Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Debt Investor Presentation (2021)
42 slides from Ultratech Cement's debt investor presentation, 2021
Slide 1: UltraTech Cement Limited
Click to edit Master title style UltraTech Cement Limited BIG IN YOUR LIFE
Slide 2: Agenda
Agenda Aditya Birla Group–Overview ESG Strategy Industry Overview Key Credit Highlights Business Strategy Financial Overview Appendix
Slide 3: Aditya Birla Group - Overview
Favorable trends across all demand segments Aditya Birla Group - Overview # 1 cement player in India # 3 largest cement player globally (ex - China) PREMIUM GLOBAL CONGLOMERATE A global metals powerhouse # 1 in VSF1 globally # 1 in aluminum rolling # 1 in chlor-alkali in India globally I
Slide 4: UltraTech Cement
UltraTech Cement India’s largest cement company India’s Largest Selling Cement Brand Leading RMC player in India Market Cap of FY20 Consolidated Revenue # 3 largest cement player with 100+ plants ~US$21bn1 ~US$5.8bn globally (ex - China) Different Products to Leading Player of White 1.6bn bags of ce
Slide 5: Financial strength–credit ratings confirmed, strong balance sheet and liquidity
Financial strength–credit ratings confirmed, strong balance sheet and liquidity Over US$1,800mm of treasury investments1 as of Dec 31, Debt maturities of 2021 and Capex plan well covered with 2020 available liquidity Financial covenants relating to borrowing facilities Capital employed of US
Slide 6: UltraTech Cement: balanced growth through organic and inorganic expansion
UltraTech Cement India’s largest cement company Balanced growth through organic and inorganic expansion Capacity evolution (In mtpa) Organic Inorganic 116.8 mtpa 116.8 Added 49.1 mtpa capacity1 #3 global cement player by capacity (ex. China) 66.3 67.7 51.8 24.8 35.0 51.8 mtpa 31.0 20.0 2020 1.1
Slide 7: Agenda
Agenda Aditya Birla Group–Overview ESG Strategy Industry Overview Key Credit Highlights Business Strategy Financial Overview Appendix
Slide 8: UltraTech sustainability strategy
UltraTech sustainability strategy Sustainability is an integral part of Carbon offset projects in Internal carbon Groundwater Water recycling community pricing recharging UltraTech’s operations Chief Sustainability Officer to Rainwater harvesting manage sustainability related initiatives reporti
Slide 9: ESG at UltraTech
ESG at UltraTech Key Environment Protection Initiatives Sustainability commitment In line with the Company’s Built on a foundation vision of ‘To be The Leader of best-in-class Soon to join the growing list of companies adopting Science-Based Target initiative operational excellence in Building Sol
Slide 10: Boosting Circular Economy in the time of the Covid-19 Pandemic
Boosting Circular Economy in the time of the Covid-19 Pandemic with focus on increasing green energy power mix WHRS1 capacity (MW) 26% of total power consumption Adopted innovative approaches during pandemic to build our efforts on Circular Economy BUILDING CIRCULAR BUSINESS Circular Use of Green Po
Slide 11: ESG at UltraTech
ESG at UltraTech Sustainability COVID-19 Initiatives : ~1.0mm population outreach Provided meals to 430k people and distributed Education ~50,000 grocery packets Supplied 600,000+ N95 masks & sanitizers, ~100,000 PPE and 100,000 recyclable Social Change CSR at Healthcare cloth masks UltraTech
Slide 12: ESG at UltraTech (cont’d.)
ESG at UltraTech (cont’d.) Continued Social Commitment Environment and 10,300 saplings were planted during COVID-19 applying necessary norms Natural Resource of social distancing Management Mother and Child Health care: 2,000 families were supported for Health and immunization & food Education
Slide 13: Board structure and compliance
Board structure and compliance Shareholders Independent Directors 50% Board of Directors Nomination, Remuneration and Audit Stakeholders Woman Directors 30% Relationship Compensation Risk Management Corporate Social Board Attendance >90% Finance and Sustainability Responsibility Executive Management
Slide 14: UltraTech: Policies governing our business
UltraTech: Policies governing our business 1. Sustainability Policy 10. Supplier Code of Conduct 2. Code of Conduct 11. Human Rights Policy 3. Tax Policy 12. Safety Policy 4. Policy on Related Party Transaction 13. Occupational Health Policy 5. Whistleblower Policy 14. Energy & Carbon Policy 6. CSR
Slide 15: Agenda
Agenda Aditya Birla Group–Overview ESG Strategy Industry Overview Key Credit Highlights Business Strategy Financial Overview Appendix
Slide 16: Overview of the cement industry in India
Overview of the cement industry in India India is second largest cement …but remains a highly underpenetrated market producer of the world… Global cement production (per capita cement consumption in kg)1 World average : 500-550 2 3 Source: CRISIL Research Note: India production data are on a fiscal
Slide 17: Standalone local market sizes comparable to key cement producing countries
Standalone local market sizes comparable to key cement producing countries Latest cement production (mtpa)1 North India: ~73 mtpa Indonesia: ~74 mtpa East India: ~67 mtpa Russia: ~57 mtpa Central India: ~47 mtpa Mexico: ~49 mtpa West India: ~46 mtpa Thailand: ~35 mtpa South India: ~96 mtpa USA: ~89
Slide 18: Industry expected to witness sharp recovery following the decline in FY21
Industry expected to witness sharp recovery following the decline in FY21 due to Covid-19 Cement demand forecast (mm tonnes) Trend and projection in cement capacity utilization1 (mm tonnes) Source: CRISIL Research Note: 1 Effective cement capacity is calculated on pro-rata basis, taking into account
Slide 19: Agenda
Agenda Aditya Birla Group–Overview ESG Strategy Industry Overview Key Credit Highlights Business Strategy Financial Overview Appendix
Slide 20: Key credit highlights
Key credit highlights 3 4 Integrated business with Extensive distribution network proven capability of turning across India around acquisitions 2 5 Well diversified across the Industry leading brand country and product offerings 1 6 Largest cement player in India Experienced and reputed Board and on
Slide 21: One of the largest cement players globally and the largest in India
1 One of the largest cement players globally and the largest in India UltraTech is the 3rd largest cement manufacturer in the world1 Installed capacity in mtpa (2019) 2 Largest grey cement manufacturer in India - UltraTech is the only player outside China with 100 mtpa+ capacity in a single country
Slide 22: UltraTech is a market leader in all regions
1 UltraTech is a market leader in all regions North Central #2 Shree Cement 23% UltraTech Cement 35% UltraTech Cerment 23% Birla Corporation 13% Ambuja Cements 10% ACC limited 7% JK Lakshmi Cement 7% Shree Cement 3% ACC Limited 6% #1 Ambuja Cements 3% Capacity (MTPA) ~104 Capacity (MTPA) ~68 East We
Slide 23: Highly diversified geographically with pan-India presence
2 Highly diversified geographically with pan-India presence 23 Integrated Units1 (IU) 27 Grinding Units2 (GU) 7 Bulk Packaging Terminals3 (Sea + Rail) 2 White Cement & Putty Units 5 Jetties 1 putty plant under development Zones Zonal Capacity (mtpa) UTCL Industry UTCL Share in UTCL Capac
Slide 24: Actively addressing the growth opportunity across the country
2 UltraTech is actively addressing the growth opportunity across the country Expected expansion of 19.5 mtpa North Total expected new capacity by FY24: Clinker–2.7 MnT Cement–2.5 MnT Clinker Cement Q3–FY23 11.4 MnT 19.5 MnT Central1 North Expected UltraTech capacity addition to enhance capacity shar
Slide 25: Diversified product offerings catering a full suite of building solution products
2 Diversified product offerings catering a full suite of building solution products Conventional: Positioning cement Contemporary: Providing an umbrella Building solutions at the core of all construction of related construction products and services Current capacity Leading player 100+ RMC plants in
Slide 26: Portfolio of building solution products
2 Portfolio of building solution products All BPD products Dry Mix Mortars Synergy environment friendly In line with our vision ‘To be Environmental (M-Sand helping THE LEADER in Building conserve sand beds; less water Solutions’ needed in curing) Forward integration of the Society (Homogeno
Slide 27: End-to-end capabilities with integrated operations
3 End-to-end capabilities with integrated operations Strong manufacturing capability with control over supply chain Captive Raw material Cement production power generation Limestone Captive power plant generates 1,170MW of power Particulars UOM Current Key input for manufacturing cement WHRS1
Slide 28: Track record of successfully integrating large acquisitions
3 Track record of successfully integrating large acquisitions Company Jaypee Cement Binani Cement Century Cement Date June 2017 November 2018 October 2019 Capacity (mtpa) 21.2 6.25 14.6 Enter new markets (Central India, Coastal AP Enabled company to access to large reserves of Strengthened pos
Slide 29: Extensive distribution across India
4 Extensive distribution across India Nationwide reach with strong logistics presence across India Use of diversified modes of transportation 4.40mm bags per day ~23,000 destinations 60% lifting by GPS enabled fleet Integrated model ~30,000 orders processed daily UTCL Integrated Unit UTCL Grinding U
Slide 30: Extensive sales and distribution network
4 Extensive sales and distribution network Entrenched presence in multiple channels of distribution Channel sales Direct sales Direct sales to key large customers UltraTech Strong in-house sales team and Key Account Management Cell to serve large customers Dealer / Stockists Retailers Channel Di
Slide 31: Extensive sales and distribution network
4 Extensive sales and distribution network UltraTech Building Solutions: One-stop building solution for the retail customer First and only cement company to setup a retail chain! 2,350 UltraTech Building Helps to increase the share of Solutions outlets customer wallet Benefits for Home Builders Co
Slide 32: Extensive sales and distribution network
4 Extensive sales and distribution network Value added services Over 1,2001 personnel deployed to provide technical Builders and Contractors Meet and support to home builders, engineers, architects, education seminars and programs contractors On-site concrete plants covering over Mobile conc
Slide 33: Highly reputed Board
6 Highly reputed Board Chairman of the Aditya Birla Group since 1995 Kumar Mangalam Birla Chairs the Boards of all the Aditya Birla Group’s major companies in India and globally; Global companies include Novelis, Birla Carbon, Aditya Birla Minerals, Aditya Birla Chemicals, Domsjö Fabriker and Te
Slide 34: Highly reputed Board (cont’d)
6 Highly reputed Board (cont’d) Arun Adhikari Alumni of the Indian Institute of Technology, Kanpur and the Indian Institute of Management, Calcutta Independent Director Areas of expertise - sales and marketing, culminating in general management and leadership roles Masters in Law from the Univ
Slide 35: Agenda
Agenda Aditya Birla Group–Overview ESG Strategy Industry Overview Key Credit Highlights Business Strategy Financial Overview Appendix
Slide 36: Business strategy
Business strategy Enhanced Stakeholder Value VISION Socially responsible To be The Leader in Building Profitable growth Strong financials Premium brand Solutions Market leader Innovation Sustainability MISSION To deliver superior value to stakeholders on the four pillars of Customer Team Centricity
Slide 37: The key elements of UltraTech’s growth blueprint
The key elements of UltraTech’s growth blueprint Enhanced Balance Low Capex Without endangering Sheet Values Expansion the environment Funding through internal accruals Largely brownfield expansion (72%) WHRS to address 40% power requirement Prioritize plants having substantial Targetted a
Slide 38: Agenda
Agenda Aditya Birla Group–Overview ESG Strategy Industry Overview Key Credit Highlights Business Strategy Financial Overview Appendix
Slide 39: Key financials
Key financials Revenue from operations (US$mm) Adjusted EBITDA (US$mm)1 Margins 21% 18% 23% 23% 28% 5,716 5,807 1,355 1,171 4,363 4,321 1,069 993 4,150 922 FY18 FY19 FY20 9M20 9M21 FY18 FY19 FY20 9M20 9M21 Adjusted EBITDA1 / tons (US$ / mmt) Net Profit from continuing operations (US$mm) Margins 7% 6
Slide 40: Debt Profile
Debt Profile Debt profile – Maturity Debt profile - Security Short-term1 23% Unsecured 37% Secured Long-term 2 63% 77% Total consolidated borrowings3 as of Dec-20: US$3.0 bn Significant reduction in net debt4 Net debt / Adjusted EBITDA5 Net debt4 (US$mm) 3,074 2.88x 2,329 1,926 2.09x 1.72x 1,297 0.8
Slide 41: Agenda
Agenda Aditya Birla Group–Overview ESG Strategy Industry Overview Key Credit Highlights Business Strategy Financial Overview Appendix
Slide 42: Shareholding Pattern
Shareholding Pattern 7.0% 16.2% Promoter Group Foreign Portfolio Investors 60.0% Mutual Fund, Institutions, Insurance & Bodies Corporate 16.8% Other Public Holding As on 31st Dec, 2020 Source: BSE Slide 42