Ambuja Cements Ltd. — Investor Presentation 2020

Feb 20, 2020

Ambuja Cement

ACL:SEC:

20 February 2020

BSE Limited,	National Stock Exchange of India Ltd.,
Phiroz Jeejeebhoy Towers,	Plot No.C/1 'G' Block
DalalStreet, Mumbai-400023	Bandra- Kurla Complex
corp.relations@bseindia.com	Bandra East,
	Mumbai 400 051
	cmlist@nse.co.in
Deutsche Bank	Societe de la Bourse de Luxembourg,
Trust Company Americas	Avenue de la Porte Neuve
Winchester House	L-2011 Luxembourg,
1 Great Winchester Street	B.P 165
London EC2N 2DB

Dear Sir,

Sub: Investor Presentation on the Financial Results for the year ended December 31 2019.

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 ended 31st December 2019.

Kindly take the same on record.

Thanking you,

Yours faithfully, For Ambuja Cements Limited

Kajiv n. Georgini

Rajiv Gandhi Company Secretary Membership No. A11263

AMBUJA CEMENTS LIMITED

Elegant Business Park, MIDC Cross Road 'B', Off Andheri Kurla Road, Andheri (E), Mumbai 400059. Liegarit Dublites Fark, MIDU UTOSS NUAU D, UIT ANGIBIT NUMA NUAU, ANGIBIT (E), MUMDAN 400059.Tel.: 022- 4066 7000 / 6616 7000, Fax: 022 - 6616 7711 / 4066 7711. Website: www.ambujacement.comRegd. Off. : P. O. Ambujanagar

Fourth quarter and Full year results - 2019

February 2020

PERFORMANCE HIGHLIGHTS

Q4 2019

• Net Sales up 10% YoY
• Cement realisations up ~3% YoY
• Higher mix of Premium Products, 14% growth YoY
• EBITDA up 36% YoY
• EBITDA Margin at 18.0% up by 340 bps YoY
• Profit Before Exceptional items &tax up 32% YoY

CY 2019

• Net Sales up 3% YoY
• Cement realisations up ~4% YoY
• Higher mix of Premium Products, 13% growth YoY
• EBITDA up 14% YoY
• EBITDA Margin at 18.9% up by 170 bps YoY
• Profit Before Exceptional items & tax up 19% YoY

New Products

Ambuja Kawach launch 11th December 2019 - Gujarat Ambuja Kawach Product Unveiling

Dry Mortar & Construction Chemicals launched in Mumbai Market on 16th October 2019

'Zero Harm' Ambuja Cement ranks 6th in 'Responsible Business Rankings 2019' report Ambuja's MCW plant wins 'Vasundhara Award 2019' from Maharashtra Government for embedding best environment practices

02 PERFORMANCE ANALYSIS

Sales Volumes and Net Sales

Robust Top-line performance

YoY growth Q4'19 vs Q4'18

EBITDA ₹ Cr and EBITDA/Tonne trend

Operating EBIDTA increased by 36% for the quarter backed by strong top-line and decline in power & fuel and logistics costs

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

Power & fuel and logistics cost see reduction on account of low cost of fuel, operational efficiencies and optimisation in supply chain

8

Key Costs - Raw Material Costs and Other Expenses trend

₹/T

Raw Material

₹/T

Total cost sees a reduction YoY basis i.e. Q4 19 vs Q4 18

Costs lower backed by saving in fuel cost and logistics cost in Q4'19

Marwar Mundwa Update Greenfield plant (Marwar Mundwa) will cater to North & West regions and optimize clinker distribution in North region

Our greenfield project at Marwar Mundwa, Rajasthan, is well on track for commissioning by year end and will add 4.5 Mn tonnes to cement volumes in our key growth markets

Capacity

• Clinkerisation 9,500 Ton Per Day
• Cement Grinding 1.8 Million Ton Per Annum
• 15 MW Waste Heat Recovery System

Ambujanagar

STANDALONE AND CONSOLIDATED RESULTS

Standalone Results

					₹ Cr
Particulars	Q4	Q4	∆ %	Year	Year	∆ %
	2018	2019		2018	2019
Sales Volume MnT	6.13	6.54	6.7%	24.18	23.96	-0.9%
Price ₹ per bag (Cement)	229	235	2.7%	231	240	4.0%
Price ₹ per ton (CLC)	4,584	4,709	2.7%	4,617	4,785	3.6%
Sales	2,765	3,038	9.9%		10,977 11,353	3.4%
Other Operating Income	98	98	-0.5%	380	315	-17.1%
Revenue from operation	2,863	3,136	9.5%		11,357 11,668	2.7%
Other non operatingincome	85	66	-22.8%	375	427	13.7%
Total Income	2,948	3,201	8.6%		11,732 12,094	3.1%
Operating Expenses	2,459	2,588	5.2%	9,465	9,519	0.6%
Operating Expenses ₹ ton (CLC)	4,012	3,958	-1.4%	3,902	3,956	1.4%
EBITDA	404	548	35.8%	1,891	2,149	13.6%
EBITDA margin %	14.6%	18.0%	3.4pp	17.2%	18.9%	1.7pp
EBITDA ₹ per tonne	659	837	27.0%	780	893	14.6%
Finance cost	18	24	30.1%	82	84	1.4%
Depreciation	136	149	8.9%	548	544	-0.8%
Profit before exceptional items and tax	334	441	31.9%	1,636	1,948	19.1%
Exceptional items	130	-		130	-
Profit beforetax	204	441	115.8%	1,506	1,948	29.3%
Tax expenses	(333)	(14)		19	419
Profit after Tax	537	455	-15.3%	1,487	1,529	2.8%
EPS ₹ per share	2.71	2.29	-15.5%	7.49	7.70	2.8%
Profit afterTax (Adjusted) #	250	352	40.8%	1,200	1,426	18.8%

Quarter 4 Performance

• Sales Revenue grew by 9.9%
• Operating expenses lower by 1.4%
• EBITDA Margin up by 340 bps
• Tax expenses
• o Effects of adoption of lower tax rate @ 25.17%
• o previous year, write back ₹ 372 Cr

Adjustment made as under :

2019 - Write back of deferred tax ₹ 103 crore on account of change in income tax rate.

2018 - Write back of income tax ₹ 372 crore and exceptional expenses (net of tax ₹ 85 crore)

Consolidated Results

Particulars	Q42018	Q42019	∆ %	Year2018	Year2019	∆ %
Cement Volume (MnT)	13.63	14.33	5.1%	52.58	52.85	0.5%
Sales	6,545	6,963	6.4%	25,419	26,539	4.4%
EBITDA	908	1,117	23.1%	4,011	4,597	14.6%
EBITDA margin (%)	13.9%	16.0%	2.1 pp	15.8%	17.3%	1.5 pp
Depreciation	292	310	6.0%	1,154	1,153	-0.1%
Other Income	123	95	-22.7%	371	581	56.3%
Finance Cost	42	53	27.0%	171	170	-0.4%
Share in profitof joint venture	3	6	83.1%	13	20	59.4%
Profit Before Exceptional Item & tax	701	856	22.2%	3,070	3,875	26.2%
Exceptional Item	104	-	-100.0%	152	-	-100.0%
Profit Before Tax	596	856	43.6%	2,919	3,875	32.8%
Tax Expenses	(781)	134		(54)	1,092
Profit Before NonControlling Interest	1,377	722	-47.5%	2,973	2,783	-6.4%
Non Controlling Interest	404	131	-67.6%	795	688	-13.5%
Profit After NonControlling Interest	973	592	-39.2%	2,177	2,095	-3.8%
EPS ₹ per share	4.91	2.98	-39.3%	10.97	10.55	-3.8%
Profit Before NonControlling Interest(Adjusted) #	573	619	8.0%	2,199	2,680	21.9%

Quarter 4

• Increase in volume by 5.1% result in topline grew by 6.4%
• Profit before Exceptional Item & Tax up by 22%

Adjustment made as under :

2019 - Write back of deferred tax ₹ 103 crore on account of change in income tax rate

2018 - Write back of income tax ₹ 873 crore and exceptional expenses (net of tax ₹ 99 crore). For Q4 2018, exceptional expenses ₹ 68 crore (net

of tax)

Ambuja Product Portfolio

Buildem

Powercem 43

AIS

Powercem 53

PPC

RIVER $IS:269$ $\overline{\text{S}}$ AmbujaRALICEIVIHet Bark Station's Center ad least $\begin{tabular}{l|c|c|c|} \hline \textbf{AMBUJACEMENTS LTD} \ \hline \textbf{RMI} : \textbf{BWATABAR} \ \textbf{NAT} : \textbf{BWATABAR} \ \textbf{RACAR} & \textbf{PHATBAR} \ \textbf{PECB} & \textbf{CFLABJARABAR} & \textbf{GILABATSE T} \ \textbf{SSE BRADE OEDRAF} & \textbf{PORTJABCEDF} \end{tabular}$ $\mathsf{nmax}_i = 50 , \mathsf{u}$

Railcem

Kawach

RMC

Plazto

ColorSave

Tilocol MT

Ambuja Cement

15

Sustainability - Progress of Sustainable Construction Initiatives 2019 Products, Solutions and knowledge/capability building

Ambuja Cement's innovative green building offering – "Ambuja Plus Cool Walls" – for Individual Home Builders (IHBs) launched in 11 states. Sold 1,02,921 Cubic Meters of "Ambuja Cool wall blocks" and 94,207 Bags Ambuja "Blockol" jointing mortar

Sold 24,150 MT (6.03 Lakhs bags) of Ambuja "PuraSand" in Mumbai Market. Work in

progress on introducing "PuraSand" for Concrete application

Modular Curing Solution, a unique application enhances hydration process by preventing water / moisture evaporation was provided at 7,714 sites saving ~93 million litres water

• Creating awareness about Rain Water Harvesting & providing technical guidance for implementation
• Rain Water Harvesting provided at 893 sites, conserving ~75 million litres water per year

• Instant Mix Proportioning Solution provided at 43,433 saving ~54 million litres water
• Contractors/Masons Training provided to 16,082 persons
• Knowledge Sharing with 11,751 Professionals through Ambuja Knowledge Centres

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.

Ambuja Cement