Emeco Holdings Limited · ASX:EHL
Emeco — UBS Emerging Companies Conference 2007
25 slides from Emeco's conference presentation, Apr 18, 2007
Slide 1: Emeco Holdings Limited Business Overview
Emeco Holdings Limited Business Overview CONFIDENTIAL
Slide 2: Business Overview 1H07 Update
Be Business Overview 1H07 Update V5 - UBS This presentation may contain forward looking statements that are subject to a range of risk factors and uncertainties. Whilst these statements are considered to be based on reasonable assumptions, the statements themselves and the assumptions upon which the
Slide 3: Emeco rents dry-hire heavy earthmoving equipment to the mining and construction industries
Emeco rents dry-hire heavy earthmoving equipment to the mining and construction industries Page 3
Slide 4: Industry overview, Business overview, Financial overview
ah & tile Industry overview Business overview Financial overview Page 4
Slide 5: #1 market share in Australia and Indonesia and a growing presence in Canada, USA and Europe
#1 market share in Australia and indonesia and a growing presence in Canada, USA and Europe Australia Indonesia Canada USA Europe 534 121 261 56 8 350 go a a = — — Number of machines Number of machines Number of machines Number of machines Number of machines Fort McMurré Grand rat Source: Emeco Mana
Slide 6: Earth moved volume growth charts
Mbem Source: Notes: 7,000 7,000 6.1% CAGR 6,000 (2005-201 0F) 6.1% CAGR 6,000 {2005-2010F) 5,000 §,000 10.9% CAGR (2000-2005) 10.9% CAGR (2000-2005) 4,000 E 4,000 3 cE iT 2 Haun 3,000 eo - 3,000 aii 2,000 _ 7 2,000 4,000 i 4,000 iu iu 2000 2002 2004 2006F 2008F 2010F 2000 2002 2004 2006F 2008F 2010F
Slide 7: Management expects development of the rental market to drive further rental penetration
Management expects development of the rental market and changing attitudes to rental to drive further rental penetration and provides another avenue for growth 100% 80% 60% 40% 20% 0% Australia Indonesia Canada USA Europe mEmeco Base gRemaining Base Source: Management estirrates based on the number
Slide 8: Equipment sourcing countries
to. ©" Hong Kong indonesia Chile | South Africa | Equipment sourced from these countries in 2009-2006 Page 8
Slide 9: Euro Machinery New Premises - Hardenburg, Netherlands
Euro Machinery New Premises ~ Hardenburg, Netherlands Euro Machinery New Prernises — Hardenburg, Netherlands Emeco Premises — Somersby, NSW Emeco Premises - Redcliffe, WA Page 9
Slide 10: Disciplined management of growth capital and strategic acquisitions have delivered EBITDA CAGR of 44%
Disciplined management of growth capital, successful entry into new geographic markets and strategic acquisitions in Australia, Canada and USA have delivered EBITDA CAGR of 44% since 2000 Source: Note: Foous on Established Parts and Established Emeco MBO ‘Queensland growth Sales joint ventures USA 5
Slide 11: Business overview
Business overview Financial overview Page 11
Slide 12: Emeco primarily operates in the market for heavy earthmoving equipment rental
Emeco primarily operates in the market for heavy earthmoving equipment rental, predominantly to the mining industry in Australia, Indonesia and Canada % Iron Ore 10%. Source: Emeco Management Note: Oil includes conventional off and gas, of sands and infrastructure related to the production of oil fr
Slide 13: Five main reasons why companies rent from Emeco
There are five main reasons why companies rent from Emeco which provides the customer with capital and operational efficiency and lower costs per hour Reasons Customer Constraint e Delivery delays for new.equipment #. Limited contacts/expertise to purchase second hand machines é Fluctuations in flee
Slide 14: Financial overview
y 40. Financial overview Page 14
Slide 15: Emeco has an integrated business model
Emeco has an integrated business model, delivering low-houred machinery to customers with ongoing parts and maintenance support ye 94% 1HO07 pro forma EBITDA 157 staff 16 locations 969 units Market intelligence Wholesaie pricing Access to equipment Residual management yu 4% 1H07 pro forma EBITDA 2%
Slide 16: Customer mix and contract length
31 March 06 31 December 06 100.0% 100.0% 20 20 80.0% 80.0% 60.0% 60.0% 40.0% 40.0% @ 10 2 10 3 2 20.0% 20.0% 0.0% 0.0% Large Small Total Large Smail Total ° o : Average iniflal — Average Stay to Average hitial Average Stay to @Miner eContractor ggOther Miner “Contractor ggOther Contract Date Contrac
Slide 17: Growth from organic growth and three areas of step-out opportunities
Going forward, Emeco expects growth to come from both organic growth and three distinct areas of step-out opportunities 4 Growth in earth moved is expected to continue in the mining industry served by Emeco in Australia, ‘Indonesia and Canada ..\Key drivers of rental behaviour are. expected to conti
Slide 18: Business highlights
oo Business highlights Industry overview Business overview Page 18
Slide 19: EBITDA and margin by year
5 45% 25% + 40% | 35% | 20% + 30% | 25% + 15% + 20% : & 10% r 18% ; + 10% 5% ; 5% bo 0 PP O% 0% FY 2003 FY2004 FY 2005 FY 2006 FY 2007F FY 2008 FY 2004 FY 2005 FY 2006 FY 2007F Fy2003 FY2004 FY2005 FY2006 FY2007F le EBITDA — Vegi le ESTA — Vargin Reeve Source: Emeco Management Page 19
Slide 20: EBITDA less maintenance capex
Source: Emeco Management 200 150 100 CAGR = 39% 2003A 2004A 2005A 2006A m@ EBITDA - maintenance capex 2007F Page 20
Slide 21: Utilisation and return on funds employed
ae 100.0% 90.0% 50% 5 » 200 80.0% —s “i, mnneenl 40% | 180 30% nace Renard ee! 160 70.0% 20% = er tr ee tte EAL | 140 60.0% 10% 2 120 50.0% 0% | : 100 & 40.0% i : 80 30.0% I : 60 zo 20.0% ] th : , 20 18.0% a 0 0.0% Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 ros New-08 Mar-08 uro8 Novos
Slide 22: Run rate EBITDA reflects full year effect of capital expenditure
Run rate EBITDA refiects the full year effect of capital expenditure throughout the financial year 200 Actual 186.5 180 yeRun rate* 160 140 120 100 ASm 2003 2004 2005 2006 4HO? Funds employed 204.9 261.6 326.8 627.9 TATS (period end): ' Historical EBITDA 33.1% 31.6% 33.4% 29.7% 28.4% ROFE ? Source:
Slide 23: Commitments exceed 2007F prospectus capital expenditure
Emeco already has commitments in place that will exceed its 2007F prospectus capital expenditure 300 250 200 150 $ Millions 100 50 Source: Emeco Management 54.6 53.1 150.1 39.9 243.1 Maintenance Note: Committed capital expenditure as at 31 December 2006 Organic Growth Acquisition Growth Prospectus @
Slide 24: Lag between committed capital and earnings
Inevitable lag between committed capital and earnings. Full year earnings from growth capital underpins growth in the following year TOTAL 240 21 207 « £ = Acquisition Grow th 143 Organic Grow th Maintenance: 0 50 100 150 200 F206 Run rate ‘New growth PROOF un Rate? Capital ($Millions) Purchased Dep
Slide 25: Emeco has achieved its FY2006 prospectus forecast and is on track for FY2007
Z Z Emeco has achieved its FY2006 prospectus forecast and is on track to achieve its FY2007 prospectus forecast Revenue EBITDA Depreciation EBITA Amortisation EBIT NPAT NPAT (before amortisation) 251.3 73.3 32.5 40.8 -1.3 39.5 32.3% 20.8% 19.0% 17.6% 291.8 96.4 53.6 © 16.1% 31.5% 54.4% 35.7% 31.2% 4
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