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RBS Morgans Perth Business Breakfast 2012 Presenter: Andrew Buckley Managing Director

Cardno Overview

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> Cardno (ASX:CDD) is a professional infrastructure and environmental services company, with specialist expertise in the development and improvement of physical and social infrastructure for communities around the world. Cardno’s team includes leading professionals who plan, design, manage and deliver sustainable projects and community programs.

> Cardno is listed on the ASX and has a market capitalisation of around $950 Millions.

> Cardno was founded in 1945 in Brisbane, Australia and has grown to have more than 6,500 staff in over 250 offices working on projects in 85 countries.

> Since listing Cardno has delivered 7 consecutive years of record NPAT and Earnings Per Share (EPS) growth.

RBS Morgans Business Breakfast, Perth - April 2012 Slide 2

> Record first half profit of $36.1 up by 13.9% on previous corresponding period (pcp).

> Record EBITDA of $62.5m up 12.3% on pcp.

> Earnings per share (EPS) up 5.6% to 32.7 cents.

> Dividends up to record 18 cents, 70% franked.

> Strong cash flow $47.3 million up 18.7% on pcp.

> Strong balance sheet - net debt / equity: 23% (pre ATC).

> Strong first half reflecting: • contribution from new merger partners • contribution from the environmental business in the U.S. • improving performance across the business

> Announced acquisition of ATC Associates and A$111m capital raising on 6 February 2012 completed March 2012.

Cardno Highlights – December 2011 Half Year


Cardno Highlights (cont’d) > Organic Growth for half year is 7.5% on pcp after normalising for the emergency response

phase of work in the Gulf of Mexico.

> Diversification has continued in FY11 and FY12 with acquisitions in the:

• growing environmental sector in the USA (Cardno JF New, Cardno TEC, Cardno ATC)

• construction materials testing (Cardno Roadtest)

• geotechnical and environmental in Australia (Cardno Roadtest, Cardno Lane Piper, Cardno Geotech Solutions)

• electrical engineering (Cardno BEC)

• town planning sector (Cardno HRP)

> Cardno’s strategy and vision is to continue to grow and become a world leader in the provision of professional services to improve the physical and social environment.


Diversified revenue streams

38.5%

52.4%

9.1%

FEE REVENUE BY OPERATING SEGMENT (PROFORMA including ATC)- HY 2012

Professional services Australia & NZ

Professional services Americas &Software

International Development assistance

38.5%

4.9%

55.0%

1.6%

FEE REVENUE BY GEOGRAPHIC REGION (PROFORMA including ATC)- HY 2012

Australia & NZ

Asia Pacific

Americas

UK & Africa


Diversified revenue streams

8.2% 1.4%

41.2%

9.1% 3.4%

5.2%

16.4%

12.8% 2.3%

FEE REVENUE BY MARKET SECTOR (PROFORMA including ATC)- HY 2012

Buildings

Coastal & Ocean

Environment

Emerging Markets

Management Services

Resources, Mining and Energy

Transportation

Land

Water

4.0%

17.5%

6.8% 0.9%

8.7%

5.2% 8.8%

20.8%

27.3%

FEE REVENUE BY CLIENT (PROFORMA including ATC)- HY 2012

Aid agencyContractor/Service providerDeveloperGovernment owned corporationGovernment - FederalGovernment - LocalGovernment - StateOther clientsResources, mining & energy


Cardno Lane Piper Cardno Lane Piper is a 40 person environmental and geotechnical engineering firm based in Melbourne, Australia. The acquisition is expected to contribute approximately $6.5 million in revenue and $1.2 million in EBIT in FY12. Cardno Lane Piper has become part of Cardno ERI and was effective September 2011. Cardno Geotech Solutions Cardno Geotech Solutions is a 22 person geotechnical engineering, environmental and construction materials testing firm based in Newcastle, New South Wales. The acquisition will add revenues of around $2 million per annum. Cardno TEC Cardno TEC is a 330 person full service environmental and engineering consulting firm headquartered in Charlottesville, Virginia, with 15 mainland U.S. offices and 5 off-shore offices including Hawaii, Guam, Germany, Belgium and Italy, founded in 1990. Cardno TEC is expected to contribute approximately US$52 million in revenue and US$7.2 million in EBITDA over the next 12 months. Cardno TEC’s backlog is in excess of US$70 million which is an all time high.

Cardno HRP Cardno HRP is a 62 person town planning consultancy based in Brisbane, Queensland. The acquisition includes the Chenoweth Environmental Planning & Landscape Architecture (CEPLA) business which is a subsidiary of HRP. Cardno HRP is expected to contribute approximately $11 million in annual revenue and $3 million in EBIT and be earnings per share accretive in FY12.

Recent Acquisitions


Recent Acquisitions (cont’d) - ATC Associates Inc.

> Cardno has agreed to acquire ATC for US$106m.

> ATC is expected to earn fee revenue of around US$130m and EBITDA of US$16m in its financial year ending February 2012.

> ATC is a leading provider of environmental, building sciences, geotechnical, construction materials testing and other consulting services.

> Around 1,600 employees providing services to approximately 2,200 customers via 71 branches in 39 states across the USA.

Acquisition of one of the leading environmental consulting companies in the USA. Acquisition

Strategic Rationale > Strong strategic fit with Cardno operating model and growth strategy. > Increased leverage to growing USA economy. > Attractive and growing market segment with the USA environmental industry expected to

grow with increased regulation and enforcement. > Strengthens Cardno’s environmental offering and presence as well as increased

diversification to new sectors in the USA.

Funding > ATC funded in part through underwritten placement and rights issue. > Cardno debt facilities restructured in December 2011, with limit increased to A$265m and term

extended. > Maintains balance sheet strength and flexibility for future growth.


Strategic Rationale for ATC Acquisition

> Strong strategic fit with Cardno growth model.

> Increased leverage to growing USA economy.

> Attractive and growing market segment with the USA environmental industry expected to grow with increased regulation and enforcement.

> Strengthens Cardno’s environmental offering and presence as well as increased diversification to new sectors in the USA (geotechnical and construction material testing (CMT), building sciences, construction management services and training).

> Broader client base in the USA.

> Broader geographic coverage across the USA.


Strategy


Cardno Strategy > Combine organic growth and M & A to become a world leader in our industry.

> Build recurring revenue streams through cross selling.

> Focus on strengthening core disciplines through strategic acquisitions and organic growth.

> Sustain historically high retention of principals.

> Foster/encourage high employee shareholding to incentivise performance and align interests of employees and shareholders.

> Maintain risk-adverse balance between major and smaller projects.

> Continued diversification strategy – both geographical and market sectors.


Merger & Acquisition Strategy

Business Unit & Division Structure – competitive advantage to attract merger partners

• Brand Integration • Accounting and job cost integration • Focus on knowledge sharing and cross sell • Successful track record • Potential cost synergies • Operating systems

• Complementary businesses with new geographical and/or skills coverage and good cultural fit • Minimal overlap with existing businesses • Focus on retention of staff • Effective acquisition process with robust due diligence • Focus on adding value through cross selling and organic growth

Growth and Diversification Objective

Continuous Integration of New Partners

Cardno’s Merger and Acquisition strategy works


Strategy “One Cardno, One Vision”

> Cardno operates on a 5 year Strategic Planning cycle

> Current plan is the 2010 – 2015 plan

> Theme of the current plan is: “One Cardno, One Vision”

> The focus is to continue to: • Grow Cardno significantly through to 2015 • Increase benefits from ongoing integration • Foster cross selling • Cut overhead costs • Aim for audacious growth targets • Broadly increase our profile


“Cross selling”

> Cross selling involves one part of Cardno using their access to a client to sell another Cardno service

> Incentive is to: • Improve / strengthen client relationships • Increase returns for both business units • Increase overall Cardno performance (all managers are shareholders)

> Main strategy is to increase knowledge of the breadth of services > Most Cardno clients need a range of infrastructure services > There are many examples of successful cross selling across Cardno

Strategy


> Cardno team initially involved in: • Services relocation design • Traffic management • Landscape architecture

> Further cross sold services include: • Utilities location work for Cardno AUS • Structural review work • Environmental services • Marine Structures advice • Building Services scope for Cardno ITC

> Potential for future cross selling as required by client (MacDow)

Gold Coast Light Rail

Cross selling examples


Strategy

South America Petrochemical Site Remediation

> Cardno ERI has led the Cardno Team on remediation of retail sites in Ecuador and Colombia

> Cardno ENTRIX has provided the local presence allowing us to win the work

> Cardno ENTRIX is providing local support from Quito, Ecuador

> Cardno TBE is providing utilities location work

Cross selling examples


Strategy

Strategy Case Study – Cross Sell Training Knowledge Sharing • Knowledge sharing underpins cross selling • Cardno Intranet incorporates Knowledge

Bank • Cardno management conferences are held

regularly with international managers attending

• Cardno operates a trade show at the managers’ conference encouraging all managers to develop their knowledge of our services


Integration of M&A Partners > Brand

• Co-brand initially • Shift goodwill towards Cardno • Drop the co-branding in 3-5 years.

> Systems • New partners immediately adopt authority levels and risk management systems • Management reporting is rigorous from day one • Accounting systems are generally adopted within 12 months • After 3 years the partner has been integrated into Cardno’s business structure • After 5 years the business becomes largely indistinguishable from the rest of

Cardno

Strategy


Integration Case Studies Cardno ERI – U.S.A.

> ERI was acquired in 2010FY bringing environmental remediation skills to Cardno > Co-branded Cardno ERI in 2011FY > Integrated to Cardno risk management immediately after acquisition > Moving onto Cardno accounts systems now > Move to Cardno brand ≈ 3 years > Bob Kroeger now Americas Region Operations Manager > All key Principals still on board > Extensive cross selling is underway > Infill merger with Cardno Lane Piper

Strategy


Indicative Projects


Cardno BEC: The A$22 million project will see Cardno BEC (Cardno’s electrical engineering business), involved in a major upgrade to the electrical and controls system infrastructure at Rio Tinto’s iron ore mines Tom Price, Paraburdoo and Channar in Western Australia’s Pilbara region.


Gold Coast Rapid Transit project, Queensland, Australia (artists impression) – Cardno is providing multi-disciplinary services to McConnell Dowell for Stage 1 of the Gold Coast’s major 13 kilometre light rail corridor. As Queensland’s first light rail system, the Gold Coast Rapid Transit project will provide residents with a world-class public transport network which will generate a number of social, environmental and economic benefits for the city.


Legacy way Tunnel Project - A 4.6km long, AU$1.5billion tunnel project will transform the Queensland capital city of Brisbane by linking the city’s western and inner-northern suburbs. Constructed by Transcity JV (Acciona, BMD and Ghella) for Brisbane City Council, the design for the Legacy Way Tunnel is made up of a Design Alliance, with Cardno contributing a third of the design resources, including key staff in the Civil, Traffic, Hydrology, Structural, Environment, Geotechnical and M&E teams. Construction of Legacy Way began in April 2011 and will continue until December 2014.


Cardno Emerging Markets Regions (EMR) - Australia-Africa Partnerships Facility: Cardno launched AusAID’s largest project in Africa, with the intent to engage all 54 countries in the continent to advance sustainable, country-led development by placing specialists and volunteers to work alongside and mentor government officials; facilitating partnerships between Australian and African organisations; conducting training programs; providing grant funding for activities implemented by NGOs; and sponsoring joint research.


Cardno Emerging Markets Regions (EMR) - Value Girls, Kenya As implementer of the Value Girls Program, Cardno is improving the social and economic well being of girls, aged 14 - 24, in the Nyanza and Western provinces of Kenya. The program is a 4 year, Nike Foundation and USAID-funded initiative to integrate the girls into high-return segments of the poultry and vegetable industries and raise their profile in their communities by strengthening life skills, improving overall confidence, protecting their assets, and providing structured opportunities for mentoring, safe spaces, and social networks. As of September 2011, the program has recruited 1,204 girls from 41 communities. Of the girls currently undertaking business enterprises, 70% are involved in raising chicks and 30% are involved in farming. Over 650 girls have been trained in group management, business management, and financial literacy and nearly 250 mentors from the communities are working with the girls.


Cardno ENTRIX: Keystone and Keystone XL Pipelines (Client: US Department of State and TransCanada) - Cardno ENTRIX is the prime contractor for the preparation of two third party EIS’s for the US Department of State and TransCanada Keystone Crude Oil Pipeline System. The project features 1,702 miles of new, 36-inch diameter pipeline (327 miles in Canada and 1,375 miles in U.S.) with capacity for 900,000 barrels per day. Cardno ENTRIX is preparing two Environmental Impact Statements (EIS) and Presidential Permits for international border crossing under the direction of Department of State and Department of Energy.


Cardno ATC: Maynard H. Jackson, Jr. International Terminal Hartsfield Jackson Atlanta International Airport Atlanta A 1,200,000 square foot new terminal and concourse building on the east side of the existing airport. The US$1.6 billion project includes 12 new international gates, new customs areas, new ticketing counters, extension of the Automated People Mover (APM) system to connect with the remainder of the airport, a new parking deck, and new access roads to connect with Interstate 75.


Cardno ATC: ATC Associates was awarded the contract to provide comprehensive industrial hygiene and consulting services for the 3-year, $850 million transformation of the historic 1.0M square foot Madison Square Garden Arena in New York City. The Madison Square Garden Transformation includes concurrent interior demolition and new construction both in-season while occupied and during dedicated dark times where the arena is vacant.


Cardno ATC & United Nations. Cardno ATC was selected to provide environmental consulting services for the renovation, demolition and upgrade of the United Nations building in New York City. The project encompasses entire complex of seven buildings (five million square feet).


Cardno ATC: New York City Transit Authority - On-Call Term Contract, Planned and Emergency Response Hazardous Waste Management. As the MTA NYCT Office of System Safety’s representative on-site, Cardno ATC provides staffing and oversight during hazardous material removal projects and emergency response work orders, from the contractor mobilization of the project site, during the abatement operation, through final clean-up and certification of completion. Cardno ATC ensures that the abatement work is performed in compliance with technical specifications.


Cardno TEC: EIS for Guam and CNMI Military Relocation: A high-profile EIS for largest DoD construction program in NAVFAC Pacific AOR. US$26 Million NEPA document. Dozens of supporting engineering studies including: Berthing Study, Dredging Study, Utilities, Cultural Surveys and Coral Reef Impact Study.


Cardno TEC is one of the leading environmental consultants for the Navy, USMC, and Air Force for JSF and other new high-profile weapons platform impact analyses. Separate multi-million dollar environmental impact statements. Utilizing company-wide staff resources. Expecting additional project work for USMC JSF in the near future.


Outlook


2012 Outlook

> Global market conditions continue to improve but slower than expected.

> U.S. economy now definitely improving.

> Project pipeline (WIH) of $535m at 31 December 2011.

> Additional growth via organic expansion and acquisitions which further strengthen core competencies.

> Well positioned with strong cash and low gearing, balance sheet ready for further growth.

> Strong pipeline of potential M & A opportunities in North America and Australia.

> Returns from U.S. environmental acquisitions increasing with addition of ATC.

> Increased focus on mining and resources will further aid growth.


“Cardno’s vision is to be a world leader in the provision of professional services

to improve the physical and social environment.”


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