UltraTech Cement Limited · NSE:ULTRACEMCO

UltraTech Cement — Merger or Acquisition (September 2013)

10 slides from UltraTech Cement's merger presentation, Sep 11, 2013

  1. Slide 1: Acquisition of Gujarat Cement Unit of Jaypee Cement Corporation Limited through a demerger

    Acquisition of Gujarat Cement Unit of Jaypee Cement Corporation Limited through a demerger Mumbai, 11th September, 2013

  2. Slide 2: The Context

    The Context….  UltraTech is the largest cement company in India  Current cement capacity ~54mtpa (~51 mtpa in India & 3 mtpa overseas).  Significant capacity addition during the last decade:  Added ~ 21 mtpa capacity since 2005;  Additional ~ 10 mtpa underway - likely commissioning by FY15;  C

  3. Slide 3: Benefits of the transaction

    Benefits of the transaction  Meet UltraTech’s (UTCL) need to enhance capacity in Gujarat – to serve local, coastal & export markets;  High quality operational assets with immediate cash generation potential  Sizable land and mining reserve – supports doubling of the capacity.  Manufacturing, mar

  4. Slide 4: Structure and Plant Locations

    Structure and Plant Locations Jaiprakash Associates Limited (JAL) – Parent GU Wanakbori Cement: 2.4 mtpa Jaypee Cement Corporation Ltd (JCCL) - Wholly owned subsidiary AP Cement Unit & Gujarat Cement IU Kutch Other Businesses Unit Clinker: 3.6 mtpa Cement: 2.4 mtpa UTCL - Gujarat Cement Mumbai To be

  5. Slide 5: Assets to be Acquired

    Assets to be Acquired  Recently commissioned plant with latest technology and split grinding unit.  Scope to double the capacity:  Land Area – 5479 Ha,  Limestone Reserve ~ 500 MnT – sufficient for 90 years.  Strong infrastructure assets:  CPP - 57.5 MW,  DG - 30 MW,  Jetty – 2500 DWT barges

  6. Slide 6: Synergies

    Synergies Plant locations and Market Distribution  Multiple plants across Gujarat with grinding units closer to the consumers Kutch area  Market realignment: JP IU – Ahmedabad area - Synergy gain: approx. Rs.30-40 crs p.a. Kutch 2.40 ( 2.40 JP GU ‐ Wanakbori  Further Potential Gain: ( 2 . 2 . - T

  7. Slide 7: Valuation & Consideration

    Valuation & Consideration  Enterprise value (“EV”) – Rs.3,800 Crores +/- Net working capital at actuals at Closing.  Will take over all the assets and liabilities of the demerged undertaking.  Consideration is equal to EV less liabilities taken over.. Such Consideration to be discharged by issue

  8. Slide 8: Balance sheet will continue to remain strong

    Balance sheet will continue to remain strong Pre- Acquisition Post Acquisition Debt : Equity Gross 0.31 : 1 0.54 :1 Net 0.03 :1 0.26 :1 Debt / EBIDTA 1.0x 1.7x

  9. Slide 9: Transaction Advisers

    Transaction Advisers Transaction Advisor Standard Chartered Bank Independent Fairness Axis Capital Limited Opinion Legal Advisor Amarchand & Mangaldas & Suresh A. Shroff & Co. Valuation Expert Bansi S Mehta & Co.

  10. Slide 10: Aditya Birla Group

    ADITYA BIRLA GROUP ad > LILLIA UltraTech Cement, the Engineers choice is the preferred cement for all types of projects-be it large infrastructure projects, buildings, complexes or individual homes. UltraTech Cement stands by its promise of providing consistent quality cement, on time, everytime. Th

UltraTech Cement — Merger or Acquisition (September 2013) on 6ix