Boom Logistics Ltd · ASX:BOL
Boom Logistics — Shareholder Meeting (October 2013)
19 slides from Boom Logistics's shareholder meeting presentation, Oct 22, 2013
Slide 1: 2013 Annual General Meeting
For personal use only 2013 Annual General Meeting 22 October 2013
Slide 2: Mr John Robinson, Chairman
For personal use only Mr John Robinson Chairman 1
Slide 3: FY13 Review
FY13 Review Strong trading conditions continued in Q113 For personal use only Abrupt change in the second quarter Coal producers impacted by commodity demand and prices Change in emphasis from production growth to operating cost reduction Pressure on Boom charge out rates and generally low
Slide 4: Restructuring response
Restructuring response Cost reduction programme implemented For personal use only 12% reduction in the workforce (130 people) - a further 67 people in Q114 Majority of redundancy costs provided for in FY13 results 30% of cutbacks have been in overheads $25m p.a. of employee costs eliminate
Slide 5: FY13 Result
FY13 Result For personal use only % $m FY12 FY13 change Total Revenue 349.1 338.4 (3%) Total Trading EBIT 35.5 26.0 (27%) Trading EBIT Margin 10% 8% Trading Net Profit after Tax 18.5 10.7 (42%) Non-Trading Adjustments 1.3 (13.2) Statutory Net Profit after Tax 19.7 (2.5) (113%) Note: All Statutory re
Slide 6: Cashflow and debt reduction
Cashflow and debt reduction Gearing at 37% (Net Debt / Equity) For personal use only Net Tangible Assets per Share of $0.51 5
Slide 7: Outlook for FY14
Outlook for FY14 For personal use only Restructuring benefits evident in the final quarter of FY13 and have continued into the first quarter of FY14 Stable earnings despite subdued revenue Drive for further cost reductions and improvement in operating efficiency Improved fleet position, with
Slide 8: Mr Brenden Mitchell, Managing Director
For personal use only Mr Brenden Mitchell Managing Director 7
Slide 9: Boom's Strategy
Boom’s Strategy For personal use only Delivering industrial services utilising operators and equipment ─ cranes, travel towers, transport and other assets ─ for major customers in the mining & resources, energy, utilities and infrastructure sectors BHP Billiton Rio Tinto BHPB Mitsubishi Alliance
Slide 10: FY13 Review
FY13 Review For personal use only Commodity prices and the strength of the Australia dollar put extreme pressure on even the lowest cost commodity producers Severe contraction in infrastructure spending on the East Coast Coal customers under duress, driving costs down Volatility and pricing
Slide 11: FY13 Result
FY13 Result For personal use only % $m FY12 FY13 change Total Revenue 349.1 338.4 (3%) Total Trading EBIT 35.5 26.0 (27%) Trading EBIT Margin 10% 8% Trading Net Profit after Tax 18.5 10.7 (42%) Non-Trading Adjustments 1.3 (13.2) Statutory Net Profit after Tax 19.7 (2.5) (113%) Note: All Statutory re
Slide 12: Safety
For personal use only Safety 11
Slide 13: Revenue
Revenue BHP Billiton Iron Ore Ports contract For personal use only Not retained on the basis of price, in part due to the high cost of Boom’s EBA in the region Contract wins and extensions Rio Tinto - East Coast Karara Mining (Iron ore) Gorgon at Henderson (LNG) Leightons at FMG Solomo
Slide 14: Cost Focus
Cost Focus For personal use only Drive for cost reductions, aided by the successful implementation of national payroll and financial systems Cost reduction programme implemented 12% reduction in the workforce (130 people) 30% of cutbacks have been in overheads Reduction of a further 67 peo
Slide 15: Asset Base
Asset Base 66 cranes identified for sale For personal use only Expected to deliver over $10m in proceeds in FY14 Average age of 18 years 36 cranes under 25 tonnes and 15 less recognised or accepted models Following over c. $180m of investment over the last 4 years, Boom’s crane fleet is no
Slide 16: Balance Sheet management
Balance Sheet management For personal use only Debt reduced, whilst investing in the business $62.3m cash invested in capital Expansion into South Australia through the BHP Billiton Olympic Dam maintenance contract Reinvestment in the Travel Tower business – with strong prospects in the util
Slide 17: FY14 Focus
FY14 Focus Continue to serve our customers well and look for revenue growth For personal use only opportunities to maximise our equipment utilisation Expand our position in the LNG, wind farm, utilities and resources sectors as well as in new projects and markets. Improve our competitive posit
Slide 18: Disclaimer
For personal use only Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Boom and certain plans and objectives of the management of Boom. Forward-looking statements can generally be identified by the
Slide 19: Boom Logistics contact details
2 E S) @ ) = @ ‘= e) D = ® oe = S) BOOM Logistics Level 6, 55 Southbank Boulevard Southbank Victoria 3006 T; +61 3 9207 2500 F; +613 9207 2400 E: info@boomlogistics.com.au www. boomlogistics.com.au BOOM Logistics Limited ABN 28 095 466 961