BOOM LOGISTICS LIMITED — AGM Information 2017

Nov 22, 2017

==> picture [188 x 67] intentionally omitted <==

==> picture [355 x 333] intentionally omitted <==

Annual General Meeting

23 November 2017

==> picture [618 x 79] intentionally omitted <==

==> picture [140 x 43] intentionally omitted <==

==> picture [784 x 456] intentionally omitted <==

1

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Revenue Update
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

Incremental revenue FY17 v FY18

• Additional coal mine sites in Queensland

• Olympic Dam smelter shutdown

• Labour services contract for oil and gas customer

• Kiata, Yaloak and Mt Gellibrand Wind Farms to be completed in H1 FY18

• Two further Wind Farm construction projects to be commenced in H1 of FY18

• Maintenance contract extended by 12 months with a price increase on services

Total - circa $29m

• Reduction in revenue from contracts and projects that will not repeat in FY18, including impact of North West – circa $10m

2

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Impact of Market Conditions
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

• Demand or usage from our customers in the resources sector dropped by up to 30% as they adjusted their maintenance programs.

• A large number of capital projects came to an end leading to more cranes being available for the maintenance services sector where Boom was particularly strong.

• An oversupply of cranes ensued impacting prices for both services and second hand .

• equipment

• Prices paid for our services in these areas reduced by circa 25%.

• Enterprise agreements set in the high commodity price era had yearly escalation rates of circa 4% until the end of those agreements. Then rates remain the same until new enterprise agreement are renegotiated.

3

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Response to challenges
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

• Closing unprofitable depots;

• Selling surplus assets;

• Reducing debt to under $50 million from over $100 million; and

• Transforming the business to be flexible and able to respond to the volatility of the market and the increasing demands of our customers.

 Introducing new flexible EBA’s;

• Starting our own labour hire business, readi, to allow us to be more competitive for and expand services to, our customers; and

• Reducing branch and national overheads.

4

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Strategy
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

• Ensuring we deliver better outcomes from our current revenue base which includes:

• improving our cost to serve customers;

• partnering with our customers to better plan and so reduce waste; and

• Improving our contracting arrangements.

• Building new revenue streams around our current overhead structures with our lower cost model by:

• winning additional contracts near our existing depots – to maximise margin drop through to the bottom line;

• increasing our revenue share at each customer site by winning work with other contractors working on our customer sites; and

• building our Telco and Power company revenues to improve our Travel Tower business.

• Winning new revenue and projects in new markets and supplying more services. For example:

• expanding into infrastructure projects; and

• supplying labour and other services to our customers for shutdowns.

• Leveraging our systems and developing our people’s skills to deliver on the key revenue and profit improvement elements above.

5

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Wind Farm Market
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [794 x 451] intentionally omitted <==

6

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Wind Farm Crane Revenue Pipeline
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

Crane Wind Farm Revenue Opportunities (circa $300m)

==> picture [631 x 350] intentionally omitted <==

7

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples of Wind Farm Work
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [693 x 440] intentionally omitted <==

8

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples of Wind Farm Work
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [600 x 451] intentionally omitted <==

9

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples of Wind Farm Work
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [727 x 409] intentionally omitted <==

10

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples of Wind Farm Work
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [341 x 455] intentionally omitted <==

11

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples of Wind Farm Work
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [727 x 409] intentionally omitted <==

12

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Infrastructure Projects
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [642 x 469] intentionally omitted <==

13

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples of Civil Construction
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [612 x 459] intentionally omitted <==

14

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples of Civil Construction
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [672 x 449] intentionally omitted <==

15

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples of Civil Construction
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [665 x 450] intentionally omitted <==

16

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples of Civil Construction
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [420 x 455] intentionally omitted <==

17

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples of Civil Construction
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [684 x 457] intentionally omitted <==

18

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples Boom working in the
Mining Maintenance sector
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [617 x 463] intentionally omitted <==

19

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples Boom working in the
Mining Maintenance sector
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [685 x 411] intentionally omitted <==

20

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples Boom working in the
Mining Maintenance sector
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [596 x 448] intentionally omitted <==

21

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Examples Boom working in the
Mining Maintenance sector
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

==> picture [710 x 426] intentionally omitted <==

22

==> picture [618 x 79] intentionally omitted <==

==> picture [140 x 43] intentionally omitted <==

==> picture [554 x 201] intentionally omitted <==

23

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

First four months of FY18
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

Revenue as at the end of October was $62 million compared to $50 million for the prior corresponding period.

• Trading EDITDA for the first four months of this financial year sits at circa $8.0 million compared to $4.5 million for the first six months of FY17 and $10.6 million for the full year FY17.

• Both EBIT at $2.0 million and NPAT are positive for the first 4 months of the year.

• Trading EBITDA margin has improved to 13% from 7.9% in the second half of FY17 and 6.2% in the first half of FY17.

24

==> picture [188 x 67] intentionally omitted <==

==> picture [355 x 332] intentionally omitted <==

Ordinary Business

25

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Item 1
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

 Financial Statements and Reports

26

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Item 2
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

 That Mr. Terrence C Francis be re-elected as a Director of the Company

==> picture [655 x 310] intentionally omitted <==

----- Start of picture text -----

Source: Computershare Number of Shares % of all issued Shares
For 180,777,881 38.07%
Against 5,017,943 1.06%
Discretionary * 948,040 0.20%
Abstain 413,108 0.09%
----- End of picture text -----

• The number of the Chairman’s discretionary proxy votes are 724,167. Note: These figures relate to the proxies lodged 48 hours prior to the meeting.

27

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Item 3
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

 That Mr. Jean-Pierre Buijtels be elected as a Director of the Company

Source: Computershare	Number of Shares	% of all issued Shares
For	184,975,315	38.95%
Against	745,509	0.16%
**Discretionary ***	1,028,040	0.22%
Abstain	408,108	0.09%

• The number of the Chairman’s discretionary proxy votes are 804,167. Note: These figures relate to the proxies lodged 48 hours prior to the meeting.

28

==> picture [188 x 67] intentionally omitted <==

==> picture [355 x 332] intentionally omitted <==

Special Business

29

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Item 4
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

 That the Remuneration Report for the financial year ended 30 June 2017 be adopted

==> picture [666 x 309] intentionally omitted <==

----- Start of picture text -----

Source: Computershare Number of Shares % of all issued Shares
For 147,104,987 30.98%
Against 34,194,574 7.20%
Discretionary 774,972 0.16%
Abstain 543,639 0.11%
----- End of picture text -----*

• The number of the Chairman’s discretionary proxy votes are 551,099. Note: These figures relate to the proxies lodged 48 hours prior to the meeting.

30

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Item 5
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

• That for the purposes of ASX Listing Rule 10.14 and all other purposes, approval be given for the issue of the following Rights and Options to the Managing Director under the Company’s Executive Remuneration Plan on the terms summarised in the Explanatory Memorandum:

• (a) The issue of Rights to the Managing Director up to a maximum value of $202,500 in relation to the FY18 Salary Sacrifice Rights Plan;

• (b) The issue of Rights to the Managing Director up to a maximum value of $135,000 in relation to the deferred component of the FY18 Short Term Incentive Plan; and

• (c) The issue of Options to the Managing Director up to a maximum value of $303,750 in relation to the FY18 Long Term Incentive Plan.

31

==> picture [618 x 79] intentionally omitted <==

----- Start of picture text -----

Item 5
----- End of picture text -----

==> picture [140 x 43] intentionally omitted <==

 Grant of Rights and Options to the Managing Director

**_Source: Computershare _ **	Number of Shares	% of all issued Shares
For	147,267,636	31.01%
Against	34,762,711	7.32%
Discretionary*	685,424	0.14%
Abstain	302,401	0.06%

• The number of the Chairman’s discretionary proxy votes are 461,551. Note: These figures relate to the proxies lodged 48 hours prior to the meeting.

32

==> picture [618 x 79] intentionally omitted <==

==> picture [140 x 43] intentionally omitted <==

==> picture [310 x 415] intentionally omitted <==

Investor enquiries:

Brenden Mitchell Managing Director and Chief Executive Officer

03 9207 2500

Tim Rogers Chief Financial Officer

03 9207 2500

33

==> picture [618 x 79] intentionally omitted <==

==> picture [140 x 43] intentionally omitted <==

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 use of words such as 'project', ‘believe’, 'foresee', 'plan’, 'expect', 'aim', 'potential’, ‘goal’, ‘target’, ‘intend', 'anticipate’, 'believe', 'estimate’, 'may', ‘could’, 'should', 'will’ or similar expressions. All such forward looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies and other factors, many of which are outside the control of Boom, which may cause the actual results or performance of Boom to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward-looking statements speak only as of the date of this announcement. Factors that could cause actual results or performance to differ materially include without limitation the following: risks and uncertainties associated with the Australian and global economic environment and capital market conditions, fluctuations in foreign currency exchange and interest rates, competition, Boom's relationships with, and the financial condition of, its suppliers and customers, or legislative changes, or regulatory changes or other changes in the laws which affect Boom's business. The foregoing list of important factors is not exhaustive. There can be no assurance that actual outcomes will not differ materially from these statements. Readers should not place undue reliance on forward looking statements. Except as required by law and ASX Listing Rules, Boom undertakes no obligation to update publicly or otherwise revise any forward looking statement as a result of new information, future events or other factors.

34

==> picture [618 x 79] intentionally omitted <==

==> picture [140 x 43] intentionally omitted <==

35