skyjack presentation

Lifting Skyjack to New Heights Sabith Azward Jourdan Bousfield Maddy Coulter Ali Momin Daniel Nicholl Jash Patel

Recommendation

• Target high growth markets

• Introduce servicing

• Acquire Sinoboom

Recommendation Rationale Servicing Implementation Expected Results

Environmental Factors

China

● Construction Growth

o Non-residential: 12.2% CAGR

o Civil engineering projects: 13.9% CAGR

● Government Regulation

o Elimination of scaffolding

Recommendation Rationale Servicing Implementation Expected Results

India

● Construction Growth

o 15% CAGR

● Growing Population

o 2013-2017: 51% increase

Recommendation Rationale Servicing Implementation Expected Results

Middle East

● Construction Growth

o 10 year growth of 80%

● Qatar

o 2022 Fifa World Cup

● Saudi Arabia

o Housing shortage

Recommendation Rationale Servicing Implementation Expected Results

• Founded in 2008

• Complementary product line

• 37.5% growth rate

• Strong distribution in the Middle East

Recommendation Rationale Servicing Implementation Expected Results

Synergies with

Sinoboom

Individual Markets

Skyjack Sinoboom

Recommendation Rationale Servicing Implementation Expected Results

Joint Coverage

Skyjack Sinoboom Both

Recommendation Rationale Servicing Implementation Expected Results

Spider Lifts

• Introduce to North America and Europe

Benefits

•Heights up to 30m

•Better stabilization

•Tight working conditions

Recommendation Rationale Servicing Implementation Expected Results

R&D

● Sinoboom’s strong focus on innovation ● Skyjack gains Sinoboom’s R&D department

o Shifts Skyjack to a innovator position

Recommendation Rationale Servicing Implementation Expected Results

Goals, Values, Culture

• Safe and reliable

• “Always for better access solution”

• Simplicity for customer

• Maintain brand image

Recommendation Rationale Servicing Implementation Expected Results

Financial Projections

Acquisition Price

Sinoboom EBIT $2,072,000

Avg. EBIT Multiple 10.24

EBIT Multiple Proposed 14.48

Proposed Acquisition Price $30,000,000

Optimistic (+25%)

Projected

Pessimistic (-25%)

IRR 32% 26% 21%

NPV $15.9 M $7 M $1.2 M

Payback Period ~4 yrs. ~4.5 yrs. ~5 yrs.

*Annual sales growth decay of 15.6%

Recommendation Rationale Servicing Implementation Expected Results

Servicing Strategy

• Offer full services to the direct consumers in emerging markets

• Strengthen relationships

• Establish Skyjack as the market leader

Recommendation Rationale Servicing Implementation Expected Results

7-Stage Implementation

Stage 1 - Acquisition Proposal

● VP of Asia position ● Maintain current employees

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2014 2015 2016 2017 2018

Stage 2 - Purchase

● End of 2014 - $30 million ● Task force and conferences ● Smooth integration process

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2014 2015 2016 2017 2018

Stage 3 – Servicing Implementation

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018

Stage 4: Co-branding

Short Term Long Term ● Phase out Sinoboom

● Create unified global brand under Skyjack

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2014 2015 2016 2017 2018

Stage 5: Spider Lifts in NA / EU

● Introduce spider lift product line to North America & Europe

● Use Skyjack branding

● Sell to existing rental customers

● Catalogue advertising should highlight new product

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2014 2015 2016 2017 2018

Stage 5: Spider Lifts in NA / EU

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2014 2015 2016 2017 2018

Stage 6: Superior Product Line

● Current product line evaluation

o Unique Products

o Similar Products

● Innovation from increased communication

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2014 2015 2016 2017 2018

Stage 7: Increasing Global Presence

● Markets with high infrastructure growth

o India

o Middle East

● Environmental scanning

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2014 2015 2016 2017 2018

Expected Results

● 26% rate of return

● Expansion into Asia and the Middle East

● Increased market share

● Diversified customer base

Recommendation Rationale Servicing Implementation Expected Results

Questions?