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1 0 October 2011 Company Presentation

2 1 1.Industry Opportunity 2.Business + Management 3.Financial Snapshot 4.Growth Strategy

3 2 Industry: Mill Internals High Chromium wear resistant parts for grinding & crushing equipment

4 3 Industry: Mill Internals (cont’d) Grinding Media LinersDiaphragm Rollers & Table linersBlow bars / HammersDipping Tubes Cement & Mining as key end-user industries

5 4 Process Critical Input for Grinding Non availability Product failure Grinding Operations can come to a halt Leads to Optimal design for given application Consistent end product quality Increased production volume Reduce process costs A small component of grinding cost, but essential for continuous production

6 5 Industry Size & Scope Global market for Mill Internals for mining and cement sectors estimated at 3 mn MT (Rs 125 bn) 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 Demand driven by new projects and replacement for wear parts Industry moving from cost of parts to total cost of ownership, driving innovation in product development and total solutions –Move from forged grinding media to high chrome cast media –Total solutions include design of parts, metallurgy to meet the specific requirement of the material being ground – varies from plant to plant

7 6 Industry size Mining Sector Demand at 2.4 mn MT Cement Sector Demand at 300,000 MT

8 7 1.Industry Opportunity 2.Business + Management 3.Financial Snapshot 4.Growth Strategy

9 8 Company Overview AIA Engineering Limited (‘AIAE’ ) promoted by Mr Bhadresh Shah, a first generation entrepreneur, began operations in 1978 A niche manufacturer of impact / abrasion / corrosion resistant high chrome castings with rated capacity of 200,000 MT per annum Products include grinding media, liners, diaphragms etc for cement, mining & utility industries, with focus on application and end to end solutions Strong focus on metallurgy, process technology – for product development and process improvement to facilitate total solutions to customers –Basic know how through collaboration (1991 to 2000 ) with M/s Magotteaux, Belgium –Collaboration with Southwestern Corp, UK for process improvements (vertical mills) Global marketing presence, through 100% owned subsidiaries / branches in USA, UK, ME, Australia, South Africa, China, Egypt, Brazil, Canada and Philippines. –Supply contracts with global cement majors like Holcim, Lafarge, Cemex, FL Smidth. Anglo Platinum, Rio Finto, CVRD, Arcelor Mittal, BHP Billiton. –Domestic customers include leading cement manufacturers, mining companies, major thermal power plants and OEMs

10 9 1978 - 1985 Initial years 1985 - 1991 Develop high chrome application s 1991 - 2001 Foreign Joint Venture 2001 onwards Indepen- dent global foot print Milestones 2005 IPO 2008 100K Mt plant fully commi- ssioned 2009 $ 200 million revenue mark

11 10 AIA Engineering – A Total Solution Provider Metallurgy Design Application MD A MD A M M D D A A Application : Working Conditions Design of Part Physical & Metallurgical Properties

12 11 Manufacturing Process

13 12 Marketing International marketing presence – under ‘Vega’ brand –Wholly owned subsidiaries and offices covering USA, UK, Middle East, Australia –Technical team in key offices servicing customer requirements –Established relationships with industry majors / technology suppliers Holcim, Lafarge, Cemex, FL Smidth. Anglo Platinum, Rio Finto, CVRD, Arcelor Mittal, BHP Billiton. –Now focusing on opportunities available in global mining & utility sectors Domestic business spread across cement and utility/mining sectors –ACC Limited, Gujarat Ambuja Cement Ltd., Ultra-tech Ltd., Grasim Industries Ltd., etc- in cement segment –Kudremukh Iron Ore Company Ltd., Hy-grade Pellets, Hindustan Zinc, Bharat Aluminium Company-in mining segment –Major thermal power plants and OEMs in the utility segment

14 13 Total Solutions Approach = Long Term Client Relationships

15 14 Organisation Structure AIAE Welcast Steels Limited (WSL) Vega, ME Vega, UK Vega, USA Manufacturing SubsidiariesMarketing Subsidiaries Background Production & Sales WSL is a listed entity. AIAE holds 72% of its equity 100% Subsidiary of AIAE Vega, ME owns 100% of Vega UK Vega, UK owns 100% of Vega USA Manufact- ures Grinding Media Direct Sales to Asia (ex- India), Africa (ex- RSA), South America Direct Sales to North America and part of Central America Direct Sales to European Region 200,000 MT manufacturing capacity Domestic & International Sales Operations Vega, RSA Vega, China Vega, ME owns 100% of Vega, RSA Vega, ME owns 100% of Vega, China Direct Sales in China Direct Sales in South Africa DCPL Foundries Pvt. Ltd. DFPL is a unlisted entity. AIAE holds 70% of its equity Manufact- ures Grinding Media

16 15 1.Industry Opportunity 2.Business + Management 3.Financial Snapshot 4.Growth Strategy

17 Consolidated Financials ( In USD ) 16 PARTICULARSFY 07FY08FY09FY10FY11Q1,12 Sales12017320121125659 EBIDTA324953586214 EBIDTA / Sales (%)27%28%27% 24% Interest100000 Depreciation234562 Tax81115 143 NP after minority interest22333438419 PAT / Sales (%)18%19%17%18%16% Capital Employed119159164206245256 Networth113152 201237243 ROCE (%)26%29%30%26%23%20%** RONW(%)19%22% 19%17%14%** ** Annualised

18 17 PARTICULARSFY 07FY08FY09FY 10FY 11Q1,12 Sales52306912102339497113692642 EBIDTA14071955271726112738617 EBIDTA / Sales (%)27%28%27% 24%23% Interest24172114196 Depreciation8213620322725469 Tax346460750659629150 NP after minority interest9431333173617071834391 PAT / Sales (%)18%19%17%18%16%15% Capital Employed51846379832492801095011499 Networth49186100772690211052110953 ROCE (%) (EBIDTA-DEP/CE)26%29%30%26%23%20%** RONW(%) (PAT/NW)19%22% 19%17%14%** Consolidated Financials ( Rs. In Millions) ** Annualised

19 18 1.Industry Opportunity 2.Business + Management 3.Financial Snapshot 4.Growth Strategy

20 19 Growth Strategy Expand focus on global mining & utility segments Capitalize further on predominant position in Cement globally Increased R&D focus to further strengthen total solutions capabilities Focus on strategic relationship / commercial partnerships with international partners to gain access to newer markets Exploring backward integration opportunities for sourcing of certain key inputs and setting up a power plant

21 20 Proposed Capacity & Plans 115,000 Capacity in tons Implementation Further expansion of manufacturing capacity to 300,000 tons) 65,000 115,000 165,000 FY 2010-2011 200,000 Dec - 2005June - 2007April - 2008

22 21 Thank You

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