Professional Documents
Culture Documents
March, 2009
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ACC Ltd 2009 Investor Presentation March 2009
Agenda
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Indian Cement Industry : Overview ACC : An Introduction ACC: Key Financials & Capex Program Conclusion
2 3 4
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ACC Ltd 2009 Investor Presentation March 2009
Technology
Source: Cris Infac, MF Global India Research Institute,2008 ACC Ltd 2009 Investor Presentation
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March 2009
March 2009
250 Qty Million Tons 200 150 100 50 0 2003 2004 2005
145 115 154 125 5% 160 137 8% 8%
11% 9% 9%
12% 10% 8% 6%
179164 207 177
166153
4% 2% 0%
2006
2007
2008
Capacity Installed
Cement Prod.
Consumption Growth
Growth %
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March 2009
India will benefit from a demographic divide: Major driver for cement demand
India Demographic Profile
Age group
80+ 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 -60 60 -40 40
Female Male
-20 20
20
40
60
-60 60
-40 40
-20 20
20
40
60
-3 3
-2 2
-1 1
Mn people
Mn people
Mn people
While EU and even China are aging rapidly, more than half of Indias population is below the age of 30
Source: CII Conference 2002; CSFB Report; UN Population Division; BCG analysis
ACC Ltd 2009 Investor Presentation
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March 2009
March 2009
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ACC Ltd 2009 Investor Presentation March 2009
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ACC Ltd 2009 Investor Presentation March 2009
Agenda
1
Indian Cement Industry : Overview ACC : An Introduction ACC: Key Financials & Capex Program Conclusion
2 3 4
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ACC Ltd 2009 Investor Presentation March 2009
Techn ology
Ethical values
Skills Processes
Received various awards for Environment, Safety, Energy Accredited ISO 9000, 9002, 14001, 18001 to various units
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Investor Presentation
March 2009
Brief history
Established 1936 as a result of a merger of 10 existing companies Long and proud history 1945 - First CSR initiative Rural Welfare Scheme at Sevalia (Gujarat) 1947 - Indias first indigenous cement plant, designed and built by ACC at Chaibasa 1956 - Pioneered bulk cement distribution at Okhla, Delhi 1961 - First production of slag cement in India at above plant 1965 - Central Research Station at Thane opened 1979 - Award of management contract for Yanbu (Saudi Arabia) 1982 - Indias first indigenous 1 mtpa plant at Wadi, built by ACC 1993 Pioneered Commercial Ready Mix Concrete in Mumbai, India 2004 - ACC named Indias only Super Brand in cement sector
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ACC Ltd 2009 Investor Presentation March 2009
Subsidiary companies
Bulk Cement Corporation (India) Limited:
Year of Incorporation: 1992-93 Business: Pioneering of bulk handling facility funded by World Bank. Located at Kalamboli, Mumbai ACCs Stake & [Investment]: 94.65% [ Rs 37.27 Cr]
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ACC Ltd 2009 Investor Presentation March 2009
A New Vision
A Renewed Commitment
To be one of the most respected companies in India; recognized for challenging conventions and delivering on our promises
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ACC Ltd 2009 Investor Presentation March 2009
Resurgence of last 5 years provides a strong base for rapid growth by Resurgence of last 5 years provides a strong base for rapid growth by taking advantage of emerging opportunities taking advantage of emerging opportunities
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ACC Ltd 2009 Investor Presentation March 2009
3 5 4 9 26
25 27 30
18 17
20 19 45 48 46 24 47 31 32 40 41 42 44 43 55 56 57 58 59
Chanda (1 MTPA)
50 51
49 53
52
36
54
37 38 39
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Investor Presentation March 2009
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Source: CMA
March 2009
Production capacity
Capacity as on 31-12-2008 Clinker Capacity MTPA 0.78 0.94 0.79 0 2.87 0.59 2.94 0.93 0.68 0 0 3.62 14.14 Cement Capacity MTPA 0.96 0.87 1.00 0.53 4.40 1.58 2.20 1.50 1.18 0.91 2.31 5.19 22.63
Location Bargarh Chaibasa Chanda Damodhar Gagal Jamul Kymore Lakheri Madukkarai Sindri Tikaria Wadi Total
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ACC Ltd 2009 Investor Presentation March 2009
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March 2009
North, 24%
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ACC Ltd 2009 Investor Presentation March 2009
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March 2009
The Company is managed by professionals and is committed to enhancing shareholder value at all times
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ACC Ltd 2009 Investor Presentation March 2009
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ACC Ltd 2009 Investor Presentation March 2009
91 90
93
2004-05
2005
2006
2007
2008
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Investor Presentation
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Captive Power Generation all Thermal based and meet about 70% of plant power requirement.
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ACC Ltd 2009 Investor Presentation March 2009
Agenda
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Indian Cement Industry : Overview ACC : An Introduction ACC: Key Financials & Capex Program Conclusion
2 3 4
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ACC Ltd 2009 Investor Presentation March 2009
2004-05
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2006
2007
2008
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Investor Presentation
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6.8
5.9 5.2
2004-05
ACC Ltd 2009
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March 2009
7,309
+5%
6,991 5,803 3,221 3,902
1,899
-5%
1,993 1,717 616 715
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ACC Ltd 2009 Investor Presentation March 2009
2000
30
1717
1993 1899
30 25
29
26
1500
19 18
1000
20 15
715 616
500
10 5
0 2004-05
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ACC Ltd 2009 Investor Presentation March 2009
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77 66 65
30 21 15 7 8 20 20
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2007
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ACC Ltd 2009 Investor Presentation March 2009
600 400 200 0 -200 -400 -600 -800 -1,000 -1,200 -1,400
2.3 2.0
437
502
-151 1.0 0.9 0.5 -969 0.3 -0.5 -1,350 -0.5 0.0
2004-05
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(A)+Unused committed credit lines =Rs.1586 crores Debt Summary Fixed To floating 100% Loan 73%
5 years NIL
Yearly renewal
Number of Counterparties 14 Rating Summary CRISIL AAA stable AAA Stable P1+ FITCH AAA stable AAA stable F1+ A1+ 41
March 2009
ICRA
Investor Presentation
East
Capacity Additions Year [MTPA] 2007 2008 0.22 2009 4.95 2010 3.00
With the projects at hand, the total capacity would be enhanced to ~ 30.58 Mtpa by the end of 2010 and would allow the Company to strengthen its presence in strategic markets
ACC Ltd 2009 Investor Presentation
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March 2009
Year
CPP capacity to enhance companys reliance on internal power generation and contribute to reduced costs
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ACC Ltd 2009 Investor Presentation March 2009
Agenda
1
Indian Cement Industry : Overview ACC : An Introduction ACC: Key Financials & Capex Program Conclusion
2 3 4
44
ACC Ltd 2009 Investor Presentation March 2009
Conclusions
The cement industry is attractive even during recessionary periods, cement demand has historically held up well and recovered quickly ACC is well positioned due to its balanced geographical diversification ACC with its strong balance sheet has a: Management team with a long standing track record in successfully managing through rough times Strong liquidity Low leverage with balanced maturity profile Limited short-term refinancing needs
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ACC Ltd 2009 Investor Presentation March 2009
Conclusions The rural markets offer unique opportunities but require: Strong customer focus and understanding of local requirements Brand recognition and brand loyalty Value proposition for low-cost housing Stimulus packages will provide the basis for building material demand over the next two to three years
Disclaimer
Cautionary statement regarding forward looking statements This presentation may contain certain forward-looking statements relating to the Companys future business, developments and economic performance Such statements may be subject to a number of risks, uncertainties and other important factors, such as but not limited to (1) competitive pressures; (2) legislative and regulatory developments;(3) global, macroeconomic and political trends;(4) fluctuations in currency exchange rates and general Financial market conditions;(5) delay or inability in obtaining approvals from authorities;(6) technical developments;(7) litigation;(8)adverse publicity and new coverage, which could cause actual developments and results to differ materially from the statements made in this presentation. ACC assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise
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ACC Ltd 2009 Investor Presentation March 2009
Contact information
Sunil Nayak Krishnamurthy Shankar Investor Relations Phone: 91 22 66654485 Phone: 91 22 66317419 Fax: 91 22 66317421 www.acclimited.com
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ACC Ltd 2009 Investor Presentation March 2009