Babylon Pump & Power Ltd · ASX:BPP
Babylon Pump & Power — Merger or Acquisition (February 2021)
24 slides from Babylon Pump & Power's merger presentation, February 2021
Slide 1: Acquisition of Ausblast & Equity Raising
Babylon Pump & Power Limited Acquisition of Ausblast & Equity Raising February 2021 ASX: BPP
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by Babylon Pump & Power Limited (“Babylon”) (ASX: 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
Slide 3: 1. Babylon Overview
1. Babylon Overview 3 Babylon Pump & Power Limited
Slide 4: Business Snapshot
Business Snapshot Rapidly growing specialist mining services provider focusing on two high demand, complementary offerings in WA & QLD Business Offerings Platform for Growth ✓ Coverage of key regions – operations in WA and QLD SPECIALTY RENTAL DIESEL MAINTENANCE cover major resource markets ✓ Blue-c
Slide 5: Management Team
Management Team Highly experienced and committed team with leading expertise Co-founder of Babylon in February 2017 Over two decades of experience in oil & gas, mining and specialty rental markets spanning commercial, technical and project management roles Michael Shelby Previously GM at Resou
Slide 6: Corporate Snapshot
Corporate Snapshot Share Price Performance & Liquidity (LTM) Capital Structure Share Price Volume 26.9m Diluted for $0.04 25.3m 8.0m Undiluted 19.8m Con Notes 16.3m Avg. 7.0m Current Share Price (22 Feb 21) $0.030 $0.030 Monthly $0.03 Volume 6.0m No. of Shares Outstanding 860.4m 1,067.9m2 12 Mth 6 M
Slide 7: Babylon Operations Update & Outlook
Babylon Operations Update & Outlook Babylon continues to rapidly grow and benefit from strong fundamental growth outlook ✓ Record revenue and operating performance being achieved ✓ Strong levels of inquiry and tender activity ✓ Client list continues to grow ✓ Increasing levels of repeat business ✓ C
Slide 8: 2. Ausblast Acquisition Summary
2. Ausblast Acquisition Summary 8 Babylon Pump & Power Limited
Slide 9: Ausblast – Specialist Mining Services Provider
Ausblast – Specialist Mining Services Provider Ausblast is a specialist provider of integrated services for mine maintenance and shutdowns in Western Australia to Tier 1 clients WATER BLASTING ABRASIVE BLASTING PROTECTIVE COATINGS VACUUM LOADING Corrosion control and protection Environmentally frien
Slide 10: Acquisition Rationale
Acquisition Rationale Ausblast is a standout acquisition for Babylon with strong rationale ✓ Specialist WA based provider of high-pressure water blasting and ancillary services to the resources sector Highly ✓ Significant pumping and maintenance component consistent with Babylon’s core capabilities
Slide 11: Ausblast – Strategic Operating Presence
Ausblast – Strategic Operating Presence Ausblast facilities enhance Babylon’s strategic operating presence in these regions particularly in the Pilbara, and provide opportunity for significant operational growth and synergies Facility Newman Port Kennedy Ausblast Service Hubs Approximate Size 2,000m
Slide 12: Ausblast – Attractive Multiples & Ability for Growth
Ausblast – Attractive Multiples & Ability for Growth Strong and consistent financial performance secured at attractive multiples with Babylon able to overcome private ownership constraints and preference to deliver on Ausblast’s strong growth potential Attractive Acquisition Terms (Upfront & Deferre
Slide 13: Ausblast – Key Management Team
Ausblast – Key Management Team Ausblast’s highly experienced management team will continue to lead Ausblast as an independent business within Babylon and bring deep expertise, industry relationships and business development capabilities Management Experience Ausblast GM since 2012 Over 15 years
Slide 14: Ausblast – Strong Fleet & Key Equipment
Ausblast – Strong Fleet & Key Equipment Ausblast has a well maintained fleet of specialised equipment with significant operational benefits able to be realised by Babylon and which has been independently valued by Grays to have a market replacement value of $4.2 million 1 Equipment No. Blasting Truc
Slide 15: Delivers Babylon's Third Growth Pillar
Delivers Babylon’s Third Growth Pillar Significant opportunity to leverage the expertise and capabilities of each business unit to drive synergies and growth Ausblast broadens and enhances Babylon’s mining services offering Combination Opportunities 1 2 3 SPECIALTY RENTAL DIESEL MAINTENANCE + SPECIA
Slide 16: Accretive Step-Change
Accretive Step-Change Ausblast represents a significant step change to Babylon financial scale and margins with broader exposure to mining services FY20 Revenue FY20 Revenue by Location Current Pro-forma +49% $8.5m 32% $25.7m 47% 53% $17.2m $25.7m $17.2m 68% Babylon Ausblast Pro-forma WA QLD WA QLD
Slide 17: Strengthened Growth Platform
Strengthened Growth Platform The enlarged Babylon will have a strengthened growth platform across Australia’s leading resource regions National Platform Commodity Selected Clients Iron Ore Cairns Broome Gold Port Hedland Pilbara Mackay Newman Copper / Nickel Brisbane Perth / Goldfields Southwest Per
Slide 18: Ideal Fit with Babylon's Core Strategy
Ideal Fit with Babylon’s Core Strategy Ausblast is consistent with Babylon’s strategy to leverage is core capabilities to deliver scale and growth 5 Set ambitious target of $100m + revenue within next 5 years 4 Continuously assessing further strategic acquisitions to support core business 3 Continue
Slide 19: 4. Funding & Equity Raising Overview
4. Funding & Equity Raising Overview 19 Babylon Pump & Power Limited
Slide 20: Funding & Equity Raising Overview
Funding & Equity Raising Overview The acquisition of Ausblast and additional growth capital for the business will be funded via combination of debt and equity Funding Unsecured loan of $3.5 million Overview Structure Equity raising to raise $4.8 million Short term unsecured bridge loan facilit
Slide 21: Funding & Pro-Forma Impact
Funding & Pro-Forma Impact Babylon will be well funded with a strengthened balance sheet to support ongoing growth Funding Sources & Uses Pro-Forma Capital Structure & Financial Position Sources of Funds Acquisition & Current Equity & Pro-Forma Units Transaction Babylon Debt Funding Babylon Existing
Slide 22: Indicative Equity Raising Timetable
Indicative Equity Raising Timetable Indicative Timetable1 Date/Time (AEST) Trading Halt and Placement opens Tuesday, 23 February 2021 Record Date for eligibility to participate in SPP Wednesday, 24 February 2021 Announcement of the results of Placement Thursday, 25 February 2021 Despatch SPP Offer D
Slide 23: Summary Investment Highlights
Summary Investment Highlights ✓ Babylon is a rapidly growing specialist mining services provider — +50% Revenue CAGR (H2 FY18 to H2 FY20) to FY20 Revenue of $17.2m ✓ Acquisition of Ausblast is transformative, adding a third pillar to Babylon’s growth strategy — Specialty Rental / Diesel Maintenance
Slide 24: Babylon Pump & Power Limited
Babylon Pump & Power Limited 74 Harrison Road Forrestfield WA 6058 24 Babylon Pump & Power Limited
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