Corporate Dossier

INDIA'S LARGEST CEMENT COMPANY CORPORATE DOSSIER STOCK CODE: BSE: 532538 NSE: ULTRACEMCO REUTERS: UTCL.NS BLOOMBERG: UTCEM IS / UTCEM LX CONTENTS ADITYA BIRLA OPERATIONAL INDIAN CEMENT ULTRATECH GROUP‐ AND FINANCIAL SECTOR LANDSCAPE OVERVIEW PERFORMANCE GLOSSARY Mnt ‐ Million Metric tons Lmt ‐ Lakhs 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) 9M ‐ April ‐ December ROCE ‐ Return on Average Capital Employed ROIC ‐ Return on Invested Capital Note: The financial figures in this presentation have been rounded off to the nearest ` 1 Cr. 1 US$ = ` 63.88 ADITYA BIRLA GROUP OVERVIEW ADITYA BIRLA GROUP - OVERVIEW . # 1 cement player in . A global metal India powerhouse . # 4 largest cement . ‐ 3rd biggest producers player globally (ex of primary aluminum PREMIUM GLOBAL China) in Asia CONGLOMERATE . # 1 in VSF globally US$ ~43 billion Corporation . # 1 in carbon black . # 5 largest producer of globally acrylic fibre globally In the League of Fortune 500 Operating in 35 countries with . A trans‐national bulk over 50% Group revenues from . # 3 cellular operator in commodity trading overseas India solutions provider globally Anchored by about 120,000 employees from 42 nationalities . Top fashion and . # 1 producer of noble Ranked No. 1 corporate in the lifestyle player in India ferro alloys in India . Among top 2 . Amongst largest iron Nielsen’s Corporate Image supermarket chains in ore non‐ captive Monitor FY15 retail in India private mining player . Ranks among the . AUM of ~ ` 3.0 Lakh crore largest fund managers and a lending book in India ~ ` 47 Thousand crore OUR VALUES - INTEGRITY • COMMITMENT • PASSION • SEAMLESSNESS • SPEED 4 ULTRATECH CEMENT INDIA’S LARGEST CEMENT COMPANY No. 1 RMC player in India’s Largest Cement India with Market Cap of FY17 Consolidated Selling Brand ~ 100 plants ~ US$ 19 Bn Revenue ~ US$ 3.7 Bn Different Products to provide complete No.1 Player of White Building Solutions Cement & Cement ~ 1,200 million bags ~ 57000 Direct & Indirect ~ 1540 stores based Putty every year Employment 5 ULTRATECH CEMENT BUILDING PRODUCTS PORTFOLIO COMPLETE BUILDING SOLUTIONS UNDER ONE UMBRELLA 6 OUR VISION AND MISSION Vision To be The Leader in Building Solutions Mission To deliver superior value to our stakeholders on the four pillars of Customer Team Sustainability Centricity Innovation Empowerment 7 ULTRATECH’S JOURNEY 17x 89 mtpa Current (Mkt Cap ~ US$19bn) 6x . Acquired 21.2 mtpa capacity . #4 global cement player by capacity (ex. China) Aug'04 Mar'07 Mar'10 Mar'13 Mar'16 Current 52 mtpa Mkt Cap – US$7bn UTCL Share Price Trend BSE Sensex Trend . Organic Capacity addition:15 mtpa 2017 . Group Cement business under one roof . Became India’s Largest Cement Company 31 mtpa . Acquisition of Star Cement: 3 mtpa 2016 1.0 mtpa Mkt Cap – US$1bn . 1st cement plant set up . Acquisition of L&T Cement for Grasim (Vikram Business (17 mtpa) Cement) and Indian . Listing as part of the 2011 69 mtpa Rayon (Rajashree acquisition Mkt Cap > US$15bn Cement) . New Capacity addition 2008 Organic – 12.7 mtpa and 2004 Inorganic – 4.8 mtpa 1983‐85 1998 42 mtpa Mkt Cap – US$2bn . Focus on Cost Leadership between 2005‐2009 8.5 mtpa . Synergy of Cement Business of ABG under one roof . Merger of Indian . Investments in TPPs – 80% power self‐sufficient Rayon and Grasim Cement business 8 GOVERNANCE Board of Directors Non‐Executive Chairman Independent Directors Executive Directors Mr. KM Birla Mr. GM Dave Mr. KK Maheshwari ‐ MD Mr. SB Mathur Mr. Atul Daga ‐ CFO Non‐Executive Directors Mr. Arun Adhikari Mrs. Rajashree Birla Mrs. Renuka Ramnath Mr. DD Rathi Mrs. Sukanya Kripalu Mr. OP Puranmalka Ms. Alka Bharucha 9 MANAGEMENT TEAM Mr. KK Maheshwari Mr. KC Jhanwar Mr. Atul Daga Mr. Vivek Agrawal Mr. Ramesh Mitragotri Managing Director Chief Manufacturing Executive Director & Chief Marketing Officer Chief Human Resource Officer CFO Officer . He is a Fellow . A bachelor of Chartered Accountant . A Fellow Chartered . A Chartered Engineering . A post graduate in PM with over 39 years of Accountant and has Accountant by (Mechanical) and an and IR, Mr. Mitragotri experience. Held a over 36 years of profession and has over MBA from FMS, Delhi, brings with him over 31 variety of roles in experience in Group. 30 years of experience Mr Agrawal has yrs of experience, with Group having exposure Has worked across Mr. Daga joined the experience of over 31 organizations like in multi‐business, multi‐ finance, operations and group as an Executive years and with Group Owens Corning, HCC geography and multi‐ general management Assistant to Late Mr. about 23 years. A Limited and Philips culture. roles in the Cement and Aditya Vikram Birla. Has veteran with the India in different roles Chemicals business of gained experience Cement business of the of human resources . He has brought in the Group. Carries deep different roles like Group, brings with him management. Has strong execution rigor expertise in project Financial Planning, a vast experience in joined the group in to his work, and has management and Treasury Management, marketing. Played key 2007. considerably commercial skills, as Business Strategy, role in growing Ready strengthened both . Prior to moving into well as significant Merger & Acquisition, Mix Concrete Business innovation and new current role, had experience in Investor Relations. of the Company. products development. worked as CHRO in acquisitions and He scripted the growth . Prior to moving into Retail & Chemical integration. of the Group’s VSF current role, was CEO businesses of the group Business towards a . Prior to moving current of our subsidiary Star along with a small stint more competitive and role, was heading Chlor Cement. in cement business as sustainable model. Alkali Chemicals Head –HR Marketing. Business of the Group. 10 SHAREHOLDING PATTERN Promoter Group Non‐promoter Shareholding > 1% Name Holding (%) Name Holding (%) Grasim Industries Limited 60.22 Aberdeen 2.78 Hindalco Industries Limited 0.46 LIC of India 2.33 Trapti Trading & Investments Pvt Ltd 0.24 Oppenheimer Developing Markets Fund 1.67 Turquoise Investments and Finance Pvt Ltd 0.10 Euro Pacific Growth Fund 1.03 Others 0.03 Total FPI holding 22.20 Total 61.05 11 Indian Cement Sector INDIAN CEMENT INDUSTRY OVERVIEW Second largest market Globally with installed capacity of ~ 440 mtpa after China ~2400 MTPA 2nd fastest‐growing cement market globally: Compounded Average Growth: ~7% (FY 2000 – FY2015) Market Composition: North ‐ 22%, Central – 13%, East ‐ 18%, West ‐ 13%, South ‐ 34% 13 INDIAN CEMENT INDUSTRY OVERVIEW (contd…) Per Capita Cement Consumption at PER CAPITA CEMENT COSNUMPTION (KG) 200 kg lowest among the developing countries; World average ~ 580 Kg 1780 China Turkey Consolidation in industry at regular intervals Vietnam 830 World 660 580 470 Russia Entry of new players 355 280 Brazil 200 USA Fragmented Market: India No of plants ~ 195, owned by ~ 55 players, Top 5 players holds Source: Cement Consumption Cembureau, Company Estimates ~ 51% of capacity Population IMF 14 INDIAN CEMENT INDUSTRY GDP GROWTH V/S CEMENT DEMAND GROWTH Long‐term average cement 14 demand growth: 1.2x of GDP (‐) ve 12 +ve co‐relation co‐relation 10 Cement demand has been 8 weak in past 3‐4 years, led by a slowdown in housing 6 and commercial 4 However, sustained cement consumption growth ~ 7.5% 2 in last 16 years (2001 0 onwards) FY02 FY05 FY08 FY11 FY14 FY17 ‐2 Demand likely to reach it’s Despatches Growth GDP Growth normal level with improved focus on infrastructure, low cost housing and uptick in rural housing 15 INDIAN CEMENT INDUSTRY DEMAND-SUPPLY TREND In MnT Incremental Supply ‐ 230 mnt > Demand ‐ 108 mnt S ‐ 68 mnt < D ‐ 95 mnt 129 Industry capacity more than 156 doubled in last decade 148 484 496 469 440 417 428 402 376 363 367 328 340 Around 55 million tons capacity 34 310 315 292 276 272 added in last 3 years 257 269 243 249 230 216 214 198 203 Though demand remained low in 178 164 last 3 years Surplus capacity in the sector ~ 156 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY20FY21 million tons Capacity Demand FY ’08 ‘09 ‘10 ‘11 ’12 ’13 ‘14 ’15 ’16 ’17 ‘18 ‘19 ‘20 ‘21 Gr. 9.8 8.5 12.1 5.7 7.1 5.4 2.7 3.2 4.6 1.2 7.1 8.0 8.0 8.0 Util. 83 82 74 70 72 67 66 64 65 64 66 67 70 74 SECTOR CAPACITY UTILIZATION TO IMPROVE GRADUALLY Source: Company estimates & DIPP data. 16 DEMAND GROWTH DRIVERS . Strong demand from IT / ITES, . Rural demand rising with the historically ‐ like Chennai, improvement in rural economy Bangalore & Hyderabad . In recent budget proposal . Private sector Capex is slow increase in crop MSP to 1.5x of cost of production . 2 years of good monsoon and 7th pay commission hike to drive good demand . Infrastructure investment of . Rapid Urbanization (33% in USD 1 Trillion the XIIth 2011 to 40% in 2030) Plan(GOI) period . Number of Cities(population of . Investment projected across 1Mn.+) to grow from 53 (2011) sectors viz. roads, railways, to 87 (2030) metro, irrigation, ports, etc. Benefit of reduced home loan . Development in AP & interest Telangana Source: 1.Mckinsey Urbanization Report 2.Working Group Report, Govt. of India m 3. Consultation paper , Planning Commission of India 17 SECTOR GUIDANCE . Demand expected to mirror GDP growth . Government led spending will continue to be a key growth driver: Government Housing Plan – Housing for all: 20 ml Houses for urban areas and 40 ml in Rural areas Pradhan Mantri Awas Yozana – Gramin : To construct 5.1 ml units in FY18 and 5.1 ml units by end of FY19 No.

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