Half Year Results Presentation 21 February 2019 Highlights - PowerPoint PPT Presentation

31 December 2018 Half Year Results Presentation 21 February 2019

Highlights Capital Strategic Financial Operations Management Focus Performance Update Net debt at $34.6m, down Target to win new wind farm Revenue $92.5m for H1 Completed 2 years and     $2.7m in period construction projects FY19 in line with pcp 3 million hours worked without a Lost Time Injury  Debt refinance completed  New “value added” services  Trading EBITDA $12.0m up with extended term, tendering to mining and 6% on pcp  New major wind farm increased capacity and lower resource customers construction projects won cost at Coopers Gap, QLD and EBIT $2.1m and NPAT  Cattle Hill, TAS – on track  Infrastructure revenue $0.2m to achieve $30m wind  CAPEX of $8.7m and Asset growth opportunities through farm revenue in FY19 Sales of $1.3m. Asset rental readi  Industrial action in NSW model for projects provides had significant impact on Renewed major customer  balance sheet flexibility Profitable revenue growth results, reducing EBIT by  contracts with BMA, BMC, through utilisation circa $3.0m Curragh and Alcoa  On market buy-back of improvement and rate 10.1m shares to-date, since increases  Cash from operating Telco revenue increase of  announcement on 21/11/18 activities $12.1m up $9.6m 43% via 5G roll-out Internal competition for on pcp   Minimum holding buy back assets and capital allocation disciplines to maximise ROCE completed with 1.1m shares purchased 1

Revenue & Market Update Solid contracts with major customers in the mining  Revenue by Market Segment and resources sector $100m Queensland continues to be strong with improved  market opportunities - renewed contracts with $90m $4m BMA, BMC and Curragh $6m 3 year contract renewed with Alcoa in WA  $12m $80m $12m Mining & Resources revenue:  $10m $70m Olympic Dam - non-recurring major shutdown  $17m generated circa $10m revenue in H1 FY18 Other $11m $60m  NSW strike - impact circa $5m revenue Telecommunications Queensland – activity continued to increase  Industrial Maintenance $50m $13m Wind, Energy & Utilities Key Markets delivering growth:  $40m Infrastructure & Construction Wind, Energy & Utilities revenues up 67% with  Mining & Resources completion of Mt Gellibrand project plus increase in $30m $55m maintenance and construction works $44m Infrastructure & Construction revenue up 19%  $20m Telco 5G revenue up 43% across Australia  $10m Cross-selling readi labour hire with major  customers and contractors across all sectors $0m H1 FY18 H1 FY19 2

Operating Profit Revenue from services at $92.5m is in line with prior • 31-Dec-18 31-Dec-17 Change period $'m $'m % Revenue 92.5 92.4 0% • Other Income of $2.6m relates to insurance claim for damage incurred to a crane Other Income 2.6 0.0 less: Direct Expenses (67.0) (65.6) 2% Associated costs recognised in direct expenses and in asset • impairment Gross Profit 28.1 26.8 5% GP% 29.5% 29.0% Direct expenses include circa $2.0m of lease • less: Indirect Expenses (12.7) (12.0) 6% payments for rented equipment less: Central Costs (3.4) (3.5) -3% Trading EBITDA 12.0 11.3 6% Trading EBITDA of circa $12.0m is 6% ahead of • Trading EBITDA% 13.0% 12.2% same time last year less: Non-Trading Expenses (1.0) (0.2) less: Impairment for Damage to Crane (1.0) 0.0 EBIT at $2.1m was down $0.3m on pcp • Profit on Sale of Assets 0.4 0.2 • NSW strike negatively impacted EBIT by circa $3.0m Statutory EBITDA 10.4 11.3 -8% in the period less: Depreciation and Amortisation (8.3) (8.9) -7% Non-Trading Expenses • EBIT 2.1 2.4 -12% Restructuring costs and redundancies incurred to date in • NSW businesses and provision for retirement payment to less: Net Borrowing Costs (1.9) (2.0) -5% former CEO less: Income Tax Expense 0.0 0.0 Net Profit After Tax 0.2 0.4 3

Balance Sheet Net Debt Down • 31-Dec-18 30-Jun-18 mvmt Net debt further reduced by $2.7m in period to $34.6m • $m $m $m Gearing (net debt/ equity) at 24% • Cash 2.3 1.7 0.6 New Long Term Finance Facilities effective • Trade and Other Receivables 34.6 37.1 (2.5) 29 th January 2019 Assets Held for Sale 0.4 0.8 (0.4) Property Plant and Equipment 166.3 167.5 (1.2) New facilities deliver improved terms and savings of • Other Assets 5.1 6.3 (1.2) circa $250k p.a. Total Assets 208.7 213.4 (4.7) Extended $20m bank facility expires January 2022 • Payables 14.0 14.6 (0.6) Lower cost $20m trade receivables loan facility expires • January 2022 Bank and Other Loans 36.9 39.0 (2.1) Pre paid borrowing costs (0.2) (0.4) 0.2 Amortising fixed rate asset finance facility repriced with • Provisions 8.9 9.4 (0.5) 57 basis point reduction expires August 2021 Other Liabilities 5.6 5.6 0.0 Asset finance facilities expanded to provide additional • finance lease, sale and leaseback and operating lease Total Liabilities 65.2 68.2 (3.0) facilities Net Assets 143.5 145.2 (1.7) Net Tangible Assets per share at 31 cents • Gearing (Net Debt/ Equity) 24% 26% ROCE¹ at 2.2% • ¹ ROCE is EBIT / Capital Employed 4

Cash Flow 31-Dec-18 31-Dec-17 mvmt Cash from Operations is strong • $m $m $m Payment timing on projects favourable in current period • Annual insurance premiums prepaid in H1 accounting for • Trading EBITDA 12.0 11.3 0.7 majority of working capital movement less: cash component of non-trading expenses paid in period including associated employee leave entitlements (0.7) (0.6) (0.1) Capital Expenditure • Cash Proceeds from Glove and Barrier legal settlement 0.0 1.0 (1.0) Movement in working capital (2.0) (11.9) 9.9 CAPEX of $8.7m in H1 • Crane assets acquired in H1 to service contracts • Cash flow from operations before interest and tax 9.3 (0.2) 9.5 $1.3m of assets sold with target of $3.0m in FY19 • Interest paid (net of interest received) (1.7) (1.8) 0.1 Flexible rental arrangements – larger capacity cranes • Income tax received 4.5 4.5 0.0 introduced for growth and projects Net cash provided by operating activities 12.1 2.5 9.6 Capital Management • Purchase of property, plant, equipment and software (8.7) (2.7) (6.0) Share buy back funded from free cash flow • Proceeds from the sale of plant and equipment 1.3 1.2 0.1 $0.25m to fund minimum holding buy back • Net cash used in investing activities (7.4) (1.5) (5.9) $1.7m to fund on-going on-market buy back • Free cash flow 4.7 1.0 3.7 Net repayment of borrowings (2.1) (1.4) (0.7) Payments for shares bought back (2.0) 0.0 (2.0) Net cash used in financing activities (4.1) (1.4) (2.7) Net Increase/ (Decrease) in Cash 0.6 (0.4) 1.0 5

New Opportunities - Mining & Resources Maintain solid contracts with major customers in the  mining and resources sector Extend / renew current maintenance contracts when due  Rate increases to reflect labour cost increases in the  market place Win new mining contracts in H2 on maintenance and  construction programs  QLD growth with existing customers – at new mine sites and provide “new value added” services North West new construction opportunities being tendered  Opportunities for new contracts in Hunter region as mine sites  changing to multiple supplier model Introducing new revenue streams and expanding new  “value added” services:  Engineering services Maintenance programs  Specialised labour skills  Cross-sell Boom and readi services with major  customers and contractors on mining sites 6

Strong Pipeline - Wind Farms & Telco’s Secured circa $30m of wind farm revenue for FY19  Crane Wind Farm Sales Pipeline (c. $390m) which includes: Tendering $160m Completion of Acciona Mt Gellibrand in Victoria  $140m  Project works completed at BMS, CatCon, Vestas GE Coopers Gap project underway in Queensland  $120m Goldwind Cattle Hill to commence in Tasmania  $100m Not Tendered Ongoing wind farm maintenance works  $134m $80m $66m Tendered $123m $60m Won Success with our “Total Service Offer” model on wind  farm construction projects $40m * Windfarm pipeline is based on projects $43m $20m $9m estimated start date $20m $17m $18m Strong sales pipeline of circa $390m of opportunity  $0m H1 - FY19 H2 - FY19 H1 - FY20 H2 - FY20 FY21 over next two years  Target to commence two new wind farm contracts December 2019 / January 2020 Wireless Tower Construction ($m) Opportunities for Travel Towers in wind farm sector  2,600 2,500 Telecommunications pipeline is strong over the next  2,400 2 years with the 5G roll-out 2,300 2,200 2,100 Utilisation improving on large Travel Towers in  2,000 Telco sector with solid order book in H2 FY19 1,900 2017 2018 2019 2020 Source: IBIS World 7