Goldman Sachs Emerging Companies Presentation Stable business with more than 180 diverse projects in...

Coffey International LimitedGoldman Sachs Emerging Companies Presentation16 May 2013

Agenda

• What do we do?

• 50 years brand equity

• Turnaround and refocus of the business

• Current markets and how the business is positioned

Coffey International LimitedGoldman Sachs Emerging Companies Presentation – 16 May 2013 2

Focused on 3 key businesses exposed to diversified sectors

Geosciences International Development

Infrastructure Mining Oil & Gas Government Property

Private Property

GovernmentAid

3

Coffey International Limited

Project Management

Goldman Sachs Emerging Companies Presentation – 16 May 2013

Our businesses

$358.9m $213.2m

Total revenue H1 FY2013 Fee revenue H1 FY2013

** Includes project specific contractors (1,300 contractors)

4Coffey International Limited

EBITDA breakdown H1 FY2013

$17.8m

Geosciences 58%

InternationalDevelopment 42%ProjectManagement 0%

Geosciences 65%

InternationalDevelopment 28%

ProjectManagement 7%

Geosciences 52%

InternationalDevelopment 43%

ProjectManagement 5%

Employee numbers December 2012

Geosciences 1,920

International Development** 1,700

Project Management 170

Functional shared services 260

Corporate 20


Exploration/Concept

Evaluation + Studies Design Development Operation Closure

From Concept to Closure - across the entire project life cycle

5

For our clients across the Resource (Mining and Oil & Gas) andInfrastructure (Transportation, Property, Power & Utilities) Sectors

Key services across our Geosciences Business

Exploration supportResource delineation & certificationInformation management (GIS, 3D Numerical Modelling etc)Due diligence auditingFeasibility studiesEnvironmental approvalsSite investigation & geotechnical interpretation

Engineering designEnvironmental /HSSE compliance planning and monitoringConstruction advice/managementMaterials testing (soils, rock, construction materials)Optimisation studiesTrainingSite closure (decommissioning / remediation / rehabilitation)

Goldman Sachs Emerging Companies Presentation – 16 May 2013Coffey International Limited

Geosciences services

Geoscience revenues


Fee revenue H1 FY2013by sector

Fee revenue H1 FY2013by geography

$137.9m $137.9m

Infrastructure 34%

Mining 27%

Oil & Gas 19%

Other 20%

APAC 86%

Americas 10%

Africa 2%

Europe &Middle East 2%

Strong global footprint A diverse client base


Barangaroo Site Development, NSW

7Goldman Sachs Emerging Companies Presentation – 16 May 2013Coffey International Limited

Client

Lend Lease

Key Services

• Site investigation and geotechnical interpretation

• Geotechnical design

• Testing and construction monitoring

Australia Pacific LNG – Water Treatment Facilities,Condabri Central & Reedy Creek, QLD


Client

Leighton Contractors

Key Services

• Onsite testing lab

• Materials and quality control testing and supervision

Arrow LNG Plant, Curtis Island, QLD


Client

Arrow Energy

Key Services

• Environmental impact assessment

• Geotechnical and geophysical investigations

• Hazardous materials testing and noise compliance

Namakawa Diamonds Storm Mountain Mine, Lesotho (Africa)

10Coffey International LimitedGoldman Sachs Emerging Companies Presentation – 16 May 2013

Client

Storm Mountain Diamonds (Pty) Ltd

Key Services

• High-wall safety slope designs and monitoring

International Development capabilities

• Human development

• Economic growth

• Governance and public sector management

• Security and justice

• Stabilisation and recovery

• Evaluation and research

• Food security, environment and natural resources

Coffey International Limited11

Major Offices Regions services supplied to

Washington

London

Adelaide


International Development revenues

• Stable business with more than 180 diverse projects in over 70 countries in the developing world

• Many programs of a 3 – 5 year tenure

• Regional operations working together on bids to optimise project delivery and impact

• Clients include:


Americas 48%Australia 27%Europe 21%Other 4%

$59.9m


Fee revenue H1 FY2013 by region

Australia Indonesia Partnership for Maternal and Neonatal Health


Client

AusAID

Agenda

• What do we do?




Coffey International Limited14Goldman Sachs Emerging Companies Presentation – 16 May 2013

50 years brand equity

15

1959 1990 2000 2003 2004-2008 2009-2010 2011 2012 2013

David Coffey startsAustralia’s first geotechnical engineering practice fromhis Sydney home

Employees: ~150

Coffey International Limited lists on the ASX

Coffey acquires SAGRIC International and expands presence in International Development market

Employees: ~600

Coffey joins the Standard & Poor’s ASX 300 in September

Employees:600 – 4200

Coffey expands into Brazil, increases NZ, UK and US and Canada footprint

Acquires 30 companies -addingcommercial advisory, sports & leisure, and rail

Employees: ~4,000

Coffey celebrates 50 years

A further 7 companies acquired in Geosciences and International Development

Complex organisational structure put in place

Employees: ~3,800

LA Environments divested

Commercial Advisory closed

Middle East Project Management closed

Employees: ~4,060

Coffey Rail sold

Running off existing STA* projects with reduced overheads

Employees: ~4,070

Global Financial Crisis

* Specialised Training Australia

Coffey International LimitedGoldman Sachs Emerging Companies Presentation – 16 May 2013

Agenda

• What do we do?





Turnaround and refocus of the business

• Significant financial de-risking:

– Revenues begin to show resilience, despite mining market pressures– Further reduction of debt – Competitive refinancing completed

• Evidence of cultural change:

– Strong safety disciplines– Working capital at historic lows– Managers are more commercial and responsive to market conditions – Staff turnover at target


Significant financial de-risking

* Half year Underlying EBITDA is calculated as the sum of the prior 12 months EBITDA.

H2 2011 H1 2012 H2 2012 H1 2013

$121.2m

$32.3m

$77.5m

$39.7m*

$66.0m

$39.7m

$58.1m

$34.5m*

Net Debt UnderlyingEBITDA




Net Debt/EBITDA= 3.75 Net Debt/

EBITDA= 1.95

Net Debt/EBITDA= 1.66

Net Debt/EBITDA= 1.68


Agenda

• What do we do?





Changing market conditions

• Market outlook has softened significantly since December 2012:

– Softening relates to Australian Geosciences and Project Management

– Offshore Geosciences is exposed to low commodity prices but cost pressures on projects are less pronounced. Some regions remain buoyant (Christchurch, Toronto, Calgary)

– Outlook for International Development is unchanged, delivering steady revenue streams and consistent margins

• Client confidence in Australia has been affected by:

− Falling commodity prices

− A stubbornly high $AUD

− Uncertain political environment

• Increased project cancellations and delays in Australia across a range of sectors – not only in mining, but also in infrastructure and oil & gas.


Cumulative value of Geosciences contracted project delaysand cancellations


$0

$2

$4

$6

$8

$10

$12

$14

$16

Qtr 4 FY2012 Qtr 1-2 FY2013 Qtr 3 FY2013 Qtr 4 FY2013

Mill

ions

Oil & Gas - delayed

Mining - delayed

Infrastructure - delayed

Oil & Gas - cancelled

Mining - cancelled

Infrastructure - cancelled

In the past 6 weeks, 54 projects have been delayed or cancelled

FY2013 outcomes

• Reported EBITDA FY2013 is anticipated to be between $18 – $19 million

• Underlying EBITDA FY2013 is anticipated to be between $27 - $29 million

• Geosciences fee revenue for Q3 FY2013 is lower than the prior comparable period and margins are adversely impacted. Further project delays are occurring in Q4 FY2013

• Additional restructuring costs of $7 - $8 million will be incurred in Q4 FY2013 with benefits being realised in FY2014 (total FY2013 restructuring costs will be $9 - $10 million)

• International Development continues to perform in line with H1 outcomes and Coffey expects a FY2013 EBITDA of $16 – $17 million

• No final dividend for FY2013


Responsive management

• While our strategy is unchanged, we have had to respond to deteriorating Australian market conditions and project delays:̶ Approximately 150 redundancies across the Australian Geosciences

and Projects businesses̶ Consolidation of some Australian offices̶ Agile redeployment of specialist skills and senior talent into growth

markets overseas and in regional Australia. ̶ Flexible employment arrangements

• Benefits expected to be realised in FY2014

• Collaborative client relationships to support rapid resourcing as delayed projects come back on-stream


Disclaimer

24

The material in this presentation is a summary of the results of Coffey International Limited (Coffey) for the 6 months ended December 2012 and an update on Coffey’s activities and is current at the date of preparation, 16 May 2013. Further details are provided in the Company’s half year accounts and results announcement released on 11 February 2013 and the Company’s trading update released on 13 May 2013.

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 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 historical results and a description of the activities of Coffey is available on our website: coffey.com

Photos owned by Coffey or Coffey employees and permission is provided.

Coffey International LimitedGoldman Sachs Emerging Companies Presentation – 16 May 2013

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Goldman Sachs Emerging Companies Presentation Stable business with more than 180 diverse projects in...

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