SCL Corporate Presentation June-12

SHREE CEMENT LTD.

An Energy & Environment Conscious, Sustainable & Prosperous Organization

PRESENTATION SEQUENCEShree Profile

SCL Performance - FinancialSCL Performance - Operational SCL Performance - Environment and Social

Awards and Recognitions

SHREE OVERVIEWFocused on Cement and Power.

Largest Cement Player of North India.

Turnover in 2011-12 (15 months) Rs. 5898 crore

An Energy & Environment Conscious Sustainable Organization

BOARD OF DIRECTORSBoard of DirectorsShri B.G.BangurShri H.M.Bangur Shri Y.K.Alagh Shri R.L.Gaggar Shri O.P.Setia Shri S.K.Somany Shri Nitin Desai Shri M.K.Singhi Shri Prashant Bangur

Non-Executive ChairmanManaging Director Ex Cabinet Minister and Economist Solicitor Ex Managing Director - SBI Technocrat Economist Executive Director Whole-Time Director

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SHREE PHILOSOPHYQuality and Energy Conscious Environment and Employee Friendly Socially Responsive Customer Responsive

Investors RewardingSustainable Organisation5

SHREE VISION AND VALUESOUR GUIDING PRINCIPLESSocially responsible behavior Accountable to all stakeholders Good corporate governance practices Integrity of conduct Clarity & Unambiguity in communication6

VISION

To drive and sustain industry leadership of the company within a global context - by developing individual leadership competencies at entry level, through a robust backbone of trust, support innovation and reward

Shree Cement Profile

The AimTo lead Company from good to great.

Changing Scenario Total Productivity Management Total Profit Management Total Prosperity ManagementAn Energy & Environment Conscious, Sustainable & Prosperous Organization

SHREE

Cement OverviewCement Business the bedrockLocation Beawar Ras Khushkhera Suratgarh Roorkee Capacity 3.0 mtpa 3.0 mpta 3.0 mtpa 1.2 mtpa 1.8 mtpa

JaipurTotal

1.5 mtpa13.5 mpta

Contributing to Bharat Nirman8

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SHREE

Power OverviewPower Business New AvenueLocationBeawar (TP) Ras (TP)

Total342 MW 172 MW

Beawar & Ras (GP) Total

46 MW 560 MW

TP= Thermal power ; GP = Green Power (WHRB)

Contributing to Indias Energy Security9

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Shree - Capacity Growth - CementRapidly Growing Cement Capacity (Million Tonnes)13.512 12 10 8 6 4 205-06 06-07 07-08 08-09 09-10 11-12 (30.06.12)

9.16.3 4.9 3.2

Shree - Capacity Growth - PowerPower Capacity (MW) - More than Quadrupled in 4 years600 500 560

400300 200 100 0 05-06 06-07 07-08 08-09 09-10 10-11 11-12 (30.6.12) 45 65 102 119 210

260

SHREE BRANDSSHREE ULTRA RED OXIDE BANGUR CEMENT ROCKSTRONG CEMENT

Shree Ultra Red Oxide

Bangur Cement

Rockstrong Cement

Leadership position in highly competitive and larger markets of Rajasthan, Delhi & Haryana.12


SCL Performance - Financial SCL Performance - OperationalSCL Performance - Environment and Social


SHREE- FINANCIAL STRENGTH7000 6000 5000Rs.Crores

Operating Profit

Turnover

5898

4000 3000 2109 20001000

3632 2715 1578 939 1034 1010

3454

1808

0'07-08 '08-09 '09-10 10-11 11-12 (15 mnts)

Consistently increasing Turnover and Operating Profits14

SHREE- FINANCIAL STRENGTH12000 10000Rs.Crores

IRR as on 30th June 2012 on investment in Shree is 26.08% since inception (Feb-85)80127234

10590

8000 6000 4000 2000 031/03/05 31/03/06 31/03/07 31/03/08 31/03/09 1191 3113 32143823

2475

31/03/10

31/3/2011 30/6/2012

Steep rise in Market Capitalization over the years15

SHREE- FINANCIAL STRENGTH3000 2500Rs.Crores2734

2000 1500 1000 500 0455 6731210

1,833

1986

Increasing net worth showing financial strength

31/03/07 31/03/08 31/03/09 31/3/10 31/3/11 30/6/12

50 40Percentage

48.4

36.5

36.8

30

24.1 18.2

Return on net worth (in %)

20 10 0'06-07 '07-08 '08-09 '09-10 10-11

7.5

11-12 (15 mnts)

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SHREE- Sharing growth with Stakeholders5000 4000 3000

4625

3632 1368611474

3512

2109939698'07-08Turnover

27101578 993828 '08-09Op. Profit

Rs. Crore

2000

10000

1010 8711004 '09-10 10-11

12951100 11-12

Increased Turnover and Profits results in Increased contribution to Exchequer

'06-07

Cont. to Exchequer

200

Percentage

130 100 70 80

140

Increasing Dividend payout over the years'06-07 '07-08 '08-09 '09-10 10-11 11-12 (15 mnts)

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Power sale New avenue for Growth700600

575

500Rs. crores

400

300200 174

255 782008-09 2009-10 2010-11 2011-12 (15 mnts)

Power sale revenue increasing multi-fold

100 0

1400 1200Million Units

1322

1000 800 600 400 20002008-09 2009-10 2010-11 2011-12 (15 mnts)

Sale volumes increased ten times over last four years

524265

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SHREE- Significant Firsts by ShreeFirst company in the World to utilize 100% Petcoke in all its operations - Both Cement and Power plants. First Cement company in India to produce Synthetic Gypsum to replace use of natural gypsum in cement manufacturing.

First Cement company in India to be given 4 star rating by Whitehopleman UK.

Fastest stabilization commissioning.

of

cement

kilns

after

SHREE- Information TechnologySHREE IT driven Company

IT Infrastructure

Data Loss Uptime Paper Use ConnectivityResponse Time

Security

One of the most secure, scalable and connects all SCL business locations.

SHREE- Information TechnologyAdopts latest Technologies & Tools to achieve: Business Edge Migrate the enterprise to a virtually paperless working level Complete transparency through online realtime working Comprehensive Knowledge Management through knowledge sharing Transport Freight Bidding System and eprocurement system. Online communication between all company locations and all the stock points across the country with the use of MPLS VPN.

SHREE- Information TechnologySuccessfully implemented Oracle E - business Suite, one of the advanced solution driven ERP systems in the industry.

Launched integrated RF-ID Smart Card for governing vehicle movementFirst time CCR based Lime Stone Mining using Shree Dynamine Operator Independent Truck Dispatch System Shree won the Silver CIO Award 2008 which is revered as the OSCAR of the Indian IT industry for the case study on Implementation of Reverse Auction of Cement Transportation.

Knowledge ManagementOnline Forums, portal, blogs for Knowledge sharinge-Library & Kiosks

Online IT Helpdesk, with User self service

Shree ManthanDiscussion Forums & Interactive Surveys

Circulars & HR information made available online

Computer Based Tutorials, Pictures & Videos Online Comments & Feedback

ERP Business SuitePurchasing Sales & Distribution/ Logistics Finance ( AP, AR, GL, CM ) Enterprise Assets Management

Production Management

HRMS

{Self Service, HR, Payroll, Time and Labour}

Process Manufacturing

Project Management

Standard ERP suite has been extensively customized & enhanced to incorporate SCL Business practices.

Shree Masters in Project ExecutionKiln Commissioning time over the years

Unit VII and Unit VIII commissioned in World Record time against Industry average of 630 days

Shree Speeding up execution ..contPower Plant Commissioning ahead of benchmarksIndustry Average SCL execution

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Execution period (Months)

22 1812

21 15

18 MW

50 MW

150 MW

SCL has developed a highly skilled and experienced power plant execution team that not only commissions plants faster but stabilization is also much faster

Shree Economies in executionOne of the lowest project costHighly skilled and experienced project team Innovative work practices applied in project execution Lower interest and other pre-operative cost Support to Vendors & Contractors Partner in execution

Desire to better the past instinct in project execution team

SCL project cost is the lowest in industry

SHREE- Excellent Project Execution

SHREE- Excellent Project Execution




SHREE- Management SystemsISO-14001 Environmental Management SystemOHSAS-18001Occupational Health & Safety

SA- 8000 Social AccountabilityISO-9001 Quality Management *BS-EN 16001 Energy Management SystemMANAGEMENT SYSTEMS

*First Process & Cement manufacturing Industry in World to be awarded an Energy Management System Certification by British Standard Institute UK.

SHREE- Global ParticipationFirst Indian Cement Company to join Cement Sustainability Initiatives of World Business Council for Sustainable Business Development (WBCSD)

Climate Protection Fuels and raw materials use Employee health and safety Emissions reduction Local impacts on land and communities Communications and progress reporting Concrete recycling

Global ParticipationMember of Cement Sector Task force of Asia Pacific Partnership formed by Govt. of India, USA, China, Japan, Korea, Canada and Australia

Global Reporting Initiative for improving sharing of information on Environment and Social issues

Endorsed the global round table Joint Statement on climate Change to discuss issues for shaping public policy on climate change.

Global ParticipationParticipated in various international meetings and forums for Environment management. A few of these is given below:

Greening the EnvironmentStrategies for ClimateUse Security Judicious is WiseEnergy Use -

Management

EffortsInstalled air dryer and controller in the compressor Unit-IIIReplaced roller table liner in Coal Mill II with new one Installed VFD in 6 Dust collectors at Packing Plant Replaced old motors with energy efficient motors in Kiln I Optimized Belt Conveyor speed & capacity utilization, in Reclaimer I Installation of High Efficiency Fan in main ESP Fan in Kiln II

CO2 Saving(Ton/ Annum)

2031166

10541004

385466

SHREE- First in EnvironmentFirst Cement company in World to fetch Certified Emission Reductions (CERs) on its Clean Development Mechanism project Optimal Utilization of Clinker.

Implemented Largest Waste Heat Power Plants capacity of 46 MW in World Cement Industry excluding China.

First Indian cement company to issue Corporate Sustainability Report following the highest level A+ for reporting triple bottom line performance.

SHREE Socially ResponsiveCommunity focused Healthcare Initiatives

Education initiatives

Infrastructure Development

Generating Sustainable livelihood39

Community Upliftment Efforts Registration of SHREE RURAL FOUNDATION

platform to carry out welfare activities. Aimed at institutionalizing welfare efforts from Need based to Plan Based Regular meetings with Panchayat (Local Authority) to identify developmental needs & ways to implement.40

Community Upliftment Efforts Contributed Rs. One crore on the occassion of Rajasthan Foundation Day Contributed Rs. One Crore for setting up a Neurosurgical Centre at JLN Hospital, Ajmer Contributed Rs.50 Lacs for reconstruction of Budha Pushkar (Religious site) Contributed Rs. 25 Lacs for building of Institute of Chartered Accountants of India at Beawar.41

Community Upliftment Efforts Contributed Rs. 21 lacs for Kosi river Flood victims of Bihar

Supported relief operations for flood affected people of Barmer.

Development of various Road networks and other infrastructure for local community42

SHREE People friendly Company One of Indias top 20 best employers Shree Family culture Participative management High happiness quotient Sustained Promotion policy No. of employees (30th June, 2012): 3778

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SCL Performance - FinancialPerformance - Operational Performance - Environment and Social


SHREE New Sustainability Champion Identified as new World Sustainability Champions by the World Economic Forum (WEF) and Boston Consulting Group (BCG) Selected after identification of over 11 million projects / companies and screening of 1000 companies of emerging economies Study was shared at Summer Davos Summit held in Dalian, China in September-20114545

SHREE An Award Winner all the way

Commendation Certificate by CII-ITC for its achievements on the journey towards sustainable development

Jamnalal Bajaj Award for Fair Business Practices

ICWAI National Award for Excellence in Cost Management

Nirmata Rajya Mitra Award by Department of Taxes, Govt. of Rajasthan for maximum tax payment for the year 2010-2011 in "manufacturer" category

Green Business Leadership Award by FE-EVI

Best Environmental Excellence in Plant Operation Award by NCCBM

National Water Management Award by CII

Second best Quality Excellence Award by NCCBM

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THANK YOU

Visit us at: www.shreecement.in Contact us at: [email protected]

Documents

SCL Corporate Presentation June-12