UltraTech Cement Ltd — Investor Presentation 2021

Jul 22, 2021

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22[nd] July, 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 ended 3 ~~0~~ [th] June, 2021.

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

The same is for your information please.

Yours very truly,

For UltraTech Cement Limited

Sanjeeb Kumar Chatterjee Company Secretary

Encl: A/a

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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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EARNINGS: Q1 FY22

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ESG update

Key Highlights

Financial Performance

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ESG update

UltraTech reaffirms commitment to help rejuvenate biodiversity:

• Biodiversity assessment undertaken at 8 of our Integrated units

• Committed to undertake biodiversity assessment and biodiversity management plans for all Integrated Units by 2024

• Our initiatives have helped flora and fauna thrive at our Units

UltraTech ranks amongst the best in the Cement Industry

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In its “ESG Way” series, An Equity Research firm says:

Scores E: 15.5 / 33 UltraTech scored on top S: 27.9 / 33 within the sector in 1[st] quartile G: 29.3 / 34 Overall – 72.7

In its “ESG Gauge” compendium, An Indian Credit Rating agency says:

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Scores
E: 50 / 100
UltraTech amongst the
S: 61 / 100 top quartile in the
sector
G: 72 / 100
Overall – 61
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Carbon Emission reduction roadmap

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Scope 1 Target
2032 6%
Carbon
Emission 27% Achieved
reduction
Specific Net Direct GHG emissions
2016-17 2017-18 2018-19 2019-20 2020-21 … 2031-32
6%
27%
2016-17 2017-18 2018-19 2019-20 2020-21 … 2031-32
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Key Steps leading to reduction in emissions Increase in alternative fuel and clean energy Adoption of emerging technologies Increase in share of blended cement Energy productivity (EP100) GCCA Climate Ambition 2050 Adoption of TCFD and Internal carbon price

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Adoption of TCFD framework

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Detailed study on four step recommendations

Climate related risks & opportunities assessment (transitional & physical risks)

Scenario analysis conducted as per TCFD recommendation

Scientific understanding of climate change & risks it entails

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Driving circular economy

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UltraTech continues to be >2 times plastic positive

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20 million tons of
3.5 lacs tons of
alternative raw
alternative fuel used
materials used
7
During FY21
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Driving circular economy….contd.

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• 25% heat consumption from waste materials at Reddipalayam, Tamil Nadu

• Alternative fuels initiative has helped in reduction of landfills, air and soil pollution

• 2,000 tons of CO2 emissions reduced

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CSR Update

Empowering women

Andhra Pradesh Cement Works catalysed self help group Spoorti Jute Works to empower rural women through creation of sustainable livelihood. Trained in stitching and supplying uniforms for the Unit, the SHG has now become the proud supplier of uniforms for several local industrial units

COVID-19 support program

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Reaching out to local communities

• 628 oxygen cylinders

• 9 COVID treatment centres with 296 beds

• 5 oxygen plants at Unit locations - Dhar, Neemuch, Nathdwara, Dalla, Maihar

• 19,575 COVID fight kits to frontline workers

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• 247 awareness campaigns

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Protecting employees & stakeholders

• COVID related support for finding medical facility, insurance, immediate support to the family

• 73% employee force vaccinated till 15[th] July 2021

• WFH for all offices since March 2020

• Company-wide online resource centre

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CSR activities

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More than 22,000 sachets containing carom seeds and camphor powder (natural disinfectants) were distributed across 15 locations

Nursery development at biodiversity farm and model agriculture farm at Vikram Cement

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CSR activities

Generator support to Community Health Centre , Asop , Rajasthan

Disinfectant spray at Hirapur, Maharashtra

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Baikunth, Chhattisgarh

Water conservation

• Water security for farmers

• ▪ Rejuvenate local biodiversity

• ▪ Outreach: 4500 families

Tadipatri , Andhra Pradesh

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Awarpur Cement Works, Maharashtra
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Key Highlights Q1 FY22

Macro indicators

• Real GDP growth estimate (RBI) at ~9.5% for FY22

• Composite PMI for June 21 at 43.1

• CPI inflation continued above 6% and it is expected to stay at these levels

• Gradual opening up of the economy and increase in vaccination will lead to normalization

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Economy

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• The second wave of COVID-19 impacted domestic cement consumption in rural/urban areas alike

• With gradual ease of lockdowns since June 21, the construction activities are treading towards normalcy

• Rural Housing is seeing a gradual recovery supported by the higher MSP for kharif crop, increased procurement by Government agencies and improved food grain production in rabi harvest

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Industry

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Sectoral Update Q1 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						▪ IHB witnessed increase in demand led by rural housing ▪ Urban housing also contributed to growth
Central						▪ IHB demand continued led by rural housing
East						▪ Rural, Urban housing and infrastructure segment grew in all the States
West						▪ Maharashtra:Demand across housing and infrastructure segment ▪ Gujarat: IHB demand led by strong urban and rural demand
South						▪ Housing saw growth in Andhra Pradesh and Telangana ▪ Infrastructure segment registered growth

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I: Infrastructure, R: Rural, C: Commercial, H: Housing IHB: Individual Home Builder

Key Performance Drivers: Q1 FY22

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Premium Capacity Volume Revenue Blended Products Share Utilization Growth Growth Sales 26% YoY 47% YoY 56% YoY 3% QoQ 2% YoY

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India Operations

Sales : Q1 FY22

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	Grey Cement	RMC	White Cement	Export and Others	India Operations	**Overseas **	Consolidated*
Volumes (Mnt)	20.0	136 No of RMC plants	0.28	0.25	20.53	1.16	21.53
Growth (yoy)	48%	32 No of RMC plants	49%	25%	47%	25%	47%
Revenues (Rs Crs)	10,185	509	362	243	11,299	445	11,698
Growth (yoy)	51%	291%	47%	63%	56%	13%	54%

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Cementing Growth in its DNA

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*After elimination of inter company sales

Performance at a glance Q1FY22

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Consolidated Rs. 11,698 Cr Rs. 3,512 Cr Rs. 2,526 Cr Rs. 1,703 Cr Particulars Revenues EBITDA PBT PAT Growth - YoY 54% 49% 93% 114% Margin% 30.0% 21.6% 14.6% Earnings per share[] (Rs.) _219* (Trailing 12 months)_

EPS Growth : 93%

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* before exceptional items

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Pimpalgaon-Nashik-Gonde Road
Estimated reduction of 6 Million tons of CO2 emissions over its lifetime.
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Signature Delhi bridge
Estimated reduction of 10 Million tons of CO2 emissions over its life.
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UltraTech: Partnering the National Infrastructure Development

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200 Mn views for #BaatGharKi videos

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BGK videos are “How-to” videos on various aspects of home building in simple consumer speak in 6 languages Total 69 original videos and 300 translated videos for “BaatGharKi” (BGK)

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Kannada

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Malayalam

Hindi

English

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Tamil

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Telugu

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Awards & Accolades

Top honors at E4M Primetime Awards, including coveted title of “Advertiser of the year”

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• UltraTech won the excellence award for “Advertiser of the year” + 4 other awards across categories at the prestigious Primetime awards

• Joined the list of Elite and Prestigious league of advertisers by setting industry best standards

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UltraTech Smart Factory: Goal-oriented planning & implementation of initiatives well underway

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Central Support Organization Levers:

• AR

• Remote Monitoring

• • Analytics

Business Impact:

• Optimize Spend/ Inventory

• Maintenance support

• Guidance through benchmarking

New KPI visibility/estimation Levers:

• IIOT

• Process modelling

Business Impact:

• Mines fuel & productivity tracking

• • Improved cement process stability

Energy & Sustainability Levers:

• Analytics & AI

Business Impact:

• Energy Optimization

• • Improved heat recovery • Alternative fuel increase

Quality Analytics Levers:

• Analytics & AI

• Process modelling

Business Impact:

• Improved process optimization

• Quality consistency

Safety

Levers:

• Robotics

• AI Vision

Business Impact:

• Alerts for asset or human safety

• Reduce or better track human intervention

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Maintenance effectiveness Levers:

• IIOT

• AI / ML modelling

• Drones

Business Impact:

• OEE improvement

• MTBF/MTTR improvement

Enhanced Operator Levers:

• AR remote support

• Mobile Apps

• Digital Logbooks/checklist

• • RPA

Business Impact:

• Frequent Safety audits of process/ assets

• Operator empowerment

• Increased efficiency

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RPA – Robotic Automation, AI – Artificial Intelligence, IIOT – Industrial internet of things, AR – Augmented Realty, MTBF – Mean time before failure, MTTR – Mean time to repair

• The digital solution implemented in the manufacturing process at one of the plants provides multiple benefits:

• Higher output

• Lower fuel consumption in kilns and furnaces

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• Better and greater consistency of quality

• Reduced grinding costs due to energy savings

Financial Performance Q1 FY22

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Rajashree Cement Works, Karnataka
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Key Cost Indicators: Q1 FY22

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LOGISTICS COST
33%
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ENERGY COST
28%
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Increased 6% YoY to Rs. 1187/t

Increased 12% YoY to Rs. 1019/t

• Hike in coal / petcoke price

• Diesel price hike – 28% YoY

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RAW MATERIAL COST
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14% Increased 7% YoY to Rs. 510/t

• Diesel price hike impact on input costs

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Logistics Cost Trend

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

• Diesel price higher by ~28%

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Logistics cost v/s Diesel Price Index)

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141 149
117 123 138
100
102 107 108
59
Q1 18 Q1 21 Q4 21 Q1 22
Crude Prices (Index) Diesel Prices (index) Logistics Cost (index)
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QoQ cost increase: 1%

• Diesel price higher by ~6%

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Energy Cost Trend

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Energy cost (Rs./mt)
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YoY cost increase: 12%

• Green power share in power mix raised to 15.5% (LY: 13.9%)

• Power consumption reduced by 3%

• Increase in Petcoke / Coal prices

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Energy cost v/s Pet coke Price Index

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171
133
117
112
Q1 18 Q1 21 Q4 21 Q1 22
Pet coke Price (Index) Energy Cost (Index)
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QoQ cost increase: 4%

• Increase in Petcoke / Coal prices

• Increase in power consumption due to lower capacity utilization

Effective fuel source management dampened the impact of fuel cost increase

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Raw Material Cost Trend

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Conversion ratio and Fly ash Prices (Index) Trends

YoY: 7% increase, QoQ : 2% decrease

• Increase in inbound transportation cost due to diesel price hike

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111
109
103 103
102
101
Q1 18 Q1 21 Q4 21 Q1 22
Conversion Ratio Index (Clinker to cement) Flyash Price Index
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Other Cost Trend

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WPI (Index) Trend
118
100 113
105
Q1 18 Q1 21 Q4 21 Q1 22
Other cost (Rs./mt)
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YoY cost increase: 16%

• Fixed cost normalization

• Increase in packing cost

QoQ cost increase: 6%

• Increase in packing cost

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Q1 FY22 Financial Performance

Rs Crs

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Particulars	UTCL Standalone	UTCL Standalone	India Operations	India Operations
	CY	LY	CY	LY
Revenues (Net of Taxes)	11,327	7,290	11,299 ^	7,262 ^
Operating Income	150	84	151	84
Other Income	216	296	204	276
Total Income	11,693	7,670	11,654	7,621
Expenses :
Raw Materials Consumed	1,382	739	1,374	749
Purchase of Traded Goods	523	328	244	121
Changes in Inventory	(290)	224	(301)	238
Employee Costs	544	518	558	532
Power and Fuel	2,193	1,235	2,306	1,282
Logistics Cost	2,623	1,590	2,631	1,594
Other Expenses	1,330	785	1,373	803
EBITDA	3,388	2,251	3,468	2,302

EBITDA : Rs 1689/mt

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^After elimination of inter company clinker sales

Income Statement : Q1 FY22

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Rs Crs

Consolidated	Consolidated	Consolidated	Particulars	India Operations	India Operations	India Operations
CY	LY	%		CY	LY	%
11698	7600	54	Revenues (net of taxes)^	11299	7262	56
3512	2357	49	EBITDA	3468	2302	51
30%	31%	(1)	Margin (%)	31%	32%	(1)
326	394	17	Finance costs	320	383	16
660	651	(1)	Depreciation and Amortization	633	619	(2)
2526	1311	93	PBT	2516	1300	94
	157		Exceptional Item		157
827	360		Tax expenses	834	366
(3)	(1)		Minority interest	-	-
1703	794	114	PAT	1682	776	117
219.4	113.6	93	EPS (Rs.) (basis trailing 12 months and before exceptional item)	216.0	113.3	91

PAT up 114%

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^After elimination of inter company clinker sales

EBITDA PMT Trend

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1689 1651 99 1478 198 1449 1438 1460 1590 65 70 88 1387 108 1453 1262 1251 31 1159 1122 103 82 1090 1036 1051 89 131 70 926 98 98 1379 1372 1330 1356 57 1169 1413 1159 939 990 953 869 1069 1020 FY16 FY17 FY18 FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Q1FY22 Operating Profit Other Income Total EBITDA

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1262 1251
1159
1122 103 82
1090
1036 1051 89
131 70
926
98
98
57
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Continuously improving margins

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Organic Expansion: Fueling growth

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Cement capacity (mtpa)
2.8 136.25
9.4
0.6
3.5
3.2
116.75
UTCL Integrated Unit
UTCL Grinding Unit
FY21 Q2 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23
UTCL BulkTerminals
Jetty
White Cement & PuttyUnits
Expansion
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Expansion of 19.5 mtpa cement capacity is on track

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*India : 111.35 mtpa, Overseas : 5.4 mtpa

Value creation for all stakeholders

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16.6%
16,981
15.3%
14,651
1.72 12,132
1.60 12.0%
64,959
9,436
10.0% 64,482
1.22
6,717
5,984
0.84 60,724
59,275
0.55
0.44
Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 FY19 FY20 FY21 Q1FY22

Capital Employed (Rs Crs) ROCE
Net Debt (Rs Crs) Net Debt/ EBITDA
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We deliver what we commit

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* Excluding Goodwill

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Disclaimer

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