Slide 1: Exchange filing cover letter
File No: 1010/2 August 27, 2022 BSE Limited National Stock Exchange of India Limited P J Towers, Dalal Street, “Exchange Plaza”, Plot No. C-1, Block G Fort Mumbai - 400001 Bandra - Kurla Complex, Bandra (East), Scrip Code: 542216 Mumbai - 400 051 Symbol: DALBHARAT Subject: Investor Presentation - Au
Slide 2: Investor Presentation August 2022
INVESTOR PRESENTATION August 2022
Slide 3: Disclaimer
Disclaimer Certain statements in this presentation describing the Company's objectives, projections, estimates and expectations may be 'forward looking statements' within the meaning of applicable laws and regulations. Although our expectations are based on reasonable assumptions, these forward-look
Slide 4: Table of Contents
PA G E SECTION NO. 01. Dalmia at a Glance 4 02. Industry Outlook 12 03. Company Overview 20 TA B L E O F CO N T E N T S 04. Shareholder Value and Capital Allocation 40 05. ESG 49 06. Appendix 71 3
Slide 5: Dalmia at a Glance
SECTION 01 DALMIA AT A GLANCE 4
Slide 6: Dalmia Group Overview
Dalmia Group Overview Founded in 1939 by Late Shri Jaidayal Dalmia, Dalmia Group is one of the Fastest Growing and Most Profitable Groups in India Fourth-largest cement One of the fastest Second-Largest manufacturing company growing cane-based Refractory Player in India in India multi-product
Slide 7: Dalmia Bharat Limited
DALMIA BHARAT LIMITED - 4th Largest Cement Player in the Fastest Growing Economy in the World 6
Slide 8: Our Vision, Mission, Values
Biodiversity park at our Ariyalur plant Our Vision To unleash the potential of everyone we touch Our Mission To be in the top two in all our businesses on the strength of our people and the speed of our innovation Our Values Integrity Humility Trust & Respect Commitment People. Planet. Perfo
Slide 9: Dalmia Bharat Limited by the Numbers
Dalmia Bharat Limited by the Numbers Fundamentals Financials 37.0 MnT* 22.2 MnT ₹11,286 Cr ₹ 5,059 Cement Capacity Sales Volume Net Sales NSR / Ton 20.9 MnT * 297 MW * ₹ 2,426 Cr ₹ 1,091 Clinker Capacity Captive Power Capacity EBITDA EBITDA / Ton 14 22 21.5% ₹24,055 Cr* Plants States Served EBITDA M
Slide 10: Key Milestones Over The Past Decade
Key Milestones Over The Past Decade Commissioned Expansion into 2.5MnT North East through Past Decade Commenced production greenfield Acquisition of Acquired Kalyanpur of Line 2 at BCW unit in project in Received Calcom and Consistently made significant Cement Limited West Bengal Kadapa, AP investme
Slide 11: Geographic Expansion
Geographic Expansion FY12 3 PRESENT 14 PLANTS IN PLANTS IN 2 STATES 9 STATES 9.0MnT 37.0MnT 4.3MnT NORTH EAST 17.4MnT 2.9MnT EAST WEST 9MnT 12.1MnT SOUTH SOUTH Our Markets Our Markets Existing Plants Existing Plants 10
Slide 12: Growth Snapshot
Growth Snapshot 10 YEAR CAGR* 15% 17% 15% Capacity Revenue EBITDA 4x 5x 4x Aggressive Yet Sustainable Growth Enabled Us to Evolve as the 4th Largest Cement Player In India *FY12-FY22 11
Slide 13: Industry Outlook
SECTION 02 INDUSTRY OUTLOOK 12
Slide 14: Strong Revival In Indian Economy
Strong Revival In Indian Economy India’s underlying economic fundamentals are strong despite the recent short-term turbulence Index of Industrial Production YoY% Growth 19.6% 20.0% Over the last two months, all 15.0% 13.0% 12.3% components within IIP 11.5% witnessed high growth 10.0% especially the
Slide 15: Cement Demand Growth To Be Robust
Cement Demand Growth To Be Robust After a slowdown in last decade, Cement Demand is expected to revive driven by a fresh Housing Cycle, Capex Cycle and Commodity Cycle Housing + Capex Cycle FY14: Taper tantrum Housing Cycle FY17: Demonetization Capex Cycle FY18: GST/RERA Implementation 13.3% Commodi
Slide 16: Key Demand Drivers
Key Demand Drivers Rural Housing Government’s continued push on affordable housing, reflected in rising spending to provide subsidized loans to economically weaker segments of the population will support growth in cement demand & Affordable Housing Target for pending houses to be completed under
Slide 17: Recovery in Real Estate Market
Recovery in Real Estate Market The Residential sector has recorded a 9-year high sales volume in January–June 2022 Residential Unit Sales and Launches in Top 8 Cities in India 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 - H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 201
Slide 18: Infrastructure Demand To Be Key Driver
Infrastructure Demand To Be Key Driver Overall Cement Demand was ~348 MnT in FY22 Infra accounted 27% of total industry demand in FY22 Industry Cement Volumes (MnT) Total Demand Incremental Demand 100.0% 12.0% 30.0% 450 400 80.0% 406 27.0% 25.0% 350 373 348 60.0% 300 336 330 15.0% 5.0% 323 298 250 2
Slide 19: Capex Push of Government to Drive Demand
Capex Push of Government to Drive Demand Union budget FY23`s Capex push as well as continued focus on infrastructure development will boost cement demand Capex by Center (Rs Trillion) 8 7.5 7 6 6 5 4.3 4 3.4 3.1 2.8 2.6 3 2.5 1.9 2 2 1.6 1.6 1.7 1 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Slide 20: National Infrastructure Pipeline (NIP)
National Infrastructure Pipeline (NIP) Breakup of Infra Investment planned Under NIP NIP Envisages Rs 111 lakh crore investment over FY20-FY25 period which would (Rs lakh crore) require doubling the pace of infrastructure investment Other Infra 11.9 Major Part of NIP is towards transportation, energ
Slide 21: Company Overview
SECTION 03 COMPANY OVERVIEW 20
Slide 22: Company Overview
Company Overview Integrated Model with State-of- Lowest Cost Producer with Proven Multi-tier Governance Structure Pioneer in the Area of the-Art Production Facilities and Track Record of Financial Overseen by Diverse Board Sustainability Supply Chain Performance 01 03 05 07 02 04 06 Diverse Product
Slide 23: Pioneer in the Area of Sustainability
01 Pioneer in the Area of Sustainability Clinker Factor (%) Dalmia has one of the lowest net carbon footprint in Global cement 76 industry - 468 CO₂ emission-Kg/ton in Q1FY23 68 61 First cement group to commit to become carbon negative by 2040 Largest producer of slag cement in India with ~80% blend
Slide 24: Globally Recognized for its Focus on Sustainability
01 Globally Recognized for its Focus on Sustainability COP 26 Business Leader - one of the 16 Global Companies (only 2 from India) Ranked #1 by CDP in global cement sector on business readiness for a low carbon economy transition DALMIA BELIEF Only cement company in the world to be invited to
Slide 25: Diverse Product Portfolio with Strong Brand Recognition
02 Diverse Product Portfolio with Strong Brand Recognition Product mix, FY22 OPC Consumer Brands 18% 21% PPC 25% PCC 36% PSC AA+ Category Produced using Protects the premium product for superior ingredients to construction from high strength provide high strength harsh environmental Largest pr
Slide 26: Diverse Product Portfolio with Strong Brand Recognition
02 Diverse Product Portfolio with Strong Brand Recognition East (Orissa) “A+” 7% Dalmia DSP, Concreto, ACC F2R ₹25/bag “A” 22% Dalmia Ultratech ACC&Ambuja Nuvoco ₹65/bag “B” JK Lakshmi Birla Corp Emami South (TN Market) North East “A+” “A+” 5% Dalmia DSP 5% Dalmia DSP Ramco Super Crete Star Antirust
Slide 27: Consistent Increase in Share of Premium Product
02 Consistent Increase in Share of Premium Product DSP % of Trade Sales 31% 26% Since its launch, Dalmia DSP has been 20% 20% 19% immensely successful in East and North 18% 17% East Region 13% 17% DSP contributes 10-15% higher 12% 10% profitability than other products 13% 9% Constant increase
Slide 28: Diverse Product Portfolio with Strong Brand Recognition
02 Diverse Product Portfolio with Strong Brand Recognition A testament of the quality of our cement is its usage in construction of some of the breakthrough projects in the country Bogibeel Bridge, Assam Hirakud Dam, Odisha Chennai Metro, Tamil Nadu The largest Rail and Road Bridge in India World's
Slide 29: Diverse Product Portfolio with Strong Brand Recognition
02 Diverse Product Portfolio with Strong Brand Recognition Bangalore Metro Bangalore Mysore Highway Kundankulam Nuclear Plant 5.2 lac Passengers per day. Subansiri HE Project Teesta Hydro Electric Project Kalinga Stadium 2000 MW project in Arunanchal Pradesh 500 MW project Multi Purpose Internationa
Slide 30: Integrated Model with State-of-the-Art Facilities
03 Integrated Model with State-of-the-Art Facilities Raw Material Power Plants Limestone Power Source Location Each integrated plant has captive ~2/3 of power need met by 10 Well Balanced Capacity staggered at mines to extract limestone Captive Power Plants central locations Avg. Life of Min
Slide 31: One of most Efficient and Robust Supply Chain
03 One of most Efficient and Robust Supply Chain Logistics Optimization Initiatives in FY22 Supply Chain by Numbers Introduced supply chain optimizer tool to improve our network 8,000+ Truck Fleet Institutionalized reverse auction across plants 300+ Warehouses Daily Truck Ensured stock transfer thro
Slide 32: Focused on Usage of Smart Technology
03 Focused on Usage of Smart Technology Focused on automation and mobility and cloud solutions, strengthening supply chain management Plant Logistics Transaction Lifecycle (Suvidha App) Technology Stack Developed an in-house app to track and control the entire logistical 02 Dealers get access real-t
Slide 33: Ability to Add Capacity at Lowest Cost
04 Ability to Add Capacity at Lowest Cost Organic Expansion South Consolidation & Acquisitions under New Capacity Addition $75/T geographical IBC in East Current 38.0 diversification $40/T $57/T 120% Capacity $91/T 33.0 100% 35.9 37.0 MnT 94% 100% 28.0 30.9 78% 26.5 26.5 80% Average 23.0 25.0 25.0 2
Slide 34: Lowest Total Cost Producer of Cement in India
05 Lowest Total Cost Producer of Cement in India Raw Material Cost/T Power & Fuel Cost/T Rs/T Key drives Rs/T include long 780 754 term tie-ups 1,156 1,200 748 725 742 726 675 999 979 660 637 674 625 659 648 655 with suppliers, 893 922 887 894 824 812 798 focus on 649 740 608 blended cement along wi
Slide 35: Proven Track Record of Financial Performance
05 Proven Track Record of Financial Performance Sales Volume (MnT) Sales Revenue 11,286 20.70 22.20 Consistent Capacity 9,674 10,110 18.69 19.29 9,484 16.96 additions have 8,580 15.30 7,447 12.79 enabled us drive 6,411 volume and revenue growth FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19
Slide 36: Proven Track Record of Financial Performance
05 Proven Track Record of Financial Performance Net Debt (Rs Cr) Net Debt/EBITDA 3.76 6,052 Our resiliency has 5,241 2.76 enabled us to 3,514 3,124 Delever our Balance 1.73 1.61 2,825 1.34 Sheet and provided 154 Flexibility for future 0.06 FY16 FY17 FY18 FY19 FY20 FY21 FY22 expansion FY16 FY17 FY18
Slide 37: Market Leader in Highly Attractive East India Market
06 Market Leader in Highly Attractive East India Market Capacity Break Up - East Per capita cement consumption of the GDP growth of eastern regions is well eastern regions is well below Pan-India above Pan-India GDP growth(1) Others 20% 17% East 150 – 175 kg 17% East: 10.9% 13% All India 225 –
Slide 38: Multi-Tier Governance Structure
07 Multi-Tier Governance Structure Audit Committee Risk Management Committee Stakeholders’ Relationship Committee Group Governance Committee Nomination and Remuneration Committee Buy Back Committee Board of Corporate Social Responsibility Committee Directors Executive 11 member team
Slide 39: Overseen by a Reputed Board
07 Overseen by a Reputed Board Pradip Kumar Khaitan Yadu Hari Dalmia Gautam Dalmia Puneet Dalmia Sudha Pillai Virendra Singh Jain Niddodi Subrao Rajan Chairman & Independent (Non-Executive Director) Managing Director Managing Director & CEO Independent Director Independent Director (Non-Executive Di
Slide 40: Managed by a Diverse Leadership Team
07 Managed by a Diverse Leadership Team Mahendra Singhi Rajiv Bansal Dharmender Tuteja Udaiy Khanna Sanjay Wali Ganesh Wamanrao Dr. Arvind Bodhankar (MD & CEO – DCBL) President and Chief Chief Financial Officer Head - Human Resources Head – Sales, Marketing & Jirkuntwar .Head – ESG and Chief Risk Tr
Slide 41: Shareholder Value and Capital Allocation
SECTION 04 SHAREHOLDER VALUE AND CAPITAL ALLOCATION 40
Slide 42: Drivers of Value Creation
Drivers of Value Creation GROWTH PROFITABILITY RESPECT & CASH FLOW GENERATION HUMAN CAPITAL DIGITIZATION ACCELERATED FOCUS ON ESG 41
Slide 43: Strategic Imperatives
Strategic Imperatives PAN India Pure Play Cement Company Significant presence in every market wherein Dalmia operates Strategic Grow capacity at a CAGR of 14% - 15% over the next decade to reach 110-130 MnT by 2031 Vision Emerge as one of the most profitable & environment friendly company in
Slide 44: Disciplined and Value Focused Capital Allocation
Disciplined and Value Focused Capital Allocation Capital Allocation Framework Up to 10% of the Operating Cash Flow towards shareholders’ return which would include a mix of both dividend & share buy-backs Up to 10% of Operating Cash Flow towards an Innovation & Green Energy Fund which would be chann
Slide 45: Innovation and Green Energy Fund
Innovation and Green Energy Fund Innovation in Logistics through use of digital tools and cutting edge technology Investment in Industry 4.0 and IIoT for process optimization, enhancing productivity, superior scheduling & load balancing and performance management Nurture initiatives which would help
Slide 46: Capex Plan
CAPEX PLAN 45
Slide 47: Cement Capacity Expansion Plan – 49 MnT by FY24
Cement Capacity Expansion Plan – 49 MnT by FY24 Region Plant Capacity Commissioning +1.4 MnT Closing Capacity FY22 35.9 NORTH EAST East Bokaro, JH 0.6 North East Adhunik, ML 0.2 Q1FY23 East Rajgangpur, OR 0.3 Closing Capacity Q1FY23 37.0 East Kapilas, OR 0.4 East Medinipur, WB 0.6 FY23 South Belgaum
Slide 48: Clinker Capacity Expansion Plan
Clinker Capacity Expansion Plan FY22 Q1FY23 FY24E SOUTH 7.8 9.0 10.4 EAST 6.8 7.4 8.3 NORTH-EAST 2.3 2.4 2.9 WEST 2.0 2.1 2.1 TOTAL 18.9 20.9 23.7 (Figures in MnT) 47
Slide 49: Estimated Capex Breakdown
Estimated Capex Breakdown Ongoing New capacity Sustainability Others Capex 10 MnT including Green Initiatives Including Mining 7.75 MnT clinker Land, Maintenance debottlenecking Capex/ ROI expenses ₹1,000 - ₹1,200 Cr* ₹4,700 - ₹5,000 Cr ₹1,000 - ₹1,200 Cr ₹1,800 - ₹2,000 Cr* *Augmentation for limest
Slide 50: ESG
SECTION 04 ESG 49
Slide 51: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Environmental, Social & Corporate Governance (ESG) has been an central pillar of our business strategy Environmental Social Governance Our specific net emissions, 468 kg CO2/ Corporate Social Responsibility activities Institutionalized good governance led t
Slide 52: Leading the Cement World Globally in Carbon Emissions
Leading the Cement World Globally in Carbon Emissions 374 468 Dalmia Bharat Dalmia Bharat Net Eastern Operations 608 560 CO2Emissions Net CO2Emissions India Average* Global Average* * Source: GNR data published in 2021 representative of 22% cement production in the world. ** Source: GNR data publish
Slide 53: Carbon Negative Roadmap
Carbon Negative Roadmap Dalmia Determined Contribution (DDC) 100% blended cement production by 2025 Grey to Green Roadmap for Carbon Negative Transition RE 100 commitment to transition to 100% renewable power by 2030 EP 100 commitment to double energy productivity by 2030 468 Q1FY23 EV 100 commitmen
Slide 54: Carbon Negative Roadmap
ws Dalmia Carbon Negative Roadmap onan Resource efficiency through circular economy concept Energy efficiency Carbon yp Negative 2040 \ Green Hydrogen = Solar Calcination Deep decarbonisation Novel Cements 53
Slide 55: Renewable Power To Play A Critical Role in ESG Journey
Renewable Power To Play A Critical Role in ESG Journey 200 WHRS Capacity- MW Solar Capacity - MW 180 101 160 140 FY23 - WHRS Commercialization Total Renewable Power - MW 120 Q1FY23 5.4 Rest of FY23 35.4 100 40.8 68 80 60 32 FY23 - Solar Commercialization 40 Q1FY23 36.0 10 Rest of FY23 32.5 2
Slide 56: Dalmia at UN Climate Conference (COP-26)
Dalmia at UN Climate Conference (COP-26) First company from emerging economies in heavy-industry sector to join First Movers Coalition (FMC) as founding member Launched formally in COP-26 and backed by US Government, it will emerge as a platform to shape public and private sector green procureme
Slide 57: MoU with FLSmidth, Denmark
MoU with FLSmidth, Denmark To Develop Breakthrough Innovations To Support Sustainability In Cement Industry, Dalmia Cement Signs MoU With FLSmidth, Denmark Under Green Strategic Partnership Of India And Denmark Government The company has signed a MoUwith FLSmidthA/S, a leading supplier of technolo
Slide 58: First Triple Joiner Globally of RE 100, EP 100 and EV 100
First Triple Joiner Globally of RE 100, EP 100 and EV 100 A global initiative bringing A global campaign to A global global initiative to together businesses double Energy Productivity accelerate the transition committed to 100% by 2030 to Electric Vehicles renewable electricity by 2030 One of One o
Slide 59: First Cement Company to join Globally
- First Cement Company to join Globally A global campaign towards a 1.5°C future at UN Climate Action Summit 58
Slide 60: Globally ranked No. 1 by CDP
Globally ranked No. 1 by RANK: 1 SCORE: 4.64 In line with the Paris Agreement, Dalmia emerged as one of the world’s greenest cement manufacturing companies RANK: 2 SCORE: 5.62 RANK: 3 Out of the 13 cement majors globally, Dalmia Bharat ranked at the SCORE: 5.90 top of the Cement Sector League Table
Slide 61: Industry Leading Water Positive Operations
Industry Leading Water Positive Operations OUR STRATEGY OUR RESULTS 20x Air cooling instead of water cooling in CPP 13.3x 2025 5x 2022 2019 Rain water harvesting FY22* Million m3 Zero water discharge at Freshwater Water withdrawal 3.0 plants Total Water withdrawal 4.0 Water recycled 1.1 Intervention
Slide 62: Usage of Industrial Wastes as Raw Material or Fuels
Usage of Industrial Wastes as Raw Material or Fuels Highest Alternative Raw Material consumption rate globally in the sector 4.0 MnT fly ash 0.17 MnT Synthetic Gypsum Dalmia Bharat is a Total Waste and 4.29 MnT Steel Slag Plastic Waste 45,710 Ton Lime Sludge Recycling Positive Company 241,559 Ton Re
Slide 63: Sustainability Measures and Its Impact
Sustainability Measures and Its Impact Measures Impact Natural resource conservation by optimal use of Less Limestone and energy consumption /ton of Industrial wastes from other industries such as Steel, cement Thermal Power, Aluminum Became largest producer of Portland Slag cement in Strate
Slide 64: Sustainability - Awards & Accolades
Sustainability - Awards & Accolades Dalmia Bharat has been consistently respected and recognized for its focus on Sustainability Green Accreditation Corporate Category: Sustainability in Green Product Rating for Integrated Habitat Cement Sector Assessment (GRIHA) council Apex India Green Leaf Award
Slide 65: Redefining Corporate Governance
Redefining Corporate Governance First cement company in Appointed one of the Segregated the family Use technology to track Implemented a India to formally Big4 accounting firms, office and the corporate and monitor every organization wide Risk announce a Capital EY, as its Internal office
Slide 66: Governing Polices at Dalmia
Governing Polices at Dalmia Code of Conduct for all members of Board of Determination of Materiality of Events Directors and Senior Management Code of Conduct to regulate, monitor and report Dividend Distribution trading by insider Policy for Preservation of documents Code of Practices and Procedure
Slide 67: First Indian Cement Company to Have its CSR Processes Assured on ISO 26000
First Indian Cement Company to Have its CSR Processes Assured on ISO 26000 Major Initiatives Dalmia Institute of Knowledge & Skill Harnessing DIKSHa @ 11 Centers in 7 States | 6,435 (DIKSHa), a skill training center, actively involved in completed training | 5,651 job offered as of 31st imparting
Slide 68: Theory of Change Designed to Ensure CSR Initiatives
Theory of Change Designed to Ensure CSR Initiatives Help Achieve Our Vision & Mission Creating Opportunities Activities Expected Outcome Impact Skill training in the farm Farm Schools for Social - Improved quality of life through sector aiming at improving % increase in yield skilling access to basi
Slide 69: CSR Program - Awards & Accolades
CSR Program - Awards & Accolades Our CSR Program has been consistently recognized by several institutional bodies and forums Commendation for Significant GMF Pinnacle Award Achievement in CSR BCW Unit received Platinum Award for CSR CII-ITC Sustainability Awards 2019, 2017, initiatives 2022 2016, 20
Slide 70: CSR Programs Covered by International Publications
CSR Programs Covered by International Publications Case Study report published Recognition from CII and Case Study published by Harvard by IFC NITI Aayog Business Review The CSR initiatives taken up by DBL CII and NITI Aayog recognized the CSR The initiatives taken up by DBL in soil appeared in the
Slide 71: Our CSR Partners
Ss Our CSR Partners Dalmia . WEP Oy = Schneider Aan QO O) Electric A ‘y 7 WM atafset NABARD 2030, WORLD BANK GROUP aN ie ate nan DGGE) ees 2S. BCS capnenncemant CODISHA SKILL DEVELOPMENT AUTHORITY Qa India Climate ‘ ‘ Ol deat for a. al 2 CSRBOX ee Oe ie... x y eae H Nirmaa WaAiide et Action Sparsha
Slide 72: Appendix
SECTION 06 APPENDIX 71
Slide 73: Key Financials
Key Financials FY16 FY17 FY18 FY19 FY20 FY21 FY22 Cement Capacity - MnT 25.00 25.00 25.00 26.50 26.50 30.75 35.9 Sales Volume - MnT 12.79 15.30 16.96 18.69 19.29 20.70 22.2 Net Sales - Rs Cr 6,411 7,447 8,580 9,484 9,674 10,110 11,286 EBITDA - Rs Cr 1,592 1,894 2,036 1,942 2,106 2,762 2,426 EBITDA M
Slide 74: Adjusted RoCE and RoE
Adjusted RoCE and RoE REPORTED ADJUSTED (in Rs Cr) FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBITDA (inclusive Other Income) 2,292 2,186 2,323 2,943 2,581 2,292 2,186 2,323 2,943 2,581 Less : - Depreciation as per books (1,213) (1,296) (1,528) 1,250 1,236 (1,213) (1,296) (1,528) 1,250 1,236
Slide 75: Thank You
CONTACT INFORMATION Thank You Corporate Office: 11th & 12th floor, Hansalaya Building, 15, Barakhamba Road, New Delhi – 110001 e: investorrelations@dalmiabharat.com w: www.dalmiacement.com