Corporate Presentation-September, 2022

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith, Corporate Presentation September 2022 of the Company.

14 days ago

INVESTOR PRESENTATION

Tweet

Sentiments detected

Positive 68
  • Manufacturer Pan India and Global Presence in over Customer Centric Organization with 16,000+ 25 Countries strong Customer base

  • Wide Sales Network across 100+ Strong Manufacturing, Training and R&D Locations in India Capabilities Significant Growth Prospects in Ample Capacities in place to ensure Indian Infrastructure Sector Future Revenue Growth 3 Operating across Infrastructure, Manufacturing, Logistics andIndia’s most diversified Manufacturer Operating across Infrastructure, Manufacturing, Logistics andmost diversified

  • Strong R&D and Training Capabilities ACE puts strong emphasis on Research and Development.

  • He was previously associated as President of Hyundai Motors India has achieved overwhelming success in a short span of 26 years.

  • He has also served as Director- never tiring efforts, that the Company was able to achieve growth in the past.

  • Vashisht increased considerably.

  • Under her able guidance, the company has won many awards of excellence in the Delhi.

  • With her able guidance and support, the Emergency Medicine Technicians (EMTs) Sector” in 2019and “North India Best Employer Award” in 2020.

  • 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: 38years in companies such asABB, Talbros Automotive, Federal-Mogul (Goetze).

  • Education: Gold Medallist in Economics (H), Hansraj College, Delhi University Md Imteyaz Ahmed – Head Manufacturing – Agriculture Chetan Gole – CEO – Forklifts Experience: 38 years in the Agricultural Equipment division with Escorts Limited and M/S Associated with ACE for the last 15 years and under his leadership, the company has consistently Carraro India and led manufacturing verticals of assembly and testing of Tractors, Engines, increased its market share in the Indian Forklift market Transmissions and Axles Experience: 30 years in companies such as Elecon Engg. Ltd and Godrej & Boyce mfg. Co. Ltd Areas of Expertise: Project planning, implementation, plant engineering and facility Areas of Expertise: Project marketing, Business development in Capital goods (Material handling management.

  • Introduced Range of Tractors and Material - IPO Listing - Commenced in-house Manufacturing of Handling Equipment - Ace won CNBC-TV18, Emerging India Award Crawler Cranes 2018 2007 2012 •

  • Fastest Growing CE Company – CW- 2013 Truck Cranes and Next-gen Backhoe Loaders 1997

  • Recent Awards Transformative Trailblazing Leader India’s 20 Most Impactful Innovative Construction Equipment Best Seller in Mobile Cranes India’s Top Challengers

  • Best Company of the Year Material Ranked 223rd among the Next Best Training Initiative Award Brand Excellence-Construction India's Best Company of the Dream Companies to Work Appreciation Certificate for Best Resourcing Strategy

  • ACE Edge Established Brand with over 27 years of Industry presence High Operational Efficiency with Low Fixed Cost Flexibility and Quick Change Adaptation

  • Sectoral Growth Drivers - The Centre has allocated Rs19,130 crore in the Union Budget 2022-23 forvarious metro projects inthe country.

  • Shakti Plan, a Rs. 100 - INR 60,000 Cr allocated to provide tap water to 3.8 crore households in FY23 under ‘Har Ghar, Nal Se Jal’ Urban Infra • 100 Smart Cities being developed and rejuvenation of500 others.

  • - PLI in 14 sectors for achieving the vision of ’Atmanirbhar Bharat’ with the potential to have additional production ofRs.30 lakh crores during next 5 years.

  • Industrial Capex cycle has revived owingtoother initiatives such as‘Vocal forLocal’ and ‘China +1 Strategy.’

  • As per Budget 2022-23 Expansion of the National Highways network by 25,000 km in FY23, Rs 20,000 crore to be mobilised through innovative ways of financing. •

  • The Central Government awarded a total of 322 projects to construct more than 13,000 km roads under the 'Bharatmala Pariyojana’ and 3.71 lakh kmunder the PMGSY •

  • - Retail, hospitality, and commercial real estate are alsogrowing significantly, providing the much-needed infrastructure forIndia's growingneeds.

  • The vision of‘Housing ForAll’ and the ambitious PMAY will further bolster the growth in this segment.

  • The Government of - Indian tractor market stands at ~8,00,000 units and is anticipated to grow at a CAGR of 4.5% over the next five years owingtoincrease in demand formechanization in agriculture &logistics industry.

  • India has allocated - Budgetary allocation to Rural Development, Irrigation Projects and Subsidies coupled with credit availability will Agriculture induce increased demand.

  • Infrastructure - The deeper penetration into Tier II, III & IV towns and the National Logistics Policy promise an efficient and Logistics integrated logistics industry incoming years.

  • expected tospur the market growth through 2025.

  • Total supply ofwarehousing space islikely toalmostdouble by 2022 with the addition ofaround 200 million sq.ft.

  • Warehousing • Indian warehousing and logistics sector isexpected toattract ~$10 billion investments overthe next 4-5 years.

  • Airports - The capacity addition at ports isexpected togrowat aCAGR of5-6%till 2022, thereby adding 275-325 MT ofcapacity.

  • - Under the Sagarmala Programme, Government has envisioned a total of 189 projects for modernisation of ports involving an investment of Rs1.42 trillion (US$ 22billion) by the year 2035.

  • 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.

  • North Eastern States : Increased focus on Infra development.

  • 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 designed for International Markets

  • ACE’s products have been upgraded to new emission norms BS IV CEV which is at par with the European standards.

  • This will help the company increase its sales and open up new opportunities in international markets 24

  • Crawler Cranes - Market Leader (up to 75 Tons)

  • 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 the rising investments in infrastructure 5.29%^ development 22 - The Crane market is estimated to increase by 142% between FY20 and FY 25.

  • 17 ACE Strategy and Initiatives - Focus on increasing capacity utilisation from 60% .

  • - Capitalise on buoyant demand and strong replacement market.

  • - Gain market share in Truck Cranes by leveraging on strong brand equity.

  • - Capitalise on demand for bigger capacity Tower Cranes (Precast Construction).

  • - Increase the export contribution to revenue.

  • Indian Construction Equipment Industry Units (000’s) - Key factors driving the growth in Construction Equipment market is the rising investments in 3X infrastructure development - The growing population in emerging economies such as India has resulted in increased residential 10%^ 250 and commercial construction activities.

  • Additional Unlock - The construction machinery market has witnessed significant growth in the recent past, owing to 210 Potential the increased road development programs undertaken by the central and state government - Tier-2 / Tier-3 cities and rural areas witnessing increased use of Backhoe Loaders 130 84

  • FY30 Vision ^ 5 year CAGR - Backhoe loader is one of the key focus products for ACE due to significantly large addressable market size of INR 8,000 – 9,000 Crs - Leverage existing Sales & Service network to grow the Construction Equipment business India is the 3 rd largestCE market globally - Achieve an annual growth rate of over 50% for the next 3-5 years

  • The market volume is expected to grow 3x -

  • Tap the export potential – launched a new backhoe loader with Perkins engine for the European over the next 10 years Markets.

  • The CE market is expected to be one of the champion exportingsectorsfor India

  • FY22 Q1-FY23 Average Capacity Utilization – 80% 32

  • 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 for growth.

  • - Industrial capex cycle coupled with increased private sector participation and opening of FDI will expand the MHE market.

  • ACE Strategy and Initiatives - Target to increase market share to 25% over the next 2-3 years.

  • - Further increase penetration by increasing the Network and Customer touch points.

  • - Penetration into the premium segment with Doosan – Korea range.

  • - Increased penetration with Electric Forklifts – specially Food, Beverages and Pharma industry.

  • Already capturedmore than 10% market sharefor tractorsin Assam Agri Equipment Revenue (INR Mn)

  • 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 farm mechanization, along with other factors such as enhancing rural wages and scarcity of farm labour are likely to fuel the tractor demand over the long term.

  • - Government’s focus on doubling MSP and increased production of cash crops will enhance purchasing power of the farmers.

  • - Harvester segment is the second-largest application segment after Tractors, with the market in India projected to register a CAGR of 10.6% during 2020-2025, owing to the rise in agricultural activities and increased mechanisation.

  • - Large number of custom hiring centres are being setup across the country resulting in enhanced consolidated demand.

  • ACE Strategy and Initiatives - Strengthening Distribution Channel.

  • - Enhancing International presence – SAARC markets, Myanmar, Iraq ,Sudan, Tunisia, East Africa and Ethiopia.

  • - Launched Forma Range of tractors - dedicated products for international market - Increased market penetration with launch of Orchard Special Tractor (26 HP, 4 WD) and Next-gen Light-weight Harvesters.

Negative 0

    Mentioned Phrases & Organizations

    Important keywords detected (20+)

    india (42)
    equipment (39)
    market (39)
    construction (38)
    cranes (35)
    capacity (23)
    manufacturing (22)
    tons (21)
    ace (20)
    management (20)
    infrastructure (19)
    financial (18)
    logistics (18)
    experience (18)
    price (18)
    growth (16)
    business (16)
    industry (16)
    introduced (15)
    companies (14)

    Organizations identified (10+)

    Mordor Intelligence (7)
    Grand View Research (5)
    Delhi University (4)
    Crawler Cranes (3)
    Valorem Advisors (3)
    ACE (2)
    Palwal (2)
    Mechanical Engineering (2)
    Escorts Limited (2)
    ICEMA (2)

    Tables extracted (5)

    Particulars (INR Mn)FY19FY20FY21FY22Q1-FY23^
    Total Income* 13,522 11,603 12,425 16,446 5,226
    Total Expenses 12,447 10,646 11,083 14,781 4,570
    EBITDA 1,075 957 1,342 1,665 656
    EBITDA Margins (%) 7.95% 8.25% 10.80% 10.12% 12.55%
    Depreciation 118 130 139 154 47
    Finance Cost 115 147 122 138 21
    PBT 842 680 1,081 1,373 588
    Tax 282 155 283 323 135
    Profit after Tax 560 525 798 1,050 453
    PAT Margins (%) 4.14% 4.52% 6.42% 6.38% 8.67%
    Other Comprehensive Income - (2) 8 (4) -
    Total Comprehensive Income 560 523 806 1,046 453
    EPS (Diluted INR) 4.78 4.57 7.03 9.02 3.65
    Equities & Liabilities (INR Mn)FY20FY21FY22
    (A) Share Capital 227 227 238
    (B) Other Equity 4,199 5,005 7,303
    Non Controlling Interest 3 3 3
    Total - Shareholder Funds 4,429 5,235 7,544
    Non Current Liabilities
    (A) Financial Liabilities
    (i) Borrowings 295 202 -
    (ii) Lease Liabilities - 1 12
    (B) Provisions 35 19 23
    (C) Deferred tax liabilities (Net) 142 160 135
    Total - Non – Current Liabilities 472 382 170
    Current Liabilities
    Financial Liabilities
    (i) Borrowings 447 341 76
    (ii) Trade Payables 3,205 3,306 3,611
    (iii) Other Financial Liabilities 727 875 945
    (iv) Lease Liabilities - 2 5
    (D) Other current liabilities 232 380 418
    (E) Provisions 13 14 18
    (F) Current tax liabilities (Net) 11 18 37
    Total – Current Liabilities 4,635 4,936 5,110
    Total Equity and Liabilities 9,536 10,553 12,824
    Assets (INR Mn)FY20FY21FY22
    (A) Property plant & Equipment 3,989 4,161 4,372
    (B) Capital Work in Progress 194 126 243
    (C) Investment properties 122 120 118
    (D) Intangible assets 9 12 27
    (E) Financial assets
    (i) Investments 215 64 688
    (ii) Other financial assets 14 66 166
    (F) Other non-current assets 130 97 65
    (G) Non-current tax assets(Net) 1 1 -
    Total - Non – Current Assets 4,674 4,647 5,679
    Current Assets
    (A) Inventories 2,707 2,661 3,334
    (B) Financial assets
    (i) Investments 65 251 1,104
    (ii) Trade receivables 1,473 2,247 1,887
    (iii) Cash and cash equivalents 34 329 57
    (iv) Bank balances other than (iii) above 59 36 86
    (v) Other current financial assets 23 23 30
    (C) Other Current Assets 480 357 643
    (D) Current Tax Assets (Net) 21 2 4
    Total current assets 4,862 5,906 7,145
    Total Assets 9,536 10,553 12,824
    Price Data (as on 30 th June, 2022)
    Face Value (INR)2.0
    Market Price (INR)208.4
    52 Week H/L (INR)291.6/175
    Market Cap (INR Mn)24,816.9
    Equity Share Outstanding (Mn)119.1
    1 Year Avg. Daily Trading Volume ('000)750.2

    Features are experimental.