For personal use only COFFEY INTERNATIONAL LIMITED LODGE MID CAP - - PowerPoint PPT Presentation

COFFEY INTERNATIONAL LIMITED LODGE MID CAP CONFAB PRESENTATION ROGER OLDS 10 APRIL 2008

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Agenda

• Organisation overview
• 12-month overview
• Refined strategy
• ‘Platform for growth’
• Snapshot of Coffey businesses
• Outlook

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ORGANISATION OVERVIEW

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Company snapshot

• 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

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Best-of-breed consultants in specialists fields

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Operating in high demand sectors

• Infrastructure
• Resources
• Property
• International Development

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Geographic spread - physical infrastructure (ex-Australia)

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Geographic spread - social infrastructure and project offices in another 60+ countries

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Coffey group growth

300 400 500 600 illions

Coffey group revenue

100 200 300 2003 2004 2005 2006 2007 2008 Financial year $A mil

Forecast results

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Coffey group operating profit and earnings per share

Operating Earnings per Share

15.0 20.0 25.0

r Share (cents)

Operating NPAT

15.0 20.0 25.0 30.0

NPAT ($m)

0.0 5.0 10.0 2003 2004 2005 2006 2007 2008

Earnings per S

2003 2004 2005 2006 2007 2008

0.0 5.0 10.0 15.0 2003 2004 2005 2006 2007 2008

Operating NP

2003 2004 2005 2006 2007 2008

Forecast results

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People and Performance

• 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

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12-MONTH OVERVIEW

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12-month overview

• 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

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Fine tuned strategy

• 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

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Staff growth - last 12 months

600 800 1000 1200

ber of staff

200 400

Environments Geotechnics Intnl Development Mining Natural Systems Projects APR/Peron/Stratcorp Corporate

Coffey Entity

Number

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PLATFORM FOR GROWTH

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Platform for growth

• 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

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SNAPSHOT OF COFFEY BUSINESSES

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Major projects

• 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

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Specialist engineering and environmental consulting

• 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

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Specialist mining and social & environmental impact 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

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Specialist international development

• 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

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Specialist project management

• 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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Strategic infrastructure advice

• Front-end strategy, transaction advice - major infrastructure
• Experience in multilateral agency projects in Africa, Indonesia and

Papua New Guinea

• Around 30 staff
• Acquired August 2007
• Key government infrastructure clients
• High-level strategic advice - large sporting and leisure

infrastructure

– master planning, businesses cases, community consulting, market research, funding proposals and project delivery.

• Around 10 staff
• Acquired September 2007
• Clients include AFL and several clubs; various horse racing clubs;

local councils

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Rail engineering

• A leading Victorian specialist rail engineering

consultancy

• Specialises in track, signalling and infrastructure

projects

• Around 55 staff
• Around 55 staff
• Acquired July 2007
• Key clients: Department of Infrastructure (DOI -

Victoria) Department of Infrastructure, Energy & Resources (DIER - Tasmania), Cape Lambert Mining for G13 Pty Ltd, Pacific National

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OUTLOOK

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External outlook

• Demand from China and India still driving growth; resources sector

particularly

• Infrastructure boom will continue to facilitate growing populations and many

years of under-investment

• Current financial market may slow private funding to projects but still a lot of

demand for services and specialist skills more valuable when projects are under tighter financial pressure under tighter financial pressure

• Increased AID for developing world and private sector seeing the economic
• pportunity in these markets
• World-wide skills shortage in engineering, construction and mining

disciplines

– Increased opportunities for consultants/outsourcing – Must invest to win the war for talent; culture an important element for Gen Y

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Internal Outlook

• Continue journey to become a global multi-specialist consulting

company

– Use market leading positions to drive organic growth – Acquire to expand in new geographic locations

• Leverage the investment in corporate services with reduced rate of

spending

• Target cross selling opportunities by sector for larger clients
• Target cross selling opportunities by sector for larger clients
• Maintain strong cashflow and keep headroom on facility for the best
• pportunities
• Drive financial excellence strategy to optimise fee revenue
• Use platform for growth to glue everyone to Coffey’s culture for next

phase of growth in 2009-2012

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THANK YOU

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