BOOM LOGISTICS LIMITED — Annual Report 2021

Aug 25, 2021

Boom Logistics FY21 Results

FY21 FULL YEAR RESULTS

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Revenue $173.3m down from $185.5m

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Operating Cashflow $25.9m up from $24.3m (before tax)

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EBITDA $36.3m up from $23.8m

EBIT $4.5m up from $(8.1)m

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ROCE Gearing 2.5% 26% up from (1.4)% up from 17% (net debt/equity)

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NPAT $1.2m up from $(17.0)m

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Final Dividend 1.0¢ Total 1.5¢ for FY21

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Boom Logistics FY21 Results

SAFETY ALWAYS

• Boom’s safety performance is a key operational metric, with emphasis on risk management, leadership and assurance

• Safety ‘reset’ undertaken during the year to increase focus on safety management interactions

• Lost Time Injury Frequency Rate (LTIFR) was zero in FY21, down from 4.4 in FY20

• Three year HSEQ Strategic Plan implemented with transition to new safety standard ISO 45001

• Response to COVID-19 in line with government guidelines including travel restrictions, cleaning and social distancing protocols implemented

• Safety of our customers and employees is our priority as we continue our journey towards zero harm

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Lost Time
Injury
Frequency
Rate (LTIFR) of
Zero
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SAOFR improved TRIFR improved by 28% in FY21 by 36% in FY21

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Safe Act Observation Frequency Rate (SAOFR)

Total Recordable Injury Frequency Rate (TRIFR)

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Boom Logistics FY21 Results

OPERATING RESULTS

• Return to profit with EBIT improvement from tightened cost structure and refocus on quality revenue in key markets

• Lower revenue due to:

• One less major wind farm project in period

• Project delays related to supply chain

• Reduced shutdown activity across mining sector

• Labour revenue impacted by COVID restrictions

• State lockdowns delaying / cancelling projects

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FY21 EBITDA

	2021 $'m	2020 $'m	Change %
Revenue from Services Other Income less: Direct Expenses Gross Profit GP% Indirect Expenses Central Costs Impairment Profit on Sale of Assets EBITDA % less: Depreciation Expense EBIT less: Net Borrowing Costs less: Tax Expense Net Profit/ (Loss) After Tax Statutory EBITDA	173.3 185.5 -7% 0.0 0.0 (113.1) (133.2) -15% 60.2 52.3 15% 34.7% 28.2% (19.9) (21.4) -7% (4.6) (5.6) -18% 0.0 (1.9) 0.6 0.4 36.3 23.8 53% 20.9% 12.8% (31.8) (31.9) 0% 4.5 (8.1) (3.3) (4.4) -25% 0.0 (4.5) 1.2 (17.0)

$36.3m

up 53% on pcp

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Boom Logistics FY21 Results

BALANCE SHEET

• Gearing at 26% in line with Board approved range of between 20%-35%

• Investment in new operating fleet to provide capacity for growth in key markets in FY22:

• Deliver BHP Olympic Dam shutdown 1H FY22

• Targeting new mining contracts 2H FY22

• Major energy projects with new travel towers

• ROCE increased to 2.5%, with improvement forecast in FY22 from new assets

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3 year finance facility

commenced December 2020 Increased capacity with flexible terms and lower cost

	2021 $'m	2020 $'m	Change %
2.3 2.1 0.2 42.9 34.6 8.3 2.7 3.5 (0.8) 0.0 3.1 (3.1) 122.7 124.2 (1.5) 25.6 22.8 2.8 0.4 1.6 (1.2) Cash Trade and Other Receivables Other Assets Assets Held for Sale Property Plant and Equipment Right of Use Asset Lease Receivable
Total Assets 196.6 191.9 4.7
15.6 11.9 3.7 31.7 21.7 10.0 (0.3) (0.1) (0.2) 16.8 19.9 (3.1) 9.6 8.9 0.7 8.1 9.9 (1.8) 2.4 4.4 (2.0) Employee Provisions Other Liabilities Tax Payable Other Lease Liabilities Payables Borrowings and Finance Leases Pre paid borrowing costs
Total Liabilities 83.9 76.6 7.3
Net Assets 112.7 115.3 (2.6)
Gearing (Net Debt/ Equity) 26% 17% NTA (cents per share) 0.26 0.27

• Other Lease Liabilities include rented cranes, light commercial vehicles, transport assets and property leases

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Boom Logistics FY21 Results

CASH FLOW

• Capital recycling improving asset utilisation as older and underutilised assets are sold

• Working capital impacted with timing of new project revenues ($6.8m received in July 21 from wind farm invoices)

• Net cash capex of $9.9m with new asset purchases providing:

• capacity for growth

• enhanced technology and safety systems

• reduced maintenance costs

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Operating Cashflow $25.9m before tax

	2021 $m	2020 $m	mvmt $m
EBITDA 36.3 23.8 12.5 (7.5) 4.8 (12.3) (2.9) (4.3) 1.4 Movement in working capital and non-cash items Interest paid (net of interest received)
25.9 24.3 1.6 Income tax (paid)/ received (2.0) 4.5 (6.5) Cash Flow from operations before tax
23.9 28.8 (4.9) Net cashprovided by operating activities
(14.7) (2.2) (12.5) 4.8 4.6 0.2 Purchase of plant and equipment Proceeds from the sale of plant and equipment
(9.9) 2.4 (12.3) Net cash(used in)/ provided by investing activities
(0.4) 0.0 (0.4) 5.8 (16.0) 21.8 (14.9) (12.8) (2.1) (4.3) 0.0 (4.3) 0.0 (1.7) 1.7 Payment of Lease Liabilities Payment of Dividends Payments for Shares Bought Back Net draw down/ (repayment) of borrowings Transaction costs related to borrowings
(13.8) (30.5) 16.7 Net cash used in financing activities
0.2 0.7 (0.5) Net Increase in Cash

* Income tax received in prior year to be repaid interest free over 24 monthly instalments

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Boom Logistics FY21 Results

DIVERSIFIED REVENUES & GROWTH MARKETS

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FY21 revenue by sector
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6%
11%
FY21 47%
$173m
23%
13%
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Mining &
Resources
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Infrastructure
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Wind, Energy,
Utilities
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Industrial
Maintenance
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• Mining maintenance work consistent during year

• Site restrictions & labour shortages - reduced shutdown volume

• • Strong growth expected with major shutdowns planned in 1H FY22

• Major works at Snowy 2.0, rail and bridge projects

• Activity to continue in FY22 on existing and new projects

• Strong tender pipeline with major projects commencing in 2022

• Reduced risk on wind farm construction contracts

• • Increased focus on maintenance activities on wind farms • Strong pipeline in wind and energy over 3-5 years

• COVID restrictions impacted offshore maintenance contract

• • Slower take-up on extra value added service opportunities • Solid activity in FY22 with existing contracts

• Major metro telecommunication works delayed/cancelled due to state COVID lockdowns and restrictions

• 5G and NBN rollout forecast to expand to regional areas in FY22

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Telecommunications
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Boom Logistics FY21 Results

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Solid market
for engineered
specialised
lifting, labour
and shutdown
services
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CRANE & SHUTDOWN SERVICES

FY21 overview

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• Solid mining maintenance activity across all clients, although shutdown and project activity slightly reduced

• Major shutdowns completed at Boddington Gold (WA), BMA and Curragh (QLD), Bulga and MTW (NSW) and Australian Paper (VIC)

• Renewed maintenance contracts with Anglo American, FQM, Australian Paper and contract extended at Curragh

• New contract with BHP Mt Arthur mine (NSW)

FY22 outlook

• Major shutdown at BHP Olympic Dam SCM21 won, forecast to deliver circa $15m in new revenue in 1H FY22

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Key Operations

• Growth from new customers in central Queensland, including BMA Goonyalla shutdown and new Thiess contract awarded

• Mining maintenance services

• Engineered specialised lifts

• Expanding service offering through introducing specialised skills and engineering services to mining clients

• Shutdown, industrial and programmed maintenance services

• readi labour hire continues to service mining and industrial shutdown maintenance customers

• Major clients are in the mining sector

• Mobilise the new assets to north-west WA and central Queensland to support growth opportunities in 2H FY22

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Boom Logistics FY21 Results

PROJECTS

FY21 overview

• Wind farm construction works at Moorabool South (VIC) successfully completed and commenced project at Bango (NSW), using equipment hire and labour rate model for core lifting services

• Completed significant maintenance services on wind farms, replacing blades, gearboxes and pitch bearings for major clients across Australia

• New infrastructure contracts won at Snowy 2.0, Parramatta Light Rail (NSW), Martinus Rail (QLD) and Armadale Rd Bridge (WA)

FY22 outlook

• Continue Bango wind farm construction works in 1H FY22

• Solid pipeline of wind farm construction and maintenance work with opportunities to introduce new value-added recurring maintenance services

• Ongoing Snowy 2.0 infrastructure project work in 1H FY22

• Strong tender pipeline across infrastructure, civil engineering, rail crossing and tunnel projects in 2022

• New energy infrastructure and high voltage power-line construction works development over next 5 years

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Infrastructure
tender pipeline
is strong over
the next five
years
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Key Operations

• Wind farm construction projects

• Bridge installations, rail and infrastructure construction

• Power grid infrastructure and construction projects

• Wind farm maintenance programs

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Boom Logistics FY21 Results

TRAVEL TOWERS

FY21 overview

• Major high-voltage transmission line project in the Pilbara (WA), utilising large size travel towers

• Activity on electrical transmission and project work on wind farms continued, connecting substations to the grid

• Telecommunications 5G and data network upgrades in metropolitan areas were impacted by lockdowns

• Mining customers increasing use of large travel towers on site for shutdowns and projects

FY22 outlook

• Powerlines Plus high-voltage transmission line project continues through first half

• Strong demand for ongoing electrical transmission, interconnector, string line to power pole and wind farm project work

• Continued shutdown and mining maintenance activity for large travel towers

• Increasing telecommunication 5G and NBN rollout in metro areas in first half and rollout planned in regional areas in 2022

• Delivery of new large travel towers for growth

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Demand for
large travel
towers in the
energy, telco
and mining
sectors
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Key Operations

• Telecommunications – 5G and data network upgrades and connections

• Transmission ‘string-line’ installation works on wind farms

• Interconnector and power grid infrastructure projects

• High voltage transmission line maintenance works

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Boom Logistics FY21 Results

ASSET MANAGEMENT

FY21 overview

• $14.7 million invested in new assets to secure new contracts and growth for FY22

• Total asset utilisation at 77%, up from 71% last year

• Ongoing use of flexible asset rental model to maximise capability and capacity

• Travel towers ordered with 12 months lead time

• Current fleet age profile is circa 10.7 years with target to average below 10 years

FY22 outlook

• Net capital expenditure planned for FY22 is $10-15m to secure new contracts and ongoing work

• Three large travel towers to be commissioned late 1H and five large travel towers expected delivery late 2H FY22

• Asset sales forecast at $5m, recycling older assets to reduce maintenance costs and upgrade fleet with new technology

• Availability of new assets through rental model to secure infrastructure and construction project tender pipeline

Improving crane and travel tower utilisation

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Boom Logistics FY21 Results

OUTLOOK

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Revenue forecast circa $105m* in first half FY22

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EBITDA forecast circa $21m* in first half FY22

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Clear strategy to achieve sustainable profitable growth

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Targeting maintenance services with recurring earnings and returns

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Improving return on capital and deliver shareholder returns

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Capital recycling & flexible asset rental model for growth

* Forecast based on current expectations of COVID-19 impacts

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Boom Logistics FY21 Results

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Boom Logistics FY21 Results

OUR BUSINESS / OUR VALUES

Our Values

270+ cranes in all sizes up to 750 tonnes

• 14 depots across Australia

90+ travel towers in all sizes up to 70 metres

800+ employees, 445 permanent and 400 flexible workforce

Boom’s values differentiate our business. They guide decisions, our behaviours and the way we do business to maximise returns for our shareholders.

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Boom Logistics FY21 Results

Mining & Resources sector

Maintenance and Shutdowns

• Provide lifting solutions, cranes and crews on 24/7 basis, travel towers, engineering services, supervision and project management on mine sites

• Work includes shutdowns, major lifts to support bucket rebuilds, shovel replacements, conveyor belt works, crusher change-outs and tailored on-site lifting services

• Expanding services introducing specialised skills and engineering solutions

• Major contracts with mining clients, focus on safety, delivering to onsite standards, processes, procedures and competency requirements

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Boom Logistics FY21 Results

Infrastructure sector

Growth in construction work

• Completed three level crossing removal projects in Melbourne

• Commenced work on Snowy 2.0 project and Parramatta Light Rail

• Completed Albion Park Rail Bypass, Martinus Rail and Armadale Rd Bridge projects

• Strong tender pipeline on infrastructure, civil engineering, rail and tunnel projects

• Boom is well positioned for continued growth in the infrastructure and civil construction sectors

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Boom Logistics FY21 Results

Energy sector

Power Transmission Lines

• Major new high voltage work progressing well in WA

• Contracted to provide six travel towers and specialised labour for the completion of a 220kv transmission line running between mines in the Pilbara region

• The project is anticipated to continue to the end of 2021

• Growth opportunities in the high voltage transmission lines and energy sectors over next 5 years

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Boom Logistics FY21 Results

Wind Farm sector

Powering in Renewables

• Boom provides installation, engineering and maintenance services on wind farms across Australia

• Our maintenance activities include removal and replacement of gear boxes, generators and blades

• Our construction package includes installation of towers, mechanical & electrical services and project management

• Boom also provides a range of travel towers and resources to support wind farm connection to power grid works

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Boom Logistics FY21 Results

Telecommunications sector

5G & NBN Network Program

• 5G network deployment is accelerating with Telstra, Optus and Vodafone

• 5G currently being installed in major metropolitan areas and is being rolled-out into regional areas in 2022

• Major data network and NBN upgrades continue in the telecommunications sector

• Boom’s services include cranes, travel towers, specialised labour and traffic management

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Boom Logistics FY21 Results

DISCLAIMER

Boom Logistics Limited (ASX: BOL) Suite B Level 1 55 Southbank Boulevard SOUTHBANK VIC 3006 Telephone +61 3 9207 2500 info@boomlogistics.com.au www.boomlogistics.com.au

Boom Logistics FY21 Results