Action Construction Equipment Limited · NSE:ACE
Action Construction Equipment — Investor Presentation (November 2017)
31 slides from Action Construction Equipment's investor presentation, November 2017
Slide 1: India's No. 1 Mobile & Tower Crane Co.
ACE INDIA'S NO. 1 MOBILE & TOWER CRANE CO. Action Construction Equipment Ltd. = November, 2017 1
Slide 2: Who We Are
Who We Are India’s leading material handling and construction equipment manufacturing company Established brand with a significant presence across the Indian construction and infrastructure landscape Possessing a diverse product range - Mobile Cranes, Mobile / Fixed Tower Cranes, Loaders, Vibr
Slide 3: Our Philosophy
Our Philosophy Our Aspiration “To be the Leading Company in Cranes and Construction Equipment Sector, with a Global Focus” Mission Provide customers with latest technology, construction equipment and efficient sales and product support aimed at satisfying their real needs Integrated Enterprise Lever
Slide 4: Product Portfolio
Product Portfolio Cranes Self Erecting Mobile Tower Lorry Loader Cranes Pick and Carry Cranes Crawler Crane Fixed Tower Cranes Truck Mounted Cranes Cranes Road Construction Backhoe Loader Wheel Loader Soil Compactors & Tandem Vibratory Rollers Motor Graders Material Handling Forklift Truck Warehousi
Slide 5: Facilities
Facilities State of art production facilities Total owned area: 82 acres Present utilised area: 21 acres 5
Slide 6: Key Drivers
Key Drivers • Present government has given Increased focus on Infrastructure, Railways, Roads, Metro, Defence and Smart Cities • Increased Private sector participation and opening of FDI • Growing mechanization in the construction and manufacturing sectors • Ease of availability of finance for mater
Slide 7: ACE in the forefront
ACE in the forefront Future ready infrastructure • Under utilized manufacturing facilities in place for future revenue growth • Present utilization levels - 50%, no further major CAPEX envisaged • Establishing new product categories Ability to compete with the best • Quality focus • Products competi
Slide 8: Opportunity
Opportunity Motor graders Pick and Construction, Railways, Carry Cranes Metro, Urban Infra Roads, Crawler Cranes Ports, Steel, Cement, Pipelines, Power Backhoes Refineries Infrastructure Projects, and Hydel Projects Agriculture Tower The future economic Cranes drivers Engineering Road Industry, Agri
Slide 9: ACE Edge
ACE Edge Value for Highly money capable and propositions qualified management Extensive Established & range of Well regarded products Brand Name 9
Slide 10: Edge: Value for money proposition
Edge Value for money proposition • Quality value for money product offerings: latest technology at competitive price points. • Offering the fastest after-sales product support. • Customer Centric Solutions presale guidance to service beyond the guarantee period. • Focused on increasing the sales and
Slide 11: Edge: Highly capable and qualified management
Edge Highly Md Imteyaz Ahmed capable and Head – Agri division qualified Qualification – M.Tech (Engineering) management Industry Experience – 35 years Vijay Agarwal Chairman & Managing Director Sorab Agarwal Ashok Tomar Qualification - BE (Mech Engg), MBA, Executive Director Head – Tractors Industry
Slide 12: Edge: Established & Well regarded Brand Name
Edge Established & Well regarded Brand Name India’s largest Mobile Crane and Tower Crane Company “ACE” brand name synonymous for product excellence, superior quality, product support and customisation ISO 9001 certified - stringent quality standards for design, development, procurement, manufa
Slide 13: Edge: Expansive range of products
Edge Widest range of products - High end specifications & capacities at reasonable price points translates to improved efficiency and productivity for customer ACE equipment is rugged, cost effective and simple to maintain “R&D” Department ( DSIR – GOVT. of INDIA approved ) works continuously
Slide 14: Awards 2017
Awards 2017 cE ACER Ss Se ua tuan o RAT Equipment 3 wegevaeowe | INFRAGIOISTES run CONSTRUCTION Won BRANDS, India’s 70 India’s The Economic Times Best Seller in India’s Top most trusted most trusted Infra Focus - 2017 Mobile Cranes Challengers Power Brands 2017 Company 2017 2017 ‘Graton os We expres
Slide 15: Milestones
= taanched Fort Trucs = came te ist Incan Constrtion Equipment manufacturer to be accorded Ccertficaton + Fastest Growing Construction Equipment {Company Award CW.NICMAR = Uting onthe Stock Exchanges - BSE & NSE] 5 CNOCTY 18 Emerging Ind Award + Fastest Growing Construction Equipment Company Award =
Slide 16: 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 5 211 339 99 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2016 16
Slide 17: Cranes
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Slide 18: Mobile Cranes
Mobile Cranes Current Capacity Classes 3 tons – 20 tons Market leader - 63% Market Share Product High quality offering with equitable pricing Operating at 50% capacity Application – A very versatile crane that can be used for a wide range of lifting needs, both on and off road Strategy Goi
Slide 19: Crawler Cranes
Crawler Cranes Capacity Class - 25 Tons – 75 Tons Application - Crawler cranes have the highest Product lifting capacity in any type of mobile cranes, No. 1 position in India ( upto 75 Tons ) primarily used in heavy engineering, petrochemical industry, power plant construction, Presently ope
Slide 20: 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 of 40% Strategy Going Our Position Forward Market Capacit
Slide 21: Forklifts
Forklifts Battery operated, Diesel operated trucks and LPG No. 3 player in the market - ~ 18% operated Forklift Trucks market share Product Expertise and capabilities Capacity Classes 1.5 tons - 10 tons available to achieve leadership position Strategy Going Our Position Forward Market Key
Slide 22: Road Construction Equipment
Road Construction Equipment 22
Slide 23: Road Construction Equipment
Road Construction Equipment Value for money products, offering with latest technology Application - Backhoe and Wheeled Loaders are used for digging, moving, grading and loading earth and other loose aggregates, also find application in industrial and mining Operating at ~ 25% capacity utilisa
Slide 24: Agriculture Equipment
Agriculture Equipment 24
Slide 25: 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
Slide 26: 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 workin
Slide 27: Range of Agriculture Equipment
Range of Agriculture Equipment ACE Tractor Wheel Harvester Track Harvester Rotavator 27
Slide 28: Presence
Presence Punjab Delhi Uttar pradesh Bihar Jharkhand Madhya Pradesh Chhattisgarh Andhra Pradesh Just Open Karnataka Expanding Tamil Nadu Existing Operations 28
Slide 29: Financials
FINANCIALS 29
Slide 30: P&L Perspective
P&L Perspective (`cr) Net Sales (`cr) EBITDA 1,000 80 800 729 614 60 50 609 600 587 428 40 40 32 400 31 31 200 20 0 0 31/3/2014 31/3/2015 31/3/2016 31/3/2017 30/09/2017 31/3/014 31/3/2015 31/3/2016 31/3/2017 30/09/2017 (`cr) Net Profit (`Rs) EPS 50 5 40 4 30 3 20 20 15 2 9 1.4 1.3 10 7 0.7 4 1 0.7 0
Slide 31: Balance Sheet Perspective
Balance Sheet Perspective (`cr) 344 350 Net Worth 310 321 (`cr) Cash in Hand 38 38 300 30 28 30 26 251 256 250 25 200 20 150 15 100 10 50 5 0 31/3/2014 31/3/2015 31/3/2016 31/3/2017 30/9/2017 0 31/3/2014 31/3/015 31/3/2016 31/3/2017 30/9/2017 (`cr) 1584 (`cr) 1600 Net Debt Market Cap 160 150 140 138
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