SHREECEMNSE19 October 2019

SHREE CEMENT LIMITED has informed the Exchange regarding Investor Presentation In terms of the provisions of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclo...

SHREE CEMENT LIMITED

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SHREE CEMENT LTD.

. BANGUR NAGAR, POST BOX NO.33, BEAWAR 305 901, RAJASTHAN, INDIA ~:\-J 60S';"

Regd. OffIce:

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: L26943RJ1979PLC001935 : 01462228101-6

CIN No. Phone Toll Free : 1800 180600316004 Fax : 014622281171228119 E-Mail: shreebwr@shreecementltd.com Website : www.shreecement.in

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SCLlBWRISE/2019-20 19th October, 2019

FAX NO. 022 - 26598237 126598238

FAX NO. 022-22722041 122722061

National Stock Exchange of India Limited Listing Department Exchange Plaza, Bandra Kurla Complex Bandra (East) Mumbai 400 051 Scrip code: SHREECEM EQ

BSE Limited Department of Corporate Services Floor 25, Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400 001 Scrip code: 500387

Dear Sir I Madam,

Subject: Corporate presentation of our Company

In terms of the provisions of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("SEBI Listing Regulations"), please find attached the corporate presentation of our Company. The presentation shall also be made available on our website.

We request you to take the above on record and that the same be treated as compliance under the applicable regulation(s) under the SEBI Listing Regulations.

Thanking you,

Yours fa'thfully, For Shr Cement Limited

Company Secretary Encl: Corporate Presentation

JAIPUR OFFICE: SB-187, Bapu Nagar, Opp. Rajasthan University, JLN Marg, Jaipur-302 015 Phone: 0141 4241200,4241204, Fax: 0141 4241219 NEW DELHI OFFICE: 122-123, Hans ~hawan, 1, Bahadurshah Zafar Marg, New Delhi 110002 Phone: 01123370828,23379218,23370776, Fax: 011 23370499 CORP. OFFICE: 21, Strand Road, Kolkata 700 001 Phone: 033-223096014 Fax: 033 22434226

Shree Cement Corporate Presentation

Disclaimer

This presentation has been prepared for general information purposes in respect of Shree Cement Limited (“Company”) together with its subsidiaries (together, with the Company, the “Group”) only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation, directly or indirectly, in any manner, or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefor. This presentation does not solicit any action based on the material contained herein. Nothing in this presentation is intended by the Group to be construed as legal, accounting or tax advice.

This presentation has not been approved and will not or may not be reviewed or approved by any statutory or regulatory authority in India .

This presentation contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Group and/ or the industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words including, without limitation “believes”, “expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this presentation are based on numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Neither the Group nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation and are not guarantees of future performance. As a result, the Group expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward looking statements are based. Given these uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. Certain numbers in these presentations and materials have been subject to routine rounding off and accordingly figures shown as total in tables and diagrams may not be an arithmetic aggregation of the figures that precede them.

The information contained in these presentations and materials are only current as of the dates specified herein and have not been independently verified. None of the Group, its directors, promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise in connection with this presentation, and makes no representation or warranty, express or implied, for the contents of this presentation including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this presentation or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Past performance is not a guide for future performance. The information contained in this presentation is current, and if not stated otherwise, made as of the date of this presentation. The Group undertakes no obligation to update or revise any information in this presentation as a result of new information, future events or otherwise. Any person/ party intending to provide finance/ invest in the shares/ businesses of the Group shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, and the rules made thereunder, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, or any other applicable law in India.

CRISIL Research, a division of CRISIL Limited (“CRISIL”) has taken due care and caution in preparing the report titled “[Cement Market Assessment]” dated [October 2019] (“CRISIL Report”) based on the information obtained by CRISIL from sources which it considers reliable (“Data”). However, CRISIL does not guarantee the accuracy & adequacy of the Data/ Report and is not responsible to any potential investor, for any errors or omissions or for the results obtained from the use of Data/ Report. This Report is not a recommendation to invest/ disinvest in any entity covered in the Report and no part of this Report should be construed as an expert advice or investment advice or any form of investment banking within the meaning of any law or regulation. CRISIL especially states that it has no liability whatsoever to the third –party subscribers/ third-party users / transmitters/ distributors of this Report. Without limiting the generality of the foregoing, nothing in the Report is to be construed as CRISIL providing or intending to provide any services in jurisdictions where CRISIL does not have the necessary permission and/or registration to carry out its business activities in this regard. Shree Cement Limited will be responsible for ensuring compliances and consequences of non-compliances for use of the Report or part thereof outside India. CRISIL Research operates independently of, and does not have access to information obtained by CRISIL’s Ratings Division / CRISIL Risk and Infrastructure Solutions Ltd (“CRIS”), which may, in their regular operations, obtain information of a confidential nature. The views expressed in this Report are that of CRISIL Research and not of CRISIL’s Ratings Division / CRIS. No part of this Report may be published/reproduced in any form without CRISIL’s prior written approval.

This presentation is strictly confidential and may not be copied or disseminated, reproduced, re-circulated, re-distributed, published or advertised in any media, website or otherwise, in whole or in part, and in any manner or for any purpose. Any unauthorized use, disclosure or public dissemination of information contained herein is prohibited. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. Neither this document nor any part or copy of it may be distributed, directly or indirectly, in the United States. The distribution of this document in certain jurisdictions may be restricted by law and persons in to whose possession this presentation comes should inform themselves about and observe any such restrictions. Accordingly, any persons in possession of the aforesaid should inform themselves about and observe any such restrictions. By reviewing this presentation, you agree to be bound by the foregoing limitations. You further represent and agree that you are located outside the United States and you are permitted under the laws of your jurisdiction to receive this presentation. You may not repackage or sell the presentation. Information contained in a presentation hosted or promoted by the Group is provided “as is” without warranty of any kind, either expressed or implied, including any warranty of fitness for a particular purpose.

This presentation is not an offer to sell or a solicitation of any offer to buy the securities of the Company in the United States or in any other jurisdiction where such offer or sale would be unlawful. Securities may not be offered, sold, resold, pledged, delivered, distributed or transferred, directly or indirectly, in to or within the United States absent registration under the United States Securities Act of 1933, as amended (the “Securities Act”), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. The Company’s securities have not been and will not be registered under the Securities Act.

By accessing this presentation, you accept this disclaimer and any claims arising out of or in connection with this presentation shall be governed by the laws of India and only the courts in Kolkata, India, and no other courts shall have jurisdiction over the same.

Company Overview

Shree Cement – Third Largest Cement Group in India

1 Third Largest Cement Group in India*

More Than 3 Decades of Operations

711 MW of Power Generation^^

Promoted by Bangur Family

1 Higher EBITDA Per Tonne^

1 Lowest Total Cost Per Tonne#

1 8% Market Share*

Snapshot (India Operations)

As of Sep 30th, 2019

As of Mar 31st, 2019

10 Yr CAGR**

1 Third Highest Market Share*

Cement Capacity : 4 Integrated units and 8 Grinding Units

40.4 MTPA 37.9 MTPA

15.33%

Power Capacity : Coal power plants, WHR plants and Renewable power units

711 MW

646 MW

18.38%

2 Market Capitalization : Second largest listed cement company in the country

INR 65,801Cr

INR 65,033Cr

38.66%

• Strong Pan-India distribution network^^ of 20,250 dealers & 746 distributors

• Multi brand marketing strategy with 5 brands

UltraTech 19%

Holcim@ (ACC + Ambuja) 13%

Shree 8%

Dalmia B. 5%

Others 51%

Birla Corp. 3%

*In terms of Installed Cement Capacity as of March 31, 2019 # - Among CRISIL Cement Peer Companies in Fiscal 2019 4 ^ Against Average of EBITDA Per Tonne of CRISIL Cement Peer Companies CRISIL Cement Peer Companies – ACC, Ambuja, Dalmia, J.K Lakshmi, J.K. Cement, Ramco, Ultratech

1 Source – CRISIL Report; 2 Source – NSE ** - 10 Year CAGR from March 31st 2009 – March 31st 2019 ^^ - As of September 30th 2019 @ - LafargeHolcim is the holding company of ACC and Ambuja

Evolution of the Company

Key Milestones

• 1979: Incorporation

• 2008: First Waste Heat Recovery Plant at Beawar

• 1984: IPO and listing on BSE in 1985

• 2011 : First Power Plant at Beawar of 150 MW capacity

• 1985: Installed first cement unit of 0.6 MTPA at Beawar

• 2015: Acquisition of 1.5 MTPA grinding unit at Panipat.

• 1997: Rights Issue

• 2003: First Captive Power Plant of 36 MW at Beawar

• 2018: Acquired controlling stake in Union Cement Company in

UAE with 4 MTPA capacity and set up a 21 MW Wind Power Plant

in Karnataka

37.9

40.4

597

646

711

12.0

17.5

4.1

210

FY06

FY10

FY14

FY19

Current*

FY06

FY10

FY14

FY19

Current*

Cement Capacity (MTPA)

Power Capacity (MW)

Note - Standalone Numbers * - As on September 30th, 2019 ^ - From FY06 – FY19

Region-Wise Capacity of Shree Cement Plants

Plant Location

Region/ Location

Cement Capacity (MTPA)*

Clinker Capacity (MTPA)*

Region

North India

Ras#

Khushkhera

Beawar#

Jobner

Suratgarh

Laksar

Panipat

Rajasthan

Uttarakhand

Harayana

Total Capacity in North India

Central India

Bulandshahr##

Total Capacity in Central India

East India

Baloda Bazar#

Burudih

Aurangabad

Total Capacity in East India

South India

Kodla#

Total Capacity in South India

Total Capacity in India

Chhattisgarh

Jharkhand

Bihar

Karnataka

Overseas

Middle East

Ras Al Khaimah

UAE

Total Current Capacity

Expected Capacity Additions

East India**

West India^

Athagarh

Patas

Expected Capacity by FY21

Odisha

Maharashtra

7.0

3.5

3.6

1.5

5.4

1.8

1.5

24.3

2.0

3.0

2.5

5.6

11.1

3.0

40.4

4.0

44.4

3.0

50.4

15.0

3.0

18.0

5.2

2.4

25.6

3.3

28.9

Cement Capacity*

Central India 4%

South India 7%

UAE 9%

East India 25%

North India 55%

Expected Capacity by FY21

Central India 4%

West India 6%

UAE 8%

South India 6%

East India 28%

North India 48%

* - As of September 30th , 2019. # Integrated Units ** - Expected in Fiscal 20 ^ - Expected in Fiscal 21 ## - Bulandshahr is usually classified under North India by the Company. However, for comparison with CRISIL peer group, re-classified under Central India

Shree Cement has Outperformed the Market Over a Decade

Price Movement of Shree Cement vis-a-vis the Market

Rebased to 100 with a log scale of 10

Prices

100

Shree: 1,653

100 Nifty: 5,084

1,142

Shree: 18,888

226

Nifty: 11,474

30-Sep-09

30-Sep-10

30-Sep-11

30-Sep-12

30-Sep-13

30-Sep-14

30-Sep-15

30-Sep-16

30-Sep-17

30-Sep-18

30-Sep-19

Nifty

Shree

Price Performance^

Shree (Absolute Returns)

Nifty (Absolute Returns)

Shree Cement (CAGR)

Nifty (CAGR)

10 Year

1,042.5%

125.7%

27.6%

8.5%

Shareholding Pattern*

Mutual Funds 6.1%

FPIs 11.9%

FI & IC 2.4%

5 Year

124.9%

44.1%

17.6%

7.6%

1 Year

11.8%

5.0%

11.8%

5.0%

Non-Institutional 14.8%

Promoter Group 64.8%

^Source: NSE, Reference Period September 30th , 2009 – September 30th 2019 * Shareholding Pattern Data - As on September 30th , 2019 FI & IC – Financial Institutions & Insurance Companies FPI – Foreign Portfolio Investors

Industry Overview

Strong Fundamentals to Drive India’s Cement Demand

India is the second largest producer* of cement...

...and has a low per capita cement consumption*

Others 26%

Brazil 1%

Russia 1%

Turkey 2%

Vietnam 2%

USA^ 2%

India 8%

(In Kg)

1,650 – 1,750

World Avg. 500 - 550

China 58%

800 - 850

700 - 750

300 - 350

200 - 250

China

Vietnam Turkey

Russia

USA

India

Brazil

~4.1 billion metric tonnes of cement production in the world (CY18)

...along with rapid urbanization...

(Population in Million#)

26%

846

629

218

FY92

28%

1,029

743

286

FY02

31%

1,211

833

377

FY12

34%

1,343

891

451

FY19E

Per Capita Consumption

...and growth in Real GDP

(INR Trillion)

6.4%

7.4%

8.0%

8.2%

7.2%

6.8%

6.3%

105

114

123

132

141

150

FY14

FY15

FY16

FY17

FY18

FY19E

FY20P

Urban

Rural

Urbanization

Real GDP

Growth (%)

Rapid economic growth, fast urbanisation and low per capita cement consumption presents strong growth potential for Cement in India

Source – CRISIL Report * - Data for India is for FY18 and data for other countries is for CY18 ^ - US includes Puerto Rico

# - Total Figures are Rounded Off

Demand - Supply Imbalance Leading to Higher Capacity Utilizations

Growth in Cement Demand

Growth in Capacity Addition*

(MTPA)

274

299

335

351

376

457

475

496

522

544

FY17

FY18 Total Cement Demand

FY19

FY20E FY21E Incremental Demand

FY17

FY18

FY19

FY20E

FY21E

Installed Cement Capacity

Capacity Addition

Increase in Capacity Utilization

Infrastructure Spending to Push Future Cement Demand at a Faster Rate

70%

72%

65%

63%

FY17

FY18

FY19

FY20E

FY21E

Capacity Utilisation

FY 19

FY 24

Commercial & Industrial Investments ~15%

Infrastructure 23-25%

Housing 60-65%

Commercial & Industrial Investments 12-15%

Infrastructure 24-27%

Housing 58-63%

Infrastructure

Housing

Commercial & Industrial

Cement Demand Drivers

Roads, Metros, DFC, Smart Cities, Water & Irrigation

Rising urbanization, Affordable Housing Housing For All (Urban and Rural)

Office Spaces, Hotels, Hospitals, Educational Institutes and Industrial Construction Projects.

Source – CRISIL Report * - Total Figures are Rounded Off

Infrastructure : Roads, Metros, DFC, Smart Cities, Water & Irrigation

Region-Wise Demand and Supply Dynamics

REGION (% Market Share*)

NORTH 21%

CENTRAL 13%

Capacity (MTPA)*

102

Market Share of Top 5 Players#

77%

Demand (MTPA)

55%

WEST 14%

56%

EAST 18%

64%

SOUTH 34%

PAN INDIA 100%

171

42%

496

48%

335

12%

70%

128

6-7%

73%

6-7%

74%

19.2

5.5-6.5%

82%

9-11%

7.5-8.5%

13-15%

18-20%

82%

29.4

6-8%

81%

72%

16.6

5-7%

76%

75%

44.8

7-9%

75%

59%

17.9

4-6%

62%

2018-19

2020-24P

Drivers for long-term demand

Growth

Capacity Utilisation

Capacity Addition (MTPA)

Demand Growth**

Capacity Utilization^

Housing

Infra- structure

Commercial / Industrial

Range Bound Growth Moderate Growth High Growth ** - Demand Growth is the CAGR for FY19-24

Source – CRISIL Report *In terms of Installed Cement Capacity as of March 31, 2019 ^ - Average Capacity Utilization for FY20-24 #Top 5 players region-wise except for Central Region (top 4 available as per CRISIL report considered)

Shree Cement – Key Strengths

Key Strengths

Third largest cement group in India with leadership position in North India

Strategically located cement plants with proximity to raw materials and principal markets

Proven track record of project execution – efficient capital costs and timely execution

Cost leadership driven by efficient operating parameters and low cost WHRP leading to a high EBITDA per tonne

Multi-brand marketing strategy with an extensive dealer and distribution network

Strong financial profile, AAA credit rating and net-cash position*

Experienced promoters supported by qualified and a professional Board

Source – CRISIL Report * - As of September 30th 2019

Third Largest Cement Group in India With Leadership Position in the North

(MTPA)

94.8

Third Largest Group in Terms of Capacity*

All India Capacity* : 496 MTPA

63.1

37.9

26.5

16.7

15.6

15.4

12.5

10.5

Ultratech

Holcim (ACC + Ambuja)

Shree

Dalmia

Ramco

India

Birla Corp.

JK Lakshmi

Market Leader in the North in Terms of Capacity*

4th Largest Cement Group in the East in Terms of Capacity*

(MTPA)

Market Share of 102 MTPA

(MTPA)

Market Share of 90 MTPA

24.3

20-25

15-19

7-9

6-8

Shree Ultratech Holcim (ACC + Ambuja)

JK Lakshmi

Ultratech 23%

JK 7%

JK Lakshmi 7%

Others 23%

Holcim (ACC + Ambuja) 16%

Source – CRISIL report LafargeHolcim is the holding company of ACC and Ambuja * Installed Capacity as on March 31st , 2019. Company Data related to India operations only

Shree 24%

11-19

10-15 10-15

Holcim (ACC + Ambuja) 18%

Dalmia 17%

8.6

Others 39%

2-4

Birla Corp. 3%

Holcim (ACC + Ambuja)

Dalmia Ultratech Shree

JK Lakshmi

UltraTech 13%

Shree 10%

Strategically Located Plants With Proximity to Markets & Raw Materials

Plants located in eight states and with addition of two new states – Close proximity to customers in North, East, South & West markets

Suratgarh

Khushkhera

Panipat

Jobner Beawar

Ras

Patas^

Split Grinding Units

Integrated Plant Sites

Upcoming Plants

Laksar

Bulandshahr

Aurangabad

Burudih

Baloda Bazaar

Athagarh*

Kodla

Map not to Scale. * - Expected in Fiscal 20 ^ - Expected in Fiscal 21

Split Grinding Units Strategy

• Facilities strategically located in close proximity to raw material sources and principal markets with extensive logistics infrastructure

• Split grinding units provide significant logistics

management and cost benefits, allowing us to price our products in efficient manner

Robust Transportation

• Dedicated railway sidings at Beawar, Ras and

Burudih

• Access to Indian Railways freight terminal at Raipur located near Baloda Bazar facility

• A mechanized clinker wagon loading system at

Ras facility, which allows us to directly load clinker in the wagons using telescopic chutes

Raw Material Linkages

• Captive Limestone Pit Head mines with long term leases at Beawar, Ras, Baloda Bazaar and Kodla

• Majority of Gypsum requirement met through

synthetic Gypsum produced at Beawar and Ras • Coal linkage from Coal India for Baloda Bazaar

Facility

Proven Track Record -– Efficient Capital Costs & Timely Project Execution

Implementation Ahead of Schedule

Expected Commissioning

Actual Commissioning

Months Ahead of Schedule

2 Months

1 Month

4 Months

6 Months

On Schedule

Grinding Unit at Bulandshahr

Expansion of Grinding Unit Capacity at Aurangabad

Grinding Unit at Suratgarh

Cement Section of the Integrated Plant at Kodla

Expansion of Grinding Unit Capacity at Seraikela- Burudih

Dec-15 Oct-15

Mar-18

Feb-18

Jun-18

Feb-18

Dec-18

Jun-18

Jun-19

Lower Average Capex Per Tonne vs Peers (FY2014 to FY2019)

Player

Shree Cement

Industry Peers

Industry Average

Capacity Addition (In MTPA)

24.4

68.5

110.5

CAPEX (INR Cr)

Average CAPEX (INR per tonne)

9,664

40,654

62,812

3,961

5,938

5,683

Source – CRISIL Report CRISIL Cement Peers Companies – ACC, Ambuja, Dalmia, J.K Lakshmi, J.K. Cement, Ramco, Ultratech CRISIL Industry Average –ACC, Ambuja, Birla Corp, Dalmia, Deccan Cements, Heidelberg, India Cements, J.K. Cement, J.K Lakshmi, Mangalam, Orient, Sagar, Sanghi, Shree, Ramco, Ultratech

• Over Three decades of project management

experience

• Efficient deployment of equipment with an in-house

team

• Regular and smaller capacity additions in a modular

manner

• Organic growth mainly funded through internal

accruals

Cost Leadership Driven by Efficient Operating Parameters and Low Cost WHRP

Lower Total Production Cost Amongst Peers

Lower Energy Cost Amongst Peers

(INR / Tonne)

Power and Fuel - (INR/Tonne)

3,794

3,639

2,822

3,984

3,855

4,142

4,009

3,153

3,396

1,066

1,067

975

968

888

812

816

747

567

FY17

FY18

FY19

FY17

FY18

FY19

Shree

Peers

Industry Average

Shree

Peers

Industry Average

Energy Cost is Low Due to Increasing Share of WHRP

Power Mix (FY19)

Capacity MW

Cost (INR / Kwh)

Efficient Power & Heat Consumption (FY19)

In MW

164

126

186

Thermal CPP

WHRP

501

499

503

Merchant^

FY 05

FY 10

FY 15

FY 19

Current*

Coal Fired

WHRP

Renewable

Total

4.26

0.66

3.39

0.18

199

126

300

646

kwh/T of cement

Heat – kcal/T of Clinker

730

719

Power Consumption

Heat Consumption

Shree

Peers

* - As of September 30th , 2019 ^ - Predominantly for merchant sale except for supply to Shree Cement Bulandshahr Unit # - Data for CRISIL Cement Peer Companies excluding J.K Cement

Leading to a High EBITDA Per Tonne

Multi Brand Strategy with a Strong Dealer & Distribution Network

• Strong Brand Equity developed over 3 decades

• Awarded Asia’s Most Trusted Company Award

2018 by International Brand Consulting, USA

• Multi-brands marketing strategy to cater to the

various customer needs

•

In Fiscal 2019, launched two premium cement

brands, ‘Roofon’ and ‘Bangur Power’, Strong Pan-

India distribution network of 20,250 dealers & 746

distributors (as of September 30th 2019)

9 1 Y F –

e c r i

r e t u O

4 1 Y F -

e c r i

• Developed Mobile app - ‘Nirman Mitra’ to connect

with masons, distributors and dealers

r e n n I

Gain in Market Share (Production)

Company

Market Share (FY14 – 19)

Ultratech

16% – 20%

ACC

Ambuja

Shree

Dalmia

9% - 8%

8% - 7%

6% - 7%

2% - 5%

Birla Corp

3% - 4%

India Cements

4% - 4%

20%

16%

3%2%

Ramco

3% - 3%

36%

45%

JK Lakshmi

2% - 3%

J.K Cement

2% - 2%

Others

45% - 36%

Brands

Increasing Share of Trade Segment

Bangur Cement

Premium

Bangur Power

Shree ‘Jung Rodhak’ Cement

Rockstrong

ROOFON

FY18

Non- Trade 30%

FY19

Non- Trade 28%

H1FY20

Non- Trade 18%

Trade 70%

Trade 72%

Trade 82%

Source – CRISIL Report *Trade Segment – Incudes retail customers and wholesale customers including dealers and distributors Non – Trade Segment - Includes government and private infrastructure projects, real estate companies, and ready-mixed concrete stations

Strong Financial Profile

Revenue from Operations

EBITDA

(INR Cr.)

8,594

9,833

11,722

5,657

5,838

2,875

2,862

2,898

1,855

1,240

33.5%

29.1%

24.7%

21.9%

31.8%

FY17

FY18

FY19

H1FY19

H1FY20

FY17

FY18

FY19

H1FY19

H1FY20

Revenue

Net Worth

EBITDA

% EBITDA Margin

AAA Rating & Net Cash Position

(INR Cr.)

8,897

7,698

9,597

10,135

FY17

FY18

FY19

H1FY20

Net Worth

Standalone Numbers * - As on September 30th 2019 ^ - From FY17 – FY19

AAA Credit Rating from CARE & CRISIL

Total Debt* INR 2,296 Cr*

Cash & Cash Equivalents INR 3,347 Cr*

Superior EBITDA Margins vs Peers

Financial Snapshot – Shree Cement

25.3

21.5

22.5

29.4

26.2

109

22.6

FY14

FY15

FY16

FY17

FY18

FY19

Operating Income (INR bn)

EBITDA (INR bn)

EBITDA margin (%)

Financial Snapshot – Peers*

18.2

611

19.6

620

18.8

742

852

524

577

FY14

111

121

140

FY15 Operating Income (INR bn)

FY16

FY17 EBITDA (INR bn)

FY18

FY19

EBITDA margin (%)

17.2

147

Source – CRISIL Report * CRISIL Cement Peers Companies – ACC, Ambuja, Dalmia, J.K Lakshmi, J.K. Cement, Ramco, Ultratech

Experienced Promoters Supported by a Qualified Board

Board of Directors

B.G. Bangur Chairman

• Shri B. G. Bangur is associated with Company since incorporation and brings an extensive experience of

the Industry

• He is Director in The Marwar Textiles (Agency) Pvt. Ltd., Shree Global FZE, UAE, Shree Enterprises

Management Limited, UAE, Shree International Holding Limited, UAE and Union Cement Company, UAE

H.M. Bangur Managing Director

• Shri H. M. Bangur is a Chemical Engineer from IIT, Mumbai and he brings to the Board technical

insights, which are significant to the technical excellence achieved by the Company

• Business Today Magazine has recognized H.M. Bangur as ‘India’s best CEO’ in the cement category in

2019

Prashant Bangur Joint Managing Director

• Shri Prashant Bangur is a post graduate from the Indian School of Business, Hyderabad. He joined

Shree Cement in 2004 and since then has been involved in strategic policy and operational matters of the Company

• He joined the Board of the Company in 2012

P.N. Chhangani Whole Time Director

R.L. Gaggar Independent Director Solicitor

Y.K. Alagh Independent Director Ex-Union Cabinet Minister

O.P. Setia Independent Director Ex-MD SBI

Shreekant Somany Independent Director Industrialist

Nitin Desai Independent Director Economist

S. K. Shelgikar Independent Director Chartered Accountant

Strategy Going Forward

01 Capture Growing Cement Demand

• Northern, central, western, eastern and

southern India is expected to grow at a healthy CAGR* of ~5.5-6.5%, ~6-8%, ~5-7%, ~7-9% & ~4-6% respectively in the next 5 years

• Benefit from the healthy industry growth to

ramp-up our new plants faster and increase overall utilization levels

02 Grow Capacity & Market Share

• Grow inorganically through acquisitions to achieve synergy with existing plants and improve market share

• Grow organically, setting up grinding units at

Odisha and Maharashtra

• Acquire limestone mines in auctions at existing

and new strategic locations

03 Cost Efficiency & Productivity

• Continue to improve cost efficiency by way of integrating recently acquired railway siding terminal, increased reuse of low grade limestone and use of renewable energy (solar and WHRP)

• Optimize the distribution network to improve

inward / outward freight costs

04 Enhance Brand & Distribution Network

• Continue to enhance our existing brands and

introduce new brands as per changing customer needs

•

Introduced premium brands ‘Roofon’ and ‘Bangur Power’

• Strengthen and expand distribution network

* Source – CRISIL Report, Data for FY19-24

Expansion Plans

India Operations

UAE Operations

Project Description, Capacity, Timeline and Estimated Project Cost

Cement Grinding Unit

Athagarh, Odisha

Patas Maharashtra

3.0 MTPA

Fiscal 2020

Fiscal 2021

INR 423 Cr

INR 525 Cr

WHRP

Ras Al Khaimah

16.5 MW

Fiscal 2021

AED 104 Mn

•

Land acquired/purchased.

• Order placed for plant & machinery and

construction in progress

• Clearances obtained as per the laws of UAE and

Emirate of Ras-Al-Khaimah

Status

• Sufficient land is available within the plant premises

• Environment clearances obtained

• Placed major orders for machinery and equipment

Post Expansion The Total Installed capacity in India & UAE for Cement will be 50.4 MTPA and 740.5 MW of Power Generation

In Summary...

 Third largest cement group in India with leadership position in North region

 Cost Leadership Driven by Efficient Operating Parameters and Low Cost WHRP leading to a high

EBITDA per tonne

 Proven track record of project execution at lower Capex per tonne vs peers

 Strong financial profile with net cash position and AAA Credit rating

 Consistent shareholder value creation compared to NIFTY – Shree Cement’s share price increased at a

CAGR of 27.6% during last 10 years

Annexure

P&L Statement – Standalone

Particulars

FY17

FY18

FY19

H1FY20

H1FY19

INR Crore

Sales Volume Cement & Clinker (Million Tonnes)

20.6

22.5

25.9

11.8

12.6

Sales Volume Power (Million Units kwh)

1,658.3

1,196.5

1,678.2

753.9

850.3

Net Revenue from Operations

8,594.3

9,833.1

11,722.0

5,838.1

5,656.5

EBITDA Cement Division

2,356.7

2,458.4

2,471.3

1,705.2

1,013.3

EBITDA Power Division

156.5

14.4

181.6

41.2

81.7

Other Income

Total EBITDA1

Finance Costs

361.8

389.1

245.4

108.9

145.0

2,874.9

2,861.8

2,898.2

1,855.2

1,239.9

129.4

135.3

247.0

139.8

Depreciation & Amortization

1,214.7

899.4

1,391.7

831.0

PAT

1,339.1

1,384.2

951.1

672.1

Cement EBITDA / Tonne2 (INR / Tonne)

1,144.8

1,091.0

955.6

1,448.5

1 EBITDA = Profit before exceptional items and tax + Finance Costs + D&A Expense 2 Cement EBITDA / Tonne = EBITDA / Sales Volume

118.0

635.0

328.8

802.4

P&L Statement – Consolidated

Particulars

FY17

FY18

FY19

H1FY20

H1FY19

INR Crore

Sales Volume Cement & Clinker (Million Tonnes)

20.6

22.5

28.6

13.3

13.5

Sales Volume Power (Million Units kwh)

1,658.3

1,196.5

1,678.2

753.9

850.3

Net Revenue from Operations

8,594.3

9,833.1

12,554.7

6,307.2

5,925.5

EBITDA Cement Division

2,356.6

2,458.3

2,612.1

1,781.6

1,052.2

EBITDA Power Division

156.5

14.4

181.6

41.2

81.7

Other Income

Total EBITDA1

Finance Costs

361.8

389.1

249.8

110.6

145.3

2,874.9

2,861.8

3,043.4

1,933.4

1,279.1

129.4

135.3

247.9

142.1

118.1

Depreciation & Amortization

1,214.7

899.4

1,471.8

883.1

659.7

PAT

1,339.1

1,384.2

1,015.1

695.6

343.1

Cement EBITDA / Tonne2

(INR / Tonne)

1,144.8

1,090.9

913.0

1,337.9

777.1

1 EBITDA = Profit before exceptional items and tax + Finance Costs + D&A Expense 2 Cement EBITDA / Tonne = EBITDA / Sales Volume

Balance Sheet - Standalone

Particulars

FY17

FY18

FY19

H1FY20

INR Crore

Assets

Property, Plant and Equipment

Capital Work in Progress

Total Fixed Assets1

Total Non-Current Assets

Inventories

Trade Receivables

Total Current Assets

Total Assets

Equity and Liabilities

Equity Share Capital

Other Equity

Total Equity

Long Term Borrowings

Total Non-Current Liabilities

Total Current Liabilities

Total Equity and Liabilities

1 Total Fixed Assets include Property, Plant and Equipment; Capital Work in Progress and Intangible Assets

2,586.3

710.4

3,309.6

7,884.0

1,314.5

335.1

3,282.1

3,577.1

1,427.2

5,016.3

9,441.7

1,569.0

459.3

5,700.2

4,465.0

1,121.1

5,596.8

4,633.0

814.7

5,468.8

11,201.6

11,162.9

1,589.1

732.4

3,991.7

1,492.5

823.7

4,711.6

11,166.1

15,141.8

15,193.3

15,874.5

34.8

7,663.3

7,698.1

518.7

1,479.0

1,989.0

34.8

8,862.0

8,896.8

2,208.1

3,277.9

2,967.1

34.8

9,562.6

9,597.4

2,309.0

3,609.2

1,986.7

34.8

10,100.2

10,135.0

1,688.1

3,045.6

2,693.8

11,166.1

15,141.8

15,193.3

15,874.5

Balance Sheet - Consolidated

Particulars

FY17

FY18

FY19

INR Crore

H1FY20

Assets

Property, Plant and Equipment

Capital Work in Progress

Total Fixed Assets1

Total Non-Current Assets

Inventories

Trade Receivables

Total Current Assets

Total Assets

Equity and Liabilities

Equity Share Capital

Other Equity

Non Controlling Interest

Total Equity

Long Term Borrowings

Total Non-Current Liabilities

Total Current Liabilities

Total Equity and Liabilities

1 Total Fixed Assets include Property, Plant and Equipment; Capital Work in Progress and Intangible Assets

2,586.3

710.4

3,309.6

7,883.8

1,314.5

335.1

3,282.2

11,166.0

34.8

7,663.2

7,698.0

518.7

1,479.0

1,989.0

3,577.1

1,427.2

5,016.3

9,441.4

1,569.0

459.3

5,700.3

6,135.2

1,129.5

7,311.1

6,370.9

855.0

7,281.8

10,773.8

10,840.3

1,870.3

1,023.7

4,719.2

1,811.5

1,091.3

5,472.1

15,141.7

15,493.1

16,312.4

34.8

8,861.8

8,896.7

2,208.1

3,277.9

2,967.2

34.8

9,635.9

10,239.4

62.5

9,733.2

2,309.0

3,633.2

2,126.6

63.0

10,337.2

1,688.1

3,139.0

2,836.3

11,166.0

15,141.7

15,493.1

16,312.4

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