Boom Logistics Ltd · ASX:BOL
Boom Logistics — Shareholder Meeting (November 2009)
38 slides from Boom Logistics's shareholder meeting presentation, Nov 27, 2009
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 27 November 2009
Slide 2: Chairman's Address
Chairman’s Address For personal use only Mr John Robinson
Slide 3: Impact of Global Financial Crisis
Impact of Global Financial Crisis For personal use only Fleet utilisation and revenue per day has been impacted by the economic downturn CRANE UTILISATION GROUP REVENUE PER DAY 84% $1,216k 79% $1,142k 72% $1,100k 72% 65% $971k $897k 1H FY08 2H FY08 1H FY09 2H FY09 Q1 FY10 1H FY08 2H FY08 1H FY09 2H
Slide 4: FY09 group results
FY09 group results For personal use only $m FY08 1H09 2H09 FY091 Revenue 409.9 223.5 173.5 397.0 EBITDA 89.7 47.8 21.5 69.3 EBITDA margin 22% 21% 12% 17% Depreciation (38.1) (17.0) (17.2) (34.2) EBITA 51.5 30.8 4.7 35.5 EBITA margin 13% 14% 3% 9% Amortisation (4.4) (1.1) (1.0) (2.1) EBIT 47.1 29.7 3
Slide 5: Summary of FY09 one off items
Summary of FY09 one off items For personal use only $ million Gross impact Tax impact Net impact Trading NPAT 16.9 (4.9) 12.0 Intangible asset impairments 1 James Equipment goodwill (18.8) – (18.8) Tangible asset impairments 2 Property, plant and equipment (including assets held for sale) (18.3) 5.5
Slide 6: Banking arrangements
Banking arrangements For personal use only • Syndicated facility until September 2011 with nabCapital, BankWest and GE Capital • Working capital facility with BankWest and nabCapital • Amortising asset based lease arrangements with several financiers Gross debt position Trade Finance Asset Based Fin
Slide 7: Equity raising overview
Equity raising overview For personal use only • Accelerated pro-rata 1 for 1 non-renounceable entitlement offer raising c. $52m − Institutional component of c. $13m $67M EQUITY RAISING − Retail component of c. $39m. Eligible retail shareholders may also apply for additional New Shares in excess of t
Slide 8: Indicative equity raising timetable
Indicative equity raising timetable For personal use only Event Date Retail Entitlement Offer opens Friday 27 November 2009 Retail Entitlement Offer booklet and Entitlement and Acceptance Form dispatched to eligible retail Friday 27 November 2009 shareholders Settlement of Institutional Entitlement
Slide 9: Improved net debt position
Improved net debt position PRO FORMA NET DEBT POSITION ($M) For personal use only 235.4 23.2 212.2 9.9 63.7 138.6 19.8 118.8 Net debt as at 30 Year to date debt Net debt as at 31 Tax refunds (by 31 Equity raising net Pro forma net debt Maximum SPP (non- Pro forma net debt (1) June 2009 reduction to
Slide 10: Improved covenant position
Improved covenant position Following the equity raising, BOOM will have significant headroom on each of its banking covenants For personal use only BOOM’s banks have agreed, conditional upon an equity raising, to amend its ELR covenant, providing significant headroom(1) BOOM’S ELR(1) REVISED ELR COV
Slide 11: Unsolicited and highly conditional proposal
Unsolicited and highly conditional proposal On 17 November 2009, BOOM entered a trading halt pending an announcement on the equity raising For personal use only After this trading halt was in place and after strong support from investors for the equity raising, BOOM received an incomplete, unsolicit
Slide 12: Positioned for recovery
Positioned for recovery For personal use only • Australia’s largest crane hire company, over twice the size of nearest competitor • Market leader in Travel Tower hire, over six times the size of nearest competitor UNIQUE MARKET POSITION • A leading Access Equipment hire business • National footprint
Slide 13: Improving pipeline
Improving pipeline For personal use only CRANE TENDER PIPELINE ACTIVITY $14m represents $14m tenders won within current tender pipeline $78m $68m $25m March 2009 July 2009 November 2009 BOOM has achieved a >40% success rate on projects it has tendered for
Slide 14: For personal use only
For personal use only
Slide 15: Managing Director's Address
Managing Director’s Address For personal use only Mr Brenden Mitchell
Slide 16: Boom's FY09 challenges
Boom’s FY09 challenges For personal use only 120.0 $45 $40 100.0 Yen $35 80.0 $30 $25 Euro 60.0 $20 40.0 $15 $10 20.0 $5 $- - Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jan 08 Feb 08 M ar 08 Apr 08 M ay 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan
Slide 17: Management actions position BOOM for upturn: Completed initiatives
Management actions position BOOM for upturn: Completed initiatives For personal use only INITIATIVE OUTCOME • Strengthening of management structure and team • Highly skilled and experienced team now in place – • Key General Manager appointments made in significant experience in industrial services M
Slide 18: Management actions position BOOM for upturn: Near term priorities
Management actions position BOOM for upturn: Near term priorities For personal use only INITIATIVE OUTCOME • Reduce total costs and increase variable relative to • Additional operational improvement projects underway OPERATIONAL fixed costs − Maintenance and workshops IMPROVEMENTS − Transport • Rene
Slide 19: Working capital improvements
Working capital improvements For personal use only DEBTORS DAYS INVENTORY 70 $ 45m $ 40m 60 $ 35m 50 $ 30m 40 $ 25m $ 20m 30 $ 15m 20 $ 10m 10 $ 5m 0 $ 0m Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-0
Slide 20: Improving pipeline evidences upturn
Improving pipeline evidences upturn The internal tender pipeline for BOOM’s crane business has increased from $25m in March 2009 to $92m as at 13 For personal use only November 2009 CRANE TENDER PIPELINE ACTIVITY $14m represents $14m tenders won within current tender pipeline $68m $78m $25m March 20
Slide 21: Well positioned to capitalise on major project pipeline
Well positioned to capitalise on major project pipeline Over $180bn in major projects anticipated over the next 3 years in Australia For personal use only BOOM has strong relationships with all major contractors for these projects Crane and lifting solutions required for all projects - Long-term rev
Slide 22: Strong industry growth is forecast across BOOM's key markets
Strong industry growth is forecast across BOOM’s key markets For personal use only AUSTRALIAN IRON ORE EXPORTS AUSTRALIAN COKING COAL VOLUMES 500 Mt 225 Mt 450 Mt 200 Mt 400 Mt 175 Mt 350 Mt 150 Mt 300 Mt 125 Mt 250 Mt 100 Mt 200 Mt 75 Mt 150 Mt 100 Mt 50 Mt na 50 Mt 25 Mt 0 Mt 0 Mt 2007 2008 2009E
Slide 23: Established presence in key market segments
Established presence in key market segments…… Crane revenue aligned to the key growth markets For personal use only Well established in the resources and mining sector Significant opportunity in construction segment (e.g. LNG) AUSTRALIAN CRANE HIRE MARKET (BY VALUE OF WORK)(1) BOOM FY09 REVENUE BY S
Slide 24: ...with strong leverage to upside
…with strong leverage to upside CRANE UTILISATION For personal use only 84% 79% 72% 72% 65% 1H FY08 2H FY08 1H FY09 2H FY09 Q1 FY10 Increasing utilisation by 5 percentage points in the crane hire business (with a proportional revenue increase in the BOOM Sherrin business) and no price growth, should
Slide 25: Business model delivers a strong value proposition
Business model delivers a strong value proposition For personal use only REQUIREMENT BOOM’S STRENGTHS GEOGRAPHIC Diverse national footprint, further underpinned by the mobile nature of the COVERAGE majority of BOOM’s fleet INFRASTRUCTURE Established business infrastructure, built up over many years
Slide 26: FY10 guidance
FY10 guidance FY10 EBITDA guidance of $50m - $60m announced to the ASX on 4 November 2009 maintained For personal use only Guidance based on: - Year to date operating performance, with conditions consistent with those experienced in the first four months of FY10 - Specific operational improvements r
Slide 27: For personal use only
For personal use only
Slide 28: Resolutions
For personal use only Resolutions
Slide 29: Financial Statements and Reports
For personal use only Item 1 Financial Statements and Reports
Slide 30: Adopt Remuneration Report
For personal use only Item 2 Adopt Remuneration Report
Slide 31: Adopt Remuneration Report (non binding resolution)
Item 2 – Adopt Remuneration Report (non binding resolution) For personal use only Number of Shares % For 41,684,698 80.58 Against 9,306,127 17.99 Discretionary * 741,590 1.43 100% The number of the Chairman’s discretionary proxy votes are 568,838 (1.10%). Note: These figures relate to the proxies lo
Slide 32: Re-election of Director Rodney J. Robinson
For personal use only Item 3A Re-election of Director Rodney J. Robinson
Slide 33: Item 3A – Re-election of Rodney J. Robinson
Item 3A – That Rodney J. Robinson be re-elected as a director of the Company For personal use only Number of Shares % For 44,570,721 85.15 Against 6,974,369 13.33 Discretionary * 797,105 1.52 100% The number of the Chairman’s discretionary proxy votes are 616,053 (1.18%). Note: These figures relate
Slide 34: Re-election of Director Huw G. Davies
For personal use only Item 3B Re-election of Director Huw G. Davies
Slide 35: Item 3B – Re-election of Huw G. Davies
Item 3B – That Huw G. Davies be re-elected as a director of the Company For personal use only Number of Shares % For 42,320,036 80.85 Against 9,220,054 17.61 Discretionary * 804,605 1.54 100% The number of the Chairman’s discretionary proxy votes are 623,553 (1.19%). Note: These figures relate to th
Slide 36: Granting of share units to the Managing Director
For personal use only Item 4 Granting of share units to the Managing Director
Slide 37: Grant of Share Units to the Managing Director
Item 4 – That approval be given for the purposes of ASX Listing Rule 10.14 and all other purposes for the grant of Share Units to the Managing Director, Brenden Mitchell, in accordance with the terms of the Boom logistics Limited For personal use only Long Term Incentive Plan and on the terms summar
Slide 38: For personal use only
For personal use only