Babylon Pump & Power Ltd · ASX:BPP
Babylon Pump & Power — Investor Presentation (August 2019)
19 slides from Babylon Pump & Power's investor presentation, Aug 15, 2019
Slide 1: Strategic Acquisition of Primepower Queensland Pty Ltd
Babylon Pump & Power Limited Strategic Acquisition of Primepower Queensland Pty Ltd Investor Presentation - August 2019 Set to become one of the largest independent and diversified engine re-builders in Australia ASX: BPP
Slide 2: Important notice and Disclaimer
Important notice and Disclaimer This presentation has been prepared by Babylon Pump & Power Limited (BPP) for information purposes only. This presentation is not a product disclosure statement or prospectus for the purposes of the Australian Corporations Act 2001 (Cth), nor does it constitute financ
Slide 3: Executive Summary
Executive Summary Babylon Pump & Power Limited has entered into a conditional agreement to acquire Primepower Queensland Pty Ltd creating one of the largest independent and diversified engine re-builders in Australia. Attractive Primepower is a leading East Coast diesel engine re-build Acquisition s
Slide 4: A Rapidly Growing Specialist Mining Services Provider
A Rapidly Growing Specialist Mining Services Provider ▪ Babylon Pump & Power Limited (“Babylon”) (ASX:BPP) was established in February 2017 and listed on the ASX in January 2018 ▪ Babylon is seeing strong demand for its bespoke business model focusing on two complementary areas: ▪ Rental of specialt
Slide 5: Primepower Queensland Pty Ltd Overview
Primepower Queensland Pty Ltd Overview ▪ Based in Mackay, Queensland – gateway to Bowen Basin ▪ Specialising in Cummins engine repairs and rebuilds ▪ Primepower has been in operation since 2004, and is well-respected throughout the industry ▪ Blue chip client base ~ $9.0M revenue in FY19 ▪ Peabody (
Slide 6: Primepower Acquisition Terms
Primepower Acquisition Terms ▪ Initial acquisition payment comprised of: ▪ $1.7 million in cash; and ▪ $0.6 million in Babylon shares issued at 2.4 cents per share, or a 20% premium to the five day VWAP at time of issue, escrowed for 12 months ▪ Deferred payments comprised of: Select Clients ▪ $1m p
Slide 7: Compelling Strategic Rationale
Compelling Strategic Rationale ▪ Compelling opportunity - to enter East Coast resource sector services market BPP Group Revenue Outlook ▪ Culturally aligned – like-minded companies with similar operational philosophies $30.0 and skill & trade requirements ▪ Geographic expansion – introduction to Que
Slide 8: Significant Achievements – Since foundation
Significant Achievements – Since foundation Targeting combined Mobilized specialty rental annualised H2 FY20 package to Barrow Island for work with Chevron revenues of $26m August 2019 FY19 positive EBITDA achieved subject to audit June 2019 FY18 $1.6M revenue Awarded dewatering work at achieved BHP
Slide 9: Project Examples - Babylon
Project Examples - Babylon BHP Billiton Nickel West Pty Ltd BHP Billiton Iron Ore Pty Ltd ActionBlast Pty Ltd • Project Value $2M+ ongoing • Project Value $1M+ ongoing • Project Value $2M+ • Hire, install, commission and maintain • Hire, install, commission and maintain • Caterpillar 3516 Rebuild Pr
Slide 10: Project Examples - Primepower
Project Examples - Primepower Peabody Energy Fortescue Metals Group Ltd • Project Value $3M+ • Project Value $2M+ • Rebuild of multiple Komatsu 830E Modules • KTA38, QSK19, QST30, QSK45 Rebuilds Babylon Pump Babylon Pump & Power acquisition & Power Limited of Primepower Queensland 10
Slide 11: Primepower Financial Summary
Primepower Financial Summary PrimePower Balance Sheet - as at 30 June 2019 ($) Assets Current Assets 3,540,779 Non-Current Assets 225,789 Total Assets 3,766,568 Liabilities Current Liabilities 2,694,618 Non-Current Liabilities 349,829 Total Liabilities 3,044,447 Net Assets 722,121 Equity Retained Ea
Slide 12: BPP Corporate Structure – Post Acquisition
BPP Corporate Structure – Post Acquisition ▪ No additional Corporate overhead - corporate team will not be increased ▪ Corporate synergies in administration, insurance and finance ▪ Significant operational synergies through supply chain, labour and facility utilization Babylon Pump & Power Limited (
Slide 13: Babylon Group – Post Acquisition
Babylon Group – Post Acquisition ▪ Post acquisition Babylon will be: ▪ One of the largest independent and diversified engine builders in Australia. ▪ Poised for growth in specialist rental nationally, with a focus on Australia’s two key mining states (WA and QLD) BPP Group Geographic Revenue Structu
Slide 14: Growth & Efficiency Initiatives - Post Acquisition
Growth & Efficiency Initiatives - Post Acquisition Growth Initiatives ▪ Invigorate sales & marketing – adding Babylon’s existing contacts in Queensland to Primepower’s strong Queensland presence to introduce Babylon’s specialty equipment expertise ▪ Introduce Babylon’s Specialty Rental business into
Slide 15: Corporate
Corporate ASX Code: BPP Ordinary Shares 373m Performance Shares 40m Market cap (@ 2.0 cents) $7.5m Average Monthly Volume (shares) 10.7m Trading Range 6 months (cents) 1.6 – 2.5 Top 20 Holdings 47% Cash (30 June 2019) $0.5m Directors & Senior Management Michael Shelby Executive Chairman Tier One Cli
Slide 16: Research Views
Research Views ▪ Patersons Securities Limited Research Analyst has a price target of $0.06 per share (pre-acquisition) Babylon Pump Babylon Pump & Power acquisition & Power Limited of Primepower Queensland 16
Slide 17: Share Purchase Plan – Closing 19 August 2019
Share Purchase Plan – Closing 19 August 2019 ▪ Babylon has launched an underwritten Share Purchase Plan (SPP) to raise $1.5 million before costs Event 2019 ▪ The SPP provides the opportunity for eligible shareholder to subscribe for Record Date for determining entitlement 25 July up to $15,000 worth
Slide 18: Summary
Summary ▪ Management has been evaluating opportunities to grow the Company’s specialty rental and diesel maintenance divisions ▪ Primepower is an attractive strategic fit, and provides significant synergies for Babylon ▪ The acquisition will provide a platform for significant growth in size and scal
Slide 19: Investment Highlights
Investment Highlights ▪ Management has exceeded expectations since the establishment of Babylon in 2017 ▪ Key shareholders have encouraged management to accelerate the growth trajectory ▪ Primepower is a complementary strategic fit, and is well known to Babylon, with attractive acquisition terms of
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