Slide 1: Full Year Financial Results
Full Year Financial Results
Slide 2: Managing Director
Managing Director
Slide 3: 2005 Financial Headlines
Las - 2005 — Financial Headlines Sales NPAT EBITA EPS cps DPS cps Op Cash Flow Gearing ROFE *® 19% > 28% &® 20% ® 23% » 15% Strong & steady Steady a Downer EDI Limited 2605 Full Year Financial Results $3,815m $104m $189m 36.3 18.0 $186m 38% 16% Record level Above consensus Core business up Double di
Slide 4: 8th Consecutive Year of Record Earnings
8" Consecutive Year of Record Earnings « Underscored by $4.5b portfolio of long term O & M contracts « NPAT of $94m, pre consolidated tax benefit » Record sales and reliable margins deliver 20% lift in EBITA « Millennium Train contract successfully transitioned to maintenance » CDL return to EBITA p
Slide 5: Divisional Performance
Divisional Performance Mining & Resources 2005 2004 | H2FY05 H2FY04 Sales 1316 935 731 509 EBITA 72.3 44.0 44.4 29.5 Engineering 2005 2004 | H2FY05 H2FY04 Sales 1,251 1,101 637 489 EBITA 584 642 35.5 28.7 Downer EDI Limited 2605 Full Year Financi Record EBITA Mining EBITA up 35% to $65m - higher vol
Slide 6: Divisional Performance
Divisional Performance Infrastructure 2005 2004 | H2FY05 H2FY04 Sales 873 676 463 341 EBITA 49.7 42.6 34.9 33.1 Rail 2005 2004 | H2FY05 H2FY04 Sales 361 410 168 219 EBITA 23.3 24.2 12.3 6.6 Downer EDI Limited 2605 Full Year Financi « Record EBITA, up 17% yoy * Strong sales growth in both NZ & Austra
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Geoff Bruce Chief Financial Officer
Slide 8: EPS Growth Up
Downer EDI Limited 2605 Full Year Financ EPS Growth Up 23 % Revenue EBITA Net Interest NPBT NPAT NPAT pre GWA EPS (basic) cps DPS cps Payout Ratio Franking 19% 20% 27% 21% 28% 2223979 23% Ar 23% AX 15% Unchanged * (A$ Millions) 3,815 189 36 132 104 125 36.3 18.0 50% 70%
Slide 9: Underlying Earnings Growth Up 18%
Underlying Earnings Growth Up 18% (A$ Millions) FY05 FY04 Change (%) Reported operating revenue 3,815 3,193 19% Operating one-offs 15 70 Underlying operating revenue 3,800 3,123 22% Reported EBITA 189 157 20% Net operating one-offs (5) (7) Underlying EBITA 194 164 18% Downer EDI Limited 2605 Full Ye
Slide 10: DPS up 15%
% DPS up 15% Final dividend of 12 eps, up 24% Dividend payout - 50% Franking lifted to 70% TSR > 72% s 8 # cents per share * 2001 2002 2003 2004 2005 BERANE interim NE Final « Special — aula EPS Downer EDI Limited 2005 Full Year Financial Results 10
Slide 11: Strong, Sustainable Operating Cash Flow
Las - Strong, Sustainable Operating Cash Flow (A$ Millions) 2005 2004 Operating cash flow 186.0 181.5 Adjustments - 20.0* Underlying Op Cash 186.0 201.5 Net PPE (107.3) (124.7} Net Acquisitions (29.6) (23.0) Other (5.4) 24 Investing cash flow (142.3) (145.3) Net Cash Flows 43.7 56.2 * Tax Adjustment
Slide 12: Funding Future Growth in Core Businesses
... Funding Future Growth in Core Businesses PPE mainly in Mining & Infrastructure * Investing in sectors that will drive earnings growth for 2 years + « Spend reflects PPE modernisation * Mining $47.3m net investment « Infrastructure $43.3m net investment * This trend will continue in 2006 * Deprec
Slide 13: 15% ROFE target exceeded, an all time high
* 15% ROFE target exceeded, an all time high « Reflects improving operational performance of core businesses « Interim ROE target of 18% « Targeting ROE > 20% on sustainable basis. 2001 2002 2003 2004 2005 13 Downer EDI Limited 2605 Full Year Financial Results
Slide 14: Financial Strength — Options for Growth
Financial Strength — Options for Growth Gearing( ND/E) = NDE - all time low of 38% Flexibility to generate value-added acquisition growth without risk of eps dilution PPP opportunities beyond NSW Rail: credit rating is critical Our balance sheet is one of our greatest strengths = = 2001 2002 2003 20
Slide 15: Financial Summary
Las - Financial Summary « Reported NPAT growth (pre tax benefit) above minimum guidance and in line with market consensus « Operating earnings up strongly « Reflects strong growth in underlying businesses « 3° consecutive year of strong operating cash flow * Recent acquisitions bedded down: the busi
Slide 16: Impact of Adopting AIFRS
Impact of Adopting AIFRS = Project on schedule, nearing completion « |mmaterial impact on Group’s strategy, cash flows or it’s abilities to borrow or to pay dividends « Net effect is to reduce total equity by approx $10m or 1% * Ongoing lift in NPAT due to no goodwill amortisation, $20m = Good headr
Slide 17: Managing Director
Managing Director
Slide 18: Infrastructure: A Long Period of Under-spend
Infrastructure: A Long Period of Under-spend Public Australian Population, Millions Base 1980=160 15 430 5 400 Jun-81 Jun-85, Jun-89 Jun-93 Jun-o7 Junot 3.60 4.60 GEE Govt capex, % of GDP, LHS: seenaee Slate Eudgel Balance, % of GDP, RUS 3.00 0.50 2.50 050 2.00 “1.50 sJun-84 Jun-85 Jun-89 Jun-93 Jun
Slide 19: Additional Infrastructure Rehabilitation Spend
Ls i Additional Infrastructure Rehabilitation Spend > $30b in The Next 5 Years * Road > $10b Rail > $15b ABS, Power > $5b BIS Shrapnel, Telco > $5b Government docs, Resources > $25b Company estimates « |mplies baseline organic revenue growth of 10% pa next 5 years « $90b to be spent over 15 year per
Slide 20: Facilities
Facilities Manageme 8% Develop Proportion of revenues inlongtermO& M contracts today Mining Engineering infrastructure Rail 8% 9% Growing the ‘front’ & ‘back’ end will deliver margin lift and improved returns 60-70% 50-60% 70-90% 50-70%
Slide 21: Delivering Sustainable Annuity Style Earnings
Delivering Sustainable Annuity Style Earnings Impact Contract duration HIGH 70% are long term O & M Contract renewal rate HIGH Consistently > 80% Economic cycle LOW Maintenance spend on essential infrastructure assets is non-cyclical Cost pressures LOW 90% contracts have “pass through” for key input
Slide 22: Group Outlook & Strategies — FY06
Group Outlook & Strategies — FY06 Outlook * 96% of FY06 revenue in hand " Now focusing on FY07 & beyond = Moderate/high market growth - transportation, energy & resources * Trend to outsourcing to continue Strategies ® Target existing clients in Australia, NZ « Focus on “core” sectors « Grow FEED se
Slide 23: Divisional Outlook — FY06
Divisional Outlook — FY06 Mining Engineering Infrastructure Rail Revenue steady, stronger earnings growth and returns for the next 2 years. Mining services will drive earnings. New O & M contracts will all be alliance style. Moderate growth in revenue and margins overall. Strong market growth (NZ an
Slide 24: Divisional Guidance - FY06
Divisional Guidance - FY06 (All figures: A$M) FYo1 FY02. FYO3 FYo4 Fyos A FYOGE A Engineering 213 362 568 1,170 1,289 10% 1,350 5% Mining & Resources 624 1,036 1,104 | 41,083 / 1,414 31% 1,540 9% Infrastructure 426 425 577 / 684 894 31% 980 15% Rail 240 362 319 410361 -12% 400 11% Continuing Busines
Slide 25: Group Guidance & Targets — FY06
Group Guidance & Targets — FY06 Guidance Sales revenue > 8% NPAT growth > sales revenue growth Targets “as EPS “ ROE — 18% “ Interest Cover (EBITA/Net interest) — 5.5 times NWC/Sales <10% Downer EDI Limited 2605 Full Year Financial Results
Slide 26: Questions & Answers
QUESTIONS & ANSWERS
Slide 27: For year ended June
For year ended 30 June 2004 ©2003 = 2002 = 2001 $mil $mil $mil Turnover Revenue Zam rest Net interest expense Income tax Net profit after tax (NPAT) NPAT pre goodwill amortisation Cash fiow from operations Basic earings per share pre amortisation of intangibles (cents) Basic earnings per share (cent
Slide 28: jy YY
jy YY