Boom Logistics Ltd · ASX:BOL
Boom Logistics — Shareholder Meeting (October 2010)
23 slides from Boom Logistics's shareholder meeting presentation, Oct 29, 2010
Slide 1: Annual General Meeting 29 October 2010
For personal use only Annual General Meeting 29 October 2010
Slide 2: Chairman's Address
Chairman’s Address For personal use only Mr John Robinson 1
Slide 3: Impact of the Global Financial Crisis
Impact of the Global Financial Crisis Boom’s customers reduced activity in existing projects, new projects and For personal use only ongoing maintenance, leading to an 18% decline in revenue in FY10 Revenue $450m $400m $410m $397m $350m $326m $300m $250m $200m $150m $100m $50m $0m FY08 FY09 FY10 2
Slide 4: FY10 Operating Performance
FY10 Operating Performance ■ Full year reported NPAT of $6.5m For personal use only ■ Full year trading NPAT of $4.1m (after excluding one off items) Variance Variance EBIT $m FY09 FY10 ($) (%) Crane Logistics 38.4 21.1 (17.3) (45%) Boom Sherrin 11.8 10.6 (1.2) (10%) James Group 0.9 (2.0) (2.9) (322
Slide 5: Repositioning Initiatives
Repositioning Initiatives For personal use only ■ Continued focus on value proposition – most valued by blue chip customers in the industrial, resources and infrastructure sectors ■ Strong processes in safety, service quality and environmental standards ■ Highly valued technical and engineering expe
Slide 6: Broader Operational Base
Broader Operational Base There has been a broadening of the business base, particularly with blue For personal use only chip customers: ■ Traditional strength in maintenance support for the industrial, resources and infrastructure sectors 2010 contract wins: BHP (renewal) Anglo American Coal Rio Tin
Slide 7: Fleet re-shaping
Fleet re-shaping Strategic re-balancing of fleet capacity in FY10 For personal use only Size Additions Disposals 0 – 50 tonne 17 32 >50 – 129 tonne 10 3 130 tonne+ 18 3 Total 45 38 5,711 tonnes 1,518 tonnes Capacity added disposed Average per unit 127 tonnes 40 tonnes Investment includes $42 million
Slide 8: James Equipment
James Equipment For personal use only ■ Solid historical performance through FY06 - FY08, generating acceptable returns ■ Capital equipment market downturn impacted FY09 ■ Goodwill fully written down at the end of FY09 ■ Conclusion of the Tadano sales agreement during FY10 ■ Currency environment fav
Slide 9: Net Debt Reduction
Net Debt Reduction Balance sheet gearing has been reduced to 38% as at 30 June 2010, down from 96% at 30 June 2009 For personal use only Net Debt and Gearing $300m 96% $250m $253m $247m $235m $200m 38% 35% $150m $145m $125m $116m $100m $50m $0m 29 June 2008 30 December 2008 30 June 2009 31 December
Slide 10: Archer Approach
Archer Approach ■ Incomplete, unsolicited, and highly conditional proposal from Archer For personal use only Capital ■ Timed to coincide with the end of a prolonged post GFC downturn in the industrial services sector which has been reflected in reduced business activity and a depressed Boom share pr
Slide 11: Outlook Summary
Outlook Summary For personal use only ■ Solid start to FY11, continuing on from Q410 ■ Continued contract wins in growth markets ■ Significant re-positioning of the core business has strengthened our market leadership position ■ Strong leverage to the resources, infrastructure and utilities sectors
Slide 12: For personal use only
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Slide 13: Managing Director's Address
Managing Director’s Address For personal use only Mr Brenden Mitchell 12
Slide 14: FY10 Revenue
FY10 Revenue For personal use only ■ Total revenue reduction of $72m in FY10 − Crane Logistics down $39m (predominantly occurred in the first half) − Boom Sherrin down $7m − James Equipment down $26m ■ Challenging first half across the business ■ Improvement in the second half in Crane Logistics and
Slide 15: Key actions in FY10
Key actions in FY10 For personal use only ■ Underperforming businesses restructured, particularly in metropolitan areas ■ $87 million equity raising to strengthen the balance sheet to position for growth ■ Critical contract wins providing a sound foundation for future revenue growth 14
Slide 16: Continued Actions in FY11
Continued Actions in FY11 For personal use only ■ Closure of the Melbourne Mobile business ■ Headcount reductions in Port Kembla and Brisbane ■ Redeployment of underutilised fleet to key Coal (Hunter Valley and Bowen Basin) and Iron Ore (WA) markets ■ Boom Sherrin depot consolidations ■ James Equipm
Slide 17: Boom's Strategy
Boom’s Strategy Boom’s strategy is premised on: Safety – for our people, our customers, the community and the environment; and For personal use only Shareholder Value – to maximise Boom’s value for our shareholders. The key elements of our strategy are to continue to: STRONG Enhance Boom’s core valu
Slide 18: Core Value Proposition
Core Value Proposition Boom delivers industrial services and supports major project development for customers in the resources, energy, utilities and infrastructure sectors For personal use only Our customer value proposition is based on total solutions involving: • Fleet adapted to industry require
Slide 19: Q1 FY11 Trading Update
Q1 FY11 Trading Update Significantly improved EBIT from Crane Logistics For personal use only Crane Boom James National Group $m Logistics Sherrin Group Office Total Revenue 66.3 18.6 1.7 - 86.6 EBIT 11.0 1.5 (0.4) (5.6) 2 6.5 1 Crane Logistics EBIT $14m 11.8 $12m 11.0 $10m 9.3 − Better quality reve
Slide 20: Q1 FY11 Trading Update
Q1 FY11 Trading Update ■ Boom Sherrin result not as strong in first quarter For personal use only − Project delays and deferrals − Weather impacts in Queensland and Victoria − Run rate improving and a strong pipeline in the telecommunications and utilities sectors ■ Crane Logistics focus on faster g
Slide 21: Operational Leverage
Operational Leverage For personal use only ■ Given the large capital base, increases in utilisation and revenue have a significant drop through to profit ■ As demand increases, utilisation picks up and price uplift will follow, increasing the revenue drop through to profit ■ In Boom’s core markets,
Slide 22: Boom's Values
Boom’s Values For personal use only ■ Safety Always ■ Our Customers – driving for our customer’s success ■ Our People – our diversity and different skills make us strong ■ Teamwork – contributing, listening, looking out for one another and being accountable as individuals and as a team ■ Achieving o
Slide 23: Annual General Meeting October 2010
For personal use only Annual General Meeting 29 October 2010 35