Hill International — Arpeggio Acquisition — SPAC Merger (January 2006)
21 slides from Hill International's SPAC merger presentation, Jan 4, 2006
Slide 1: Road Show Presentation: Merger of Arpeggio Acquisition Corporation and Hill International
Road Show Presentation Arpeggio is holding presentations for certain of its stockholders, as well as other persons who might be interested in purchasing Arpeggio's securities, regarding its merger with Hill International, Inc., as described in the Current Report on Form 8-K filed by Arpeggio on Dece
Slide 2: Safe Harbor
2 Safe Harbor This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about Arpeggio, Hill and their combined business after completion of the proposed acquisition. Forward looking statements are statements that are not his
Slide 3: Hill International Overview / The Transaction
Locations: Marlton, NJ (HQ) & 20 other offices in 10 countries Employees: 771 (including 16 independent contractors) Listing(1) : OTCBB: APGOU, APGO, APGOW (1) Combined entity to seek Nasdaq listing upon closing 4 The Transaction Arpeggio will issue 14.5 million shares to Hill shareholders, represen
Slide 4: Attractive Valuation / Project Management Group
Lower EBITDA & EBIT multiples than peer group average (1) (2) Higher growth profile Better quality business (higher return on capital) Lower risk profile (fee-based model vs. GMP model) Larger backlog relative to revenue (1) Peers included in this analysis are Jacobs Engineering Group Inc., Washingt
Slide 5: Project Management Highlights
Project Management Highlights Project Name: The Palm Jumeirah Location: Dubai, UAE Client Nakheel Corporation Service: Program Management Project Value: $1,500,000,000 Hill managed the reclamation of The Palm Jumeirah, one of three artificial islands planned in the Arabian Gulf off the coast of Duba
Slide 6: Construction Claims Group / Revenue Breakdown
9 Construction Claims Group Approximately 18% of net revenue in 2005 (1) One of the largest and best known construction claims consulting firms in the world, having helped resolve over 5,000 disputes valued in excess of $50 billion Full spectrum of construction dispute resolution services: claims co
Slide 7: Investment Considerations / Accelerating Net Revenue Growth
2005 YTD Revenues by Location 11 Investment Considerations Significant growth in sales, backlog and profitability Accelerating revenue growth Backlog growth Operating margin expansion Limited geographic presence creates high opportunity for growth Revenue visibility High barriers to entry create sus
Slide 8: Total Backlog Increased at 50% CAGR Over the Last 4 Years
18% 26% Backlog points to sustainable future growth Recent growth achieved in poor construction market Fragmented market with many small players Limited geographic presence creates high opportunity for growth 13 These numbers were obtained using private company accounting, are unaudited and subject
Slide 9: Revenue Visibility / Margin Expansion
Revenue Visibility First nine Numbers in US$ millions months of 2005 ONLY Much of the company’s revenue is tied to contracts that generally have terms of 3-5 years, with some as long as 7-10 years. The long-term and predictable nature of these contracts provides a stable base of recurring revenue an
Slide 10: High Barriers to Entry / Favorable Industry Dynamics
Margin increase in first three quarters of 2005 reflects this operating leverage 16 These numbers were obtained using private company accounting, are unaudited and subject to change High Barriers to Entry Compete on reputation and past experience Long lasting relationships lead to repeat business Co
Slide 11: Experienced Acquirer With Focused Strategy
World eventsbillion U.S. Transportation Bill $286.5 Gulf Coast reconstruction Iraq reconstruction Afghanistan reconstruction 18 Experienced Acquirer With Focused Strategy U.S. acquisitions to round out domestic presence Target smaller companies without access to other capital sources Limited infrast
Slide 12: Experienced Management Team
Management responsibility for all of Hill’s business operations Prior to his current position, Mr. Richter was President of Hill’s Project Management Group for three years and prior to that he was the Company’s General Counsel for six years. B.S. in Management, B.S.E. in Civil Engineering and J.D. f
Slide 13: Income Statement / Balance Sheet
Income Statement Fiscal year ending on or about December 31 – Numbers in US$ Millions 2002 2003 2004 Q1-3 2004 Q1-3 2005 Total Revenue 73.1 78.7 84.1 61.2 80.5 Reimbursable Expenses 25.0 22.6 21.1 14.3 21.3 Net Revenue 48.1 56.1 63.0 47.0 59.2 Direct Expenses 23.9 29.0 34.4 25.6 31.6 Gross Profit 24
Slide 14: Investment Conclusions
These numbers were obtained using private company accounting, are unaudited and subject to change Investment Conclusions Significant growth in sales, backlog and profitability Accelerating revenue growth Backlog growth Operating margin expansion Limited geographic presence creates high opportunity f
Slide 15: Commercial Office Buildings
25 Commercial Office Buildings Project Name: The Financial Centre, Bahrain Financial Harbour Location: Manama, Bahrain Client: Bahrain Financial Harbour Holding Company, B.S.C. Service: Project Management Oversight Project Value: $250,000,000 Hill is providing project management oversight services f
Slide 16: Residential Buildings
Hill is providing Design Review and Project Management Services for the 52- story, 220-meter high-rise which will house the corporate headquarters of Qatar Navigation. The total built-up area of the tower will be 117,000 square meters and will include a six-story parking garage with space for up to
Slide 17: Educational Facilities
Educational Facilities Project Name: Various School Construction and Renovation Projects Location: Mercer and Burlington Counties, NJ, USA Client: New Jersey School Construction Corp. Service: Program Management Project Value: $350,000,000 Hill is providing project and construction management servic
Slide 18: Transportation
Transportation Project Name: Driscoll Bridge Location: Perth Amboy, NJ, USA Client: New Jersey Highway Authority Service: Construction Management, Project Labor Agreements Project Value: $150,000,000 Hill conducted a labor and cost analysis and also prepared a report concerning the feasibility and a
Slide 19: Libraries & Museums
Hill is a member of the team led by Volmar Construction, Inc., providing CM-at-risk services during and $80 million modernization of this federal courthouse building. Hill’s services include project management, project controls estimating and contact administration. 32 Libraries & Museums Project Na
Slide 20: Government Office Buildings
million Phase 1 included the renovation of 450,000 square feet of occupied space in the Pentagon. It was the first phase of a $1.2 billion total renovation effort. The project required replacement of the structural, mechanical and electrical systems, and build-out of the space. Project Name: ID/IQ T
Slide 21: Hospitals & Healthcare Facilities
Project Name: Location: Hospitals & Healthcare Facilities Hamad Medical City Doha, Qatar Client: Qatar Ministry of Public Health Service: Project Management Project Value: $600,000,000 Hill is managing the design and construction of the largest comprehensive medical facility in the Middle East. It i