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Safety check COFFEY INTERNATIONAL LIMITED Photo by James Ball - www.dlscape.com Half Year Results Presentation 15 February 2012 1 Improved Result Reflects Impact of Completed Strategic Initiatives November 2010 John Mulcahy becomes Chairman
Photo by James Ball - www.dlscape.com
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November 2010 John Mulcahy becomes Chairman December 2010 Board instigates management review and cost reduction program $18 million annual cost base improvement by FY2012 March 2011 John Douglas commences as Managing Director Business / strategy review initiated June 2011 1st stage review completed Financial update to market August 2011 Reported FY2011 results October 2011 Capital Raising February 2012 Reported H1 FY2012 results
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¹ Underlying EBITDA — EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) before impairment and restructuring costs ² Underlying EBITDA from continuing operations excludes discontinued businesses of LA Environments and Rail
H1 H2 H1 6 months FY11 FY11 FY12 ($m) ($m) ($m) Fee revenue 222.6 201.1 212.5 Underlying EBITDA¹ 15.6 16.7 23.0 Underlying EBITDA² from continuing operations 15.9 15.0 20.4 Restructuring costs (5.3) (3.8) 0.0 Impairment 0.0 (62.9) 0.0 EBITDA 10.3 (50.0) 23.0 EBIT 5.1 (55.1) 18.6 NPAT (4.7) (65.0) 4.6 EPS (Basic – cents per share) (3.6) (49.2) 2.8
$44.9m $55.4m $47.9m $32.3m $23.0m $45.0m FY08 FY09 FY10 FY11 FY12
Underlying EBITDA¹
Actual Guidance
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¹ Underlying EBITDA — EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) before impairment and restructuring costs ² Underlying EBITDA Margin represents underlying EBITDA over Fee Revenue 11.9% 10.8% 10.1% 7.6% 10.8% FY08 FY09 FY10 FY11 H1 FY12
Underlying EBITDA Margin²
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$18.0m $11.7m $4.2m $4.6m $10.8m
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Net Debt/ EBITDA = 1.72 Net Debt/ EBITDA = 3.75
$45m $77.5m $32.3m $121.2m $23m
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Dec June Dec 2010 2011 2011 ($m) ($m) ($m) Cash & equivalents 35.6 29.6 37.1 Current assets (excl. cash) 170.5 157.2 159.9 Non-current assets (excl. cash) 254.5 191.0 189.2 Total assets 460.6 377.8 386.2 Current borrowings 1.2 46.8 5.6 Other current liabilities 113.7 91.8 94.8 Non-current Borrowings 138.6 104.0 109.0 Other Non-current liabilities 19.9 12.8 12.5 Net assets 187.2 122.4 164.3
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Components of Change in Net Debt
Net Operating Cash Inflow $10.8m
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6 months Dec June Dec 2010 ($m) 2011 ($m) 2011 ($m) Total Cash 35.6 29.6 37.1 (including non-current cash deposits) AUD$ denominated debt 99.8 116.5 79.2 Non AUD$ denominated debt 40.0 34.3 35.4 Total Debt 139.8 150.8 114.6 Net Debt 104.3 121.2 77.5 Total facilities (excl bank guarantees) 185.0 179.0 142.0 Cash and debt available 80.7 57.8 64.5 Equity 187.2 122.4 164.3 Net Debt to (Equity + Net Debt) 36% 50% 32%
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Headroom $64.5m 30 June 2011 31 December 2011 Post December 2011 Headroom $79.5m $77.5m Net Debt
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H1 H2 H1 6 months FY11 FY11 FY12 ($m) ($m) ($m) EBITDA 10.3 (50.0) 23.0 Depreciation and Amortisation (5.2) (5.1) (4.4) Interest (7.3) (8.2) (9.4) Taxation and Minority Interests (2.5) (1.8) (4.6) NPAT (4.7) (65.1) 4.6
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¹Underlying EBITDA before one-off impairment and restructuring costs Footnote: Certain comparative data has been represented to align with the current period
FY09 FY10 FY11 FY12 H1 H2 YTD H1 H2 YTD H1 H2 YTD H1 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Fee Revenue 261.2 249.3 510.5 241.0 234.7 475.7 222.6 201.1 423.6 212.5 Geosciences 138.1 118.1 256.2 126.7 111.9 238.5 117.9 117.0 234.9 132.4 International Development 71.6 80.3 151.9 71.2 82.0 153.2 67.5 54.8 122.3 54.2 Project Management 37.3 37.9 75.2 32.9 28.4 61.3 26.5 20.4 46.9 19.3 Other 14.2 13.0 27.2 10.3 12.4 22.7 10.7 8.9 19.6 6.6 Underlying EBITDA¹ 34.9 20.5 55.4 30.5 17.5 47.9 15.6 16.7 32.3 23.0 Geosciences 20.9 9.2 30.1 19.8 9.7 29.5 8.2 14.5 22.7 16.3 International Development 9.9 9.3 19.2 10.0 10.4 20.5 10.4 5.0 15.4 8.0 Project Management 5.5 4.7 10.1 4.1 0.4 4.5 0.7 (0.6) 0.1 0.0 Other 2.3 1.1 3.5 0.1 0.4 0.5 (0.2) 1.3 1.0 2.4 Corporate (3.8) (3.8) (7.6) (3.6) (3.5) (7.1) (3.5) (3.5) (7.0) (3.7) EBITDA Margin % of Fee Revenue 13% 8% 11% 13% 7% 10% 7% 8% 8% 11% Geosciences 15% 8% 12% 16% 9% 12% 7% 12% 10% 12% International Development 14% 12% 13% 14% 13% 13% 15% 9% 13% 15% Project Management 15% 12% 13% 12% 2% 7% 3% (3%) 0% 0%
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*LTIFR = Lost Time Injury Frequency Rate.
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1.56
0.0 0.5 1.0 1.5 2.0 2.5 3.0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
Coffey LTIFR* (12 Month Rolling Average) January 2011 to December 2011
2.36
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September 2009 John Mulcahy appointed Non-executive Director October 2010 Susan Oliver appointed Non-executive Director November 2010 John Mulcahy appointed Chairman March 2011 John Douglas commenced as Managing Director February 2012 Guy Cowan and Leeanne Bond appointed Non-executive Directors Charles Jamieson AM and Stephen Williams retire as Non-executive Directors Urs Meyerhans appointed Finance Director
Leeanne Bond Guy Cowan
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Age 60 Committees:
Committee Age 46 Committees:
Committee Mr Cowan spent 23 years working for energy group Shell, most recently as Chief Financial Officer of Shell Petroleum Inc, and CFO and a Director of Shell Oil Company in the USA. He was CFO of Fonterra Co-operative Group Limited from Feb 2005 - Feb 2009. Mr Cowan is a Non-executive Director of Ludowici Ltd, UGL Limited, Queensland Sugar Limited and Gold Oil PLC (UK), and Chairman of the Advisory Board of Beak and Johnston Limited. From 1996 to 2006 Ms Bond held a number of roles with Worley Parsons in Queensland including General Manager Hydrocarbons and Development Manager (Queensland). Ms Bond is a Non-executive Director of Liquefied Natural Gas Ltd and Australian Water Recycling Centre of Excellence Ltd, and a Board member of the Queensland Bulk Water Supply Authority (Seqwater).
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December 2010 to December 2011
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Annualised Staff Turnover
February 2011 to January 2012 Staff Turnover %
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EBITDA Breakdown H1 FY12 (for continuing Businesses) Fee Revenue H1 FY12 (for continuing Businesses)
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Total: $206.0m Total: $24.3m
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Geosciences Fee Revenue – Moving Annual Total
December 2009 to December 2011
Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 $A Millions - Fee Revenue
Series1 $m Fee Revenue
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Geosciences – 12 Month Moving Annual Total Fee Revenue to Wage Ratio (Pre Bonuses)
December 2010 to December 2011 Fee to Wage Ratio
H1 FY12 Breakdown by Sector H1 FY12 Breakdown by Geography
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Total: $132.4m
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Total: $67.5m Total: $54.2m H1 FY11
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Clients include: H1 FY12 H2 FY11 Total: $54.8m
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Australia & New Zealand 83% Europe & Middle East 10% Africa 7%
H2 FY11 H1 FY11
Australia & New Zealand 83% Europe & Middle East 10% Africa 7%
Australia & New Zealand 86% Europe & Middle East 3% Africa 11%
Total: $19.3m Total: $20.4m Total: $26.5m H1 FY12
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Financial Performance Improved profits – EBITDA of $23m Improved margins – EBITDA margin of 10.8% Positive operating cash flow – $10.8m Significant de-risking – Net debt: EBITDA of 1.75 Improved net asset position – Net assets of $164.3m Debt paid down – Net debt at $77.5m Improved gearing – reduced to 32% Positive NPAT – $4.6m Business Performance Safety is a key priority and performance remains on track Ongoing Board renewal Overhead salary expenses controlled Falling staff turnover Strategy process underway Initial portfolio review completed Geosciences
International Development
Projects
Outlook Reconfirming FY2012 EBITDA guidance of $45m Review potential for a dividend with FY2012 full year results
The material in this presentation is a summary of the results of Coffey International Limited (Coffey) for the 6 months ended 31 December 2011 and an update on Coffey’s activities and is current at the date of preparation, 15 February 2012. Further details are provided in the Company’s half year accounts and results announcement released on 15 February 2012. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information contained in this presentation, including the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in the presentation (“forward-looking statements”). Such forward-looking statements are by their nature subject to significant uncertainties and contingencies and are based on a number of estimates and assumptions that are subject to change (and in many cases are outside the control of Coffey and its Directors) which may cause the actual results or performance of Coffey to be materially different from any future results or performance expressed or implied by such forward-looking statements. This presentation provides information in summary form only and is not intended to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Due care and consideration should be undertaken when considering and analysing Coffey’s financial performance. All references to dollars are to Australian Dollars unless otherwise stated. To the maximum extent permitted by law, neither Coffey nor its related corporations, Directors, employees or agents, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it. This presentation should be read in conjunction with other publicly available material. Further information including historical results and a description of the activities of Coffey is available on our website, coffey.com
Photos owned by Coffey or Coffey employees and permission is provided.
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