#1India's Largest Cement Company EARNINGS: Q3 FY22 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL. NS | Bloomberg: UTCEM IS/UTCEM LX ADITYA BIRLA UltraTech#2TO 01 02 03 ESG update Key Highlights Financial Performance GLOSSARY 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) ADITYA BIRLA UltraTech#3UltraTech among top 10 Construction Material companies globally in DJSI ADITYA BIRLA UltraTech Key areas that contributed to significant improvement: Adoption of new policies o Anti-corruption and Bribery o Anti-discrimination policy • Process and performance improvement against sustainable supply chain KPIs UltraTech's score in S&P's Dow Jones Sustainability Index (DJSI) has improved 11 points to 79 in FY21 and ranked 7th globally by DJSI in the construction material sector. UltraTech scores higher than industry average: Environment: 126% • Social: 108% Governance: 71% • Adoption of TCFD framework and SBTI target validation • Human rights due diligence . Improved disclosure on people development metrics 3#4SUSTAINABILITY PURPOSE PARTNERSHIP | PLANET | PEOPLE UltraTech wins 'Leaders Award- Mega Large Business, Process Sector' ADITYA BIRLA at Frost & Sullivan & TERI Sustainability 4.0 Awards 2021. FROST & SULLIVAN teri Sustainability 4.0 Awards Highest Award in the category Leaders Award Mega Large Business, Process Sector 1202 Presented to UltraTech Cement UltraTech This award recognizes the Sustainability Excellence on People, Purpose, Partnership, and Planet pillars, along with Sustainability Analytics and the Renewable Energy Consumption initiatives of Organizations in India.#5UltraTech helps reduce water borne diseases in local communities ADITYA BIRLA प्रेशर फिल्टर 075 MLD UltraTech BACKLAS Dalla Cement Works has enabled safe drinking water for over 20,000 people in a village in the state of Uttar Pradesh, by cleaning and disinfecting the community water tanks as well as repairing the filtration system. 5#6Purvanchal Expressway project Purvanchal Expressway is 340.8 kms long 6 lane wide access expressway in the State of Uttar Pradesh, India. It is a critical infrastructure that reduces impact of congestion and travel time on environment. The project will benefit the society by reduction of ~19 million tons of CO2 emissions over its life, based on estimated fuel savings from the project. लखनऊ Lucknow 1. हलियापुर Haliyapur 101 सुल्तानपुर Sultanpur 731 गति सीमा का पालन करें, सुरक्षित घर पहुँचे 76% of the expressway is made using UltraTech Cement Key Highlights#7Macro indicators میرا % Economy Update Industry Update ADITYA BIRLA ☐ Composite PMI rose to 56.4 in December vs 53.3 in September ☐ December points towards strong improvement in consumption led by overall positive economic sentiment ☐ NSO estimates FY22 GDP growth at 9.2%, helped by a robust farm sector and strengthening recovery in manufacturing ויו ☐ Demand is likely to be resilient. Rural and infrastructure growth has been the key driver during the last year; Consumption for Urban Housing has started improving. ☐ Union Budget and elections in key states could also drive infrastructure-driven demand. Input cost inflation due to rise in cost of fuel, raw material and transportation. However, costs seem to have likely peaked. UltraTech 7#8Sectoral update Q3 FY22 State/Region wise performance State/Region Volume Growth R H C North Central East West South I: Infrastructure, R: Rural, C: Commercial, H: Housing Key drivers Urban housing demand slowed due to unseasonal rains, festivities and construction ban in NCR Rural housing registered marginal growth. Infrastructure segment registered relatively higher growth Rural housing registered growth except Kashi; Infrastructure segment de-growth due to near completion of major projects. High Sand prices and labour unavailability impacted overall construction demand Rural and Infrastructure segment demand was impacted by unseasonal rains and festivities Maharashtra: Mumbai maintained housing growth. Rural housing saw growth in all regions. Gujarat: Overall housing demand impacted by labour unavailability and Gram Panchayat elections Housing de-growth in Karnataka and Tamil Nadu due to cyclonic rains; Growth in Andhra Pradesh, Telangana & Kerala Infrastructure segment de-growth except in Andhra Pradesh ADITYA BIRLA UltraTech 8#9UltraTech Key Performance Drivers (India Operations): Q3 FY22 ADITYA BIRLA Blended Realization Premium Product Green Power Alternative Fuel UBS Outlets Mix Mix Hv 同 Rs 5527/ton 15.5% of trade 7% YoY 1.1% YoY 15.6% 2.8% YoY 5.2% 2.4% YoY 2759 Outlets 15% YoY 9#10Projects commissioned during the quarter ✓ ADITYA BIRLA UltraTech Patliputra Cement Works, Bihar Commissioned additional cement capacity of 0.6 mtpa at the grinding unit Dankuni Cement Works, West Bengal Commissioned additional cement capacity of 0.6 mtpa at the grinding unit Kalamboli Bulk Terminal, Maharashtra Commenced operations at bulk terminal with a handling capacity of 1.2 mtpa cement Bicharpur Coal Mine, Madhya Pradesh Commenced operations at coal mine having extractable reserves of ~29 MMT Bara Cement Works, Uttar Pradesh* Commencement of Line Il having capacity of 2 mtpa Green Power Commissioned Solar power capacity of 53 MW and WHRS capacity of 19 MW Grey Cement capacity increased to 114.55 mtpa in January 2022 * Line II of Bara Grinding Unit commissioned during the current month i.e. January 2022 10#11White Cement Expansion Plan ADITYA BIRLA • • • UltraTech Modernization and Expansion of capacity at Kharia, Rajasthan Nearly doubling capacity from 6.5 LTPA to 12.53 LTPA Capital outlay of Rs 965 Crs Capacity will be commissioned in phased manner Birla White THE WHITEST WHITE CEMENT R 11#12The first Cement brand from India to win Global awards for media innovation ADITYA BIRLA Global Win For UltraTech Cross Mobile Integration #BaatGharKi Campaign SMARTIES X UltraTech The Engineer's Choice बात घर ant Awarded by The Mobile Marketing Association (MMA) IFE 11 UltraTech ADITYA BIRLA UltraTech wins 'Brand of the Year' in Smarties Asia Pacific UltraTech wins big at MMA Smarties Asia Pacific 2021 Recognised as the 'Brand of the Year' LibraTech and conferred three awards for #BaatGharki campaign GOLD TROPHY CROSS MOBILE INTEGRATION GOLD TROPHY APAC BEST USE OF BRANDED CONTENT SILVER TROPHY CROSS CHANNEL INTEGRATION 12#13Financial Performance Sidhi Cement Works, Madhya Pradesh#14Sales: Q3 FY22 ADITYA BIRLA UltraTech Grey Cement (India) RMC White Cement Export and Others Grey Cement (Overseas) Consolidated^ Volumes (Mnt) 21.43 151 0.41 0.16 1.24 23.13 No of RMC plants Growth (YoY) -3% 42 5% -45% -9% -3% No of RMC plants Revenues (Rs Crs) 10,629 668 543 316 593 12,710 Growth (YoY) 3% 17% 1% 5% ^After elimination of inter company sales UltraTech CEMENT The Engineer's Choice UltraTech CONCRETE Birla White WHITE Portland Cement 13% 5% ADITYA BIRLA STAR CEMENT 14#15Performance at a glance Particulars Q3 FY22 Revenues EBITDA Normalised PAT Consolidated (Rs Crs) 12,710 2,490 1,173* Growth-YoY 5% -26% -26% Margin 20% 9% 9M FY22 Consolidated (Rs Crs) * 36,151 8,857 4,189* Growth-YoY 20% 4% 14% Margin 24% 12% * Excluding reversal of provision of Tax of Rs 535 Crs pursuant to completion of prior year tax assessments ADITYA BIRLA UltraTech 15#16Key Cost Indicators: Q3 FY22 Logistic Cost 30% Energy Cost Raw Material Cost ₹ $ 32% 江店 13% Increased 4% YoY to Rs. 1229/t Increased 39% YoY to Rs. 1327/t Diesel prices higher by ~24% Increase in prices of fuel Above numbers are for Grey Cement - India ADITYA BIRLA Increased 7% YoY to Rs. 538/t Increase in prices of input material and diesel UltraTech 16#17Logistics Cost Trend Logistics cost (Rs./mt) Q1 18 1178 51 Q3FY21 Logistics cost v/s Diesel Price Index -Crude Prices (Index) Diesel Prices (index) Above numbers are for Grey Cement - India 1229 Q3FY22 107 160 160 129 160 148 112 111 89 Q3 21 YoY cost increase : 4% ADITYA BIRLA ⚫ Diesel price higher by ~24% Inflationary increase in cost partially mitigated by improved efficiency • Favourable rail - road mix QoQ cost increase : 1% ⚫ Diesel prices remained stable Geographical mix impact • Q2 22 Q3 22 Logistics Cost (index) UltraTech 17#18Raw Material Cost Trend Raw Material cost (Rs./mt) Q1 18 501 Q3FY21 37 538 Q3FY22 Conversion ratio and Flyash Price Index 113 111 106 103 102 100 Q3 21 Q2 22Q3 22 Conversion Ratio Index (Clinker to cement) Flyash Price Index Above numbers are for Grey Cement - India YoY cost increase : 7% . • Increase in flyash, gypsum prices • Improved Clinker to Cement conversion ratio by ~1% YoY cost increase : 4% Increase in flyash, gypsum and HSD prices ADITYA BIRLA UltraTech 18#19Energy Cost Trend Q1 18 Energy cost (Rs./mt) 952 Q3FY21 375 1327 Q3FY22 Energy cost v/s Petcoke Price Index 109 206 168 152 126 92 Q3 21 Q2 22Q3 22 Pet coke Price (Index) Energy Cost (Index) Above numbers are for Grey Cement - India . YoY cost increase : 39% . Average fuel consumption cost at USD 151/t vs USD 67/t in Q3 LY • Reduced power consumption by ~2% • Green Power Mix: 15.6% QoQ cost increase : 21% Average fuel consumption cost at USD 151/t vs USD 120/t in Q2 ADITYA BIRLA UltraTech 19#20Other Cost Trend 100 Q1 18 Other cost (Rs./mt) 639 Q3FY21 130 WPI Index 769 Q3FY22 110 120 125 Q3 21 Q2 22Q3 22 YoY cost increase : 20% 2 Increase in packing cost ~ 24% Normalised fixed cost QoQ cost decrease : 4% fixed cost absorption due to higher QoQ volume ADITYA BIRLA UltraTech 20#21Q3 FY22 Financial Performance ADITYA BIRLA UltraTech Rs Crs Consolidated India Operations Particulars CY LY CY LY 12,710 12,144 Revenues (Net of Taxes) ^ 12,156 11,698 275 118 Operating Income 288 127 71 260 Other Income 70 254 13,055 12,522 Total Income 12,514 12,079 Expenses: 1,715 1,669 Raw Materials Consumed 1,626 1,554 331 250 Purchase of Traded Goods 251 205 14 (125) Changes in Inventory (22) (134) 643 610 Employee Costs 614 582 3,221 2,402 Power and Fuel 3,075 2,298 2,905 2,848 Logistics Cost 2,872 2,831 1,736 1,505 Other Expenses 1,692 1,459 2,490 3,362 EBITDA 2,406 3,282 ^After elimination of inter company sales 21#22Income Statement: Q3 FY22 Consolidated * India Operations Rs Crs Particulars CY LY % CY LY % 12,710 12,144 5 Revenues (net of taxes)^ 12,156 11,698 4 2,490 3,362 (26) EBITDA 2,406 3,282 (27) 182 356 49 Finance costs 178 346 49 674 674 Depreciation and Amortization 645 637 (1) 459 747 39 Tax expenses 460 753 43 2.4 0.2 Minority interest * 1,173 1,584 (26) Normalised PAT 1,123 * 1,546 (27) 1,708 1,584 8 Reported PAT 1,658 1,546 7 208.2 168.0 24 EPS (Rs.) (basis trailing 12 months and before exceptional items) 205.2 165.2 24 ^After elimination of inter company sales * Excluding reversal of provision of Tax of Rs 535 Crs pursuant to completion of prior year tax assessments ADITYA BIRLA UltraTech 22#23Financial Position Consolidated Mar - 21 Particulars Dec - 21 India Operations Mar - 21 Dec - 21 64,482 58,325 Capital Employed (Rs Crs) 64,432 6,717 6,147 Net Debt (Rs Crs) 58,327 6,353 5,786 15.3% 16.1% ROCE (basis trailing 12 months) 15.6% 16.0% 15.6% 15.1% ROE (basis trailing 12 months) 15.1% 14.7% 0.55 0.49 Net Debt: EBITDA Capital Employed and Ratios are calculated excluding goodwill 0.53 0.47 ADITYA BIRLA UltraTech 23#24Recognition of UltraTech's sustainability progress ADITYA BIRLA Five-star rating for Sustainable Mine Management UltraTech's 15 limestone mines were awarded 30 five-star rating awards for the last three years (2017-18, 2018-19 and 2019-20) by the Ministry of Mines and Indian Bureau of Mines. E 4 UltraTech UltraTech wins FICCI Indian Circular Economy Award 2021 This award appreciates our efforts to accelerate our business towards a circular economy model and identifies UltraTech as most innovative and impactful in its practices. 24#25Disclaimer ADITYA BIRLA 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 [email protected] UltraTech