BOOM LOGISTICS LIMITED — AGM Information 2008

Oct 23, 2008

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Annual General Meeting 24 October 2008 Chairman John Robinson

Introduction

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Overview of the FY08 financial year.

Rapid growth has obscured underlying integration problems and resulted in changes to business structure.

The issues emerged in December Quarter of the 2008 year and are being addressed.

Detailed analysis revealed prior period errors in accounting treatments in Boom Sherrin, particularly asset carrying values and depreciation rates.

Full Balance Sheet review has now been undertaken with further prior period adjustments.

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Providers of Lifting Solutions to Australia

Correction of prior years balance sheet adjustments – Balance Sheet Impacts

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		1H08			Prior		Current		Total
		Intangibles			-		-		-
		Property, Plant & Equipment			(12.5m)		(4.1m)		(16.6m)
		Tax impacts			3.8m		1.2m		5.0m
		Total 1H08 Adjustment			(8.7m)		(2.9m)		(11.6m)
		2H08			Prior		Current		Total
		Intangibles			(1.2m)		(2.8m)		(4.0m)
		Property, Plant & Equipment(including Stamp Duty)			(12.2m)		2.7m		(9.5m)
		Tax impacts			6.1m		(0.5m)		5.6m
		Total 2H08 Adjustment			(7.3m)		(0.6m)		(7.9m)
		Total FY08 Balance Sheet Adjustment			(16.0m)		(3.5m)		(19.5m)

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Providers of Lifting Solutions to Australia

Chief Executive appointment

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Brenden Mitchell B.Sc (Chem), B. Bus

Brambles Limited

12 years

Cleanaway 6 years

Most recently, Director Municipal Operations, Brambles Cleanaway, UK Business Unit turnaround ($550m turnover and 6,000 employees) CHEP 6 years Last role, General Manager Sales – CHEP Australia

Prior to Brambles, Mr Mitchell's experience was in Fast Moving Consumer Goods

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Providers of Lifting Solutions to Australia

Revenue growth

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$ 450.0 m
$ 400.0 m
$ 350.0 m
$ 300.0 m
$ 250.0 m
$ 200.0 m
$ 150.0 m
$ 100.0 m
$ 50.0 m
$ 0.0 m
2004/05 2005/06 2006/07 2007/08
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Providers of Lifting Solutions to Australia

Net Profit after Tax (prior to FY08 accounting adjustments)

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$ 40.0 m
$ 35.0 m
$ 30.0 m
$ 25.0 m
$ 20.0 m
$ 15.0 m
$ 10.0 m
$ 5.0 m
$ 0.0 m
2003/04 2004/05 2005/06 2006/07 2007/08
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Providers of Lifting Solutions to Australia

Dividends per share

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12 c
10 c
8 c
6 c
4 c
2 c
0 c
2003/04 2004/05 2005/06 2006/07 2007/08
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Providers of Lifting Solutions to Australia

Quarterly NPAT results (prior to FY08 accounting adjustments)

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$ 10.0 m $ 9.0 m $ 8.0 m $ 7.0 m $ 6.0 m $ 5.0 m $ 4.0 m $ 3.0 m $ 2.0 m $ 1.0 m $ 0.0 m Q1 07/08 Q2 07/08 Q3 07/08 Q4 07/08 Q1 08/09

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Providers of Lifting Solutions to Australia

Summary of syndicated borrowings

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• nabCapital, GE Capital and BankWest

• $175m 3 year revolving debt facility

• $32m 3 year working capital facility

• Majority of favourable interest rates preserved

• Average rate of approximately 9%

• Commitment to debt reduction

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Providers of Lifting Solutions to Australia

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Annual General Meeting 24 October 2008 Managing Director Brenden Mitchell

FY08 results

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$m	2008	2007	%
	Actual	Restated	change
Financialperformance
Operating Revenue	410.3	350.0	17%
EBITDA	90.0	96.8	(7%)
EBIT	47.5	62.9	(24%)
Net Profit After Tax	18.6	34.4	(46%)
Earnings per share (cents)	10.9	20.2
Dividend per share (cents)	5.5	11.0

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Providers of Lifting Solutions to Australia

FY08 Financial position

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	FY08 Actual FY07 Actual
Year Ended 30 June 2008 ($m)
Cash	1.8 9.8
Receivables	77.1 66.2
Inventories	20.6 21.4
Plant & equipment	378.6 356.9
Intangibles	112.4 116.8
Other current & non-current assets	15.4 9.6
Total assets	605.9 580.7
Payables	44.1 45.6
Borrowings	254.9 238.4
Provisions	12.4 10.2
Other current & non-current liabilities	19.0 13.9
Total liabilities	330.4 308.1
Net assets	275.5 272.6
Gross Debt / Gross Debt + Equity
	48% 47%

• Restated FY07 comparatives.

• Total Asset position is $25m higher after:

• Net $20 million write down

• – $38 million depreciation

• – $78 million of capital expenditure

• This reflects a strong cash generating business given the Debt to Debt + Equity ratio only increased to 48%.

• Current climate requires an approach to reduce debt.

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Providers of Lifting Solutions to Australia

Debt Reduction

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• A rigorous capital allocation process and discretion and reduction in overall capital spend

• Asset Sales where appropriate (non-core or low utilisation assets)

• Excess from strong cash flows will pay down debt

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Providers of Lifting Solutions to Australia

FY08 issues

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• Growing too fast – reflected in overhead increases and gross margin erosion ($6m)

• WA contracted cross hire expense for casual hire revenue ($2m)

• Boom Sherrin / Moorland integration ($2m)

• Underperforming capital investment – Boom Sherrin ($3m)

• Crane hire systems and processes ($2m)

• Skills shortages in remote areas ($1m)

• Weather – Bowen Basin and Hunter Valley ($3m)

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Providers of Lifting Solutions to Australia

Actions

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• Overheads investment focusing on margin improvement

• Cross Hire - back to back agreements and long term forecasting

• Sherrin / Moorland – systems issue remedied, revenue recovery required

• Systems – Core crane customer interface implementation between January – June 2009

• Addressing underperforming assets for possible divestment

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Providers of Lifting Solutions to Australia

Market Focus

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• Capital intensive industries requiring specialist maintenance services.

• Major infrastructure projects delivery.

• Travel Towers and high value access equipment where our people, capability and equipment mix has given us the market leadership position.

• Crane sales and services.

• Integrated lifting solutions requiring our diverse range of equipment services and specialised operating and engineering skills

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Providers of Lifting Solutions to Australia

Leadership team

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Brenden Mitchell
Chief Executive Officer
Iona MacPherson Peter O’Shannessy Paul Martinez
Chief Financial Officer Chief Information
& Company Secretary Chief Operating Officer Officer
Tony Spassopoulos Rosanna Hammond
Executive General
Manager Sales & General Manager
Marketing Human Resources
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Providers of Lifting Solutions to Australia

Our Goals

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• To be the safest and Leading lifting solutions company in Australia and equal to the best in the world.

• To be recognised as a top performing company of high standing and integrity delivering superior value for our customers, people and shareholders.

• To be respected by the communities we are part of.

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Providers of Lifting Solutions to Australia

What’s important to us

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• Safety Always – people, community, equipment, property, environment.

• Our Customers – they provide our living and we want them to succeed.

• Our People – our diversity and different skills make us strong.

• Teamwork – look out for each other, contribute and listen and are accountable as individuals and as a team.

• Achieving our best so that our business thrives.

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Providers of Lifting Solutions to Australia

Q109 results

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Achieved Funding for 3 Years

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Providers of Lifting Solutions to Australia

Q109 results - NPAT

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$ 8.0 m
$ 7.0 m
$ 6.0 m
$ 5.0 m
$ 4.0 m
$ 3.0 m
$ 2.0 m
$ 1.0 m
$ 0.0 m
Q4 07/08 Q1 08/09
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Providers of Lifting Solutions to Australia

Q109 results

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$m	Q4 FY08	Q1 FY09	%
	Actual	Actual	change
EBIT	$M	$M
James Equipment	1.8	1.3	(27.7%)
Crane Hire	9.3	13.8	48.3%
Boom Sherrin	4.6	4.7	2.2%
National Office	(3.6)	(4.1)*	(13%)
Total	12.1	15.7	29.7%

* - incorporating $0.5m of one-off costs

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Providers of Lifting Solutions to Australia

Market and Business opportunities

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• The resources and major infrastructure project pipeline

• The underlying contract maintenance work we carry out

• Crane sales and services with the strength of the Tadano Brand

• and opportunities for second hand crane sales

• Driving sales and service in the Boom Sherrin business, particularly

• in Melbourne

• Integrated lifting solutions gives opportunity for integrated contracts

• Delivering on the internal cost and system issues

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Providers of Lifting Solutions to Australia

Risks in a turbulent market

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• An overall slow down in the resources and infrastructure sectors

• Major shutdown work being delayed

• Potential impact of the exchange rate on new crane sales and capital costs

• Slower recovery in the Boom Sherrin business

• Lower demand in the casual hire market

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Providers of Lifting Solutions to Australia

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Outlook

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Providers of Lifting Solutions to Australia

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Resolutions

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Providers of Lifting Solutions to Australia

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Item 1

Financial Statements and Reports

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Providers of Lifting Solutions to Australia

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Item 2

Remuneration Report

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Providers of Lifting Solutions to Australia

Item 2

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Remuneration Report (non binding resolution)

	Number of shares	%
FOR	41,966,609	80.91
AGAINST	8,189,928	15.79
DISCRETIONARY*	1,712,652	3.30
		100%

• The number of the Chairman's discretionary proxy votes are 1,332,627 (2.58%)

Note: These figures relate to the proxies lodged 24 hours prior to the meeting

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Providers of Lifting Solutions to Australia

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Item 3

Appointment of Auditor

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Providers of Lifting Solutions to Australia

Item 3

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That for the purpose of section 327B of the Corporations Act and for all other purposes, KPMG having been nominated and consented, be appointed as Auditors of the Company with effect from the end of this meeting and to authorise the directors of the Company to determine the Auditor’s remuneration.

	Number of shares	%
FOR	50,526,409	96.57
AGAINST	65,271	0.12
DISCRETIONARY*	1,733,099	3.31
		100%

*** The number of the Chairman's discretionary proxy votes are 1,351,224 (2.59%) Note: These figures relate to the proxies lodged 24 hours prior to the meeting**

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Providers of Lifting Solutions to Australia

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Item 4

Re-election of director

Terrence C. Francis

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Providers of Lifting Solutions to Australia

Item 4 (a)

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That Terrence C. Francis be re-elected as a director of the Company

	Number of shares	%
FOR	49,397,666	94.56
AGAINST	1,093,532	2.09
DISCRETIONARY*	1,747,049	3.35
		100%

• The number of the Chairman's discretionary proxy votes are 1,367,024 (2.63%)

Note: These figures relate to the proxies lodged 24 hours prior to the meeting

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Providers of Lifting Solutions to Australia

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Item 4

Re-election of director

Jane M. Harvey

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Providers of Lifting Solutions to Australia

Item 4 (b)

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That Jane M. Harvey be re-elected as a director of the Company

	Number of shares	%
FOR	49,375,699	94.50
AGAINST	1,116,727	2.13
DISCRETIONARY*	1,757,821	3.37
		100%

• The number of the Chairman's discretionary proxy votes are 1,377,796 (2.65%)

Note: These figures relate to the proxies lodged 24 hours prior to the meeting

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Providers of Lifting Solutions to Australia

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Item 5

Amendments to the Constitution

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Providers of Lifting Solutions to Australia

Item 5

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That the Constitution of Boom Logistics Limited be amended with effect from the close of the meeting as set out in the amended Constitution tabled at the meeting and signed by the Chairman of the meeting for the purposes of identification.

	Number of shares	%
FOR	47,453,839	91.16
AGAINST	2,815,076	5.41
DISCRETIONARY*	1,786,146	3.43
		100%

• The number of the Chairman's discretionary proxy votes are 1,406,121 (2.71%)

Note: These figures relate to the proxies lodged 24 hours prior to the meeting

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Providers of Lifting Solutions to Australia

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Item 6

Granting of share units to the Managing Director

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Providers of Lifting Solutions to Australia

Item 6

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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 Long Term Incentive Plan and on the terms summarised in the Explanatory Notes.

	Number of shares	%
FOR	41,122,637	78.88
AGAINST	9,324,673	17.88
DISCRETIONARY*	1,688,590	3.24
		100%

*** The number of the Chairman's discretionary proxy votes are 1,315,065 (2.53%)**

Note: These figures relate to the proxies lodged 24 hours prior to the meeting

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Providers of Lifting Solutions to Australia

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Annual General Meeting 24 October 2008