Acc Limited · NSE:ACC

Acc — Q2 2017 Earnings Presentation

19 slides from Acc's earnings presentation, Jul 17, 2017

  1. Slide 1: Q2’17 Results Investor Presentation

    Q2’17 Results Investor Presentation July 17, 2017

  2. Slide 2: Contents

    Contents 1 Economy & Cement Industry Update 2 GST Implementation 3 Strategic Pillars 4 Performance Levers 5 Financial Highlights 2 ACC Limited / India Investor Presentation

  3. Slide 3: Economy & Cement Industry Update

    Economy & Cement Industry Update ▪ World Bank has projected India’s GDP growth @ 7.2% in 2017-18 ▪ GST expected to have favorable impact on growth, tax revenues and better tax compliance ▪ Strong foreign funds flow & rupee strength, unlikely to witness any major Economy reversal ▪ Positive monsoon f

  4. Slide 4: GST Implementation

    Contents 1 Economy & Cement Industry Update 2 GST Implementation 3 Strategic Pillars 4 Performance Levers 5 Financial Highlights 4 ACC Limited / India Investor Presentation

  5. Slide 5: GST implementation

    GST implementation Company has implemented GST with effect from July 1, 2017 and our entire customer and vendor base is GST-ready and registered as required, thus streamlining day-to-day operations 5 ACC Limited / India

  6. Slide 6: Strategic Pillars

    Contents 1 Economy & Cement Industry Update 2 GST Implementation 3 Strategic Pillars 4 Performance Levers 5 Financial Highlights 6 ACC Limited / India Investor Presentation

  7. Slide 7: Strategic Pillars - Enhancing Values

    Strategic Pillars - Enhancing Values Commercial transformation Cost Leadership - Customer experience management - Raw material & Fuel Source-Mix optimization - Process efficiency improvement - Customer segment based value - Logistics operational excellence initiatives proposition - Fixed cost optimi

  8. Slide 8: Performance Levers

    Contents 1 Economy & Cement Industry Update 2 GST Implementation 3 Strategic Pillars 4 Performance Levers 5 Financial Highlights 8 ACC Limited / India Investor Presentation

  9. Slide 9: Performance Levers – Q2’17

    Performance Levers – Q2’17 Cement Volume RMX Volume Capacity Utilization 6.74 mt 6.72 Lakh m3 84% +10% YoY +6% YoY PY 78% Op. EBITDA Op. EBITDA PAT Rs 637 Cr Margin 19.1% Rs 326 Cr 38% up YoY PY 16.4% 33% up YoY Double digit volume growth; Margin improved by 278 bps 9 ACC Limited / India

  10. Slide 10: Financial Highlights

    Contents 1 Economy & Cement Industry Update 2 GST Implementation 3 Strategic Pillars 4 Performance Levers 5 Financial Highlights 10 ACC Limited / India Investor Presentation

  11. Slide 11: Ind AS Result

    Ind AS Result Particulars UoM Q2'16 Q2'17 +/- PY H1'16 H1'17 +/- PY Sales (net of Excise Duty) Rs Cr 2827 3329 18% 5712 6437 13% Op. EBITDA Rs Cr 462 637 38% 906 1054 16% Op EBITDA Margin % 16.4 19.1 278 bps 15.9 16.4 50 bps Depreciation Rs Cr 142 163 15% 286 329 15% Other income Rs Cr 26 26 1% 68 5

  12. Slide 12: Financial Position

    Financial Position Rs Cr Standalone Particulars 31.12.16 30.06.17 Shareholders Funds 8832 9232 Non current Liabilities 589 589 Current Liabilities 4019 4107 Equity & Liabilities 13440 13928 Fixed Assets 8012 7828 Non current investment 32 4 Non current loan and advances 185 199 Other non current ass

  13. Slide 13: Cement Sales Volume

    Cement Sales Volume [MioT] +10% +7% 6.74 12.48 13.33 6.12 Q2’16 Q2’17 H1’16 H1’17 Additional volume from new capacity at Jamul & Sindri strengthened market presence in East Premium Product volume growth @ 9% YoY New products launched in previous quarter well accepted by customers 13 ACC Limited / In

  14. Slide 14: Consolidated Sales (Net of excise duty)

    Consolidated Sales (Net of excise duty) [Rs Cr] +18% +13% 3,329 6,437 2,827 5,712 Q2’16 Q2’17 H1’16 H1’17 Cement Business sales gone up by 18 % RMX Business sales improved by 14 % 14 ACC Limited / India

  15. Slide 15: Cost of Material Consumed

    Cost of Material Consumed [Rs/t Cement] +16% +8% 580 548 500 506 Q2’16 Q2’17 H1’16 H1’17 Gypsum & Raw mix optimization helped curb cost increase Basic Price of Slag increased due to spurt in demand Long lead Slag & Flyash purchase due to shortage from nearby sources 15 ACC Limited / India

  16. Slide 16: Power & Fuel

    Power & Fuel [Rs/t Cement] +19% +15% 1,011 994 848 868 Q2’16 Q2’17 H1’16 H1’17 Energy efficiency improved Fuel Mix Optimized [Petcoke Usage increased to 65% (PY 58%)] Petcoke prices almost doubled; Linkage coal price increased 16 ACC Limited / India

  17. Slide 17: Freight & Forwarding

    Freight & Forwarding [Rs/t Cement] 1,258 1,237 1,029 +14% 80* 1,075 +8% 71* 1,178 1,166 Q2’16 Q2’17 H1’16 H1’17 Increase in Diesel Price by ~ 12% - Road Freight impacted Despite Busy season surcharge waiverof Railway not available during the period, Freight increase restricted through various logist

  18. Slide 18: Other Expenses

    Other Expenses [Rs/t Cement] +1% +3% 892 904 867 897 Q2’16 Q2’17 H1’16 H1’17 Packing material cost increased due to increase in price of PP granules 18 ACC Limited / India

  19. Slide 19: Disclaimer

    Disclaimer Cautionary statement regarding forward looking statements This presentation may contain certain forward-looking statements relating to the Company’s future business, developments and economic performance Such statements may be subject to a number of risks, uncertainties and other importan

ACC — Q2 2017 Earnings Presentation on 6ix