Slide 1: Full Year Results Presentation 30 June 2006
Full Year Results Presentation 30 June 2006 The Verticon Group provides construction services and equipment hire to the building industry through a variety of projects in the high-rise, large commercial, residential and engineering sectors. Through acquisition and a broadening of its services and pr
Slide 2: Results
Results » Revenue $49.96m / EBITDA $11.04m / NPAT $1.69m » Financial performance and results were disappointing » Acquired Daniel Smith Industries (NZ) for $41.53m » Acquired Fire Up Cranes & Rigging (NSW) for $5.08m » Restructure of senior executive team » Key new business partnerships established
Slide 3: Financial Performance
Financial Performance Full Year Revenue 49.96 EBITDA 11.04 EBITDA % 22.1% EBIT 6.15 EBIT % 12.3% NPAT 1.69 NPAT% 3.4% EPS Basic 2.7 EPS Adjusted 2.7 3
Slide 4: Financial Position
Financial Position Full Year Cash 0.30 Receivables 13.73 Plant & Equipment 82.53 Intangibles 15.59 Other 2.28 Total Assets 114.43 Payables 5.04 Deferred Vendor Payments 8.38 Borrowings 47.26 Provisions 0.96 Other 1.65 Total Liabilities 63.29 Net Assets 51.14 4
Slide 5: Cashflow
Cashflow Full Year EBITDA 11.04 Net interest (2.74) Income tax paid (1.88) Movement in operating net assets (2.16) Net operating cashflow 4.26 Capital expenditure (10.04) Business acquisitions net of cash (36.88) Sale of property, plant & equipment 2.25 Net investing cashflow (44.67) Proceeds of bor
Slide 6: Capital Expenditure
Capital Expenditure Full Year Growth 8.72 Replacement 1.32 Acquisition 36.88 Total 46.92 6
Slide 7: Overview
Overview Tower Mobile Hoists Staff Cranes Cranes Queensland 71 5 31 135 New South Wales 12 2 13 38 Victoria 14 3 - 14 Total Australia 97 10 44 187 New Zealand 21 31 3 20 Total Group 118 41 47 207 7
Slide 8: Crawler Crane
Crawler Crane 8
Slide 9: Tower Crane
Tower Crane 1 Re AAN y LENA SS | —- an ve.<vam" =— vaw bate:
Slide 10: Man & Material Hoist
Man & Material Hoist 10
Slide 11: New Systems
New Systems » Asset Management System • Enhanced asset tracking and utilisation • Maintenance management system » Accounting & Project Costing System • Improved identification of project and asset profitability • Increased management reporting » Shared Services • Increased controls and efficiencies
Slide 12: Full Year Results
Full Year Results » Competitive commercial market » Labour margins reduced on high-rise projects » Activity slowed in Queensland and Victoria » Poor management of the VIC business + bad debts » VIC business to be rebuilt using Convention Centre project » Ongoing relocation of under utilised fleet »
Slide 13: Revenue Segments
Revenue Segments Australia New Zealand Revenue 42.52 7.44 % Wet Hire 79% 48% % Dry Hire 21% 52% 13
Slide 14: Management
Management Board Rob Lockett Managing Director Denis Tomasel Executive Director Andrew Torrington Chief Financial Officer Rod Samirni Daniel Smith Stephen Gunn Jason Redman Mick Martyn General Manager QLD General Manager NZ Operations Manager General Manager NSW General Manager VIC Nv. 14 NERTICON
Slide 15: Strategy
Strategy » Consolidate tower crane and hoist industry by acquisition » Increase market share in targeted geographical markets » Expand and grow alliances with major construction and engineering companies » Transition group competencies across other services and into new sectors 15
Slide 16: Outlook
Outlook » 2006-07 a year of recovery » Impact of strategies will be seen in second half of 2006-07 » Melbourne Convention centre project ($4.2m revenue) » Austexx and Contexx strategic partnership (AUS & NZ) » Growing of the Hoist division » Potential acquisition in New Zealand 16
Slide 17: Questions
Questions ~y- uv NERTICON