Baxter Group Limited Integrated Waste Management

1

• Baxter Group Limited Integrated Waste
  Management
• Company
• Result Presentation
• For period ending 30 June 2005
• Presenter Polly Mazaris, Managing Director
• Phone[phone] Fax [phone]
• Email polly_at_baxgroup.com.au

2
Baxter Group Recap

• Completed the development of the two Resource and
  Recovery operations
• Developed markets for the sale of recycled
  products and sand/soil
• Acquired additional Bin Hire Businesses
• Completed the construction of the Green Cell
• Acquired additional plant and equipment for the
  operations and sand mining division
• Maintained cell constructions and slimes removal

3
Landfill Sites
4
South Eastern Region
5
Organisational Chart

Denis James RR/Special Projects
Manager
6
FY05 Results

• (million) FY 05 FY 04 Var.
  
• REVENUE 33.412 25.767
  29.67
• EBITDA 16.028 11.771 36.17
• NPAT 7.285 5.085
  43.26
• EPS (Basic) 19.7c 15.2c
  29.61
• EPS (Diluted) 17.4c 13.8c
  26.09
• DIVIDENDS 5.450 2.548
  113.89

7
Revenue Growth
million
Year
8

EBITDA GROWTH
million
Year
9
NPAT GROWTH
million
Year
10
Key Driver of Results

• Organic growth and Landfill price increases
• Introduction of new products sand/soil
• Expanded customer base both within the Bin Hire
  Operation and Sand Mining division
• Minimised Plant Hire costs
• Consolidated Operational Costs
• Maintained a well balanced working relationship
  with customers and employees

11
FY05 Highlights

• Completion of the two Baxvis Resource and
  Recovery operations
• Completion of the Green Cell development
• Acquisition of additional Bin Hire Businesses
• Introduction of new Sand/Soil Products
• Enhanced recycling activities on site

12
Summary Operating Cash Flows

• (million) FY 05 FY 04
  Var.
• EBITDA 16.028
  11.771 36.17
• Net capital expenditure 3.739 2.556
  46.28
• Increase in other 3.340
  (1.023) 426.49
• operating assets and
• liabilities
• Operating Cash Flow 8.949
  10.238 (12.59)
• Net borrowing costs 228
  349 (34.67)
• Income tax paid 3.395
  1.161 194.42
• Net Operating Cash Flow 5.326 8.728
  (38.98)

13
Summary Balance Sheet

• (million) FY 05
  FY 04 Var.
• Working capital 10.364
  8.980 15.41
• Property, plant equipment 15.745
  12.613 24.83
• Intangibles
  25.122 25.238 (0.46)
• (goodwill airspace)
  
• Other
  11.757 5.412 117.24
• Total Assets Employed 62.970
  52.243 20.53
• Net debt
  12.116 16.635 (27.17)
  
• Equity
  44.994 33.019 36.27
• Total Funds Employed 50.854
  35.608 42.82

14
Final Dividend

• Final dividend of 8.75 cents per share
• 8.75 cents forecast
• Record date 27 September 2005
• Payment date 4 October 2005
• 100 franking for shareholders

15
Industry Activities Going Forward

• Greater emphasis on recycling of waste
• Strong support from Statutory Authorities to
  assist landfill operators in the introduction of
  alternative waste treatment processes
• Consolidation and or sales of Bin Hire operations
  
• Proposed amalgamation of the Regional Waste
  Management Groups

16
Trade Update and Outlook

• Going forward
• Continue to explore opportunities for
  acquisitions of core related businesses
• Location and current facilities provide
  opportunities to capture additional waste
• Organic growth in the Resource and Recovery
• Operations
• Continue to develop and refine sand and soil
  products providing opportunities to increase
  present customer base
• Support and encouragement from Government Bodies
  to provide subsidies and or grants with respect
  to recycling and or alternative waste treatment
  proposals

17
Business Model

• Maintain and continue organic growth including
  the Transfer Station at Fraser Road landfill site
• Continue to explore acquisition opportunities
• Expand the BaxVis Resource and Recovery
  Operations
• Develop volume sales of sand and soil products.
• Continue to develop and maintain working
  alliances with customers and employees

18
Financial Result Year End 2005

• Revenue Increase of 29.67
  at 33.412 Million
  
• Basic earnings per share Increase by
  29.61 at
• 19.7 cents per share
  
• Diluted earnings per share Increase of
  26.09 at
• 17.4 cents per share
• NPAT
  Increase by 43.26 at 7.285 Million

19
QUESTIONS