Action Construction Equipment Limited · NSE:ACE
Action Construction Equipment — Investor Presentation (March 2022)
41 slides from Action Construction Equipment's investor presentation, March 2022
Slide 1: Corporate Presentation March 2022
Corporate Presentation March 2022 1
Slide 2: Table of Contents
Table of Contents I. ACE at a Glance III. Growth Drivers Sectoral Growth Drivers Evolving Opportunities II. Company Overview - Defence Sector Product Portfolio - Export Sector Manufacturing Facilities Indian and Global Presence IV. Business Overview Clientele Cranes ` R&D and Training Construction E
Slide 3: ACE At a Glance
ACE At a Glance Established Brand with over 27 years of Operating across Infrastructure, Construction, Industry Presence Manufacturing, Logistics and Agri sectors India’s most diversified Construction Equipment One of the world’s largest Pick & Carry Crane Manufacturer Manufacturer Pan India and Glo
Slide 4: Company Overview
Company Overview
Slide 5: Company Overview
Company Overview • ACTION CONSTRUCTION EQUIPMENT LIMITED was established in 1995 by a Financial Highlights (INR Mn) technocrat, Mr. Vijay Agarwal who has over 50 years of industry experience and is run by a team of experienced professionals. 13,522 12,425 11,603 11,286 10.08% • ACE is an established
Slide 6: Product Portfolio
Product Portfolio Cranes Pick & Carry Crane Lorry Loaders Crane Self Erecting Tower Crane Crawler Crane Truck Crane Tower Crane Construction Equipment Backhoe Loader Wheel Loader Soil Compactor & Tandem Vibratory Roller Motor Grader Material Handling Equipment Piling Rig Forklift Trucks Warehousing
Slide 7: Manufacturing Facilities
Manufacturing Facilities State-of-the-art production facilities based in the industrial townships of NCR, Haryana with a capacity Total Capacity (Units) to produce around 12,000 construction equipment and 9,000 Tractors annually. Agriculture Agriculture Equipment Equipment Cranes Cranes 9000 9000 Cr
Slide 8: Manufacturing Facilities
Manufacturing Facilities Engine Transmission Dudhola Plant Engine Assembly Machine Shop Fabrication Unit and Weld Shop Paint Line Spare Parts 8
Slide 9: Domestic Presence
Domestic Presence ACE has all India Sales and Service network operating out of all the major cities. Construction equipment dealer network in over 100 locations More than 200 Agri dealers across the country These outlets are further supported by company officials based at Delhi, Mumbai, Chennai, Kol
Slide 10: Global Presence
Global Presence Iraq Afghanistan Tunisia Nepal Bhutan Egypt Saudi Arabia India Mexico Myanmar Bangladesh Nigeria Oman Sudan Yemen Burkina Uganda Kenya Faso Tanzania Indonesia Bolivia Zimbabwe South Africa Argentina Exports to over 25 Countries Globally 10
Slide 11: Clientele
Clientele Key Infra Players Manufacturing Sector Government Sector 11
Slide 12: Strong R&D and Training Capabilities
Strong R&D and Training Capabilities ACE puts strong emphasis on Research and Development. Its R&D Centres at Faridabad and Palwal are recognised by DSIR – Government of India and perform the following activities R&D Center • Catalyse tech upgradation to meet International Standards of Safety and Qu
Slide 13: Board of Directors
Board of Directors Mr. Vijay Agarwal - Chairman & Managing Director Mr. Avinash Parkash Gandhi - Independent Director He is the promoter, Chairman & Managing Director of the Company. Mr. Agarwal is having over 50 He holds a Bachelor's Degree in Mechanical Engineering from Birla Institute of Technolo
Slide 14: Highly Experienced Management Team
Highly Experienced Management Team Rajan Luthra – CFO Manish Mathur – CEO – Cranes and Construction Equipment Joined in June’2010 as Chief Financial Officer Joined ACE in 1997 and under his leadership, ACE has been a dominant market leader in Experience: 38 years in companies such as ABB, Talbros Au
Slide 15: Our Journey and Key Milestones
Our Journey and Key Milestones 2016 • Introduced Skid Steer Loaders 2017 2006 • Introduced Range of Tractors and Material 2011 • IPO Listing Handling Equipment • Commenced in-house Manufacturing of • Ace won CNBC-TV18, Emerging India Crawler Cranes 2018 Award • Collaborated with Sunward for Pilling
Slide 16: Recent Awards
Recent Awards The Economic Times Business Leader of the Outstanding Employee North India Best Employer Bestseller in Mobile Cranes- Person of the Year Excellence in Engineering ACE Bags "Best Company in Best Company of the Engagement Prestigious Brand 2021 Year 2020 Award Award 2019 - 20 Equipment I
Slide 17: ACE Sustainability Framework
ACE Sustainability Framework SOCIAL • ACE Free Emergency Response Service • Subsidized Food Facility for ENVIRONMENT Needy • Installation of Rainwater • Subsidized Pathology Harvesting System Laboratory Services for Below Poverty Line Families • Installation of 1.8 MW Solar Power Plant at the • Trai
Slide 18: ACE Edge
ACE Edge Established Brand with over 27 years of Industry presence High Operational Efficiency with Low Fixed Cost Flexibility and Quick Change Adaptation Low Leverage with a Credit Rating of AA- (Stable)/A1+ by ICRA Highly Experienced and Professional Team Customer Relationships with In-depth Marke
Slide 19: Growth Drivers
ACE | Growth Drivers
Slide 20: Sectoral Growth Drivers
Sectoral Growth Drivers • The Centre has allocated Rs 19,130 crore in the Union Budget 2022-23 for various metro projects in the country. • Development of City Roads, Bridges, Flyovers, Elevated Road Corridors, Water Sewerage, Transmission Lines and Launch of PM Gati Distribution Infrastructure etc.
Slide 21: Sectoral Growth Drivers
Sectoral Growth Drivers • In the 2022-23 Union Budget, Ministry of Agriculture and Farmers' Welfare has been allocated Rs. 1,31,531 crore. The government has given a clear signal to rural India that it is committed to their cause. • Indian tractor market stands at ~8,00,000 units and is anticipated
Slide 22: Evolving Opportunities
Evolving Opportunities Increased Export Revenue coupled with opportunities in Defence Sector, and increasing utilisation levels of Construction Equipment and Agri business are moving the Company towards counter cyclical domain. • Indian Defence : Customised Cranes, Forklifts, Skid Steer Loaders, Mul
Slide 23: Evolving Opportunities – Defence Sector
Evolving Opportunities – Defence Sector 23
Slide 24: Evolving Opportunities - Exports
Evolving Opportunities - Exports Forma Range of Tractors Backhoe Loader – Phantom 4x4 ACE intends to increase the contribution of exports in total revenues to a significant share over the next 2-3 years Accordingly, ACE launched Forma Range of Tractors and Backhoe Loader “Phantom 4x4”, especially de
Slide 25: Business Overview
Business Overview
Slide 26: Cranes
Cranes Pick & Carry Cranes • Market leader – 63% + market share • Versatile equipment and are used for a wide range of lifting needs, both on and off roads • High quality offering with equitable pricing • Capacity class: 9 Tons to 30 Tons Average Selling Price: INR ~15.5 lacs • Sectors: Infrastructu
Slide 27: Cranes
Cranes Fixed Tower Cranes • Market Leader – 63% + market share • Application: Lifting, shifting, concreting and erection jobs at civil construction sites • Capacity Class: 5 Tons to 25 Tons (Lifting Heights: up to 300 meters) • Sectors: Infrastructure, Construction (especially Real Estate) Average S
Slide 28: Innovations
Innovations NXP Series – Multi Activity Cranes NX 3600 Series – Multi Activity Cranes FP-210 – Piling Crane • 2 Applications in Price of one machine • 2 Applications in Price of one machine • 2 in 1 Crane • Manlift cum Pick N Carry • Slew Crane cum Pick N Carry • Works as Pick & Carry Crane and can
Slide 29: Industry Overview
Industry Overview Cranes Crane Units (000’s)* • Asia Pacific Crane market is projected to register the highest CAGR from 2020 to 2027 owing to growing 3X construction activities in emerging economies, such as China, India, and the Philippines. • Key factors driving the demand mobile cranes market is
Slide 30: Construction Equipment
Construction Equipment Backhoe Loaders • Used for digging, moving, grading and loading earth and other loose aggregates • Backhoe Loaders come in both 2WD / 4WD configurations Average Selling Price: INR ~19 lacs • Cost effective, rugged and reliable • Sectors: Infrastructure, Construction, Mining, M
Slide 31: Industry Overview
Industry Overview Construction Equipment Indian Construction Equipment Industry Units (000’s) • Key factors driving the growth in Construction Equipment market is the rising investments in 3X infrastructure development 10%^ 250 • The growing population in emerging economies such as India has resulte
Slide 32: Material Handling Equipment
Material Handling Equipment Forklift • India’s leading Forklift Manufacturer. • ~ 23% + market share. • Capacity Class: • Diesel Forklift - 1.5 Tons to 35 Tons • Electric Forklift 1.5 Tons to 8 Tons Average Selling Price: INR 9~10 lacs • LPG Forklift – 2 Tons to 5 Tons • In collaboration with Doosan
Slide 33: Industry Overview
Industry Overview Material Handling Equipment • GDP growth, manufacturing expansion and mechanisation to enhance the market size. • Increased investments in Logistics and Warehousing activities to drive sales. • Manufacturing sector with US$ 1 trillion potential by 2025 will be another major driver
Slide 34: Agricultural Equipment
Agricultural Equipment Tractor • Used for agricultural activities, and also for construction and industrial haulage • Capacity Class: 35 HP to 90 HP (in both 2WD / 4WD configurations) • Around 200 dealers for tractor across India • Started with states such as Haryana, Uttar Pradesh, Rajasthan and Pu
Slide 35: Industry Overview
Industry Overview Agricultural Equipment • India is one of the largest tractor markets in the world, selling ~ 8,00,000 tractors per annum on average and the Indian tractors market is projected to witness a CAGR 4.5% between 2020 and 2025. • Government initiatives regarding rural development and far
Slide 36: Financial Overview
ACE Financial Overview
Slide 37: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Particulars (INR Mn) FY19 FY20 FY21 9M-FY22 Total Income* 13,522 11,603 12,425 11,286 Total Expenses 12,447 10,646 11,083 10,148 EBITDA 1075 957 1,342 1,138 EBITDA Margin (%) 7.95% 8.25% 10.80% 10.08% Depreciation 118 130 139 114 Finance Cost 115 147 122
Slide 38: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Equities & Liabilities (INR Mn) FY20 FY21 H1-FY22 Assets (INR Mn) FY20 FY21 H1-FY22 (A) Share Capital 227 227 238 (A) Property plant & Equipment 3,989 4,161 4,192 (B) Other Equity 4,199 5,005 6,678 (B) Capital Work in Progress 194 126 207 (C) Investment properti
Slide 39: Key Financial Highlights
Key Financial Highlights Total Income* (INR Mn) EBITDA and EBITDA Margins (INR Mn) PAT and PAT Margins (INR Mn) 13,522 798 1,342 1,138 696 1,075 10.80% 6.42% 12,425 957 560 6.17% 525 10.08% 11,603 7.95% 8.25% 11,286 4.14% 4.52% FY19 FY20 FY21 9M-FY22 FY19 FY20 FY21 9M-FY22 FY19 FY20 FY21 9M-FY22 Net
Slide 40: Capital Market Information
Capital Market Information Stock Market Performance (as on 31st December, 2021) 120% 100% 80% 60% 40% 20% 0% -20% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 ACE Sensex Shareholding Holding pattern as on 31st December 2021 Price Data (as on 31st December, 2021
Slide 41: Disclaimer
Disclamier Action Construction Equipment Limited 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
Action Construction Equipment — Investor Presentation (March 2022) on 6ix