full year fy2015 financial results presentation 10 august 2015 · p&l by segment 30 * excludes...

Full Year FY2015

Financial Results Presentation

10 August 2015

Agenda

01 Financial performance

02 Business performance

2

John Douglas

Managing Director

Presenters

Urs Meyerhans

Finance Director

10 August 2015 Coffey Full Year FY2015 Financial Results Presentation

Performance, risk, quick action, opportunity

Performance

• Continuing strong safety disciplines

• Profitable FY 2014 leading to a bond issue in September (debt diversified and lengthened)

• Profitable H1 but economic and market warning signs were emerging

Risk

• Significant fall in oil price and ongoing pressure on other commodities

• East West Link cancellation, project delays related to the Queensland election result

Quick action

• April restructuring implemented quickly and effectively - substantially complete

• Strong working capital disciplines

• FY2015 financial results in line with April guidance

Opportunity

• Continuing businesses are profitable

• Significant prospective opportunities remain in Transport and Property Infrastructure

• Strengthening and lengthening order book in Project Management and International Development

3 10 August 2015 Coffey Full Year FY2015 Financial Results Presentation

Results in line with guidance Continuing businesses remain profitable


* Underlying EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) before restructure costs and impairment.

April

Guidance

($’m)

FY2015

($’m)

Continuing

FY2015

($’m)

Underlying EBITDA* 18 - 20 18.5 23.5

Restructuring costs (6 - 8) (7.9) (2.5)

Non-cash impairment (12) (12.2) -

EBITDA (0 - 2) (1.6) 21.0

Net profit after tax (16 - 18) (18.1) 5.3

01 Financial performance

Underlying profitability in difficult markets


FY2014

($’m)

FY2015

($’m)

Continuing

FY2015

($’m)

Total revenue 628.1 579.1 559.2

Fee revenue 381.0 373.0 357.0

Underlying EBITDA 26.2 18.5 23.5

Restructuring costs (2.5) (7.9) (2.5)

Non-cash impairment - (12.2) -

EBITDA 23.7 (1.6) 21.0

EBIT 14.5 (10.8) 12.4

Net profit after tax 4.4 (18.1) 5.3

Resilient portfolio


7

Operating cash flow supports restructure activities


Improved working capital days - 53 days at June 2015 vs. 54 in June 2014

Debt tightly controlled


• Coffey Bond matures September 2019. Banking facility re-negotiated to September 2017

• Each 1c decrease / increase in the AUD against the USD increases / decreases debt by

approximately $0.4m

• AUD devaluation increased total debt by $8.1m from June 2014 to June 2015 due to revaluation

Positive NPAT from continuing businesses


FY2014

($’m)

FY2015

($’m)

Continuing

FY2015

($’m)

EBITDA 23.7 (1.6) 21.0

Depreciation and amortisation (9.2) (9.2) (8.6)

Interest (8.1) (8.0) (8.0)

Profit before taxation and minority interests 6.3 (18.8) 4.4

Taxation (1.9) 0.8 1.0

Net profit after tax 4.4 (18.1) 5.3

The Board has not declared a dividend for FY2015

02 Business performance


12

Safety and security is our first priority Disciplines remain strong

Recent changes implemented quickly and efficiently

• Exited our permanent presence in Canada

– Calgary business became unsustainable at low oil prices

– Toronto lacked scale on its own

– Still working with partners on a major LNG project in British Columbia

• Refocused mining strategy

– Exited exploration management and resource delineation practices in Western Australia,

South America, and Ghana

– Business now focused on mid to late stage operational support to key clients

• Consolidated and refocused management structure to support emerging opportunities in

Transport Infrastructure

• Reduced Australian staff numbers to match capacity to markets


13

10 August 2015 14

Investing in our future Unlocking the value of our data

Investing in digital transformation

Coffey Full Year FY2015 Financial Results Presentation

High value client experience

Maintaining diversified revenues


15

People Managing capacity while building capability


16

• Geoservices headcount reduced by 360

– 210 staff in discontinued operations in H2 FY2015

– 150 staff in continuing operations

• Geoservices headcount includes 170 casual or contracted employees.

• International Development headcount includes 1,500 contracted employees.

Geoservices Still a tough year in Australia


17

Geoservices total revenue comprises Fee Revenue (H2 FY2015 $84.4m) and Reimbursable

Revenue (H2 FY2015 $25.2m)


18

Geoservices Diversified industry approach continues

Geoservices total revenue comprises Fee Revenue (H2 FY2015 $84.4m) and Reimbursable

Revenue (H2 FY2015 $25.2m)

Geoservices Margins remain a challenge


19

Geoservices Contracted revenue shows further decline


20

Significant Transport Infrastructure opportunities in markets where our brand and reputation is strong


21

Property Infrastructure also very prospective


22

Project Management Ongoing profitability


23

Project Management Growing order book


24

International Development Revenues flat but good outlook


25

International Development Order book strengthening and lengthening


26

• Total contracted revenue has increased $185m since June 2014.

• Devaluation of the AUD against the USD and GBP has increased the contracted revenue value by $49m from June 2014.

International Development Stable margins within target range


Performance, risk, quick action, opportunity

Performance

• Continuing strong safety disciplines

• Profitable FY 2014 leading to a bond issue in September (debt diversified and lengthened)

• Profitable H1 but economic and market warning signs were emerging

Risk

• Significant fall in oil price and ongoing pressure on other commodities

• East West Link cancellation, project delays related to the Queensland election result

Quick action

• April restructuring implemented quickly and effectively - substantially complete

• Strong working capital disciplines

• FY2015 financial results in line with April guidance

Opportunity

• Continuing businesses are profitable

• Significant prospective opportunities remain in Transport and Property Infrastructure

• Strengthening and lengthening order book in Project Management and International Development


04 Appendix

P&L by segment

30

* Excludes Inter-segment sales


2015

H1 H2 FY H1 H2 FY H1 H2 FY

($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m)

Total revenue 324.0 304.1 628.1 296.0 283.1 579.1 284.5 274.7 559.2

Geoservices* 141.1 123.5 264.6 130.0 109.6 239.6 118.5 101.2 219.7

Project Management* 14.7 12.4 27.1 13.2 10.9 24.1 13.2 10.9 24.1

International Development* 168.2 168.2 336.4 152.8 162.6 315.4 152.8 162.6 315.4

Other - - - - - - - -

Geoservices total revenue 141.1 123.5 264.6 130.0 109.6 239.6 118.5 101.2 219.6

Fee Revenue 110.4 97.9 208.3 101.6 84.4 186.0 92.9 77.1 170.0

Reimbursable Revenue 30.7 25.6 56.3 28.4 25.2 53.6 25.6 24.1 49.7

Underlying EBITDA 15.1 11.1 26.2 10.4 8.1 18.5 14.3 9.3 23.5

Geoservices 7.5 3.8 11.3 2.9 2.1 5.0 6.8 3.3 10.1

Project Management 0.3 0.5 0.8 1.5 0.5 2.0 1.5 0.5 2.0

International Development 9.8 9.3 19.1 8.4 7.9 16.3 8.4 7.9 16.3

Other - - - - - - - -

Corporate (2.5) (2.5) (5.0) (2.4) (2.4) (4.8) (2.4) (2.4) (4.8)

Margin % of total revenue 5% 4% 4% 4% 3% 3% 5% 3% 4%

Geoservices 5% 3% 4% 2% 2% 2% 6% 3% 5%

Project Management 2% 4% 3% 11% 5% 8% 11% 5% 8%

International Development 6% 6% 6% 6% 5% 5% 6% 5% 5%

Geoservices margin % of fee revenue 7% 4% 5% 3% 2% 3% 7% 4% 6%

2014 Continuing 2015

Revenue analysis


H1 H2 FY H1 H2 FY H1 H2 FY

($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m)

Geoservices fee revenue by industry 110.4 97.9 208.3 101.6 84.4 186.0 92.9 77.1 170.0

Transport infrastructure 40.3 34.7 75.0 36.9 27.8 64.7 34.3 25.6 59.9

Property infrastructure 13.8 14.7 28.5 17.0 19.3 36.3 14.4 17.1 31.5

Oil & Gas 26.3 23.7 50.0 24.8 19.4 44.2 23.1 18.0 41.1

Mining 23.0 16.3 39.3 14.5 14.5 29.0 12.7 13.0 25.7

Other 7.0 8.5 15.5 8.4 3.4 11.8 8.4 3.4 11.8

Geoservices fee revenue by geography 110.4 97.9 208.3 101.6 84.4 186.0 92.9 77.1 170.0

Australia 79.4 68.7 148.1 74.1 63.1 137.2 73.0 62.2 135.2

International offices 31.0 29.2 60.2 27.5 21.3 48.8 19.9 14.9 34.8

Project Management revenue by client 14.7 12.4 27.1 13.2 10.9 24.1 13.2 10.9 24.1

Government 9.8 8.7 18.5 10.0 8.4 18.4 10.0 8.4 18.4

Private 4.9 3.7 8.6 3.2 2.5 5.7 3.2 2.5 5.7

International Development revenue by client 168.2 168.2 336.4 152.8 162.6 315.4 152.8 162.6 315.4

United States of America (MSI) 76.4 73.9 150.3 68.8 65.9 134.7 68.8 65.9 134.7

Australia 54.9 59.8 114.7 56.0 66.3 122.3 56.0 66.3 122.3

United Kingdom 28.4 28.6 57.0 28.0 30.4 58.4 28.0 30.4 58.4

Discontinued businesses 8.5 5.9 14.4 - - - - - -

Continuing 201520152014

Balance sheet


H1 2014 FY14 H1 2015 FY15

($m) ($m) ($m) ($m)

Cash & equivalents 28.1 28.9 29.8 28.4

Other current assets 132.2 116.3 116.3 102.1

Non-current assets 159.0 165.5 170.3 160.5

Total assets 319.3 310.7 316.4 290.9

Current borrowings 6.0 7.1 7.8 10.8

Other current liabilities 83.0 81.7 71.1 63.0

Non-current borrowings 81.3 69.9 83.0 80.0

Other non-current liabilities 8.4 11.7 13.4 13.4

Total liabilities 178.7 170.4 175.3 167.2

Net assets 140.6 140.3 141.1 123.8

Net debt to (Equity + Net debt) 30% 26% 30% 34%

Disclaimer

33

The material in this presentation is a summary of the Full Year Results of Coffey International Limited (Coffey) for the

12 months ended 30 June 2015 and an update on Coffey’s activities and is current at the date of preparation,

10 August 2015. Further details are provided in the company’s full year accounts and results announcement released on

10 August 2015.

No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information conta ined in this presentation, including the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, return s 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 caus e the actual results or performance of Coffey to be materially different from any future results or performance expressed or im plied 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 rel ied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situat ion 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 ar ising 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 histor ical 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 .


http://www.coffey.com/

http://www.coffey.com/

full year fy2015 financial results presentation 10 august 2015 · p&l by segment 30 * excludes...

Documents