Morgans Queensland Conference

Outlook for FY19 Cardno® FY19 is the third year of a multi year business improvement plan. The focus of the business remains the same: cost control, organic growth, invest in people and where appropriate strategic accretive bolt on acquisitions. > The focus of the board is on returning the business to positive organic growth after the restructure of the divisions over the past three years. The focus remains on medium term EBITDA growth, with a number of investments in FY19 which will limit EBITDA growth in some divisions in the short term. > > > > > The business will continue to explore 'on strategy' acquisitions to gain access to key markets or skill sets. Disciplined M&A process established. The business is continuing its investment in internal systems and process improvement. This includes investment in business development processes, staff, information technology and training. After a period of under investment and poor historical capital allocation, elevated capital expenditure will continue into FY19. Cardno is forecast to invest $15m to $20m in capital expenditure on the current existing business next year. The company will continue its share buy back program while the Board considers this an appropriate allocation of shareholder capital. The business expects to re-finance the existing debt facility during FY19 ahead of term (Dec 19). Cardno is operationally and financially in the strongest position it has been in the past three years. The company believes there is a solid basis for both revenue and EBITDA growth in the medium term. Cardno does not intend to issue further profit guidance from here unless there is a material change in performance over prior year. 33 Cardno: Morgans Queensland Conference

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