JK_Cement_Corporate_Presentation_0602.ppt

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Private
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Confidential
Disclaimer
 No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness
or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current
after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may
be "forward looking statements" based on the currently held beliefs and assumptions of the management of J. K. Cement Limited
(“Company” or “JKC”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s
general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its
competitive and regulatory environment.
 Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results,
financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial
condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or
developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past
performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are
cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these
forward-looking statements to reflect future events or developments.
 This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational
needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any
jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision
or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United
States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration therefrom.
 This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.
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Indian Cement Industry: Sustained Demand Growth
• Expected interest rate cuts in 4QFY13 positively
impacting demand from housing, infrastructure
and industry segments
• Multiple state/general elections in the next 18
months
• The government’s focus on reviving investment
demand
• Positive outlook on the Rabi crop rubbing off on
rural housing demand.
Demand growth - 8% (FY13) & 10% (FY14-FY15)
 The Cement industry has witnessed secular growth in consumption with quarterly variation in a year
 The momentum will sustain and gather further steam, driven by:
India, the 2nd largest cement producer in the world with total installed capacity of 350 mn tonnes
Source: CMA
Source: Company Estimates

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Expected Slowdown in New Capacity Addition will
Improve Utilization of Current Capacity
 In the current economic and political scenario, setting
up a new Greenfield project has become challenging
in view of the following:
• Long arduous process of environmental
approvals
• Land acquisition
• Complexity of mineral composition in new areas
• Supporting infrastructure of rail connect and
water availability
• Greenfield project cost in current context is $135-
$150/ton, depending on the site location
 With strong volume growth and decline in pace of
capacity addition, utilization (%) will improve,
having bottomed out in 2H CY11
 The average utilization will be 80% going ahead
• Most regions will operate at 90%+ utilization
except Andhra Pradesh, which has capacity
overhang
4
Capacity Utilization to improve from FY13 onwards

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Prices will Continue to Remain Robust Resulting in
Improved Profitability
 An annual increase of INR 20-25 / bag is expected,
considering:
• Improvement in demand growth
• Pass-on of cost-push
• Increase in capital costs
• Slowing capacity addition
 The rising costs of power, fuel and freight are likely to
stabilize, although at slightly elevated levels
 50% of India’s installed capacity has come up in
last 5 years
• This relatively new capacity requires an
EBITDA/ton of Rs.1,000 – 1,100 to justify
equity returns
 At the current Replacement Cost and Variable
cost levels, an increase of Rs.20-25/bag is
necessitated to earn new capacities 15% RoCE
5
A significant improvement is seen in EBITDA/ton
from the trough levels of ~INR525/ton in 2HCY10.
The EBITDA/ton is likely to be ~INR1034/ton in
FY13 and INR 1,184/ton in FY14 (v/sFY12 average of
INR 850/ton).

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Company Background
 J. K. Cement Ltd. (“JKCL” or “Company”) is part of the $3 billion conglomerate,
JK Organisation. The company is promoted by Dr. Gaur Hari Singhania & Mr.
Yadupati Singhania and entered cement business in 1975
 2nd largest white cement manufacturer in India with 0.40 MTPA capacity and one
of the leading grey cement producers in North India with over 36 years of
experience.
 Highly reputed brand with extensive nation-wide distribution
 Integrated Cement manufacturing company with 7.5 MTPA grey cement capacity
• Nimbahera, Mangrol and Gotan (Rajasthan): 4.5 MTPA
• Muddapur (Karnataka): 3 MTPA
• 105.5 MW of Captive power
• Proximity and access to large high quality reserves of limestone, sufficient to
operate cement plants for the next 30 years.
 Expanding domestic grey cement capacity to 10.5 MTPA and white cement
capacity to 0.60 MTPA and wall putty capacity to 0.60 MTPA by Sept 2014.
• Mangrol (Rajasthan): 1.5 MTPA
• Jhajjar (Haryana): 1.5 MTPA split grinding
• Gotan (Rajasthan): 0.20 MTPA white cement and 0.30 MTPA wall putty
 Greenfield Expansion in the Middle East
• Fujairah (UAE): Dual process plant - 0.6 MTPA white cement or 1.0 MTPA
Grey cement
 JK Cement’s LT credit rating was recently upgraded to AA- by CARE Ratings
 Listed on National Stock Exchange (“NSE”) and Bombay Stock Exchange
(“BSE”) with a market capitalization of INR 23bn

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Key Highlights
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 Cement Sector on Strong Foundation with Positive Future Outlook
• Sustained demand coupled with slowdown in capacity addition resulting in higher capacity utilization
• Improvement in profitability, backed by higher cement prices and operating margins
 Integrated manufacturing facilities at multiple locations
• Plants in North & South India enable the company to serve multiple regions
• 105 MW of captive power and large limestone reserves at close proximity, sufficient for the next 30 years
 White cement business cash cow with strong growth and profitability
• White cement & wall putty segments contribute consistently to profitability and provide healthy margins & stable cash
flows
• White cement capacity to increase from 0.4 mtpa to 0.6 mtpa by Sept ‘14 and augment current market share of 40%.
• Wall putty capacity will increase from 0.3 mtpa to 0.6 mtpa, in phases during next two years
 Domestic expansion to consolidate leadership in North and improve operating efficiencies
• Expansion plan to tap new markets, increase market share in North India and derive benefit from VAT incentives for
entire production at Mangrol and Haryana
• North based plants operating at 90%+ and newer plants will offer better operating efficiency
• Increase in share from south plant, which serves higher realization markets, will improve margins
 Dual process plant in UAE to grow internationally
• Cater to white cement demand in Middle East & North Africa(MENA) and infrastructure development projects in Qatar
• Unit in UAE provides logistical advantage to serve GCC and MENA countries and frees up current export quantity from
India for domestic sale

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Corporate Milestones
8
May 1975
Entered cement business with 0.3 mtpa plant at Nimbahera, becoming one of the first few to
enter the cement business
Nov 2004
Acquired a cement division from its affiliate through slump sale, on a going concern basis, with
a capacity to manufacture 3.55 mtpa of grey cement and 0.3 mtpa of white cement along with 15
MW of captive power plant
June 2005
The Company got listed on the Bombay Stock Exchange (“BSE”)
March 2006
Successfully raised INR 2960 mn through the Follow on Public Offer (“FPO”)
Sept 2009
Commissioned a 3 mtpa Greenfield plant in south at Muddapur, Karnataka
Oct 2012
Foundation laying ceremony for brownfield expansion at Mangrol
Dec 2012
Company’s long term credit rating
upgraded from A+ to AA- by CARE Rating.
2.8 7.5
0.8
0.5
0.5
3.0
3.0
0.0
2.0
4.0
6.0
8.0
10.0
FY '04 FY '05 FY '07 FY '09 FY '10 FY '15E
Grey Cement Capacity Build-up
2007
 Enhanced grey cement capacity by 0.50 mtpa, set up a 20MW coal based power plant and
13.2MW of heat recovery based power plant at Nimbahera and enhanced white cement
capacity by 0.1 mtpa at Gotan, through IPO proceeds
 Acquired a 0.1 mtpa white cement unit at Gotan from Nihon Nirmaan and subsequently in
2009, converted the unit to produce 0.47 mtpa grey cement
July 2012
“National Award for Excellence in Cost Management – 2011”
from The Institute of Cost Accountants of India
Nov 2012
“Best Employer Award - 2011” from Employer’s
Association of Rajasthan
Foundation laying ceremony for setting up a split
grinding unit at Jhajjar, Haryana
Nov 2011
Foundation laying ceremony at Fujairah to set up dual process plant
10.5

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Existing Plant locations and Market Reach
Cement Plant
Power Plant
Market Reach
Gotan - Nagaur (Rajasthan)
 0.47 MTPA# :Grey Cement
 0.40 MTPA* :White Cement
 0.3 MTPA: Wall Putty
 7.5 MW: Thermal Power Plant
Nimbahera – Chittorgarh (Rajasthan)
 3.2 MTPA : Grey Cement
 20 MW:Thermal Power Plant
 13 MW: Waste Heat Recovery
 15 MW (Bamania): Thermal Plant
Mangrol - Chittorgarh (Rajasthan)
 0.75 MTPA - Grey Cement
Muddapur - Bagalkot (Karnataka)
 3 MTPA: Grey Cement
 50 MW: Thermal Power Plant
Pan-India market
reach in white
cement & presence
in 13 states for grey
cement. 105.5MW of
captive power and
abundant limestone
reserves
# The grey cement capacity is interchangeable with white cement
* The white cement capacity is being expanded to 0.60 MTPA

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Strengths
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• Over 100 MW power generation
through coal-based & waste heat
recovery plants
• Total power requirement met at
lower cost through captive
generation
•JK Cement has access to large
reserves of high-quality limestone,
adjacent to the manufacturing
facility, estimated to suffice for 30
years at current production
capacity
• Superior product mix as one of
only 2 producers of white cement
in India.
• White cement & wall putty
segment contribute ~25% of top
line, providing stability in cash
flows and superior margins
•Plants in Rajasthan & Karnataka
gives wider market reach covering
North, West & Southern regions
• JK’s white cement & wall putty are
marketed and sold across the
country
Multi-
Region
Presence
Superior
Product
Mix
Captive
Power
Abundant
Limestone
Reserves

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Established Brands
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Ordinary Portland Cement (OPC) is sold under
the J.K. Cement brand name, Sarvashaktiman
Grey Cement
Portland Pozzolana Cement (PPC) and Portland
Slag Cement (PSC) variants are sold under the
J.K. Super Cement brand name
White Cement
J.K. White Cement is marketed and distributed
across the country
Value Added Products
White cement based Wall Putty and Water Proofing
Compound

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Superior Product Mix on account of White Cement
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Growth Drivers
White cement growing at 10%
annually and expected to increase on
account of:
• Increase in per-capita consumption
• Demand from wall putty,
registering 30% annual growth
• Increase in demand for Housing
sector
JK White Cement
 Current market share: 40%
 Pan-India reach with
established brand
 White cement contributes ~25%
to revenue & ~30% to
profitability
 Sufficient to service interest
liability & tax payout of the
entire company
White cement provides J.K. Cement with superior product mix and unique position to leverage
on high-growth, superior margin segment
White Cement Industry in India
 Installed Capacity: 1.0 mtpa
 Only 2 producers – UltraTech
Cement & JK Cement
 Domestic Sales: 0.9 mtpa
 Export Quantity: 0.1 mtpa
 Key Export Markets: South-Asia,
Middle East & Africa
 Entry of new players remote as:
 Requirement of Special quality
limestone
 High investment costs
 Problems in mine allocation
Price Realization (INR/ton) – Grey vs White*
* White cement price including wall putty

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Advantageous Revenue & Market Mix
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86% 82% 81% 79% 78%
14% 18% 19% 21% 22%
0%
20%
40%
60%
80%
100%
120%
FY '08 FY '09 FY '10 FY '11 FY '12
White Cement (Inc Putty) Grey Cement
Increasing share of White Cement in Revenues
OPC,
39%
PPC, 59%
PSC, 2%
Rajasthan
19%
Haryana
18%
Maharashtra
15%
Karnataka
12%
Westen U.P
12%
MP
8%
Delhi
6%
Punjab
6%
Others
4%
Product Mix – Grey Cement (FY12)
Market Mix evenly distributed (FY12)
Rising share from West & South to improve Realization
49.4 45.1
14.2 17.8
16.6 19.4
19.7 17.7
0
20
40
60
80
100
FY12 1HFY13
North South West Central

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Consolidate
position in
white cement
New
Domestic
Markets
Brand
Visibility
Energy
Efficiency
International
Opportunities
Strategy
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STRATEGY
Poised to be among top 5 white cement
producers globally
Increasing white cement and wall putty capacity
to sustain present share of revenue from this
business
All plants enjoy proximity to
raw material & growth markets
Brown field expansion
Split grinding in Haryana for
logistical advantage in National
Capital Region
 A leading brand in North for Grey Cement.
JK White and JK Wall Putty are marketed
across the country
 Enhance visibility further through print &
online media and consumer promotions
 Captive power generation to provide long
term sustained source of low cost power at
fixed rate
 Use of waster heat recovery to reduce
environmental impact
 Dual process plant in UAE
to cater to growing markets
of Middle East & Africa
 Infrastructure development
demand in Qatar for soccer
world cup

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Expansion Plan
Domestic – Rajasthan & Haryana Fujairah, UAE
Nature Brownfield
Greenfield- In a subsidiary, held 90% by JK Cement
along with Govt. of UAE (10%)
Capacity
3.0 mtpa, with 1.5 mtpa grinding in Mangrol & 1.5 mtpa
split grinding at Jhajjar, Haryana
Dual process cement plant capable of producing 0.6
mtpa white cement or 0.9 mtpa grey cement
Commissioning
 Haryana: June ’14
 Mangrol: Sep ’14
Mar ‘14
Features
 Abundant land
 Captive thermal plant of 25 MW and 9 MW WHR
 Railway siding at both locations
 Connectivity to road & port
 Quality limestone reserves
 Flexibility to switch between white & grey cement
Capital Outley &
Funding Mix
Total project cost: Rs. 1734 Cr.
Debt: Rs.1200 Cr.
Equity Contribution: Rs. 534 Cr.
Total project cost: Rs. 765 Cr.
Debt: Rs. 510 Cr.
Equity Contribution: Rs. 255 Cr
Tied-up
Proposal moved to banks and in the process of tie-up.
Company also has sufficient internal resources for
equity financing
Financial closure achieved for debt portion. Loan of
Rs.150 Cr. for promoter contribution and Rs.95 Cr. of
own resources remitted
Project Status
 Entire land acquired at both locations
 Mining lease allotted for additional limestone mine
 Civil work has commenced
 Orders placed for equipments with renowned vendors
 Civil & mechanical work progressing on schedule.
 60% of the RCC work completed till date
 Erection of equipment has commenced
Target Market
Haryana unit provides logistical advantage to serve the
National Capital Region and helps consolidate JK’s
leadership position in the North.
Cater to Middle East and North African white cement
demand and infrastructure development projects in
Qatar for soccer world cup
15

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Past consolidated financials
Income Statement Highlights
INR mn FY '10 FY '11 FY '12 H1FY13
Operating Income 18,268 20,943 25,468 14,483
Other Income 193 299 469 287
Total Income 18,461 21,243 25,936 14,770
Total Operating Expenses 13,891 18,180 20,329 11,623
EBIDTA (B’fore Excep. Items) 4,570 3,063 5,608 3,147
Interest 616 1,185 1,443 665
Depreciation 855 1,128 1,256 633
Exceptional Item - (72) 78 -
PBT 3,098 823 2,830 1,850
Provisions 853 196 1,085 620
PAT 2,246 626 1,746 1,230
Balance Sheet Highlights
INR mn FY '10 FY '11 FY '12 H1FY13
Equity Share Capital 699 699 699 699
Reserves & Surplus 12,786 13,250 1,4522 15,762
Networth 13,486 13,949 15,221 16,461
Long Term Loans 10,138 10,584 9,965 9,455
Total Borrowings 10,737 11,183 10,808 10,618
Deferred Tax Liability (net) 1,858 2,109 2,291 2,436
Other Liab & Provisions 3,579 6,746 7,440 8,402
Net Fixed Assets (Incl CWIP) 22,822 23,996 24,071 23,997
Investments 48 42 92 1,483
Cash & Cash Equivalents 1,318 3,215 4,332 3,445
Other Assets 5,473 6,734 7,264 8,993
Note: H1FY13 numbers are on standalone basis.

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Latest Quarter Performance
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Particulars Q3 FY13 Q2 FY13 Change
(%)
Q-o-Q
Q3 FY13 Q3 FY12 Change
(%)
Y-o-Y
9M 9M Change
(%)
Y-o-Y
FY 12
INR million
Dec 31,
2012
Sept 30,
2012
Dec 31,
2012
Dec 31,
2011
Dec 31,
2012
Dec 31,
2011
Mar 31,
2012
Total Operating
Income (Net)
6880.8 7148.7 - 3.7% 6880.8 6158.9 11.7% 21404.1 17373.8 23.2% 25467.8
EBITDA 1348.8 1316.8 2.4% 1348.8 1204.0 12.0% 4249.6 3138.8 35.4% 5166.3
PBT 775.6 830.1 - 6.6% 775.6 645.7 20.1% 2625.2 1437.1 82.7% 2857.8
PAT 543.8 540.9 0.5% 543.8 435.2 25.0% 1773.5 969.8 82.9% 1773.3
EPS – Basic & Diluted 7.78 7.74 7.78 6.22 25.36 13.87 25.36
Raw Material Cost % 15.3% 13.1% 15.3% 12.1% 13.6% 12.4% 12.2%
Power & Fuel Cost % 24.8% 24.4% 24.8% 25.3% 25.1% 26.5% 25.7%
Freight Costs % 20.5% 20.4% 20.5% 19.3% 20.0% 19.5% 19.1%
Others % 19.8% 23.7% 19.8% 23.8% 21.5% 23.6% 22.8%
EBITDA % 19.6% 18.4% 19.6% 19.5% 19.8% 18.0% 20.2%
PAT % 7.9% 7.5% 7.9% 7.0% 8.2% 5.5% 6.9%
 During 9MFY12, Company’s revenue grew by 23.2% as compare to the corresponding period 9MFY11.
 During 9MFY12, Company’s EBIDTA margin improved by 1.8% primarily on account of reduction in power &
fuel cost and other expenses.

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Management
Board Of Directors
Gaur Hari Singhania Chairman
Yadupati Singhania Managing Director and CEO
K.B. Agarwal Independent Director
J. P. Bajpai Independent Director
Suparas Bhandari Independent Director
J. N. Godbole Independent Director
Achintya Karati Independent Director
K. N. Khandelwal Independent Director
Raj Kumar Lohia Independent Director
Ashok Sharma Independent Director
Key Management Experience
Raghavpat
Singhania
Special Executive 5 years
Madhavkrishna
Singhania
Special Executive 2 years
A K Saraogi President (Corp. Affairs) & CFO 25 years
M. P. Rawal President (Tech. & Mgmt Service) 37 years
D Ravisankar President (Projects) 35 years
R. C. Shukla President (Mktng, Grey Cement) 28 years
Mohan Sharma Head (Mktng, White Cement) 24 years
Kaustubh
Dadhich
Head (Mktng, South-West) 25 years
B. K. Arora President (J.K. White Cement Works) 34 years
K. K. Jalori Plant Head, Nimbahera 32 years
A. K. Jain Plant Head, Muddapur 26 years

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Awards & Recognition
19
Best Employer Award, 2011
Employers’ Association of Rajasthan
9th National Award for Excellence in Cost Management, 2011
(The Institute of Cost Accountants of India)
Commemorative Stamp in
honor of the Founding Father
Productivity Excellence Award 2009-10
(Rajasthan State Productivity Council)
Over All Performance Award by
Indian Bureau of Mines

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Thank You

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