VERBREC LIMITED — Investor Presentation 2012

Aug 26, 2012

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ASX code - LCM
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27 August 2012

• The purpose of this presentation is to provide general information about LogiCamms Limited (Company). It is not recommended that any person makes any investment decision in relation to the Company based solely on this presentation. This presentation does not contain all information which would be material to the making of a decision in relation to the Company. Any investor should make its own independent assessment and determination as to the Company‟s prospects prior to making any investment decision, and should not rely on the information in this presentation for that purpose.

• This presentation does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold securities in the Company.

• This presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forwardlooking statements. No representation or warranty, express or implied, is made by the Company that the matters stated in this presentation will be achieved or prove to be correct.

• Except for statutory liability which cannot be excluded, the Company, its officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the material contained in this presentation and exclude all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission therefrom. The Company accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information.

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Engineering | Project Delivery | Asset Management

LogiCamms is a leading provider of

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Engineering | Project Delivery | Asset Management

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Revenue ($m)
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EBITDA ($m)
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• Record revenue of $123.1m, up 26% from $97.8m

• Reflects significant increase in professional services revenue

• Record EBITDA of $11.3m, up 135% from $4.8m

• 2H12 EBITDA of $7.0m up 63% on 1H12 EBITDA of $4.3m

• 2H12 EBITDA margin of 10.4%

• Results ahead of guidance provided in May 2012

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Engineering | Project Delivery | Asset Management

NPAT ($m)

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EPS/DPS (cents per share)
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• Record NPAT of $10.7m, up 133% from $4.6m

• Attributed to strong operational performance and strengthened risk management framework

• R&D tax credits remain a feature of NPAT however FY12 includes credit from both FY11 ($1.8m) and FY12 ($1.2m)

• Record earnings per share of 15.9c

• Final dividend of 5.0 cps and record full year dividend of 8.5 cps due to confidence in outlook and strong capital position

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Engineering | Project Delivery | Asset Management

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Engineering | Project Delivery | Asset Management

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Engineering | Project Delivery | Asset Management

Engineering | Project Delivery | Asset Management

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“Our Company is well positioned with the right strategy in place to capture an increasing share of market opportunities. We expect the markets in which we operate to remain solid through the 2013 financial year and an increase in earnings is anticipated.

“Our annual performance is a strong indicator of the health of our business and I believe excellent foundations are in place to sustain year-on-year growth.

“The Company is confident that the medium and long term prospects remain positive based on the quality of its people and customers plus its strong financial capacity. LogiCamms is committed to being optimally positioned for the substantial opportunities ahead.”

Opportunity Pipeline by Half

$m

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• Steve Banning, Managing Director

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Engineering | Project Delivery | Asset Management

			FY11 Comparison	FY11 Comparison
**A$m **	Statutory Results 12 Months to 30 Jun 2012		Statutory Results 12 Months to 30 Jun 2011	**Change **
Revenue $123.1m			$97.8m Up 26% $33.1m 34.6% Up 34% $4.8m 4.9% Up 135% $4.3m 4.4% Up 147% $4.6m 4.7% Up 133% $3.6m Up 172% 7.6c Up 107% 4.5c Up 88%
Gross Profit Gross Profit % $44.4m
EBITDA EBITDA % $11.3m 9.2%
EBIT EBIT % $10.6m 3.6%
NPAT Attrib to Members NPAT Margin (%) $10.7m 8.7%
Operating Cash Flow $9.8m
EPS (cents per share) 15.9c
DPS (cents per share, ff) 8.5c

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Engineering | Project Delivery | Asset Management

Balance		Comparison
Sheet Item	Balance	to June‘11	Comment
Cash	$16.4m	Up 21%	•	$9.8m net operating cash inflows
Trade and Other	$29.7m	Up 81%	•	Partly reflects increase in revenue of 26%
Receivables			•	Mix of larger projects in FY12, although days
				sales outstanding within target
Trade and other	$11.5m	Up 91%	•	Reflects increase in operational activity
Payables
Deferred income	$0.7m	Down 65%	•	Large project payment in advance in FY11
			•	Returned to more normal levels for the work
				in progress

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Engineering | Project Delivery | Asset Management

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Engineering | Project Delivery | Asset Management

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Electrical Infrastructure Upgrade

Project Control System Upgrade Location Queensland Client Stanwell Corporation Responsibilities Control system design

Western Australia

Rio Tinto

Electrical engineering and control system design

Why LogiCamms LogiCamms is a leading provider of control system design with a strong track record across various industry sectors.

LogiCamms has an excellent track record in iron ore with over 140 project references in electrical substations.

Summary LogiCamms is delivering the upgraded control system for the Coal Handling Preparation Plant (CHPP) at the Meandu coal mine in south east Queensland.

LogiCamms will deliver the electrical and control system engineering design to upgrade low voltage substations and associated facilities at Cape Lambert and East Intercourse Island.

Contract Value $8.5m approx $8.3m

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Gorgon LNG Maintenance System

Western Australia

Chevron

Asset Management services

LogiCamms‟ asset management team has extensive experience in hydrocarbons and the capabilities to support major LNG projects.

LogiCamms was contracted to provide maintenance engineering and additional asset management services for the Chevron-operated Gorgon LNG facility.

$8m approx

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Engineering | Project Delivery | Asset Management

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Project Operational Readiness services Location Bayu-Undan and Darwin Client ConocoPhillips Responsibilities Maintenance engineering, project management and completions. Why LogiCamms LogiCamms‟ Asset Management team have a strong track record of delivering successful operational readiness solutions.

Summary LogiCamms is providing operational readiness services to assist ConocoPhillips in the successful delivery of key projects.

Contract Value Over $2m

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Mondarra gas storage Western Australia

APA Group

Control system engineering, procurement and installation

LogiCamms has extensive expertise in control system design and installation.

LogiCamms is delivering the station control system for APA‟s gas storage facility at Mondarra near Perth.

$2m approx

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Mobile machines, Khumani mine

South Africa

Sandvik

Control system upgrade and Stockpile Management System

LogiCamms have world class expertise in machine automation and optimisation.

LogiCamms is delivering control system solutions for new and existing machines including stackers, reclaimers and Stockpile Management System.

$2m approx

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Engineering | Project Delivery | Asset Management

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Engineering | Project Delivery | Asset Management