Boom Logistics Ltd · ASX:BOL

Boom Logistics — Shareholder Meeting (October 2014)

18 slides from Boom Logistics's shareholder meeting presentation, Oct 22, 2014

  1. Slide 1: 2014 Annual General Meeting

    For personal use only 2014 Annual General Meeting 22 October 2014

  2. Slide 2: Mr John Robinson, Chairman

    For personal use only Mr John Robinson Chairman 1

  3. Slide 3: FY14 Performance

    FY14 Performance For personal use only  Twin pressures of downward price movements and lower activity levels across our traditional client base  Excess service capacity built up over the boom years of the resources sector is driving significant price competition for new tender opportunities  Boom

  4. Slide 4: FY14 Performance

    FY14 Performance For personal use only  Cost control has been a focus with a progressive lowering of the cost structure in both the fixed and variable categories  Labour force reductions to match increased efficiency and changing customer demand  Investment in systems and processes to streamline

  5. Slide 5: FY14 Result

    FY14 Result % For personal use only $m FY13 FY14 change NTA per share 0.51 0.49 Total Revenue 338.4 273.3 (19%) Total Trading EBIT 26.0 14.0 (47%) Trading EBIT Margin 8% 5% Trading Net Profit after Tax 10.7 3.9 (65%) Non-Trading Adjustments (13.2) (83.4) Statutory Net Profit after Tax (2.5) (79.5) N

  6. Slide 6: Cashflow and debt reduction

    Cashflow and debt reduction  Substantial free cash flows applied to debt reduction For personal use only  FY15 planned redundant asset sales of $15 million and modest new capital requirements Q115 debt reduction achieved in addition to cash funding $3.9 million of asset purchases 5

  7. Slide 7: Outlook for FY15

    Outlook for FY15 For personal use only  Continue to keep downward pressure on costs  Business restructuring wherever efficiency gains are identified  Continued diversification of the revenue base, including competing for a share of infrastructure projects along the East Coast 6

  8. Slide 8: Mr Brenden Mitchell, Managing Director

    For personal use only Mr Brenden Mitchell Managing Director 7

  9. Slide 9: FY14 Review

    FY14 Review For personal use only  Commodity price degradation impacting Boom’s customers  Crane Logistics maintenance services have reduced and infrastructure spend has not yet increased on the East Coast  Travel Tower project delays in the utilities segment  Reduced pricing and lower demand ha

  10. Slide 10: FY14 Actions

    FY14 Actions For personal use only  Headcount reductions of 103 in FY14 with a further 44 in Q115  Deciding not to tender at a loss for the BMA contract  “One Boom” integration project commenced to generate cost savings and facilitate cross selling of services  Robust EBA negotiations and contin

  11. Slide 11: Safety

    Safety For personal use only  20% improvement in the Total Recordable Injury Frequency Rate of the course of the year  Striving to achieve a TRIFR below 10 during FY15  Safe Act Observations by Managers and Supervisors have increased 63% year on year – the highest level in 5 years 10

  12. Slide 12: Customers

    Customers  Continued focus on serving our customers For personal use only  Bald Hills Wind Farm  Sydney Rail Corp bridge build  Boom continues to deliver a strong value proposition to customers facing significant time, quality and safety pressures 11

  13. Slide 13: Organisational Structure

    Organisational Structure  More responsive through faster decision making For personal use only Chief Executive Officer Brenden Mitchell CFO & Director of Executive General Strategy Manager - East Coast Paul Martinez Tony Spassopoulos General Manager Executive General Health Safety Manager - West Co

  14. Slide 14: Cost Focus

    Cost Focus For personal use only  Redundancies and labour management have driven cost reductions  17% reduction in direct labour headcount  14% reduction in overhead labour headcount  As a consequence, labour cost as a percentage of revenue has reduced in FY14 13

  15. Slide 15: Asset Base

    Asset Base  51 surplus cranes sold during FY14 For personal use only  $17.8 million proceeds  Capital expenditure limited to $16.8 million  Crane fleet average age of 9 years  NTA of 49 cents per share underpinned by:  Over $196 million of capital investment over the last 5 years  The refurbi

  16. Slide 16: FY15 Focus

    FY15 Focus  Continue to serve our customers well and safely For personal use only  Profitable revenue growth in areas we currently operate in  Delivering on current projects to secure ongoing revenue streams  Expanding opportunities with recently gained customers  Continue our focus on costs 

  17. Slide 17: 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

  18. Slide 18: 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

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