Boom Logistics Ltd · ASX:BOL
Boom Logistics — Shareholder Meeting (October 2011)
22 slides from Boom Logistics's shareholder meeting presentation, Oct 28, 2011
Slide 1: Annual General Meeting 28 October 2011
For personal use only Annual General Meeting 28 October 2011
Slide 2: Chairman's Address
Chairman’s Address For personal use only Mr John Robinson Page 1
Slide 3: FY11 Overview
FY11 Overview For personal use only Reshaping of the business, with a clear focus on the core mobile crane and travel tower activities Severe and protracted weather events, particularly impacted the Bowen Basin in the second half Mitigating impacts through broadening of the business in terms of oper
Slide 4: FY11 Trading Results
FY11 Trading Results Year on year improvement in all trading metrics For personal use only FY11 $m FY10 1H11 2H11 FY11 pcp Total Revenue 328.4 171.0 169.4 340.4 4% Trading EBITDA 49.8 31.2 24.3 55.5 11% Trading EBITDA Margin 15% 18% 14% 16% Trading EBIT 19.0 14.9 8.3 23.2 22% Trading EBIT Margin 6%
Slide 5: Trading Result Reconciliation
Trading Result Reconciliation $m EBIT NPAT For personal use only 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
Slide 6: Business Restructure – Boom Sherrin
Business Restructure – Boom Sherrin Low end access equipment For personal use only Increased competition Low barriers to entry Highly competitive metropolitan markets No future investment by Boom Travel Towers Strong market presence Alignment with core strategy Continued future investment Page 5
Slide 7: Business Exits
Business Exits James Equipment For personal use only Crane sales business exited Tadano sales agreement concluded June 2009 Challenging trading conditions under a stronger $AUD Aitkin Dry Hire business acquired with James Equipment continues to deliver strong margins within the Crane Logistics busin
Slide 8: Business Restructure Impacts
Business Restructure Impacts For personal use only Lower fixed cost base through business exits and restructure Flatter management structure Improved systems Re-financed debt, with a lower cost of funds Improved first quarter result in FY12 Page 7
Slide 9: For personal use only
For personal use only Page 8
Slide 10: Managing Director's Address
Managing Director’s Address For personal use only Mr Brenden Mitchell Page 9
Slide 11: Safety Journey
Safety Journey 25% reduction in Total Recordable Injury Frequency Rate For personal use only No injuries and no significant equipment damage due to FY11’s extreme weather events Total Recordable Injury Frequency Rate (TRIFR) 30.0 29.0 28.0 TRI's per Million Hours Worked 27.0 26.0 25.0 24.0 23.0 22.0
Slide 12: FY11 Results
FY11 Results For personal use only Crane Logistics experienced strong growth in resources and energy sectors Weather events and soft metropolitan markets particularly impacted the second half Significant disruptions to customers operations Trading NPAT of $5.4 million Page 11
Slide 13: FY11 Divisional Results
FY11 Divisional Results For personal use only FY11 $m 1H10 2H10 FY10 1H11 2H11 FY11 pcp Revenue 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
Slide 14: Impacts of Strategic Focus
Impacts of Strategic Focus Exit of the non-core James Equipment and GM Baden For personal use only businesses No future investment in access and general hire equipment, requiring goodwill and asset impairments Streamlining of National Office Sale of the Melbourne tower crane assets in October 2011 A
Slide 15: Core Business
Core Business For personal use only • Supply of cranes on a wet or dry (manned or unmanned) basis. • Market focus on resources, energy, infrastructure and Crane Logistics utilities. CRANE LOGISTICS • Value proposition aligned with major blue chips. • Specialised transport equipment. • Supply of dry
Slide 16: Crane Logistics – Strong Growth in Core Markets
Crane Logistics – Strong Growth in Core Markets For personal use only 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 MA
Slide 17: FY12 Priorities
FY12 Priorities Continued implementation of the Health, Safety, Environment For personal use only and Quality plan Meeting the significant growth expectations of Boom’s blue chip customers in the resources, energy, utilities and infrastructure sectors, with targeted capital investment Reshaping Boom
Slide 18: Strong Growth Projected in Boom's Customer's Markets
Strong Growth Projected in Boom’s Customer’s Markets Australian Thermal Coal Production (Mt) Australian Iron Ore Production (Mt) For personal use only 350 700 300 600 500 250 400 200 300 150 200 100 100 50 Iron Ore Coal 0 0 2009 2010 2011 (f) 2012 (f) 2013 (f) 2014 (f) 2015 (f) 2016 (f) 2009 2010 20
Slide 19: Boom Sherrin Strategy
Boom Sherrin Strategy Market focus on utilities (power and telecommunications), For personal use only industrial services and resources Competitive national presence in these markets Targeted future capital investment in travel towers Restructure to align infrastructure with core markets – to be eff
Slide 20: FY12 - Strong First Quarter Result
FY12 - Strong First Quarter Result For personal use only Strategy and restructure impacts have resulted in a strong first quarter EBIT ($m) $18.0m $16.0m $14.0m $15.9m $12.0m $10.0m $8.0m $8.9m $9.0m $6.0m $4.0m $2.0m $0.0m H1 FY2011 H2 FY2011 Q1 FY2012 Page 23
Slide 21: Outlook
Outlook For personal use only Strong first quarter reflects impacts of strategic focus and provides a solid base for FY12 Significant growth expectations from Boom’s blue chip customer base Focus on cost management and development of capability in high growth, remote regions EBIT guidance of $35 - $
Slide 22: Annual General Meeting October 2011
For personal use only Annual General Meeting 28 October 2011 Page 25