Photo by James Ball - Coffey International Limited FY2013 Half Year Results Presentation. 11 February 2013

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1 Photo by James Ball - Coffey International Limited FY2013 Half Year Results Presentation 11 February 2013

2 Agenda Financial Performance Business Performance Outlook Presenters John Douglas Managing Director Urs Meyerhans Finance Director COF FY2013 Half Year Results Presentation 2

3 Turnaround is on track - firm foundations for growth Significant financial de-risking Revenues showing 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 Firm foundations in place for profitable growth COF FY2013 Half Year Results Presentation 3

4 FINANCIAL PERFORMANCE

5 Key metrics achieved despite some soft market conditions H H H ($m) ($m) ($m) Total revenue Fee revenue Fee revenue from continuing businesses Underlying EBITDA Underlying EBITDA from continuing businesses Restructuring costs 0.0 (1.2) (1.9) Impairment 0.0 (37.4) 0.0 Vendor earn-out 0.0 (1.6) 0.0 EBITDA (23.5) 15.9 EBIT 18.6 (28.2) 11.3 NPAT attributable to members of Coffey International Limited 4.6 (39.1) 3.7 NPAT from continuing businesses 2.4 (39.4) 3.7 EPS (Basic - cents per share) 2.8 (16.3) 1.5 ¹ Underlying EBITDA EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) before restructuring costs, impairment, and vendor earn-out ² EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation COF FY2013 Half Year Results Presentation Financial Performance 5

6 Resilient profits COF FY2013 Half Year Results Presentation Financial Performance 6

7 Positive operating cash flow $11.7m $10.8m $11.0m $13.7m $4.2m $4.6m H H H H H H H ($9.5m) COF FY2013 Half Year Results Presentation Financial Performance 7

8 Continuous debt reduction $121.2m Net Debt/ EBITDA = 3.75 Net Debt/ EBITDA $77.5m = 1.95 $66.0m Net Debt/ EBITDA = 1.66 $58.1m Net Debt/ EBITDA = 1.68 $32.3m $39.7m* $39.7m $34.5m* Net Debt Underlying EBITDA Net Debt Underlying EBITDA Net Debt Underlying EBITDA Net Debt Underlying EBITDA H H H H * Half year Underlying EBITDA is calculated as the sum of the prior 12 months EBITDA. COF FY2013 Half Year Results Presentation Financial Performance 8

9 Improved working capital position Components of change in net debt Net Debt at 30 Jun 2012 EBITDA WC Reduction WC Sales Growth Balance Sheet Movement Interest & Tax Capital Spend Net FX & Other Net Debt at 31 Dec (0.6) $'m 15.9 (5.5) (8.3) (3.9) (1.9) (58.1) (66.0) Net Operating Cash Inflow $13.7m COF FY2013 Half Year Results Presentation Financial Performance 9

10 Debt facility extended for 3 years Competitive process Term 3 years until February 2016 $149.0m Facility Limit Improved balance sheet enabled facility limit reduction to $127m $90.9m* Headroom Commercially sound financial undertakings Pricing benefits from decreasing leverage and decreased limits $58.1m Net Debt 31 December 2012 * Facility refinance in H2 reduces $90.9m headroom by $22m, reducing future borrowing costs. COF FY2013 Half Year Results Presentation Financial Performance 10

11 Reducing interest and tax H H H ($m) ($m) ($m) EBITDA 23.0 (23.5) 15.9 Depreciation and amortisation (4.4) (4.7) (4.6) Interest (9.4) (5.4) (5.3) Profit Before Taxation and Minority Interests 9.2 (33.6) 6.0 Taxation (4.4) (5.4) (2.2) Minority interests (0.2) (0.1) (0.1) NPAT 4.6 (39.1) 3.7 EPS (Basic - cents per share) 2.8 (16.3) 1.5 No interim dividend will be declared. The Board is committed to the reinstatement of dividends and will review dividends at the 2013 full year. COF FY2013 Half Year Results Presentation Financial Performance 11

1m H1 2012 H2 2012 H1 2013 Accounting Fixed Rate > Market* Market Rate Interest Expense**

12 Reduced interest costs Interest Expense $9.4m $1.6m $1.4m $5.4m $1.1m $5.3m $1.2m* * Interest rate swap entered into in 2008 matures February 2014 $6.4m $4.3m $4.1m H H H Accounting Fixed Rate > Market* Market Rate Interest Expense** **Facility refinancing secured reduction in borrowing costs COF FY2013 Half Year Results Presentation Financial Performance 12

13 EBITDA by segment H1 H2 FY H1 H2 FY H1 ($m) ($m) ($m) ($m) ($m) ($m) ($m) Fee Revenue Geosciences International Development Project Management Other Underlying EBITDA Geosciences International Development Project Management 0.7 (0.6) (0.3) (0.3) (0.8) Other (0.2) (0.5) Corporate (3.5) (3.5) (7.0) (3.7) (2.5) (6.2) (2.4) EBITDA Margin % of Fee Revenue 7% 8% 8% 11% 8% 9% 8% Geosciences 7% 12% 10% 12% 10% 11% 9% International Development¹ 15% 9% 13% 15% 12% 13% 15% Project Management 3% (3%) 0% 0% (2%) (1%) (5%) ¹International Development H1 FY13 EBITDA / total revenue margin 5.8% Note: A 4 year history is included in the Appendix COF FY2013 Half Year Results Presentation Financial Performance 13

14 BUSINESS PERFORMANCE

15 Safety is our first priority COF FY2013 Half Year Results Presentation Business Performance 15

16 Safety discipline remains strong 7.0 Coffey LTIFR* (12 month rolling average) June 2010 to December Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 LTIFR LTIFR External Safety Benchmark *LTIFR = Lost Time Injury Frequency Rate COF FY2013 Half Year Results Presentation Business Performance 16

17 Continuing to build the management team New Appointment COF FY2013 Half Year Results Presentation Business Performance 17

18 Staff turnover at long term target 13% Target Note: Excludes redundancies, retirement, business sales/closures COF FY2013 Half Year Results Presentation Business Performance 18

19 Turnaround is on track firm foundations for profitable growth Significant progress to date - financial and cultural de-risking Be the best again Safety focus and discipline in place Organisational restructure and overhead cost out completed Portfolio review completed Significant balance sheet repair Equity raising and asset sales Improved working capital management Strong cash flow performance Second refinancing completed Strengthened management team with improved commercial discipline and market responsiveness Staff turnover down to target Strong emphasis on Geosciences profitability and margin improvement Continue to build organisational capability and quality Focus our people externally Consolidate our brands Build a differentiated market position Embed new behaviours with all employees Invest in staff development Deliver organic growth within the existing geographic footprint Increase non-australian revenues Continue to strengthen the balance sheet while returning to dividend payment COF FY2013 Half Year Results Presentation Business Performance 19

20 Our businesses Fee Revenue H EBITDA Breakdown H Geosciences 65% International Development* 28% Project Management 7% Geosciences 58% International Development 42% Project Management 0% $213.2m $17.8m Employee Numbers June 2011 June 2012 December 2012 Geosciences 1,650 1,950 1,920 International Development** 1,600 1,600 1,700 Project Management Functional shared services Corporate * International Development is 42% of Coffey s total revenue ** Includes project specific contractors (1,300 contractors) COF FY2013 Half Year Results Presentation Business Performance 20

21 Geosciences - resilient revenues Fee Revenue H by Region Half Yearly Fee Revenue by Sector $137.9m APAC 86% Americas 10% Africa 2% Europe & Middle East 2% $ m $132.4m $132.6m $137.9m $117.9m $117.0m $46.3m $51.9m $49.5m $38.6m $39.8m $37.5m $39.3m $37.4m $42.0m $42.9m $26.8m $26.8m $28.1m $15.6m $19.4m $13.2m $11.7m $22.9m $20.8m $27.3m H H H H H Infrastructure Mining Oil & Gas Other * * This also contains work in the Commercial Property sector of $13.6m COF FY2013 Half Year Results Presentation Business Performance 21

22 Geosciences - margin upside Geoscience Half Yearly Underlying EBITDA Margin 15% 16% Target 8% 9% 7% 12% 12% 10% 9% H H H H H H H H H COF FY2013 Half Year Results Presentation Business Performance 22

23 International Development diverse long term revenues Operating out of three hubs: Australia, USA and UK low risk exposure Most work is with three major aid donors: AusAID, USAID and DFID Stable business with more than 180 diverse projects in over 70 countries in the developing world Many programs of a 3-5 year tenure Good success in winning work and delivering contracts in strong Australian market Meeting challenges in the US market by bidding on, and winning, more diverse projects Gaining market share in Europe and performing ahead of expectations Regional operations working together on bids to optimise project delivery and impact Clients include: COF FY2013 Half Year Results Presentation Business Performance 23

24 $ million International Development growth in the US, opportunity in the UK International Development Fee Revenue ($AUD) by Region $71.6m Impact of Tatweer Project $82.0m $80.3m $71.2m $67.5m 60.0 $54.8m $54.2m $57.1m $59.9m USA Australia UK Other H H H H H H H H H COF FY2013 Half Year Results Presentation Business Performance 24

25 Project Management business right sized for current market Fee Revenue H by Region $15.4m Australia & New Zealand 89% Africa 11% $ m $26.5m $10.8m $15.7m Half Yearly Fee Revenue by Sector $20.4m $9.6m $10.8m $19.3m $9.1m $10.2m $17.5m $12.3m $5.2m $15.4m $10.8m $4.6m H H H H H Government Private ANZ and African operations completely exited the Middle East Fixed or time based fees no development or equity risk Some impact of the Government stimulus work completing, particularly in VIC Yet to see any private sector property cycle recovery H % reduction in headcount Carefully managed to broadly deliver a break-even result for 2013 COF FY2013 Half Year Results Presentation Business Performance 25

26 OUTLOOK

27 Key businesses exposed to good diversified sectors Geosciences International Development Project Management Infrastructure Mining Oil & Gas Government Aid Government Property Private Property 12 Month Contracted Fee Revenue at June Month Contracted Fee Revenue at December 2012 $101m $90m $20m $108m $72m $18m Reduced International Development order book comes largely from the US and reflects recent uncertainty around the election and sequestration COF FY2013 Half Year Results Presentation Outlook 27

28 Outlook Revenues showing resilience despite a soft mining market Diversified revenue streams and industry exposure Expecting a stronger profit in H International Development showing steady reliable growth and consistent margins Anticipate that Projects will broadly break-even despite a tough market Geosciences faces attractive areas of growth outside mining (order book is strong). H1 restructuring will show benefits in H2 Refinancing will continue to show benefits in H2 Ongoing improvement to NPAT expected in H No interim dividend will be declared. The Board is committed to the reinstatement of dividends and will review dividends at the 2013 full year. COF FY2013 Half Year Results Presentation Outlook 28

29 Turnaround is on track firm foundations for growth Significant financial de-risking Revenues showing 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 Firm foundations in place for profitable growth COF FY2013 Half Year Results Presentation Outlook 29

30 APPENDIX

31 P&L by Segment H1 H2 FY H1 H2 FY H1 H2 FY H1 H2 FY H1 ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) Fee Revenue Geosciences International Development Project Management Other Underlying EBITDA Geosciences International Development Project Management (0.6) (0.3) (0.3) (0.8) Other (0.2) (0.5) Corporate (3.8) (3.8) (7.6) (3.6) (3.5) (7.1) (3.5) (3.5) (7.0) (3.7) (2.5) (6.2) (2.4) Underlying EBITDA Margin % of Fee Revenue 13% 8% 11% 13% 7% 10% 7% 8% 8% 11% 8% 9% 8% Geosciences 15% 8% 12% 16% 9% 12% 7% 12% 10% 12% 10% 11% 9% International Development¹ 14% 12% 13% 14% 13% 13% 15% 9% 13% 15% 12% 13% 15% Project Management 15% 12% 13% 12% 2% 7% 3% (3%) 0% 0% (2%) (1%) (5%) ¹International Development H1 FY13 EBITDA / total revenue margin 5.8% COF FY2013 Half Year Results Presentation 31

32 Stable Balance Sheet H H H ($m) ($m) ($m) Cash & equivalents Current assets (excl. cash) Non-current assets (excl. cash) Total assets Current borrowings Other current liabilities Non-current borrowings Other non-current liabilities Net assets Net debt to (Equity + Net debt) 32% 33% 30% COF FY2013 Half Year Results Presentation 32

33 Financial Results Reconciliation H H Continuing Discontinuing Total Continuing Discontinuing Total ($m) ($m) ($m) ($m) ($m) ($m) Net profit/(loss) for the year Add back: Minority interests Net interest expense Income tax (expense)/benefit Depreciation and amortisation EBITDA Add back: Restructuring costs Underlying EBITDA COF FY2013 Half Year Results Presentation 33

34 Disclaimer The material in this presentation is a summary of the Half Year Results of Coffey International Limited (Coffey) for the 6 months ended 31 December 2012 and an update on Coffey s activities and is current at the date of preparation, 11 February Further details are provided in the Company s full year accounts and results announcement released on 11 February 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. COF FY2013 Half Year Results Presentation 34

Coffey International Limited Annual General Meeting 15 October 2015

Coffey International Limited Annual General Meeting Welcome John Mulcahy Chairman Our Board of Directors From left to right: Urs Meyerhans Finance Director, Leeanne Bond, Non-executive Director, John Mulcahy