ACC Ltd — Investor Presentation 2021

Feb 11, 2021

Secretarial Division

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ACC Limited

No. ACC/Sec./SE/21/011 February 11, 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

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 Sir/ Madam,

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-2020.

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

You are requested to take note of the same.

Thanking You. Yours Sincerely, For ACC Limited

Digitally signed by Rajiv Kumar Choubey DN: c=IN, o=Personal, title=0497, pseudonym=355818b29ebc96f8e3794dc90 a1c3388eef74e44c92b657a9ba9c2b0e890f 4b2, postalCode=400054, st=Maharashtra, serialNumber=025caabe7cb51d29f8808c05 f530001a06f465f207bd5b2421e9c8ac3051 40e1, cn=Rajiv Kumar Choubey Date: 2021.02.11 21:07:42 +05'30'

Rajiv Kumar

Choubey

Rajiv Choubey Chief Legal Officer & Company Secretary ACS-13063

Encl.: As above

Investor Presentation : 2020

February 11, 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 Performance Review 3 Opportunity Landscape 4 Strategic Priorities 5 Business Enablers 6 ESG

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ACC at a Glance

Partner in India’s Progress

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A leader in Indian building materials space with a pan-India operational and marketing presence

Proven track record in setting industry benchmarks with innovative research and product development

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

Focused on retail (contributes ~80% of revenue), driven by a robust distribution network

A brand that inspires confidence among customers and other stakeholders

33.05 MTPA

Installed cement capacity

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Vision

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

Purpose

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

5

ACC at a Glance

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Strong Parentage Providing Competitive Edge

Shareholding Pattern

LH Key Facts

• LafargeHolcim (LH) is a leading global conglomerate engaged in the production of cement, aggregates and readymix concretes

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engaged in the production of cement, aggregates and ready-
mix concretes
 LH is reinventing how the world builds - to shape a world Parent >70,000
that is greener, smarter and that works for all
Employees
LH Value drivers
2,300
Operating sites
63.11%
Ownership by LH
264
Growth Simplification Financial Vision
& Performance strength & people Cement and grinding plants
50.05%
Ambuja Cements
 Enabling ACC to stay ahead of the curve in the dynamic and 4.48% 170
evolving building materials industry Holderind Investments Ltd
Patents
(subsidiary of LH)
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6

ACC at a Glance

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Sustainable Value Creation through Scale and Innovation

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Operational Social Environment
and governance
17 ~6,500 3.7%
Cement plants Employees Reduction in net specific CO2
emissions of cementitious materials
80 56,000 9.3 MT
Ready mix concrete plants Channel partners Usage of waste derived
resources
72% 6.8 Lakh 50%
Capacity utilisation COVID-19 relief beneficiaries Independent Directors
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All figures as on December 31, 2020

7

ACC at a Glance

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Pioneer in Industrialisation and Nation Building

• 1930s 1950s 1970s 1990s 2010s 2020

• The Associated Cement  Establishes Bulk  Introduces India’s first  Becomes part of Ambuja  Capacity expansion at  Sustainability – reduce Companies Limited is Cement Depot, Okhla energy-efficient preGroup and Holicm Group Wadi, Chanda and CO2 intensity incorporated and Technical Training calcinator technology of Switzerland Jamul clusters levers, waste Institute, Kymore management, adoption of

• Set up India’s first  Bags plant management  Acquired Bargarh cement  Sustainability water efficient indigenous cement plant  Launches innovative contract in Saudi Arabia plant investments : setup technologies etc at Chaibasa products such as WHRS and AFR hydrophobic cement  Commissions India’s first  Inaugurates a grinding platforms  Efficiency - implemented

• Establishes the first and oil well cement 1 MTPA plant at Wadi plant of 1.6 MTPA at cost efficiency and cost community development Thondebhavi  Foray into Construction reduction measures centre near Mumbai  Sets up the Central  Makes breakthrough in Chemicals segment with Research Station at import substitution –  Foray into the RMX the waterproofing  Digital - rolled out a new Thane develops special G oil (ready mix concrete) compound LeakBlock digital-first campaign for well cement for ONGC business Gold Water Shield  Sets up a plant to produce dry mix mortar  Innovation – launched new value added solutions - ACC Thermofillcrete and ACC Suraksha NX

8

ACC at a Glance

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An Integrated Portfolio that Drives Value

Cement

Ready Mix Concrete

 RMX is supplied in a variety of grades and compositions to meet specific needs of diverse clientele - from simple requirements for small homes to high performance concrete to meet complex needs of mega projects

• Offers wide range of value-added products designed to meet varied construction requirements from foundation to roof

ACC Gold Water Shield

Construction Chemicals

• The ACC brand is synonymous with cement and enjoys a high level of equity in India

• Gold and silver range assure superior quality for specialised applications and environment

One-of-its-kind water repellent cement providing 360-degree protection for water seepage

• Range of integral waterproofing compound and ready to use cementitious waterproof mortar increasing resistance to water penetration and chloride attack

• Range of tile adhesive products to suit various customer needs

9

ACC at a Glance

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Nation-Wide Presence

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Cement plants Sales units
Grinding unit Integrated plant
 Bihar
Andhra Pradesh AP Madhya Pradesh MP Well – diversified
HP  Chandigarh
Vizag Kymore

Chhattisgarh presence across nation
Maharashtra MH
Chhattisgarh CG  Haryana
Chanda
Jamul  Jharkhand Cement
RJ UP Odisha OD  Karnataka
Himachal Pradesh HP
Bargarh  Madhya Pradesh 12
Gagal 1
MP JH WB Gagal 2 Rajasthan RJ  Maharashtra
CG
 New Delhi Number of states
Lakheri
OD Jharkhand JH
 Odisha
MH Chaibasa Tamil Nadu TN
 Tamil Nadu
Sindri Madukkarai
 Telangana RMX
Karnataka KA Uttar Pradesh UP  Uttar Pradesh
KA AP
Kudithini Tikaria  Uttarakhand
17
Thondebhavi

Wadi 1 West Bengal WB West Bengal Number of states
TN Wadi 2 Damodhar
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10

ACC at a Glance

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Top of the Mind Brand Recall

Initiatives

Kamaal Ki Kahani

Video series chronicling real life motivational stories of resilience to engage with consumers

Kamaal Ki Baat

A knowledge series where experts from construction and building industry share their learnings, experiences and key expertise with our influencer segments

Kamaal Ka Sawaal

An engaging series on Social media to provide construction related knowledge to our stakeholders

Dealer engagement has also been stepped up through a bi-monthly newsletter - ACC Sambandh, published in 6 regional languages

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ACC at a Glance

Recognition of Excellence

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Won the second Runner Up award in the manufacturing sector for the Best Presented Annual Report at SAFA Best Presented Annual Report Awards 2019

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ACC Wadi Cement Works won the award for Energy Efficient Unit

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ACC’s Bargarh Cement Works was adjudged as Excellent Energy Efficient by Confederation of Indian Industry (CII) in 2020

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ACC Jamul Plant achieved 4.5 star rating in the large scale category in Energy Conservation Award (ENCON) 2020 in CII Eastern region

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ACC achieved the highest recognition of ‘Outstanding Accomplishment’ in Corporate Excellence at the CII-ITC Sustainability Awards 2019

12

ACC at a Glance

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Performance Review

Performance Highlights – Q4 2020 (Consolidated)

Delivered strong operating performance

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Cement Sales Volume RMX Sales Volume Net Sales
7.7 mt 0.73 Mio m [3] INR 4,066 crs
(-0.6% YoY) (-20.9% YoY) ( +2.4% YoY )
EBITDA [#] Op. EBIT Margin [#] Profit After Tax
INR 701 crs 13.4% INR 472 crs
( +29.5% YoY ) (+3.8ppYoY) ( +72.9% YoY )
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excluding charge of ₹129 Crore

14

Performance Review

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Performance Highlights – 2020 (Consolidated)

A strong year of performance despite Covid setback

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Cement Sales Volume RMX Sales Volume Net Sales
25.5 mt 2.3 Mio m [3] INR 13,487 crs
(-11.6% YoY) (-35.7% YoY) ( -12.1% YoY )
EBITDA [#] Op. EBIT Margin [#] Profit After Tax
INR 2,484 crs 13.7% INR 1,430 crs
( +3.0% YoY ) (+1.9pp YoY) ( +3.8% YoY )
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• excluding charge of ₹129 Crore

15

Performance Review

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Improving Margins and Free Cash Flow

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Margin expansion driven by Product Mix Optimisation and Cost Efficiency Initiatives

RMX launched value added solutions - ACC Thermofillcrete and ACC Suraksha NX

Parvat - Implemented cost efficiency measures with ongoing positive impact Leveraging synergy through MSA Achieved specific carbon emissions of cementitious materials below 500 kg/t

Generation of additional cash & cash equivalents driven mainly by strong working capital actions

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Rolled out a new digital-first campaign for our innovative product – Gold Water Shield, a water-repellent cement

16

Performance Review

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Financial Results – Consolidated

	Particulars Quarter Ended December 2020	Year Ended December 2020
	(all amount in ₹ Crore) Q4 2020 Q4 2019 Change (%)	2020 2019 Change (%)
	Net Sales 4,066 3,970 2.4%	13,487 15,343 -12.10%
	EBITDA# 701 541 29.5%	2,484 2,413 3.0%
	EBITDA Margin (%) 17.2% 13.6% 3.6pp	18.4% 15.7% 2.7pp
	Op. EBIT# 543 380 42.9%	1,845 1,806 2.2%
	Op. EBIT Margin (%) 13.4% 9.6% 3.8pp	13.7% 11.8% 1.9pp
	Profit After Tax (PAT) 472 273 72.9%	1,430 1,378 3.8%
	EPS (₹/share) 25.2 14.6 72.9%	76.2 73.3 3.8%

excluding charge of ₹129 Crore in Q4’20 & Year 2020

17

Performance Review

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Income Statement – Cement

	Particulars Quarter Ended December 2020 Year Ended December 2020 (Rs. / Ton) Q4 2020 Q4 2019 Change per ton 2020 2019 Change per ton	Particulars Quarter Ended December 2020 Year Ended December 2020 (Rs. / Ton) Q4 2020 Q4 2019 Change per ton 2020 2019 Change per ton
	(Rs. / Ton) Q4 2020 Q4 2019 Change per ton
		4,834 4,722 112 112 103 10 4,946 4,825 121 462 519 (57) 978 1,046 (68) 1,270 1,307 (38) 294 266 28 54 34 21 698 774 (76) 4,022 4,067 (46) 925 758 167
	Sales Revenue 4,881 4,508 374
	Other Operating Income 99 107 (8)
	Total Operating Income 4,981 4,615 366
	Expenses
	Cost of Materials Consumed 492 426 66
	Power & Fuel Cost 961 916 45
	Freight & Forwarding Cost 1,265 1,184 82
	Employee Cost 298 265 33
	Change In Inventory 148 404 (257)
	Other Expenses# 730 708 22
	Total Expenses# * 4,153 4,033 120
	EBITDA 828 582 246

• excluding charge of ₹129 Crore in Q4’20 & Year 2020

• includes Purchase of traded Cement

18

Performance Review

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Performance Analysis - Sales Volume Strong performance in a tough year, with plant utilisation higher than industry

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Cement Volume (Q4) Cement Volume (Annual)
(Million tonnes) (Million tonnes)
-0.6% -11.6%
28.9
25.5
7.7 7.8
Q4 2020 Q4 2019 2020 2019
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Performance Review

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Performance Analysis – Net Selling Price

Improvement in realisation driven by better product and segment mix and improved pricing environment

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Net Selling Price (Q4) Net Selling Price (Annual)
(₹ /ton) (₹ /ton)
8.3% 2.4%
4,881
4,834
4,722
4,508
Q4 2020 Q4 2019 2020 2019
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20

Performance Review

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Performance Analysis – Cost of Materials Consumed Continuous focus on manufacturing and procurement efficiencies

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Raw Material Cost (Q4) Raw Material Cost (Annual)
(₹ /ton) (₹ /ton)
15.6% -10.9%
519
492
462
426
Q4 2020 Q4 2019 2020 2019
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Performance Review

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Performance Analysis – Power & Fuel Cost Leveraging Geocylce for alternate fuels, efficiency improvement in energy consumption and mix optimisation

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Power & Fuel Cost (Q4) Power & Fuel Cost (Annual)
(₹ /ton) (₹ /ton)
4.9% -6.5%
1,046
978
961
916
Q4 2020 Q4 2019 2020 2019
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Performance Review

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Performance Analysis – Freight & Forwarding Cost Focus on direct dispatches, network and warehouse footprint optimisation and procurement savings

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Freight & Forwarding Cost (Annual)ght & Forwarding Cost (Annual)ht & Forwarding Cost (Annual)g Cost (Annual) Cost (Annual)(Annual)Annual))
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Freight & Forwarding Cost (Q4) Freight & Forwarding Cost (Annual)ght & Forwarding Cost (Annual)ht & Forwarding Cost (Annual)g Cost (Annual) Cost (Annual)(Annual)Annual))
(₹ /ton) (₹ /ton)
6.9% -2.9%
1,307
1,265 1,270
1,184
Q4 2020 Q4 2019 2020 2019
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23

Performance Review

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Performance Analysis – Employee Cost Full year impacted by lower volume absorption

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Employee Cost (Q4) Employee Cost (Annual)
(₹ /ton) (₹ /ton)
12.5% 10.7%
298 294
266
265
Q4 2020 Q4 2019 2020 2019
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24

Performance Review

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Performance Analysis – Other Expenses

Pursuing cost reduction and cost avoidance through various initiatives

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Other Expenses [# ] (Q4) Other Expenses [#] (Annual)
(₹ /ton) (₹ /ton)
3.1% -9.9%
774
730
708
698
Q4 2020 Q4 2019 2020 2019
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excluding charge of ₹129 Crore in Q4’20 & Year 2020

25

Performance Review

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Opportunity Landscape

Favourable Demand-Supply Dynamics

• India is the world’s second largest cement producer, with growing demand in the construction, infrastructure, and housing segments

• Although India is also the second largest consumer of cement, its per capita cement consumption is significantly lower than the global average, which provides ample headroom for growth

Cement sector break-up[#]

Country wise cement production*

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(%) (%) 15
China 24 Infrastructure
54
32
India
Rural Housing
Vietnam
United States Urban Housing
26
2 Egypt
2 Industrial and
2
Others 35 Commercial
8
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• With the Indian economy likely to grow at a much faster clip going forward, cement demand is likely to significantly outpace GDP growth

Source:

* US Geological Survey, Mineral Commodity Summary 2020

• # CRISIL Research

• ^ HDFC Research

But India has low per capita cement consumption^

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(in kg)
1,650-1,700 World Avg. 500-550
800-850
700-750
300-350 300-350
200-250 200-250
China Vietnam Turkey Russia USA India Brazil
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27

Opportunity Landscape

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Driven by Rapid Urbanisation

• Cement demand is expected to grow by 15%–17% in CY 2021

• India’s urban population is expected to reach 525 million by 2025, up from an estimated 463 million in 2020. Thereby translating into higher demand for housing and related amenities

• India has one of the largest young population in the world, with a median age of 28 years

Source:

• # U.N. Population Prospects 2019, 95% prediction interval shown

• IMF World Economic Outlook Database, JLL, United Nations World Urbanisation Prospects 2018

• CRISIL

India’s working population[#]

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Population by broad age groups (million)
1000
25-64
500
65+
0-14
0 15-24
1950 1975 2000 2025 2050 2075 2100
Rising urbanisation []
Population breakdown of India (million)
880 893 900 909
543
429 461 483
2015 2018 2020E 2025E
Urban Rural
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28

Opportunity Landscape

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Affordable Housing Segment to be a Key Driver

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The government’s vison of In 2020, around 586.05 lakh Demand for affordable homes is “Housing for all by 2022” is tonnes of cement were used at set to stay healthy, supported by expected to create lucrative the start of construction work a growing population, young opportunities demographic profile, shift towards nuclear families and rapid urbanisation 10,800,000 62% 35% Total affordable units sanctioned of affordable units started of affordable units completed

Source: Ministry of Housing and Urban Affairs. PMAY – Urban. Data as on October 30, 2020

29

Opportunity Landscape

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Infrastructure Recovery to Support Demand

• National Infrastructure Pipeline (NIP) envisages ₹ 111 lakh crore investment over 2020-2025 period. This would require almost doubling the pace of infrastructure investment

• A major part of NIP is towards Transportation (roads, railway, etc), energy/power, and urban infrastructure

Infrastructure investment (past and planned under NIP)*

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40%
43% 43% 41% 47% 37% 37%
45%
FY13 FY14 FY15 FY16 FY17 FY18E FY19E Avg FY20-25P
Center State Private Infra Investment as % of GDP
lakh crore `
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• Pending Bharatmala awarding of around 16,219 km is likely to get completed by 2023. Bharatmala execution (including residual National Highways Development Project) is likely to get completed by 2026

Source: * ICRA Research

Bharatmala pipeline provides huge opportunities

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7,719 16,219
5,000
3,500
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30

Opportunity Landscape

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Strategic Priorities

Focused on ‘Health, Cost and Cash’ in Near-Term

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Health

Cost

Cash

• Protecting our employees physical and mental health

• Keeping our people, partners and communities safe and healthy

• The Business Resilience Team (BRT) continued to focus on ensuring that employees and communities remained safe

Decline in expenses due to

• Operating efficiencies

• Source optimisation and negotiations

• Efficient supply chain management

• Higher usage of AFR in fuel mix

• Warehouse space optimisation

• Network efficiencies

• Better supplier credit management

• Reduction in day sales outstanding

• Optimal inventory management

6.83 Lakh

Lives impacted due to COVID-19 relief efforts

₹ 46/tonnes

Cost saving despite lower volume and increased input cost

₹ 5,800 Crore

Cash and cash equivalents

32

Strategic Priorities

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A Purpose-Led Strategy for Future Growth

At ACC, our core purpose is to be a driving force in creating a confident future for our people, our customers, our shareholders and our nation.

Enhancing and upgrading capacities

Enhancing profitability

Reimagining our Accelerating ESG across business proposition our areas of operations

• Benefit from increasing industry growth and increase overall utilisation levels

• Upgrading existing facilities with modern technology and new processes

• Capacity addition - 2.7 MT of clinker and 6.2 MT of cement to be added over the coming years

• Investment in efficiency initiatives such as Waste Heat Recovery System (WHRS) in Jamul and Kymore plant

• Improve operational efficiency of manufacturing and logistics network

• Continue focusing on growing the premium product segment to achieve better margins

• Innovating and delivering sustainable solutions to offer specific value proposition for customers

• Improve product portfolio to achieve the twin objective of profitability and sustainability

• Embracing technology advancement for driving innovation, modernisation and process improvements

• Promote strong ethical, environmental and corporate social responsibility principles

• On-track to achieve our 2030 SD targets, and have surpassed the 2020 targets on most of the parameters

• Continue journey in building up brand equity and demand for sustainable products

33

Strategic Priorities

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Expanding Capacities to Capitalise on Opportunities

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Planned Capacity Expansion
(MTPA)
2.2 UTTAR PRADESH
(ginding unit)
1.6 TIKARIA UNIT
(grinding unit)
With projected increase in 1.4 SINDRI
cement demand, expansions (grinding unit)
have been kick started to
increase clinker and cement
1.0 AMETHA, MP
capacities in the attractive (grinding unit)
markets of East and Central
region 2.7 AMETHA, MP
(clinker unit)
commissioned in Jan 2021
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*commissioned in Jan 2021

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Strategic Priorities

Business Enablers

Leveraging Technology

• Automated workflow and data-based decision making  Integrated workflow platforms for internal and external Contractors

• stakeholders

• Providing visibility and data-based opinions  Integrated dashboards and in-time data for key insights into our business Individual

• Dealers House

• Data analytics and optimisation Builders  Capturing data and using for performance improvement  Dealer Connect app enables dealer to track and place Digital orders online Ecosystem

• Deploying Technical Information System (TIS) at all plants to deliver better performance

• Robust and secure technology framework Retailers Sales Offices  Efficient, future ready, flexible, disruptive and secure IT and technology universe Dealer Connect app

• Piloted the use of Artificial Intelligence (AI)/Machine Learning (ML) enables dealers to track

• into predicting cement strength and quality Service

• Initiated Blue Yonder – AI-powered supply chain management Officers and place order online platform to enable better predictability, and prevent and resolve disruptions across business

36

Business Enablers

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Optimising Logistics for Better Supply Chain Management

Improving cost-to-serve and time-to-serve

Four pillars of logistics strategy

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Cost efficiency

Distribution safety

• Driver Management Centres provide valuable support for driver training and counselling

• Continual measures to build a better fuel mix by maximising the use of cheaper fuel; through judicious procurement of market coal through e- auctions and imports

• Voice-box installed in all vehicles to give real-time details to drivers

• Transport Analytics Center  Parvat - efficiency optimisation programme initiated to

• (TAC) improved by including transform cost structure and

• cost optimisation and logistics improve delivered cost

• efficiency elements

• Enhanced dealer connect app and In Vehicle Monitoring System (iVMS)

Technology

• Focused on digitalisation through the ‘Plants of tomorrow’ initiative

• Utilised digital platforms for knowledge series initiative

• Developed digital kit comprising e-visiting cards, e-catalogues and posts to promote app adoption for the influencers and internal stakeholders

Environment efficiency

• Optimise transport logistics across operations

• Improve customer service and reduce energy and fuel consumption, air emissions and CO2 emissions

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31.4%
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Drop in incidents

• 4,000

Voice-box installed in 2020

37

Business Enablers

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ESG

Responsible Growth

Environment Social Governance 493 kg/t Zero 61 years Specific carbon emissions of cementitious materials Onsite fatality Median director age (2019 – 512 kg/t) 13,581 85.3 mu ~4 years Total learning Average tenure of Independent Green energy hours in Super Assisted Intelligent Directors consumed Learning (SAIL) platform 2.26 Lakh 99.99 % 151 Lit/t Of cementitious materials Lives touched through Average attendance rate Specific water consumption Water, Sanitation, Health & Hygiene in board meeting (2019 – 164 Lit/t) (WASH) programme

All figures as on December 31, 2020

39

ESG

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Committed to Building a Sustainable Future

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Focus Areas Initiatives

• Climate change mitigation and adaptation

• Water positivity

  • Measures to reduce CO2 emission intensity levers – clinker factor reduction, energy efficiency improvement, use of alternative fuels and raw materials, renewable energy and adoption of new technologies

• Managing waste and effluents

• Environment  Biodiversity conservation and natural resources optimisation

• Reduce, Reuse, Recover and Recycle approach to waste management

• Process optimisation and upgradation to water efficient technologies

• Geocycle – a global brand promoted by LafargeHolcim offering total waste management solutions

• Measures to protect local biodiversity

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• Zero fatalities

• Local community development

• Diversity & Inclusion

• Social  Employee learning and development  Supplier relationship

• Improving living conditions and quality of life of the communities

• L&D programmes – ACC-Ambuja Leadership Academy (AALA) and Super Assisted Intelligent Learning (SAIL) provide development for all employees

• All sites audited for Health and Safety Management System (HSMS)

Governance

• Responsible and ethical business partnerships

• Customer orientation and value creation for stakeholders

• Enterprise risk management

• Efficient capital allocation

• Business Resilience Team (BRT) constituted to address the COVID-19 challenges

• Improved operational efficiency

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Progressing Well Towards Achieving SD 2030 Goals

Our sustainability strategy is led by our Sustainable Development (SD) 2030 Plan, developed in 2016, and aligned with the earlier SD 2030 Plan of our parent LafargeHolcim

	Target 2030 Performance 2020 SDGs impacted	Reduction of CO2emissions 400 kg CO2/tof cement 493kg/tof T of cementitious materials Net specific CO2emissions Climate and energy	Use30 million tonnes of waste derived resources per year Consumed9.3million tonnesof waste derived resources Circular economy	Water Positive Index –5 (number of times) 1.1(number of times)* Environment**	0.9million – Number of new beneficiaries Touched8.3lakhpeople through community development projects Community

*Certification pending

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Promoting a Safe, Inclusive and Vibrant Culture

Our employees have opportunities to learn, connect and be a voice in our workplace

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ACC-Ambuja Leadership

Academy (AALA) - make learning an everyday employee experience

Super Assisted

Intelligent Learning

(SAIL) - Digital learning route

Talent review, succession planning with robust performance management system

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Counselling service ‘ SPARSH’ for mental wellness and continuous engagement with employees

Encourage gender diversity

– Boots on the Ground initiative to focus on employee engagement with top management

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Delivering a Wider, Meaningful Impact

Areas

Quality Education

Livelihood

34,801 186 Beneficiaries of education initiatives

14,304 Lives touched

Schools supported for quality education

65

13,576 7,695 Children supported Women empowered through through Anganwadis Self Help Groups (SHGs)

Government schools equipped with e-learning systems

1,737 Youth benefitted through employability linked skills training

₹ 4.52 Crore Savings mobilised through SHGs

2 Farmers Producers Organisations (FPOs) made operational

WASH (Water, Sanitation, Health & Hygiene) 2.26 Lakh 29,293 Lives touched Lives touched through safe drinking water projects

9

38,339 People reached through health camps

Villages supported for achieving Open Defecation Free (ODF) status

26,923 Lives touched through solid waste management projects

5,654

Lives touched through ART/STI centres

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Good Governance Driving Business Forward

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----- Start of picture text -----

 Committed to high standards Board balance chart
of ethical conduct. EthicalView
Strategic
Reporting Policy (‘EVRP’) is the
oversight 1
vigil mechanism instituted by us to
report concerns about unethical
behaviour, in compliance with
applicable regulations
Reinforcing 5
 A Business Resilience Team Accountability risk culture
Core 6
(BRT) comprising experts from
various teams was constituted to Principles
address the COVID-19-related
of Governance
challenges in our India operations
Non-executive and independent Directors
(including women director)
Corporate Compliance
social with laws and Other Non-executive Directors
responsibility regulations
Executive Director
----- End of picture text -----

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COVID-19 update: Quick and Decisive Actions

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Protecting employees and stakeholders

Reaching out to local communities

• Work from home arrangements for all office staff

• Protecting frontline workers

• Extending support to migrant workers

• Strict adherence to social distancing in operations and offices

• Supporting vulnerable communities

• Webinars for mental wellbeing and  Educating about social distancing resilience

• Sanitisation drive

• Strong promotion of “contactless’’ digital initiatives

• Serving food, love and empathy

• Creation of company-wide COVID-19 online resource center available to all our employees

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Responding as a business

• Increased communication with all stakeholders to maintain business continuity

• Accelerated strategic priorities

• Executed our plan “HEALTH, COST & CASH” to protect people and business

4,29,752

Cotton masks produced and distributed

2,81,000

Cooked food packets distributed

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Board of Directors

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Mr N S Sekhsaria

Non-executive and Non-independent Director

Key expertise: Management, Marketing and Logistics. Manufacturing efficiencies and Sustainable Development

Key qualification: Bachelors Degree in M Chemical Engineering from University of Bombay Mr Sridhar Balakrishnan Managing Director and Chief Executive Director Key expertise: Sales, Business Finance and Supply Chain Key qualification: Engineering graduate from Institute of Technology, Varanasi and MBA M M M M from XLRI, Jamshedpur Audit Committee Stakeholders’ Relationship Committee Nomination & Remuneration (N&RC)

Managing Director and Chief Executive Director Key expertise: Sales, Business Finance and Supply Chain

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Mr Jan Jenisch

Mr Martin Kriegner

Non-executive and Non-independent Director Key expertise: General Management

Non-executive and Non-independent Director

Key expertise: Sustainability, General Management, Strategy and Operations

Key qualification: Bachelors Degree from University of Fribourg and an MBA degree

Key qualification: Graduate from Vienna University with Doctorate in Law and MBA from M M University of Economics in Vienna Ms Falguni Nayar Non-executive and Independent Director Key expertise: Financial services, Retail and E-Commerce Key qualification: Graduate from Sydenham College of Commerce and Economics; post- C M graduate from Indian Institute of Management, Ahmedabad

Mr Neeraj Akhoury

Non-executive and Non-independent Director

Key expertise: Corporate Strategy, Sales and Distribution Management

Key qualification: Bachelors Degree in Economics and an MBA from University of M Liverpool, General Management from C M XLRI, Jamshedpur and alumni of Harvard Business School (GMP) Corporate Social Responsibility (CSR) & Sustainability Committee C Committee Chairman Risk Management Committee M Committee Member Compliance Committee

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Board of Directors (Contd.)

Mr Vinayak Chatterjee

Non-executive and Independent Director

Key expertise: Infrastructure Planning and Implementation

Key qualification: Economics (Hons) from St. Stephens College, Delhi University and an M M alumni of Indian Institute of Management, Ahmedabad Mr Damodarannair Sundaram Non-executive and Independent Director Key expertise: Corporate Finance, Business Performance, Mergers & Acquisitions, Talent/People Management and Strategy C M Key qualification: Post-graduate in Management Studies (MMS), Fellow, Institute of Cost Accountants, Harvard Business School’s Advanced Management Programme Audit Committee Stakeholders’ Relationship Committee Nomination & Remuneration (N&RC)

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Mr Shailesh Haribhakti

Mr S K Roongta

Non-executive and Independent Director

Non-executive and Independent Director

Key expertise: General Management, Mines and Metallurgy

Key expertise: Auditing, Tax and Risk Advisory Services

Key qualification: Chartered Accountant, Cost Accountant, Certified C M C M Internal Auditor, Financial Planner and Fraud Examiner M

Key qualification: Bachelor of Engineering from the Birla Institute of Technology & Science (BITS), Pilani and PG Diploma in Business Management - International Trade from IIFT, New Delhi, Fellow member of All India Management Association (AIMA)

C M M

Mr Sunil Mehta

Shri M.R.Kumar

Non-executive and Independent Director

Non-executive and Non-independent Director

Key expertise: Banking, Financial Services, Insurance and Investments.

Key expertise: Insurance, Marketing, Human Resource and Pensions

Key qualification: Graduate from Shri Ram Key qualification: Bachelor of College of Commerce, Delhi University. Science, Licentiate C M Fellow Member of the Institute of Chartered Accountants of India. Alumni of the Wharton School of Management, University of Pennsylvania

Corporate Social Responsibility (CSR) & Sustainability Committee C Committee Chairman Risk Management Committee M Committee Member Compliance Committee

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Registered Office Cement House, 121, Maharshi Karve Road, Mumbai – 400 020

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