0 Sept 2009 Company Presentation

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

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

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

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

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

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

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

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 165,000 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 and Philippines –Supply contracts with global cement majors like Lafarge of France, Cemex of Mexico and Holcim of Switzerland & commercial relationships with OEMs like F L Smidth of Denmark –Domestic customers include leading cement manufacturers, mining companies, major thermal power plants and OEMs

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

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

11 Manufacturing Process

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 cement majors / technology suppliers Holcim (Switzerland), Lafarge (France), Cemex (Mexico), FL Smidth –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

13 Global Footprint in 75 countries Countries where AIA/Vega products are sold

14 Total Solutions Approach = Long Term Client Relationships

15 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 Vega, ME owns 100% of Vega UK Vega, UK owns 100% of Vega USA Manufactures Grinding Media Sells directly to AIAE and to its customers Direct Sales to Middle East, South East Asia and South America Direct Sales to North America and part of Central America Direct Sales to European Region, Russia, Africa, Turkey and other erstwhile CIS Countries 165,000 MT manufacturing capacity Domestic & international sales operations

16 AIA/Vega Global Presence Offices being opened in 2009

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

18 Consolidated Financials ( In INR ) ** Annualised Rs.in Millions PARTICULARSFY 05FY 06FY 07FY08FY09 Sales EBIDTA EBIDTA / Sales (%)16%23%27%28%27% Interest Depreciation Tax NP after minority interest PAT / Sales (%)9%13%18%19%17% Capital Employed Networth ROCE (%) (EBIDTA-DEP/CE)29%26% 29%30% RONW(%) (PAT/NW)25%19% 22%

19 Consolidated Financials ( In USD ) ** Annualised USD in Millions PARTICULARSFY 05FY 06FY 07FY08FY09 Sales EBIDTA EBIDTA / Sales (%)16%23%27%28%27% Interest11100 Depreciation12234 Tax NP after minority interest PAT / Sales (%)9%13%18%19%17% Capital Employed Networth ROCE (%)29%26% 29%30% RONW(%)25%19% 22%

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

21 Growth Strategy Expand focus on global mining & utility segments Capitalize further on predominant position in Cement in India & global markets 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

22 Proposed Capacity & Plans 115,000 Capacity in tons Implementation Further expansion of manufacturing capacity (by de- bottling to 200,000) 65, , ,000 FY ,000 Dec June April

23 Thank You