Coffey Investor Presentation FY08_vFINAL NN 3 [Read

Transcription

For personal use only
COFFEY INTERNATIONAL LIMITED
Results - 12 months ended 30 June 2008
28 August 2008
Agenda
•
•
•
•
•
Key highlights
Financial performance
Operational review
Strategy & outlook
Q&A
2
Key highlights
Roger Olds, Managing Director
Business highlights
• Strong organic and acquisition growth
• Strong operating cash flow
• Grown our specialist business model – size, geographies, markets,
client base
– successfully acquired & integrated businesses in Brazil
(Geoexplore), USA (MSI) and Canada (Shaheen & Peaker)
– expanded into rail, infrastructure transaction advisory, sporting
infrastructure and mining
• Finance system and controls resolved
• Strong balance sheet and new debt facility
• Current operating performance in line with 3 year plan from 2005
4
Results highlights
• Total revenue up 54.0% to $558.6m
• Fee revenue up 33.6% to $376.6m
• Operating EBITA* up 70.1% to $43.2m
• NPAT* up 59.0% to $22.9m
• EPS* up 30.0% to 20.8 cents per share
• DPS up from 15cps to 16cps fully franked
• Operating cashflow up from $6.2m to $58.6m
* Pre vendor earn-out & share-based payment expense (“pre VEO & SBP”)
5
Financial performance
Debbie Goodin, Acting Chief Financial Officer
Financial management overview
• The accounts are fully reconciled
– FY07 and 1HFY08 accounts restated as outlined in appendix
• Improved financial management
– Working capital improvement
– Strengthened finance team; corporate and in businesses
– Continued finance training in the businesses
• New auditor appointed:
– Tender process to appoint auditor undertaken September 2007
– KPMG appointed in November 2007
– Extended audit scope this year to increase level of assurance
7
Financial results overview
12 months to 30 June
($m)
2008
2007
change
Revenue from continuing operations
558.6
362.7
↑ 54.0%
Fee revenue
376.6
281.9
↑ 33.6%
43.2
25.4
↑ 70.1%
4.9
3.8
↑ 28.9%
38.3
21.6
↑ 78.6%
Net interest
7.9
4.9
↑ 61.2%
Amortisation
3.3
3.2
↑ 3.1%
PBT
27.2
13.5
↑ 101.5%
Income tax expense & minority interests
11.9
5.1
↑ 133.3%
NPAT (post VEO & SBP)
15.3
8.4
↑ 82.1%
NPAT (pre VEO & SBP)
22.9
14.4
↑ 59.0%
Earnings per share (basic) (NPAT (pre Amort, VEO & SBP))
20.8
16.0
↑ 30.0%
Operating EBITA (pre VEO & SBP)
Vendor earn-out & share-based payment expense
Operating EBITA (post VEO & SBP)
8
T
&
T
p.
*
P)
22.9
NP
A
ex
SB
ta
x
25
FY
08
BP
or
t.
/S
Am
e
ns
e
12.2
io
n
(p
re
xp
e
In
co
m
nt
er
es
te
35
Am
or
tis
at
NP
A
h
11.2
FY
08
et
I
gr
ow
t
th
ex
pe
ns
es
IT
A
up
EB
gr
ow
30
N
ic
IT
A
P)
40
G
ro
O
rg
an
SB
ex
p.
T
6.0
on
&
BP
or
t.
EB
Am
an
ic
(p
re
O
rg
T
/S
NP
A
10
NP
A
io
n
FY
07
$m 20
N
FY
07
Am
or
tis
at
Change in NPAT
(5.1)
(3.0)
(6.8)
(7.6)
15
14.4
15.3
8.4
5
0
*Less minority interest in Duncan Rhodes $0.6m
9
Revenue up 54.0% to $558.6m
Total revenue
600
558.6
96.1
500
CAGR 48.7%
$m 300
200
100.5
362.0
400
251.9
170.0
• 54.0% revenue growth
– 27.7% organic growth
– 26.3% acquisition growth
• Strong growth in all divisions
• CAGR over past 3 years of
48.7%
362.0
131.3
100
0
FY04
FY05
Organic Growth
FY06
FY07
FY08
Non Organic Growth
10
Operating EBITA* up 70.1% to $43.2m
Operating EBITA*
43.2
50
45
CAGR 38.3%
40
8.5
35
30
22.4
$m 25
9.3
16.3
20
15
25.4
11.5
25.4
10
5
0
FY04
FY05
Organic Growth
FY06
FY07
FY08
• 70.1% EBITA* growth
– 36.4% organic growth
– 33.7% acquisition growth
• Growth in margins achieved by:
– Improved contribution from
Coffey International
Development
– Improved pricing
– Increased efficiency
• CAGR over past 3 years of
38.3%
Non Organic Growth
* Pre VEO & SBP
11
Operating EBITA to cash flow reconciliation
100
90
80
70
60
$m 50
40
30
20
10
0
7.2
29.8
9.6
(4.6)
(27.5)
0.9
58.6
43.2
Operating
EBITA
Increased
Improvement WIP + Debtor Increased
Increased
Increased
Creditors from
in creditor
improvement Creditors from WIP+Debtors WIP+Debtors
$100.5m
days 34.9 to
ex
acquisitions
from
from $100.5m
organic
35.8 days
acquisiitons
acquisitions
organic
revenue
from 100 to 79
revenue
growth @34.9
days (Jun 07 growth at 100
days
Jun 08)
days (Jun 07)
Operating
cash flow
12
Strong growth in operating cash flows
($m)
2008
2007
change
Cash flow from operating activities:
•
•
Operating cash flow
58.6
6.2
↑ 52.4
Interest and tax
(22.9)
(13.6)
↑ 9.3
35.7
(7.4)
↑ 43.1
Acquisitions
(53.0)
(40.7)
↑ 12.3
Property, plant & equipment / other
(13.2)
(9.1)
↑ 4.1
(66.2)
(49.8)
↑ 16.4
Share issues
1.2
76.9
↓ 75.7
Dividends
(15.6)
(10.3)
↑ 5.3
Net change in debt
84.8
(5.6)
↑ 90.4
Net cash inflow (outflow) from financing activities
70.4
61.0
↑ 9.4
Net increase in cash held
40.0
3.7
↑ 36.3
Net cash (outflow) inflow from operating activities
Cash flow from investing activities:
Net cash (outflow) from investing activities
Cash flow from financing activities:
•
•
Significant increase in
operating cash flow
Improvement in working
capital by 21.9 days
Increase in debt due to
acquisition funding
Net cash of $2.6 million
returned from acquired
balance sheet due to
improved cash
management
13
Strong balance sheet
As at 30 June
($m)
2008
Total Cash
•
2007
52.4
14.6
Foreign currency denominated debt (A$
equivalent)
35.2
-
A$ denominated debt
111.1
60.7
146.3
60.7
Net Debt
93.9
46.1
Debt Facilities undrawn
44.5
54.3
196.1
177.6
% of debt at fixed rate
70%
-
% of debt at floating rate
30%
100%
Net Debt to Equity
47.9%
26.0%
Net Debt to Capital
32.4%
20.6%
5.5
5.2
Total Debt
Equity
•
Gearing remains at conservative
levels
New debt facilities put in place in
February 2008 increased facility
size from $115m to $200m
Debt Facilities:
Interest Cover (EBITA pre VEO & SBP)
14
Dividends per share
13.0
8.0
8.8
7.0
6.2
7.0
FY08
3.5
2.6
FY04
Dividend payout ratio* (interim + final)**
7.0
5.0
Interim Dividend
Total annual dividend paid ($m)***
9.0
8.0
10.5
FY07
•
16.0
15.0
FY06
•
18
Total dividend paid has
16
consistently grown over the past 5 14
12
years to $19.1m
10
cps
8
Average dividend payout ratio
6
FY07 to FY08 – 85.3%
4
2
Average dividend payout ratio
0
FY04 to FY06 – 65.3%
FY05
•
FY04
Dividends
Final Dividend
FY05
FY06
FY07
FY08
9.0
9.0
9.9
16.5
19.1
67.2%
60.5%
68.3%
93.7%
77.0%
Average payout ratio or period
65.3%
85.3%
*60-80% of NPAT (pre amortisation, vendor earn-out and share-based payment expense)
**Special dividends which have not been included in the above were paid in FY04 (6 cps) &
FY05 (2 cps)
*** The dividend reinvestment plan was activated for FY04, FY05, FY06 & FY07
15
Summary – financial performance
• Improved fee margins with EBITA/fee revenue up from 9.0% to
11.5%
• Strong growth in operating EBITA, up 70.1%
– (CAGR 38.3% over past 3 years)
• Strong operating cash flow
• Strong growth in NPAT (pre amortisation, VEO & SBP), up 59.0%
– (CAGR 27.1% over past 3 years)
• Strong balance sheet
• Final dividend 9cps; full year 16cps (100% franked)
– Payout ratio over the past 2 years of 85.3% of operating NPAT
(pre amortisation & SBP)
16
Operational review
Roger Olds, Managing Director
Divisional analysis
Operating EBITA (pre vendor earn-out
& share based payments)
($m)
Consulting
International Development
Projects
Corporate
Total
Fee Revenue
Fee Margin
2008
2007
change
2008
2007
2008
2007
45.7
30.3
↑ 50.8%
251.3
159.1
18.2%
19.0%
8.1
1.5
↑ 440%
65.5
68.7
12.3%
2.2%
10.0
8.0
↑ 25.0%
59.8
54.1
16.7%
14.8%
(20.6)
(14.4)
↑ 43.1%
-
-
-
-
43.2
25.4
↑ 70.1%
376.6
281.9
11.5%
9.0%
18
Consulting – key highlights
Another year of strong growth. Consulting EBITA up 50.8% to $45.7m
•
Operating EBITA*
50
45.7
45
CAGR 47.3%
40
35
•
30.2
30
$m 25
20.8
20
14.3
15
10
•
9.5
5
0
FY04
FY05
* Pre VEO & SBP
FY06
FY07
FY08
•
Coffey Environments
– Expansion of capabilities across waste
management, hazardous material services,
US remediation engineering, energy and
greenhouse gas management
Coffey Natural Systems
– Became a national company in February
2008
– Significant projects from clients including
Tarong Energy, Exxon Mobil, Teck Cominco,
Atlas Iron, Marengo Mining
Coffey Geotechnics
– Key wins across land & marine geotechnical
and hydrogeological studies (Rio Tinto –
Weipa & Hunter Valley), testing (Ballina
bypass) and geotechnical design (M80 Glasgow, UK)
– Acquisition in Canada (Shaheen & Peaker)
Coffey Mining
– Acquisition in Brazil (Geoexplore)
– Significant projects from clients including BHP
Billiton, Newcrest and Votorantim
19
Consulting – key highlights (cont.)
•
•
•
APR
– VicTrack level crossings upgrade
– Recruitment of new staff to extend and broaden capabilities
Stratcorp
– Further growth and long-term contracts with the AFL & clubs, A-league,
AJC, NSW & Vic Govt.’s
Peron
– Major projects work with Vic & QLD Govt.’s
20
International development – key highlights
An exceptional year. International development EBITA up 440% to $8.1m
•
Operating EBITA*
9
8.1
CAGR 28.5%
8
7
6
$m
5
4.6
•
3.8
4
3.0
3
•
1.5
2
•
1
0
FY04
FY05
* Pre VEO & SBP
FY06
FY07
FY08
•
Key wins in FY08 include:
– Asia /Pacific: Enterprise challenge
fund, USAID
– Europe / Africa / Middle East: Iraq
technical support initiative and UAE
challenge fund
– Americas: CIMIENTOS (Columbia),
USAID (Sudan)
Acquisition of MSI in USA advanced our
globalisation and added to EBITA growth
All geographies have increased profit
contribution over the past year
New 5 year training contracts in the
Middle East will be cash positive from the
start
Future growth in Coffey International
Development EBITA to be supported by
Middle East contracts and a full year of
MSI
21
Project management – key highlights
A strong performance. Project management EBITA up 25.0% to $10.0m
Operating EBITA*
•
Key wins in FY08 include:
– Department of Justice state coronial
services centre (Australia)
– Geelong Football Club Skilled
Stadium redevelopment
– Woodside, BHP & Rio Tinto projects
– Australian Jockey Club master
planning for Randwick and Warwick
farm racecourse
– SBSA Samrand Standard Bank
(South Africa)
– Nedbank phase II (South Africa)
– Marina Bay Sands (Singapore)
•
•
•
•
Coffey Projects now fully integrated
Acquisition of John Wertheimer Consultants
Opened office in Singapore
Good contributions from Middle East, South
Africa & New Zealand
12
10.0
10
8.0
8
$m 6
4
2.6
2
0
FY06
* Pre VEO & SBP
FY07
FY08
22
Strategy & outlook
Roger Olds
Managing Director
Global presence
Europe
employees 110
North America
employees 680
Africa / Middle East
employees 160
Asia / Pacific
employees 2,800
South America
employees 440
Note: Our people as at 30 June 08 Total 4,200 (2,500 in 07)
24
We operate in high demand sectors
•
Coffey group revenue by sector
10%
Infrastructure
15%
Resources
45%
International
development
Property
30%
•
Group revenue split in FY08
approximately:
– Infrastructure (45%)
– Resources (30%)
– International development (15%)
– Property (10%)
The acquisitions during FY08
increased our exposures in:
– Infrastructure (APR, Stratcorp,
Peron, Teal Management
Services, Shaheen & Peaker)
– Resources (Geoexplore, NS
Consultancy)
– International Development (MSI)
– Property (JWC)
25
We operate in markets with attractive fundamentals
• Our specialist sectors are seeing continued strong investment
• Recessionary pressures impacting consumer spending patterns, but
not impacting our sectors
• Resources expenditure is still being driven by high demand
• Increased infrastructure spend globally
• International development sector experiencing increased
expenditure
26
We have excellent growth prospects
•
•
•
Organic
– Increasing demand for our specialist services
– Staff attracted to the specialist model
– Expanding clients and staff numbers with global spread
– Increasing focus on servicing clients with our multi-specialist services
Acquisition
– Strategic acquisitions will continue to support expansion and diversification
– Pipeline of acquisitions in place
– Cautious of the cost of equity and supply of debt
Transformational – One Coffey: aligning our global culture & capabilities
– Platform for Growth; a global transformation strategy
• Aligning vision, strategy, culture and operational excellence through all of
Coffey
• 7 programmes designed to drive short-term performance and long-term
growth
– Coffey Institute launched: an advanced education provider to our industries
– Financial excellence program: training our people
– Leadership program: embedding the Coffey way
– One Coffey Safe and Healthy programme launched
27
Looking forward
•
•
•
•
•
•
A new global management structure – 6 new executive positions
Continued strong growth in revenues
– Leveraging global footprint, resources and clients
– Full year from FY08 acquisitions
– Cross selling opportunities for larger clients
Further fee margin improvements
– Cost efficiencies; eg insurance; travel; purchasing
– Prices increase with salary increases
– Larger clients and larger projects improve utilisations
– Financial management and controls and common systems
– Less integration compared to past years
Continued investment to support sustainable growth
3 year goal set in June 05 met in Q4 FY08
– Operating EBITA (pre VEO & SBP) of $6m per month
– Challenge to now deliver over full 12 months, given historical seasonality
– July 08 is significantly better than past few years
Strong cashflow will support ongoing growth plans
28
Summary
• FY08 has delivered strong growth
• The key markets we operate in have very attractive fundamentals
• Our multi-specialist model is a key differentiator – for clients and
staff
• Our diversification strategy–geography, sector and service–positions
us for strong growth whilst reducing risk
• Our strong balance sheet allows us to pursue attractive acquisition
opportunities as they arise (10 in FY08 and 27 over the past 3
years)
• We are well positioned to grow shareholder value
29
Questions and answers
Appendix
Restatement of FY07 earnings
$m
2007
(Restated)
2007
(Previous)
change
•
Revenue
Consulting
213.7
219.3
↓5.6
Projects
55.6
55.6
-
92.9
92.9
-
Inter Segment Eliminations
0.5
0.5
-
Total
362.7
368.3
↓6.3
•
•
EBITA (pre SBP)
Consulting
30.2
36.3
↓6.1
Projects
8.1
8.1
-
1.5
2.0
↓0.5
Corporate
(14.4)
(14.4)
-
Total
25.4
32.0
↓6.6
Adjustment to Consulting relates
to the Australian environments
(80%), geotechnics (15%) and
mining (5%) businesses
International development
adjustment due to non recovery
under a sale agreement
Cause of adjustment was:
– Not related to projects or overseas
businesses
– Concurrent integration of acquired
businesses & finance systems
32
Restatement of 1H08 earnings
Consolidated income statement
6 months to 31 December 2007
A$m
Consolidated balance sheet
2007
(Restated)
2007
(Previous)
change
237.6
237.4
↓ 0.2
0.3
0.3
-
(88.3)
(87.2)
↑ 1.1
(103.8)
(103.8)
-
Depreciation and amortisation
expenses
(3.5)
(3.8)
↓ 0.3
Occupancy costs
(7.4)
(7.4)
-
Other expenses
(20.1)
(19.6)
↑ 0.5
(2.9)
(2.9)
-
(12.0)
(13.0)
↓ 1.0
Income tax expense
(3.8)
(4.1)
↓ 0.3
Minority interest
(0.1)
(0.1)
-
8.1
8.8
↓ 0.7
Revenue
Other income
Raw materials, subcontractor
costs & consumables
Employee benefits expense
Finance costs
Profit before income tax
Profit attributable to CIL
As at 31 December 2007
A$m
2007
(Restated)
2007
(Previous)
change
Current assets
152.6
153.4
↓ 0.8
Non-current assets
206.2
206.4
↓ 0.2
Total assets
358.8
359.8
↓ 1.0
Current liabilities
138.9
139.2
↓ 0.3
4.3
4.3
-
Total liabilities
143.2
143.5
↓ 0.3
Net assets
215.6
216.3
↓ 0.7
Total equity
215.6
216.3
↓ 0.7
Non-current liabilities
33
High level balance sheet
As at 30 June (A$m)
2008
2007
Cash & equivalents
52.4
14.6
Trade & other receivables
129.7
96.0
203.1
114.4
205.0
143.6
Non-current assets
240.6
167.7
Total assets
443.7
282.1
Trade and other payables
72.7
34.6
Borrowings
1.7
-
94.7
41.2
144.7
60.5
Non-current liabilities
153.0
63.4
Total liabilities
247.7
104.6
Net assets
196.1
177.5
Total equity
196.1
177.5
Current assets
Intangible assets
Current liabilities
Borrowings
34
A snapshot of Coffey over past 5 years
Metrics
($m) unless otherwise stated
FY04
FY05
FY06
FY07
FY08
Revenue
131.3
170.0
251.9
362.7
558.6
Fee revenue
115.1
141.0
210.9
281.9
376.6
11.5
16.3
22.4
25.4
43.2
NPAT (pre VEO & SBP)
7.7
11.2
13.4
14.4
22.9
NPAT (post VEO & SBP)
7.0
10.2
11.6
8.4
15.3
8.7%
9.6%
8.9%
7.0%
7.7%
10.0%
11.6%
10.6%
9.0%
11.5%
13.1cps
17.3cps
19.0cps
16.0cps
20.8cps
4.7
3.1
54.8
46.1
93.9
25.3
34.2
67.0
177.6
196.1
18.7%
9.2%
81.8%
26.0%
47.9%
29.8x
18.2x
7.0x
5.2x
5.5x
2
2
8
9
10
(revenue) Margin
Operating EBITA (pre VEO & SBP) (fee
revenue) Margin
EPS (basic) (NPAT pre VEO & SBP)
Net Debt
Equity
Net debt/equity
Interest cover (EBITA per VEO & SBP)
Number of acquisitions
35
Disclaimer
The material in this presentation is a summary of the results of Coffey International Limited (Coffey) for the 12 months
ended 30 June 2008 and an update on Coffey’s activities and is current at the date of preparation, 28 August 2008.
Further details are provided in the Company’s full year accounts and results announcement released on 28 August
2008.
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, www.coffey.com
36

Coffey Investor Presentation FY08_vFINAL NN 3 [Read

Transcription

Similar documents

services in ndt - Amotus Solutions

Vitruvian Man by Leonardo da Vinci (circa 1487)

2010-2011 annual report

Bisnode presentation

Veo + Brochure(Issue1_March2016) .indd

Detroit Area Pre-College Engineering Program (DAPCEP), founded

Top 10 Steve Prefontaine Quotes

Mike McNamara - Investor Relations Solutions

Fall 08 - SIGnetwork

VIC COFFEY - Sweeteners Plus

Coffey Cousins` Clearinghouse