Investor’s MeetAugust’14

GROWTH CHART GROWTH CHART –– CAPACITY & PRODUCTION CAPACITY & PRODUCTION –– JKLC*JKLC*Lac. MT.c

2011 2009 2012

Clinker Capacity

2010 2013 2014 2015 (E) 2016 (E)

39.6033.66 41.2536.30 42.90 46.20 61.05 61.05

Cement Capacity 47.4547.45 47.4547.45 52.93 66.43 83.00 100.00

Production 43.0840.20 47.2345.73 49.98 52.32

JKLC CAGR during FY’11 to FY’15 – 20%

PRODUCTION SALES*Without considering 1.4 Mn. MT of Udaipur Cement Works Ltd., a 75% subsidiary of JK Lakshmi Cement Ltd.

(Lac. MT) (Lac. MT)

Qtr Ended

30.06.2014 30.06.2013

12 Months Ended

31.03.2014 31.03.2013

Qtr Ended

30.06.2014 30.06.2013

12 Months Ended

31.03.2014 31.03.2013

13.01 11.43 52.32 49.98 14.44 12.20 56.31 52.77

1

14 % 18% 7 %5%

Industry Growth Vs JKLC –Year (Apr.-Mar.)

Demand/Despatches Particulars

Apr.11 - Mar.12 Apr.12 - Mar.13 Apr.13 - Mar.14(12M) (12M) (12M)

% Growth

(12M) (12M) (12M)

All India 6% 5% 3%

Our Zone 11% 4% -

JK Lakshmi Cement 14% 8% 7%

2

Capacity Capacity UtilisationUtilisation –– Year (Apr.Year (Apr.--Mar.)Mar.)

Particulars Apr.11 - Mar.12 Apr.12 - Mar.13 Apr.13 - Mar.14(12M) (12M) Est. (12M) Est.

All India 72% 74% 72%

Our Zone 84% 84% 80%

JK Lakshmi Cement 100% 94% 99%JK Lakshmi Cement 100% 94% 99%

3

Mother Plants and Supplying MarketsMother Plants and Supplying Markets

Jh li

Jaykaypuram

Jharli(Grinding Unit& AAC Block)

Udaipur

Durg

Kalol(Grinding Unit)

Odi h

Udaipur

Surat(Grinding Unit)

Odisha(Grinding Unit)

4

MarketsMarkets

J&KJ&KJhajjarJhajjar, Split , Split Grinding Unit Grinding Unit of 1 30 of 1 30 MnMn MTMT

HaryanaHaryana

PunjabPunjab H.P.H.P.

of 1.30 of 1.30 MnMn MTMT

UCWL PlantUCWL PlantDelhiW.U.P.W.U.P.

& & Utt.Utt.

DurgDurg, Ongoing Greenfield , Ongoing Greenfield Project of 1.7 Project of 1.7 MnMn MTMT

JaykaypuramJaykaypuram PlantPlant

UCWL PlantUCWL Plant1.4 1.4 MnMn MTMT

RajasthanRajasthan

GujaratGujarat

JaykaypuramJaykaypuram PlantPlant4.65 4.65 MnMn MTMT Cuttack, Split Grinding Cuttack, Split Grinding

Unit of 1 Unit of 1 MnMn MTMTjjKalolKalol, Split Grinding, Split GrindingUnit Unit 0.70 0.70 MnMn MTMT

l dl d

MumbaiMumbaiOdishaOdisha

SuratSurat, Split Grinding , Split Grinding Unit of 0.65 Unit of 0.65 MnMn MTMT

5

Region-wise Cement Sales Region-wise Cement Sales

Regions 2012-13 2013-14Regions 2012-13 2013-14% sales % sales

Rajasthan / MP 23 26

Gujarat 34 35

Maharashtra 8 7

North 35 32

6

Financial Highlights – For the Quarter ended June.14Sr. Particulars Unit

No. 30.06.14 30.06.13

Figures %

Incr. / Decr. (-) in

For the Ist Qtr. ended

Figures %

1 Production (Incl. Clinker Sale) Lac MT 13.01 11.43 1.58 14%

2 Sales Lac MT 14.44 12.20 2.24 18%

3 T R C 669 511 158 31%3 Turnover Rs. Cr. 669 511 158 31%

4 Net Sales Rs. Cr. 600 457 144 31%

5 PBIDT (before other Income) Rs. Cr. 113 70 43 62%

6 PBIDT (after other Income) Rs. Cr. 116 73 43 58%

7 Interest Rs. Cr. 22 20 2 8%

8 PBDT Rs. Cr. 94 53 41 77%

9 Depreciation Rs. Cr. 28 36 -7 -20%

10 PBT (before Exceptional Items) Rs. Cr. 66 18 48 272%

11 Exceptional Items Rs Cr 17 0 17 -11 Exceptional Items Rs. Cr. 17 0 17

12 PBT Rs. Cr. 50 18 32 179%

13 PAT Rs. Cr. 40 16 25 158%

14 B i EPS (Aft T ) R 3 44 1 33 2 11 159%

7

14 Basic EPS (After Tax) Rs. 3.44 1.33 2.11 159%

15 OPM (On Net Sales) % 19% 15% 4%

Financial Highlights – For Twelve Months ended Mar.14Sr. Particulars Unit

No. 31.03.14 31.03.13

Fi %

Incr. / Decr. (-) in

For 12 Months ended

Figures %

1 Production (Incl. Clinker Sale) Lac MT 52.32 49.98 2.34 5%

2 Sales Lac MT 56.31 52.77 3.54 7%

3 Turnover Rs. Cr. 2294 2300 -7 0%

4 Net Sales Rs. Cr. 2057 2055 2 0%

5 PBIDT (before other Income) Rs. Cr. 302 429 -127 -30%

6 PBIDT (after other Income) Rs. Cr. 346 484 -138 -28%

7 Interest Rs. Cr. 77 84 -6 -8%

8 PBDT Rs. Cr. 269 401 -132 -33%

9 Depreciation Rs. Cr. 135 149 -14 -9%

10 PBT (before Exceptional Items) Rs. Cr. 134 252 -118 -47%

10 Exceptional Items Rs Cr 19 16 2 13%10 Exceptional Items Rs. Cr. 19 16 2 13%

11 PBT Rs. Cr. 115 235 -120 -51%

12 PAT Rs. Cr. 93 176 -83 -47%

13 B i EPS (Aft T ) R 7 90 14 88 6 98 47%

8

13 Basic EPS (After Tax) Rs. 7.90 14.88 -6.98 -47%

14 OPM (On Net Sales) % 15% 21% -6%

Major Performance IndicatorsMajor Performance IndicatorsPower Consumption (Kwh./ MT of cement)

8079 79

78

75

737272

2008 09 2009 10 2010 11 2011 12 2012 13 2013 14 2014 15(Qtr I)

9

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15(Qtr.-I)

Major Performance IndicatorsjFuel Consumption (K.Cal./Kg.of clinker)

762 763

746742

738738

726

715

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15(Qtr I)

10

2008 09 2009 10 2010 11 2011 12 2012 13 2013 14 2014 15(Qtr.I)

Comparative Power Consumption 2013Comparative Power Consumption 2013--1414Comparative Power Consumption 2013Comparative Power Consumption 2013 1414

KwhKwh/MT of Cement/MT of Cement

78

86

81 81 81

73

ors

ors

st C

ompe

tito

st C

ompe

tito

wes

tw

est

amon

gsam

ongs

JKLC Shree(2012-13) JK Cement Ambuja ACC Ultra Tech(2012-

Low

Low

11

J ( ) J j (13)

Fuel Cost 2007-14 FUEL COST 2007-14

Rs/MTAVERAGE LANDED COST OF RIL PETCOKE 2007-08 4836AVERAGE LANDED COST OF RIL PETCOKE 2008-09 6425V G N COS O CO 008 09 6 5AVERAGE COST JKLCL's BLENDED FUEL JKLC 08-09 5453AVERAGE COST JKLCL's BLENDED FUEL JKLC 09-10 4472AVERAGE COST JKLCL's BLENDED FUEL JKLC 10-11 6784AVERAGE COST JKLCL' BLENDED FUEL JKLC 11 12 6727AVERAGE COST JKLCL's BLENDED FUEL JKLC 11-12 6727AVERAGE COST JKLCL's BLENDED FUEL JKLC 12-13 6712AVERAGE COST JKLCL's BLENDED FUEL JKLC 13-14 6566

4836

6425

5453

6784 6727 6712 6566

6000

8000

48364472

2000

4000

Rs./T

on

02007-08 2008-09 JKLC 08-09 JKLC 09-10 JKLC 10-11 JKLC 11-12 JKLC 12-13 JKLC 13-14

12

Period

KEY FINANCIAL RATIOS

Particulars Unit 2010-11 2011-12 2012-13 2013-14

Operating Profit M i ( t f E i ) % 14 19 21 15Margin ( net of Excise) % 14 19 21 15

Interest Coverage Times 4 5 6 4Interest Coverage Times 4 5 6 4

Total Debt / Equity Times 0.97 0.96 1.09 1.27Total Debt / Equity Times 0.97 0.96 1.09 1.27

Net Debt / Equity Times 0 37 0 48 0 77 0 97Net Debt / Equity Times 0.37 0.48 0.77 0.97

EV per Ton ( S$ ) US $/MT 34 40 70 88

13

(1US$ = Rs. 60) US $/MT 34 40 70 88

PE ( x ) of some Cement CompaniesPE ( x ) of some Cement CompaniesPE ( x ) of some Cement CompaniesPE ( x ) of some Cement CompaniesSl No. Company CMP EPS

Rs. Trailing PE ( X )on 31.07.14 12 Months

1 JK Lakshmi Cement Ltd. * 247 12.98 19

2 Mangalam Cement Ltd. 218 11.09 20

3 JK Cement Ltd. 389 14.90 26

4 Shree Cement Ltd. 7360 228.07 32

5 ACC Ltd 1395 55 33 255 ACC Ltd. 1395 55.33 25

6 Ambuja Cement Ltd. * * 206 9.14 23

7 Ultratech Cement Ltd. 2422 76.49 32

* Face Value Rs. 5/- each * * Face Value Rs. 2/- each

14

Note : EPS Trailing 12 Months is for the period Jul.13 to Jun.14 except for Mangalam and Shree Cement for which it is for the period Apr.13 to Mar.14 .

Comparative Enterprise Value of some Cement CompaniesComparative Enterprise Value of some Cement CompaniesS.No Particulars Unit JKLC Mangalam JK Shree ACC Ambuja Ultratech

Cement Cement Cement Cement Cement

1 Share Price (As on 31.07.2014) Rs. 247 218 389 7,360 1,395 206 2,422

2 Equity Shares O/s nos. Cr. 11.77 2.67 6.99 3.48 18.80 154.73 27.44

3 Market Capitalization(As on 31.07.2014) Rs. Cr. 2,907 581 2,718 25,640 26,210 31,943 66,446

4 Total Debt O/s Rs. Cr. 1,631 211 1,272 1,288 163 43 5,409

5 Sub Total (3 + 4) Rs. Cr. 4,538 792 3,990 26,928 26,373 31,986 71,854

6 Less Cash Balance Rs. Cr. 375 92 502 2,573 3,037 3,798 3,270

7 Enterprise Value (EV) (5 - 6) Rs. Cr. 4,163 700 3,488 24,356 23,336 28,188 68,585

8 Capacity Lac. MT * 83.00 20.00 79.20 135.00 286.83 273.50 487.50

9 EV per Ton (7 / 8) Rs / MT 5,016 3,498 4,404 18,041 8,136 10,306 14,069

10 EV per Ton US $ 84 58 73 301 136 172 234

15

p(1 US $ = Rs.60)

* including Cement Capacity at Durg of 17 Lac. MT being commissioned in Dec'14.

Demand Supply Scenario – All IndiaQty. Mn. MT

S. 2014-152013 14PARTICULARS 2011 12 2012 13S.No. (Estimated)

1 Opening Capacity 302 327 351 385

2013-14PARTICULARS 2011 - 12 2012-13

2 Capacity Additions during the year 25 24 34 18

3 Capacity at end of the year 327 351 385 403

4 Average Capacity 314 339 368 3944 Average Capacity 314 339 368 394

5 Cement Domestic Demand 222 233 240 252

6 Domestic Demand Growth % 6 5 3 56 Domestic Demand Growth % 6 5 3 5

7 Exports - Cement & Clinker 5 5 5 5

8 Total Despatches 227 238 245 257

9 Surplus 87 101 123 137

10 Surplus as % of Average Capacity 28% 30% 33% 35%

16

11 Capacity Utilisation % 72% 70% 67% 65%

Demand Supply Scenario – Our Zone (North + Gujarat)Qty. Mn. MT

S. 2014-15No (Estimated)

2012-13PARTICULARS 2011 - 12 2012-13No. (Estimated)

1 Opening Capacity 94 97 98 105

2 Capacity Additions during the year 3 1 7 112 Capacity Additions during the year 3 1 7 11

3 Capacity at end of the year 97 98 105 116

4 Average Capacity 95 97 101 1104 Average Capacity 95 97 101 110

5 Cement Domestic Demand 76 79 79 83

6 Domestic Demand Growth % 11 4 0 5

7 Exports - Cement & Clinker 5 4 4 4

8 Total Despatches 80 83 83 87

9 Surplus 15 14 18 23

10 Surplus as % of Average Capacity 16% 14% 18% 21%

17

11 Capacity Utilisation % 84% 86% 82% 79%

Greenfield Cement Plant Greenfield Cement Plant DurgDurg (Chhattisgarh)(Chhattisgarh)Greenfield Cement Plant Greenfield Cement Plant –– DurgDurg (Chhattisgarh)(Chhattisgarh)S.No. Particulars Rs. Cr.

1 Capacity (Mn. MT) 2.70

2 Project Cost 1,750

3 Debt 1,200

4 Internal Accruals 5504 Internal Accruals 550

5 Debt : Equity Ratio 2.18

6 CAPEX upto Jun.'14 1,262

18

Expected Commissioning - Dec'14

Greenfield Cement Plant Greenfield Cement Plant –– DurgDurg (Chhattisgarh)(Chhattisgarh)Raw Mill BuildingRaw Mill Building

19

Greenfield Cement Plant Greenfield Cement Plant –– DurgDurg (Chhattisgarh)(Chhattisgarh)Raw MillRaw Mill

20

Greenfield Cement Plant Greenfield Cement Plant –– DurgDurg (Chhattisgarh) (Chhattisgarh) KilnKiln

21

Greenfield Cement Plant Greenfield Cement Plant –– DurgDurg (Chhattisgarh)(Chhattisgarh)Raw Mill Silo & Raw Mill Silo & PreheaterPreheater

22

Split Grinding Unit Split Grinding Unit SuratSuratSplit Grinding Unit Split Grinding Unit -- SuratSurat

Sl No. Particulars Rs. Cr.

1 Capacity (Mn. MT) 0.65

2 Project Cost 150

3 Debt 100

4 Internal Accruals 504 Internal Accruals 50

5 Debt : Equity Ratio 2.00

6 CAPEX upto Jun.'14 65

23

Expected Commissioning - Oct - Dec'15

Power AvailabilityPower Availability

Sl. Source of Power Capacity MW Cost/UnitNo. Rs./Kwh

1 Existing Thermal Power Plant 36 4.07

2 Green Power Plant 14 0.45

3 New Thermal Power Plant 18 4.07

4 Supplies from 3rd Party 21 4.22(VS Lignite)

5 Solar Power 6 0.75

5 Total Availability 95 3 365 Total Availability 95 3.36

6 Less : Captive requirement 67

24

7 Net Availability for Sale 28

Impediments for further growthImpediments for further growth

1. Availability of Limestone Mines.

2 Acquisition of Land2. Acquisition of Land.

3. Environmental clearances.

4. Surplus land for further growth at existing side.

5. Capital Cost.

25

Growth Opportunity Growth Opportunity -- UCWLUCWL

Revival of M/s Udaipur Cement Works Limited (UCWL)

Growth Opportunity Growth Opportunity -- UCWLUCWL

p ( )

with Cement Capacity of 1.4 Mn. MT

Cost of Revival & Rehabilitation :

CostRs. Cr.

Cost1.Plant upgradation including Working Capital Margin 484

2 S ttl t f Old D 1162. Settlement of Old Dues 116

Total 600

Expected Commissioning of Clinkerisation – Dec’15

26

(Grinding Unit of 6 Lac. MT p.a. already operational)

G h O i G h O i UCWLUCWLRevival of M/s Udaipur Cement Works Limited (UCWL)

Growth Opportunity Growth Opportunity -- UCWLUCWL

Means of Financing for Revival & Rehabilitation :

Means of FinanceRs. Cr.

Means of Finance

A.Equity

1.Equity/other instruments from JKLC 150

2. Compulsorily Convertible Debentures 10

3. Internal Accruals 40

Total Equity 200Total Equity 200

B.Term Loan from Bank/FI’s 400

Total (A+B) 600

27

Advantages to JKLC from UCWLAdvantages to JKLC from UCWLAdvantages to JKLC from UCWLAdvantages 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 years4. Can commence operations in about 2 years as compared to 4 to 5 years

required for new cement project.5. Investment cost in UCWL will be US $ 71 per MT as against the cost of

US $ 120 per MT for a new Green field Cement Plant i.e., about 40%cheaper.

6. The plant has an excellent location, well connected by Road, Rail & Air6. The plant has an excellent location, well connected by Road, Rail & Airand is close to the National Highway.

7. The plant is having railway siding – easy movements of goods.8. The accumulated tax losses of UCWL of over Rs.100 Cr. will result in

tax savings in future years.9. The combined capacities of JKLC & UCWL would increase the market

28

9. The combined capacities of JKLC & UCWL would increase the marketshare and consolidation of capacities would give benefits of synergy &logistics.

Other Advantages of UCWL RevivalOther Advantages of UCWL Revival

1. Availability of surplus land for commercial use and furtheri

Other Advantages of UCWL RevivalOther Advantages of UCWL Revival

expansion.

2. JKLC’s holding is already 75% & Group holding is 88%.g y p g

3. Future option for JKLC : Merger/Dilution in Stake forfuture Growth in JKLCfuture Growth in JKLC.

29

Shareholding Pattern as on 30th June. 2014g

I Promoters & Promoter Group 45.96%pII Financial Institutions and Banks 26.22%III Public 27 82%III Public  27.82%

Total 100.00%

I Total Share Capital (Rs. Cr.) 58.85II Total No. of Shares  (Cr.)

(Face Value Rs. 5/‐ each) 11.77(Face Value Rs. 5/  each) 11.77

30

Shareholder’s friendly Initiatives

1 B b k R 97 50 C C f R 70/ h i

Shareholder’s friendly Initiatives

1. Buy-back upto Rs. 97.50 Crore at a Cap of Rs. 70/- per share inFeb’2012.

Cap of Rs. 70/- per share represents :

57% Premium over 12 months average price57% 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. 30.47 Crore for the Buy-back

h l f / h h f / h2. Share Split from - Rs. 10/- per share into 2 Shares of Rs. 5/- each.

31

Sh h ld ’ f i dl I iti ti (C td )

3. Consistent Growing Dividend Rate

Shareholder’s friendly Initiatives (Contd..)

40% for FY 2014.

50% for FY 201350% for FY 2013.

40% for FY 2012.

25% for FY 2011.

4. Consistent Dividend Payout Ratio4. Consistent Dividend Payout Ratio

30% for FY 2014.

20% for FY 2013.

25% for FY 2012.

30% for FY 2011.32

JKLC among Best Performers on the boursesAnnualised Stock Price Return since January 2003

55.5

39 4

Shree cement

JK lakshmi Cement

Company CAGR return (%)

39.4

36.8

33.8

30.0

JK lakshmi Cement

Chettinad Cement

Birla Corp

Mangalam Cement

29.6

25.4

24.9

Madras Cement

Ambuja Cement

Grasim Inds

24.9

24.0

22.8

ACC

Prism Cement

Century Textiles

Heidelberg Cement 22.3

19.9

18.3

16 5

Heidelberg Cement

Sensex

India Cements

Kesoram Industries

33

16.5Kesoram Industries

Source : Capitaline, BSE, BCCI Annual Report/Business Standard 30.05.13

O tl k f 2014 15Additional low cost power through 14 MW Green Power, 6MW of Solar Power and low

Outlook for 2014-15p g ,

cost fuel through use of Bio-mass fuel.

Full impact of increase in Kiln-I capacity of 3.30 Lac. MT p.a. and IInd Grinding Unit of

6.50 Lac. MT p.a. at Jhajjar will be captured in FY 2014-15.

Borrowing through CP / Buyers / Suppliers Credit & swapping in higher yield

instruments.

Reduction in Borrowing Cost on LT Loans through annual resetting.

Further improvement in efficiencies.

Trading in surplus Power and Purchase of Power at Cheaper rate at Grinding Unitsg p p g

through Exchange.

Return from Treasury operations to be higher than Cost of Funds.y p g

34

W F d

Focus on Value Added Products : RMC & AAC Blocks

Way Forward

Increasing volumes through split location Grinding unit Increasing volumes through split location Grinding unit and outsourcing Grinding Arrangement.

Short term rating continues at PR 1+ (highest possible rating).

JKLC continues to enjoy AA- Rating.

Would become a 10 Mn Tonne Cement Company by mid Would become a 10 Mn Tonne Cement Company by mid 2015.

35

JKLC t b h 10 M MT b S ’15

JKLC Capacity to go up from 6 6 Mn MT to 10 Mn MT

JKLC to breach 10 Mn MT by Sep’15.

JKLC Capacity to go up from 6.6 Mn. MT to 10 Mn. MT.

S l P f 20 25 MW i JKLC R j th Pl tSurplus Power of 20-25 MW in JKLC, Rajasthan Plant.

Efficiency Parameters amongst best in BusinessEfficiency Parameters amongst best in Business.

Key Financial Ratios well within accepted NormsKey Financial Ratios well within accepted Norms.

Becoming PAN India Player (Barring South)Becoming PAN India Player (Barring South).

36

Thank YouThank You