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
0FY05 FY06 FY07 FY08 FY09
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
0FY05 FY06 FY07 FY08 FY09
Earnings Per Share (Basic)
0FY05 FY06 FY07 FY08 FY09
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 /
0FY05 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
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%
Revenue contribution
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 –
Revenue contribution
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 –
Revenue contribution
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
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 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
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 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
Resources Infrastructure Government Property
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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
Revenue contribution
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%
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 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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