For personal use only - Engineering · PDF fileConsulting International Development Project...

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 of 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 OfficerUrs Meyerhans, Chief Financial Officer

16 September 2009

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AgendaAgenda

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

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Company snapshotp y p

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Company snapshotCompany 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+ countriesOperating 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 companyBuilding a global company2009- 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

1959C 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 on the ASX

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Financial snapshotp

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Financial snapshotFinancial snapshot

900

Revenue ($M)

808.756.0 60

Operating EBITDA* ($M)

298.3

600

700

800

558.6

808.749.8

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

300170.0

251.9

10

20

0FY05 FY06 FY07 FY08 FY09

Fee Revenue Reimburseables


Operating EBITDA*p g

* pre SBP & VEO

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Financial snapshotFinancial 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

1010.5

6

8

10

2

4

6

2

4

6


Earnings Per Share (Basic)


Dividends Per Shareg ( )

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Share price performanceShare 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 FY09Recap 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%

Ope

ratin

g rm

ance

0%

10%

Q1 Q2 Q3 Q4% T

otal

OPe

rfor

Consulting International Development Project Management

* Based on management accounts

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Our services and sectors

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Our services and sectorsOur services and sectors

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

800

900Total Revenue

90%100%

Total Revenue

600

700

800

60%70%80%90%

300

400

500

A$m

30%40%50%60%

0

100

200

0%10%20%

FY08 FY09

Asia Pacific AmericasEurope & Middle East Africa

FY08 FY09

Government InfrastructureProperty Resourcesp

* pre SBP & VEO

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Divisional AnalysisDivisional Analysis

Operating EBITDA (pre vendor earn-out & 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 OverviewConsulting Overview

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

60Operating EBITDA* • Some sectors declined

significantly due to the GFC48.7

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 /


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

pasbestos 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 servicesResources Infrastructure Government Property

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• A specialist ground engineering consultancy

• Projects include:• Spadina Toronto rail tunnel –

geotechnical investigation and0%


geotechnical investigation and advice

• RTA (NSW) Tarcutta and Ballina alliances – geotechnical

30%

0%10%

ginvestigation, design and construction advice

• Chevron Wheatstone project – near h d h h i lshore and onshore geotechnical

investigation and advice• Sydney metro (Thiess / John

Holland – tender design and advice

60%

Holland – tender design and advice on primary route infrastructureResources Infrastructure Government Property

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• An industry-leading specialist in scientific testing solutions

• Projects include:• Northern Hume Alliance –


construction materials testing

• Coopernook to Herons

20%5%

• Coopernook to Herons Creek (Thiess) –construction and materials t titesting

• Ballina Bypass Alliance –construction materials

75%

construction materials testingResources 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 –


definitive feasibility study in Saudi Arabia

• TransAfrica Resources• TransAfrica Resources –exploration management services in West Africa

• Waratah Coal – mine design studies100%

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


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 managementResources 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


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


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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


p oject p a g a d t a sact omanagement

• 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 Stadiumstage 2 – master planning, business planning and

95%

development business case, funding procurement and project director role


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International Development OverviewInternational 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 regions3.2

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


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

• AusAID AIPMNH: project to improve neonatal health in I d iIndonesia

• DFID MPRLP: project to improve rural livelihoods in

100%

improve rural livelihoods in IndiaResources Infrastructure Government Property

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Project Management OverviewProject Management Overview

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

16Operating 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

2.84

6 spending• Managing downturn in Dubai

well

0

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) project4%


(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 constructionconsenting, staged construction and commissioningResources Infrastructure Government Property

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Strategygy

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Strategic imperativesStrategic 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 andDeliver ongoing improvements in working capital and

cash flow

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Outlook

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Outlook on business environmentOutlook on business environment

• Economy showing signs of recovery, speed is still unclear and caution still prevalentunclear and caution still prevalent

• International Development very strong position globallyI 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 iof 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 forwardGoing forward

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

yearsyears

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Questions and answers

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Appendixpp

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A snapshot of Coffey over the past 5 yearsA snapshot of Coffey over the past 5 yearsMetrics($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 presencepEurope / Middle East (c. 228 FTE)- Geotechnics- International Developmentp- Projects- Environments- Mining

Asia PacificAmericas (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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DisclaimerDisclaimer

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 pbe 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 includingThis 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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