Ann: Presentation to Merrill Lynch Emerging Stars, page-3

re: Ann: Presentation to Merrill Lynch Emergi... Useful to compare this presentation with the FY12 presentation in August. Here are the differences I noticed:

1. Global utilization is similar to August (75% vs 76% in August). As Pardner observed, it looks like any downturn in OZ has been mostly offset by improvements elsewhere.

2. EHL now mentions "$55m of growth capital now under contract in Chile". Also refers to copper and gold miners, not just copper miners.

3. Now says "Significant improvement on Q1 utilization" in Canada vs last year, even though it has much more equipment to rent out this year.

4. SIB (Stay in Business) capex for FY13 will be lower than previous guidance (previously said same as FY12, which I infer would have been $110-120m). Thus, there will be less essential expenditure eating into cash flow.

4. The "Global Business Snapshot" page now says that Australia has an "Increasingly competitive environment" and that "Customers focused on improving cost & productivity", specifically shorter contracts and rate structures (lower rental prices?) (August slide said "Customers focused on managing operating costs but also preserving capital.")

5. Now notes that Indonesia coal clients have low costs, but EHL is monitoring global trends (I wonder if that includes possible gov't sales restrictions?)

6. Most of the outlook page is the same as in August. However, a few signs of greater caution: Outlook no longer says "production forecasts support medium term outlook". also, instead of "Business in shape to manage volatility and capture opportunities", this presentation now says "Emeco’s cost and capital continually being reviewed to ensure the business remains in shape to manage volatility and capture opportunities".