Slide 1: FY10 Results Presentation
FY10 Results Presentation 11 August 2010
Slide 2: Summary
Summary We have been through a severe market and industry downturn as evidenced by our FY10 trading NPAT of $4.1m We are seeing strong signs of recovery, indicating the worst is behind us • Crane Wet Hire utilisation back up to 81% in Q4 FY10. • Group revenue per day back above $1m in Q4 FY10 (last
Slide 3: Boom Logistics Overview
Boom Logistics Overview Crane Logistics Boom Sherrin James Equipment FY10 Revenue $224 million FY10 Revenue $78 million FY10 Revenue $23 million Net Trading Assets1 $267 million Net Trading Assets1 $129 million Net Trading Assets1 $10 million Australia’s largest provider of crane logistics Nationwid
Slide 4: FY10 Results
• FY10 Results 3
Slide 5: FY10 Trading Results
FY10 Trading Results Severe trading conditions since 2H FY09 but strong recovery in Q4 FY10. Substantial improvement in 2H FY10 EBIT: up 46% on 1H FY10 and 89% up on 2H FY09. 1H10 2H10 FY10 $m 1H09 2H09 FY09 1H10 2H10 FY10 pcp pcp pcp Crane Logistics 146.3 116.3 262.6 106.9 117.0 223.9 Boom Sherrin
Slide 6: FY10 Divisional Results
FY10 Divisional Results Revenue improvement of 9% in Crane Logistics and 5% in Boom Sherrin in 2H FY10 versus 1H FY10. Strong EBIT improvement of 27% in Crane Logistics and 8% in Boom Sherrin in 2H FY10 versus 1H FY10. $m 1H09 2H09 FY09 1H10 2H10 FY10 Revenue Crane Logistics 146.3 116.3 262.6 106.9
Slide 7: FY10 Divisional Results – Crane Logistics
FY10 Divisional Results – Crane Logistics FY10 REVENUE CONTRIBUTION HIGHLIGHTS James • Difficult trading conditions in 1H FY10. Equipment 7% • Challenges in select markets has resulted in restructuring in June and July, and redeployment of Boom Sherrin 24% fleet to growth markets. • Strong recovery
Slide 8: Quarterly Performance Indicators
Quarterly Performance Indicators Strong signs of recovery indicating the worst of the market downturn is over. Early evidence of Boom’s strategy to drive the business in growth markets with a higher-returning fleet mix. GROUP REVENUE PER DAY ($ooo’s) CRANE WET HIRE UTILISATION 1,400 90% 1,200 80% 1,
Slide 9: FY10 Divisional Results – Boom Sherrin
FY10 Divisional Results – Boom Sherrin FY10 REVENUE CONTRIBUTION HIGHLIGHTS James Equipment • Consistently improving second half revenue 7% performance from Travel Towers. • Growth opportunities driven by major infrastructure Boom Sherrin 24% investment by utilities and telecommunications customers.
Slide 10: FY10 Divisional Results – Other
FY10 Divisional Results – Other EBIT Contribution ($m) Highlights 2.0 1.5 • Continued challenging market for crane sales. 1.0 • Headcount and fixed costs have been reduced, James 0.5 . as a pre-cursor to reconsidering restructuring 0.0 options. Equipment 1H09 2H09 1H10 2H10 (0.5) • Re-directed to Bo
Slide 11: Balance Sheet
Balance Sheet 30 June 30 June $m $m 2009 2010 Mvmt • Completion of $87 million equity raising and Share Purchase Plan strengthened the Balance Sheet for Cash 10.6 10.1 (0.5) future growth. Trade Receivables 52.0 59.3 7.3 • Reduction of $111 million in gross debt (via net equity Other Receivables 13.
Slide 12: Cash Flow
Cash Flow $m $m FY09 FY10 Mvmt • Sound cash flow disciplines through challenging trading period. 1 Net receipts / (payments) 84.6 43.1 (41.4) • Significant operating cash flow improvement in Net interest received / (paid) (16.8) (12.0) 4.7 Q4 FY10. Income tax received / ( paid) (0.2) 14.1 14.4 • $15
Slide 13: Strategy Update
• Strategy Update 12
Slide 14: Boom’s Strategy
Boom’s Strategy Boom’s strategy is premised on: Safety – for our people, our customers, the community and the environment; and 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 value proposition for our
Slide 15: 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. Our customer value proposition is based on total solutions involving: • Fleet adapted to industry requirements in resources, e
Slide 16: Boom’s Value Proposition at work – case studies
Boom’s Value Proposition at work – 2 case studies Complex, heavy-lift mining construction project • 750t crawler and operational team contracted for full utilisation over a fixed term of 8 months. • Boom selected for its best-in-class asset, operational team and work methods. • Daily pre-lift planni
Slide 17: Customer Focus
Customer Focus We will continue to focus on delivering industrial services and major project development support to customers in resources, energy, utilities and infrastructure. QLD % Crane Logistics Revenue 1 BOOM % Crane Logistics Revenue 1 Mining resources 57% maintenance Mining resources 47% mai
Slide 18: Growth Potential
Growth Potential Growth prospects for crane logistics in our core markets, in the near term and over the next 5 years, are substantial 2. Boom is well-positioned to target construction activity and ongoing maintenance contracts. QLD Coal Projects 1 $2.9 b underway $32.5 b to commence over the next 5
Slide 19: Contract Wins
Contract Wins Recent contract wins demonstrate the strength of our value proposition and our customer relationships in high-growth markets. Announcement Customer Contract Term Contract Highlights Date 15-month contract with a TDK Joint Venture • Crane logistics for the Barrow Island Construction Vil
Slide 20: FY11 Priorities
FY11 Priorities • Drive crane logistics growth in industrial services and major project development RESHAPE THE markets BUSINESS • Redeploy fleet to maximise revenue and returns • Manage non-core businesses for cash • Drive operational improvements in o Maintenance management DRIVE PROFIT o Labour c
Slide 21: Outlook
Outlook Boom expects a continuation of the recovery experienced in Q4 FY10, including: • improved utilisation of the existing asset base; • flow through of significant new contracts; • price recovery over time; and • further redeployment of assets to benefit from its restructuring in underperforming
Slide 22: Investor enquiries
• Investor enquiries: Brenden Mitchell Managing Director and Chief Executive Officer 03 9207 2500 Iona MacPherson Chief Financial Officer and Company Secretary 03 9207 2500 21
Slide 23: Appendix 1: NPAT Reconciliation
Appendix 1: NPAT Reconciliation $m FY10 Trading NPAT 4.1 One-off redundancy and restructure costs (1.7) Impairment charges (0.4) Tax benefit on above noted one-off charges 0.6 Prior period tax refund (2002 – 2004) 3.9 Statutory NPAT 6.5 One-off redundancy and restructure costs In response to the sub