#1ACE Action Construction Equipment Ltd. ACE ACE ACE ACE INDIA'S NO.1 N MOBILE & TOWER CRANE CO. ACE ACE May, 2018 1#2Who We Are ACE India's leading material handling and construction equipment manufacturing company. Enjoying over 63% market share in the Mobile cranes segment and 60% market share in Tower Cranes segment. Established brand with a significant presence across the Indian construction, infrastructure, logistics and Industrial landscape. Full-fledged state of the art production facilities supported by a strong R&D backbone. Widest sales and service network operating from 100+ locations. 15000+ strong Customer base including all the leading names. 2#3Our Philosophy ACE ACE Our Aspiration "To be the largest Company in Cranes and Construction Equipment Sector, with a Global Focus" Mission Provide customers with latest technology, construction equipment and effective Pre sales and after sales support aimed at satisfying their real needs Integrated Enterprise Leveraging the strengths and unique capabilities of our businesses Measures Delivering results today, within each business, while building for the future Strategy Product Development | Market development | Market Penetration 3#4Products Cranes Road Equipment ACE ACE Pick and Carry Cranes Lorry Loader Cranes Self Erecting Tower Cranes Crawler Cranes Fixed Tower Cranes Truck Cranes ACE ALN 300 Backhoe Loader Wheel Loader Material Handling ACE Forklift Trucks Agriculture Equipment Tractors ACT-60 ACE ACE ACE Soil Compactors & Tandem Vibratory Rollers Motor Graders Warehousing Equipment ACE Rotavators ACE ACT-60 Wheel Harvesters Harvester Combines 4#5Facilities ACE State of art Production Facilities Total owned area: 82 acres Utilised area: 30 acres 50#6Key Drivers ACE Government focus on Infrastructure, Railways, Roads, Metro, Defence, Housing and Smart Cities etc. Industrial Capex Cycle Higher GDP growth rate Growing mechanization in the construction, agriculture and manufacturing sectors Increased Private sector participation and opening of FDI Ease of availability of finance for material handling & construction equipment The Indian construction equipment market has the potential to grow to US$ 5 billion by FY 2020 from US$ 3 billion in FY 2016 Infrastructure spending to be about 9% of GDP by FY 2020 from 7.20% in FY 2017 Source: industry data Increased Income Demand for Housing Job Creation Infra Development Expansion In GDP Demand for im proved Urban Infrastructure CO 6#7Key Infra Infra Projects Roads Railways Airports : Bharat Mala Phase-I - 35000 Kms PMGSY (Pradhan mantri Gramin Sadak Yojna) - 57000 Kms. Mumbai Trans harbour Link (MTHL) Dedicated freight corridor High Speed Rail Project ( Ahmedabad - Mumbai) Re-development of 600 Major Railway stations 3600 Kms. Of track removal Increasing airport capacity by 5 times Navi Mumbai Airport 50 locations for Reconstruction Housing : PMAY (Pradhan Mantri Awas Yojna ) 1.2 Crore houses by 2022 Sanctioning @ 3-5 Lacs houses per month Industrial Corridor : DMIC (Delhi Mumbai Industrial Corridor ) USD 100 Billion over next 10 years Ports ACE Metro Rail Urban Infrastructure : Sagar Mala - comprising of 400 projects : Delhi, NCR, Mumbai, Ahmedabad, Jaipur, Lucknow, Kolkatta, Bangalore, Hyderabad, Chennai City Roads, Bridges, Flyovers, Water, Sewage etc. being built all across 7#8ACE in the forefront Future ready infrastructure Under utilized manufacturing facilities in place for future revenue growth • Present utilization levels 30%-75%, no further major CAPEX envisaged ( Land Utilization - 37%) Establishing new product categories ACE Ability to Counter and Capture • Quality and Reliability Focus Competitively priced - cost effective products Fastest after-sales product support through a countrywide network (100+ locations) equipped with genuine parts and trained engineers Strong emphasis on research and development • Investments in R&D to ensure international quality standards • Thrust on continued innovation and Value engineering • Only construction equipment company in India whose R&D department is recognized by DSIR - GOVT. of INDIA 8#9→ Opportunity Pick and Carry Cranes Construction, Railways, Metro, Urban Infra Backhoes Motor graders ACE ACE ACE Roads, Ports, Pipelines, Refineries Infrastructure and Agriculture The future economic drivers Steel, Cement, Power, Hydel, Power Distribution Crawler Cranes Tower Cranes ASD 11 ACE Vibratory Rollers Engineering Industry, Mining Agriculture ACE Forklifts Tractors ACT-60 ACE ACE ACT-60 Harvester Combines 9#10Evolving Opportunities ■ Indian Defence: Cranes, Forklifts, Skid Steer Loaders, Multi Purpose Tractors, Tele handlers and special mobile equipment. ■ ACE - URSUS MOU: (Massey Ferguson Technology Tractor) for Re-export and domestic markets. ■ North Eastern States: Increased focus on Infra development ▪ Exports: Increase in export revenue and %age contribution from INR 480 Mn. (4.5%) to INR 2000 Mn. (11%) over next 2-3 years. Foray into AWP segment (Aerial Work Platforms) ACE TH620 1005KG ACI 10#11ACE Edge Established Brand Name Extensive range of products Value for money propositions Highly capable and qualified management ACE 11#12Edge Established Brand Name India's largest Mobile Crane and Tower Crane Company ▪ "ACE” brand name is synonymous with product excellence, quality, product support and customisation Most awarded Construction Equipment Company in the Country. ■ ISO 9001 certified - stringent quality standards for design, development, procurement, manufacturing, testing & installation. Most ACE products are CE Certified - key indicator of a product's compliance with EU standards 15000+ satisfied customers including all large names in the country. ■ In House Training Centre C E ACE FX150 ACE TRAINING CENTRE 12#13Extensive Product Range ACE ☐ ☐ Widest range of products with better specifications & capacities at reasonable price points translates to improved efficiency, productivity and cost saving for customer. ACE equipment is rugged, simple to maintain and designed to suit Indian work conditions. Nearly all products developed indigenously. Customers benefit from single window service. 4 Expansive range of products ACE R&D CENTRE R&D Facility 13#14Edge Pradeep Sharma Head - Cranes & Construction Equipment Qualification - B. Tech Industry Experience - 39 years ACE Highly capable and qualified management Md Imteyaz Ahmed Head - Agri division Qualification – M.Tech (Engineering) - - Industry Experience – 35 years Vijay Agarwal Chairman & Managing Director Qualification - BE (Mech Engg), MBA, Industry Experience - 48 years Sorab Agarwal - Executive Director Qualification – BE (Mech Engg), Industry Experience –20 years Ashok Tomar Head-Tractors Qualification - B.Tech. (Agril. Engg.) Industry Experience - 34 years Rajan Luthra CFO Qualification -ICWA, CS, PGPM Industry Experience - 35 years Promoted by Mr. Vijay Agarwal in the year 1995; went public in the year 2006 14#15Edge ACE Value for money proposition • Reliable Value for money product offerings: latest technology at competitive price points. Srinagar Leh Jammu Ludhiana Chandigarh Haridwar Nationwide Sales & Service Network . Offering the fastest after-sales product support. • Customer Centric Solutions . Focused on further increasing the sales and service network and dedicated spares parts division. Pan-India presence through a network of 83 sales and service locations, supported by 21 offices based at Delhi, Mumbai, Chennai, Kolkatta, Ahmedabad, Surat, Pune, Jaipur, Chandigarh, Ranchi, Raipur, Indore, Bhubaneshwar, Lucknow, Jamnagar, Hyderabad, Bangalore, Guwahati, Patna, Vizag & Kochi. Faridabad Agra Jaisalmer Jodhpur Rewari Jaipur Aligarh Kota Delhi Noida 124567 3 U.S Nagar Lucknow Darbhanga Muzaffarpur Patna Begusarai Siliguri Singrauli Bokaro Udaipur Bhuj Gandhidham Indore Bhopal ●Jabalpur Dehri-on-sone, Ranchi Durgapur Rourkela Jamshedpur Ahmedabad Jamnagar Rajkot Bilaspur Korba Barbil Jharsugada Nagpur Raigarh ●Kolkata Raipur Baroda Angul Bhilai Surat Bhubaneshwar Nasik Mumbai A Aurangabad Pune Ramagundam Vijaywada Vizag Kolhapur ◆ Guntur Hyderabad Goa ● Nellore Hubli Bellary Kurnool Kadapa Bangalore Mangalore Calicut Chennai Villupuram Salem Coimbatore Kannanur Palakkad Trichy Kochi Kottayam Trivandrum Madurai Tuticorin Guwahati WORKS REGIONAL OFFICES AREA OFFICES SALES AND SERVICE DEALERS 15#16Awards 2017 ACE INDIA'S NO.1 MOBILE & TOWER CRANE CO. Awards ds PLANMAN MEDIA APLANMAN CONSULTING INITIATIVE India's 70 most trusted Power Brands 2017 IBC INTERNATIONAL BRAND CONSULTING CORPORATION, USA India's most trusted Company THE ECONOMIC TIMES- INFRA FOCUS The Economic Times Infra Focus - 2017 Equipment INDIA Best Seller in Mobile Cranes 2017 15 CONSTRUCTION WORLD ANNUAL AWARDS 2017 India's Top Challengers 2017 ACE ACE INDIA'S 70 MOST TRUSTED POWER BRANDS MOST TRUSTED BRAND INDIA'S COMPANIES AWARDS PLANMAN ACE BRANDS Certificate ACTION CONSTRUCTION EQUIPMENT LTD. In Inda's Most Trusted Construction Equipment Co Has Been Awarded INDIA'S MOST TRUSTED COMPANY 2017 Co Awarded b INTERNATIONAL BRAND CONSULTING CORPORATION, USA The Exus T INFRA FOCUS SAS you Chaman and Nangy Tector, ACE, Acton Contraction Equipment for your nati is the apollo 4th ANNUAL Equipment AWARDS 2017 Prevented t Action Construction Equipment 21A 2017 for Mobile Cranes 4" EQUIPMENT INDIA AWARD 2017, NEW DELHI Putapadade ASAPP COMFRICTI 16#17Milestones • Launched range of tractors upto 90 HP. • Material Handling Equipment • Best Seller in Mobile Cranes Award- Equipment India. ⚫"70 Most Trusted Power Brands of India" Award. • Economic Times "Infra Focus" Award. "India's Most Trusted Company "Award International Brand Consulting Corporation, USA. India's Top Challengers Award - Construction World. 2016 2017 Launched Forklift Trucks. Became the first Indian Construction Equipment manufacturer to be accorded CE certification Fastest Growing Construction Equipment Company Award CW-NICMAR. Listing on the Stock Exchanges - BSE & NSE CNBC TV 18 Emerging India Award Fastest Growing Construction Equipment Company Award CW-NICMAR. Nothing beats an ACE 2015 2014 2013 2012 2011 2010 2009 Sold first Tower Crane and forayed into the field of fixed tower cranes 2008 Tie-up with Autogru PM, Italy for distribution of their products. 2007 2006 Rolled out its first small Loader Exported its first machine 2004 2001 Rolled out 1st Mobile Tower Crane 1999 Received ISO 9001 certification Established regional office in Mumbai 1998 1997 Company Incorporated Roled out its first Hydraulic Mobile Crane 1995 ACE • Launched Skid Steer Loaders India's Top Challengers Award-Construction World. Best Seller in Mobile Cranes Award - Equipment India. Launched Rotavator and other Agri implements. Launched Wheel Harvester Started in-house Engine Plant Launched Ambulance Service (CSR) Launched Track Combine Launched New Generation Pick & Move Cranes and Lorry Loaders Fastest Growing Construction Equipment Company Award - Construction World. Recognition of in house R&D Centre In house manufacturing of Crawler Cranes Fastest Growing Construction Equipment Company Award - Construction World. Adopted advance technology for big tower cranes in India Designed, developed and launched road-making equipment Launched Crawler Cranes & tractor Rolled out the tractor range Fastest Growing Construction Equipment Company Award CW-NICMAR. 17#18Number of customers Customer base Key Customers Ambuja Cement बीएचईएल TATA Reliance Industries Limited JŚW WELSPUN BHEL NCC adani DILIP BUILDCON LTD. Infrastructure & Beyond & many more high profile clients 3368 2065 1324 5 99 211 339 576 497 692 805 976 4722 5995 7320 8962 ACE 15040 12010 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2016 18#19HYDRAULIC TANK ACE F-160 Cranes ACE ACE 12XW ACE ACE ACE 2 19#20Mobile Cranes Market leader - 63% Market Share Operating at 75% capacity Our Position " Buoyant demand leading to scarcity Average life of mobile crane 10-12 years, strong replacement market Product ACE Current Capacity Classes 9 tonnes - 40 tonnes High quality offering with equitable pricing Application - Versatile cranes that can be used for a wide range of lifting needs, both on and off road Market Environment Strategy Going Forward Focus on improving market share - crossing the next milestone 70% 20#21Crawler Cranes ■ No. 1 position in India ( upto 75 Tons) Presently operating at 20% current capacity utilisation Product ACE ■ Capacity Class: 25 Tons -75 Tons ( 150 Tons under development) Application Crawler cranes have the highest lifting capacity in any type of mobile cranes, primarily used in heavy engineering, petrochemical industry, power plant construction, infrastructure projects and wind power Our Position Crawler cranes demand set to increase with revival in the Infra and Construction sectors Market Environment ■ Strategy Going Forward Leverage on strong brand equity to improve market share 21#22Tower Cranes Market leading position (~60% share) ■ Current Capacity utilisation is 40%. Our Position Key Drivers - Increasing construction of multi-storeyed buildings, translating into expansion in demand. Precast construction leading demand for bigger cranes. ■ ACE Maximum lifting heights of 300 metres and a working radius of up to 70 meters. ■ Product Used in construction of multi storey buildings and infra projects. Market Environment ACE Strategy Going Forward To leverage Capacity opportunity. 22#23" Forklifts 2 No. 3 player in the market - ~ 18% market share Expertise and capabilities available to achieve leadership position Operating at 40% capacity Product Electric, Diesel and LPG operated Forklift Trucks ACE Capacity Class: 1.5 tons - 10 tons Our Position ACE Strategy Going Forward Key customers are corporates - used mainly in factories Key Driver - Increase in logistics and warehousing activities to drive sales " Huge potential in the segment with high margin led growth Market Environment " Development & expansion of corporate sales channel through dealer leverage 23#24Road Construction Equipment ACE® ACE 24#25Road Construction Equipment ■ 2 Operating at 25% -30% capacity utilisation. Our products are competitively priced, offering equivalent quality with cushion to raise prices once volume picks up. Our Position Product ☐ High growth segment expected to grow at ~70% CAGR for next 3-5 years. Market Environment " Key Drivers - pick up in construction and infra activity. ■ ■ Value for money products, with latest technology. Application Used for digging, moving, grading, compacting and loading earth and other loose aggregates, also find application in industrial and mining activity. Current Capacity Class ■ Soil compactors: 10 - 12 tonnes Tandem compactors: 3.5 - 9 tonnes Motor Graders: 150 - 176 Hp Backhoe 1 Cu.M ■ Loader 3 and 5 tonnes AACE Strategy Going Forward Leverage existing sales network to grow road construction equipment business. Leverage existing customer base. 25#26Agriculture Equipment の ACE 2 ACE ACI 01-6565 26#27Tractor Industry in India EKDA ACE ACE . Key Strengths of Agriculture Industry Increasing trend towards Mechanisation Minimum Support prices for Key Crops Scarcity of Labour Ease of Credit Availability from Govt. Future Prospects ACE According to CRISIL Research, domestic tractor sales are expected to close fiscal 2018 with impressive 16%-18% growth The long term growth fundamentals of industry are strong with lowering of the replacement cycle. 27#28◉ Tractors Presence across northern states of Haryana & Uttar Pradesh, focusing on PAN India Presence. Cash flow positive business with negative working capital and zero credit on Tractors. Operating at 50% capacity Our Position Product Increasing trend towards Mechanization. Minimum Support prices for Key Crops. Scarcity of Labour. Ease of Credit Availability from Govt. Market Environment ■ ■ ACE Value for money products, offerings with latest features. Presence across product ranges in 35, 45 & 50 HP and now upto 90 HP category. Strategy Going Forward ☐ To increase presence and brand awareness in West and South India. Increase supply and focus on Marketing & Promotion activities. Focus on Export already supplying to Egypt, Afghanistan, Bangladesh and Nepal. 28#292 Range of Agriculture Equipment ACE® Tractors ACT-60 ACE ACE ACT-60 Track Harvester ACE ACE ACE ACWIOL ACE ACE ACE Wheel Harvester Rotavators 29#30Presence ACE Punjab Delhi Rajasthan Haryana Gujarat Maharashtra Uttar pradesh Bihar Madhya Pradesh Chhattisgarh Andhra Pradesh Karnataka Tamil Nadu Jharkhand 10 Bengal Orissa Just Open Expanding Existing Operations 30#314 the decl only Fe The Dow FINANCIALS ACE® уми Dets ht by it 31#32P&L Perspective ACE (cr) Net Operating Revenue (cr) EBITDA 100 1200 100 1086 1000 751 800 615 637 598 600 400 200 80 60 60 40 40 20 0 0 31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018 (cr) 60 60 50 40 40 30 PAT 48 40 31 32 31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018 ('Rs) 53 5 4 3 EPS 4.5 20 20 2 1.2 9 10 7 10 4 1 0.7 0.7 0.4 0 31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018 0 31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018 Note: 1. Figures for the FY18 and FY17 are after considering the impact of Ind AS. 32#33Balance Sheet Perspective ACE (cr) 450 400 Net Worth (cr) Cash in Hand 48 50 406 357 40 350 40 310 300 251 256 38 30 28 30 26 250 200 20 150 100 10 50 0 0 31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018 31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018 (cr) Borrowings 160 150 154 138 140 120 100 80 60 40 20 0 31/03/2014 31/03/2015 31/03/2016 Note: (%) 20 20 114 15 78 31/03/2017 31/03/2018 Return on Capital Employed 10 6 5 0 80 9 9 19 1. Figures for the FY18 and FY17 are after considering the impact of Ind AS. 2. Borrowing includes Preference Share Capital of Rs.17 Crs in FY18 and Rs.30 Crs in FY17 & FY16. 31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018 33#34ACE INDIA'S NO. 1 MOBILE & TOWER CRANE CO. Lifting India's Infrastructure Growth 34