Slide 1: Intimation of Analyst/Institutional Investors Meet
AlA Engineering Limited June 1, 2019 To, To, The Manager (Listing), The Manager (Listing), The BSELimited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, "Exchange Plaza", C-l, Block - G, Dalal Street, Bandra-Kurla Complex, Bandra (E) Mumbai - 400001 Mumbai - 400051 Script Code:
Slide 2: AIA Engineering Limited Company Presentation June 2019
AIA Engineering Limited Company Presentation JUNE 2019 1
Slide 3: Disclaimer/Safe Harbor
Disclaimer/Safe Harbor Cautionary statement regarding forward-looking statements This presentation may contain certain forward-looking statements relating to AIA Engineering Ltd. (“AIA”, or “Company” or “AIAE”) and its future business, development and economic performance. These statements include d
Slide 4: Contents
Contents Sections 1. Industry Opportunity 3 - 12 2. Introduction 13 -14 3. Company Overview 15 – 23 4. Financial & Operational Snapshot 24 – 25 3
Slide 5: Cement Industry: Tube Mill Internals
Cement Industry: Tube Mill Internals High Chromium wear resistant parts for grinding & crushing equipment 4
Slide 6: Cement Industry: Tube Mill & Vertical Mill Internals
Cement Industry: Tube Mill & Vertical Mill Internals (cont’d) Grinding Media Liners Diaphragm Rollers & Table liners Blow bars / Hammers Dipping Tubes Cement as key end-user industries 5
Slide 7: Mining Industry: Tube Mill Internals
Mining Industry: Tube Mill Internals Grinding Media Liners Mining Industry - key growth driver 6
Slide 8: Thermal Industry: Vertical Mill Internals
Thermal Industry: Vertical Mill Internals Rollers & Table liners Bull ring segment Thermal Business 7
Slide 9: Cement Industry - Process Critical Input for Grinding
Cement Industry - Process Critical Input for Grinding • Consistent end product quality Optimal design for • Increased production volume given application • Reduce process costs A small component of grinding cost, but essential for continuous production Non availability Grinding Operations can come t
Slide 10: Cement Industry Size
Cement Industry Size Estimated Estimated Segment wise Cement Consumable Cement Sector demand - 300,000 MT Production (mn per annum Wear Parts (MT) MT) World wide 1500 180,000 China 1000 120,000 Total 2500 300,000 9
Slide 11: Cement Industry Size & Scope
Cement Industry Size & Scope • Global market of Mill Internals for cement sector estimated at 300,000 MT and growing at 4-5% per annum Mill internals are consumables in grinding mills Their design and properties (abrasion, corrosion, impact resistance) are critical to grinding process efficiency
Slide 12: Mining Industry Size
Mining Industry Size India 25 KT Consumable wear part demand in mining sector estimated to be 3 mn MT 11
Slide 13: Mining Industry Size & Scope
Mining Industry Size & Scope • Global market of Mill Internals for mining sector estimated at 3 mn MT Mill internals are consumables in at primary, secondary and tertiary grinding mills in a typical mining process circuit • Demand driven by benefits of High Chrome and replacement of wear parts in
Slide 14: 2. Introduction
aD AIA Engineering Ltd. 2. Introduction 13
Slide 15: 2.1 Introduction
2.1 Introduction AIA currently has current capacity to manufacture 340,000 MT of high chromium wear parts and pursuing capacity expansion program to reach 490,000 MT. In this presentation we have shared an overview and AIA Engineering (“AIA”) in the following three sections: – Company overview –
Slide 16: 3. Company overview
aD AIA Engineering Ltd. 3. Company overview 15
Slide 17: 3.1 Niche player with Global footprint
3.1 Niche player with Global footprint Description Milestones 2001 Exit from JV : Capacity 20,000 Mt • Core Competence: Design, develop, manufacture and service impact, abrasion 2008 Commissioned 100,000 Mt Grinding Media Plant and corrosion resistant castings • Focus: 2009 Started supply to Mining
Slide 18: 3.2 Business Approach- Unique Method
3.2 Business Approach- Unique Method Application Customer Satisfaction Metallurgy Design Application Understanding size reduction parameters of the crushing/milling equipment in view of optimization of grinding process and maintenance costs Design Precise design for the perfect application Tak
Slide 19: 3.3 Well poised to leverage volume recovery with capacity in place
3.3 Well poised to leverage volume recovery with capacity in place Capacity (MT) Plant locations Current installed Proposed addition Total capacity post capacity (Greenfield) addition Media: 100,000 340,000 490,000 Linings: 50,000 MTPA FY18 FY19 FY20E Ahmedabad Installed capacity 340,000 340,000 390
Slide 20: 3.4 AIA Group Structure
3.4 AIA Group Structure AIA ENGINEERING LIMITED VEGA INDUSTRIES (MIDDLEAST) FZC VEGA INDUSTRIES VEGA INDUSTRIES VEGA INDUSTRIES WUXI VEGA AIA GHANA VEGA INDUSTRIES, CHILE SPA, CHILE LTD, UK (RSA) PTY LTD, RSA TRADE CO. LTD, Limited INDONESIA CHINA VEGA INDUSTRIES LTD.,USA 19
Slide 21: 3.5 Global Logistic Network
3.5 Global Logistic Network RSA USA UK AIA-Warehouses Netherlands Australia Ghana 20
Slide 22: 3.6 Well laid out strategy to tap the market
3.6 Well laid out strategy to tap the market Increased R&D focus to further strengthen total solutions capabilities To develop Continue to build solutions of on predominant improved wear position in cement parts for crushing globally with and grinding strategic focus on equipment emerging markets an
Slide 23: 3.7 Growth Strategy – Focus on Mining Industry
3.7 Growth Strategy – Focus on Mining Industry Annual replacement market in Mining Industry which can be targeted as estimated to be around 3 million TPA. High chrome penetration is less than 15%, hence large conversation opportunity available for growth. AIA passes significant benefits to min
Slide 24: Mill Liners Opportunity
Mill Liners Opportunity Solution with improved mill lining design (JV with a US based Company) Mill linings designed under this initiative will offer improvements in: Throughput of mill Power consumption Global market of 300,000 MT Company is setting up a Greenfield facility with rated c
Slide 25: 4. Financial & Operational Snapshot
4. Financial & Operational Snapshot 24
Slide 26: 4.1 Financial overview: Performance Indicators
4.1 Financial overview Performance Indicators Sales Growth (INR) m EBIDTA (INR) m and EBIDTA margin (%) 35,000 9,000 29674 7390 5044 7808 30,000 8,000 6680 6885 13525 23962 7,000 6575 25,000 22392 21078 20531 6,000 20168 11362 5044 34%3316 20,000 16882 5,000 2739 33% 2866 27% 25%25% 15,000 4,000 331
Slide 27: Thank You
Thank You 26