Ambuja Cements Ltd. — Regulatory Filings 2021

Apr 29, 2021

ACL:SEC: April 29, 2021

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BSE Limited,	National Stock Exchange of India Ltd.,
Phiroz Jeejeebhoy Towers,	Plot No.C/1 'G' Block
Dalal Street, Mumbai – 400 023	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,
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Dear Sir,

Sub: Investor Presentation on the Financial Results for the quarter ended March 31, 2021

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, please find enclosed the Investor presentation on financial results for the quarter ended March 31, 2021.

Kindly take the same on record.

Thanking you,

Yours faithfully, For Ambuja Cements Limited

Rajiv Natwarlal Gandhi Digitally signed by Rajiv Natwarlal Gandhi DN: c=IN, o=Personal, postalCode=400066, st=Maharashtra, 2.5.4.20=3a36db83fd05f407f18fda649feacb1989d875e5637db5 83340b4ecc46796210, pseudonym=9A435294AE7485A6BD242F442CFE17808AE7DAF 3, serialNumber=5CEA5EE8CBE3142AACBF25F4A7A9BED624DB5 527F90B86B63752C706E31A3BFA, cn=Rajiv Natwarlal Gandhi Date: 2021.04.29 18:10:48 +05'30'

Rajiv Gandhi Company Secretary Membership No. A11263

J A N U A R Y - M A R C H 2 0 2 1

Safe-harbour statement

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. 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.

Company Overview

Slide 4 - 6

Performance Highlights

Slide 7 - 1 5

Strategic Priorities

Built on a strong foundation

To be the most sustainable and competitive company in our industry Our Vision

Our Purpose

To create value for all

• Delighted Customers
• Inspired Employees
• Enlightened Partners
• Energized Society
• Loyal Shareholders
• Healthy Environment

Operational	People, partners and community	Environment
29.65 MTPA Installed cement capacity	~5,000 Employee base	5.1% Thermal Substitution Rate
291 MW Captive power plant capacity	~50,000 Channel partners	~63% Clinker factor
5 Bulk cement terminals	30 Ambuja Knowledge Centres across the country	8x Water positive

Appreciated for our efforts across platforms

Indian Chamber of Commerce Social Impact Awards: Team Sankrail won for Gender Equality and Women Empowerment in Large Category and Team Farakka won for Healthcare in the Small Project Category

Ambuja Kawach, among the first 10 LH solutions (first in India) recognized by Solar Impulse Foundation's efficient solution label, acknowledging world-leading technologies that protect the environment in a profitable way

Ambuja's Contractor Loyalty Program, 'Ambuja Abhimaan' won the Best Mobile Loyalty Program under the Customer Loyalty category at the Customer Fest Leadership Awards 2021

Ambuja Cement awarded the Times Best Cement Brand - East at the Times Business Awards 2021

Robust financial performance backed by strong growth in volumes and efficiency gains

CLC – Cement + Clinker

Performance driven by

Increased Penetration of Premium / Special Cement	I Can program resulting in operational efficiency	Progress on sustainable construction - Cool Wall Blocks and PuraSand
Establishing linkages between all stakeholder through digital eco-system	Synergies under Master Supply Agreement with ACC continues to be strongly positive for both companies	Expansion plan on track to capture future growth

Financial results – Standalone

	Quarter Ended March	2021
(all amount in ₹ Crore)	Q1 2020	Q1 2021	Change
Net Sales	2,760	3,579	29.7%
EBITDA	603	977	61.9%
EBITDA Margin (%)	21.9%	27.3%	5.4 pp
Operating EBIT	465	851	83.0%
Operating EBIT Margin (%)	16.9%	23.8%	6.9 pp
Profit Before Tax	530	886	67.1%
Tax Expenses	131	222	68.7%
Profit After Tax	399	665	66.5%
Earnings Per Share (₹/share)	2.01	3.35	66.5%

Performance analysis – Sales Volume and Price

Sales volumes grew by 25.6% for the quarter, Sales Volumes grew across regions in Q1 2021

Realisations* (₹/tonne)

Realisations per tonne grew 3.2% for the quarter supported by good growth in Special / Premium products

Performance analysis – EBITDA

EBITDA margins grew by 5.4 pp for the quarter ended March 2021

EBITDA per tonne grew by 28.9% supported by growth in volumes including special products and operational and logistics efficiency

Performance analysis – Costs

Power and fuel Cost (₹/tonne)

Power and fuel per tonne cost increased by 4.1% for the quarter due to rising input costs such as petcoke and coal

Raw material Cost (₹/tonne)

Raw Material per tonne costs declined 3.4% on account of better raw material mix

Performance analysis – Costs

Freight and forwarding Cost (₹/tonne)

Freight and forwarding per tonne costs declined by 5.6% due to continuous improvement in logistics efficiencies in addition to MSA gains, above savings were partly offset by increase in diesel prices

Other Expenses (₹/tonne) 862 713 Q12020 Q12021

Other expenses per tonne declined by 17.2% due to continuous focus on fixed cost optimisation and operating leverage

Total cost per tonne declined by 5.4% on account of lower freight, raw material & other expenses

Total Cost (₹/tonne)

Financial results – Consolidated

	Quarter Ended March 2021
(all amount in ₹ Crore)	Q1 2020	Q1 2021	Change
Net Sales	6,129	7,617	24.3%
EBITDA	1,191	1,838	54.3%
EBITDA Margin (%)	19.4%	24.1%	4.7 pp
Operating EBIT	895	1,570	75.4%
Operating EBIT Margin (%)	14.6%	20.6%	6.0 pp
Profit Before Tax	1,007	1,642	63.1%
Tax Expenses	264	413	56.6%
Profit After Tax	743	1,228	65.4%
Profit After Tax and minority	554	947	70.9%
Earnings Per Share (₹/share)	2.79	4.77	70.9%

Growth and Competitiveness

Capacity Expansion

Marwar Mundwa, Nagaur, Rajasthan

• Greenfield integrated plant with 3 MTPA clinkerisation and 1.8 MTPA cement grinding to commence operations in Quarter 3, 2021
• Progressing on our ambition to reach 50 million tons in the mid-term

Special / Premium Products

• Special / premium cement contributed ~12% of the total sales volume in Q1'21
• Ambuja 'Kawach' has been endorsed globally by the "Solar Impulse Efficient Solution" label, recognizing the Company's innovative product that protects the environment in a profitable way. Ambuja 'Kawach' is the first cement brand from India to be awarded this label.

Operational Efficiency

• I CAN Program to reset the cost base in manufacturing and supply chain
• Installing waste heat recovery system and solar power plants across locations
• Effectively generate waste-derived materials for use in the kilns through Geocycle
• Installations of wet flyash dryers, bringing about improvement in raw material cost

2 Innovation & Digitalization

Production

• Technical Information System (TIS) to help effectively monitor and manage plant productions and quality through real time information access
• Performance and Collaboration Tool (PACT), helping in real time performance capturing and reporting of Operational and Performance KPI
• Special mechanical interventions on systems through use of tool / solutions for predictive maintenance, enhancing plant reliability and availability

Logistics

• Blue Yonder enabling organisation from planning to execution besides network optimisation
• Transport Analytics Centre (TAC) for freight optimisation, distribution safety and customer services across plants

Innovation & New Solutions

• Creating solutions and innovative products with sustainability focus
• Ambuja Certified Technology (ACT), have created a film series to educate our consumers on best construction practices enabling them to build stronger homes. These films are promoted through internal channels to our stakeholders and will be promoted to Individual House Builder (IHB) using social media websites
• Promoted Cool Walls & Ambuja Kawach through digital lead generation campaigns

Sustainability goals

SD 2030 Plan

Aligned with LafargeHolcim's Sustainability Strategy, the Sustainable Development Ambition 2030 provides critical impetus to the company's objective to achieve growth through sustainable operations

Climate and energy CO2 Reduced (kg CO² / t cem) 463 Waste Re-used [Million tonnes] 13.5 Water Saved (Fresh water consumption: ltr / t cem) <75 Value Shared (Million new beneficiaries) 0.8 Circular Economy Water and Nature People and communities Target 2030 518.2 2.2 60 0.3 for 2020, on track for 2021 Performance Q1 2021 Thermal Substitution Rate achieved in Q1 2021 ~63% Clinker factor Zero fatality Across all plants in Q1 2021

Maintain 'Best in Class' performance through continuing global support

5.1%

Community outreach through Ambuja Cement Foundation (ACF)

Ambuja Cement Foundation (ACF) – the corporate social responsibility arm of Ambuja Cement – has been pivotal in advancing the company's objective to be a socially responsible corporate citizen since its establishment in 1993

• ~ 9.9 million cubic meter additional water storage created
• 577 water harvesting structures constructed
• About 385 ha area covered under micro irrigation
• 2,319 students trained by SEDI and 741 placed across locations

• 810 farmers involved in exotic or offseason vegetable cultivation and scaffolding structures in Sankrail

• International Women's Day celebrated at locations with women leaders receiving awards at local and district level

• Organized a virtual roundtable on gender equality in Manufacturing in association with Global Reporting Initiative, South Asia. The key focus discussion was to ideate and brainstorm strategies to improve gender equity. Representatives from the United Nations and manufacturing industry were key speakers

SEDI - Skill and Entrepreneurship Development Institute

Continuing the fight against COVID-19

IICT - Indian Institute of Chemical Technology SPOC - Single Point of Contact ACF – Ambuja Cement Foundation

• Communication (IEC) Materials and 2 videos were shared with SPOCs to be disseminated to beneficiaries
• Under the SAANS project 10 women have made 20,000 face masks which is quality checked by IICT Hyderabad
• More than 10.9 lakhs beneficiaries vaccinated so far till date

COVID-19 drive in ACF villages 5,558 frontline health workers from ACF villages and 210 ACF

• ACF conducted awareness and input session for all ACF staff, health workers and beneficiaries to break all myths and rumours and initiated behavior change communication
• government departments during the vaccination drive Phase 1 & 2 to get maximum coverage, mobilized in registration and made arrangements for transportation, seating and drinking water stations

ACF assisted local health and

staff vaccinated

Registration of frontline workers and elderly were carried out in phase 1 and comorbid population in phase 2

CORPORATE OFFICE

Elegant Business Park MIDC Cross Road B Off Andheri -Kurla Road Andheri (E) Mumbai – 400 059

REGISTERED OFFICE

PO Ambujanagar Taluka Kodinar Gir Somnath district Gujarat – 362 715