Opus International Consultants Limited

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Opus International Consultants Limited
Kevin ThompsonManaging Director
Briefing February 2009
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Agenda

• 2008 Operational Highlights
• Financial Performance 2008
• Operations Outlook 2009
• Strategic Direction
• Company Overview

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1) 2008 Operational Highlights
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2008 Operational Highlights

• Acquisition of the Joynes Pike Group doubling our
  UK staff numbers to 360 and adding 9 offices
• Acquisition of Project Engineering Ltd in Canada
• Secured 55 of New Zealand Transport Agencys
  fees for the management of state highway networks
• Partner in the Auckland Motorway Alliance
• Won key Auckland City Council contracts for road
  asset management services, pavement structures
  and drainage design
• Transmission Gully new preferred route reduces
  projected costs by 200m in Wellington

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2008 Operational Highlights

• Renewed three major highway network asset
  management contracts in NZ
• Roading design for Tillegra Dam in NSW
• Appointed to Perth citys contracts panel
• Award winning architectural design for Wilson
  Special Needs School in Auckland
• Australian Northern Territory Strategic
  Indigenous Housing and Infrastructure Programme
• Environment Centre for Wales
• Appointed as preferred consultant to Logan City
  Council, QLD

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2008 Operational Highlights

• Developed Asset Management Framework for Ontario
• Appointed sole structural engineering consultant
  for conversion of 1,500 Boots stores in the UK
• Sustainability award winning Oxley Woods housing
  project in the UK
• Won survey work for UK Decent Homes housing
  programme

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2) Financial Performance 2008

• 2008 Results

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Financial Performance 2008

• Financial Highlights
• Revenue up 25.4 to 372m
• EBITDA up 28.4 to 30.5m
• NPAT up 23.4 to 17.5m
• Profit exceeds forecast by 10.5
• ROE 24.7 exceeds 22.8 forecast
• Staff numbers increase 327 to 2,563

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Financial Results
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Half Year Comparators
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Strong Operating Cash Flow
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Balance Sheet Strength
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Key Ratios
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Trends
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3) Operations Outlook 2009
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Operations Outlook 2009

• Global Economy Implications for AE Services
• Public Sector
• Every major economy is targeting increased
  infrastructure investment as an economic stimulus
• Resultant increase in Architecture and
  Engineering services demand will build over 2009
• Private Sector
• Absence of finance and risk appetite have
  severely depressed activity with widespread
  shelving or cancellation of projects
• Liquidity of sector increases bad debt risk
• Recovery of activity levels will be influenced by
  backlogged demand and capital availability

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Operations Outlook 2009

• Impact on Opus Markets

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Operations Outlook 2009

• Tactical Response
• Reducing operating costs
• Indirect cost constraints
• Adjusting resource levels
• Conservative approach to growth
• Preserving cash
• Improving project management
• Focussed debt collection
• Reduced Capex
• Reduced recruitment
• Tightened liquidity management
• Building revenues
• Tracking and capturing increased infrastructure
  spend
• Diversifying UK business activity
• Increasing international collaboration
• Defending margins
• Focus on maintaining existing business
• Identify opportunities to improve margins
• Mitigate unprofitable projects

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Operations Outlook 2009
Country Results
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4) Strategic Direction
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Strategic Direction

• Conservative liquidity management
• Acquisition Strategy
• 2009
• Prudent to preserve cash, maintain/increase NTA,
  deal with issues in UK
• Continue exploring potential acquisitions,
  maintain NTA by mainly using new equity in any
  deal completed
• Focus is still Canada
• 2010 and beyond
• Prepared and alert to opportunities to advance
• Short term strategy grow profits before
  extending scope
• 2011 strategy for global footprint is unchanged,
  but likely to be deferred

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Strategic Direction
360 FTEs
66 FTEs
360 FTEs
1777 FTEs
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Strategic Direction
500 FTEs
700 FTEs
500 FTEs
1850 FTEs
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5) Company Overview

• Company Description
• Locations
• Rationale for International Market Presence
• Broad Range of Services Provided
• Developing Capability across the Globe

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Overview Company Description

• Infrastructure professional services organisation
• Specialise in
• Buildings
• Water
• Roads
• Creation of new assets, and management of
  existing assets
• Also work with other infrastructure
• Port / Airport
• Industry
• Energy
• Land Development
• Environmental
• Rail

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Overview Locations
17 Offices 360 FTEs
7 Offices 66 FTEs
21 Offices 360 FTEs
36 Offices 11 Labs 1777 FTEs
2,563 Employees Across 81 offices and 11
laboratories
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Overview Rationale for International Market
Presence

• Global presence
• Spreads opportunity economic risk
• Broadens skill base
• Provides opportunities for staff
• Opus asset management capability provides
  competitive advantage
• Chosen markets need and want asset management
• Also able to provide asset development services
  in these markets
• Growth achieved through acquisitions plus organic
  growth
• Chosen markets have similar
• Infrastructure
• Legal systems
• Culture
• Language

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Overview Broad Range of Services Provided
Majority of Opus employees are technical
professionals with skills in the following areas

• Architecture
• Asset Valuation
• Bridge Design
• Building Services Engineering
• Civil Engineering
• Infrastructure Economic Evaluation
• Environmental Planning
• Estimating Cost Management
• Fire Engineering
• Geotechnical Engineering
• GIS Services
• Graphic Design
• Heritage Conservation Services
• Infrastructure Asset Management
• Land Surveying
• Landscape Architecture
• Maritime Engineering (Marine Services)
• Materials Testing
• Mechanical Electrical Engineering

• Pavement Engineering
• Pipe Network Reticulation
• Project Management
• Project Procurement Construction Management
• Property Acquisition, Disposal and Management
• Risk Management
• Seismic Engineering
• Structural Engineering
• Traffic Engineering
• Traffic Modelling
• Transportation Asset Management
• Transportation Infrastructure Design
• Transportation Planning and Engineering
• Travel Demand Management Plans
• Utilities Operator Training
• Wastewater Treatment
• Water Asset Management
• Water Resource Management
• Water Treatment

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Overview Broad Range of Services Provided
New train stations on the Epping to Chatswood
Railway line, NSW
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Overview Broad Range of Services Provided
Stage 2 development at White Water World, QLD
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Overview Broad Range of Services Provided
Master plan for the development of a new ferry
terminal, Nova Scotia
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Overview Broad Range of Services Provided
Safety review of Cobequid Pass,Trans-Canada
Highway, Nova Scotia
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Overview Broad Range of Services Provided
Westfield Retail Development at White City
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Overview Broad Range of Services Provided
The Environment Centre for Wales
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Overview Broad Range of Services Provided
Oxley Woods project, Milton Keynes
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Overview Broad Range of Services Provided
The Wilson Special Needs School, Auckland
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Overview Broad Range of Services Provided
Newmarket Station, Auckland
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Overview Broad Range of Services Provided
Mt Grand Raw Water Reservoir, Dunedin
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Overview Broad Range of Services Provided
Hillsborough roundabout overbridge, Auckland
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Overview Broad Range of Services Provided
Air-conditioning system design at Gen-i Data
Centre, Auckland
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Strong FTE Growth