#1ADITYA BIRLA UltraTech UltraTech Cement Limited Taking concrete actions for a sustainable future Results Q2 FY24 Stock code: BSE: 532538 | NSE: ULTRACEMCO | Reuters: UTCL.NS | Bloomberg: UTCEM IS/UTCEM LX#201 02 03 04 Macro and Sectoral Update Business Update ESG Update Financial Performance ADITYA BIRLA UltraTech#301 Macro and Sectoral Update ADITYA BIRLA UltraTech The Government of Rajasthan conferred 'Shiksha Bhushan' award to Kotputli Cement Works, for contribution to the upliftment of education in Government schools in the Jaipur district, Rajasthan.#4Macro Indicators D GDP growth at 7.8% in Q1 FY24 with substantial contribution from the construction and services sector. IIP grew by 10.3% YoY in August compared to 6% in July, driven by a low base effect and robust growth in the power, mining and manufacturing sectors. Continuing the trend of the past few quarters, cement demand has remained strong in Q2 FY24 backed by robust infrastructure and rural demand. G Due to significant growth in rural housing and urban real estate, the housing segment will likely see consistent demand expansion. ADITYA BIRLA UltraTech st 4#5Sectoral Update: Q2 FY24 ADITYA BIRLA UltraTech Zone Volume Gr ICH H R North Central East West South Key drivers Housing segment registered growth in rural and urban segments, except Uttarakhand, Haryana and Delhi which were affected due to heavy rains. ✓ Commercial segment growth sustained by industrial and commercial activity across regions. Infrastructure segment growth momentum continued on account of Delhi Urban Extension Road, Delhi Metro, Delhi-Meerut Highway, Dwarka Expressway, Bharatpur and Jewar Airport. Infrastructure segment demand witnessed uptick on account of Gorakhpur Link Expressway, Ramvan Gaman Path Yojana, Ganga bridge. ✓ Commercial segment growth sustained by industrial and commercial activity across regions. Housing segment registered growth across regions, except West Bengal and Bihar. ✓ Infrastructure and commercial segment demand adversely impacted due to heavy rains in West Bengal and Bihar. In September, East zone was severely impacted due to heavy rains. ✓ Maharashtra: Infrastructure segment demand supported by ongoing projects: Mumbai Metro, Mumbai Trans Harbour Link, Mumbai Goa Expressway, new phase of Pune metro. Housing and Commercial segment growth across all regions. Gujarat: Housing and Commercial segment grew across the regions. Infrastructure segment registered robust growth as work progressed across major infra projects like Ahmedabad Mumbai High-Speed Railway, Vadodara - Mumbai Expressway and Vadodara Delhi Expressway. ✓ Infrastructure segment demand supported by projects like Kasargode to Kozikode, Ernakulam road project etc. Commercial segment growth supported by demand for office space and warehouses. I: Infrastructure, C: Commercial, H: Housing, R: Rural, IHB: Individual Housing Builder 5#6Pune Bulk Terminal, Maharashtra PACKING PLANT ADITYA BIRLA 02 Business Update UltraTech Ultra Tech's diversity journey has achieved another milestone. Women constitute 80% of the operating team at Pune Bulk Terminal leading from the front and managing core functions viz., Mechanical, Electrical, Instrumentation, Safety and Security. This initiative is a cornerstone in our journey towards greater inclusivity and cultural transformation.#7Highlights : Q2 Domestic sales volume grew 15% yoy with capacity utilization of 75%. Operating EBITDA/Mt of 955 an improvement of 17.6% yoy ADITYA BIRLA Commissioned cement capacity of 2.5 MTPA, taking total grey cement capacity of the Company to 132.45 MTPA in India. Commissioned 30 MW of WHRS capacity and 83 MW of renewable power capacity, taking total WHRS capacity to 262 MW and 429 MW of renewable power. Rural sales at 63% of trade - grew at 15% for the quarter. Premium Eco-friendly sustainable product mix @ 21.7% of trade sales, 3% improvement on yoy basis. Blended cement at 70%, clinker conversion ratio improved to 1.44 up 2% yoy. UltraTech 7#8Powering our Brand UltraTech CEMENT The Engineer's Choice INDIA'S NO.1 CEMENT Success breeds success. We racked 132 awards in last 4 years. EMVES SHARK '4m MARKETING AWARDS X AIAMAL_ DIGIXX Awards 22 1 Award 16 Awards 9 Awards 11 Awards 9 Awards 4 Awards 5 Awards effie AWARDS INDIA 1 Award PRIMETIME 10 Awards Campin /Digital Crest Awards/" 8 Awards IDMA DIGITAL 11 Awards MEDIA STRATEGY 16 Awards WARC Awards 1 Award Golden Vikes 5 Awards MADDES 11 Awards 8 Awards afags MOBEXX max 20 GLOBAL FOXGLOVE SUMMIT AWARDS 2 Awards 1 Award 3 Awards Smarties Global Awards | Emvies | Brand Equity Shark Awards | E4M Prime Time 'Ultra Tech, India's No. 1 Cement-visit ultratechcement.com for claim details. ADITYA BIRLA UltraTech The Engineer's Choice INDIA'S NO.1 CEMENT HAPPY ENGINEER'S DAY #Building The Future ADITYA BIRLA UltraTech ADITYA BRIA UltraTech's creative digital marketing campaigns strike gold for "Most creative banners" and "Best Digital Innovation" at Indian Digital Marketing Awards 2023. We celebrated Engineer's Day and appreciated their efforts and work towards the society. Our Engineers are tirelessly working day and night to enable non-stop progress. They are braving difficult challenges because they know that their effort and resolve will take our Nation to greater heights. 8#9ADITYA BIRLA 03 ESG Update "To actively contribute to the social and economic development of the communities in which we operate. In so doing, in sync with the United Nations Sustainable Development Goals build a better, sustainable way of life for the weaker sections of society and raise the country's human development index". Mrs. Rajashree Birla, Chairperson, The Aditya Birla Centre for Community Initiatives and Rural Development UltraTech#10Pioneering Sustainability # Climate and Energy Circular Economy 뽀 Environment Green Energy ESG Metric CO2 Emission Alternative Raw Material Water Positive Green Power Mix [kg CO2/t cement] and Fuel [MnT] [Times] [% to total power] H1FY24 Performance* 560 +0.5% ^ 18 +23% 4.55x +9% 22% +13% ^ Increase in CO2 emission of 3 kg compared to FY23 is temporary on account of: 5.5 mtpa of new capacities, which are under stabilization 52 MW of WHRS is under stabilisation for these new capacities *Unaudited numbers and green circles indicate % change on yoy basis ADITYA BIRLA UltraTech 10#11Building a greener value chain through circular economy ADITYA BIRLA t UltraTech signed a long-term agreement with Steel Authority of India to procure 2.4 LMT blast furnace slag per annum, reiterating its commitment to driving circularity of materials. S Star Cement, a wholly owned subsidiary, has signed a cooperation agreement with Cemex UAE to boost circular economy in the building materials industry, aiming to recycle concrete waste and reduce carbon emissions. UltraTech 11#12Health Care Reached out to more than 45,000 beneficiaries Health camp at Maihar Cement Works, Madhya Pradesh ADITYA BIRLA UltraTech We are committed to provide better health services to the common man. 8,600 37,000 Beneficiaries benefited during the quarter Children benefited through the immunization programs Organized at UltraTech plant locations: Sewagram, Gujarat, Vikram, Hirmi, Baikunth, Aditya, Sidhi, Maihar, Dalla, Rajashree, Dhar, Nathdwara Rural Mobile Health Camp Supplied safe drinking water to villages, benefitting more than 26,000 beneficiaries. 12#13Social Infrastructure Reached out to more than 31,000 beneficiaries 目の ADITYA BIRLA Construction of Smart Sh मोक्ष धाम शेड का निर्माण Reddipalayam Cement Works, Tamil Nadu Kukurdih Cement Works, Chhatishgarh Andhra Pradesh Cement Works, Andhra Pradesh UltraTech We are continuously developing need-based infrastructure near all our plants, strengthening village infrastructure for addressing the basic needs and aspirations of the community, fostering economic growth, improving living conditions, and enhancing the overall well-being of the villagers. 13#1404 Financial Performance ADITYA BIRLA UltraTech BIO UltraTech joins India's 1st zero-emissions road freight initiative We have partnered with World Economic Forum's (WEF) "Moving India" initiative which was launched by WEF at the G20 Energy Ministers' meeting. As the largest cement manufacturing company in India and as an industry leader, we are one of the partners of Moving India affirming our commitment to this crucial cause. A transition to zero-emission trucks can lead to 2.8-3.8 gigatons of cumulative CO2 savings through 2050, which is equal to or greater than India's entire economy-wide annual GHG emissions today.#15Sales Volume Particulars Grey Cement - Domestic Growth Volume in Million tons Growth Q2 FY24 (YoY) (QoQ) 25.08 15% -12% UltraTech The Engineers Choice Cement Export & Clinker Sales 0.16 59% 58% Birla White White Cement WHITE Sales Volume - India ADITYA BIRLA Grey Cement - Overseas STAK CEMENT * After elimination of inter company sales volume Consolidated Sales Volume* 0.42 11% 2% 25.66 15% -12% 1.18 22% 13% 26.69 16% -11% Trade Sales @ 67%; RMC volume growth @ 31% yoy ADITYA BIRLA UltraTech 15#16Revenue *Crores Growth Growth Particulars Q2 FY24 (YoY) (QoQ) UltraTech COMENT Grey Cement - Domestic 13,412 15% -12% The Engineer's Choice Birla White White Cement 587 9% -1% WHITE Ready Mix Concrete (RMC) 1,161 31% -6% Others 315 -3% 24% ADITYA BIRLA Grey Cement - Overseas STAK CEMENT After elimination of inter company sales 600 30% 8% Total Consolidated Revenues* 15,735 16% -10% ADITYA BIRLA UltraTech 16#17Profitability 2,013 EBITDA (Crores) +35% YoY 3,223 2,718 Q2FY23 Q1FY24 Q2FY24 Profit after tax (* Crores) 756 +70% YoY 1,688 1,281 Q2FY23 Q1FY24 Q2FY24 EBITDA margin improved 200bps yoy ADITYA BIRLA UltraTech 17#18Domestic Grey Cement Realization (*/Mt) Sales Realisation (Grey Cement) 5,342 5,350 5,349 Q2FY23 Q1FY24 Q2FY24 Realisation v/s Total Cost index 101 100 101 100 105 100 100 99 97 93 93 Q2FY23 Q3FY23 Q4FY23 Q1FY24 - Grey Cement Realisation (index) Realisation = Selling Price less GST and Discount Q2FY24 - Total Cost (index) Oct-23 Realization v/s Cost ADITYA BIRLA UltraTech Realization remains flat on QoQ as well as YoY basis, while cost increased on QoQ basis mainly on account of maintenance and employee costs. 18#19Key Cost Indicators (Grey Cement): Q2 FY24 ADITYA BIRLA % to total costs India Operations * / Mt AH Logistics Cost Energy Cost Raw Material Cost 28% 35% 1,219 Decreased 2% YoY and 4% QoQ 1,555 Decreased 10% YoY and 4% QoQ 14% 634 Increased 4% YoY and QoQ UltraTech 19#20Logistics Cost (Grey Cement) Logistics cost (/Mt) 1239 1264 1219 Q2FY23 Q1FY24 Q2FY24 Logistics cost v/s Diesel price index 120 120 120 111 109 107 Q2 21 Q2 23 Q1 24 Q2 24 Diesel Prices (index) Logistics Cost (index) India Operations YoY costs decrease: 2% Benefit on account of lead optimization and improved operating efficiency. Lead reduced to 403 km in Q2 FY24 from 428 km in Q2 FY23. QoQ costs decrease: 4% Benefit of lean season rail freights in August and September. Lead reduced to 403 km in Q2 FY24 from 410 km in Q1 FY24. ADITYA BIRLA UltraTech 20#21Raw Material Cost (Grey Cement) Raw Material cost (*/Mt) Q2 21 634 610 610 Q2FY23 Q1FY24 Q2FY24 Conversion Ratio and Fly ash Price index 110 114 113 105 105 103 Q2 23 Q1 24 Q2 24 Conversion Ratio (index) - Fly ash Price (index) India Operations YoY cost increase: 4% Increase in cost of raw materials: fly ash, slag etc. ➤Improvement in clinker conversion ratio to 1.44 vs 1.41 in Q2 FY23. QoQ cost increase: 4% Increase in cost of raw materials: gypsum, slag, etc. ADITYA BIRLA UltraTech 21 21#22Energy Cost (Grey Cement) Energy cost (/Mt) Q2 21 India Operations 1731 1621 1555 Q2FY23 Q1FY24 Q2FY24 Fuel cost v/s Blended fuel price index Imported Coal cost (index) 301 307 301 216 204 190 Q2 23 Fuel cost (index) Q1 24 Q2 24 YoY cost decrease: 10% Blended fuel consumption (CV: 7500) at ~USD 162/t compared to USD 200/t in Q2 FY23. Pet coke consumption at 39% vs 40% in Q2 FY23. QoQ cost decrease: 4% ➤ Blended fuel consumption (CV: 7500) of ~USD 162/t compared to USD 178/t in Q1 FY24. ➤ Pet coke consumption of 7 LMT @ 39% mix of total fuel. ADITYA BIRLA UltraTech 22#23Other Costs Other cost (/Mt) 859 683 862 Q2FY23 Q1FY24 Q2FY24 WPI index 126 123 125 Q2 21 Q2 23 Q1 24 Q2 24 India Operations YoY cost: Flat ➤ Operating leverage benefits in the quarter offset by increase in maintenance cost and manpower cost. QoQ cost increase: 26% ➤ Negative operating leverage due to lower volume in monsoon period. Higher plant maintenance and increase in employee costs during the current quarter. ADITYA BIRLA UltraTech 23#24Operational Performance ADITYA BIRLA Crores UltraTech Consolidated Particulars Q2 FY24 Q2 FY23 15,735 13,596 Net Sales ^ Λ India Operations Q2 FY24 15,195 Q2 FY23 13,176 277 297 Operating Income 167 146 Other Income 16,179 14,039 Total Income 281 271 158 119 15,634 13,565 Expenses: 2,348 2,004 Raw Materials Consumed 2,187 1,984 425 325 Purchase of Traded Goods 407 259 (279) (312) Changes in Inventory (240) (288) 812 691 Employee Costs 778 660 4,385 4,296 Power and Fuel 4,207 4,103 3,512 3,044 Logistics Cost 3,478 3,013 2,258 1,977 Other Expenses 2,211 1,910 13,461 12,069 Total Expenses 13,026 11,640 2,718 2,013 EBITDA 2,608 1,926 956 808 Operating EBITDA per ton 955 812 ^After elimination of inter company sales 24 24#25Financial Statement Consolidated India Operations Crores Particulars Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 15,735 13,596 Net Sales ^ 15,195 13,176 2,718 2,013 EBITDA 2,608 1,926 234 200 Finance Costs 211 187 798 708 Depreciation and Amortization 768 679 409 344 Tax expenses* 415 333 (1) 3 Minority interest 1,281 756 Normalized PAT* 1,214 727 198 173 EPS (*) (basis trailing 12 months) 193 169 * The Company has opted for new tax regime from the financial year 2023-24 ^After elimination of inter company sales ADITYA BIRLA UltraTech 25#26Operational Performance: Overseas Amount in Mn AED Amount in Mn SLR Middle East Lanka Particulars Q2FY24 Q2FY23 Q2FY24 Q2FY23 215 172 Net Sales 4,531 3,973 0.1 11 Operating Income 21 85 0.0 0.2 Other Income 89 365 215 183 Total Income 4,641 4,423 59 24 Purchase/Consumption of Raw Material 4,735 3,459 -16 -7 Changes in Inventory -429 -388 14 13 Employee Costs 83 86 79 89 Power and Fuel 16 10 14 14 Logistics Cost 65 27 17 36 Other Expenses 311 222 168 169 Total Expenses 4,780 3,415 46 15 EBITDA -140 1008 26 -10 PAT -200 675 ADITYA BIRLA UltraTech 26#27Financial Position Consolidated ADITYA BIRLA India Operations Crores Particulars 30.09.2023 31.03.2023 30.09.2023 31.03.2023 67,846 64,987 Net Fixed Assets^ 64,994 62,121 1,059 1,017 Investment in Subs/Associates/JVS 3,228 3,187 (1,500) (2,669) Net Working Capital (3,048) (3,987) 67,404 63,335 Total Assets 65,173 61,321 56,204 54,380 Shareholders Fund (Incl. Minority Interest) 55,066 53,369 10,319 9,901 Gross Debt 9,156 8,750 5,402 7,199 Less: Treasury Surplus 5,383 7,093 4,917 2,702 Net Debt 3,773 1,658 6,283 6,254 Deferred Tax Liability 6,335 6,295 67,404 63,335 Total Equity and Liabilities 65,173 61,321 ^Includes goodwill and asset held for sale UltraTech 27#28Cash Flow Statement: H1 FY24 Crores Particulars India operations Consolidated EBITDA 5,817 5,941 Less Interest & lease payments (389) (442) Less : Tax paid (706) (711) Less: Increase in working capital (1313) (1454) Operating Cash Flow 3,410 3,334 Less: Capex spend (4,328) (4,341) Free Cash Flow to Firm (918) (1,008) ADITYA BIRLA UltraTech 28#29Glossary ADITYA BIRLA UltraTech MNT Million Metric Tons LMT - Lakh Metric Tons MTPA Million Tons Per Annum - LTPA Lacs 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) CPI - Consumer Price Index ➤ WPI - Wholesale Price Index IHB - Individual Housing Builder ➤ PMAY Pradhan Mantri Awas Yojana PMGSY - Pradhan Mantri Gram Sadak Yojana ➤ CSR - Corporate Social Responsibility ESG - Environmental, Social, and Governance WHRS - Waste Heat Recovery System Green power Mix includes WHRS and captive renewable power Realization = Selling Price less GST and Discounts ➤ Blended Fuel includes imported coal and petcoke Blended Fuel cost/t = CIF price at India port equivalent to 7500 CV Receipt basis - Without taking moisture impact Net basis - After considering moisture impact EBITDA = Profit Before Tax plus Finance Cost and Depreciation ➤ Operating EBITDA = EBITDA less Other Income ➤ Net Debt = Gross Debt less Liquid Investments 29#30Disclaimer 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 30