Acc Limited · NSE:ACC
Acc — Q1 FY2024 Earnings Presentation
51 slides from Acc's earnings presentation, Aug 2, 2023
Slide 1: Investor Presentation filing letter to stock exchanges
Date: August 02, 2023 National Stock Exchange of India Ltd., Bombay Stock Exchange Limited Plot No. C/1 'G' Block Phiroz Jeejeebhoy Towers, Bandra – Kurla Complex Bandra Dalal Street, Mumbai – 400 023 East, Mumbai 400 051 Scrip Code: 500410 Scrip Code: ACC Dear Sirs, Sub: Investor Presentation under
Slide 2: Operational & Financial Highlights
Operational & Financial Highlights For the Quarter Ended June 30, 2023
Slide 3: Content
Content 01 Adani Group Profile 3-6 02 Adani Cement - Overview 7-10 03 Financial, ESG and Governance Overview 11-16 04 Performance Highlights 17-26 05 Way forward & Growth Updates 27-34 06 ESG Updates 35-46 07 Accolades & Awards 47-50 2
Slide 4: Adani Group Profile
Adani Group Profile 01 3
Slide 5: Adani: A World Class Infrastructure & Utility Portfolio
Adani: A World Class Infrastructure & Utility Portfolio 4
Slide 6: Adani Portfolio: Decades long track record of industry best growth
Adani Portfolio: Decades long track record of industry best growth with national footprint 5
Slide 7: Adani Portfolio: Repeatable, robust & proven transformative model of investment
Adani Portfolio: Repeatable, robust & proven transformative model of investment 6
Slide 8: Adani Cement (Ambuja + ACC) - Overview
Adani Cement (Ambuja + ACC) - Overview 02 7
Slide 9: Adani Cement: Builders of Progress in India
Adani Cement: Builders of Progress in India Well poised for Growth Cost Leadership Market Leadership Achieve lowest cost to serve by • Pan India presence with iconic Capacity to double from the current leveraging Group’s vast experience brands Development 67.5 MTPA to 140 MTPA and unmatched adjacenc
Slide 10: Adani Cement: Presence in 29 states and 600+ districts
Adani Cement: Presence in 29 states and 600+ districts (~79%)* 67.5 MTPA 10 # Cement Capacity Captive Ships 1,15,000 5 Channel partners across India Bulk Cement Terminals 16 92% Integrated units Share of blended cement Integrated Unit 14 7.0% ● Grinding Unit Grinding units Thermal Substitution rat
Slide 11: Adani Cement: Iconic brands that shaped the industry
Adani Cement: Iconic brands that shaped the industry High contribution All India Presence - Iconic brands Price Leadership coming from IHB 2022 A Band ( >Rs 340+ /bag) Ambuja + ACC – 77% Industry – 65% % of Sales Strength Original disruptor with Virat Compressive Strength 28% Pioneered brand buildin
Slide 12: Financial Overview
Financial Overview For the Quarter Ended Jun 30, 2023 03 11
Slide 13: Financial results (for the Qtr.)
Financial results (for the Qtr.) Ambuja Ambuja ACC Consolidated Standalone Standalone KPIs UoM Jun 23 Mar 23 Jun 23 Mar 23 Jun 23 Mar 23 Revenue from Operation Rs. Cr 8,713* 7,966 4,730 4,256 5,201 4,791 EBITDA Rs. Cr 1,930 1,523 1,138 962 848 588 EBITDA (%) % 22.2% 19.1% 24.1% 22.6% 16.3% 12.3% Pro
Slide 14: ESG Overview
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Slide 15: ESG performance update
ESG performance update KPIs Remarks Target 2030 Actual Target 2030 Actual Climate and energy - Accelerating Green products & Solutions - Maximizing WHRS power in power basket to (Net specific CO2 453 523 400 460 reduce carbon footprint emissions) Kg/t - Increased share of Blended cement Circular eco
Slide 16: Governance Overview
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Slide 17: Adani Cement: Strong governance framework
Adani Cement: Strong governance framework Statutory Committees Board of Directors Governance Committees Audit CSR Risk Mgt. Public Committee Committee Committee Consumer 2 3 Committee 1 Stakeholder Nomination & Corporate 1 Relationship Remuneration Responsibility Committee Committee Committee 3 1 1
Slide 18: Performance Highlights
Performance Highlights For the Quarter Ended June 30, 2023 04 17
Slide 19: Ambuja Cement (Consolidated): Performance highlights (for the qtr.)
Ambuja Cement (Consolidated): Performance highlights (for the qtr.) Sales volume – Clinker & Cement (MnT) EBITDA – (Rs. Crore) Revenue – (Rs. Crore) EBITDA – (Rs./ton) 1,930 8,713 1,253 8,033 7,966 15.4 1,079 14.1 14.1 1,523 7,143 12.8 888 1,248 342 436 Jun-22 Sep-22 Mar-23 Jun-23 Jun-22 Sep-22 Mar-
Slide 20: Ambuja Cement (Consolidated): Performance highlights (for the qtr.)
Ambuja Cement (Consolidated): Performance highlights (for the qtr.) Raw Material Cost – (Rs./ton) Power & Fuel Cost – (Rs./ton) Freight and Forwarding Cost – (Rs./ton) Other Expenses – (Rs./ton) 732 742* 2,138 1,411 1,426 1,436 832 707 706 1,390 770 1,872 702 669 * 1,501 1,404 Jun-22 Sep-22 Mar-23 J
Slide 21: Ambuja Cement (Standalone): Performance highlights (for the qtr.)
Ambuja Cement (Standalone): Performance highlights (for the qtr.) Sales volume – Clinker & Cement (MnT) EBITDA – (Rs. Crore) Revenue – (Rs. Crore) EBITDA – (Rs./ton) 9.1 1,138 4,730 1,247 1,190 8.1 4,256 7.4 962 3,998 1,035 * 6.8 3,670 768 * 498 351 Jun-22 Sep-22 Mar-23 Jun-23 Jun-22 Sep-22 Mar-23 J
Slide 22: Ambuja Cement (Standalone): Performance highlights (for the qtr.)
Ambuja Cement (Standalone): Performance highlights (for the qtr.) Raw Material Cost – (Rs./ton) Power & Fuel Cost – (Rs./ton) Freight and Forwarding Cost – (Rs./ton) Other Expenses – (Rs./ton) 520 * 2,006 1,221 1,190 926 1,155 1,147 445 1,781 809 420 433 * 1,281 1,284 574 602 Jun-22 Sep-22 Mar-23 Ju
Slide 23: ACC: Performance highlights (for the qtr.)
ACC: Performance highlights (for the qtr.) Sales volume – Clinker & Cement (MnT) EBITDA – (Rs. Crore) Revenue – (Rs. Crore) EBITDA – (Rs./ton) 9.4 848 5,201 900 8.5 4,791 4,468 7.6 6.9 3,987 694 588 628 480 86 124 Jun-22 Sep-22 Mar-23 Jun-23 Jun-22 Sep-22 Mar-23 Jun-23 Jun-22 Sep-22 Mar-23 Jun-23 Ju
Slide 24: ACC: Performance highlights (for the qtr.)
ACC: Performance highlights (for the qtr.) Raw Material Cost – (Rs./ton) Power & Fuel Cost – (Rs./ton) Freight and Forwarding Cost – (Rs./ton) Other Expenses – (Rs./ton) 1,410 1,420 1,192 907 882 871 1,903 1,237 861 1,217 1,716 781 1,194 662 1,113 596 Jun-22 Sep-22 Mar-23 Jun-23 Jun-22 Sep-22 Mar-23
Slide 25: Ambuja Cement (Consolidated): Improvement in financial performance
Ambuja Cement (Consolidated): Improvement in financial performance Sales volume and cost optimization efforts led to material improvement in Revenue & EBITDA Sales volume – Clinker & Cement (MnT) Revenue (Rs. Crore) 20% 22% 12.8 13.7 14.1 15.4 7,143 7,907 7,966 8,713 Jul-Sep'22 Oct-Dec'22 Jan-Mar'23
Slide 26: Ambuja Cement (Consolidated): Improvement in profitability and cash generation
Ambuja Cement (Consolidated): Improvement in profitability and cash generation PAT (Rs. Crore) Cash Flow from operation before w/c changes (Rs. Crore) 50% 22x 51 488 763 1,135 1,181 1,252 1,728 Jul-Sep'22 Oct-Dec'22 Jan-Mar'23 Apr-Jun'23 Jul-Dec'22 Jan-Mar'23 Mar-Jun'23 (6 months) (3 months) (3 mont
Slide 27: Ambuja Cement (consolidated): Cash & Cash Equivalents position
Ambuja Cement (consolidated): Cash & Cash Equivalents position Cash & Cash Equivalent for the last five quarters Synopsis of the changes in the Cash & Cash Equivalent Cash Balance Rs. Cr Remarks Cash Balance Rs. Cr December 21 Year end 11,358 Opening balance as on 1st Apr 2023 11,530 Under (+) Cash
Slide 28: Way Forward & Growth Strategy
Way Forward & Growth Strategy 05 27
Slide 29: Adani Cement: Synergies with Adani Group
Adani Cement: Synergies with Adani Group Fly Ash Utilization of fly ash Coal generated from Use AEL / ANR power plants expertise in procuring operated by Adani coal and mining Power (APL) operations People Talent movement Power & Renewables within Leverage APL’s the group across expertise to improve
Slide 30: Adani Cement: Sales & Marketing strategy
Adani Cement: Sales & Marketing strategy • Improve brand • Focus on 10 high awareness through growth states – GJ, RJ, differentiated regional PB, HP, UP, J&K, BH, JH, positioning and, MH and KA elevating website and • Ramp up demand social media generation activities by communication. appointing new
Slide 31: Adani Cement: Branding strategy
Adani Cement: Branding strategy Brand Building On Ground Digital Mega Campaigns that focused on strengthening the • Celebrated our associations with channel • Leveraged Gujarat Giants #strongHER mother brand positioning across key platforms of TV, & influencers to drive higher SOW campaign reached o
Slide 32: Adani Cement: Consumers & influencers at the center
Adani Cement: Consumers & influencers at the center IHB Contractor Professionals Dealer • IHB clinic • Relationship • Knowledge Strengthening • Site visits programs centers & lab consumer pull & • Technical • Contractor network enabling dealers to guidance certification • Technical sell all products
Slide 33: Adani Cement: EBITDA improvement initiatives
Adani Cement: EBITDA improvement initiatives Cost leadership through operational efficiencies (Rs 300-400/ton improvement in EBITDA for FY24) Optimising Optimising Other optimisations Manufacturing cost Logistics cost Increase in WHRS capacity from 87 MW to Manpower streamlining – Operating as a Rai
Slide 34: Growth Strategy
pba ACC Growth Strategy
Slide 35: Adani Cement: Strategic approach going forward
Adani Cement: Strategic approach going forward Decarbonization • Decarbonize - Use of ships / rails for carbon efficient Drive transportation, use of renewable power, increase WHRS capacity • Circular Economy – Increased use of Fly Ash, alternate fuel, synesthetic gypsum Benchmarking Circular Econom
Slide 36: ESG Update
pba ACC ESG Update O06 Cement
Slide 37: Adani Cement: Stakeholder value creation
Adani Cement: Stakeholder value creation Environmental Society Governance • Strong commitment to • Spend of ~Rs 300 Cr on • Enhanced Governance - In Sustainable Development various social addition to the statutory (SD) 2030 Plan development program committees, there are 7 (direct/partnership - Rs ad
Slide 38: ESG Ratings
ESG Ratings DJSI Climate Circular economy and energy Climate Water 80 B B 73 A- B Industry Max score 89 A A Best Possible Score 100 A A 37
Slide 39: RMC – ECOMaxX the expert green concrete
AAA RMC – ECOMaxX “the expert green concrete” • ESG initiative: AAA RMC launched ECOMaxX (000M3) ECOMaxX (in % of total volume) ECOMaxX on 3rd January 2023 19% (expert range of green concrete 16% 16% 16% 14% solution aimed towards building a 11% 47 sustainable future) 41 43 36 39 22 • 30-70% lower e
Slide 40: Adani Cement: Corporate Social Responsibility
Adani Cement : Corporate Social Responsibility 39
Slide 41: CSR @ Ambuja
CSR @ Ambuja Segment Major Transformations during Apr-Jun 23 Water Governance & • 0.77 MCM Water Storage Capacity Created Management • 37 Check Dams Built • 132 Families supported for Roof Rain Water Harvesting Structures • 257 Water sources tested for quality Skill Based • 1947 Youth Trained across
Slide 42: CSR @ Ambuja
CSR @ Ambuja Segment Major Transformations during Apr-Jun 23 Health • Institutional Delivery rate as high as 99% • 131 WASH infrastructure provided to schools and communities • 5 Healthcare centres cater to healthcare needs of approx. 18,395 truckers and allied population • Till date, 13 community c
Slide 43: Adani Cement: Governance
pba ACL Adani Cement: Governance adani. Cement
Slide 44: Board & Committee Structure
Board & Committee Structure Statutory Committees Board of Directors Governance Committees Audit CSR Risk Mgt. Public Committee Committee Committee Consumer 2 3 Committee 1 Stakeholder Nomination & Corporate 1 Relationship Remuneration Responsibility Committee Committee Committee 3 1 1 Reputation Com
Slide 45: Key policies & its focus areas
Key policies & its focus areas RPT Policy To provide guidelines for entering into transaction with Related Parties Whistle Blower Policy To provide framework for responsible and secure whistle blowing CSR Policy To recommend amount towards CSR activities Remuneration Policy To provide criteria for d
Slide 46: Key policies & its focus areas
Key policies & its focus areas Policy For Determining Material The objective of this policy is to ensure governance of the Company’s material Subsidiaries subsidiary companies The intent of this policy is to lay down procedure of Inquiry in case of leak or suspected Leak of UPSI Policy leak of UPSI
Slide 47: Key policies & its focus areas
Key policies & its focus areas This policy provides the guidelines to continuously optimize energy use to improve our Energy Management Policy sustainability performance To ensure commitment to Environment, Social and Governance (ESG) principles and ESG Policy leverage the diversity and size of our
Slide 48: Accolades & Awards
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Slide 49: Accolades & Awards
Accolades & Awards ‘India’s Most Trusted Cement Ranked amongst ‘India’s Top 50 Most Ranked amongst ‘India’s Top 3 Most Sustainable Brand 2023’ by TRA Research Sustainable Companies’ Cross Sector by BW Companies’ in the Infrastructure and Engineering Businessworld Sector’ by BW Businessworld Customer
Slide 50: Accolades & Awards
Accolades & Awards Ranked No.2 as India’s Most Ranked amongst ‘India’s Top 50 Most Digital Customer Experience Award Trusted Cement Brand 2023 Sustainable Companies’ Cross Sector by BW 2023 for ‘Best Customer & by TRA Research Businessworld Influencer Engagement’ Safety Award by the Outstanding Safe
Slide 51: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Ambuja Cements Limited (“Ambuja”), the future outlook and growth prospects, and futu