ACC Ltd — Investor Presentation 2021

Jul 19, 2021

Secretarial Division

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No. ACC/Sec./SE/21/051 July 19, 2021

National Stock Exchange of India Limited Exchange Plaza, 5th Floor Plot No.C/1, G Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 Tel.: 2659 8235/36 8458 Scrip Code: ACC

BSE Limited Corporate Relations Department P.J. Towers, Dalal Street Mumbai 400 001 Tel.: 2272 8013/15/58/8307 Scrip Code: 500410

ACC Limited Registered Office Cement House 121, Maharshi Karve Road Mumbai - 400 020, India

CIN: L26940MH1936PLC002515 Phone: +91 22 3302 4321 Fax: +91 22 6631 7458 www.acclimited.com

Dear Sirs,

Sub: Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 – Investor Presentation

In terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and other applicable provisions, please find enclosed the Investor Presentation Q2CY21 Results.

The said Investor Presentation will be simultaneously posted on the Company’s website at www.acclimited.com.

You are requested to take note of the same.

Yours Sincerely For ACC Limited

Digitally signed by Rajiv Kumar Choubey DN: c=IN, o=Personal, title=0497, Rajiv Kumar pseudonym=355818b29ebc96f8e3794dc90a1c3388eef74e44c92b657a9ba9c2b0e890f4b2, postalCode=400054, st=Maharashtra, serialNumber=025caabe7cb51d29f8808c05f530001a06f46 Choubey 5f207bd5b2421e9c8ac305140e1, cn=Rajiv Kumar Choubey Date: 2021.07.19 18:10:56 +05'30' Rajiv Choubey Chief Legal Officer & Company Secretary ACS-13063

Encl.: As Above

Investor Presentation : Q2 2021 July 2021

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Stock code: BSE: 500410 | NSE: ACC | Reuters: ACC.NS | Bloomberg: ACC:IN

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, fairness and reasonableness of the contents of this presentation. This presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this presentation is expressly excluded.

• Materials and information provided in this presentation may contain ‘forward-looking statements’. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements.

• Such statements may be subject to a number of risks, uncertainties and other important factors, such as but not limited to (a) competitive pressures; (b) legislative and regulatory developments; (c) global, macroeconomic and political trends; (d) fluctuations in currency exchange rates and general Financial market conditions; (e) delay or inability in obtaining approvals from authorities; (f) technical developments; (g) litigation; (h) adverse publicity and news coverage, which could cause actual developments and results to differ materially from the statements made in this presentation.

• The Company undertakes no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

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Index

1 ACC at a Glance 2 Economy & Sector Update 3 Strategic Priorities 4 Performance Review

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ACC at a Glance

Partner in India’s Progress

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ACC has emerged Consistently set new as one of the benchmarks with front-runners in our relationship -first India’s building approach, materials market breakthrough with a pan-India innovation and presence commitment to long-term sustainability

Vision To be one of the most respected companies in India; recognised for challenging conventions and delivering on our promises

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A brand that inspires confidence among customers and other stakeholders Focused on retail (contributes ~80% of revenue), driven by a robust distribution network 34.45 MTPA Installed cement capacity

Legacy of active contribution to India’s progress spanning over eight decades

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Purpose To be a driving force in creating a confident future for our people, our customers, our shareholders and our nation

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ACC at a Glance

Sustainable Value Creation through Scale and Innovation

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Environment
Operational Social
and governance
17 58% [#]
~6,000
Cement plants Employees Clinker Factor
79 7% [#]
56,000
Ready mix concrete plants Channel partners Thermal Substitution Rate

~77% >2,00,000 50%
Capacity utilisation Lives touched Independent Directors
Q2 2021; [# ] H1 2021
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ACC at a Glance

Delivering Results through Optimization

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Focus on Premiumization through special application cements like Gold Water Shield,F2R Superfast; Strengthening brand positioning through enhanced consumer connect

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RMX – ECOPact (the advanced low Co2 concrete solution) launched PAN India and scaled up significantly

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Parvat – Efficiency measures such as clinker factor optimization, reduction in energy consumption, lead distance reduction, leveraging Master Supply Agreement

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Industry leading CO2 emission; Continuous focus on Municipal Solid Waste and Refuse Derived fuel to drive TSR (Thermal Substitution Rate) journey

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Strong performance in Accounts Receivable and Inventory, Working capital continues to stay negative, despite pandemic challenges

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Digital marketing leveraged to generate higher leads; Adoption of digital assets viz. Dealer Connect, Contractor Loyalty; Digital Profiling of end consumers

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ACC at a Glance

Economy & Sector Update

GDP Growth likely to see a Sharp Rebound

• GDP forecast at 9.5% for fiscal 2022 (April’21 to Mar’22)

• Largely on account of low base

• 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 driven ‘sharp rebound’ until fiscal 2023

• In fiscal 2023, growth expected to remain strong and become more broad-based, as a sufficient proportion of population gets vaccinated by then

• Inflationary pressures persist: food inflation remains volatile, core inflation sticky

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FY20 FY21 FY22 FY23 FY24 FY25
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Source: S&P Global (June 2021), Global outlook is for calendar year (FY21= 2020 for World), NSO, CRISIL

Source: Crisil

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Economy & Sector Update

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Sectoral Outlook

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Housing Infrastructure Industrial /Commercial
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• Second wave of pandemic impacted cement demand

• 19.5mn rural houses are targeted for construction between FY20 and FY22, with completion rate at~32%

• The budgetary allocation towards PMAY-U scheme for 2021-22 is Rs 8,000 crore.

• Continued Govt. focus on infrastructure through increased budgetary allocation towards roads- NHAI & PMGSY

• Significantly higher budgetary allocation of Rs. 2.15 trillion to railways sector compared to previous budget

• Capital expenditure by State governments is also expected to keep infrastructure demand momentum healthy

• Industrial construction demand to witness revival supported by:

• Deferred investments from last fiscal flowing into fiscal 22

• Large players announcing capex plans

• Implementation of time bound Production Linked Incentive scheme

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Economy & Sector Update

Abbreviations - PMAY-U :Pradhan Mantri Awas Yojana – Urban, NHAI: National Highway Authority of India; PMGSY: Pradhan Mantri Gram Sadak Yojana

Strategic Priorities

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Accelerating our Journey Forward

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Ametha Integrated Project WHRS Projects Cost Efficiency Projects
▪ ▪ ▪
Capacity expansion project at Ametha in Jamul (10 MW) Wet Flyash dryer installation at Kymore,
Madhya Pradesh and associated grinding ▪ Gagal & Wadi on fast track
Kymore (14MW)
units have commenced ▪ Geocycle Projects
Projects on track and likely to be
commissioned by Q2 2022 o Chanda commissioned in Jun’21
o Jamul & Kymore feasibility in progress
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Strategic Priorities

Innovation Engine Chugs Ahead

Green Cement ECOPact

• ▪

• Various environment friendly products ECOPact – Low Carbon Positive Impact under development, targeting: o Rolled out Pan India; Excellent Volume

• o Water saving by > 50% Ramp-up o CO2 footprints reduction by > 80% o Appreciated by Green conscious customers

• o Zero Clinker Binder

• Admixture and Other Products & Solutions ▪ Cost effective Concrete Admixture developed in RMX

• o Ongoing supply at various RMX plants o Further expansion to Central India

• ▪ Cool walls : Special additive developed in Powder & Liquid form for performance enhancement

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Strategic Priorities

Leveraging Digitization to bring Efficiencies

Manufacturing - Plants of Tomorrow Logistics & Sourcing

• TIS (Technical Information System) & PACT (Performance & Collaboration Tool) implemented across plants

• TAC (Transport Analytic Center) : Dashboard on secondary lead analysis & direct dispatch implemented

• Drones - Pilot project done

• Blue Yonder - Sales & Operations Planning (S&OP)

• Cement Fineness Prediction projects

• Digitizing the process from EPOD to transport invoicing

• VRM (vertical roller mill) Failure Prediction - Pilot project ongoing

• Commercial ▪ Adoption of digital assets

• o Dealer Connect: > 80% of volume being channeled

• Contractor loyalty: ~ 32% of contractors use the solution for recording purchases

• ▪ Concrete Direct: from order booking to delivery, facilitating real-time communication

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Strategic Priorities

SD 2030 Goals are our Core Priority

		Our sustainability strategy is led by our Sustainable Development (SD) 2030 Plan and aligned with Holcim	Our sustainability strategy is led by our Sustainable Development (SD) 2030 Plan and aligned with Holcim	Our sustainability strategy is led by our Sustainable Development (SD) 2030 Plan and aligned with Holcim	Our sustainability strategy is led by our Sustainable Development (SD) 2030 Plan and aligned with Holcim
					3.5 million – Number of new beneficiaries Touched0.83millionpeople through community development projects in 2020; on track for H1 2021 Community
	Target 2030 Performance H1’21 SDGs impacted	Climate and energy	Use30 million tonnes of waste derived resources per year Consumed6million tonnesof waste derived resources Circular economy	Water Positive Index –5 (number of times) <1(number of times) # Environment
		Net specific CO2emissions : 400 kg /t of cementitious materials
		Net specific CO2emissions : 496kg/tof cementitious materials

# - No rainwater harvesting (credit) till now in this year Data for the period H1 2021

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Strategic Priorities

Community Remains Top Priority

• Sustainable Livelihood Quality Education

• ▪ ▪ 38,194 new beneficiaries added 7,532 children supported for

• ▪ 9 watershed structures created education continuity during ▪ 622 youth completed skilling COVID-19 courses ▪ 520 students attended online

• ▪ 17 women self help group formed classes

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WASH (Water, Sanitation,
Malnutrition Mitigation
Health & Hygiene)
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• ▪

• 8,758 people provided drinking 11,683 children below 5 years, water facilities benefited

• ▪ ▪ 1,085 people benefited through 293 Anganwadi centres (AWC) general and special health camps supported

• ▪ 399 persons with HIV, provided treatment at ART/STI

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Strategic Priorities

Stepping Up Our Pandemic Response

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Mask Distribution & Emergency Ration Kits Awareness Community health infrastructure support
▪ ▪ ▪
1,57,393 masks produced and 1,43,497 11,907 people reached for tele-counselling (mental 432 jumbo oxygen cylinder and 261 oxygen
distributed health awareness) concentrators support to Government hospitals &
▪ 3,860 distressed community members supported ▪ 54,175 people made aware about COVID COVID-care centers
▪
through dry and cooked food packets appropriate measures 6 dedicated COVID ambulance support
▪ ▪
1,64,731 people reached through disinfection drive 16 COVID-care centers supported with essential
support items
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Strategic Priorities

Performance Review

Performance Highlights – Q2 2021 (Consolidated) Strong performance delivery in a challenging quarter

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Cement Sales Volume RMX Sales Volume Net Sales
6.84 mt 0.58 Mio m [3] INR 3,810 crs
(44% YoY) (293% YoY) (51 % YoY )
EBITDA Op. EBIT Margin Profit After Tax
INR 869 crs 19% INR 569 crs
( 65% YoY ) (4.6 pp YoY) ( 110% YoY )
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Performance Review

Performance Highlights – H1 2021 (Consolidated) Cost efficiencies under 'Parvat' driving margin expansion

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Cement Sales Volume RMX Sales Volume Net Sales
14.81 mt 1.41 Mio m [3] INR 8,024 crs
(31% YoY) (31% YoY) ( 35% YoY )
EBITDA Op. EBIT Margin Profit After Tax
INR 1,730 crs 17.9% INR 1,132 crs
( 56% YoY ) (4.6 pp YoY) ( 91% YoY )
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Performance Review

Financial Results – Consolidated

Particulars Quarter Ended June 2021	Half-Year Ended June 2021
(all amount in ₹ Crore) Q2 2020 Q2 2021 Change (%)	H1 2020 H1 2021 Change (%)
Net Sales 2,520 3,810 51%	5,953 8,024 35%
EBITDA 525 869 65%	1,112 1,730 56%
EBITDA Margin (%) 20.8 22.8 2.0pp	18.7 21.6 2.9pp
Op. EBIT 363 723 99%	791 1,440 82%
Op. EBIT Margin (%) 14.4 19.0 4.6pp	13.3 17.9 4.6pp
Profit After Tax (PAT) 271 569 110%	594 1,132 91%
EPS (₹/share) 14.4 30.3 110%	31.6 60.3 91%

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Performance Review

Income Statement – Cement Business

Particulars Quarter Ended June 2021	Half-Year Ended June 2021
(Rs. / Ton) Q2 2020 Q2 2021 Change per ton	H1 2020 H2 2021 Change per ton
Sales Revenue 5,050 5,153 103	4,777 5,005 228
Other Operating Income 164 106 -58	127 101 -26
Total Operating Income 5,214 5,259 45	4,904 5,107 202
Expenses
Cost of Materials Consumed 397 543 146	458 546 88
Power & Fuel Cost 932 1,183 251	1,019 1,085 66
Freight & Forwarding Cost 1,220 1,278 58	1,290 1,294 5
Employee Cost 326 274 -52	301 255 -47
Change In Inventory 257 -304 -560	-34 -183 -149
Other Expenses 636 753 117	705 728 23
Total Expenses 4,086 4,024 -62	3,968 3,982 15
EBITDA 1,128 1,235 107	937 1,124 188

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Performance Review

Performance Analysis - Sales Volume Strong growth despite 2[nd] wave of Covid

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Cement Volume (Q2) Cement Volume (H1)
(Million tonnes) (Million tonnes)
30.8%
43.7%
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Performance Review

Performance Analysis – Net Selling Price Improvement in realization driven by premium product and brand positioning

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Net Selling Price (Q2) Net Selling Price (H1)
(Rs/ton) (Rs/ton)
2.0%
4.8%
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Performance Review

Performance Analysis – Cost of Materials Consumed Impacted by reducing clinker factor and rising input costs, mitigated through project 'Parvat'

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Raw Material Cost (Q2) Raw Material Cost (H1)
(Rs/ton) (Rs/ton)
36.8% 19.3%
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Performance Review

Performance Analysis – Power & Fuel Cost Impact of higher fuel prices, various efficiency projects underway to drive cost down

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Power & Fuel Cost (Q2) Power & Fuel Cost (H1)
(Rs/ton) (Rs/ton)
27.0% 6.5%
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Performance Review

Performance Analysis – Freight & Forwarding Cost Projects like geo mix and network optimization underway to mitigate fuel cost headwinds

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Freight & Forwarding Cost (Q2) Freight & Forwarding Cost (H1)
(Rs/ton) (Rs/ton)
4.8% 0.4%
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Performance Review

Performance Analysis – Employee Cost Better absorption driven by higher volumes

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Employee Cost (Q2) Employee Cost (H1)
(Rs//ton) (Rs/ton)
-16.0% -15.5%
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Performance Review

Performance Analysis – Other Expenses Increase driven by higher cost of maintenance in plants

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Other Expenses (Q2) Other Expenses (H1)
(Rs/ton) (Rs/ton)
18.4% 3.3%
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Performance Review

Registered Office Cement House, 121, Maharshi Karve Road, Mumbai – 400 020 acclimited.com ACCInd acc-limited ACCCementOfficial

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