Action Construction Equipment Limited · NSE:ACE

Action Construction Equipment — Investor Presentation (May 2018)

34 slides from Action Construction Equipment's investor presentation, May 31, 2018

1. Slide 1: Action Construction Equipment Ltd.

   Action Construction Equipment Ltd. May, 2018 1

2. Slide 2: Who We Are

   Who We Are  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,

3. Slide 3: Our Philosophy

   Our Philosophy 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 Enterpri

4. Slide 4: Products

   Products Cranes Pick and Carry Cranes Lorry Loader Cranes Self Erecting Tower Cranes Crawler Cranes Fixed Tower Cranes Truck Cranes Road Equipment Backhoe Loader Wheel Loader Soil Compactors & Tandem Vibratory Rollers Motor Graders Material Handling Forklift Trucks Warehousing Equipment Agriculture

5. Slide 5: Facilities

   Facilities State of art Production Facilities Total owned area: 82 acres Utilised area: 30 acres 5

6. Slide 6: Key Drivers

   Key Drivers • 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 o

7. Slide 7: Key Infra Projects

   Key Infra Projects Roads : Bharat Mala Phase-I – 35000 Kms PMGSY (Pradhan mantri Gramin Sadak Yojna) – 57000 Kms. Mumbai Trans harbour Link (MTHL) Railways : Dedicated freight corridor High Speed Rail Project ( Ahmedabad – Mumbai ) Re-development of 600 Major Railway stations 3600 Kms. Of track remo

8. Slide 8: ACE in the forefront

   ACE 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 Ability to Counter and Capture • Qualit

9. Slide 9: Opportunity

   Opportunity Motor graders Pick and Construction, Carry Cranes Railways, Metro, Urban Infra Roads, Crawler Cranes Ports, Steel, Cement, Pipelines, Power, Hydel, Backhoes Refineries Infrastructure Power and Distribution Agriculture Tower The future Cranes economic drivers Vibratory Engineering Industr

10. Slide 10: Evolving Opportunities

    Evolving 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 developm

11. Slide 11: ACE Edge

    ACE Edge Established Extensive Brand Name range of products Value for Highly money capable and propositions qualified management 11

12. Slide 12: Edge: Established Brand Name

    Edge 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

13. Slide 13: Extensive Product Range

    Extensive Product Range  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

14. Slide 14: Edge: Highly capable and qualified management

    Edge Highly Pradeep Sharma capable and Head – Cranes & Construction Equipment qualified Qualification – B. Tech management Industry Experience – 39 years Vijay Agarwal Md Imteyaz Ahmed Chairman & Managing Director Sorab Agarwal Head – Agri division Qualification - BE (Mech Engg), MBA, Executive Dire

15. Slide 15: Edge: Value for money proposition

    Edge Value for money proposition Nationwide Sales & Service • Reliable Value for money product offerings: latest technology at Network competitive price points. • Offering the fastest after-sales product support. • Customer Centric Solutions . • Focused on further increasing the sales and service ne

16. Slide 16: Awards 2017

    Awards 2017 fed] INTERNATIONAL BRAND CORPORATION, USA PLANMAN India's 70 India’s most trusted most trusted Power Brands 2017 Company @ o— — wore | | rae & re INFRA ensn The Economic Times Best Seller in India’s Top Infra Focus - 2017 Mobile Cranes Challengers 2017 2017 a Iian-0cus BRANDS

17. Slide 17: Milestones

    ‘aunched Fork Tracks Became the fst Indian ‘Construction Equipment manufacturer to be accorded Ecetfcation Fastest Growing Construction Equipment Listing onthe Stock Eachanges - SE & NSE CENBCT 18 Emerging ncia Award Fastest Growing Construction Equipment Company Avard~ CIVNICMAR. Sold ist Tower Cra

18. Slide 18: Number of customers

    Customer base 15040 Key Customers 12010 8962 Number of customers 7320 5995 4722 … & many more high profile clients 3368 2065 1324 805 976 497 576 692 211 339 5 99 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2016 18

19. Slide 19: Cranes

    Cranes 19

20. Slide 20: Mobile Cranes

    Mobile Cranes  Current Capacity Classes 9 tonnes – 40 tonnes  High quality offering with equitable pricing  Market leader - 63% Market Share Product  Application – Versatile cranes that can be used  Operating at 75% capacity for a wide range of lifting needs, both on and off road Strategy Going

21. Slide 21: Crawler Cranes

    Crawler Cranes  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 Product used in heavy engineering, petrochemical industry,  No. 1 position in India ( upto 75 Tons ) power plant

22. Slide 22: Tower Cranes

    Tower Cranes  Maximum lifting heights of 300 metres and a working radius of up to 70 meters. Product  Used in construction of multi storey buildings  Market leading position (~60% and infra projects. share )  Current Capacity utilisation is 40%. Strategy Going Our Position Forward Market  To le

23. Slide 23: Forklifts

    Forklifts  Electric, Diesel and LPG operated Forklift Trucks  No. 3 player in the market - ~ 18% market share Product  Capacity Class : 1.5 tons - 10 tons  Expertise and capabilities available to achieve leadership position  Operating at 40% capacity Strategy Going Our Position Forward Market 

24. Slide 24: Road Construction Equipment

    Road Construction Equipment 24

25. Slide 25: Road Construction Equipment

    Road Construction Equipment   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.  Operating at ~ 25% -30% capacity utilisation.  Curre

26. Slide 26: Agriculture Equipment

    Agriculture Equipment 26

27. Slide 27: Tractor Industry in India

    Tractor Industry in India 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 • According to CRISIL Research, domestic tractor sales are expected to close

28. Slide 28: Tractors

    Tractors  Value for money products, offerings with latest features.  Presence across northern states of  Presence across product ranges in 35, 45 & 50 HP Haryana & Uttar Pradesh, focusing on PAN and now upto 90 HP category . India Presence. Product  Cash flow positive business with negative work

29. Slide 29: Range of Agriculture Equipment

    Range of Agriculture Equipment Tractors Wheel Harvester Track Harvester Rotavators 29

30. Slide 30: Presence

    Presence Punjab Delhi Uttar pradesh Bihar Jharkhand Madhya Pradesh Chhattisgarh Andhra Pradesh Just Open Karnataka Expanding Tamil Nadu Existing Operations 30

31. Slide 31: FINANCIALS

    FINANCIALS 31

32. Slide 32: P&L Perspective

    P&L Perspective (`cr) Net Operating Revenue (`cr) EBITDA 100 1200 100 1086 1000 80 800 751 615 598 637 60 48 600 40 40 31 32 400 20 200 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) PAT 60 (‘Rs) EPS 53 5 4.5 50 4 40 3 30 20 20

33. Slide 33: Balance Sheet Perspective

    Balance Sheet Perspective (`cr) Net Worth (`cr) Cash in Hand 450 50 48 406 400 357 38 350 40 310 300 256 30 251 30 28 250 26 200 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 (%) Return on Capital E

34. Slide 34: Lifting India's Infrastructure Growth

    Lifting India’s Infrastructure Growth 34

Action Construction Equipment — Investor Presentation (May 2018) on 6ix