Ultratech Cement Limited · NSE:ULTRACEMCO
Ultratech Cement — Investor Presentation (February 2023)
48 slides from Ultratech Cement's investor presentation, Feb 28, 2023
Slide 1: Regulation 30 disclosure cover letter
28th February, 2023 BSE Limited The Manager Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers, The National Stock Exchange of India Limited Dalal Street, “Exchange Plaza”, Bandra-Kurla Complex, Mumbai 400 001. Bandra (East), Mumbai 400 051. Tel.: 22721233/4 Tel.: 2659823
Slide 2: UltraTech Cement Limited - Big in Your Life
UltraTech Cement Limited BIG IN YOUR LIFE STOCK CODE: BSE: 532538 NSE: ULTRACEMCO REUTERS: UTCL.NS BLOOMBERG: UTCEM IS / UTCEM LX
Slide 3: Contents
Contents 01 02 03 04 Aditya Birla Group Indian UltraTech Operational and Overview Cement Sector Landscape Financial Performance GLOSSARY: MNT – Million Metric Tons, LMT – Lakh Metric Tons, MTPA – Million Tons Per Annum, MW – Mega Watts, Q1 – April-June, Q2 – July-September, Q3 – October-December, Q4
Slide 4: Aditya Birla Group - Overview
Aditya Birla Group - Overview
Slide 5: Aditya Birla Group - Overview
Aditya Birla Group - Overview ◼ # 1 cement player in India ◼ 3rd largest cementplayer globally (ex - China) PREMIUM GLOBAL ◼ # 2 in VSF globally ◼ A global metal powerhouse CONGLOMERATE ◼ # 1 in chlor-alkali inIndia ◼ # 1 in aluminum rolling globally USD ~60 billion* Corporation In the League of For
Slide 6: UltraTech Cement
UltraTech Cement India’s Largest Selling CementBrand Largest RMC manufacturer in Market Capof FY22 ConsolidatedRevenue 3rd largest cementplayer India with 200+ plants ~USD 24bn* ~USD 7.1 bn globally (ex - China) Different Products to provide complete Leading Player of White ~1.9 bn bags of cement ~7
Slide 7: Building the Sustainable Future
Building the Sustainable Future Enhanced Stakeholder Value VISION To be The Leader in Building Solutions Socially responsible Profitable growth Strong financials Premium brand Market leader Innovation Sustainability MISSION To deliver superior valueto stakeholders on the four pillarsof Customer Team
Slide 8: Diversified product portfolio catering a full suite of building solutions
Diversified product portfolio catering a full suite of building solutions Conventional: Positioning cement at Contemporary: Providing an umbrella the core of all construction Building solutions of related construction products and services Current capacity Leading player 200+ RMC plants in 3,302 out
Slide 9: Grey Cement: Balanced growth through organic and inorganic expansion
Grey Cement: Balanced growth through organic and inorganic expansion Capacity evolution (In mtpa) 121.3 mtpa Organic Inorganic 121.3 ◼ Acquisition of Jaypee Cement (21.2 mtpa), Binani Cement (6.25 mtpa), Century Cement (14.6 mtpa) ◼ Organic Capacity addition: 8.2 mtpa 68.9 ◼ 3rd largest global cemen
Slide 10: Birla White: Building a Robust Portfolio
Birla White: Building a Robust Portfolio Products Range 2001 2002-2006 1988 Launch of VAPs, White Cement White Putty Textura, Levelplast 9 2018-2022 Launch of VAPs 2012-2014 Fragrance Putty Launch of Pre-cote, Waterproof/Bioshield New Putty Facility putty White cement based liquid primer 9
Slide 11: UltraTech RMC
UltraTech RMC Product offering based on the requirement Performance Usage based Decorative Green based Concrete Concrete Concrete Concrete ◼ UltraTech is the first commercial RMC manufacturer in the country to adopt concrete recycling technology. ◼ UltraTech is India’s first company to meet the requ
Slide 12: UltraTech Building Solutions
UltraTech Building Solutions One-stop building solution for the retail customer 3,302 UltraTech Helps to increase the share of Building Solutions outlets customer wallet to 60% + Benefits for Home Builders ◼ Convenience, trust empowerment Benefits for Dealers ◼ Increase in earning capacity ◼ Better
Slide 13: UltraTech Building Products
UltraTech Building Products Dry Mix Mortars Environment Synergy friendly ◼ In line with our vision ◼ Environment (M-Sand helping ‘To be THE LEADER in conserve sand beds; less water Building Solutions’ needed in curing) ◼ Forward integration of ◼ Society (Homogenous end the cement business product; b
Slide 14: Board of Directors (Independent Directors)
Board of Directors (Independent Directors) Arun Adhikari ◼ Alumni of the Indian Institute of Technology, Kanpur and the Indian Institute of Management, Calcutta IndependentDirector ◼ Areas of expertise - sales and marketing, culminating in general management and leadership roles ◼ Masters in Law fro
Slide 15: Board of Directors
Board of Directors ◼ Chairman of the Aditya Birla Group since 1995 Kumar MangalamBirla ◼ Chairs the Boards of all the Aditya Birla Group’s major companies in India (Hindalco, Grasim, Aditya Birla Capital and UltraTech Cement) and globally; Global companies include Novelis, Birla Carbon, Aditya Birla
Slide 16: Management Team
Management Team ◼ A BE (Hons.) in Mechanical and an MBA from FMS, Delhi. He has done his AMP from Wharton ◼ He has an overall experience of over 37 years and with the Group for 28 years. Vivek Agarwal ◼ A veteran with the Cement Business of the Group, he has played a key role in the Post-Merger Inte
Slide 17: Shareholding Pattern
Shareholding Pattern 6 1 Promoter Group 18 Foreign Portfolio Investors (FPI) and Others As on Mutual Fund (MF), Institutions, Insurance and 31st December, Bodies Corporate 2022 59 Other Public Holding 15 GDRs Key Foreign Portfolio Investors (FPI) Key Domestic Mutual Funds, Insurance and Institutiona
Slide 18: Indian Cement Sector
Indian Cement Sector
Slide 19: Indian Cement Industry - Overview
Indian Cement Industry - Overview …but remains a highly underpenetrated market India is the second largest cement …but remains a highly underpenetrated market producer in the world… Global cementproduction (per capita cement consumption in kg) 1650-1700 World average : 500-550 300-320 280-300 280-30
Slide 20: Standalone local market sizes comparable to key cement producing countries
Standalone local market sizes comparable to key cement producing countries Latest Cement Capacity (mtpa)1 North India: ~111 mtpa Brazil: ~100 mtpa East India: ~121 mtpa Vietnam: ~119 mtpa Central India: ~75 mtpa Mexico: ~60 mtpa West India: ~79 mtpa Italy + Germany: ~79 mtpa South India: ~176 mtpa T
Slide 21: All segments indicating a positive demand environment
All segments indicating a positive demand environment Industrial & Commercial Sectoral demand growth CAGR: FY22-FY27 ~ 11-12% Urban Housing Industrial & Commercial ~5-6% ~24-26% Segmental Infrastructure mix in Urban Housing ~7-8% ~26-27% Demand (FY22) Rural Housing ~7-8% Infrastructure ~8-9% Rural H
Slide 22: Union Budget 2023 Highlights
Union Budget 2023 Highlights Agriculture credit target increased from 18 lakh crs to 20 Capital outlay of Rs 2.4 lakh crs for Railways vs Rs 1.37 lakh lakh crs. crs in FY23. Urban planning reforms for states and cities to transform The outlay for PM Awas Yojana (PMAY) is being enhanced by them into
Slide 23: UltraTech Landscape
UltraTech Landscape
Slide 24: UltraTech - India Footprint
UltraTech - India Footprint ◼ 24 Integrated Units1 (IU) ◼ 28 Grinding Units2 (GU) ◼ 8 Bulk Packaging Terminals3 (Sea + Rail) ◼ 1 White Cement & 3 Putty Unit ◼ 5 Jetties Grey Cement Capacity (mtpa) UTCL Capacity UTCL UTCL Industry Zones As on Sharein Mix Capacity December’22 Industry North 25.7 21% ~
Slide 25: UltraTech – Contributing to build a strong nation
UltraTech – Contributing to build a strong nation Grey Cement Capacity (mtpa) Phase I Phase II Zones Mar-20 Mar-25 Expansion Expansion North 23.8 2.7 4.4 30.9 Central 23.3 5.1 7.3 35.7 East 16.2 10.3 5.2 31.7 West 27.7 1.8 0.0 29.5 South 20.5 0.0 5.7 26.2 All India 111.35 19.90 22.60 153.85 Grey cem
Slide 26: End-to-end capabilities with integrated operations
End-to-end capabilities with integrated operations Strong manufacturing capability with control over supply chain Raw material Captive power generation Production Capacity Limestone ◼ Captive power plant generates 1,188 MW of Particulars UOM Current ◼ Key input for manufacturing cement power Grey Ce
Slide 27: Nationwide reach with strong logistics presence across India
Nationwide reach with strong logistics presence across India ~5.0 mn bags dispatched per day in India (FY22) > 30,000 destinations ~61% lifting by GPS enabled fleet Integrated model ~30,000+ orders processed daily Integrated Unit Grinding Unit Bulk Terminals Jetty Jetty Inland water transport One of
Slide 28: Extensive Technical Support to the Distribution Network
Extensive Technical Support to the Distribution Network ◼ Over 1,600 personnel deployed to provide technical support to home builders, engineers, architects, contractors ◼ Mobile concrete vans providing on-site testing, civil engineering, tips and advisories Homebuilders ▪ Provides construction tips
Slide 29: Digitally connected
Digitally connected ◼ One UltraTech: Easy ordering and real time tracking, ◼ Platform to engage with dealers, single view of data across various parameters retailers, masons, contractors, ◼ UltraTech - Prashikshan Pahal: To provide basic architects knowledge about construction procedures, materials
Slide 30: ESG at UltraTech
ESG at UltraTech
Slide 31: Progressing towards our sustainability targets
Progressing towards our sustainability targets Climate and Circular Environment Green Energy Economy Energy CO2 WASTE WATER Green Power ESG Metric Reduced Recycled Positive Capacity [kg CO2/t cement] [MnT] [Times] [MW] WHRS : FY22 167 ^ Performance* 582 -2% 24.1 +16% 3.8x -4% Renewable : +47% 269 ^
Slide 32: Carbon Emission reduction
Carbon Emission reduction Scope 1 Target Achieved Key Steps leading to reduction in emissions Carbon 2032 till 2022 Emission reduction 27% 7% Increase in alternative fuel and clean energy Specific Net Direct GHG emissions Adoption of emerging technologies 2016-17 2020-21 2021-22 2031-32 7% 27% Incre
Slide 33: Board Structure and Compliance
Board Structure and Compliance Shareholders Independent Directors 50% Board of Directors Nomination, Remuneration and Stakeholders Woman Directors 30% Audit Relationship Compensation Risk Management Corporate Social Board Attendance >90% Finance and Sustainability Responsibility Executive Management
Slide 34: Policies governing our business
Policies governing our business 1. Sustainability Policy 11. Anti-Harassment and discrimination policy 2. Code of Conduct 12. Supplier Code of Conduct 3. Tax Policy 13. Human Rights Policy 4. Policy on Related Party Transaction 14. Safety Policy 5. Whistleblower Policy 15. Occupational Health Policy
Slide 35: Financial Statistics
Financial Statistics
Slide 36: Key Performance Trends - Consolidated
Key Performance Trends - Consolidated Grey Cement Sales (Million Tonnes) and Net Sales (Rs Crs) Capacity Utilisation (%) 90% 54293.40 54184.81 54076.23 53967.64 53859.05 53750.47 53641.88 53533.29 53424.71 51708 95.00 92.53 53316.12 53207.53 53098.95 52990.36 52881.77 52773.18 52664.60 52556.01 5244
Slide 37: Key Performance Trends - Consolidated
Key Performance Trends - Consolidated EBIDTA (Rs Crs) Normalised PAT (Rs Crs) 13000.00 12978.00 12956.00 12934.00 12912.00 12890.00 12868.00 12846.00 12824.00 12802.00 12780.00 12758.00 12736.00 12714.00 12302 12022 6500.00 6487.00 6474.00 6461.00 6448.00 6435.00 6422.00 6409.00 6396.00 6383.00 6370
Slide 38: Grey Cement Cost Trends – India Operations
Grey Cement Cost Trends – India Operations Energy Cost (Rs / Mt) Comparative Cost (TPP / WHRS ) 6.50 6.00 5.80 1270.00 1260.00 1250.00 1240 5.50 1240.00 1230.00 1220.00 4.90 4.80 1210.00 1200.00 5.00 4.50 4.50 1190.00 1180.00 1170.00 4.30 1160.00 1150.00 1140.00 4.50 1130.00 1120.00 1110.00 1065 3.8
Slide 39: Grey Cement Cost Trends – India Operations
Grey Cement Cost Trends – India Operations Raw Materials Cost (Rs/ Mt) Logistics Cost (Rs / Mt) 550.00 531 1240.00 1230.00 1214 540.00 1220.00 1210.00 1187 530.00 1200.00 1190.00 1144 1158 520.00 504 1180.00 1170.00 1124 510.00 491 493 1160.00 1150.00 500.00 1140.00 1130.00 1099 490.00 464 1120.00 1
Slide 40: Key Inputs: Historical Price Trends
Key Inputs: Historical Price Trends Pet coke Price Trend 2000 1731 1766 300 1450 1573 1327 250 1500 1089 1096 1053 1011 1026 985 978 1019 1099 231 200 914 913 937 952 208 224 1000 114 98 193 193 150 116 95 91 80 70 110 142 70 71 87 123 100 500 50 0 0 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Slide 41: EBITDA PMT Trend
EBITDA PMT Trend 1689 1651 99 1478 1449 1460 198 1438 1394 65 1324 68 1387 88 1299 1262 108 1251 70 31 1178 58 1159 51 1122 1090 103 82 1094 1051 40 1036 89 32 131 70 926 945 98 98 866 45 57 54 900 1413 1169 1453 1381 1330 1062 1138 1266 1248 812 1069 1020 1159 1356 1372 1590 1324 939 990 953 869 FY
Slide 42: Quarterly Performance Trends – India Operations
Quarterly Performance Trends – India Operations Rs Crs Particulars Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 Q1FY22 Q4FY21 Q3FY21 Q2FY21 Q1FY21 Q4FY20 Q3FY20 Capacity (MTPA) 121.4 115.9 114.6 114.6 112.6 111.4 111.4 111.4 111.4 111.4 111.4 111.4 109.4 Total Sales Volume (MnT) 24.8 22.2 24.2 26.5 22.
Slide 43: Annual Performance Trends – India Operations
Annual Performance Trends – India Operations Rs Crs Particulars FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY14 FY13 FY12 Capacity (MTPA) 114.6 111.4 111.4 109.4 85.0 66.3 64.7 60.2 54.0 50.9 48.8 Total Cement Volume (MnT) 89.5 82.6 78.8 82.4 60.6 50.2 49.3 46.1 42.6 41.7 41.7 Net Sales 49,615 42,578 3
Slide 44: Annual Performance Trends – India Operations
Annual Performance Trends – India Operations Rs Crs Financial Position Dec-22 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY14 Net Fixed Assets (Incl. Goodwill) 61,407 59,008 56,161 57,681 58,613 40,782 24,387 24,499 23,632 18,650 Investments in Subs/Asso/JVs 3,139 2,183 2,118 772 759 751 746 725 730 55
Slide 45: Quarterly Performance Trends - Consolidated
Quarterly Performance Trends - Consolidated Rs Crs Particulars Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 Q1FY22 Q4FY21 Q3FY21 Q2FY21 Q1FY21 Q4FY20 Q3FY20 Capacity (MTPA) 126.8 121.3 120.0 120.0 118.0 116.8 116.8 116.8 116.8 116.8 116.8 116.8 115.4 Total Sales Volume (MnT) 25.86 23.1 25.0 27.7 23.1 2
Slide 46: Annual Performance Trends - Consolidated
Annual Performance Trends - Consolidated Rs Crs Particulars FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY14 FY13 FY12 Capacity (MTPA) 120 116.8 116.8 115.4 89.0 70.3 67.7 63.2 57.0 53.9 51.8 Total Cement Volume (MnT) 94.0 86.4 83.1 86.0 64.6 53.7 52.6 49.4 45.8 44.7 44.9 Net Sales 51,708 44,239 41,781
Slide 47: Annual Performance Trends – Consolidated
Annual Performance Trends – Consolidated Rs Crs Financial Position Dec-22 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY14 Net Fixed Assets (Incl. Goodwill) 64,141 61,606 58,775 60,258 61,200 43,332 27,124 27,233 26,239 21,057 Investments in Subs/Asso/JVs 1,714 101 74 47 44 34 23 15 21 21 Net working Ca
Slide 48: Disclaimer
Disclaimer Statements in this ‘presentation’ describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Impor
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