Downer Edi Limited · ASX:DOW
Downer Edi — H1 FY2004 Earnings Presentation
20 slides from Downer Edi's earnings presentation, Feb 27, 2004
Slide 1: February 2004
27 February 2004 SLL LLL ES BBBLVLLILDELVLLLELALELLILLLLLEDVEL VBL SLELELLELEISELLIELLLLLLLLLEITRDD:
Slide 2: Results Presentation
RESULTS PRESENTATION STEPHEN GILLIES MANAGING DIRECTOR GEOFF BRUCE CHIEF FINANCIAL OFFICER JOHN DAVENPORT GENERAL MANAGER GROUP FUNDING
Slide 3: Company Summary
Hae Downer EDi COMPANY SUMMARY
Slide 4: Management comment on revenue expectations
“We remain on track to meet our full year revenue expectations with the half year earnings reflecting strong new business contributions from our services operations. Mining and Resources has had a poor first half and this is expected to recover in the second half of 2004FY. Unfortunately, our overal
Slide 5: Key Points
2004 First Half - Key Points = Sales up 27% on previous comparative period (pep) to $1.5 billion > Strong growth in Power and Road > Full half year from CPG (FM and Consultancy) > Contributions from Stork (Power maintenance) > Organic growth in Rail, up 14% on pep > Record revenue underpinned by sec
Slide 6: Key Points
2004 First Half - Key Points = Sales growth sustainable due to: > Enhanced market position in core businesses where growth is occurring > Program of diversifying revenue sources bearing fruit through multiple growth options = Infrastructure — now one of the largest road maintainers in Australia/NZ =
Slide 7: Turnover (by business streams)
Hae Turnover (by business streams) INFRASTRUCTURE DESIGN + FACILITIES MINING & (Road + Rail) MANAGEMENT RESOURCES 1 2002 Actual (half year to Dec 31)) 0 2002 Actual (half year to Dec 31) 112002 Actual {half year to Dec 31) | 2003 Actual (hait year to Dac 31) © 2003 Actual {half year to Dec 34} 2003
Slide 8: Turnover (by business streams)
Hae Turnover (by business streams) TELCO POWER RAIL (Rollingstock products, inc. maintenance) S.: Gh @.:: (2002 Actual (half year to Dec 31) 0 2062 Actual {half year to Dec 34) 012002 Actual {half year to Dec 31) | 2003 Actual (hait year to Dac 31) © 2003 Actual {half year to Dec 34} 2003 Actual (ha
Slide 9: Key Points
2004 First Half - Key Points = Net Profit before Goodwill Amortisation up 15.3% on pcp to $34.1 million but held back by: > FX effects — S$ depreciated against A$ (approx.10% since 30/6} > Mining & Resources down - operational issues at Coppabella (principally access to reserves) and discontinuation
Slide 10: Key Points
2004 First Half — Key Points » Tax down 22.5% on pep to $8.5 million > Finalisation of R&D tax benefit - Rail division technology > Benefit of lower tax rate (Singapore) * NPAT up 15.7% on pep to $25.2 million * EPS up 14.5% on pep = DPS doubled to 4 cents per share, 50% franked (pcp 2 cents per sha
Slide 11: Key Points
2004 First Half — Key Points * Cash Flow From Operations at $55.3 million was similar to pep when adjusted for one-off return of working capital from 4GT in December 2002. * Cash Balance $156 million reflecting principally: > Timing of sales - Rail work completed at year-end paid in Jan.’04 (>$25 mi
Slide 12: Financial Commentary
Hae FINANCIAL COMMENTARY
Slide 13: Overview
2004 First Half Overview As at 31 December {A$ Millions) Revenue“ EBITA Net Interest Tax Net Profit After Tax Goodwill Amortisation Net Profit (Before Goodwiil Amortisation) EPS - Weighted Average, ordinary shares (mill.) - Basic EPS (Cents) DPS - Interim (Cents) DPS - Franking ” Excludes JV Sales 2
Slide 14: Overview
2004 First Half Overview = Revenue grew strongly with the contribution of new businesses and organic growth, particularly in Power and Road, as anticipated. = EBITA margin reflects S$ and poorer than expected profitability from Mining & Resources. (Bad debt provision related) = Rolling 12-month EBIT
Slide 15: Overview
2004 First Half Overview = Share consolidation completed December to streamline register. = Preference shares converted to ordinary shares and placed, providing a cleaner capital structure and improved stock liquidity. = Free float increased to 73% leading to S&P IWF increasing from 53% to 65% and S
Slide 16: Outlook
2004 Outlook = Road maintenance business operating to expectations and market outlook in Australia and NZ quite positive. = Telco outlook positive with calendar year-end award of expanded maintenance work for Telstra and TCNZ and some carriers looking to “crank up” capex programs. = Rail now positio
Slide 17: Outlook
2004 Outlook = 2004 revenue locked in. = Profit outlook for Mining & Resources weaker than expected: however, we believe all other businesses will deliver on expectations. = Any significant S$ depreciation and/or NZ$ depreciation from 31/12/03 levels may affect full year. = Noreason at this stage to
Slide 18: Outlook Generally
2004 — Outlook Generally = No requirement for new share capital to fund organic and small acquisition opportunities. = EPS and DPS will continue to increase. = Surplus cash flow able to be reinvested into infrastructure operations - otherwise capital management initiatives will be considered. = Exam
Slide 19: Questions & Answers
Hae Downer EDi QUESTIONS & ANSWERS
Slide 20: Se NE:
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