Boom Logistics Ltd · ASX:BOL
Boom Logistics — Merger or Acquisition (June 2005)
31 slides from Boom Logistics's merger presentation, Jun 27, 2005
Slide 1: Investor Presentation: Acquisition of Sherrin Hire and Port Hedland crane business
LoGis Tics Investor Presentation Acquisition of Sherrin Hire. and Brambles’ Port Hedland crane business June 2005
Slide 2: Agenda
Agenda * Executive Summary * Sherrin Hire * Port Hedland Cranes ¢ BOOM post acquisitions ¢ Funding & Financials ¢ Capital Raising BOO Logistics
Slide 3: Executive Summary
Executive Summary * BOOM has entered into two separate purchase agreements to acquire: — Sherrin Hire ~ a national provider of travel towers and access equipment ~ Brambles’ Port Hedland crane business * Purchase prices: ~ Sherrin Hire: $60m equity value plus assumed debt of $70m for enterprise valu
Slide 4: BOOM Profile
BOOM Profile BOO Leading national provider of lifting solutions to Australian industry Largest provider of crane services with a current market share of 16% Focus is on the following key market segments: ~ Resources/Industrial maintenance ~ Government/Infrastructure -~ Non Residential Construction P
Slide 5: Sherrin Hire
Sherrin Hire BOO Logistics
Slide 6: Sherrin Hire profile
Sherrin Hire profile * Sherrin Hire is a provider of lifting solutions with a core focus on large scale travel towers ~ Itis distinctly different from other access equipment hire companies * Undisputed market leader in travel towers with more than 80% market share * Other access equipment (eg. Boom
Slide 7: Sherrin Hire product offering
Sherrin Hire product offering Travel Towers Access Equipment Cranes Material Handlers BOO Logistics
Slide 8: Sherrin Hire locations
Sherrin Hire locations Legend: ® Sherrin Hire @ BOOM Logistics Sherrin Hire has considerable overlap with existing BOOM locations BOO Logistics
Slide 9: Sherrin Hire revenue analysis
Sherrin Hire revenue analysis FY05 Revenue by Equipment Type FY05 Revenue by Industry Segment Plant hire/ Cranes Other 10% (wet) 11% Travel Towers (wet) 40% Access Small Travel Equipment 32% Towers (dry) 7% * Large scale travel towers is core focus * Other equipment is provided to support this servi
Slide 10: Sherrin Hire revenue analysis (Cont.)
Sherrin Hire revenue analysis (Cont.) FY05 Revenue by state VIC 12% WA 6% QLD 43% NSW 28% Other 3% « — Sherrin Hire is strongest on the eastern seaboard * — Strong potential for BOOM to facilitate growth in WA BOO Logistics Customers Sherrin Hire’s customer base is diversified and includes many blue
Slide 11: Sherrin Hire competitor analysis
Sherrin Hire competitor analysis Equipment Larger Competitors oates Hire | : 5 ° kyreae! fy Hire [Wet Hie] | Diy Hie [Wethire Wet Fire Travel Towers - Large N Y¥ + Smail Y Y Access Equipment - Large ¥ N - Small Y N Material Handlers. Y N Energy Equipment Y N Mobile Cranes: Y ¥ N N N N N N N N N N N
Slide 12: Sherrin Hire competitive advantages
Sherrin Hire competitive advantages * Undisputed market leadership in large end travel towers * Strong brand name —~ which will be retained by BOOM * Scale, range and quality of fleet * Wet and dry hire services provided * Reputation for outstanding customer service * OH&S compliance * High customer
Slide 13: Sherrin Hire acquisition rationale
Sherrin Hire acquisition rationale Consistent with growth and operating strategy Revenue and cost synergies Additional growth platform Further increases barriers to entry Low operational risk Positive financial impact BOO Logistics
Slide 14: Sherrin Hire risk factors
i Sherrin Hire risk factors Risk Mitigation Integration risk Cyclicality Loss of key management Industrial action Decline in service standards Multiple brand confusion BOO Logistics
Slide 15: Sherrin Hire financial performance
Sherrin Hire financial performance ‘oformat” FY0SE FYOSE E 30 June ($m: FY03 “EBITDA Depreciation Revenue increase (%) 15.2 EBITDA margin (%) Capital Expenditure Sustaining capex © 2.0 27 3.0 Growth capex 411.3 (1) Proforma FYOSE numbers reflect assumed revenue that would have been derived had the e
Slide 16: Port Hedland Cranes
Port Hedland Cranes BOOM Logistics
Slide 17: Port Hedland Cranes
Port Hedland Cranes * BOOM to acquire Brambles’ Port Hedland crane business (“Port Hedland Cranes”) effective 1 July 2005 * Last of 5 crane businesses acquired from Brambles * Sole customer is BHP Billiton lron Ore * Contract renewed on 1 April 2005 for 5 year term + option to extend for further 5 y
Slide 18: Port Hedland Cranes acquisition rationale
Port Hedland Cranes acquisition rationale * BOOM has an existing strong presence in Port Hedland — a growth corridor of WA * Combining Port Hedland Cranes with BOOM's Port Hedland operations, means BOOM is well positioned to take advantage of: ~ Planned expansion by BHP Billiton of its Port Hedland
Slide 19: BOOM Post Acquisitions
BOOM Post Acquisitions BOOM Logistics
Slide 20: BOOM segmentation post acquisition
BOOM segmentation post acquisition Customer Segments {proforma FY05 revenue) BOOM Govt/ Non-Res Infrastructure 14% Construction 14% Other 5% Maintenance- Maintenance- Mining 38% Industrial 29% BOO Logistics BOOM /Sherrin Hire Combined Govt/ Infrastructure 14% Maintenance- Mining 28% Non-Res Maintena
Slide 21: BOOM segmentation post acquisition
BOOM segmentation post acquisition Geographic Segments {proforma FY05 revenue) BOOM VIC 19% QLD 25% Ma NSW 22% WA 34% BOO Logistics BOOM /Sherrin Hire Combined Other 3% VIC 17% QLD 30% SN MINE NSW 24% WA 26%
Slide 22: BOOM segmentation post acquisition
BOOM segmentation post acquisition Revenue by hire mode Revenue by equipment Dry Hire 18% Wet Hire 82% BOO Logistics Plant 3% Access Rigging 7% Equip 9% Heavy Haulage 7% Other 4% Travel Towers 14% Cranes 56%
Slide 23: Funding & Financials
Funding & Financials BOO Logistics
Slide 24: Funding and gearing
Funding and gearing Sources and uses of funds Pro-forma Combined June 2005 Gearing Uses of funds $m Sherrin enterprise value 130.0 “Forecast net debt “Sherrin net debt assumed 70.0 : “Proforma FY05 net debt / EBITA i iderati ‘ “Proforma FY05 EBITA / interest Transaction costs 21 Forecast net debt /
Slide 25: FY05 performance update
FY05 performance update * FY05 NPAT expected to be around: Revenue ~ $45.7m (pre goodwill amortisation) ~ $15.3m (post goodwill amortisation) 59.4 * EPS growth of around 21% in FY05 * Expected FY05 NPAT is 5% above market consensus 41HO4 2H04 1HOS 2HOSE * Strength of result driven by: ~ Strong under
Slide 26: FY05 proforma financials (unaudited)
FY05 proforma financials (unaudited) FYOS FYO5 Statutory Proforma Forecast Revenue 131.0 26.7 457.7 66.9 224.6 EBITDA 32.4 8a 41.3 268 68.4 EBITDA margin 24.7% 33.3% 26.2%, 40.0% 30.3% Depreciation 7.2 21 9.3 87 . 18.0 EBITA 25.3 6.7 32.0 18.1 7 50.4 Goodwill amortisation 0.4 04 : 0.4 Amortisation 0
Slide 27: Outlook
Outlook * Continuing organic growth -~ Outlook remains positive across all key sectors * underpinned by demand outlook for resources and infrastructure * Cross-selling opportunities for BOOM / Sherrin Hire * Strategic acquisitions ~ Potential for further opportunistic “bolt-on” acquisitions BOO Logi
Slide 28: Capital Raising
Capital Raising 0 r n 0 i] a es
Slide 29: Equity offer structure
Equity offer structure * $67 million Piacement ~ — Indicative bookbuild price range of $2.05 to $2.15 ~ Comprises 2 tranches: * $35 million placement! of 16.75 million shares, up to 15% capacity, to settle T+3 (“Tranche 1 placement”) * $32 million additional placement, conditional on shareholder app
Slide 30: Indicative timetable
indicative timetable Institutional placement Timing Roadshow Tuesday 28 — Wednesday 29 June 2005 “Trading halt (2 days) plus suspension (1 day) Tuesday 28 — Thursday 30 June 2005 “Book closes 12.00pm Thursday 30 June 2005 “Pricing and allocation Thursday 30 June 2005 “Settle Port Hedland acquisition
Slide 31: Disclaimer
Disclaimer No responsibility for contents of Investor Presentation To the maximum extent permitted by law, BOOM Logistics, its advisers and representatives: ~- make no representation, warranty or undertaking, express or implied, as to the adequacy, accuracy, completeness or reasonableness of this In