#1Dalmia Bharat Limited INVESTOR PRESENTATION September 2021#2ajed anus and a ameub Disclaimer Certain statements in this presentation describing the Company's objectives, projections, estimates and expectations may be 'forward looking statements' within the meaning of applicable laws and regulations. Although our expectations are based on reasonable assumptions, these forward-looking statements may be influenced by numerous risks and uncertainties that could cause actual outcomes and results to be materially different from those expressed or implied. The Company takes no responsibility for any consequence of decisions made based on such statements and holds no obligation to update these in the future. The past financial figures have been regrouped or reclassified as per the current grouping, wherever necessary. 2#3PAGE SECTION NO. 01. Dalmia at a Glance 02. Company Overview 03. Shareholder Value and Capital Allocation 04. ESG 05. Appendix 4 10 10 27 36 TABLE OF CONTENTS 56 3#4SECTION 01 DALMIA AT A GLANCE 4#5Biodiversity park at our Ariyalur plant People. Planet. Performance At Dalmia Bharat, we believe that the interplay of our commitment to people, planet and profit makes us profitable for the moment and sustainable for the future. Our Vision To unleash the potential of everyone we touch Our Mission To be in the top two in all our businesses on the strength of our people and the speed of our innovation. Our Values ☐ ☐ Integrity Humility Trust & Respect Commitment Dalmia Bharat Limited 5#6Dalmia by the Numbers Fundamentals 30.75 MnT Cement Capacity 20.7 MnT Sales Volume 18.7 MnT Clinker Capacity 209 MW Captive Power Capacity 13 Plants Financials *10,522 Cr T Net Sales ₹ 2,783 Cr EBITDA States Served 26.4% EBITDA Margin 盟國 21 32,000 山 5,807 Dealers and *1,243 Cr Employees Sub-dealers Profit After Tax * 4,872 NSR / Ton * 1,333 EBITDA / Ton *42,602 Cr* Market Cap 11.8% PAT Margin 111 T Dalmia Bharat Limited Data as of Mar-31, 2021 *As of September 6, 2021 6#7Key Milestones Over The Past Decade Received investment from KKR Fully acquired Bokaro Jaypee Acquired Kalyanpur Cement Limited Cement Dalmia Bharat Limited Expanded in Western India with acquisition of Murli Industries Past Decade Consistently made significant investments to expands capacity and diversify geographic footprint. 2010 2012 2014 2015 2018 2020 2021 Completed corporate restructuring to become a single Increased stake in Acquired Calcom OCL to 74.6%; OCL became a and Adhunik subsidiary of the Group listed entity Surpassed 30MnT in Cement capacity Today Enjoys leading market position in highly attractive East, North-East and South region. Continued focus to develop scale, build brand, leverage digital technology and sustainability Well placed to capitalize on growth opportunity going forward 7#8Geographic Expansion FY11 3 PLANTS IN 2 STATES 9MnT 9MnT SOUTH Our Markets FY21 Dalmia Bharat Limited 13 PLANTS IN 9 STATES 30.75MnT⭑ 4.1MnT NORTH EAST 14.6MnT EAST 12.1MnT SOUTH Our Markets Existing Plants Existing Plants *Excludes Murli Industries Acquisition 8#9Growth Snapshot *FY11-FY21 13% 10 YEAR CAGR* 20% 22% Capacity 3x Revenue 6x EBITDA 7x Aggressive Yet Sustainable Growth Enabled Us to Evolve as the 4th Largest Cement Player In India Dalmia Bharat Limited 9#10SECTION 02 COMPANY OVERVIEW 10 10#11Company Overview Pioneer in the Area of Sustainability 01 02 Diverse Product Portfolio with Strong Brand Recognition State-of-the-Art Production Facilities and Supply Chain 03 5 04 Dalmia Bharat Limited Proven Track Record of Financial Performance Multi-tier Governance Structure Overseen by Diverse Board Ability to Add Capacity at Lowest Cost 05 端 06 Market Leader in Highly Attractive East India Market 10 07 EDO EDO ELJO www 11#1201 Pioneer in the Area of Sustainability Dalmia has one of the lowest net carbon footprint in Global cement industry - 492 CO2 emission-Kg/ton in FY21 First cement group to commit to become carbon negative by 2040 Largest producer of slag cement in India with 80% blending ratio Pioneered usage of alternative fuel use in cement kilns Commenced Electrical Vehicles Transition by joining EV100 and becomes first triple joiner globally (of RE100, EP100, and EV100 Dalmia Bharat became 12x water-positive in FY21 Clinker Factor (%)* 76 68 60 Dalmia Bharat Limited Global average India average Dalmia AFR Usage (%TSR)* 19 4 8 Global average India average Dalmia Source: GNR data for global (40% capacity) and India average (65% capacity) *Global & India Average based on latest published data; DBL data as of FY21 AFR → Alternate fuel and raw material; TSR → Thermal Substitution Rate 12#1301 Globally Recognized for its Focus on Sustainability ■ COP 26 Business Leader - one of the 16 Global Companies (only 2 from India) Dalmia Bharat Limited DALMIA BELIEF Clean and Green is Profitable & Sustainable ■ Ranked #1 by CDP in global cement sector on business readiness for a low carbon economy transition ■ Only cement company in the world to be invited to participate at the UN Climate Action Summit in 2019 and UN Climate Ambition Summit in 2020 Among the five climate defenders identified by BBC World globally ■ Member of The Alliance of CEO Climate Leaders by World Economic Forum 13#1402 Diverse Product Portfolio with Strong Brand Recognition Product mix, FY21 Dalmia Bharat Limited 20% ■ ОРС 32% PPC PCC 33% 15% ■ PSC Largest producer of Portland Slag Cement (PSC) in India Manufactured by blending ground clinker with slag and fly ash Reduced clinker factor for enhanced sustainability Category leader in super-specialty cements Portfolio includes Railway Sleeper Cement, Oil Well Cement and special cements for air strips and nuclear power plants construction Largest producer of Oil Well Cement in India Consumer Brands Institutional Brands Dalmis DSP CEMENT Dalmia cement Konark CEMENT Konark CEMENT Konark M AA+ Category premium product for high strength concrete applications Produced using superior ingredients to provide high strength construction Protects the construction from harsh environmental conditions اهل Dalmia INFRA PRO ■ Superior ingredients and a Robotic Quality control process Note PSC: Portland Slag Cement; PPC: Portland Pozzolana Cement; PCC: Portland Composite Cement; OPC: Ordinary Portland Cement INFRAGREEN Dalmia INFRA GREEN Consumers 25% less water & requires 15-20% lower cement content to produce concrete Dalmia INSTA PRO ■ Premium OPC Cement with lower setting-time that helps in reducing brick-lifting time 14#1502 Diverse Product Portfolio with Strong Brand Recognition East Dalmia Bharat Limited South (TN Market) 5% "A+" Dalmia DSP Ramco Super Crete 10% Dalmia DSP, Concreto, ACC F2R *30/bag "A" 22% Dalmia Ultratech ACC&Ambuja Nuvoco *60/bag "B" JK Lakshmi Birla Corp Emami 9% "A+" Dalmia DSP North East 20% *40/bag "A" Dalmia Star Cement *50/bag *75/bag *20/bag "A" Dalmia Ultratech 15% India Ramco "B" Estimated Data Zuari Bharati Penna Chettinad Priya "B" Topcem Amrit Surya Gold Birla Gold 15#1602 Consistent Increase in Share of Premium Product Dalmia Bharat Limited DSP Dalmia CEMENT DHALAI EXPER ■ Since its launch, Dalmia DSP has been immensely successful in East and North East Region ■ DSP contributes 15-20% higher profitability than other products DSP % of Trade Sales 25% 19% 18% 18% 17% 13% 11% 12% 10% 9% 5% ■ Constant increase in share % of trade sale 4% ■Launched in North East region in 2018, it constituted over 15% of trade sales in FY21 0% FY17 FY18 7% FY19 FY20 FY21 Group East North East 15% 16#1702 Diverse Product Portfolio with Strong Brand Recognition A testament of the quality of our cement is its usage in construction of some of the breakthrough projects in the country Dalmia Bharat Limited Bogibeel Bridge, Assam The largest Rail and Road Bridge in India Hirakud Dam, Odisha World's longest dam Chennai Metro, Tamil Nadu 14 lakh daily passengers Dhola-Sadiya Bridge, Assam The largest road bridge in Asia Salt Lake Stadium, Kolkata India's Largest Football Ground ZXUM Indian Air Force landing strip,Arunachal Pradesh Highly Advanced Air Strip 17#1803 State of the Art Production Facilities and Supply Chain Dalmia Bharat Limited Well Balanced Capacity staggered at central locations in Eastern (~50%), Southern India (38%) and North-Eastern (13%) states Strategically located providing easy raw material access and maximum market coverage Dalmia Integrated Unit Lead Distance < 280 Km; Lowest Freight cost vis-a-vis competitors in key markets - Rs. 1,102 (Dalmia) vs Rs. 1,201 (Market Average)* Only Company To Have Clinker Unit In Bihar Fungible plants that are equipped with Multi Fuel Kilns & Boilers which enabled us to have the lowest power and fuel cost per ton in FY21 even with rising input costs State-of-the-Art machinery with superior compressor along with variable frequency drives, and turbo blowers ~2/3 of power need met by 8 Captive Power Plants; Power Consumption <70 Kwh/which is one of the lowest in the industry *Based on FY21 data of Top 7 cement players In India Dalmia Clinker Capacity of Dalmia Constitutes ~75% of Total Clinker Capacity in Orissa 18#1903 Line 3 (Clinker Unit) at RGP - Best in Technology Longest Kiln (Dry Process) - 81m for 5m diameter Maximum guaranteed capacity of 8,000 TPD CCX cyclone for 6th Stage Pre-Heater which is equivalent to 7th Stage PH Latest Jetflex Burner (Biggest Size) for Kiln Firing First in the world - saved 30% Radiation Losses by aluminizing internal & external surface of complete PH along with extra hysil insulation ✓ Sp. Fuel Consumption: 651 Kcal/Kg ✓ Sp. Power Consumption: 36 Kwh/t ✓ Calcination Retention Time: 12.5 Seconds ✓ AFR: 21% ✓ Dust Emission: 8% Mg/Nm³ Dalmia Bharat Limited ✓ CO2 Emission: 308 kg/t 19#20Dalmia Bharat Limited 03 Supply Chain based on Smart Technology Focused on automation and mobility and cloud solutions, strengthening supply chain management Plant Logistics Transaction Lifecycle (Suvidha App) Dealers get access real-time information Technology Stack Developed an in-house app to track and control the entire logistical value chain Plant's yard gate-in → yard gate- out better utilization lower turnaround time. 02 01 about payments, discount earnings, their monthly accounts statements 丁 Power BI PowerApps 04 Sales (Smart-D App) python QlikView Delivery (Driver Sathi App) Enables Dalmia Bharat to track delivery times and status, when there are multiple deliveries across several points, ensuring Acts as a one-stop solution for the sales team to place orders on behalf of customers, track customer performance and satisfaction indices 0101 010010 03 Data Lake SAP secure delivery by generating OTPs. ANALYTICS: Integrates data from multiple applications through process automation and provide real time insights Flutter Amazon SageMaker 20#2104 Ability to Add Capacity at Lowest Cost Dalmia Bharat Limited Organic Expansion South $75/T 100% Consolidation & geographical Acquisitions under IBC diversification $91/T $40/T New Capacity Addition in East $57/T Average 94% 78% $73/T 30.8 26.5 26.5 25.0 25.0 25.0 25.0 57% 52% 72% 73% 67% 51% 51% 68% 45% 46% 61% 51% 43% 11.8 11.8 11.8 9.0 9.0 6.5 1.2 3.5 3.5 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Cement Capacity Utilization% 21 23#2205 Proven Track Record of Financial Performance Sales Volume (MnT) Sales Revenue CAGR:10.1% 16.96 15.30 12.79 20.70 18.69 19.29 FY16 FY17 FY18 FY19 FY20 FY21 Dalmia Bharat Limited Consistent Capacity CAGR:10.4% 10,522 additions have enabled us drive 9,484 9,674 8,580 7,447 6,411 volume and revenue growth FY16 FY17 FY18 FY19 FY20 FY21 EBITDA and EBITDA% EBITDA -O- EBITDA % CAGR:11.8% 2,783 Continuous investment in supply chain and Net Profit and Net Profit% Net Profit -O-Net Profit % CAGR:36.3% 2,036 2,106 1,243 11.8% 1,894 1,942 greentech has 1,592 enabled us to 4.1% 3.4% 3.7% 2.5% 24.8% 25.4% 26.4% generate high 0.5% 23.7% 349 20.5% 21.8% EBITDA and Profit 264 291 238 34 Margin despite FY16 FY17 FY18 FY19 FY20 FY21 headwinds FY16 FY17 FY18 FY19 FY20 FY21 22#2305 Proven Track Record of Financial Performance Net Debt (Rs Cr) 6,052 5,241 3,514 3,124 2,825 99 FY16 FY17 FY18 FY19 FY20 FY21 Adjusted RoCE* 10.0% 9.5% 9.7% 8.5% 7.8% 12.2% FY16 FY17 FY18 FY19 FY20 FY21 *Adjusted for goodwill arising due to past restructuring of business Our resiliency has enabled us to Delever our Balance Sheet and provided Flexibility for future expansion Our consistent focus on efficiency have translated into attractive Return Ratios for our stakeholders 3.76 2.76 Net Debt/EBITDA 1.73 1.61 1.34 Dalmia Bharat Limited 0.04 FY16 FY17 FY18 FY19 FY20 FY21 Adjusted RoE* 8.5% 9.1% 8.7% 6.8% 5.9% 13.5% FY16 FY17 FY18 FY19 FY20 FY21 23#2406 Market Leader in Highly Attractive East India Market Per capita cement consumption of the eastern regions is well below Pan-India GDP growth of eastern regions is well above Pan-India GDP growth (1) Capacity Break Up - East Dalmia Bharat Limited Others 17% 26% NUVOCO Shaping a new world East 150-175 kg All India 225-250 kg World 500-550 kg East: 10.9% All India: 9.6% Key demand drivers of the region Shortage of housing units - 45% PMAY houses constructed till now are in East region With Eastern region playing a ever-increasing role in national security, government has initiated large pipeline of Infrastructure projects 21 out of 110 cities selected under Smart City Mission are located in East Region Key Projects ■ 14,000 Km NHIDCL Road Construction (166,026 cr) Eastern Freight Corridor (*40,344 cr) Dibang hydropower project (*28,080 cr) sli 11% Shree Cement 16% 15% UltraTech CEMENT Region Wise Demand Outlook ACC 16% Ambula Cement Dalmia Bharat CAGR:6.0-7.0% 322 MT 435-445 MT 15% 6.5-7.5% CAGR 16% Central 22% 5.0-6.0% CAGR 21% South Patna Metro (13,411 cr) ■ Affordable Housing in Odisha 18% 5.5-6.5% CAGR 18% West (₹3,000 cr) 26% 8.0-9.0% CAGR 28% East North East Airport Upgrade (*3,500 cr) 18% 5.0-6.0% CAGR 17% North 2020-21E 2025-26P (Source: CRISIL Research) (1) InvestIndia 24#2507 Multi-Tier Governance Structure Board of Directors Audit Committee ■ Stakeholders' Relationship Committee Nomination and Remuneration Committee Corporate Social Responsibility Committee Risk Management Committee ■ Group Governance Committee Buy Back Committee Executive Committee Regional/ Plant Heads ■ 11 member team of top management involved in strategic decision making and driving efficiency, profitability and sustainability Dalmia Bharat Limited Manages day to day operation of the plants ensuring it is aligned with long term vision of the company DBL is the only company among the Top 7 cement players in India to appoint one of the Big4 Accounting Firms to completely outsource Internal Audit Function 25#2607 Reputed and Diverse Board Dalmia Bharat Limited Pradip Kumar Khaitan Chairman & Independent Director Serves as senior partner of Khaitan & Co., an eminent firm of lawyers and member of the Bar Council of India, Bar Council of West Bengal and Indian Council of Arbitration, New Delhi " Areas of specialization are commercial and corporate laws, tax laws, arbitration, intellectual property, foreign collaboration. and M&A Yadu Hari Dalmia (Non-Executive Director) Has over 46 years of experience in the cement industry and has earlier served as President of the Cement Manufacturers Association Bachelor of Commerce (Hons) & Chartered accountant Gautam Dalmia Managing Director Has over 29 years of experience in cement and sugar industries. Holds a B.S and an M.S. degree in Electrical Engineering from Columbia University Puneet Dalmia Managing Director Has over 20 years of experience in cement industry. Government appointed Chairman of 25 member Development council for cement industry ■B.Tech from Indian Institute of Technology-Delhi and Gold-Medalist, M.B.A from IIM- Bangalore " Sudha Pillai Independent Director Virendra Singh Jain Independent Director Niddodi Subrao Rajan (Non-Executive Director) Served Indian Administrative Services and held key positions at various Government bodies such as Planning Commission and NHAI Master's degree in Public Administration from Harvard University, USA ■ Previously served as CEO at Jindal Stainless Ltd. and Chairman of Steel Authority of India Ltd. ■ Chartered accountant and a Cost accountant Serves as Co-Chief Executive Officer at IDFC Foundation; previously held leadership positions with IDFC first Bank and Tata Sons. ■ Holds doctorate from Indian Institute of Technology New Delhi and a graduate degree from Xavier School of Management 26#27SECTION 03 SHAREHOLDER VALUE AND CAPITAL ALLOCATION 27#28Drivers of Value Creation Ilu GROWTH RESPECT 000 PROFITABILITY & CASH FLOW GENERATION HUMAN CAPITAL ACCELERATED FOCUS ON ESG DIGITIZATION Dalmia Bharat Limited 28#29Strategic Imperatives ■ PAN India Pure Play Cement Company ☐ Significant presence in every market wherein Dalmia operates Dalmia Bharat Limited Strategic Vision ■ Grow capacity at a CAGR of 14% - 15% over the next decade to reach 110-130 MnT by 2031 Emerge as one of the most profitable & environment friendly company in cement sector in India ■ Maintain a strong balance sheet along with highest standards of corporate governance ■ Continue building a great organizational culture and a strong value system 29#30Disciplined and Value Focused Capital Allocation Capital Allocation Framework Up to 10% of the Operating Cash Flow towards shareholders' return which would include a mix of both dividend & share buy-backs Up to 10% of Operating Cash Flow towards an Innovation & Green Energy Fund which would be channelized towards focused R&D in the areas of Climate changes and technology advancements The balance available funds will be used to fund growth as well as maintenance capex Target Net Debt/EBITDA < 2.0x* Target ROCE of 14-15% over next few years Treasury will be governed by our Board Approved Treasury Policy * Deviation, if any, could be in exceptional cases for large inorganic opportunities 30 30 Dalmia Bharat Limited#31Innovation and Green Energy Fund Innovation in Logistics through use of digital tools and cutting edge technology Dalmia Bharat Limited Investment in Industry 4.0 and IIoT for process optimization, enhancing productivity, superior scheduling & load balancing and performance management Nurture initiatives which would help in further reduction in carbon footprint through enhancing the wastes utilization and green fuels utilization Establishment of a fully equipped Research & Innovation Centre for development/optimization of new product formulations Development of newer low carbon cements like LC3 and PLC Setting up pilots for disruptive low carbon technologies like CCU, mineralization, oxy-fuel technology, carbon capture through direct calcination 31#32CAPEX PLAN 32 2#33Cement Capacity Expansion Plan Capacity Overview Present Capacity 30.8 Ongoing Projects 7.8 Greenfield 3.0 Brownfield 1.7 Upgradation 5.2 Total Capacity 48.5 (Figures in MnT) © Precise location to be announced in due course Total Cement Capacity Post Expansion - 48.5 MnT Ongoing Projects West 3.0 East 4.8 7.8 Greenfield ■ South 3.0 Brownfield East 1.7 Upgradation North East 1.2 " West 1.0 South 0.9 ■ East 2.1 5.2 Dalmia Bharat Limited 33#34Clinker Capacity Expansion Plan (Figures in MnT) FY21 FY24E SOUTH 7.8 9.4 EAST 6.6 8.3 NORTH-EAST 2.3 3.3 WEST 1.98 2.4 TOTAL 18.68 23.4 Dalmia Bharat Limited 34#35Estimated Capex Breakdown ДДД DOD 國 ₹ Dalmia Bharat Limited Ongoing Capex 7.75 MnT New capacity 10 MnT including clinker debottlenecking Sustainability Green Initiatives Others Including Mining Land, Maintenance Capex/ ROI expenses *1,000 - 1,200 Cr* *4,700 - ₹5,000 Cr *1,000 - 1,200 Cr *1,800 2,000 Cr* *Augmentation for limestone mining land in East was earlier classified as "Ongoing Capex" whereas it is now correctly been classified as "Others" 35#36SECTION 04 ESG 36#37Environmental, Social and Governance (ESG) Environmental, Social & Corporate Governance (ESG) has been an central pillar of our business strategy Environmental Our specific net emissions, 492 kg CO2/ tonne of cement, are well below the world average First global cement company to embark on EP100, EV100 and RE100 collectively Led by sustainable business practices, we aim to become carbon negative by 2040 and 20 times water positive by 2025 Social Corporate Social Responsibility activities assessed on ISO 26000, a first for an Indian cement company Aligned our sustainability strategy to the UN Sustainable Development Goals (SDGs). The Dalmia Bharat Foundation, our CSR arm, helps meet our commitments to the UN SDGs With 158,171 CSR beneficiaries, our Social responsibility initiatives spread across nine states, touching the lives of thousands in 712 villages Governance Dalmia Bharat Limited Institutionalized good governance led by robust Corporate Governance Guidelines, a Code of Conduct, and Financial Ethics Through tools such as Oracle and SAP, Code of Conduct for Directors and Senior Management covers conflict of interests, honest and ethical conduct, confidentiality, protection and I proper use of the company's assets, and compliance with laws A formal Capital Allocation Policy and a Treasury Policy along with appointment of EY as Internal Auditor is a testament of our focus on Governance 37#38Leading the Cement World Globally in Carbon Emissions Dalmia Bharat Limited 492 560 608 Global Average* Dalmia Bharat Net CO₂Emissions India Average* 374 Dalmia Bharat Eastern Operations Net CO2 Emissions * Source: GNR data published in 2021 representative of 22% cement production in the world. ** Source: GNR data published in 2021 representative of 55% cement production in India 38#39Dalmia Bharat Limited Carbon Negative Roadmap 100% blended cement production by 2025 RE 100 commitment to transition to 100% renewable power by 2030 EP 100 commitment to double energy productivity by 2030 EV 100 commitment for sizable Electric Vehicle transition by 2030 Use of renewable biomass, hazardous waste, hydrogen and MSW to fully replace fossil fuel by 2035 Development of Carbon Sinks / Carbon Dalmia Determined Contribution (DDC) Grey to Green Roadmap for Carbon Negative Transition 826 665 546 492 YTD FY 21 457 373 240 -30 Sequestration 1990 2000 2010 2020 2030 2040 Adoption of CCU and other advanced green technologies by 2035 Carbon Footprint Net CO2/ton of Cementitious Material 39#40Carbon Negative Roadmap 1 Energy efficiency 3 Carbon Negative 2040 2 Resource efficiency through circular economy concept Main deep decarbonisation technologies considered Green Hydrogen 哟 Solar Calcination 'co₂ Deep decarbonisation RE Biomass CCU Novel Cements Dalmia Bharat Limited 40#41First Triple Joiner Globally of RE 100, EP 100 and EV 100 RE 100 A global initiative bringing together businesses committed to 100% renewable electricity by 2030 EP 100 A global campaign to double Energy Productivity by 2030 EV 100 Dalmia Bharat Limited A global global initiative to accelerate the transition to Electric Vehicles Microsoft A Adobe Dalmia pwc Bharat Cement Google Dalmia Bharat Cement NTT brandix pred salura Goldman Sachs Swiss Re Dalmia Bharat Cement AstraZeneca lyn L₂ Meridian. gsk Hilton One of the First Companies in India IKEA NatWest hp **RBS facebook Coca-Cola BARCLAYS Nestle Bloomberg Walmart One of the First Cement Company to join Globally Godrej ADITYA BIRLA UltraTech MULTIPLEX JLL Kingspan. TESCO VMware® Unilever 41#421.5°C - First Cement Company to join Globally H Nestle Carlsberg IKEA *ignitis group Dalmia Group Bharat Cement globesight Dalmia Bharat Limited BENNETTS ASSOCIATES DECATHLON Glovo L'ORÉAL > airtel Jio SAP OUR ONLY FUTURE BUSINESS 1.5°C AMBITION FOR A global campaign towards a 1.5°C future at UN Climate Action Summit 42#43Globally ranked No. 1 by CDP DISCLOSURE INSIGHT ACTION RANK: 1 Dalmia Bharat Cement SCORE: 4.64 RANK: 2 Ambuja Cement SCORE: 5.62 ARGOS Dalmia Bharat Limited In line with the Paris Agreement, Dalmia emerged as one of the world's greenest cement manufacturing companies RANK: 3 SCORE: 5.90 Out of the 13 cement majors globally, Dalmia Bharat ranked at the top of the Cement Sector League Table Shree Cement RANK: SCORE: 5.91 RANK: 5 H LafargeHolcim SCORE: 6.03 Best performance in emissions intensity, clinker ratio and exposure to downstream regulation CDP - the only global disclosure system for companies to manage their environmental impacts and for investors/purchasers to access environmental information for use in financial decisions *Scores are calculated on the basis of four parameters - Transition Risk, Physical Risk, Transition Opportunities and Climate Governance & Strategy 43#44Industry Leading Water Positive Operations باال LL OUR STRATEGY Air cooling instead of water cooling in CPP A & Rain water harvesting OUR RESULTS 12x 5x 2021 2019 20x 2025 Dalmia Bharat Limited Zero water discharge at plants Intervention program: drip irrigation, ponds, sprinklers FY21 Freshwater Water withdrawal Total Water withdrawal Water recycled Cumulative water harvesting and conservation potential (CSR) Million m3 2.4 2.9 1.2 24.6 Aggregate rainwater harvesting potential developed (plant and mines) 11.5 44#45Usage of Industrial Wastes as Raw Material or Fuels Dalmia Bharat Limited 2.8 MnT fly ash 5.0 MnT Steel Slag 37 Kilo Ton Red Mud Highest Alternative Raw Material consumption rate globally in the sector Dalmia Bharat is a Total Waste and Plastic Waste Recycling Positive Company 30 Kilo Ton Blue Metal 1.1 MnT Synthetic Gypsum 11 Kilo Ton Lime Sludge 2 Lac Ton of alternative fuels 45#46Savings (Rs. Cr) Significant Increase in Usage of Green Fuel Usage of Green Fuel and Savings 135 10% 9.1% 120 9% 8.3% 106 8% 105 6.4% 7% 90 6% 75 75 4.6% 662 62 5% 64 60 46 46 4% 45 31 30 3% 2% 15 1% 0 0% FY19 FY20 FY21 FY22E Savings ⚫Green Fuel Green Fuel % Dalmia Bharat Limited Dalmia consistently evaluates opportunities to increase usage of green fuels including biomass and waste In line with the philosophy of 'Clean and Green is Profitable & Sustainable', increased usage of green fuels has enabled the company to generate significant savings Long term vision includes enhancing the use of sustainable biomass & alternative fuel to replace 100% fossil fuels by 2035 46#47Dalmia Bharat Limited Sustainability Measures and Its Impact Measures Natural resource conservation by optimal use of Industrial wastes from other industries such as Steel, Thermal Power, Aluminum Strategic acquisitions of cement companies to further optimize the low carbon cement production - Blended Cements Commissioned state-of-the-art new cement plants with latest available technologies Plant-wise/unit-wise monthly GHG footprint monitoring and target settings Accelerated the alternative fuel use in cement kilns New power plants based on renewable energy such as solar, wasted heat from kiln off-gases Targeted to become water positive cement group Impact Less Limestone and energy consumption /ton of cement Became largest producer of Portland Slag cement in = India A lowest carbon footprint cement One of the best energy efficiency ratings globally resulted in energy demand reduction GHG emissions monitoring with discussions on opportunities for improvement Replacement of fossil fuels Renewable power to replace fossil fuel based electricity Better relations with local communities, community wide GHG reductions and more than 5 times water positive cement group. 47#48Sustainability - Awards & Accolades Dalmia Bharat has been consistently respected and recognized for its focus on Sustainability Asia Sustainability and Environmental Stewardship Award International Cement Executive 5S Platinum Award for Umrangso and Lanka Units Quality Circle Forum of India Gold Certification Bengaluru Office Indian Green Building Congress Kadapa Unit Won Silver Category State Energy Conservation Award of Andhra Pradesh Dalmia Bharat Limited BCW and KCW units won Excellence Energy Efficient Unit Award Confederation of Indian Industry (CII) Rajgangpur Unit won Mission Energy Foundation Award. Government of India KCW unit became the 'First Grinding Unit in the Country' to achieve CII 'GreenCo Platinum' rating Confederation of Indian Industry (CII) Dalmiapuram Unit won Best Environmental Excellence in Limestone Mines NCCBM Ariyalur Unit won Best Electrical Energy Performance NCCBM 48#49Redefining Corporate Governance m Dalmia Bharat Limited First cement company in India to formally announce a Capital Allocation Policy Formal Treasury Policy - At least 85% of the money should be invested in AAA rated debt instruments, while the balance 15% can be in AA+ rated debt instruments " Appointed one of the Big4 accounting firms, EY, as its Internal Auditors Dhruva Advisors and EY has been selected for auditing all Related Party Transactions (RPTS) Member firm of Grant Thornton, Walker Chandiok & Co., is proposed as Statutory auditors of the company HIGHEST • Segregated the family office and the corporate office In Process to divest Non core businesses (Refractory, IEX and Hippo Stores) and emerge as a Pure Play cement company STANDARDS Use technology to track and monitor every dimension of business as well as to minimize human intervention and errors Use of SAP and Oracle across organization has strengthen operational checks and balances OF GOVERNANCE Formal Code of Conduct signed and followed by every employee Employee handbook encouraging best practices 49#50First Indian Cement Company - Assurance on the alignment of CSR activities with ISO 26000 Major Initiatives ■ Dalmia Institute of Knowledge & Skill Harnessing (DIKSHA), a skill training center, actively involved in imparting skill trainings in farm and non-farm sector, building Community based organizations and enabling access to finance DIKSHA @ 13 Centers | 5,251 completed training | 100% job offered with a salary of 8,000-12,000 per month as of 30th June 2021 Dalmia Bharat Limited ■ Extended livelihood training - designed a focused group to address the specific needs of tribunal communities 11,184 Self Help Group (SHG) members in 963 SHGS | Supporting tribal communities in 30 villages of two states benefitting 1,000 tribal families l` Development programs - Education, Health, Sanitization and Literacy Organized 600+ Health Camps, benefitting more than 45,000 people | 131 school sanitation blocks & 5000+ individual sanitary latrines benefitting over 30,000 people 50#51Theory of Change Designed to Ensure CSR Initiatives Help Achieve Our Vision & Mission Creating Opportunities Livelihood Skill training in the farm sector aiming at improving the agriculture and allied activities Access to Clean Energy Soil & Water Conservation Facilitating use of cleaner fuel in the kitchens Facilitating use of renewable energy for domestic and agricultural purposes. Making more water available for agriculture and domestic use to the communities through rainwater harvesting Activities Farm Schools for skilling DIKSHA and allied training facilities Promotion of Fuel Efficient Cookstoves and solar powered equipment Integrated Watershed Management, Roof-top rainwater harvesting, Recharging borewells Expected Outcome % increase in yield pre and post intervention Access to Cleaner fuel and reduction in consumption of wood/coal as fuel 50 million m³ water harvested Rainfed area brought under irrigation Uncultivated area brought under Impact Dalmia Bharat Limited Social Improved quality of life through access to basic services Economic - Increase in income of beneficiaries resulting decline in poverty Social - Less morbidity related to smoke emitted from cookstoves Economic Decrease in expenditure on account of purchase of wood/coal Environmental - reduction in GHGs measured through CO2 emission reduction Social Improved quality of life through access to basic services Economic Increase in income of beneficiaries resulting decline in poverty Environmental - Reduction in vulnerability to climate related extreme events cultivation 51#52Dalmia Bharat Limited CSR Program - Awards & Accolades Our CSR Program has been consistently recognized by several institutional bodies and forums Commendation for Significant Achievement in CSR CII-ITC Sustainability Awards 2019, 2017, 2016, 2014, 2013 FICCI-CSR Awards for Creating Sustainable Environment, 2020 Winner Greentech Award 2020 & 2014 ET 2 GOOD 4 GOOD: Achieving Distinction in the pillars of Corporate Governance, Strategy, Monitoring & Evaluation, 2015-16 ET NOW CSR Leadership Awards 2018 & 2016 Special Mention The IICA-NGOBOX Good Practice Recognition 2015 Awards ICC Social Impact Awards 2019 CSR Community Initiatives Award Odisha CSR Forum, 2018 NGO Box CSR Foundation of the Year - 2016 52#53CSR Programs Covered by International Publications LIGHTING ASIA IFC International Finance Corporation 1 w C-TC of Excellence for Sustainable Development CSR in renewable and off-grid energy sector in India Case Studies INDIAN SOLUTIONS FOR THE WORLD TO ACHIEVE SDGs Prepared by Samhita Social Ventures Samhita Beter CSR. Together CH Dalmia Bharat Limited ← → C https://hbr.org/product/dalmia-bharat-social-return-on-investment/W176) Apps Suggested Sites India CSR Summit: O Sugar Aunts Magnet Sugar Aunts MENU Harvard Business Review HER STORE CASE STUDIES GLOBAL BUSINESS Dalmia Bharat: Social Return on Investment CASE STUDY by utkarsh Majmudar and Mamata Rana Case Study DESCRIPTION SAVE SHARE Case Study report published by IFC The CSR initiatives taken up by DBL appeared in the Case Study report published by IFC named, 'CSR in renewable and off-grid energy sector in India'. Recognition from CII and NITI Aayog CII and NITI Aayog recognized the CSR initiatives by DBL in their report, 'Indian solutions for the world to achieve SDGs and Synergistic water conservation Case Study published by Harvard Business Review The initiatives taken up by DBL in soil and water conservation to promote sustainability were presented as a Case Study in HBR 53#54Our CSR Partners NADU SKILL अनुविनि nsfdc N-S-D-C National Skill Development Corporation DEVELOPMENT एन बी सी NBC ए डी सी F D C रेवड़ बोर्ड NABARD BOARD शासन ODISHA SKILL DEVELOPMENT AUTHORITY ENT CORPORAT Smart Village Towards Smart! AND PROSPERITY LLS FOR PROGRESS A NABFOUNDATION Schneider Electric hp USHA IBM BOSCH 2030 Water Resources Group CottonConnect BAIF SPRINT SERIGH Dalmia Bharat Limited WFP HOSTED BY WORLD BANK GROUP Water BCI Better Cotton Initiative CSRBOX India Climate Collaborative Doundation Schneider Electric Smart Ward Skill AP APSSDC bsi. Nirmaan ಕೌಶಲ ಕರ್ನಾಟಕ Organization HelpAge India SmartPowerindia Powered by Aide et Action Changing the world through Education ACWADAM CLARO Hareonsolar mon ami foundation Sparsha Trust SPARSHA MENDA FOUNDATION SYNERGIE For Sustainability 54#55Covid Relief Over 16,000 items of Personal Protective Equipment distributed to local health workers, Primary Health Centers and Quarantine centers 300 Oxygen cylinders and 6 Oxygen Generation Plants provided to Healthcare Departments at various locations A 65 bedded COVID Care treatment facility set-up in Rajgangpur. Vehicle support to Doctors, medicine kits for home quarantined people, preventive medicine kits, thermal scanners, hand sanitizers, food packets to front line workers etc. Tied-up with various hospitals for treatment during COVID related emergencies across locations Dalmia Bharat Limited 55#56SECTION 00 06 APPENDIX 56#57Key Financials Dalmia Bharat Limited FY16 FY17 FY18 FY19 FY20 FY21 Cement Capacity - MnT 25.00 25.00 25.00 26.50 26.50 30.75 Sales Volume - MnT 12.79 15.30 16.96 18.69 19.29 20.70 Net Sales Rs Cr - 6,411 7,447 8,580 9,484 9,674 10,522 EBITDA Rs Cr 1,592 1,894 2,036 1,942 2,106 2,783 EBITDA Margin% 24.8% 25.4% 23.7% 20.5% 21.8% 26.4% EBITDA Rs/MT - 1,265 1,261 1,198 1,009 1,072 1,333 PBT - Rs Cr 510 108 389 339 357 1,408 PAT - Rs Cr 264 34 291 349 238 1,243 Profit Margin% 4.1% 0.5% 3.4% 3.7% 2.5% 11.8% Debt/Equity 1.71 0.84 0.71 0.55 0.56 0.29 Net Debt 6.052 5,241 3,514 3,124 2,825 99 Net Debt/EBITDA 3.76x 2.76x 1.73x 1.61x 1.34x 0.04x 57#58Adjusted ROCE and RoE Dalmia Bharat Limited REPORTED ADJUSTED (in Rs Cr) FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA (inclusive Other Income) 2,190 2,292 2,186 2,323 2,965 2,190 2,292 2,186 2,323 2,965 - Less Depreciation as per books (1,226) (1,213) (1,296) (1,528) (1,262) (1,226) (1,213) (1,296) (1,528) (1,262) Add: Amortization on Goodwill 486 417 420 402 203 EBIT Less: Finance Cost PBT 964 1,079 890 795 1,703 1,450 1,496 1,310 1,197 1,906 856 690 551 438 295 856 690 551 438 295 108 389 339 357 1,408 594 806 759 759 1,611 Less: Tax expense PAT 74 98 -10 119 165 74 98 -10 119 165 34 291 349 238 1,243 520 708 769 640 1,446 Equity + Reserves + Minority Interest 9,600 10,305 10,650 10,586 12,663 9,600 10,305 10,650 10,586 12,663 Less: WDV of Goodwill on merger schemes (2,515) (1,809) (1,389) (987) (784) Total Net Worth 9,600 10,305 10,650 10,586 12,663 7,085 8,496 9,261 9,599 11,879 Add: Gross Debt 8,048 7,276 5,907 5,966 3,742 8,048 7,276 5,907 5,966 3,742 Capital Employed 17,648 17,581 16,557 16,552 16,405 15,133 15,772 15,168 15,565 15,621 ROCE% RoE% 6.1% 6.1% 5.2% 4.8% 10.3% 10.0% 9.7% 8.5% 7.8% 12.2% 0.5% 2.9% 3.3% 2.2% 10.7% 8.5% 9.1% 8.7% 6.8% 13.5% 58#59Thank You CONTACT INFORMATION Corporate Office: 11th & 12th floor, Hansalaya Building, 15, Barakhamba Road, New Delhi - 110001 e: [email protected] w: www.dalmiacement.com mg 3 h 4.4