For personal use only 16 September 2009 Company Announcements - - PDF document

Coffey International Limited ABN 16 003 835 112 Level 3, Tower 1, 495 Victoria Avenue Chatswood NSW 2067 Australia T (+61) (2) 8404 4300 F (+61) (2) 9419 5689 www.coffey.com

16 September 2009 Company Announcements Office Australian Securities Exchange - ASX Limited Exchange Centre Level 4, 20 Bridge Street Sydney NSW 2000 Via e-lodgements: Sequence #472 Dear Sir / Madam RE: Please find attached presentation slides used for an Investor briefing given today by the CFO

• f the Company to Market Analysts.

Yours faithfully John E. Hartigan Company Secretary

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COFFEY INTERNATIONAL LIMITED (ASX: COF) COFFEY INTERNATIONAL LIMITED (ASX: COF) ABN Amro Investor Presentation Urs Meyerhans, Chief Financial Officer Urs Meyerhans, Chief Financial Officer 16 September 2009

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Agenda Agenda

• Company snapshot
• Financial snapshot
• Financial snapshot
• Our services and sectors
• Strategy
• Outlook

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Company snapshot p y p

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Company snapshot Company snapshot

• A diversified professional services firm
• Delivering projects globally in engineering / environment / mining /

developing countries

• 9 Specialist service lines

Providing services in 4 key sectors

• Providing services in 4 key sectors

– Infrastructure, Resources, Government and Property

• Operating across 4 regions in 80+ countries

Operating across 4 regions in 80 countries – Asia Pacific, Americas, Europe & Middle East, and Africa

• ~4,000 employees worldwide
• FY09 revenue $808.7m with 5 year CAGR of 48%
• FY09 EBITDA* $56.0m with 5 year CAGR of 34%

* Pre share- based payments and vendor earn-out expenses (“pre SBP & VEO”)

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Building a global company Building a global company

2009

• Revenue:

2004 – 2008

• Grows

revenue from $131.3m in $808.7m

• EBITDA:

$56.0m

• Employees:

2003

• Revenue:

$110.9m 2004 to $558.6m in 2008

• Grows

~4,000 2000

• Revenue:

$66.0m

• EBITDA: $5.8m
• EBITDA:

$9.4m

• Employees:

~600 C ff j i EBITDA* from $12.3m in 2004 to $49.8m in 2008 1959 C ff 1990

• Revenue:

$22.8m

• EBITDA:

$

• Coffey acquires

SAGRIC International and expands

• Coffey joins

the Standard & Poor’s ASX 300 in September 2008

• Coffey

acquires 30 companies Coffey established by founder David Coffey $6.3m

• Employees:

~150

• Coffey lists

presence in International Development market September Coffey

• n the ASX

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Financial snapshot p

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Financial snapshot Financial snapshot

900

Revenue ($M)

808.7 56.0

60

Operating EBITDA* ($M)

298.3

600 700 800

558.6 808.7 49.8

40 50

80.8 182.0

300 400 500

251 9 362.7 17.5 24.2 29.1

20 30

141.0 210.9 281.9 376.6 510.4 29.0 41.0

100 200 300

170.0 251.9

10 20 FY05 FY06 FY07 FY08 FY09 Fee Revenue Reimburseables FY05 FY06 FY07 FY08 FY09 Operating EBITDA* p g

* pre SBP & VEO

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Financial snapshot Financial snapshot

15 8 16.5

18

Earnings Per Share (Basic) (CPS)

16 0

18

Dividends Per Share (CPS)

15.8 13.9 14.5

12 14 16

13.0 15.0 16.0 13.0

12 14 16

9.3

6 8 10

10.5

6 8 10 2 4 6 2 4 6 FY05 FY06 FY07 FY08 FY09 Earnings Per Share (Basic) FY05 FY06 FY07 FY08 FY09 Dividends Per Share g ( )

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Share price performance Share price performance

800% 1000% 600% 800% 200% 400% 0%

• 200%

2003 2004 2005 2006 2007 2008 2009 COF All Ordinaries

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Recap of FY09 Recap of FY09

• Year of 2 Halves – Apart from Q3 the profit result was strong
• Strong cash flow despite challenges due to GFC impact on some clients
• Sustainable cost efficiencies identified and implemented
• Balance sheet remains strong
• Bank facility to 2012 with cash and debt capacity of $107m available

40%

Operating Performance*

• Bank facility to 2012 with cash and debt capacity of $107m available

20% 30% 40% Operating rmance 0% 10% Q1 Q2 Q3 Q4 % Total O Perfor Consulting International Development Project Management

* Based on management accounts

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Our services and sectors

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Our services and sectors Our services and sectors

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How our revenue is derived by region and by sector How our revenue is derived – by region and by sector

800 900 Total Revenue 90% 100% Total Revenue 600 700 800 60% 70% 80% 90% 300 400 500

A$m

30% 40% 50% 60% 100 200 0% 10% 20% FY08 FY09 Asia Pacific Americas Europe & Middle East Africa FY08 FY09 Government Infrastructure Property Resources p

* pre SBP & VEO

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Divisional Analysis Divisional Analysis

Operating EBITDA (pre vendor earn-

• ut & vendor share based payments)

Fee Revenue Fee Margin 12 months to 30 June ($m) 2009 2008 Change 2009 2008 2009 2008

Consulting 44 2 48 7 (9 2%) 283 2 251 3 15 6% 19 4% Consulting 44.2 48.7 (9.2%) 283.2 251.3 15.6% 19.4% International Development 25.2 8.3 203.6% 151.9 65.5 16.6% 12.7% Project Management 13.4 10.7 25.2% 75.2 59.8 17.8% 17.9% U ll d (26 8) (18 0) 48 9% Unallocated (26.8) (18.0) 48.9%

• Total

56.0 49.8 12.5% 510.4 376.6 11.0% 13.2%

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Consulting Overview Consulting Overview

Consulting Operating EBITDA* down 9.2% to $44.2m in FY09

60 Operating EBITDA*

• Some sectors declined

significantly due to the GFC

48.7 44.2

40 50

– Commercial Property and Mining sectors – Infrastructure project delays / postponement

CAGR 30.6%

22 1 32.7

30 40 $m

postponement

• Slump due to weak demand in Q3

rebounding in Q4 as government

15.2 22.1

10 20

and private sector infrastructure projects came on-line

• Redundancies during March /

FY05 FY06 FY07 FY08 FY09

Redundancies during March / April 2009

• Two small bolt-on acquisitions

* Pre VEO & SBP

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• A leading specialist consultancy in environmental, workplace health

and safety, and sustainable engineering services

• Projects include:
• Dept of Defence –

Revenue contribution

p asbestos assessment and management

• Colonial First State

level

20%

• Colonial First State - level

3 energy audits

• Mobil – assessment and

50% 15%

remediation work

• Chevron – Gorgan &

Wheatstone projects OHS

15%

Wheatstone projects OHS services

Resources Infrastructure Government Property

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• A specialist ground engineering consultancy
• Projects include:
• Spadina Toronto rail tunnel –

geotechnical investigation and

0% Revenue contribution

geotechnical investigation and advice

• RTA (NSW) Tarcutta and Ballina

alliances – geotechnical

30% 0% 10%

g investigation, design and construction advice

• Chevron Wheatstone project – near

h d h h i l shore and onshore geotechnical investigation and advice

• Sydney metro (Thiess / John

Holland – tender design and advice

60%

Holland – tender design and advice

• n primary route infrastructure

Resources Infrastructure Government Property

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• An industry-leading specialist in scientific testing solutions
• Projects include:
• Northern Hume Alliance –

Revenue contribution

construction materials testing

• Coopernook to Herons

20% 5%

• Coopernook to Herons

Creek (Thiess) – construction and materials t ti testing

• Ballina Bypass Alliance –

construction materials

75%

construction materials testing

Resources Infrastructure Government Property

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• A global specialist consultancy providing a wide range of technical

services and products to all sectors of the international mining industry

• Projects include:
• Citadel Resources –

Revenue contribution

definitive feasibility study in Saudi Arabia

• TransAfrica Resources
• TransAfrica Resources –

exploration management services in West Africa

• Waratah Coal – mine

design studies

100% Resources Infrastructure Government Property

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• A specialist environmental and social impact assessment

consultancy servicing the mining, oil and gas and infrastructure sectors

• Projects include:
• Arrow Energy gas field

Revenue contribution

development – environmental impact statement (EIS)

10%

( )

• Shell – EIS preparatory

requirements

• ExxonMobil PNG LNG
• ExxonMobil PNG LNG

Project – environmental and social impact assessment and environmental

90%

and environmental management

Resources Infrastructure Government Property

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• Specialist engineering consultants providing quality strategic,

modelling, design, management and implementation services to the rail industry

• Projects include:
• Dept of Transport (Vic) Eltham

Revenue contribution

stabling and signalling – concept & detailed signalling, track and civil design

• Dept of Transport (Vic) metro

replacement project – engineering management and

50% 50%

design

• Dept of Infrastructure, Energy

& Resources (Tas) rail track upgrade – advice, design and construction supervision

Resources Infrastructure Government Property

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• One of Australia’s leading strategic advisors on asset transactions,

regulatory reform, leisure, sports and stadia

• Projects include:
• Sunshine Coast University Hospital

– project planning and transaction

Revenue contribution

p oject p a g a d t a sact o management

• Dept of Transport (Vic) Metropolitan

Rail Franchising (MR3) - project

5%

planning, procurement design & management, contract negotiations, transition management

• Geelong Football Club
• Geelong Football Club

redevelopment of Skilled Stadium stage 2 – master planning, business planning and

95%

development business case, funding procurement and project director role

Resources Infrastructure Government Property

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International Development Overview International Development Overview

International Development Operating EBITDA* up 203.6% to $25.2m in FY09

30.0 Operating EBITDA*

• Substantial increase in

contribution from division

FY09

25.2

20 0 25.0

• Increased government

spending on international d l t

CAGR 58.5%

15.0 20.0 $m

development

• Significant contribution from

USA

4.0 3 2 8.3

5.0 10.0

USA

• Increased contribution from all

regions

3.2 1.6

• FY05

FY06 FY07 FY08 FY09

g

• One acquisition in Europe

* Pre VEO & SBP

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• A global development consultancy focusing on improving the lives of

world communities through social infrastructure development

• Projects include:
• USAID Mexico Rule of Law

Revenue contribution

III – A five-year project to support legal reforms in Mexico Mexico

• AusAID AIPMNH: project to

improve neonatal health in I d i Indonesia

• DFID MPRLP: project to

improve rural livelihoods in

100%

improve rural livelihoods in India

Resources Infrastructure Government Property

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Project Management Overview Project Management Overview

Project Management Operating EBITDA* up 25.2% to $13.4m in FY09

16 Operating EBITDA*

• Strong performance in

challenging market

10.7 13.4

12 14

• Geographic diversity paying off
• Suffered Q3 downturn and Q4

CAGR 48.0%

8.6

8 10 $m

rebound as a result of Australian Government spending

2.8

4 6

spending

• Managing downturn in Dubai

well

2 FY06 FY07 FY08 FY09

• One acquisition in Africa

* Pre VEO & SBP

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• Providers of specialist project management services
• Projects include:
• Building the Education Revolution

(WA / QLD / Vic / NT) project

4% Revenue contribution

(WA / QLD / Vic / NT) – project management and superintendent representative services on the design & construction

10%

• Marina Bay Sands Integrated

Resort – retail tenancy delivery incl. Design review and fit-out coordination

25% 61%

coordination

• Christchurch International Airport –

business case / feasibility, design, consenting, staged construction consenting, staged construction and commissioning

Resources Infrastructure Government Property

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Strategy gy

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Strategic imperatives Strategic imperatives

• Be a unified Coffey team executing the strategy
• Develop a culture of ‘One Coffey’
• Develop a culture of One Coffey
• Be agile, innovative and aspirational
• Grow organically
• Utilise existing equity and debt capacity
• Create more efficiency to enhance profitability
• Deliver ongoing improvements in working capital and

Deliver ongoing improvements in working capital and cash flow

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Outlook

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Outlook on business environment Outlook on business environment

• Economy showing signs of recovery, speed is still

unclear and caution still prevalent unclear and caution still prevalent

• International Development very strong position globally

I f t t k i

• Infrastructure work progressing
• Government spending will go some way to filling the gap

f k i t t d d f i i

• f weak private sector demand – focus on gaining an

increasing share of government spending

• Energy sector is showing strong signs (e.g. LNG)

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Going forward Going forward

• 3 year plan will be the next phase to launch Global Coffey
• Build business from current geographic footprint with increased

Build business from current geographic footprint with increased regional presence and local support

• Focus on bringing efficiencies from what we have built so far
• Fund growth from current capital
• Additional $10m per annum savings expected to be created in

FY2010

• Expect strong annual double digit growth in EPS over coming 3

years years

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Questions and answers

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Appendix pp

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A snapshot of Coffey over the past 5 years A snapshot of Coffey over the past 5 years

Metrics ($m) unless otherwise stated FY05 FY06 FY07 FY08 FY09 ($ ) Revenue 170.0 251.9 362.7 558.6 808.7 Operating EBITDA (pre VEO & SBP) 17.5 24.2 29.1 49.8 56.0 O ti EBITA ( VEO & SBP) Operating EBITA (pre VEO & SBP) 16.3 22.4 25.4 43.2 47.4 EBIT 15.4 20.6 18.4 35.0 41.1 NPAT (pre VEO & SBP) 11.2 13.4 14.4 22.9 22.8 NPAT (reported) 10.2 11.6 8.4 15.3 16.4 Operating EBITDA (pre VEO & SBP) (revenue) Margin 10.3% 9.6% 8.0% 8.9% 6.9% EPS (basic) (NPAT reported) 17 3 19 0 16 0 20 8 20 1 ( ) ( p ) 17.3 19.0 16.0 20.8 20.1 Net Debt 3.1 54.8 46.1 91.9 92.8 Equity 34.2 67.0 177.6 196.1 191.1 Net debt/equity 9.2% 81.8% 26.0% 46.9% 48.6% Net debt/capital 8.4% 45.0% 20.6% 31.9% 32.7% Interest cover (Operating EBITDA pre VEO & SBP) 19.4 7.6 6.0 6.3 4.6 Operating EBITDA / Capital (equity + net debt) 46.8% 19.9% 13.0% 17.3% 19.7%

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Global presence p

Europe / Middle East (c. 228 FTE)

• Geotechnics
• International Development

p

• Projects
• Environments
• Mining

Asia Pacific Americas (c. 1,089 FTE)

• Environments

Asia Pacific (c. 2,440 FTE)

• Geotechnics
• Environments
• Information

I t ti l D l t

• International Development
• Mining
• Geotechnics
• Information
• International Development
• Mining
• Natural Systems
• Peron / Stratcorp
• Rail

P j t

Africa (c. 53 FTE)

• Mining
• Projects
• Projects

FTE = full-time equivalents

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Disclaimer Disclaimer

The material in this presentation is a summary of the results of Coffey International Limited (Coffey) for the 12 months ended 30 June 2009 and an update on Coffey’s activities and is current at the date of preparation, 16 September 2009. Further details are provided in the Company’s full year accounts and results announcement released on 19 August 2009. 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 p p y y p 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 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

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