Slide 1: Full Year Results Presentation 22 August 2011
Full Year Results Presentation 22 August 2011
Slide 2: Summary
Summary $5.4m trading NPAT profit, a 32% increase on FY10 trading NPAT of $4.1m. $37.7m reported NPAT loss for FY11, including $39.1m one-off impairments and $4.0m of one-off restructure costs. Continuing improvement in the core crane logistics business for the full year despite 2H11 impacts of seve
Slide 3: Boom Logistics Overview
Boom Logistics Overview Crane Logistics Boom Sherrin FY11 Revenue = $264 million FY11 Revenue = $73 million Net Trading Assets1 = $281 million Net Trading Assets1 = $76 million • Australia’s largest provider of crane logistics services • National provider of travel towers and access equipment hire •
Slide 4: 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 5: Sound progress being made on strategic priorities
Sound progress being made on strategic priorities • 17% revenue growth in Crane Logistics with 30% growth in the resources and energy sectors RESHAPE THE BUSINESS • James and Baden exit • Boom Sherrin focus on travel towers and cash generation • Capital investment to reduce cross hire will further i
Slide 6: Restructure and impairment
Restructure and impairment Strategic focus on core business with disciplined capital investment has led to restructure costs and non-cash impairments. Restructure costs • Business exits (James, Baden, Melbourne • Continued strategic focus on core business of Crane $4.5m Mobile) Logistics • National
Slide 7: FY11 Trading Results
FY11 Trading Results Year on year improvement in all trading metrics. FY11 $m 1H10 2H10 FY10 1H11 2H11 FY11 pcp Total Revenue 162.9 165.4 328.4 171.0 169.4 340.4 4% Trading EBITDA 22.5 27.3 49.8 31.2 24.3 55.5 11% Trading EBITDA Margin 14% 17% 15% 18% 14% 16% Trading EBIT 7.3 11.7 19.0 14.9 8.3 23.2
Slide 8: FY11 Divisional Results
FY11 Divisional Results Crane Logistics benefited from strong growth in resources (iron ore, coal and gold) and energy (gas and windfarms) sectors, with a 4% EBIT margin improvement on prior year. Boom Sherrin result influenced by strategic investment focus on Crane Logistics and weather impacts. FY
Slide 9: FY11 Divisional Results – Crane Logistics
FY11 Divisional Results – Crane Logistics FY11 REVENUE CONTRIBUTION HIGHLIGHTS James Group • 17% increase in revenue on prior year and 2% corresponding 52% increase in trading EBIT and a Boom Sherrin 4% trading EBIT margin uplift. 22% • Improving market conditions in resources, energy and utilities
Slide 10: Crane Logistics – Strong growth in core markets
Crane Logistics – Strong growth in core markets Continued focus on the resources, energy, utilities and infrastructure sectors. Combined FY11 revenue growth of 30% in the mining & resources (27%) and energy sectors (47%). REVENUE CONTRIBUTION BY MARKET SECTOR REVENUE GROWTH BY MARKET SECTOR 0% 10% 2
Slide 11: Boom’s value proposition at work – case studies
Boom’s value proposition at work – 2 case studies Gorgon LNG Project Western Australia • First crane on site in December 2009 (100t). • Expanded range of equipment increased to 12 cranes, including: o Frannas and rough terrains; o 100t to 220t mobiles; and o Crawlers up to 250t. • Customers include
Slide 12: FY12-14 Crane Logistics New Business Pipeline
FY12-14 Crane Logistics New Business Pipeline Currently $450m of new tender opportunities in the pipeline. The pipeline is continuing to grow. Page 11
Slide 13: FY11 Divisional Results – Boom Sherrin
FY11 Divisional Results – Boom Sherrin FY11 REVENUE CONTRIBUTION HIGHLIGHTS James • Boom Sherrin result influenced by the strategic Group Boom 2% investment focus on Crane Logistics. Sherrin 22% • Weather impacts with resultant project delays and inactivity reduced revenue and margins. • Access deli
Slide 14: Debt Facilities
Debt Facilities ■ $150 million, 3 year revolving facility finalised. ■ Cost of debt is forecast to reduce to 9% (down from 12%). ■ New funding allows Boom to pursue its growth objectives. ■ Existing syndicate of banks maintained, demonstrating ongoing support. ■ Increase in overall facility size (pr
Slide 15: Balance Sheet (Statutory)
Balance Sheet (Statutory) June June $m $m 2011 2010 Mvmt • Net Debt to Equity of 39% (38% at June 2010). Cash 9.1 10.1 (1.0) • As at 30 June 2011: Trade Receivables 57.8 59.3 (1.5) o Net Tangible Assets per share of $0.49. Other Receivables 8.0 4.0 4.0 o Net Assets per share of $0.64 Inventories 1.4
Slide 16: Cash Flow (Statutory)
Cash Flow (Statutory) $m $m FY11 FY10 Mvmt • Cash flow position continues to be solid. 1 Net receipts / (payments) 50.2 42.6 7.6 • $32.1m of finance leases (principal and 1 residuals) were paid out using cash during Net interest received / (paid) (12.2) (11.5) (0.7) the period. Income tax received /
Slide 17: Sound progress being made on strategic priorities
Sound progress being made on strategic priorities • 17% revenue growth in Crane Logistics with 30% growth in the resources and energy sectors RESHAPE THE BUSINESS • James and Baden exit • Boom Sherrin focus on travel towers and cash generation • Capital investment to reduce cross hire will further i
Slide 18: Outlook
Outlook Strategy and key market activity on track. • Contract and revenue expansion expected from major customers and projects. • Bowen Basin activity will continue to recover after weather impacts. • Hunter Valley, resources WA and LNG growth forecast to be strong. • Port Kembla environment still e
Slide 19: Investor enquiries: Brenden Mitchell
Investor Brenden Mitchell Iona MacPherson enquiries: Managing Director and Chief Financial Officer and Chief Executive Officer Company Secretary 03 9207 2500 03 9207 2500 Page 18
Slide 20: Appendix 1: Trading Result Reconciliation
Appendix 1: Trading Result Reconciliation $m EBIT NPAT Trading Result 23.2 5.4 Interest income (0.5) - 1H11 restructure costs (3.3) (2.4) 2H11 restructure costs (1.5) (1.0) GM Baden restructure costs (inventory impairment) (0.8) (0.6) Boom Sherrin adjustments Access related goodwill write off (18.3)
Slide 21: Appendix 2: Group Trading Results - Detail
Appendix 2: Group Trading Results - Detail FY11 $m 1H10 2H10 FY10 1H11 2H11 FY11 pcp Crane Logistics 106.9 117.5 224.5 130.9 132.7 263.6 17% Boom Sherrin 38.2 40.1 78.3 36.9 35.6 72.5 (7%) James Group - Discontinued 17.3 5.6 22.9 2.6 0.8 3.4 (85%) Operating Revenue 162.4 163.1 325.6 170.4 169.1 339.
Slide 22: Disclaimer
Disclaimer Future performance and forward looking statements This presentation contains certain “forward-looking statements”. The words “anticipate”, “believe”, “expect”, “project”, “predict”, ”forecast”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan” and other similar ex