Ambuja Cements Ltd. — Investor Presentation 2020

Apr 27, 2020

27[th] April, 2020

ACL:SEC:

Ambuja Cement

Bombay Stock Exchange Limited Phiroz Jeejeebhoy Towers, Dalal Street, Mumbai – 400 023	National Stock Exchange of India Ltd., Plot No.C/1 'G' Block Bandra – Kurla Complex Bandra East, Mumbai 400 051
Deutsche Bank Trust Company Americas Winchester House 1 Great Winchester Street London EC2N 2DB, CtasDocuments <ctas.documents@db.com	Societe de la Bourse de Luxembourg, Avenue de la Porte Neuve L-2011 Luxembourg, B.P 165 "Luxembourg Stock Ex-Group ID " <ost@bourse.lu

Dear Sirs,

Sub: Investor Presentation on Financial Results for the first quarter ended 31[st] March 2020

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, please find enclosed the Investor Presentation on financial results for the year first quarter ended 31[st] March 2020.

Kindly take the same on record.

Thanking you,

Yours faithfully, For AMBUJA CEMENTS LIMITED

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RAJIV GANDHI COMPANY SECRETARY Membership No A11263

AMBUJA CEMENTS LIMITED Elegant Business Park, MIDC Cross Road B, Andheri (e) Mumbai – 400059 Tel 022: 40667000, Website: www.ambujacement.com Regd off: P.O. Ambujanagar, Tal Kodinar Dist Gir Somnath Gujarat CIN: L26942GJ1981PLC004717

Ambuja Cement Foundation has been driving health and food campaigns with health awareness that have reached over 500,000 people.

First quarter results - 2020

© LafargeHolcim Ltd 2015

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27[th] April 2020

CONTENTS

 Performance Highlights

• Performance Analysis

• Standalone and Consolidated results

• Products Portfolio

• Ambuja Cement Foundation – Community outreach measures to prepare for COVID-19

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2

Q1 2020 PERFORMANCE HIGHLIGHTS

Q1 2020

EBITDA Margin at 21.9% up by 560 bps YoY

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EBITDA up 30% YoY

Profit after tax at ₹ 399 crore up 35% YoY

Net Sales de-grew 3% YoY, however till February Ambuja had recorded a good growth

Cement realisations up 6% YoY

Higher growth in Premium Products, 3% growth YoY Total Operating expenses, ₹ PMT is at same level YoY

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CONTENTS

 Performance Highlights

 Performance Analysis

• Standalone and Consolidated results

• Products Portfolio

• Ambuja Cement Foundation – Community outreach measures to prepare for COVID-19

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4

Q1 2020 PERFORMANCE ANALYSIS

Sales Volumes and Net Sales

Million Tonnes – Cement & Clinker

₹ Cr.

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-10%
6.54
6.40
5.87 5.77
5.26
Q1 19 Q2 19 Q3 19 Q4 19 Q1 20
Sales Volumes
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-3%
3,038
2,912
2,847
2,760
2,556
Q1 19 Q2 19 Q3 19 Q4 19 Q1 20
Net Sales
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Volume de-grew by 10%, however till February Ambuja had recorded a healthy volume growth, which was impacted in March 2020 due to the nationwide lockdown.

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YoY growth Q1’20 vs Q1’19

EBITDA ₹ Cr and EBITDA / Tonne trend

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₹ Cr.
140 cr.
+30%
698
603
548
463
440
Q1 19 Q2 19 Q3 19 Q4 19 Q1 20
EBITDA
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₹/T
322/t
+44%
1190
1046
837 837
724
Q1 19 Q2 19 Q3 19 Q4 19 Q1 20
EBITDA/Tonne
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Operating EBIDTA increased by 30% for the quarter on account of higher realisations, growth in premium products and lower fuel costs

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YoY growth Q1’20 vs Q1’19

Key Costs - Power & Fuel and Freight & Forwarding Costs trend

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₹/T
₹/T
135/t 21/t
-12%
-2%
1,138 1,308
1,110 1,292 1,281 1,287
1,261
1,037
1,023
975
Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20
Power & Fuel Freight & Forwarding
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Power & fuel and logistics cost see reduction on account of low cost of fuel coupled with plant efficiency and optimisation in supply chain

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YoY growth Q1’20 vs Q1’19

Key Costs - Raw Material Costs and Other Expenses trend

₹/T

₹/T

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+12%
485
438
401
389 390
Q1 19 Q2 19 Q3 19 Q4 19 Q1 20
Raw Material
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+11%
1001
861
840
801
773
Q1 19 Q2 19 Q3 19 Q4 19 Q1 20
Other expenses
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Raw Material cost increased mainly due to increase in Flyash cost (mainly in North) Other expense in absolute terms sees a marginal increase of 0.4% YoY i.e. from ₹ 494 cr. to ₹ 496 cr.

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YoY growth Q1’20 vs Q1’19

Total cost flat YoY basis i.e. Q1 20 vs Q1 19

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₹ / t
Flat
Total Cost 3858
3853
Raw Material 438
389
Employee Cost
261 299
Power & Fuel 975
1110
1287
Freight & Forwarding 1308
Other Expense
861
773
Change in inventory
-3 15 -68 66
Purchase of Traded goods
Q1 19 Q1 20
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Costs lower backed by saving in fuel cost and logistics cost in Q1’20

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YoY growth Q1’20 vs Q1’19

CONTENTS

 Performance Highlights

• Performance Analysis

• Standalone and Consolidated results

• Products Portfolio

• Ambuja Cement Foundation – Community outreach measures to prepare for COVID-19

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Standalone Results: Jan-Mar 2020

Particulars	UoM	Jan-	Jan-	∆ %
		Mar	Mar
		2019	2020
Sales Volume	MnT	6.37	5.76	-9.6%
Price (Cement)	₹/bag	226	240	6.1%
Sales	₹ Cr	2,847	2,760	-3.1%
Other Operating Income	₹ Cr	80	67	-16.4%
Revenue from operation	₹ Cr	2,928	2,828	-3.4%
Revenue from Operation	₹ per ton	4,578	4,904	7.1%
Other non operating income	₹ Cr	240	88	-63.3%
Total Income	₹ Cr	3,168	2,916	-8.0%
Operating Expenses	₹ Cr	2,464	2,224	-9.7%
Operating Expenses	₹ per ton	3,853	3,858	0.1%
EBITDA	₹ Cr	463	603	30.2%
EBITDA Margin	%	16.3%	21.9%	5.6 pp
EBITDA	₹ per ton	724	1,046	44.4%
Finance cost	₹ Cr	17	23	31.9%
Depreciation	₹ Cr	131	138	5.0%
Profit before tax	₹ Cr	555	530	-4.4%
Tax expenses	₹ Cr	128	131	2.9%
Profit after Tax	₹ Cr	427	399	-6.5%
Profit after Tax without ACC Dividend	₹ Cr	295	399	35.1%
Earning per Share	₹	2.15	2.01	-6.5%

 EBITDA Margin up from 16.3% to 21.9%

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Consolidated Results: Jan-Mar 2020

Particulars	UoM	Jan-Mar	Jan-Mar	∆ %
		2019	2020
Cement Volume	MnT	13.84	12.19	-11.9%
Sales	₹ Cr	6,694	6,129	-8.4%
Other Operating Income	₹ Cr	137	121	-11.7%
Revenue from operations	₹ Cr	6,831	6,250	-8.5%
Other Non Operating Income	₹ Cr	263	142	-46.0%
Total Income	₹ Cr	7,093	6,391	-9.9%
Operating Expenses	₹ Cr	5,834	5,058	-13.3%
EBITDA	₹ Cr	997	1,191	19.5%
EBITDA margin	%	14.9%	19.4%	4.5 pp
Finance Cost	₹ Cr	38	34	-12.2%
Depreciation	₹ Cr	280	296	6.0%
Share in profit of joint venture	₹ Cr	5	4	-22.6%
Profit Before Tax	₹ Cr	946	1,007	6.4%
Tax Expenses	₹ Cr	251	264	5.2%
Profit Before Non Controlling Interest	₹ Cr	695	743	6.8%
Non Controlling Interest	₹ Cr	200	188	-5.8%
Profit After Non Controlling Interest	₹ Cr	495	554	11.9%
EPS	₹	2.50	2.79	11.6%

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CONTENTS

 Performance Highlights

• Performance Analysis

• Standalone and Consolidated results

• Products Portfolio

• Ambuja Cement Foundation – Community outreach measures to prepare for COVID-19

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13

Ambuja Product Portfolio

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Railcem

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Buildem
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Powercem 53 Powercem 43

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PPC Roof Special Compocem

Kawach

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PuraSand
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Plazto ColorSave

Seelan Seal

RMC

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Tilocol VT

Tilocol MT

Tilocol ST

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Cool Wall

Blockol

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CONTENTS

 Performance Highlights

• Performance Analysis

• Standalone and Consolidated results

• Products Portfolio

• Ambuja Cement Foundation – Community outreach measures to prepare for COVID-19

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15

Community Outreach through Ambuja Foundation

Quick response by Ambuja Cement Foundation to help communities prepare for COVID 19 (1 of 2)

 Creation of SPOCs

Selected individuals from the community to be a Single Point of Contact (SPOCs) between the community and ACF. 3953 SPOCs created till date in 2000 villages

• A SPOC can be a lead farmer, field facilitator, SHG women, Sakhi, Village Volunteer

• The SPOCs works alongside health authorities

• Messages like social distancing, helpline numbers, emergency numbers are shared by the SPOCs

 Self Health Group (SHG) women make face masks

Looking at an economic opportunity for our women during this lockdown to start their own micro-enterprise, ACF approached the women to help local authorities with face masks

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SHG women making face masks
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Social distancing circles marked in community areas

Empowered women from 9 locations have created more than 54,000 face masks and distributed across locations.

Currently servicing orders from all Ambuja plants for staff and workers

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Community Outreach through Ambuja Foundation

Quick response by Ambuja Cement Foundation to help communities prepare for COVID 19 (2 of 2)

 Dissemination of Mobile Messages

Since the team was restricted from reaching villages due to lockdown, they used mobile messaging systems to send daily messages/images about the virus to beneficiaries.

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Farmer and SPOC listening to mobile message

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Farmers taking precautions in the fields

Reached over 5 lakh population of farmers and beneficiaries on with educative awareness images & messages through mobile messaging systems pushed out by the SPOCs

 Creation and Distribution of Ration Kits

Critical Need for Ration Kits led to supporting 7068 families in Chandrapur, Dadri, Roorkee, Ropar, Bhatinda, Marwa Mundwa and Ambujanagar. Support provided to trainees held-up in towns/cities outside villages.

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Distribution at the office area

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Distribution by women federation

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Distribution in the community

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17

DISCLAIMER

Cautionary statement regarding forward-looking statements

This presentation may contain certain forward-looking statements relating to Ambuja Cements Ltd. (“ Ambuja ”, or “ Company ”) and its future business, development and economic performance. These statements include descriptions regarding the intent, belief or current expectations of the Company, its subsidiaries and associates and their respective directors and officers with respect to the results of operations and financial condition of the Company, subsidiary or associate, as the case may be. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to (1) competitive pressures; (2) legislative and regulatory developments; (3) global, macroeconomic and political trends; (4) fluctuations in currency exchange rates and general financial market conditions; (5) delay or inability in obtaining approvals from authorities; (6) technical developments; (7) litigation; (8) adverse publicity and news coverage, which could cause actual development and results to differ materially from the statements made in this presentation. Company assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise. Any forward-looking statements and projections made by third parties included in this presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

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.

This presentation and its contents are confidential and should not be distributed, published or reproduced, in whole or in part, or disclosed by recipients directly or indirectly to any other person.

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18

Confidential – Not to be distributed

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