Performance Review Q2’2010 & H1’2010

J l 22
July 22, 2010

ACC Limited / India Investor’s Presentation 22nd July’2010

 Financial Results – ACC – Standalone (Rs. Crores)

Particulars Q2 H1
2009 2010 change 2009 2010 change
Net Sales 2081 2021 -3% 4136 4123 -
Other Op. Income 39 42 8% 65 76 17%
Raw Materials -228 -283 -24% -434 -531 -22%
Employee Cost -97 -106 -9% -176 -196 -11%
Power & Fuel -374 -393 -5% -785 -786 -
Freight Outwards -255 -270 -6% -533 -545 -2%
Others -393 -417 -6% -826 -890 -8%
Operating EBITDA 773 594 -23% 1447 1251 -14%
Other income 18 18 - 42 45 7%
Depreciation -79 -96 -22% -157 -190 -21%
PBIT 712 516 -28% 1332 1106 -17%
Interest -16 -14 13% -53 -27 49%
PBT 696 502 -28% 1279 1079 -16%
Tax -211 -143 32% -389 -315 19%
PAT 485 359 -26% 890 764 2
-14%
ACC Limited / India Investor’s Presentation 22nd July’2010
EBITDA [Rs/T] lower by ~ 23% on Y-o-Y & 9% on
Q-o-Q basis.
INCOME STATEMENT [Rs/T]

(Rs/Ton)
Q2'10 Q2'09 YoY (%) Q1'10 QoQ (%)
Net Realization 3,809 3,813 0 3,731 2
Expenditure
Raw Material 533 418 28 440 21
Employee Cost 200 177 13 159 26
Power & Fuel 742 685 8 697 6
Freight Outward 509 467 9 489 4
Purchase of Cement 56 45 24 47 19
p
Other Expenditure 680 605 12 696 -2
Total Cost 2,720 2,397 13 2,528 8
EBITDA 1,089 1,416 -23 1,203 -9

ACC Limited / India Investor’s Presentation 22nd July’2010

Cement Volume in Q2 & H1 is down by 3%
Sales Volume [MT] – Q2’09 vs. Q2’10 and H1’09 vs. H1’10

Q2 H1

-3%
-3%
60 54 53
3 150
112 109
40 100

20 50

0 0
2009 2010 2009 2010
Reasons

Wagon / Truck shortages, Fly ash availability, water shortages & power restrictions.

ACC Limited / India Investor’s Presentation 22nd July’2010

Due to marginal reduction in volume.
Net Sales [Rs Cr] – Q2’09 vs. Q2’10 and H1’09 vs. H1’10

Q2 H1

-3% -0.3%

2,500 2,081 5,000 4,136

2,021 4,123
2,000 4,000
1 500
1,500 3 000
3,000
1,000 2,000
500 1,000
0 0
2009 2010 2009 2010

ACC Limited / India Investor’s Presentation 22nd July’2010

Substantial increase in slag & fly ash prices pushed
up raw material cost.
Raw Material Costs [Rs Cr] – Q2’09 vs. Q2’10 and H1’09 vs. H1’10

Q2 H1
+24% +22%

300 283 600 531

228 434
200 400

100 200

0 0
2009 2010 2009 2010

ACC Limited / India Investor’s Presentation 22nd July’2010

Employee Cost increased by 10% in Q2 & 11% in
H1
Employee Costs [Rs Cr] – Q2’09 vs. Q2’10 and H1’09 vs. H1’10

Q2 H1
+11%

+10%
200 196
150 176
97 106 150
100
100
50
50
0 0
2009 2010 2009 2010

ACC Limited / India Investor’s Presentation 22nd July’2010

Hardening of coal prices, increase in purchased power tariff
was partially offset by 8% higher CPP generation in Q2, 2010
Power & Fuel Costs [Rs Cr] – Q2’09 vs. Q2’10 and H1’09 vs. H1’10

Q2 H1
+5% +0.1%

374 393 785 786

400 800
300 600
200 400
100 200
0 0
2009 2010 2009 2010

ACC Limited / India Investor’s Presentation 22nd July’2010

Higher diesel prices & increase in railway freight
resulted in freight cost going up.
Freight Costs on cement [Rs Cr] – Q2’09 vs. Q2’10 and H1’09 vs. H1’10

Q2 H1

+6% +2%

300 255 270 600 532 545

200 400

100 200

0 0
2009 2010 2009 2010

ACC Limited / India Investor’s Presentation 22nd July’2010

Other Expenditure in Q2 & H1 is up
Other Expenditures [Rs Cr] – Q2’09 vs. Q2’10 and H1’09 vs. H1’10

Q2 H1

+16% +17%

500 434 1,000 849

400 373 800 728
300 600
200 400
100 200
0 0
2009 2010 2009 2010

Reasons
Other expenditure have increased due to increase in royalty, packing material, repairs
and excise duty (net) etc.

10

ACC Limited / India Investor’s Presentation 22nd July’2010

 Balance Sheet as at 30.06.2010

(Amount in Rs. Crore)

Liabilities 30 06 2009
30.06.2009 30 06 2010
30.06.2010 Change Assets 30 06 2009
30.06.2009 30 06 2010
30.06.2010 Change

Share Capital 188 188 - Fixed Assets 5597 6610 1013

Reserves 5411 6374 963 Investments 1068 1387 319

Loans 483 517 34 Current assets 2502 2342 -160

CL & Provisions 2697 2830 133

Deferred Tax 388 430 42

T t l
Total 9167 10339 1172 T t l
Total 9167 10339 1172

11

ACC Limited / India Investor’s Presentation 22nd July’2010

 Key Ratios – ACC Standalone
Key Ratios
Op. EBITDA Margin [%] OP. EBITDA [Rs Cr] PBT Margin [%]
37 35
2,000 29 30 40 40 33 31
25 26
1,000 773 594 20 20
1,447 1,251
0 0 0
Q2’09
Q2 09 Q2’10
Q2 10 H1’09
H1 09 H1’10
H1 10 Q2’09
Q2 09 Q2’10
Q2 10 H1’09
H1 09 H1’10
H1 10

PAT Margin [%] EPS [Per Share]

47
40 50 41
23 22 19 26
20 18 19

0 0
Q2’09 Q2’10 H1’09 H1’10 Q2’09 Q2’10 H1’09 H1’10

ROE [%] *

20 16
12
10
0
H1’09 H1’10 * Figures are of six months, not annualised 12

ACC Limited / India Investor’s Presentation 22nd July’2010

Disclaimer
Cautionary statement regarding forward looking statements

This p
presentation may
y contain certain forward-looking
g statements relating
g to
the Company’s future business, developments and economic performance

Such statements mayy be subject j 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
13

ACC Limited / India Investor’s Presentation 22nd July’2010

Contact information

Sunil Nayak
Ajeet Modi
Investor Relations
Phone: +91 22 3302 4321
Phone: +91 22 3302 4388
Fax: 91 22 66317421
www.acclimited.com

14

ACC Limited / India Investor’s Presentation 22nd July’2010

 Strength, Performance, Passion

15

ACC Limited / India Investor’s Presentation 22nd July’2010