Slide 1: Regulation 30 Cover Letter to Stock Exchanges
Secretarial Division ACC Limited Registered Office No. ACC/Sec./SE/21/0064 Cement House 121, Maharshi Karve Road October 19, 2021 Mumbai - 400 020, India CIN: L26940MH1936PLC002515 National Stock Exchange BSE Limited of India Limited Corporate Relations Phone: +91 22 3302 4321 Fax: +91 22 6631 7458
Slide 2: Investor Presentation: Q3 2021
Investor Presentation : Q3 2021 October 2021 Stock code: BSE: 500410 | NSE: ACC | Reuters: ACC.NS | Bloomberg: ACC:IN
Slide 3: Safe Harbour Statement
Safe Harbour Statement ▪ This presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on the truth, accuracy, completeness, f
Slide 4: Index
Index 1 ACC at a Glance 2 Economy & Sector Update 3 Strategic Priorities 4 Performance Review
Slide 5: ACC at a Glance
ACC at a Glance
Slide 6: Committed for a Net Zero Future
Committed for a Net Zero Future First Indian Cement Company to Sign Net Zero Pledge with Science based Targets Climate and Energy ACC has become the first and only Indian cement company to sign the Business Ambition for 1.5°C along with Science Based Targets. ACC has committed to reduce ▪ 21.3% per
Slide 7: Partner in India's Progress
Partner in India’s Progress A brand that enhances long- term value creation for all stakeholders ACC has been Consistently setting Legacy of active Focused on retail pioneer in the new benchmarks contribution to India’s (contributes ~80% of 34.45 MTPA journey of nation with our progress spanning rev
Slide 8: Sustainable Value Creation through Scale and Innovation
Sustainable Value Creation through Scale and Innovation Environment Operational Social and governance 17 ~6,000 58% Cement plants Employees Clinker Factor 79 56,000 7% Ready mix concrete plants Channel partners Thermal Substitution Rate ~79% >2,00,000 50% Capacity utilisation Lives touched Independe
Slide 9: Delivering Sustainable Growth
Delivering Sustainable Growth Continued focus on differentiated products & solutions Project Parvat continues to remain flagship Working capital maintained at optimum level catering to specific consumer needs to drive pricing programme to reinvigorate culture of Cost through robust monitoring mechan
Slide 10: Economy & Sector Update
Economy & Sector Update
Slide 11: GDP to sharply rebound on account of low base
GDP to sharply rebound on account of low base ▪ GDP forecast at 9.5% for fiscal 2022 (April’21 to Mar’22) o Largely on account of low base o Budgetary focus on capex to support growth in short term and also create platform for medium term growth ▪ India’s GDP growth is expected to see base effect dr
Slide 12: Sectoral Outlook
Sectoral Outlook 2021- 22 (E) 2022- 23 (E) 2021- 22 (E) 2022- 23 (E) 2021- 22 (E) 2022- 23 (E) Housing Infrastructure Industrial /Commercial ▪ Urban housing and real estate to witness growth ▪ National Infrastructure Pipeline projects worth 1.5 ▪ Industrial and commercial construction demand to on l
Slide 13: Strategic Priorities
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Slide 14: Spurring Growth
Spurring Growth Capacity Expansion Projects WHRS Projects Cost Efficiency Projects Capacity expansion projects at Ametha ▪ Company’s committed journey of increasing ▪ Fly Ash Dryer projects at 3 plant locations on (Clinker 2.7 MTPA and cement grinding 1.0 share of green power remains on course track
Slide 15: Innovating Responsibly
Innovating Responsibly Existing Portfolio ECOPact New initiatives pipeline ▪ Leveraging premium products’ share to drive ▪ Low CO2 sustainable concrete ‘ECOPact’ ▪ To further reinforce premium positioning price premium gained wider acceptance in different markets ▪ New innovative and Green cement &
Slide 16: Progressing Digitally
Progressing Digitally Manufacturing - Plants of Tomorrow Logistics & Sourcing Commercial ▪ TIS & PACT implemented & adopted at all plants ▪ TAC :continuous improvement in dashboard for ▪ Dealer adoption of total order bookings at a operational efficiency encouraging pace ▪ MoT pilot initiated at Jam
Slide 17: SD 2030 Goals are our Core Priority
SD 2030 Goals are our Core Priority Our sustainability strategy is led by our Sustainable Development (SD) 2030 Plan and aligned with Holcim Climate Circular Environment Community and energy economy Target 2030 Net specific CO2 emissions : Use 30 million tonnes Water Positive Index – 5 3.5 million –
Slide 18: Driving towards achieving circular economy
Driving towards achieving circular economy Circular Economy PARTNERING FOR CLEANER INDIA: Geocycle Bubble Barrier Co-processing is a ‘zero residue’ technology. First Pilot Successfully Commissioned in Mantola Canal, Agra. ▪ Enhanced usage of MIC (Material in Cement) components (Fly ash, Slag and art
Slide 19: Environment Conservation
Environment Conservation ▪ Reducing freshwater withdrawal through process optimisation, reusing & recycling ▪ Enhance our water harvesting efforts within premises and communities ▪ Close monitoring of water withdrawal consumption and harvesting ▪ Biodiversity Assessment, through Biodiversity Indicat
Slide 20: Caring for the Community
Caring for the Community WASH (Water, Sanitation, Sustainable Livelihood Quality Education Malnutrition Mitigation Health & Hygiene) ▪ New DISHA centre at Chaibasa ▪ 17,418 children provided quality ▪ 5,538 people provided drinking ▪ Cumulatively 12,411 children inaugurated education water facilitie
Slide 21: Caring for the Community
Caring for the Community New Beneficiaries ▪ 45,278 new beneficiaries reached through CSR ▪ Cumulatively since January 2021, through efforts. Health (WASH)+(COVID) projects 1,44,658 ▪ Cumulatively since January 2021, through beneficiaries reached. Housing & Infrastructure projects 33,035 ▪ Cumulativ
Slide 22: Supporting the society during the pandemic
Supporting the society during the pandemic Community health infrastructure support Awareness ▪ 3 Oxygen Plants installation complete at Tikaria, Thondebhavi and Chanda; ▪ 3,49,064 masks produced and 3,29,883 masks distributed ▪ Installation of 5 Oxygen Plants underway at Bargarh, Wadi, Gagal, Lakher
Slide 23: CSR Highlights
CSR Highlights MD & CEO, ACC Limited, visited Lakheri Farmers Meeting in Progress Empowering Women by Capacity Building Strengthening Local Health Systems For Mitigating Malnutrition Safe drinking Water Support to Community Strategic Priorities acclimited.com | 22
Slide 24: Performance Review
Performance Review
Slide 25: Performance Highlights – Q3 2021 (Consolidated)
Performance Highlights – Q3 2021 (Consolidated) ACC delivers strong results amidst cost headwinds Cement Sales Volume RMX Sales Volume Net Sales 6.6 mt 0.68 Mio m3 INR 3,653 crs (1% YoY) (46% YoY) (5% YoY) EBITDA Op. EBIT Margin Profit After Tax INR 712 crs 15.4% INR 450 crs (6% YoY) (0.7pp YoY) (24
Slide 26: Performance Highlights – 9M 2021 (Consolidated)
Performance Highlights – 9M 2021 (Consolidated) Strong performance driven by Project Parvat Cement Sales Volume RMX Sales Volume Net Sales 21.4 mt 2.08 Mio m3 INR 11,677 crs (20% YoY) (36% YoY) (24% YoY) EBITDA Op. EBIT Margin Profit After Tax INR 2,442 crs 17.1% INR 1,582 crs (37% YoY) (3.3pp YoY)
Slide 27: Financial Results – Consolidated
Financial Results – Consolidated Particulars Quarter Ended September 2021 Nine Months Ended September 2021 (all amount in ₹ Crore) Q3 2020 Q3 2021 Change 9M 2020 9M 2021 Change Net Sales 3,468 3,653 5% 9,421 11,677 24% EBITDA 671 712 6% 1,783 2,442 37% EBITDA Margin (%) 19.4 19.5 0.1pp 18.9 20.9 2.0
Slide 28: Income Statement – Cement Business
Income Statement – Cement Business Particulars Quarter Ended September 2021 Nine Months Ended September 2021 (₹/ Ton) Q3 2020 Q3 2021 Change per ton 9M 2020 9M 2021 Change per ton Sales Revenue 4,877 5,058 180 4,814 5,022 208 Other Operating Income 102 140 38 118 113 -5 Total Operating Income 4,980
Slide 29: Performance Analysis - Sales Volume
Performance Analysis - Sales Volume Delivered Growth despite subdued demand environment Cement Volume (Q3) Cement Volume (9M) (Million tonnes) (Million tonnes) 20% 21.38 17.81 1% 6.49 6.57 3Q’20 3Q’21 9M ‘20 9M ‘21 Performance Review acclimited.com | 28
Slide 30: Performance Analysis – Net Selling Price
Performance Analysis – Net Selling Price Better Price Realization led by commercial margin levers Net Selling Price (Q3) Net Selling Price (9M) (₹/ton) (₹/ton) 4% 4% 5,058 5,022 4,877 4,814 3Q’20 3Q’21 9M ‘20 9M ‘21 Performance Review acclimited.com | 29
Slide 31: Performance Analysis – Cost of Materials Consumed
Performance Analysis – Cost of Materials Consumed Inflationary impact partially mitigated through Project Parvat Raw Material Cost (Q3) Raw Material Cost (9M) (₹/ton) (₹/ton) 13% 18% 529 490 435 449 3Q’20 3Q’21 9M ‘20 9M ‘21 Performance Review acclimited.com | 30
Slide 32: Performance Analysis – Power & Fuel Cost
Performance Analysis – Power & Fuel Cost Impacted by global fuel cost headwinds Power & Fuel Cost (Q3) Power & Fuel Cost (9M) (₹/ton) (₹/ton) 26% 13% 1,110 1,165 984 925 3Q’20 3Q’21 9M ‘20 9M ‘21 Performance Review acclimited.com | 31
Slide 33: Performance Analysis – Freight & Forwarding Cost
Performance Analysis – Freight & Forwarding Cost Network optimization, lead & geo-mix improvement mitigated effect of steep rise in fuel prices Freight & Forwarding Cost (Q3) Freight & Forwarding Cost (9M) (₹/ton) (₹/ton) -1% 0.3% 1,272 1,276 1,242 1,234 3Q’20 3Q’21 9M ‘20 9M ‘21 Performance Review
Slide 34: Performance Analysis – Employee Cost
Performance Analysis – Employee Cost Employee Cost (Q3) Employee Cost (9M) (₹/ton) (₹/ton) 7% -9% 297 293 278 268 3Q’20 3Q’21 9M ‘20 9M ‘21 Performance Review acclimited.com | 33
Slide 35: Performance Analysis – Other Expenses
Performance Analysis – Other Expenses Increase led by general inflation, higher packing materials & maintenance cost Other Expenses (Q3) Other Expenses (9M) (₹/ton) (₹/ton) 19% 8% 741 684 769 649 3Q’20 3Q’21 9M ‘20 9M ‘21 Performance Review acclimited.com | 34
Slide 36: Registered Office
Registered Office Cement House, 121, Maharshi Karve Road, Mumbai – 400 020 acclimited.com ACCInd acc-limited ACCCementOfficial