UltraTech Cement Ltd — Investor Presentation 2021

Oct 18, 2021

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18[th] October, 2021

BSE Limited The Manager Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers, The National Stock Exchange of India Limited Dalal Street, “Exchange Plaza”, Bandra-Kurla Complex, Mumbai 400 001. Bandra (East), Mumbai 400 051. Tel.: 22721233/4 Tel.: 26598236 Fax: 022 2272 2039 Fax: 2659 8237 / 38. Scrip Code: 532538 Scrip Code: ULTRACEMCO

Dear Sirs

Sub: Investor Presentation for the quarter and half year ended 3 ~~0~~ [th] September, 2021.

Attached is an investor’s presentation on the performance of the Company for the quarter and half year ended 30[th] September, 2021.

The same is for your information please.

Yours very truly,

For UltraTech Cement Limited

Sanjeeb Kumar Chatterjee Company Secretary

Encl: A/a

Luxembourg Stock Exchange Singapore Exchange BP 165 / L – 2011 11 North Buona Vista Drive, Luxembourg #06-07 Scrip Code: The Metropolis Tower 2, US90403E1038 and Singapore 138589 US90403E2028 ISIN Code: US90403YAA73 and USY9048BAA18

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UltraTech Cement Limited

Registered Office : Ahura Centre, B – Wing, 2[nd] Floor, Mahakali Caves Road, Andheri (East), Mumbai 400 093, India T: +91 22 6691 7800 / 2926 7800 I F: +91 22 6692 8109 I W: www.ultratechcement.com/www.adityabirla.com I CIN : L26940MH2000PLC128420

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India’s Largest Cement Company

EARNINGS: Q2 FY22

Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX

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01 02 03
Key Financial
ESG update
Highlights Performance
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G L O S S A R Y

MNT – Million Metric Tons , LMT – Lakh Metric Tons, MTPA – Million Tons Per Annum ,

MW – Mega Watts, Q1 – April-June, Q2 – July-September , Q3 – October-December , Q4 – January-March, ~~CY – Current Year period~~ ~~, LY – Corresponding period Last Year,~~ ~~FY – Financial Year (April-March)~~

UltraTech joins RE100 – Commits to 100%

renewable ener usa e b 2050 gy g y

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• Target to be on 100 % renewable energy by 2050.

• Contracted renewable energy capacity scaled up 2.5 times in the last two years.

• On track to achieve a green energy mix of 34% by 2024.

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Expanding the boundaries: Carbon footprint at concrete level

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GCCA members committed to drive down the CO 2 footprint and aspire to deliver carbon neutral concrete by 2050

UltraTech under GCCA leadership is actively working towards creating a sectoral roadmap for Concrete.

It will help to achieve carbon neutral concrete by 2050.

Tackling climate change requires actions across the value chain. UltraTech takes the responsibility of working across the built environment value chain and measure carbon footprint at concrete level.

210 kg CO2 per m[3] of concrete*

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*Based on our cement & RMC data for FY21

Key Highlights

Macro indicators

• Q1 GDP growth at 20.1% driven by low base, FY22 GDP forecast remains unchanged at 9.5% by RBI while CPI inflation forecast trimmed to 5.3%

• Resilient rural economy seen in record estimates for kharif production and focus on capital expenditure in government policy in combination with conducive financial conditions, indicate further improvement in coming quarters

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Economy

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• In light of an overall good monsoon and reduced Covid caseload, expecting cement demand to increase in ensuing quarters with strong infrastructure spend, pick-up in urban real estate demand, sustained rural demand

• Global coal crisis

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Industry

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Sectoral update Q2 FY22

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State/Region wise performance	State/Region wise performance	State/Region wise performance	State/Region wise performance	State/Region wise performance	State/Region wise performance	State/Region wise performance
State/Region	Volume Growth	I	R	H	C	Key drivers
North						• Infrastructure segment registered growth • Housing witnessed degrowth on account of heavy rains
Central						• Housing registered growth led by rural housing • Infrastructure segment saw degrowth in all the states
East						• Housing witnessed degrowth due to rains and Covid related restrictions, Odisha was affected by cyclone • Infrastructure sawgrowth in Jharkhand and Chhattisgarh
West						• Maharashtra: Housing and Infrastructure segment saw strong growth led by rural and urban demand as Covid related restrictions were eased out • Gujarat: Demandgrowth in all the segments
South						• Housing saw growth led by rural housing in Andhra Pradesh and Karnataka and urban housing in Tamil Nadu and Kerala • Infrastructure segment registered growth in all the Southern states

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I: Infrastructure, R: Rural, C: Commercial, H: Housing

Key Performance Drivers (India Operations): Q2 FY22

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Grey Domestic Revenue Premium Products RMC UBS Green Power Volume Growth Volume Capacity Outlets Commissioned* 8% YoY 14% YoY 14% YoY 33% YoY 14% YoY 12 MW WHRS 21 MW Solar

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* Commissioned during the quarter ended 30/09/2021, taking total Waste Heat Recovery (WHRS) capacity to 137 MW and Renewable Power capacity to 169 MW for the company.

CSR awards

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National Award for Corporate Social Responsibility for excellence in Covid Supportfrom the India CSR Network

Sidhi Cement Works, Madhya Pradesh wins Fame CSR award 2021 for CSR response towards pandemic

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UltraTech continues its winning spree

Brand Leader across segments

Awarded by The Mobile Marketing Association (MMA) in 10[th] annual MMA Smarties India Awards 2021 for creative use of mobile technologies.

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Financial Performance

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Dalla Cement Works, Uttar Pradesh

Sales: Q2 FY22

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	Grey Cement (India)	RMC	White Cement	Export and Others	Grey Cement (Overseas)	Consolidated
Volumes (Mnt)	19.9	148 No of RMC plants	0.38	0.21	1.21	21.64
Growth (yoy)	8%	43 No of RMC plants	17%	-45%	0%	8%
Revenues (Rs Crs)	9,884	614	505	240	501	11,743
Growth (yoy)	13%	57%	16%	-7%	-1%	14%

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Performance at a glance

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Particulars Revenues EBITDA PBT PAT Q2 FY22 Consolidated (Rs Crs) 11,743 2,855 1,947 1,314 Growth – YoY 14% 1% 8% 0.3% Margin 24% 17% 11% H1 FY22 Consolidated (Rs Crs) 23,441 6,367 4,474 3,016 Growth – YoY 31% 23% 44% 43% Margin 27% 19% 13%

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Key Cost Indicators: Q2 FY22

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Logistics Cost

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Energy Cost
28%
Increased 17% YoY to Rs. 1099/t
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31%
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Increased 7% YoY to Rs. 1219/t

Steep hike in coal / petcoke prices

Diesel price hike – 21% YoY

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Raw Material Cost

13% Increased 3% YoY to Rs. 518/t

Higher input costs

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Logistics Cost Trend

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Logistics cost v/s Diesel Price Index
160
149
132
148
138
100 104
111
108
87
Q1 18 Q2 21 Q1 22 Q2 22
Crude Prices (Index) Diesel Prices (index) Logistics Cost (index)
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YoY cost increase : 7%

• Diesel price higher by ~21%

• Inflationary increase in cost partially mitigated by improved efficiency

QoQ cost increase : 3%

• Diesel price higher by ~7%

• Geographical mix impact

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Raw Material Cost Trend

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Conversion ratio and Flyash Price Index
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112
111 111
103
103
102
Q1 18 Q2 21 Q1 22 Q2 22
Conversion Ratio Index (Clinker to cement) Flyash Price Index
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Cost increase : 3% YoY and 2% QoQ

• Increase in slag, gypsum and HSD prices

• Increase in diesel prices impacted input costs

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Energy Cost Trend

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Energy cost v/s Petcoke Spot Price Index

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240
171
108
117
76 126
Q1 18 Q2 21 Q1 22 Q2 22
Pet coke Price (Index) Energy Cost (Index)
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YoY cost increased: 6% YoY cost increase : 17%

• Reduced power consumption by ~ 4%

• Green Power Mix : 13.7%

• Increased imported fuel prices

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QoQ cost increase : 8%
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• Fuel price impact

• Annual plant maintenance

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Other Cost Trend

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YoY cost increased: 6% YoY cost increase : 25%

• Increase in packing cost ~ 20%

• Normalised fixed cost

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WPI Index

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118 [120]
100 108
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QoQ cost increase : 20%

• Annual plant maintenance

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Q1 18 Q2 21 Q1 22 Q2 22
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Q2 FY22 Financial Performance

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	Rs Crs	Rs Crs	Rs Crs	Rs Crs
Particulars	UTCL Standalone		India Operations
	CY	LY	CY	LY
Revenues(Net of Taxes)	11,272	9,895	11,242 ^	9,861 ^
OperatingIncome	277	124	286	136
Other Income	142	146	142	134
Total Income	11,690	10,165	11,670	10,131
Expenses :
Raw Materials Consumed	1,442	1,189	1,492	1,213
Purchase of Traded Goods	575	455	201	169
Changes in Inventory	(181)	144	(213)	151
Employee Costs	629	522	646	536
Power and Fuel	2,263	1,681	2,410	1,763
Logistics Cost	2,638	2,276	2,648	2,283
Other Expenses	1,582	1,198	1,637	1,232
EBITDA	2,742	2,699	2,849	2,784

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^After elimination of inter company sales

Income Statement: Q2 FY22

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Rs Crs

Consolidated	Consolidated	Consolidated	Ptil	India Operations	India Operations	India Operations
CY	LY	%	arcuars	CY	LY	%
11743	10264	14	Revenues(net of taxes)^	11242	9861	14
2855	2833	1	EBITDA	2849	2784	2
24%	28%	(4)	Margin(%)	25%	28%	(3)
230	358	36	Finance costs	225	348	35
678	677	(0.1)	Depreciation and Amortization	649	646	(1)
1947	1798	8	PBT	1974	1791	10
	79		Exceptional items(Gain)		79
637	566	(13)	Tax expenses	646	569	(14)
(3)	1		Minorityinterest	-	-
1314	1309	0.3	PAT	1328	1300	2
222.4	137.8	61	EPS (Rs.) (basis trailing 12 months and before exceptional items)	219.8	134.2	64

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^After elimination of inter company sales

EBITDA PMT trend

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1449
1394
68
69
1187
1156 1159
154 89
1006
172
121 855
1381
1324
75
1069
1033
984
885
780
Q2FY16 Q2FY17 Q2FY18 Q2FY19 Q2FY20 Q2FY21 Q2FY22
Operating Profit Other Income Total EBITDA
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Value creation for all stakeholders

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17.3%
15.3%
12.0%
10.0%
59,275 60,724 64,482 60,078
FY19 FY20 FY21 Sep 21
Capital Employed (Rs Crs) ROCE
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3.55
0.47
24,983 6,336
Dec 18 Sep 21
Net Debt ( Rs Crs) Net Debt/EBITDA
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16.5%
15.6%
9.0%
12.1%
33,763 39,051 44,180 46,163
FY19 FY20 FY21 Sep 21
Net Worth (Rs Crs) ROE
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Net Debt : EBITDA reduced to 0.47x from the peak of 3.55x after UNCL and Century acquisitions during FY19

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* Excluding Goodwill

Disclaimer

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Statements in this ‘presentation’ describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Company’s operations include global and Indian demand supply conditions, finished goods prices, feedstock availability and prices, cyclical demand and pricing in the Company’s principal markets, changes in governmental regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statement, due to any subsequent development, information or events, or otherwise.

UltraTech Cement Limited

Regd. Office: Ahura Centre, Mahakali Caves Road, Andheri (E), Mumbai – 400 093 [Corporate Identity Number L26940MH2000PLC128420]

www.ultratechcement.com or www.adityabirla.com investorrelations.utcl@adityabirla.com