Boom Logistics Ltd · ASX:BOL
Boom Logistics — Finance News Network Investor Event (December 2017)
27 slides from Boom Logistics's conference presentation, Dec 12, 2017
Slide 1: Boom Logistics Limited to Present at the Finance News Network Investor Event
11/12/17 ASX code: BOL Boom Logistics Limited to Present at the Finance News Network Investor Event Boom Logistics Limited (ASX:BOL) will present at the Finance News Network Investor Event in Sydney on 12th December 2017. The Chief Executive Officer & Managing Director, Brenden Mitchell will present
Slide 2: Brenden Mitchell, CEO & Managing Director, 12 December 2017
BOOM tLoGis tics Brenden Mitchell Chief Executive Officer & Managing Director Boom Logistics Limited ASX: BOL yN Va 12 December 2017
Slide 3: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Boom and certain plans and objectives of the management of Boom. Forward-looking statements can generally be identified by the use of words such as
Slide 4: Thank you for taking the time today
Thank you for taking the time today to listen and hopefully come to a better understanding of who Boom is, where we have come from, and what we are working to achieve. I have with me today Tim Rogers CFO and Tony Spassopoulos COO who will be happy to catch up with you later in the day. 2
Slide 5: Boom Logistics national industrial services group
Boom Logistics is a national industrial services group that delivers an integrated suite of lifting services providing engineering expertise, skilled operators, specialist equipment and a broad range of labour solutions to Australian industry. • Listed on the ASX in 2003. • 1,000 employees Australia
Slide 6: Focus on mining, energy, utilities and infrastructure customers
Our focus has been on customers in the mining and resources, energy, utilities and infrastructure sectors and our value proposition has centered on supplying high value lifting and labour solutions; safely and without injury. As at the end of FY17 54% of our revenue was in the mining and resources s
Slide 7: What we do... Wind Farm Construction & Maintenance
What we do... Wind Farm Construction & Maintenance
Slide 8: What we do... Civil Construction & Infrastructure
What we do... Civil Construction & Infrastructure BOOT I }
Slide 9: What we do... Mining Maintenance & Shutdowns
What we do... Mining Maintenance & Shutdowns
Slide 10: 8
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Slide 11: Strong exposure to mining sector and commodity price crash
As I have already highlighted Boom has strong exposure to the mining sector and as a lifting and services company we were hit hard by the commodities price crash in the 2013 financial year when 68% of our revenues came from this sector. As you can see our share price has consistently traded below ou
Slide 12: Market conditions and customer responses over four years
Over the last four years the business experienced market conditions and customer responses that led to dramatic changes in our industry. Demand or usage from our customers in the resources sector dropped by up to 30% as they adjusted their maintenance programs. A large number of capital projects cam
Slide 13: Responding to challenges: depots, assets, debt, transformation
Faced with these challenges we responded by: • Closing unprofitable depots; • Selling surplus assets; • Reducing debt to under $50 million from over $100 million; and • Transforming the business to be more flexible and able to respond to the volatility of the market and the changing demands of our c
Slide 14: Key elements of our strategy
We have become a competitive business in a position to deliver improved returns to our shareholders due to the execution of our strategy. The key elements of that strategy being: 1. ensuring we deliver better outcomes from our current revenue base by reducing our cost to serve customers. 2. Building
Slide 15: Incremental revenue for FY18 from contracts won
Our strategy is now seen to be having an impact and as outlined in our Annual Report Boom has won considerable work in the wind farm sector and in mining services that will support continued profit improvement in the core crane logistics hire business. Incremental revenue over last financial year FY
Slide 16: Wind Farm Market
Wind Farm Market BOOM (oes +7 © ss 14
Slide 17: Wind farm crane revenue opportunities for FY19 and FY20
Important to earnings is the wind farm market. As we build our largest wind farm construction project this year at Mt Gellibrand in Victoria, it is pleasing to see the number of wind farm crane revenue opportunities for FY19 and FY20 looking strong and in the order of $300 million in value. 15
Slide 18: Civil Construction & Infrastructure
Civil Construction & Infrastructure Boom 16
Slide 19: Increasing infrastructure spend and mining improvement
This, coupled with the increasing of infrastructure spend in NSW, Victoria and the south west of WA, indicates there is a confidence the business cycle is on the turn. For Boom there is also improvement in the mining and resources sector, where we have won new contracts on the East Coast and at Olym
Slide 20: Our labour hire business, readi
I would also like to talk about our labour hire business, readi. 18
Slide 21: readi contributing positively and improving margin
“readi” is contributing positively in its own right and helping to deliver margin improvement in the Boom business. We expect continued revenue and earnings growth from this business with revenue this financial year to the end of October 2017 from both internal and external customers sitting at $8.5
Slide 22: readi momentum and confidence in business improvement
I believe that as the readi business builds momentum both revenue and margin drop through will increase. So looking forward we have reason to be confident that our overall business will continue to improve, and this confidence is supported by the revenue and earnings for the first four months of thi
Slide 23: Revenue and EBITDA for first four months of financial year
Revenue for the group as at the end of October 2017 was $62 million compared to $50 million for the prior corresponding period. Trading EDITDA for the first four months of this financial year sits at circa $8.0 million compared to $4.5 million for the first six months of FY17, $10.6 million for the
Slide 24: Operational leverage within the business
In understanding our business and its future prospects it is important to understand that our restructured fixed cost base can support significantly more revenue highlighting the operational leverage within the business. This also influences our decisions on where and how to deploy capital to maximi
Slide 25: Labour recovery and utilisation
labour is such a significant proportion of our cost base Labour recovery is simply how many hours are paid to our employees versus to how many labour hours are paid for by our customers. Improving recovery from 80 to 90 % when labour is 50% of the cost base decreases labour costs by 12.5 %. This if
Slide 26: Key messages to leave with you today
The key messages I wish to leave with you today are: • Our people have industry leading expertise and experience in the lifting sector, the depth of which few businesses can match. • We are now coming out of the low point in the mining and construction cycle with a transformed business that is flexi
Slide 27: Investor enquiries
Investor enquiries: Brenden Mitchell Managing Director and Chief Executive Officer Tim Rogers Chief Financial Officer Tony Spassopoulos Chief Operating Officer 03 9207 2500 info@boomlogistics.com.au www.boomlogistics.com.au 23
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