Slide 1: Full Year Results Presentation
Full Year Results Presentation 30 June 2008
Slide 2: Status
Status • Comprehensive Balance Sheet review complete • Debt restructured • Key operational issues are clear Recovery process under way
Slide 3: FY08 Financial Performance
FY08 Financial Performance $ million FY07 FY08 % change FY08 (Restated) (Final) (Underlying) Revenue 350.0 410.3 17% 410.3 EBITDA 97.1 90.1 (7%) 90.1 EBITDA % 27.7% 22.0% 22.0% EBIT 62.9 47.5 (24%) 51.5 EBIT % 18.0% 11.6% 12.6% NPAT 34.4 18.6 (46%) 22.1 NPAT % 9.8% 4.5% 5.4% EPS (cents) 20.2 10.9 DP
Slide 4: Correction of prior years' accounting errors – Balance Sheet impacts
Correction of prior years’ accounting errors – Balance Sheet impacts 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 (1.2m) (2.8m) (4.0m) Property
Slide 5: Debt
Debt • nabCapital, GE Capital and BankWest • $165m 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 • Documentation to be finalised by end of August
Slide 6: Revenue still strong
Revenue still strong • Crane sales and associated services (+ 43%) • Crane hire (+ 10%), particularly strong in WA, Victoria, New South Wales and South East Queensland • Resources and infrastructure project pipeline continues to drive demand • Contracted customer base maintained • Limited growth in
Slide 7: Business strengths
Business strengths • Diverse geographical footprint • Infrastructure and resources exposure • Blue chip customer base • Product diversity – Cranes and Travel Towers – Access equipment – Crane Sales and Service
Slide 8: FY08 issues
FY08 issues • WA contracted cross hire expense for casual hire revenue ($2m) • Boom Sherrin / Moorland integration ($2m) • Underperforming capital investment – Boom Sherrin ($3m) • Crane hire systems and processes ($2m) • Weather – Bowen Basin and Hunter Valley ($3m) • Skills shortages in remote are
Slide 9: Actions
Actions • Cross Hire - back to back agreements • Sherrin / Moorland – systems issue remedied, revenue recovery required • Systems – Core crane customer interface implementation by January 2009 • Addressing underperforming assets for possible divestment - $10m first half FY09 • Overheads investment i
Slide 10: Target Market Segments
Target Market Segments • Contracted term maintenance (fixed installation) More value • Infrastructure and industrial development projects than price driven • Major projects - End to end logistics • All industries casual hire This requires organisational alignment:
Slide 11: Organisational Alignment
Organisational Alignment • Matching skills capabilities with market opportunities – Focus on high end access equipment and large capacity cranes – Specialised and experienced skills across the business in engineering, project management, OHS&E management, contract administration etc – Establishing a
Slide 12: Operational imperatives
Operational imperatives • Customer account management framework • Cohesive sales and operations planning • Lead time management • Deliver the right mix of owned and cross hired equipment to minimise cyclical exposure • Business improvement plans by Depot with training and focused incentives • Review
Slide 13: Key management changes
Key management changes • Brenden Mitchell - CEO • Iona MacPherson - CFO • Peter O’Shannessy - COO • Rosie Hammond - General Manager HR • Terese Withington – General Manager Boom Sherrin – New State Managers (Vic and WA) • CIO – recruitment under way • General Manager – WA recruited
Slide 14: Financial Position
Financial Position Year Ended 30 June 2008 ($m) FY08 FY07 • Restated FY07 comparatives Actual Actual • Debt / Debt + Equity position to Cash 1.8 9.8 be improved through debt Receivables 77.1 66.2 reduction focus Inventories 20.6 21.4 Plant & equipment 378.6 356.9 • Banking covenants recast Intangibl
Slide 15: Cash Flow
Cash Flow FY08 • Solid cash flow forecasts under debt Year Ended 30 June 2008 ($m) Actual restructure EBITDA 90.1 • The cash flow reflects capital expenditure Net interest (19.2) funded by cash payments. An additional Income tax paid (7.1) $48.5m was acquired through leases Working capital / other 3
Slide 16: Going forward
Going forward • Sound July result with further improvement required in Boom Sherrin • Continued strong revenue growth • First quarter results to be presented at AGM • Sharper focus on key business drivers • Rigorous process over capital investment decisions • Detailed improvement plans managed effec
Slide 17: Questions
BOOM LoGtistTtIcs LIMITED BOOM Providers of Lifting Solutions to Australia BOOM sHERRIN Questions
Slide 18: Contact Details
Contact Details Brenden Mitchell Iona MacPherson Managing Director & Chief Financial Officer & Chief Executive Officer Company Secretary Address: Level 6, 55 Southbank Boulevard SOUTHBANK VIC 3006 Phone: (03) 9207 2500 Fax: (03) 9207 2400
Slide 19: Revenue Segmentation
Appendix Revenue Segmentation
Slide 20: Revenue Segmentation – FY08
Appendix Revenue Segmentation – FY08 Market Segmentation Geographic Segmentation Residential Engineering/ Civil 1% Construction 10% NSW QLD 13% 30% Industrial VIC Non Residential Maintenance 21% 21% 40% SA 2% Resources TAS 1% WA Maintenance 33% Government/ 27% Defence 1%