Slide 1: Half Year Results Presentation 31 December 2005
Half Year Results Presentation 31 December 2005 February 2006
Slide 2: Verticon Business Model
Verticon Business Model » Consolidate tower crane and hoist industry by acquisition » Increase fleet market share in targeted geographical markets » Expand and grow alliances with major national construction companies » Transition group competencies across other services and into new sectors. v e.g.
Slide 3: Verticon Overview
Verticon Overview » Largest tower crane operator in Australia and New Zealand » Operating divisions in QLD, NSW, VIC and NZ » Diversifying reliance from tower cranes » Tower Cranes 108 Hoists 42 » Crawler Cranes 19 Mobile Cranes 12 » Competitors v LCR Group: approx 50 tower cranes v Boom: approx 32
Slide 4: Achievements
Achievements » Dec 2004 Listed on the ASX and acquired QLD (Seca) and VIC (Econ) businesses » Apr 2005 Acquired crane assets of Eltrax ($5.6M staged payment) » May 2005 Acquired GFB Engineering ($0.2M) » Sep 2005 Acquired Fire Up Cranes and Rigging to secure NSW coverage ($4.8M) » Oct 2005 Secured C
Slide 5: Half Year Results - Summary
Half Year Results - Summary 6 months to 31/12/05 REVENUE $23.3m EBITDA $4.5m EBITDA % Revenue 19.5% NPAT $1.4m NPAT % Revenue 5.9% EPS Basic 2.2c EPS Adjusted (excluding amortisation of goodwill) 2.4c EPS Normalised (excluding amortisation and abnormal) 3.2c Interim Dividend 0.0c NTA (per share) 58.
Slide 6: Half Year Results - Balance Sheet
Half Year Results - Balance Sheet As at 31/12/05 Cash $0.7m Receivables $11.0m Plant & equipment $86.7m Intangibles $14.7m Other $1.3m Total assets $114.4m
Slide 7: Half Year Results - Balance Sheet
Half Year Results - Balance Sheet As at 31/12/05 Payables $3.4m Deferred vendor payments $7.1m Borrowings $50.2m Provisions $1.0m Other $1.5m Total liabilities $63.2m Net assets $51.2m Net debt / equity 96.7%
Slide 8: Half Year Results - Cashflow
Half Year Results - Cashflow 6 months to 31/12/05 EBITDA $4.5m Net capital expenditure ($5.4m) Movement in operating net assets ($1.2m) Operating cash flow ($2.1m) Net borrowing costs ($0.5m) Income tax paid ($1.0m) Net operating cash flow ($3.6m)
Slide 9: Half Year Results - Summary
Half Year Results - Summary Business Issue Financial Impact Company Action Slowdown in Under budget » Diversification of business geographically and construction activity earnings sectoral through NZ acquisition Slowdown of activity Under budget » Redeploying assets in NSW as market share in Queensl
Slide 10: Segmentation (Regional)
Segmentation (Regional) QLD NSW VIC NZ REVENUE $16.5m $1.7m $4.0m $1.1m EBITDA $5.3m $0.3m ($0.4m) $0.7m * Includes 4 months of NSW and 1 month of NZ
Slide 11: Half Year Results - Queensland
Half Year Results - Queensland » Activity in Queensland slowed » Maintaining market share » Margins on labour in Queensland under pressure » Pricing pressure from competitors » Equipment sales did not occur in first half » Utilisation v Tower Crane (62%) / Hoist (64%) » Action taken by Verticon v Fo
Slide 12: Half Year Results - Victoria
Half Year Results - Victoria » “Legacy” contracts still in place but will expire calendar year 2006 » Operations improving but still work to be done » New work slow to win with significant lead time » Doubtful debts » Utilisation v Tower Crane (56%) » Action taken by Verticon v Change in operational
Slide 13: Half Year Results - New South Wales
Half Year Results - New South Wales » Acquired September 2005 » Meeting expectations » Began with 2 cranes in Sydney, now up to 9 cranes » Increasing market share with new customers » Strong outlook as a small player in a large market » Utilisation v Tower Crane (100%) v Hoist (80%) » Growth to assi
Slide 14: New Zealand - Daniel Smith Industries
New Zealand - Daniel Smith Industries » Acquired December 2005 - NZ$41.0M » Vendor (Daniel Smith) contracted as employee for 5 years » Operates throughout NZ and Pacific Islands » 80% paid upon completion and 20% earn out on EBITDA target » Utilisation 95% (8 mobiles, 19 crawlers and 16 tower cranes
Slide 15: Fleet Segmentation
Fleet Segmentation Tower Cranes 66 Hoists 27 Tower Cranes 9 Hoists 10 Tower Cranes 16 Hoists 3 Crawler Cranes 19 Mobile Cranes 8 Tower Cranes 17 Mobiles 4 Hoists 2
Slide 16: Board and Executive Team
Board and Executive Team Mr David Wieland Chairman Mr David Goldberger Mr Denis Tomasel Board Non-Executive Director Executive Director Mark Kevin Executive Team Managing Director Andrew Torrington Denis Tomasel Vince Asdagi Chief Financial Officer Executive Director Development Manager Rod Samimi D
Slide 17: Outlook
Outlook Revised basic EPS to a range 4.0 to 4. 5 cents per share for FY2006 Focus » Completion of integration of NZ and NSW acquisitions » Rectify operating issues in Victorian business » Maintain QLD market share Opportunities » Gain market share in NSW » Continue to diversify sector exposure » Org