for personal use only - coffey · international aid work; we had a market cap of $15m • we then...
TRANSCRIPT
Agenda
• Who are we• What we do• What is our financial record• What is our strategy• What is our strategy• What is the outlook
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Who are we?
• COF is a professional services business in the engineering and project management business
• Unique multi-specialist model, as opposed to one-stop commodity shop• Market leading specialist services; but big not boutique• Operating in high demand market sectors• >4000 employees globally• >4000 employees globally• Part of ASX 300 Index; listed for 18 years; in business for nearly 50 years• Offices in more than 14 countries and operations in more than 80 countries;
46% of annualised earnings outside Australia• Diversification by service, sector and geography• Strong balance sheet with headroom in new $200m debt facility• Our vision is ‘To improve the lives of world communities’
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Operating in high demand sectors
• Infrastructure• Resources• Property• International Development• International Development
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Geographic spread - social infrastructure
and project offices in another 60+ countries
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What is our financial record?
• Built strong EBITA and eps growth over past 6 years• Forecast EBITA of $42m-$46m in FY08• Expect to be earning $6m EBITA per month ($70m pa) in
FY 09; will go close by June 08• eps growth has been a bit flat due to extra capital in Dec
2006 but has given us strong access to capital to keep growth going
• We have invested in people and systems to support business strategy
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Coffey group growth
300
400
500
600
$A m
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Coffey group revenue
0
100
200
300
2003 2004 2005 2006 2007 2008Financial year
$A m
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Coffey group operating profit and earnings per share
Operating Earnings per Share
15.0
20.0
25.0
Ear
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Operating NPAT
15.0
20.0
25.0
30.0
Op
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0.0
5.0
10.0
2003 2004 2005 2006 2007 2008
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2003 2004 2005 2006 2007 2008
0.0
5.0
10.0
15.0
2003 2004 2005 2006 2007 2008
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NP
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2003 2004 2005 2006 2007 2008
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What is our strategy?
• Until 2002 we were Australia’s leading geotechnical engineers who also did international aid work; we had a market cap of $15m
• We then planned and implemented a growth strategy• We expanded into other specialist services which have synergy to what we
do• We expanded our presence in our key sectors• We started expanding offshore• We started expanding offshore• We did this through a mix of organic and acquisition strategies • We have successfully bought and integrated over 30 companies since 2002• We raised $80m in equity in Dec 2006 to support ongoing growth• We increased our available debt from $115m to $200m in Feb 08 through
an unsecured facility with ANZ• We are now building a ‘Platform for Growth’ to support our next three year
plan from 2010-2012
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Platform for growth
• Programme to drive short-term performance and long-term growth
• Developing transformational strategy– Aligning vision, strategy, culture and operational excellence– Glue for 4000 people to global Coffey culture– Embedding these practices to provide strong foundation for
future
• Will create new structure for global expansion once strategy is confirmed
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External Outlook
• Demand from China and India still driving growth; resources sector particularly
• Infrastructure boom will continue to facilitate growing populations and many years of under-investment
• Current financial market may slow private funding to projects but still a lot of demand for services, and specialist skills more valuable when projects are under tighter financial pressurewhen projects are under tighter financial pressure
• Increased AID for developing world, and private sector seeing the economic opportunity in these markets
• World-wide skills shortage in engineering, construction and mining disciplines– Increased opportunities for consultants/outsourcing– Must invest to win the war for talent; culture an important element for
Gen Y
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Internal Outlook
• Continue journey to become a global multi-specialist consulting company– Use market leading positions to drive organic growth– Acquire to expand in new geographic locations
• Leverage the investment in corporate services with reduced rate of spendingspending
• Target cross selling opportunities by sector for larger clients• Maintain strong cash flow and keep headroom on facility for the best
opportunities• Drive financial excellence strategy to optimise fee revenue• Use platform for growth to glue everyone to Coffey’s culture for next
phase of growth in 2009-2012
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