Dalmia Bharat Ltd. · NSE:DALBHARAT
Dalmia Bharat — Investor Presentation (September 2021)
60 slides from Dalmia Bharat's investor presentation, Sep 20, 2021
Slide 1: Filing cover letter: Investor Presentation September 2021
newthink! cement! sugar! refractories! power! September 20, 2021 File NO - 1010/01 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), Mumbai – 400 051 Scrip Code: 542216 Symbo
Slide 2: Investor Presentation September 2021
INVESTOR PRESENTATION September 2021
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. Company Overview 10 03. Shareholder Value and Capital Allocation 27 TA B L E O F CO N T E N T S 04. ESG 36 05. Appendix 56 3
Slide 5: Dalmia at a Glance
SECTION 01 DALMIA AT A GLANCE 4
Slide 6: Our Vision, Our Mission, Our 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 7: Dalmia by the Numbers
Dalmia by the Numbers Fundamentals Financials 30.75 MnT 20.7 MnT ₹10,522 Cr ₹ 4,872 Cement Capacity Sales Volume Net Sales NSR / Ton 18.7 MnT 209 MW ₹ 2,783 Cr ₹ 1,333 Clinker Capacity Captive Power Capacity EBITDA EBITDA / Ton 13 21 26.4% ₹42,602 Cr* Plants States Served EBITDA Margin Market Cap 32
Slide 8: Key Milestones Over The Past Decade
Key Milestones Over The Past Decade Past Decade Expanded in Received Fully acquired Acquired Kalyanpur Western India with investment Bokaro Jaypee Consistently made significant Cement Limited acquisition of from KKR Cement investments to expands capacity Murli Industries and diversify geographic foo
Slide 9: Geographic Expansion
Geographic Expansion FY11 3 FY21 13 PLANTS IN PLANTS IN 2 STATES 9 STATES 9MnT 30.75MnT* 4.1MnT NORTH EAST 14.6MnT EAST 9MnT 12.1MnT SOUTH SOUTH Our Markets Our Markets Existing Plants Existing Plants *Excludes Murli Industries Acquisition 8
Slide 10: Growth Snapshot
Growth Snapshot 10 YEAR CAGR* 13% 20% 22% Capacity Revenue EBITDA 3x 6x 7x Aggressive Yet Sustainable Growth Enabled Us to Evolve as the 4th Largest Cement Player In India *FY11-FY21 9
Slide 11: Company Overview
SECTION 02 COMPANY OVERVIEW 10
Slide 12: Company Overview
Company Overview Pioneer in the Area of State-of-the-Art Production Proven Track Record of Financial Multi-tier Governance Structure Sustainability Facilities and Supply Chain Performance Overseen by Diverse Board 01 03 05 07 02 04 06 Diverse Product Portfolio with Ability to Add Capacity at Lowest
Slide 13: 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 - 492 CO₂ emission-Kg/ton in FY21 68 60 First cement group to commit to become carbon negative by 2040 Largest producer of slag cement in India with 80% blendin
Slide 14: 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 15: Diverse Product Portfolio with Strong Brand Recognition
02 Diverse Product Portfolio with Strong Brand Recognition Product mix, FY21 Consumer Brands 20% OPC 32% PPC PCC 15% 33% 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 16: Diverse Product Portfolio with Strong Brand Recognition
02 Diverse Product Portfolio with Strong Brand Recognition East “A+” 10% Dalmia DSP, Concreto, ACC F2R ₹30/bag “A” 22% Dalmia Ultratech ACC&Ambuja Nuvoco ₹60/bag “B” JK Lakshmi Birla Corp Emami South (TN Market) North East “A+” “A+” 5% Dalmia DSP 9% Dalmia DSP Ramco Super Crete ₹20/bag “A” 15% ₹40/b
Slide 17: Consistent Increase in Share of Premium Product
02 Consistent Increase in Share of Premium Product DSP % of Trade Sales 25% 19% 18% 18% Since its launch, Dalmia DSP has been 17% immensely successful in East and North 13% 15% East Region 11% 12% DSP contributes 15-20% higher 9% 10% profitability than other products 5% 7% Constant increase in
Slide 18: 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 19: State of the Art Production Facilities and Supply Chain
03 State of the Art Production Facilities and Supply Chain Well Balanced Capacity staggered at central locations in Eastern (~50%), Southern India (38%) and North-Eastern (13%) states Strategically located providing easy raw material access and maximum market coverage Dalmia Integrated Unit Lead Dis
Slide 20: Line 3 (Clinker Unit) at RGP – Best in Technology
03 Line 3 (Clinker Unit) at RGP – Best in Technology Longest Kiln (Dry Process) - 81m for 5m diameter Maximum guaranteed capacity of 8,000 TPD CCX cyclone for 6th Stage Pre-Heater which is equivalent to 7th Stage PH Latest Jetflex Burner (Biggest Size) for Kiln Firing First in the world - saved 30%
Slide 21: Supply Chain based on Smart Technology
03 Supply Chain based on 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
Slide 22: 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 diversification $40/T $57/T Average 100% $91/T 94% $73/T 30.8 78% 26.5 26.5 25.0 25.0 25.0 25.0 57% 72% 73% 67% 52% 51% 51% 68% 45% 46% 61% 51% 11
Slide 23: Proven Track Record of Financial Performance
05 Proven Track Record of Financial Performance Sales Volume (MnT) Sales Revenue 20.70 Consistent Capacity 9,674 10,522 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 FY16 FY17 FY18 FY19 FY20 FY21 EBITDA a
Slide 24: 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 enabled us to 2.76 3,514 Delever our Balance 3,124 2,825 1.73 1.61 Sheet and provided 1.34 Flexibility for future 99 expansion 0.04 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 F
Slide 25: Market Leader in Highly Attractive East India Market
06 Market Leader in Highly Attractive East India Market Per capita cement consumption of the GDP growth of eastern regions is well Capacity Break Up - East eastern regions is well below Pan-India above Pan-India GDP growth(1) Others 17% 26% East 150 – 175 kg East: 10.9% All India 225 – 250 kg
Slide 26: 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 27: Reputed and Diverse Board
07 Reputed and Diverse 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 Independent Director Independent Director (Non-Executive Director)
Slide 28: Shareholder Value and Capital Allocation
SECTION 03 SHAREHOLDER VALUE AND CAPITAL ALLOCATION 27
Slide 29: Drivers of Value Creation
Drivers of Value Creation GROWTH PROFITABILITY RESPECT & CASH FLOW GENERATION HUMAN CAPITAL DIGITIZATION ACCELERATED FOCUS ON ESG 28
Slide 30: 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 31: 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 32: 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 33: Capex Plan
CAPEX PLAN 32
Slide 34: Cement Capacity Expansion Plan
Cement Capacity Expansion Plan Ongoing Projects West 3.0 East 4.8 7.8 Capacity Overview Greenfield South 3.0 Present Capacity 30.8 Brownfield Ongoing Projects 7.8 East 1.7 Greenfield 3.0 Brownfield 1.7 Upgradation Upgradation 5.2 North East 1.2 Total Capacity 48.5 West 1.0 South 0.9
Slide 35: Clinker Capacity Expansion Plan
Clinker Capacity Expansion Plan FY21 FY24E SOUTH 7.8 9.4 EAST 6.6 8.3 NORTH-EAST 2.3 3.3 WEST 1.98 2.4 TOTAL 18.68 23.4 (Figures in MnT) 34
Slide 36: 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 37: ESG
SECTION 04 ESG 36
Slide 38: 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, 492 kg CO2/ Corporate Social Responsibility activities Institutionalized good governance led t
Slide 39: Leading the Cement World Globally in Carbon Emissions
Leading the Cement World Globally in Carbon Emissions 374 492 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 40: 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 492 YTD FY 21 EV 100 commit
Slide 41: 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 40
Slide 42: First Triple Joiner Globally of RE100, EP100 and EV100
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 43: 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 42
Slide 44: 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 45: Industry Leading Water Positive Operations
Industry Leading Water Positive Operations OUR STRATEGY OUR RESULTS 20x Air cooling instead of water cooling in CPP 12x 2025 5x 2021 2019 Rain water harvesting FY21 Million m3 Zero water discharge at Freshwater Water withdrawal 2.4 plants Total Water withdrawal 2.9 Water recycled 1.2 Intervention pr
Slide 46: 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 2.8 MnT fly ash 1.1 MnT Synthetic Gypsum Dalmia Bharat is a Total Waste and 5.0 MnT Steel Slag Plastic Waste 11 Kilo Ton Lime Sludge Recycling Positive Company 37 Kilo Ton Red
Slide 47: Significant Increase in Usage of Green Fuel
Significant Increase in Usage of Green Fuel Usage of Green Fuel and Savings Dalmia consistently evaluates 135 10% opportunities to increase 9.1% usage of green fuels 120 8.3% 9% including biomass and 106 8% waste 105 6.4% 7% 90 In line with the philosophy of Savings (Rs. Cr) 6% Green Fuel % 75 ‘
Slide 48: 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 49: Sustainability - Awards & Accolades
Sustainability - Awards & Accolades Dalmia Bharat has been consistently respected and recognized for its focus on Sustainability Asia Sustainability and Kadapa Unit Won Silver Category Environmental Stewardship Award State Energy Conservation International Cement Executive Award of Andhra Pradesh 5S
Slide 50: Redefining Corporate Governance
Redefining Corporate Governance First cement company in Appointed one of the Segregated the family Use technology to track Formal Code of Conduct India to formally Big4 accounting firms, office and the corporate and monitor every signed and followed by announce a Capital EY, as its Interna
Slide 51: First Indian Cement Company - Assurance on alignment of CSR activities with ISO 26000
First Indian Cement Company - Assurance on the alignment of CSR activities with ISO 26000 Major Initiatives Dalmia Institute of Knowledge & Skill Harnessing DIKSHa @ 13 Centers | 5,251 completed (DIKSHa), a skill training center, actively involved in training | 100% job offered with a salary of im
Slide 52: Theory of Change Designed to Ensure CSR Initiatives Help Achieve Our Vision & Mission
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 53: CSR Program - Awards & Accolades
CSR Program - Awards & Accolades Our CSR Program has been consistently recognized by several institutional bodies and forums Commendation for Significant Achievement in CSR FICCI-CSR Awards CII-ITC Sustainability Awards 2019, 2017, for Creating Sustainable Environment, 2020 2016, 2014, 2013 Winner I
Slide 54: 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 55: Our CSR Partners
Our CSR Partners \e/ N-S-°D-C National Skill Development Corporation CODISHA SKILL DEVELOPMENT AUTHORITY Schneider Electric OcsRBoOx €3) Nirmaan Pe eration SmartPower |ncic @BOSCH we Gren ie SP) Connect Collaborative Aide et Action ans changing the word through Education mon ami. foundation Que = sc
Slide 56: Covid Relief
Covid Relief Over 16,000 items of Personal Protective Equipment distributed to local health workers, Primary Health Centers and Quarantine centers 300 Oxygen cylinders and 6 Oxygen Generation Plants provided to Healthcare Departments at various locations A 65 bedded COVID Care treatment facility set
Slide 57: Appendix
SECTION 06 APPENDIX 56
Slide 58: Key Financials
Key Financials FY16 FY17 FY18 FY19 FY20 FY21 Cement Capacity - MnT 25.00 25.00 25.00 26.50 26.50 30.75 Sales Volume - MnT 12.79 15.30 16.96 18.69 19.29 20.70 Net Sales - Rs Cr 6,411 7,447 8,580 9,484 9,674 10,522 EBITDA - Rs Cr 1,592 1,894 2,036 1,942 2,106 2,783 EBITDA Margin% 24.8% 25.4% 23.7% 20.
Slide 59: Adjusted RoCE and RoE
Adjusted RoCE and RoE REPORTED ADJUSTED (in Rs Cr) FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA (inclusive Other Income) 2,190 2,292 2,186 2,323 2,965 2,190 2,292 2,186 2,323 2,965 Less : - Depreciation as per books (1,226) (1,213) (1,296) (1,528) (1,262) (1,226) (1,213) (1,296) (1,528)
Slide 60: 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
Dalmia Bharat — Investor Presentation (September 2021) on 6ix