BABYLON PUMP & POWER LIMITED

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Investor Presentation

22 June 2020

ASX: BPP

Important Notice and Disclaimer

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This presentation has been prepared by Babylon Pump & Power Limited (“ Babylon ”) (ASX: BPP) for information purposes only.

This presentation is not a product disclosure statement or prospectus for the purposes of the Australian Corporations Act 2001 (Cth), nor does it constitute financial product or investment advice or a recommendation, offer or invitation by any person or to any person to sell, purchase or otherwise invest in securities in BPP in any jurisdiction. Neither this presentation nor anything in it shall form the basis of any contract or commitment.

This presentation contains general information only and does not take into account the investment objectives, financial situation and particular needs of individual investors. Investors should make their own independent assessment of the information in this presentation and obtain their own independent advice from a qualified financial adviser, lawyer, accountant, tax or such other adviser as considered appropriate having regard to their objectives, financial situation and needs before taking any action.

The information in this presentation includes historic information about the performance of BPP and securities in BPP. That information is historic only, and is not an indication or representation about the future performance of BPP or securities in BPP. You should not place undue reliance on any such information.

No representation or warranty, express or implied, is given as to the accuracy, completeness, reliability or adequacy of any statements, estimates, opinions or other information, or the reasonableness of any assumption or other statement, contained in this presentation. Nor is any representation or warranty, express or implied, given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, forward-looking statements or potential returns contained in this presentation. Forward-looking statements include, but are not limited to, information which reflects management’s expectations regarding BPP's future growth, results of operations (including, without limitation, capital expenditures), performance (both operational and financial) and business prospects and opportunities. Often, forward-looking statements include words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

Forecasts, forward-looking statements or potential returns only reflect subjective views held by BPP, and are based on certain assumptions made by BPP, as at the date specified in the relevant information and are by their nature subject to significant uncertainties and contingencies, many of which are outside the control of BPP. Although management believes that the assumptions made and the expectations represented by such information are reasonable, there can be no assurance that forward-looking statements will prove to be accurate. Actual events and results may vary from the events or results expressed or implied in such statements. Given these uncertainties, you should not place undue reliance on any such statements

Subject to any continuing obligations under applicable law or any stock exchange listing rules, in providing the information in this presentation, BPP des not undertake any obligation to publicly update or revise any forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

To the maximum extent permitted by law, BPP and its related bodies corporate, directors, officers, employees, advisers and agents disclaim all liability and responsibility (including without limitation any liability arising in negligence, statute or otherwise) for any direct or indirect loss or damage which may arise or be suffered by any person through use or reliance on anything contained in, or omitted from, this presentation. An investment in BPP securities is subject to investment and other known and unknown risks, some of which are beyond the control of BPP. BPP does not guarantee any particular rate of return or the performance of BPP securities.

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Babylon Pump & Power Limited

A Rapidly Growing Specialist Mining Services Provider

Babylon delivers specialist services to the resource and infrastructure sectors, focused on two high value segments:
Rental of specialty pumping and power generation equipment
Maintenance and rebuild services for large diesel driven equipment

▪ FY20 year to date highlights include

Primepower QLD acquisition revenue growth higher then expected
Rental contract renewals at Nickel West and BHP Iron Ore
Bank support via increased finance facilities

▪ Strong financial performance

1249% EBITDA growth YTD vs full FY19 and positioned for ongoing growth
Positive operational cash flow for FY20
Babylon is led by an experienced team, with a proven track record and high-level of employee share ownership (circa 15%)

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$15.0 m ↑ 31%
Revenue TYD
$1.5 m
↑ 1249%
EBITDA YTD
$21.0 m
↑ 84%
Assets
16 Tier 1
↑ 78%
Clients
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April FY20 YTD vs FY19 unaudited

Babylon Pump & Power Limited

Corporate Snapshot

ASX Code: BPP	ASX Code: BPP
Ordinary Shares	837m
Performance Rights	26m
Market cap (@ 1.5 cents)	$12.6m
Average Monthly Volume (shares)	9.6m
Trading Range since Listing (cents)	1.3 – 2.5
Top 20 Holdings	61%

Directors & Senior Management	Directors & Senior Management
Michael Shelby	Executive Chairman
Patrick Maingard	Executive Director
Michael Kenyon	Non Exec. Director and Company Secretary
Mark Lagemann	Operations Manager
Alan Ings	Chief Financial Officer

Substantial & Major Shareholders	Substantial & Major Shareholders
G & N Lord Superannuation Pty Ltd / Geoff Lord	19.3%
FGI Holdings Pty Ltd	6.6%
Total Management and Staff	14.8%

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Total Revenue

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$18,000,000
$12,000,000
$6,000,000
$0
FY18 FY19 FY20 (April YTD)
1st Half 2ndHalf
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Share Price Performance and Volume

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0.05
7.00
6.00 0.04
5.00
0.03
4.00
3.00 0.02
2.00
0.01
1.00
0.00 0.00
)
Volume('m Price ($)
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Babylon Pump & Power Limited

COVID-19 Update

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Babylon’s revenues and rate of business growth have not been materially impacted by COVID-19
Implemented interventions based on government guidelines for distancing and remote working
No COVID-19 illness recorded to date
Regular and routine communication with staff, suppliers and customers ensuring adherence to guidelines and best practices
BPP corporate HSEQ structures and reporting currently being implemented with Primepower QLD
Early operational intervention secured supply chain and prevented material disruption
Sustained growth through COVID period resulting in record revenue in month of April (c$2.3m)

Babylon Pump & Power Limited

Dual business model with strong revenue streams

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Babylon’s business model is focused on two complementary areas experiencing strong demand from major mining and oil & gas service companies as well as major iron ore producers and equipment providers:

Specialty Rental

Rental of specialty diesel driven pumping and power generation equipment
The equipment business is focused on:
Generators from 20Kva to 1.25MW container-based sets capable of being synchronized for large power requirements
Pumps from 300hp to 1200hp with advanced control systems for remote monitoring and operation
Compressors, boosters and dryers for specialty high pressure applications

Diesel Maintenance

Maintenance and rebuild services for large diesel engines and heavy components
Specialist in Caterpillar and Cummins engines
Primary focus on Western Australian and Queensland resource sectors

Babylon Pump & Power Limited

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Specialty Rental

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Strong Growth in FY20

Extension of Power Generation Contract with BHP Iron Ore
Secured Dewatering Services Contract with BHP Nickel West
Multiple O&G pressure pumping projects in WA
Portable power generation supply to support Yandin Wind Farm Project

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Growth Outlook

Expanding rental offering into QLD market
In negotiation for specialty pumping application using remotecontrolled technology new to rental market
Adding to fleet of high flow and high head pumps to support mine dewatering projects
Sales and marketing activities to scale up with easing of COVID19 restrictions

Babylon Pump & Power Limited

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Diesel Equipment Maintenance

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FY20 business update

Primepower QLD integrated and experienced leadership installed
Opportunities identified to increase capacity in Mackay facility
Purchasing synergies have increased efficiency and made supply chain more robust
Continued/recurring work across top tier clients predominately in iron and coal sectors

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Growth Outlook

Sales and marketing activities to recommence with lifting of COVID19 restrictions
Opportunity to increase component rebuild work with faster turnaround times to improve cash flow
Investment in core engines in FY20 supports growth of service exchange business model

Babylon Pump & Power Limited

Growing Tier 1 Client Base

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Babylon currently services the iron ore, gold, nickel, and oil & gas sectors with significant opportunities in infrastructure, alternative energy and other commodities, in Western Australia and in Queensland through its subsidiary Primepower QLD

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Babylon Pump & Power Limited

Key Recent Projects

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BHP Billiton Iron Ore Pty Ltd

Project Value $1M/yr+
Hire, install, commission and maintain 5MW temporary power generation

Pressure Pumping Barrow Island

Project Value <$0.5M
Hire, install, commission, operate and maintain 2x Zone II rated well service pumps

730E Module Rebuild Program

Project Value $2.5M/yr+
• Golding Contractors Pty Ltd & Coronado Curragh Pty Ltd

BHP Billiton Nickel West Pty Ltd

3-year services contract
Hire, install, commission and maintain dewatering and temporary power generation

Babylon Pump & Power Limited

Positive Growth Trajectory

REVENUE GROWTH

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Revenue
ASSET GROWTH
Total Assets
Million ($M)
Million ($M)
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Growth in assets driven by rental assets and core engines to support diesel rebuild services

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EBITDA TRAJECTORY

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EBITDA
Thousand ($'000)
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TIER 1 CLIENTS

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Tier 1 Clients
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100 clients in total with no single client representing more than 20% of revenue

Babylon Pump & Power Limited

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Babylon - Strategy Moving Forward

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5
Set ambitious target of
$100M + revenue within next
5 years
4
Continuously assessing
further strategic acquisitions
to support core business
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3
Continue to expand Specialty
Rental assets to maximise
revenue opportunities
2
Securing material engine
rebuild programmes and new
rental projects
1
Ongoing Organic Growth with
improved bank support,
expand equipment rental
services into QLD
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Babylon Pump & Power Limited

Outlook

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Key growth drivers have not changed – still pent up demand for asset maintenance and need for specialty pumping solutions in resource sectors
Higher US dollar will increase replacement value of gear, giving customers an incentive to rebuild rather than replace
COVID restrictions are increasing the lead time for new gear providing a further incentive to rebuild existing equipment
Babylon has a locally based workforce with no cross-country or international FIFO workers, which has prevented disruption from COVID travel restrictions
Opportunity to expand into the growing gold sector going forward
Opportunity for a quick entry into QLD rental market using Babylon’s existing expertise and reputation
Increased NAB asset and working financing has improved liquidity working capital flexibility
Increasing level of enquiries for work in the new FY based on new client budgets is indicating a strong start to FY21
Headwinds – higher US dollar increases the parts component of diesel maintenance which we expect to be able pass along; potential for new supply chain slowdowns due to COVID restrictions

Babylon Pump & Power Limited

Investment Highlights

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ACCELERATING TRAJECTORY - Growth to date has been well supported in both equipment maintenance and specialty rental sectors
RECORD REVENUE - Record revenue achieved in Q3 and Q4 to date positions Babylon for $17M+ revenue for FY20 with record EBITDA
PLATFORM FOR FURTHER GROWTH - Strong operating performance with a clear strategy and capability to move to the next level by gaining scale organically and through targeted strategic acquisition
COVID NEUTRAL - No material disruptions due to COVID shows the strength of business processes and dedicated staff
ACQUISITION INTEGRATION - Smooth integration of Primepower QLD has it performing above expectations with growth to accelerate as Babylon’s specialty rental business is introduced to the QLD market
OPPORTUNITIES - Successful integration and performance of Primepower QLD lends confidence for further accretive acquisitions on BPP’s radar
EXPERIENCED CAPABLE BOARD Board and executive team has united vision, experience and skills to continue to win market share and drive growth

Babylon Pump & Power Limited

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Babylon Pump & Power Limited 74 Harrison Road Forrestfield WA 6058

Michael Shelby | Executive Chairman [email protected]

Babylon Pump & Power Limited

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BABYLON PUMP & POWER LIMITED Investor Presentation 2020

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