Investor s Meet June 16

Investor s Meet June 16

GROWTH CHART CAPACITY & PRODUCTION JKLC* Mn. MT. As on 31 st March 2011 2012 2013 2014 2015 2016 Jun 17(E) Sept 18(E) Clinker Capacity 3.96 4.13 4.29 4.62 6.27 6.27 6.60 6.79 Cement Capacity 4.75 4.75 5.29 6.64 8.30 8.65 10.90 11.50 Production 4.31 4.72 5.00 5.23 5.47 6.88 JKLC CAGR during FY 12 to FY 16 16% *Without considering 1.60 Mn. MT of Udaipur Cement Works Ltd., a 72% subsidiary of JK Lakshmi Cement Ltd. PRODUCTION (Mn. MT) SALES (Mn. MT) Qtr Ended 12 Months Ended Qtr Ended 12 Months Ended 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 2.05 1.44 6.88 5.47 2.16 1.55 7.32 5.96 42 % 26% 39% 23 % 1

Industry Growth Vs JKLC Demand/Despatches Particulars % Growth Apr.11 - Mar.12 Apr.12 - Mar.13 Apr.13 - Mar.14 Apr.14 - Mar.15 Apr.15 - Mar.16 (12M) (12M) (12M) (12M) (12M) All India 6% 5% 3% 4% 5% North + Gujarat Zone 11% 4% - 3% 3% JK Lakshmi Cement - Existing 14% 8% 7% 6% 3% East Zone 5% 5% JK Lakshmi Cement - including East Zone 23% 2

Capacity Utilisation Year (Apr.-Mar.) Particulars Apr.11 - Mar.12 Apr.12 - Mar.13 Apr.13 - Mar.14 Apr.14 - Mar.15 Apr.15 - Mar.16 (12M) (12M) (12M) (12M) (12M) All India 72% 70% 68% 66% 66% North + Gujarat Zone 84% 86% 83% 77% 73% JK Lakshmi Cement - Existing 100% 94% 99% 82% 85% East Zone 80% 76% JK Lakshmi Cement - Durg 69% JK Lakshmi Cement - including East Zone 82% 3

4 Mother Plants Cement (Clinker) - Mn.MT 4.65(4.79) 0.90 1.35 UCWL 1.60(1.20) Udaipur Jaykaypuram Kalol (Grinding Unit) Surat (Grinding Unit) Jharli (Grinding Unit & AAC Block) Durg Odisha (Grinding Unit) 1.30 2.70(2.0) 0.60

Markets J&K Punjab Haryana H.P. (33%) Rajasthan (26%) Delhi W.U.P. & Utt. Gujarat (35%) Madhya Pradesh (5%) W.Bengal (6%) Mumbai (6%) Maharashtra (5%) Odisha (21%) Andhra Pradesh (2%) 5

Region-wise Cement Sales - Sirohi Regions 2012-13 2013-14 2014-15 2015-16 (12M) % sales % sales % sales % sales Rajasthan / MP 23 26 27 26 Gujarat 34 35 36 35 Maharashtra 8 7 8 6 North 35 32 29 33 6

Region-wise Cement Sales - Durg Regions 2015-16 (12M) % sales Chhattisgarh 57 Odisha 21 West Bengal 6 Madhya Pradesh 5 Maharashtra 4 Jharkhand 3 Bihar 2 Others 2 7

Financial Highlights For 3 Months ended 31.03.2016 Sr. Particulars Unit For the IVth Qtr. ended No. 31.03.16 31.03.15 Incr. / Decr. (-) in Figures % 1 Production (Incl. Clinker Sale) Mn. MT 2.05 1.45 0.61 42% 2 Sales Mn. MT 2.16 1.55 0.61 39% 3 Turnover Rs. Mn. 8247 6433 1814 28% 4 Net Sales Rs. Mn. 7351 5782 1569 27% 5 PBIDT (before other Income) Rs. Mn. 859 715 144 20% 6 PBIDT (after other Incom e) Rs. Mn. 1201 892 309 35% 7 Interest Rs. Mn. 495 256 239 94% 8 PBDT Rs. Mn. 706 637 70 11% 9 Depreciation Rs. Mn. 401 270 131 49% 10 PBT (before exceptional items) Rs. Mn. 305 367-61 -17% 11 Exceptional Items Rs. Mn. 0 318-318 -100% 12 PBT Rs. Mn. 305 49 256 523% 13 PAT Rs. Mn. 484 61 423 700% 14 Basic EPS (After Tax) Rs. 4.12 0.51 3.61 708% 15 OPM (On Net Sales) % 12% 12% 0% 8

Financial Highlights For 12 Months ended 31.03.2016 Sr. Particulars Unit For Twelve Months ended No. 31.03.16 31.03.15 Incr. / Decr. (-) in Figures % 1 Production (Incl. Clinker Sale) Mn. MT 6.88 5.47 1.41 26% 2 Sales Mn. MT 7.32 5.96 1.37 23% 3 Turnover Rs. Mn. 29394 25685 3709 14% 4 Net Sales Rs. Mn. 26199 23071 3128 14% 5 PBIDT (before other Income) Rs. Mn. 2701 3495-793 -23% 6 PBIDT (after other Incom e) Rs. Mn. 3304 3777-472 -13% 7 Interest Rs. Mn. 1923 907 1016 112% 8 PBDT Rs. Mn. 1381 2869-1488 -52% 9 Depreciation Rs. Mn. 1629 1119 510 46% 10 PBT (before exceptional items) Rs. Mn. -248 1750-1998 -114% 11 Exceptional Items Rs. Mn. 107 633-525 -83% 12 PBT Rs. Mn. -355 1118-1473 -132% 13 PAT Rs. Mn. 63 956-893 -93% 14 Basic EPS (After Tax) Rs. 0.53 8.12-7.59-93% 15 OPM (On Net Sales) % 10% 15% -5% 9

Balance Sheet Sl. Particulars Rs.Mn. No. As at As at 31.03.2016 31.03.2015 A EQUITY &LIABILITIES 1 Share Capital 589 589 2 Reserves and Surplus 12746 12719 Net Worth (1 + 2 ) 13334 13307 3 Loans a Long-Term 16201 16661 b Short-Term 2978 2331 Sub-Total (3) 19179 18992 4 Deferred Tax Liabilities (net) 867 1284 5 Current Liabilities 9040 7820 Total (A) 42419 41404 B ASSETS 1 Net Fixed Assets 30668 29440 2 Investments - Non Current 1663 1688 3 - Current 2343 2540 4 Current Assets 7746 7736 Total (B) 42419 41404 10

80 Major Performance Indicators Power Consumption (Kwh./ MT of cement) 79 79 78 75 73 74 75 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 11

Major Performance Indicators Fuel Consumption (K.Cal./Kg.of clinker) 762 763 746 742 738 726 704 703 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 12

Comparative Power Consumption 2014-15 Kwh/MT of Cement 74 74 84 80 80 79 JKLC Shree JK Cement Ambuja ACC Ultra Tech 13

KEY FINANCIAL RATIOS Particulars Unit 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Operating Profit Margin ( net of Excise) % 14 19 21 15 15 10 Interest Coverage Times 4 5 6 4 4 2 Total Debt / Equity Times 0.97 0.96 1.09 1.27 1.43 1.44 Net Debt / Equity Times 0.37 0.48 0.77 0.97 1.22 1.25 EV per Ton (1US$ = Rs. 67) US $/MT 30 36 63 78 126 85 14

Sl No. Split Grinding Unit - Surat Particulars Rs. Mn. 1 Capacity (Mn. MT) 1.35 2 Project Cost 2,300 3 Debt 1,600 4 Internal Accruals 700 5 Debt : Equity Ratio 2.29 6 CAPEX upto Mar.'16 1,760 Expected Commissioning - July'16 - Sept'16 15

Split Grinding Unit - Odisha Sl No. Particulars Rs. Mn. 1 Capacity (Mn. MT) 0.60 2 Project Cost 1,250 3 Debt 750 4 Internal Accruals 500 5 Debt : Equity Ratio 1.50 6 CAPEX upto Mar.'16 350 Expected Commissioning - 16 Sept'17

Durg Project Rs. Mn. Sl No. Particulars Phase -I Phase -II Phase -III Total Durg Durg Odisha 1 Capacity - Clinker (Mn.MT) 1.50 0.50-2.00 2 Capacity - Cement (Mn.MT) 1.80 0.90 0.60 3.30 3 Project Cost 16,000 500 1,250 17,750 4 Debt 11,000-750 11,750 5 Internal Accruals 5,000 500 500 6,000 6 Debt : Equity Ratio 2.20-1.50 1.96 Expected Commissioning - Mar'15 Jun'17 Sept'17 Sept'17 17

Sl No. 7 MW WHR at Durg Particulars Rs. Mn. 1 Capacity (MW) 7 2 Project Cost 900 3 Debt 600 4 Internal Accruals 300 5 Debt : Equity Ratio 2.00 Expected Commissioning - Qtr.ending Sept'17 18

Growth Opportunity - UCWL S.No. Particulars Rs. Mn. 1 Capacity (Mn. MT) 1.60 2 Project Cost - Rs.Mn 7,000 - Rs / MT 4,375 3 Term Loan from Bank/FI's 4,750 4 Internal Accruals (JKLC's 2,250 Contribution Rs. 1500 Mn. 5 Debt : Equity Ratio 2.11 Expected Commissioning - 19 Dec'16

Growth Opportunity - UCWL Revival of M/s Udaipur Cement Works Limited (UCWL) Means of Financing for Revival & Rehabilitation : Means of Finance A.Equity Rs. Mn. 1.Equity/other instruments from JKLC 1500 2. Equity 100 3. Internal Accruals 650 Total Equity 2250 B.Term Loan from Bank/FI s 4750 Total (A+B) 7000 20

Advantages to JKLC from UCWL 1. Land and Limestone Mines are available. 2. Environmental clearances are in place. 3. Major Plants orders released in March-April 14. 4. Can commence operations in about 2 years as compared to 4 to 5 years required for new cement project. To be fully operational by Dec 2016. 5. Investment cost in UCWL will be US $ 70 per MT as against the cost of US $ 120 per MT for a new Green field Cement Plant i.e., about 42% cheaper. 6. The plant has an excellent location, well connected by Road, Rail & Air and is close to the National Highway. 7. The plant is having railway siding easy movements of goods. 21

Advantages of UCWL Revival 8. Plant has the benefit of 50% Sales Tax Incentive of about Rs. 100 /MT. 9. Proximity of the Plant to the Consumption Centres has freight advantage. 10.The accumulated tax losses of UCWL of over Rs.1000 Mn. will result in tax savings in future years. 11. The combined capacities of JKLC & UCWL would increase the market share and consolidation of capacities would give benefits of synergy & logistics. 10. Availability of surplus land for commercial use and further expansion. 11.JKLC s holding is already 72% & Group holding is 75%. 12. Future option for JKLC : Merger/Dilution in Stake for future Growth in JKLC. 22

Shareholding Pattern of JKLC as on 31st March. 2016 I Promoters & Promoter Group 45.94% II Financial Institutions and Banks 32.86% III Public 21.20% Total 100.00% I Total Share Capital (Rs. Cr.) 58.85 II Total No. of Shares (Cr.) (Face Value Rs. 5/- each) 11.77 23

Shareholder s friendly Initiatives 1. Buy-back upto Rs. 975 Mn. at a Cap of Rs. 70/- per share in Feb 2012. Cap of Rs. 70/- per share represents : 57% Premium over 12 months average price. 68% Premium over 6 months average price. 67% Premium over 3 months average price. 66% Premium over 1 months average price. 43% Premium over 15 days average price. The Company Utilised only Rs. 304.7 Mn. for the Buy-back 2. Share Split from - Rs. 10/- per share into 2 Shares of Rs. 5/- each. 24

Shareholder s friendly Initiatives (Contd..) 3. Consistent Dividend Payout Ratio 56% for FY 2016. 30% for FY 2015. 30 % for FY 2014. 20% for FY 2013. 25% for FY 2012. 30% for FY 2011. 25

JKLC among Best Performers on the bourses Annualised Stock Price Return since January 2003 Company Shree cement JK lakshmi Cement Chettinad Cement Birla Corp Mangalam Cement Madras Cement Ambuja Cement Grasim Inds ACC Prism Cement Century Textiles Heidelberg Cement Sensex India Cements Kesoram Industries CAGR return (%) 55.5 39.4 36.8 33.8 30.0 29.6 25.4 24.9 24.9 24.0 22.8 22.3 19.9 18.3 16.5 Source : Capitaline, BSE, BCCI Annual Report/Business Standard 30.05.13 26

Way Forward Setting up WHR plant of 7MW at Durg. Durg plant has reached efficiencies in 4 th Qtr. of 15-16. In 16-17 the Company will have much improved efficiencies. Premium Brands Pro+, Platinum Cement is sold from Durg Plant. Reduction in Borrowing Cost on LT Loans through annual resetting. Purchase of Power at Cheaper rate through Exchange. Negotiation are on for Buying power from private player in Chhattisgarh to save on power & fuel Cost. Pro+ Cement sale to increase in Northern Markets too. The Company has penetration in rural markets. Good monsoon will be much favorable for the Company. 27

Way Forward Increasing volumes through split location Grinding unit and outsourcing Grinding Arrangement. Short term rating continues at A1+ (highest possible rating). JKLC s rating has been upgraded from AA- to AA. 28

JKLC to breach 10 Mn MT by Jun 16. Would become a 11 Mn MT Cement Company during 2016-17. Cement Capacity (including UCWL) to go up from 9.35 Mn. MT in Mar 16 to over 13 Mn. MT during 2017-18. Efficiency Parameters amongst best in Industry. Key Financial Ratios well within accepted Norms. Become PAN India Player (Barring South). 29

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