#1India's Largest Cement Company EARNINGS: Q2 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 joins RE100 - Commits to 100% renewable energy usage by 2050 ADITYA BIRLA UltraTech • 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. 3#4Expanding the boundaries: Carbon footprint at concrete level ADITYA BIRLA UltraTech ADITYA BIRLA POSITIVE CONCRETE Concrete offers significant sustainability and performance benefits over other building materials UltraTech Strength, durability & resilience Minimal use and responsible. stewardship of land Local availability Versatility Recyclability Recarbonation 2 GCCA members committed to drive down the CO₂ 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 m³ of concrete* *Based on our cement & RMC data for FY21 4#5Key Highlights EP-14 Sadar Double bridge, Nagpur is a critical infrastructure that reduces environment impact by reducing congestion. The project will benefit the society by reduction of ~1.1 million tons of CO2 emissions over its life, based on estimated fuel savings from the project.#6Macro indicators ADITYA BIRLA UltraTech 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% • 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 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 Global coal crisis Economy H Industry 6#7Sectoral update Q2 FY22 Volume State/Region Growth North Central East West South I: Infrastructure, R: Rural, C: Commercial, H: Housing 20 State/Region wise performance H C Key drivers Infrastructure segment registered growth Housing witnessed degrowth on account of heavy rains Housing registered growth led by rural housing Infrastructure segment saw degrowth in all the states Housing witnessed degrowth due to rains and Covid related restrictions, Odisha was affected by cyclone Infrastructure saw growth in Jharkhand and Chhattisgarh Maharashtra: Housing and Infrastructure segment saw strong growth led by rural and urban demand as Covid related restrictions were eased out • • Gujarat: Demand growth in all the segments 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 ADITYA BIRLA UltraTech 7#8Key Performance Drivers (India Operations): Q2 FY22 8800 Col Да ADITYA BIRLA UltraTech Grey Domestic Volume Revenue Growth Premium Products Volume RMC Capacity UBS Outlets Green Power Commissioned* 8% YoY 14% YoY 14% YoY 33% YoY 14% YoY 12 MW WHRS * 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. 21 MW Solar 8#9CSR awards TIONAL AWARDS EDITION Academic Partner ESG INDIA LEADERSHIP AWARDS 2021 Recognising Ultratech Cement Limited for Leadership in Energy Efficiency Presented By: Acuite ESG Risk WE HELP YOU DECIDE KTYRE Himachal Prades Department of Health and Family V WOWELSPUN abilit Environ S &A Summit & A Summit 2021 NATIO OUTS RD C& ha, S Orga ENT National Award for Corporate Social Responsibility for excellence in Covid Support- from the India CSR Network Sidhi Cement Works, Madhya Pradesh wins Fame CSR award 2021 for CSR response towards pandemic The award recognises Birla White's consistent work towards achieving sustainable energy performance through innovative solutions and technology upgradation. National Safety Awards 2020 ADITYA BIRLA UltraTech SARVASHRESHTHA SURAKSHA PURASKAR Sarjapura RMC plant, Karnataka SURAKSHA PURASKAR Hadphsar RMC plant, Maharashtra PRASHANSA PATRA Pawane RMC plant, Maharashtra Sanathal RMC plant, Gujarat 6#10UltraTech continues its winning spree Brand Leader across segments UltraTech Wins 6 awards Brand of The Year UTCL- UTCL- Video Best Use of Vernacular UTCL- Best Use Advertising Language in Mobile Advertising of Branded Content UTCL- Cross Channel Integration D UTCL- Native Advertising Awarded by The Mobile Marketing Association (MMA) in 10th annual MMA Smarties India Awards 2021 for creative use of mobile technologies. UltraTech's website www.ultratechcement.com and #BaatGharki and #Chance NaLo digital campaigns win accolades at Indian Digital Marketing Awards 2021 Four Silvers Online Advertising & Direct Response, Multimedia Mobile Campaign, Best use of Social Media & Best use of Experiential Tech for Digital Two Golds Best Website & Location Based Marketing One Bronze Best Use of Native Advertising UltraTech wins eight trophies at Campaign India Digital Crest Awards 2021 Website Corporate/Brand Digital Strategy, Integrated, Online Video & Content Community Display Mobile Display & Mobile Integrated ADITYA BIRLA XX UltraTech 10#11Financial Performance Dalla Cement Works, Uttar Pradesh#12Sales: Q2 FY22 ADITYA BIRLA Grey Cement (India) RMC White Cement Export and Others Grey Cement (Overseas) Consolidated Volumes (Mnt) 19.9 148 0.38 0.21 1.21 21.64 No of RMC plants Growth (yoy) 8% 43 17% -45% 0% 8% No of RMC plants Revenues (Rs Crs) 9,884 614 Growth (yoy) 505 240 501 11,743 13% 57% 16% -7% -1% 14% UltraTech CEMENT The Engineer's Choice UltraTech CONCRETE Birla White THE WHITEST WHITE CEMENT ADITYA BIRLA STAR CEMENT UltraTech 12#13Performance at a glance Particulars Q2 FY22 Revenues EBITDA PBT PAT 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% ADITYA BIRLA UltraTech 13#14Key Cost Indicators: Q2 FY22 $ Logistics Cost Energy Cost Raw Material Cost 31% Increased 7% YoY to Rs. 1219/t Diesel price hike - 21% YoY 28% 13% ADITYA BIRLA Increased 17% YoY to Rs. 1099/t Increased 3% YoY to Rs. 518/t Steep hike in coal / petcoke prices Higher input costs UltraTech 14#15Logistics Cost Trend Logistics cost (Rs./mt) 100 Q1 18 1140 79 Q2FY21 Logistics cost v/s Diesel Price Index -Crude Prices (Index) Diesel Prices (index) 1219 Q2FY22 160 149 132 148 138 104 111 108 87 Q2 21 Q1 22 Q2 22 Logistics Cost (index) 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 ADITYA BIRLA UltraTech 15#16Raw Material Cost Trend Raw Material cost (Rs./mt) Q1 18 505 13 518 Q2FY21 Q2FY22 Conversion ratio and Flyash Price Index Conversion Ratio Index (Clinker to cement) 112 111 111 102 103 103 Q2 21 Q1 22 Q2 22 Flyash Price Index Cost increase : 3% YoY and 2% QoQ • Increase in slag, gypsum and HSD prices • Increase in diesel prices impacted input costs ADITYA BIRLA UltraTech 16#17Energy Cost Trend Q1 18 Energy cost (Rs./mt) 937 162 1099 Q2FY21 Q2FY22 Energy cost v/s Petcoke Spot Price Index 240 171 108 117 76 126 Q2 21 Q1 22 Q2 22 Pet coke Price (Index) Energy Cost (Index) YoY cost increase : 17% Reduced power consumption by ~4% • Green Power Mix: 13.7% . Increased imported fuel prices QoQ cost increase: 8% • Fuel price impact Annual plant maintenance ADITYA BIRLA UltraTech 17#18Other Cost Trend 100 Q1 18 Other cost (Rs./mt) 641 Q2FY21 160 WPI Index 801 Q2FY22 118 108 120 Q2 21 Q1 22 Q2 22 YoY cost increase : 25% 2 • Increase in packing cost ~ 20% Normalised fixed cost QoQ cost increase: 20% • Annual plant maintenance ADITYA BIRLA UltraTech 18#19Q2 FY22 Financial Performance ADITYA BIRLA UltraTech Rs Crs UTCL Standalone Particulars India Operations CY LY CY LY Revenues (Net of Taxes) 11,272 9,895 11,242^ Λ 9,861 Operating Income 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 ^After elimination of inter company sales 19#20Income Statement: Q2 FY22 Consolidated India Operations Rs Crs Particulars CY LY % 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 Minority interest 1314 1309 0.3 PAT 1328 1300 2 EPS (Rs.) 222.4 137.8 61 219.8 134.2 64 (basis trailing 12 months and before exceptional items) ^After elimination of inter company sales ADITYA BIRLA UltraTech 20#21EBITDA PMT trend 1187 1156 1159 1006 154 89 172 121 855 75 1033 1069 984 885 780 Q2FY16 Q2FY17 Q2FY18 Q2FY19 Q2FY20 Operating Profit Other Income Total EBITDA 1449 1394 68 69 1381 1324 Q2FY21 Q2FY22 ADITYA BIRLA UltraTech 21#22Value creation for all stakeholders 12.0% 10.0% 17.3% 15.3% 9.0% 12.1% 16.5% 15.6% 59,275 60,724 64,482 60,078 33,763 39,051 44,180 46,163 FY19 FY20 FY21 Sep 21 FY19 FY20 FY21 Sep 21 I Capital Employed (Rs Crs) ROCE* I Net Worth (Rs Crs) ROE * *Excluding Goodwill 3.55 24,983 Dec 18 ADITYA BIRLA 0.47 6,336 Sep 21 Net Debt: EBITDA reduced to 0.47x from the peak of 3.55x after UNCL and Century acquisitions during FY19 I Net Debt (Rs Crs) Net Debt/EBITDA UltraTech 22#23Disclaimer 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