Strategically located cement plants with proximity to raw materials and principal 2 markets Proven track record of project execution – efficient capital costs and timely 3 execution Cost leadership driven by
Slide 15: Third Largest Cement Group in India With Leadership Position in the North
Third Largest Cement Group in India With Leadership Position in the North Third Largest Group in Terms of Capacity* (MTPA) 94.8 All India Capacity* : 496 MTPA 63.1 37.9 26.5 16.7 15.6 15.4 12.5 10.5 Ultratech Holcim (ACC + Shree Dalmia Ramco India Birla Corp. JK Lakshmi JK Ambuja) Market Leader in t
Slide 16: Strategically Located Plants With Proximity to Markets & Raw Materials
Strategically Located Plants With Proximity to Markets & Raw Materials Plants located in eight states and with addition of two new states – Close proximity to customers in North, East, South & West markets Split Grinding Units Strategy • Facilities strategically located in close proximity to raw mat
Slide 17: Proven Track Record – Efficient Capital Costs & Timely Project Execution
Proven Track Record -– Efficient Capital Costs & Timely Project Execution Implementation Ahead of Schedule Expected Commissioning Actual Commissioning Months Ahead of Schedule 2 Months 1 Month 4 Months 6 Months On Schedule Expansion of Grinding Cement Section of the Expansion of Grinding Grinding Un
Slide 18: Cost Leadership Driven by Efficient Operating Parameters and Low Cost WHRP
Cost Leadership Driven by Efficient Operating Parameters and Low Cost WHRP Lower Total Production Cost Amongst Peers Lower Energy Cost Amongst Peers (INR / Tonne) Power and Fuel - (INR/Tonne) 4,142 1,066 1,067 3,984 4,009 3,794 3,855 975 968 3,639 888 3,396 812 816 3,153 747 2,822 567 FY17 FY18 FY19
Slide 19: Multi Brand Strategy with a Strong Dealer & Distribution Network
Multi Brand Strategy with a Strong Dealer & Distribution Network Gain in Market Share (Production) • Strong Brand Equity developed over 3 decades Market Share Company (FY14 – 19) • Awarded Asia’s Most Trusted Company Award 16% – 20% Inner Circle - FY14 I Outer Circle – FY19 Ultratech 2018 by Interna
Slide 20: Strong Financial Profile
Strong Financial Profile Revenue from Operations EBITDA (INR Cr.) (INR Cr.) 11,722 2,875 2,862 2,898 9,833 8,594 1,855 5,657 5,838 1,240 33.5% 29.1% 24.7% 21.9% 31.8% FY17 FY18 FY19 H1FY19 H1FY20 FY17 FY18 FY19 H1FY19 H1FY20 Revenue EBITDA % EBITDA Margin Net Worth AAA Rating & Net Cash Position (IN
Slide 21: Superior EBITDA Margins vs Peers
Superior EBITDA Margins vs Peers Financial Snapshot – Shree Cement 109 29.4 25.3 94 26.2 21.5 22.5 80 22.6 52 57 50 24 25 25 13 12 11 FY14 FY15 FY16 FY17 FY18 FY19 Operating Income (INR bn) EBITDA (INR bn) EBITDA margin (%) Financial Snapshot – Peers* 19.6 852 742 18.8 18.2 611 620 524 577 17 17 17.
Slide 22: Experienced Promoters Supported by a Qualified Board
Experienced Promoters Supported by a Qualified Board Board of Directors B.G. Bangur • Shri B. G. Bangur is associated with Company since incorporation and brings an extensive experience of Chairman the Industry • He is Director in The Marwar Textiles (Agency) Pvt. Ltd., Shree Global FZE, UAE, Shree
Slide 23: Strategy Going Forward
Strategy Going Forward Capture Growing Cement Demand Grow Capacity & Market Share 01 • Northern, central, western, eastern and 02 • Grow inorganically through acquisitions to southern India is expected to grow at a healthy achieve synergy with existing plants and CAGR* of ~5.5-6.5%, ~6-8%, ~5-7%, ~7
Slide 24: Expansion Plans
Expansion Plans India Operations UAE Operations Cement Grinding Unit WHRP Project Athagarh, Patas Ras Al Description, Odisha Maharashtra Khaimah Capacity, Timeline and 3.0 MTPA 3.0 MTPA 16.5 MW Estimated Project Cost Fiscal 2020 Fiscal 2021 Fiscal 2021 INR 423 Cr INR 525 Cr AED 104 Mn • Land acquire
Slide 25: In Summary...
In Summary... Third largest cement group in India with leadership position in North region Cost Leadership Driven by Efficient Operating Parameters and Low Cost WHRP leading to a high EBITDA per tonne Proven track record of project execution at lower Capex per tonne vs peers Strong financial
Slide 26: Annexure
Annexure
Slide 27: P&L Statement – Standalone
P&L Statement – Standalone INR Crore Particulars FY17 FY18 FY19 H1FY20 H1FY19 Sales Volume Cement & Clinker (Million Tonnes) 20.6 22.5 25.9 11.8 12.6 Sales Volume Power (Million Units kwh) 1,658.3 1,196.5 1,678.2 753.9 850.3 Net Revenue from Operations 8,594.3 9,833.1 11,722.0 5,838.1 5,656.5 EBITDA
Slide 28: P&L Statement – Consolidated
P&L Statement – Consolidated INR Crore Particulars FY17 FY18 FY19 H1FY20 H1FY19 Sales Volume Cement & Clinker (Million Tonnes) 20.6 22.5 28.6 13.3 13.5 Sales Volume Power (Million Units kwh) 1,658.3 1,196.5 1,678.2 753.9 850.3 Net Revenue from Operations 8,594.3 9,833.1 12,554.7 6,307.2 5,925.5 EBIT
Slide 29: Balance Sheet - Standalone
Balance Sheet - Standalone INR Crore Particulars FY17 FY18 FY19 H1FY20 Assets Property, Plant and Equipment 2,586.3 3,577.1 4,465.0 4,633.0 Capital Work in Progress 710.4 1,427.2 1,121.1 814.7 Total Fixed Assets1 3,309.6 5,016.3 5,596.8 5,468.8 Total Non-Current Assets 7,884.0 9,441.7 11,201.6 11,16
Slide 30: Balance Sheet - Consolidated
Balance Sheet - Consolidated INR Crore Particulars FY17 FY18 FY19 H1FY20 Assets Property, Plant and Equipment 2,586.3 3,577.1 6,135.2 6,370.9 Capital Work in Progress 710.4 1,427.2 1,129.5 855.0 Total Fixed Assets1 3,309.6 5,016.3 7,311.1 7,281.8 Total Non-Current Assets 7,883.8 9,441.4 10,773.8 10,