Boom Logistics Ltd · ASX:BOL
Boom Logistics — Shareholder Meeting (October 2008)
40 slides from Boom Logistics's shareholder meeting presentation, Oct 24, 2008
Slide 1: Annual General Meeting 24 October 2008
For personal use only Annual General Meeting 24 October 2008 Chairman John Robinson
Slide 2: Introduction
Introduction For personal use only Overview of the FY08 financial year. Rapid growth has obscured underlying integration problems and resulted in changes to business structure. The issues emerged in December Quarter of the 2008 year and are being addressed. Detailed analysis revealed prior period er
Slide 3: Correction of prior years balance sheet adjustments
Correction of prior years balance sheet adjustments – Balance Sheet Impacts For personal use only 1H08 Prior Current Total Intangibles - - - Property, Plant & Equipment (12.5m) (4.1m) (16.6m) Tax impacts 3.8m 1.2m 5.0m Total 1H08 Adjustment (8.7m) (2.9m) (11.6m) 2H08 Prior Current Total Intangibles
Slide 4: Chief Executive appointment
Chief Executive appointment For personal use only Brenden Mitchell B.Sc (Chem), B. Bus Brambles Limited 12 years Cleanaway 6 years Most recently, Director Municipal Operations, Brambles Cleanaway, UK Business Unit turnaround ($550m turnover and 6,000 employees) CHEP 6 years Last role, General Manage
Slide 5: Revenue growth
Revenue growth For personal use only $ 450.0 m $ 400.0 m $ 350.0 m $ 300.0 m $ 250.0 m $ 200.0 m $ 150.0 m $ 100.0 m $ 50.0 m $ 0.0 m 2004/05 2005/06 2006/07 2007/08 Providers of Lifting Solutions to Australia
Slide 6: Net Profit after Tax (prior to FY08 accounting adjustments)
Net Profit after Tax (prior to FY08 accounting adjustments) For personal use only $ 40.0 m $ 35.0 m $ 30.0 m $ 25.0 m $ 20.0 m $ 15.0 m $ 10.0 m $ 5.0 m $ 0.0 m 2003/04 2004/05 2005/06 2006/07 2007/08 Providers of Lifting Solutions to Australia
Slide 7: Dividends per share
Dividends per share For personal use only 12 c 10 c 8c 6c 4c 2c 0c 2003/04 2004/05 2005/06 2006/07 2007/08 Providers of Lifting Solutions to Australia
Slide 8: Quarterly NPAT results
Quarterly NPAT results (prior to FY08 accounting adjustments) For personal use only $ 10.0 m $ 9.0 m $ 8.0 m $ 7.0 m $ 6.0 m $ 5.0 m $ 4.0 m $ 3.0 m $ 2.0 m $ 1.0 m $ 0.0 m Q1 07/08 Q2 07/08 Q3 07/08 Q4 07/08 Q1 08/09 Providers of Lifting Solutions to Australia
Slide 9: Summary of syndicated borrowings
Summary of syndicated borrowings For personal use only • nabCapital, GE Capital and BankWest • $175m 3 year revolving debt facility • $32m 3 year working capital facility • Majority of favourable interest rates preserved • Average rate of approximately 9% • Commitment to debt reduction Providers of
Slide 10: Managing Director Brenden Mitchell
For personal use only Annual General Meeting 24 October 2008 Managing Director Brenden Mitchell
Slide 11: FY08 results
FY08 results For personal use only $m 2008 2007 % Actual Restated change Financial performance Operating Revenue 410.3 350.0 17% EBITDA 90.0 96.8 (7%) EBIT 47.5 62.9 (24%) Net Profit After Tax 18.6 34.4 (46%) Earnings per share (cents) 10.9 20.2 Dividend per share (cents) 5.5 11.0 Providers of Lifti
Slide 12: FY08 Financial position
FY08 Financial position For personal use only Year Ended 30 June 2008 ($m) FY08 FY07 • Restated FY07 comparatives. Actual Actual • Total Asset position is $25m Cash 1.8 9.8 higher after: Receivables 77.1 66.2 Inventories 20.6 21.4 – Net $20 million write down Plant & equipment 378.6 356.9 – $38 mill
Slide 13: Debt Reduction
Debt Reduction For personal use only • A rigorous capital allocation process and discretion and reduction in overall capital spend • Asset Sales where appropriate (non-core or low utilisation assets) • Excess from strong cash flows will pay down debt Providers of Lifting Solutions to Australia
Slide 14: FY08 issues
FY08 issues For personal use only • Growing too fast – reflected in overhead increases and gross margin erosion ($6m) • WA contracted cross hire expense for casual hire revenue ($2m) • Boom Sherrin / Moorland integration ($2m) • Underperforming capital investment – Boom Sherrin ($3m) • Crane hire sy
Slide 15: Actions
Actions For personal use only • Overheads investment focusing on margin improvement • Cross Hire - back to back agreements and long term forecasting • Sherrin / Moorland – systems issue remedied, revenue recovery required • Systems – Core crane customer interface implementation between January – Jun
Slide 16: Market Focus
Market Focus For personal use only • Capital intensive industries requiring specialist maintenance services. • Major infrastructure projects delivery. • Travel Towers and high value access equipment where our people, capability and equipment mix has given us the market leadership position. • Crane s
Slide 17: Leadership team
Leadership team For personal use only Brenden Mitchell Chief Executive Officer Iona MacPherson Peter O’Shannessy Paul Martinez Chief Financial Officer Chief Information & Company Secretary Chief Operating Officer Officer Tony Spassopoulos Rosanna Hammond Executive General Manager Sales & General Man
Slide 18: Our Goals
Our Goals For personal use only • To be the safest and Leading lifting solutions company in Australia and equal to the best in the world. • To be recognised as a top performing company of high standing and integrity delivering superior value for our customers, people and shareholders. • To be respec
Slide 19: What's important to us
What’s important to us For personal use only • Safety Always – people, community, equipment, property, environment. • Our Customers – they provide our living and we want them to succeed. • Our People – our diversity and different skills make us strong. • Teamwork – look out for each other, contribut
Slide 20: Q109 results
Q109 results For personal use only Achieved Funding for 3 Years Providers of Lifting Solutions to Australia
Slide 21: Q109 results - NPAT
Q109 results - NPAT For personal use only $ 8.0 m $ 7.0 m $ 6.0 m $ 5.0 m $ 4.0 m $ 3.0 m $ 2.0 m $ 1.0 m $ 0.0 m Q4 07/08 Q1 08/09 Providers of Lifting Solutions to Australia
Slide 22: Q109 results
Q109 results For personal use only $m Q4 FY08 Q1 FY09 % Actual Actual change EBIT $M $M James Equipment 1.8 1.3 (27.7%) Crane Hire 9.3 13.8 48.3% Boom Sherrin 4.6 4.7 2.2% National Office (3.6) (4.1)* (13%) Total 12.1 15.7 29.7% * - incorporating $0.5m of one-off costs Providers of Lifting Solutions
Slide 23: Market and Business opportunities
Market and Business opportunities For personal use only • The resources and major infrastructure project pipeline • The underlying contract maintenance work we carry out • Crane sales and services with the strength of the Tadano Brand and opportunities for second hand crane sales • Driving sales and
Slide 24: Risks in a turbulent market
Risks in a turbulent market For personal use only • An overall slow down in the resources and infrastructure sectors • Major shutdown work being delayed • Potential impact of the exchange rate on new crane sales and capital costs • Slower recovery in the Boom Sherrin business • Lower demand in the c
Slide 25: Outlook
For personal use only Outlook Providers of Lifting Solutions to Australia
Slide 26: Resolutions
For personal use only Resolutions Providers of Lifting Solutions to Australia
Slide 27: Financial Statements and Reports
For personal use only Item 1 Financial Statements and Reports Providers of Lifting Solutions to Australia
Slide 28: Remuneration Report
For personal use only Item 2 Remuneration Report Providers of Lifting Solutions to Australia
Slide 29: Remuneration Report (non binding resolution)
Item 2 For personal use only Remuneration Report (non binding resolution) Number of shares % FOR 41,966,609 80.91 AGAINST 8,189,928 15.79 DISCRETIONARY* 1,712,652 3.30 100% * The number of the Chairman's discretionary proxy votes are 1,332,627 (2.58%) Note: These figures relate to the proxies lodged
Slide 30: Appointment of Auditor
For personal use only Item 3 Appointment of Auditor Providers of Lifting Solutions to Australia
Slide 31: Appointment of Auditor resolution
Item 3 That for the purpose of section 327B of the Corporations Act and for all other For personal use only purposes, KPMG having been nominated and consented, be appointed as Auditors of the Company with effect from the end of this meeting and to authorise the directors of the Company to determine
Slide 32: Re-election of director Terrence C. Francis
For personal use only Item 4 Re-election of director Terrence C. Francis Providers of Lifting Solutions to Australia
Slide 33: Re-election of Terrence C. Francis
Item 4 (a) For personal use only That Terrence C. Francis be re-elected as a director of the Company Number of shares % FOR 49,397,666 94.56 AGAINST 1,093,532 2.09 DISCRETIONARY* 1,747,049 3.35 100% * The number of the Chairman's discretionary proxy votes are 1,367,024 (2.63%) Note: These figures re
Slide 34: Re-election of director Jane M. Harvey
For personal use only Item 4 Re-election of director Jane M. Harvey Providers of Lifting Solutions to Australia
Slide 35: Re-election of Jane M. Harvey
Item 4 (b) For personal use only That Jane M. Harvey be re-elected as a director of the Company Number of shares % FOR 49,375,699 94.50 AGAINST 1,116,727 2.13 DISCRETIONARY* 1,757,821 3.37 100% * The number of the Chairman's discretionary proxy votes are 1,377,796 (2.65%) Note: These figures relate
Slide 36: Amendments to the Constitution
For personal use only Item 5 Amendments to the Constitution Providers of Lifting Solutions to Australia
Slide 37: Amendments to the Constitution resolution
Item 5 That the Constitution of Boom Logistics Limited be amended with effect from the For personal use only close of the meeting as set out in the amended Constitution tabled at the meeting and signed by the Chairman of the meeting for the purposes of identification. Number of shares % FOR 47,453,8
Slide 38: Granting of share units to the Managing Director
For personal use only Item 6 Granting of share units to the Managing Director Providers of Lifting Solutions to Australia
Slide 39: Granting of share units to the Managing Director resolution
Item 6 That approval be given for the purposes of ASX Listing Rule 10.14 and all other For personal use only purposes for the grant of Share Units to the Managing Director, Brenden Mitchell, in accordance with the terms of the Boom logistics Limited Long Term Incentive Plan and on the terms summaris
Slide 40: Annual General Meeting October 2008
For personal use only Annual General Meeting 24 October 2008