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ACC CEMENTS

India's No. 1 Cement Company

ACC Cements Limited


HEAD QUARTER:ACCLimited
CementHouse
121,MaharshiKarveRoad
Mumbai-400020
India
REGISTER OFFICE:HeadOffice
ACCThaneComplex
NearTeenHaathNaka
LalBahadurShastriMarg,
Thane(West)-400604,
India

NATURE OF BUSINESS AND


BUSINESS SEGMENT

Sector: Public Sector Company.


Industry:Cements.

HISTORY
Established in 1936, ACC has been a pioneer and trendsetter in cement and concrete technology.
Among the first companies in India to include
commitment to environment protection as a corporate
objective. ACC is the most preferred cement brand name
in India.
ACC is now part of the worldwide Holcim Group.

KEY DEMAND DRIVERS


INFRASTRUCTURE
Construction linked sector account for 8.3% of 12th plan spend
~850bn.
Infrastructure development - Roads, Ports, Power, etc
COMMERCIAL / INDUSTRIAL
High growth in retail, commercial and institutional sector in urban and
semi-urban areas
High growth in industry segment
HOUSING
Populaltion growth and rising percapita income
Mass urbanization of ~250 Million people over next ~20 years
Thrust by Govt. on Rural / low cost / mass housing.

Continued
1991-TheCompanyenteredintoanagreementwithRefractechnik,
Germanyformanufactureofhighqualitybricksforthecementindustry.
2000-TheCompanysignedaMOUformanagement,operationand
maintenanceoftheexisting1.2millionTPAcementplantatYanbufora
periodof3yearscommencingfromMarch1996,withYanbucement
company.
2009-Tatagrouphasexitedfromthecompanybydivestingtheir14%
equitystakeinfavorofGujaratAmbujagroup.
2013-ACCacquires100percentofthefinancialequityofEncoreCements
&AdditivesPrivateLimitedwhichisaslaggrindingplantin
VishakhapatnamincoastalAndhraPradesh.Thiscompanybecamea
wholly-ownedsubsidiaryofACCinJanuary2010.
ACCentersitsplatinumjubileeyear-thefirstcompanyinthecement
industrytoachievethisstatus.
2015-ACClaunchesM-100gradeconcreteespeciallydesignedforthe
constructionofhighintensitytowers.
.

VISION AND MISSION

VISION: TobeoneofthemostrespectedcompaniesinIndia.
Toberecognizedforchallengingconventionsanddelivering
onourpromises.

MISSION: MaintainourrelationshipoftheIndiancementindustry
throughoutthecontinuousmodernizationandexpansionof
ourmanufacturingfacilitiesandactivities.Tofulfillour
obligationstosocietyspecificallyininareasofintegrated
ruraldevelopmentandinsafeguardingtheenvironment.

KEY PEOPLE
Mr. N. S. Sekhsaria
Chairman

Mr. Paul Hugentobler


DeputyChairman

Mr. Kuldip K Kaura


ChiefExecutiveOfficer(CEO)&
ManagingDirector(MD).

STOCK EXCHANGE LISTING


DETAILS

Acc Limited is listed in India in BSE & NSE.

BSE:500410

NSE:ACC

SHARE PRICE
INFORMATION
BSE: Rs.1626.05(-3.30Decrease)
NSE: Rs. 1625.40(-4.35Decrease)

FACE VALUE:10

CURRENT MARKET CAPITAL: Rs22,357.00cr

Volume
Capacity Utilisation @
78%

Net Sales
Cement

Sales Volumelower by1% YoY&4%

QoQ

Operating Costs
RMX

volumegrowth of9% YoY& lower4%

QoQ

Profitability

Growth/

Projects

SHARE HOLDING PATTERN


Indian Promoters:50.01%
Foreign Promoters:0.29%
Other Promoters:49.70%

SUBSIDIARIES OF ACC LIMITED


Accmineralsourceslimited.
Bulkcementcorporation(India)limited.
Lucyminmatprivatelimited.
Nationallimestonecompanyprivate
limited.

GLOBAL PRESENCE

Bargarh(Odisha)
Chaibasa(Jharkhand)
Chanda(Maharastra)
Damodhar(WestBengal)
Gagal(HimachalPradesh)
Jamul(Chhatisgarh)
Kymore(MadhyaPradesh)
Kudithini(Karnataka)
Lakheri(Rajasthan)
Madukkri(Tamilnadu)
Sindri(Jharkhand)
Thondebhavi(Karnataka)
Tikaria(UtterPradesh)
Vizag(Hydrabad)
Wadic(Karnataka)
NewWadiPlant(Karnataka)

MAJOR
COMPETITORS
`

PRODUCTS
ACC manufactures the following types of cement, in addition to which,
it provides Bulk Cement and Ready Mix Concrete.

Ordinary Portland Cements


43GradeCement(OPC43Grade)(CommonusedCement)
53GradeCement(Itisproducedfromhighqualityclinkergroundwith
highpuritygypsum.)

Blended Cements
Fly-ashbasedPortlandPozzolanaCement.
PortlandSlagCement.

Services
ACC is essentially a peoples brand of cement with more
than 80 per cent of sales made through an extensive
dealer network that covers every state in India. . Its
customer base represents the masses of India individual homebuilders in small towns, rural and semiurban India.
ACC reaches out to its customers, home builders and engineers in
the following ways:
ACC Help Centres: Forpersonalguidanceontherightconstruction
practices.
ACC Help Literature: Easy-to-understandconstructionguides.
ACC Help Vans : Mobilehelpservices.Ourengineersinvansassist
youatyoursite.
www.acchelp.in :aninteractivewebsiteforallyourconstruction
relatedquestions.
For more information on these services:- SMSACCHELPto
575758orsendusanemailaddressedtoacchelp@acclimited.com

FINANCIAL STATEMENT OF ACC


Q2

Rs.in crore

Particulars

H1
Varianc

Varianc

2015

2016

2015

2016

Operating EBITDA

335

458

37%

945

891

11%

Other income

22

22

0%

82

64

22%

Depreciation

168

144

15%

341

289

15%

PBIT

189

336

78%

686

665

3%

Interest

13

17

30%

36

33

9%

PBT before exceptional items

175

318

82%

650

632

3%

(164)

175

318

82%

485

Exceptional item
PBT
PBT Margin

6%

11%500 bps

8%

0
632
11%

30%
300
bps

Tax

46

81

75%

125

172

38%

PAT

129

237

84%

361

461

28%
200
bps

PAT Margin
Minority interest & Share of profit
of

4%

8%400 bps

6%

8%

59%

41%

133

239

79%

370

466

26%

associates
PAT after minority interest &
share of profit
of associates

Consolidated Financial Results (1/2)


Particulars

Net Sales
Other Operating Income
Cost of materials consumed
Purchase of stockintrade
Changes in inventories of finished goods,

Q2

H1

Varianc
2015
2015
2016
e
2961
2870
3%
5847
54
47
12%
249 *
457
410
10%
921
28
23
17%
64

2016

varianc
e

5797
111
846
45

1%
56%
8%
30%

18

64

257%

55

72

231%

workinprogress
Employee benefits expenses
Power & Fuel
Freight & Forwarding expenses
Other Expenses

201
611
734
632

190
523
649
600

5%
14%
12%
5%

372
1233
1414
1202

382
1091
1377
1204

3%
12%
3%
0%

Operating EBITDA

335

458

945

891

6%

11.3%

15.9%

37%
460
bps

16.2%

15.4%

80 bps

335

458

37%

805**

891

11%

Operating EBITDA Margin


LFL Operating EBITDA

* Other operating income for the period ended Jun 30, 2015 includes Rs 139.74
Crore being accrual of sales tax incentives pertaining to the period
August 2005 to March 2015
** Excludes Sales tax incentive Rs
139.74 Cr
26th
ACC Limited / India

Investor
Presentation

Jul201
6

Quarterly Trend Financials Consolidated

Cement Volume [MT]

Q215

Op EBITDA [Rs Cr]

6.2

Q215

335

Q315

313

Q415

280

Net Sales [Rs. Cr]

Q315

5.6

Q415

6.0

Q116

Q215

2961

Q315

2740

6.4

Q216

Q116

6.1

Q216
Q415

11.3

Q315

11.4

Q415

9.8

EPS

Q116

Q216

Q216

2927

Q215

Q315

14.8

15.9

7.1

6.1

2870
Q415

Q116

458

2846

Op EBITDA Margin [%]

Q215

434

Q116

Q216

5.5
12.1

12.7

Financial Position [RCr]


Consolidated Particular
30.06.16 31.12
.15
8,639
3
471
9,113
7,673
13
1,386
83
-42
9,113
ACC Limited / India

Standalone
30.06.16

8,421 Shareholders Funds


3 Minority interest
- Short term
borrowing
470 Deferred Tax
Liabilities
8,894 Sources of Fund
7,711 Net Block
16 Goodwill on
Consolidation
Investments:
1,328
Liquid
investments
87
Longterm
investments
-248 Net Working Capital
8,894 Total Application of
Funds
Investor
Presentation

8,665
35

8,443
36

470

469

9,170
7,644
-

8,948
7,656
-

1,357

1,301

275

275

-106
9,170

-284
8,94812
26th Jul2016

CEMENT BUSINESS - PERFORMANCE

Production - million
tonnes
Sales Volume - million
tonnes
Net Sale Value (Rs,crore)
-1.8

2015

2014

23.84

24.24

23.62
10,652.60

Operating EBITDA
(crore)

1,482.88

Operating EBITDA

13.92

Margin (%)

Change %

24.21

-1.7
-2.4

10,842.82
1,473.13
13.59

0.7

CONTD.
NET INCOME,EXPENSES & PROFIT IN Cr.(Rs)

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AWARDS OF ACC LIMITED


National Award forExcellenceinWaterManagementby
ConfederationofIndianIndustry(CII)
Outstanding Corporate Vision, Triple Impact - Business
Performance Social & Environmental Action and
Globalization for 2009-10 from FederationofIndian
ChambersofCommerceandIndustry.
Asia Pacific Entrepreneurship Award intwocategories,
GreenLeadershipandCommunityEngagementbyEnterprise
Asia.
Indira Priyadarshini Vrikshamitra Award --- byTheMinistry
ofEnvironmentandForestsfor"extraordinarywork"carried
outintheareaofafforestation.

CORPORATE SOCIAL
RESPONSIBILTY
Today
we define Corporate Social Responsibility as the way a company

balances its economic, social and environmental objectives while


addressing stakeholder expectations and enhancing shareholder value.
Corporate Social Responsibility Policy:-Thecompanysearliestinitiatives
incommunitydevelopmentdatebacktothe1940'sinavillageontheoutskirtsof
MumbaiwhilethefirstformalVillageWelfareSchemewaslaunchedin1952.The
communitylivingaroundmanyofourfactoriescomprisestheweakestsections
ofruralandtribalIndiawithnoaccesstobasicamenities.
Community & Rural Welfare:-Ourcommunitydevelopmentactivitiesrevolve
aroundtheunder-privilegedcommunitythatlivesintheimmediatevicinityofour
cementplantsandisthusmoredependentonus.
Education:-ACCschoolsmaintainhighstandardsandareopentoother
childrenofthevicinity.
Healthcare:-Eachfactoryhasamedicalcenterwithfull-fledgeddoctorsandthe
latestofbasicequipment.
GlobalConcept:-ACCLimitedisasignatorytotheUnitedNationsGlobal
Compact.WearecommittedtothetenprinciplesoftheCompactwhichfoster
bettercorporateresponsibilityintheareasofhumanrights,labour,environment
andanti-corruption

Latest Development of ACC


Ambuja-Holcim-ACC restructuring may
not be so bad after all
oAmergerofACCwithAmbujaCementswouldhavecauseda78
percentdilutioninAmbujasequitybase,withoutaddingmuchtothe
combinedentitysearningspershare.
oItwouldhavenecessitatedclearancefromtheCompetition
CommissionofIndia,whichcouldhavedelayedtheprocess.The
unsaidparthereisthatthecementindustryandtheCCIhavebeenat
loggerheadsforawhileonthethornyissueofcartelization.
oItwouldnothavehelpedHolcimautomaticallyraiseitsstakeinthe
combinedentityto60percent,ifthatwastheleveltheparentcompany
waslookingfor.
oThekeyhereistheRs900croreinsavingsthatHolcimclaimsthe
proposedrecastwillhelpachievebywayofsynergiesbetween
AmbujaCementsandACC.

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