2015 Annual General Meeting Simon Thomas Chief Executive Officer 17 November 2015
Disclaimer This Document should not be considered as an offer or invitation to subscribe for or purchase any securities in OTOC Limited (“OTOC” or “The Company”) or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in OTOC should be entered into on the basis of this Document. This Document contains high level information only and does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of OTOC and its prospects. Any forecasts and forward looking information contained in this Document are subject to risks and uncertainties and are not a guarantee of future performance. Actual performance will almost certainly differ from those expressed or implied. OTOC makes no representation or warranty, express or implied, as to the accuracy, currency or completeness of the information presented herein. Information contained in this Document may be changed, amended or modified at any time by OTOC. OTOC is under no obligation to update any information or correct any error or omission which may become apparent after this Document has been issued. To the extent permitted by law, OTOC and its officers, employees, related bodies corporate and agents (‘Associates’) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of OTOC and/or its Associates) for any loss or damage suffered by recipients of this Document or other persons arising out of, or in connection with, any use of or reliance on this Document or information contained herein. By accepting this Document, the recipient agrees that it shall not hold OTOC or its Associates liable in any such respect for the provision of this Document or any other information provided in relation to this Document. Recipients of this Document must make their own independent investigations, consideration and evaluation of the information contained herein. Any recipient that proceeds further with its investigations, consideration or evaluation of the information described herein shall make and rely solely upon its own investigations and inquiries and will not in any way rely upon this Document. Recipients of this Document should not act or refrain from acting in reliance on material in this Document. Page | 2
Agenda 1. Introduction 2. Business Lines 3. Securing the Future 4. Summary and Outlook Page | 3
Company Overview OTOC provides surveying, town planning and infrastructure services throughout Australasia. OTOC delivers quality service to clients across a range of industries and is an emerging leader in the provision of professional consulting and innovative spatial solutions. Corporate Snapshot Share Price Performance – from 1 July 2014 Share Price (ASX: OTC) $ 0.175 $0.25 Ordinary Shares 264m OTC Market Capitalisation $46m All Ordinaries Index Enterprise Value $51m $0.20 +90% Board & Management Derek La Ferla Non-Executive Chairman $0.15 Adam Lamond Executive Director Tom Lawrence Non-Executive Director Karl Paganin Non-Executive Director $0.10 -3% Simon Thomas Chief Executive Officer Brian Mangano Chief Financial Officer Lisa Wynne Company Secretary $0.05 Substantial Shareholders Directors 23.4% $0.00 Acorn Capital 9.2% Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Paradice Investment 7.1% Reindeer Investments 5.2% Page | 4
2015 – Highlights • Created sustainable operating and financial platform • Implemented first stage of national surveying strategy STRATEGIC • Completed acquisitions of Bosco Jonson, Geo-Metric and THG • Evaluating future surveying acquisitions and growth pathways • 100% LTI free • Creation of a national Surveying, Town Planning & Design Division OPERATIONAL • Restructured WA businesses and reduced overhead costs • Infrastructure division awarded new projects at Nauru and DeGrussa Mine • FY2015 Underlying EBITDA of $4.3m • FY2015 Pro-Forma Survey EBITDA of ~$10m FINANCIAL • Strong balance sheet with cash of $10.2m at 30 June 2015 • New commercial bill facility established with Commonwealth Bank of Australia Page | 5
2015 – Creating a Sustainable Platform for Growth Underlying Objectives – Setting a Base for Sustainability • Transitio n from declining WA resources sector • Leverage our strengths and experience in surveying, town planning and infrastructure services • Develop a national business with exposure to multiple industries • Structure our earnings to be recurring, predictable and sustainable • Build a corporate profile with investors and clients – simple strategy, well executed • Ensure a strong balance sheet to underpin growth and shareholder returns Corporate Surveying Infrastructure National surveying strategy Government and civil infrastructure Board aligned with growth strategy success Platform for growth Strong leadership team aligned to FY16 order book secured deliver performance targets Value-accretive acquisitions Restructured WA business Capacity to manage growth Diverse client portfolio Reduced overhead costs Strong balance sheet – $10m equity raising completed, CBA facility in place Service offerings to key markets Focus towards sustaining capital nationally – property, commercial, Increased institutional ownership infrastructure, resources programs Page | 6
Business Lines Page | 7
Professional Services – Surveying, Town Planning and Design OTOC is Creating a National Surveying, Town Planning & Design Business Location: VIC NSW, QLD, VIC & WA QLD WA Industry Focus: Land and Urban Infrastructure, Land and Urban, Land and Urban, Resources Infrastructure, Resources Resources Acquired: September 2014 December 2014 May 2015 2010 Professional services business model: recurring revenue, solid earnings margins, low capital expenditure Diversified end-user exposure: property, land and urban development, civil infrastructure, government, resources National roll-up strategy underway: fragmented marketed – acquisition targets identified, revenue & cost synergies Strong and consistent earnings: Q1 FY2016 EBITDA $3.1m Page | 8
Professional Services – Surveying, Town Planning and Design FY2016 Actions Project Association Advance National Surveying Strategy Tanami Road upgrade • Targeting acquisitions that enhance geographic market presence and service capability 64 Square Kilometre Array 7,500 Lot Development • Sydney land and urban development markets are a priority Ellenbrook Services Extension • Strategic geographic bolt-on opportunities Sydney Light Rail Realise Synergies Continued upward dwelling approval rates • Significant progress with revenue and cost synergies Professional Services Valuation Multiples • Revenue: national service offering for property developers, “ cross-state tenders”, specialist laser scanning equipment 10.0 9.4x • Cost: developing centralised Finance, IT and HR, realised 7.9x 8.0 insurance and procurement savings 6.8x EV : EBITDA (FY16) Grow Earnings 6.0 5.3x 5.1x • First full year ownership of acquired businesses, 4.0 performing in-line with budget 2.0 • Q1 FY2016 EBITDA $3.1m 0.0 IMF SGH SHJ CDD GXL Page | 9
Infrastructure Division – Construction FY2015 Achievements FY2016 Actions Excellent Project Execution Deliver Order Book • • On-time and budget delivery for key clients Canstruct, BMA, FY2016 work in hand circa ~$43m Rio Tinto and Air Services Australia • Equates to 100% of FY2016 budgeted revenue • Lost Time Injury (LTI) free • EBITDA expected to cover OTOC Limited corporate costs Implemented Strategic Review Outcomes and group overhead • Targeting Projects with Strategic Clients Re-based business plan focussed on civil and government infrastructure provides a lower risk profile • Government infrastructure • Reduced overhead and fixed cost base • Civil infrastructure • New General Manager – Simon Lukan (formerly with • Renewable energy Monadelphous) • Resources Sustaining Capital • Positive FY2015 EBITDA $0.8m • Infrastructure projects that meet strict criteria Secured FY2016 Order Book Grow Earnings • Canstruct: installation of permanent settlement village, hospital and school at Nauru Island • Q1 FY2016 EBITDA $1.4m • Juwi: installation of 10.6MW solar power system at Degrussa • Air Services Australia: procurement, installation & commissioning of fibre optic ring at Perth Airport Page | 10
Securing the Future Page | 11
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