Safety check COFFEY INTERNATIONAL LIMITED Photo by James Ball - www.dlscape.com Half Year Results Presentation 15 February 2012 1
Improved Result Reflects Impact of Completed Strategic Initiatives November 2010 John Mulcahy becomes Chairman Board instigates management review and cost reduction program December 2010 $18 million annual cost base improvement by FY2012 John Douglas commences as Managing Director March 2011 Business / strategy review initiated 1 st stage review completed June 2011 Financial update to market August 2011 Reported FY2011 results October 2011 Capital Raising February 2012 Reported H1 FY2012 results 2
Agenda • Financial Performance • Business Performance • Outlook 3
Improved Profitability H1 H2 H1 6 months FY11 FY11 FY12 ($m) ($m) ($m) Fee revenue 222.6 201.1 212.5 Underlying EBITDA¹ 15.6 16.7 23.0 Underlying EBITDA² from continuing operations 15.9 15.0 20.4 Restructuring costs (5.3) (3.8) 0.0 Impairment 0.0 (62.9) 0.0 EBITDA 10.3 (50.0) 23.0 EBIT 5.1 (55.1) 18.6 NPAT (4.7) (65.0) 4.6 EPS (Basic – cents per share) (3.6) (49.2) 2.8 ¹ Underlying EBITDA — EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) before impairment and restructuring costs ² Underlying EBITDA from continuing operations excludes discontinued businesses of LA Environments and Rail 4
Improved Margins Underlying EBITDA¹ Actual Guidance $55.4m $47.9m $45.0m $44.9m $32.3m $23.0m FY08 FY09 FY10 FY11 FY12 Underlying EBITDA Margin² 11.9% 10.8% 10.8% 10.1% 7.6% FY08 FY09 FY10 FY11 H1 FY12 ¹ Underlying EBITDA — EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) before impairment and restructuring costs 5 ² Underlying EBITDA Margin represents underlying EBITDA over Fee Revenue
Positive Operating Cash Flow $18.0m $11.7m $10.8m $4.2m $4.6m 6
Significant De-Risking $121.2m Net Debt/ Net Debt/ EBITDA EBITDA = 3.75 = 1.72 $77.5m $45m $32.3m $23m 7
Improved Net Asset Position Dec June Dec 2010 2011 2011 ($m) ($m) ($m) Cash & equivalents 35.6 29.6 37.1 Current assets (excl. cash) 170.5 157.2 159.9 Non-current assets (excl. cash) 254.5 191.0 189.2 Total assets 460.6 377.8 386.2 Current borrowings 1.2 46.8 5.6 Other current liabilities 113.7 91.8 94.8 Non-current Borrowings 138.6 104.0 109.0 Other Non-current liabilities 19.9 12.8 12.5 Net assets 187.2 122.4 164.3 8
Debt Paid Down Components of Change in Net Debt Net Operating Cash Inflow $10.8m 9
Improved Gearing Dec June Dec 6 months 2010 2011 2011 ($m) ($m) ($m) Total Cash 35.6 29.6 37.1 (including non-current cash deposits) AUD$ denominated debt 99.8 116.5 79.2 Non AUD$ denominated debt 40.0 34.3 35.4 Total Debt 139.8 150.8 114.6 Net Debt 104.3 121.2 77.5 Total facilities (excl bank guarantees) 185.0 179.0 142.0 Cash and debt available 80.7 57.8 64.5 Equity 187.2 122.4 164.3 Net Debt to (Equity + Net Debt) 36% 50% 32% 10
Improved Financing Facilities Headroom Headroom $64.5m $79.5m $77.5m Net Debt 30 June 2011 31 December 2011 Post December 2011 11
Positive Net Profit After Tax H1 H2 H1 6 months FY11 FY11 FY12 ($m) ($m) ($m) EBITDA 10.3 (50.0) 23.0 Depreciation and Amortisation (5.2) (5.1) (4.4) Interest (7.3) (8.2) (9.4) Taxation and Minority Interests (2.5) (1.8) (4.6) NPAT (4.7) (65.1) 4.6 • No interim dividend declared • The Board will review the potential for a dividend with the FY2012 full year results 12
P & L by Segment FY09 FY10 FY11 FY12 H1 H2 YTD H1 H2 YTD H1 H2 YTD H1 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Fee Revenue 261.2 249.3 510.5 241.0 234.7 475.7 222.6 201.1 423.6 212.5 Geosciences 138.1 118.1 256.2 126.7 111.9 238.5 117.9 117.0 234.9 132.4 International Development 71.6 80.3 151.9 71.2 82.0 153.2 67.5 54.8 122.3 54.2 Project Management 37.3 37.9 75.2 32.9 28.4 61.3 26.5 20.4 46.9 19.3 Other 14.2 13.0 27.2 10.3 12.4 22.7 10.7 8.9 19.6 6.6 Underlying EBITDA¹ 34.9 20.5 55.4 30.5 17.5 47.9 15.6 16.7 32.3 23.0 Geosciences 20.9 9.2 30.1 19.8 9.7 29.5 8.2 14.5 22.7 16.3 International Development 9.9 9.3 19.2 10.0 10.4 20.5 10.4 5.0 15.4 8.0 Project Management 5.5 4.7 10.1 4.1 0.4 4.5 0.7 (0.6) 0.1 0.0 Other 2.3 1.1 3.5 0.1 0.4 0.5 (0.2) 1.3 1.0 2.4 Corporate (3.8) (3.8) (7.6) (3.6) (3.5) (7.1) (3.5) (3.5) (7.0) (3.7) EBITDA Margin % of Fee Revenue 13% 8% 11% 13% 7% 10% 7% 8% 8% 11% Geosciences 15% 8% 12% 16% 9% 12% 7% 12% 10% 12% International Development 14% 12% 13% 14% 13% 13% 15% 9% 13% 15% Project Management 15% 12% 13% 12% 2% 7% 3% (3%) 0% 0% ¹Underlying EBITDA before one-off impairment and restructuring costs Footnote: Certain comparative data has been represented to align with the current period 13
Business Performance 14
Safety is Our First Priority 15
Safety Performance Remains On Track Coffey LTIFR* (12 Month Rolling Average) January 2011 to December 2011 3.0 2.36 2.5 2.0 1.56 1.5 1.0 0.5 0.0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 *LTIFR = Lost Time Injury Frequency Rate. 16
Ongoing Board Renewal September 2009 John Mulcahy appointed Non-executive Director October 2010 Susan Oliver appointed Non-executive Director November 2010 John Mulcahy appointed Chairman March 2011 John Douglas commenced as Managing Director Guy Cowan and Leeanne Bond appointed Non-executive Directors February 2012 Charles Jamieson AM and Stephen Williams retire as Non-executive Directors Urs Meyerhans appointed Finance Director 17
New Non-executive Directors Guy Cowan Leeanne Bond Age 60 Age 46 Committees: Committees: • Chair - Risk Committee • Member - Remuneration • Member - Audit Committee Committee Mr Cowan spent 23 years working for energy From 1996 to 2006 Ms Bond held a number of group Shell, most recently as Chief Financial roles with Worley Parsons in Queensland Officer of Shell Petroleum Inc, and CFO and including General Manager Hydrocarbons and a Director of Shell Oil Company in the USA. Development Manager (Queensland). He was CFO of Fonterra Co-operative Group Limited from Feb 2005 - Feb 2009. Ms Bond is a Non-executive Director of Liquefied Natural Gas Ltd and Australian Water Recycling Mr Cowan is a Non-executive Director of Centre of Excellence Ltd, and a Board member of Ludowici Ltd, UGL Limited, Queensland the Queensland Bulk Water Supply Authority Sugar Limited and Gold Oil PLC (UK), and (Seqwater). Chairman of the Advisory Board of Beak and Johnston Limited. 18
Overhead Salary Controlled December 2010 to December 2011 19
Falling Staff Turnover Annualised Staff Turnover Staff Turnover % February 2011 to January 2012 20
Bottom-Up Strategy Process Underway • Markets remain positive particularly in Geosciences • Further operational improvement is available • Development for key technical and managerial staff is a priority • Opportunities exist for organic growth within the existing geographic footprint • Acquisition opportunities are being monitored but are not a short term focus 21
Initial Portfolio Review Complete • LA Environments divested – June 2011 • Commercial Advisory closed – July 2011 • Middle East Projects closed – September 2011 • Rail sold for $9.0 million – February 2012 Ongoing Portfolio Review The future of Specialist Training Australia (STA) is under review in light of current exchange rates: provides less than 10% of International Development’s revenue and has low margins 22
Focused on 3 Key Businesses Fee Revenue H1 FY12 EBITDA Breakdown H1 FY12 (for continuing Businesses) (for continuing Businesses) Total: $24.3m Total: $206.0m • Geosciences ~ 1,800 employees • International Development ~1,600 employees • Project Management ~190 employees 23
Geosciences – A Well Integrated Offering A very strong Australian brand in a discipline where Australia itself, is strong 24
Geosciences – 4,000+ Active Projects, 2,000+ Active Clients 25
$m Fee Revenue $A Millions - Fee Revenue Geosciences – Fee Revenue Continues to Improve Dec-09 Jan-10 Feb-10 Geosciences Fee Revenue - Moving Annual Total Mar-10 Apr-10 May-10 Geosciences Fee Revenue – Moving Annual Total Jun-10 Jul-10 Aug-10 December 2009 to December 2011 Sep-10 Oct-10 Nov-10 Series1 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 26
Geosciences – Improving Pricing & Efficiencies Geosciences – 12 Month Moving Annual Total Fee Revenue to Wage Ratio (Pre Bonuses) Fee to Wage Ratio December 2010 to December 2011 27
Geosciences – Exposed to Good Geographies & Buoyant Sectors Fee Revenue H1 FY12 Breakdown by Geography H1 FY12 Breakdown by Sector Total: $132.4m 28
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