For personal use only COFFEY INTERNATIONAL LIMITED LODGE MID CAP CONFAB PRESENTATION ROGER OLDS 10 APRIL 2008
Agenda For personal use only • Organisation overview • 12-month overview • Refined strategy • ‘Platform for growth’ • Snapshot of Coffey businesses • Outlook
For personal use only ORGANISATION OVERVIEW
Company snapshot For personal use only • Unique multi-specialist model • Market leading specialist services • Operating in high demand market sectors • >4,000 employees globally • • Part of ASX 300 Index Part of ASX 300 Index • Offices in more than 14 countries and operations in more than 80 countries; 46% of annualised earnings outside Australia • Diversification by service sector and geography • Strong balance sheet with headroom in new $200m debt facility
Best-of-breed consultants in specialists fields For personal use only
Operating in high demand sectors For personal use only • Infrastructure • Resources • Property • International Development
Geographic spread - physical infrastructure For personal use only (ex-Australia)
Geographic spread - social infrastructure For personal use only and project offices in another 60+ countries
Coffey group growth For personal use only Coffey group revenue 600 500 400 illions 300 300 $A mil 200 100 0 2003 2004 2005 2006 2007 2008 Financial year Forecast results
Coffey group operating profit and earnings per share For personal use only Operating NPAT Operating Earnings per Share 30.0 25.0 25.0 20.0 r Share (cents) NPAT ($m) 20.0 15.0 Operating NP Earnings per S 15.0 15.0 10.0 10.0 5.0 5.0 0.0 0.0 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 Forecast results
People and Performance For personal use only • Experienced board and executive team • Expanded staff from 2,400 to over 4,000 over past 12 months • Growth through mix of organic and acquisitions, across all sectors and services • • Invested in People and Performance initiatives Invested in People and Performance initiatives – Coffey Leaders program; another 25 being trained. Total of 71 to date – Re-launched short and long-term rewards scheme – Launching online candidate management system – Recruited team of specialist recruitment, learning and development consultants
For personal use only 12-MONTH OVERVIEW
12-month overview For personal use only • Launched 2 new brands - Coffey Natural Systems and Coffey Projects • 8 acquisitions this financial year to date - all performing well • Expanded sectors - rail and strategic advisory services • Entry into Brazil, Canada, Zambia; expanded presence in South Africa, UK, USA • Record FY2007 & H1 FY 2008 results • Improved operating cash flow from impact of ‘financial excellence strategy’ • • Refinanced group debt facilities from $115m to $200m unsecured syndicated facility Refinanced group debt facilities from $115m to $200m unsecured syndicated facility led by ANZ in uncertain market • Acquisition pipeline still active and pricing changed • Extended 3 year business plan to meet $70m pa EBITA target sometime in FY09; will be close in June 08 • Announced 2nd ‘Worldpark’ business precinct in Melbourne • Won 2nd BRW Clients Choice Award (best consulting engineering co. revenue over $200m) • Developed Platform for Growth initiative to launch into 2010-2012 plan in 12 months
Fine tuned strategy For personal use only • Current strategy based on our 2006-2008 business plan – In June 2005 we set target to grow EBITA from $14.9 million in FY05 to annualised $70 m ($6m per month) by June 2008 – Invest in systems and people to support this growth – We are well advanced toward this target, and have finance in place to fund it and more • • However the financial markets have changed and we’ve fine tuned our However the financial markets have changed and we’ve fine tuned our strategy – Slow down acquisitions with more stringent criteria and reduced pricing; COF equity set at minimum price regardless of market – Continue financial excellence strategy to improve margins and cash flow; this will increase organic growth – DRP suspended whilst market price so depressed – Extend our business plan by one year to deliver our EBITA target – Use extra year to embed ‘platform for growth’ under next 3 year plan, 2010 to 2012
Staff growth - last 12 months For personal use only 1200 1000 ber of staff 800 600 Number 400 200 0 Intnl Development Environments Mining Natural Systems APR/Peron/Stratcorp Corporate Geotechnics Projects Coffey Entity
For personal use only PLATFORM FOR GROWTH
Platform for growth For personal use only • Programme to drive short-term performance and long- term growth • Developing transformational strategy – Aligning vision, strategy, culture and operational excellence – Glue for 4,000 people to global Coffey culture – Glue for 4,000 people to global Coffey culture – Embedding these practices to provide strong foundation for future • Will create new structure for global expansion once strategy is confirmed
For personal use only SNAPSHOT OF COFFEY BUSINESSES
Major projects For personal use only • Hume • Ballina • Singapore Casino • Abu Dhabi Business Hub, Skyview Tower Dubai. • Brazilian exploration (Votorantim) • • Iraq private sector development; private sector and governance Iraq private sector development; private sector and governance development in Asia Pacific (PPPs) • Victorian rail level crossing implementation • Shell Pandacan, Halon Bank • PNG LNG projects • Major contract prospects in Gulf are still progressing
Specialist engineering and environmental consulting For personal use only • Australia’s leading and first specialist geotechnical consulting firm • Around 850 staff • Nearly 50 years’ experience • Geotechnical engineering - analysis and design, site investigation, geo- environmental engineering, groundwater, geophysics and laboratory testing • Expanded into NZ and UK & Canada via acquisition • • Key clients: Leighton Companies; Inpex Browse Limited; Qld Main Key clients: Leighton Companies; Inpex Browse Limited; Qld Main Roads; NSW Roads and Traffic Authority; BHP Billiton • Sustainable engineering, environmental impact and field ecology, waste management, workplace health and safety • Around 600 staff • Australia’s largest enviro, H&S and sustainability consultancy • Presence in Philippines, USA • Key clients: Mobil; Caltex; Shell; Department of Defence; Telstra; Sydney Airport; LA school Board
Specialist mining and social & environmental impact For personal use only consulting • One of Australia’s biggest mining consultant groups • Around 700 staff • More than 30 years experience in Australia and abroad • Services from ‘cradle to the grave’ – Exploration, feasibility, funding, development, operations / business improvements and site closure improvements and site closure • Key clients: BHP Billiton; Rio Tinto, Votorantim, Vale (CVRD) Mirabella Resources • Environmental impact assessments, community consultation • Around 70 staff • More than 30 years experience, more than 40 countries • Key clients: Exxon; Oxiana; Karara Management Services; Ramu NiCo Management (MCC); Morobe Consolidated Goldfields; Iluka Resources
Specialist international development For personal use only • Social infrastructure development, ie. helps donor organisations deliver governance systems, public services and business models to developing and emerging markets; emerging market for assisting private sector focus on developing countries (PPPs, Business for the Millennium) • Around 1,100 staff • • Operations in more than 60 countries Operations in more than 60 countries • Acquired MSI January 2008 • Key clients: world’s major donor organisations including the UN, the World Bank, the EU, the Asian Development Bank, USAID, the United Kingdom Department for International Development and AusAID
Specialist project management For personal use only • Largest specialist project management company in southern hemisphere • Project management, strategic development advice, feasibility advice, procurement, tender and post- construction processes management • • Around 420 staff Around 420 staff • Presence in Australia, NZ, UAE, South Africa • Recently acquired Teal management service - exposure to transportation project management • Diversifying into resources and infrastructure • Key clients: Rio Tinto, Coles, Toll Holdings, Multiplex, Emirates Corp., local and national governments
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