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Morgans Queensland Conference

2018 Full-Year Segments: Americas AMERICAS EBITDA AND % MARGIN A$ million 18 16 14 12 20 10 8 642 14% 12% 10% 8% 6% 4% 2% 0% Cardno® The Americas Engineering and Environmental division performance continued to improve with EBITDA margin expanding from 1.6% to 4.8%. While this remains below industry averages the division is building positive momentum. > Gross Revenue in FY18 of $378.3m, this was 7.9% down on FY17. > EBITDA margin was 4.8%, which while not where we would like it to be, represents a substantial improvement on the 1.6% achieved in FY17. > Improvement in operating margin driven by a series of initiatives that reduced non client facing management and labour, fringe (insurance, health), overhead and occupancy costs. > Focus is on growing revenue and margin. KEY WINS DURING THE YEAR INCLUDE: > U.S. Marine Corps, asset management consulting services (BUILDER) at bases in Hawaii, Japan, Okinawa and Korea. > Southern California Edison - on-call support for electrical transmission and distribution service lines. > Phoenix Arizona Salt River Project / Subsurface Utility Engineering on call services. H1-2017 H2-2017 H1-2018 H2-2018 Ebitda % 21 Cardno: Morgans Queensland Conference > Florida Department of Transport I-75 and SR 50 Reconstruction. > Navy and Marine Corps IDIQ contract for NEPA. > US Air Force Reserve Command – support civil engineering and environmental planning programs worldwide.
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