Slide 1: Downer Group – Analyst & Investor Site Visit
For personal use only Downer Group – Analyst & Investor Site Visit Waratah Train Project Ross Spicer Cardiff, New South Wales Project Director 12 September 2012 1
Slide 2: Agenda
For personal use only Agenda • Production Outline • Program Delivery • Project Achievements • Current Train Performance • Forward Look 2
Slide 3: Production Outline
For personal use only Production Outline • China quality issues resolved from train 24 (ahead of plan at 26) • All trains delivered now have rework within budget for Cardiff flowlines • Increase in staffing levels in China has occurred • 3 trains delivered during each of June, July and August • 3 tr
Slide 4: Production Outline continued
For personal use only Production Outline continued • Cardiff flowlines operating at 4 day TAKT time since end of May 2012 (TAKT = pulse time) • This means a train is produced every 8 working days • One train to be delivered to RailCorp every 8 business days, from late September onwards, with occasio
Slide 5: Production Outline continued
For personal use only Production Outline continued • Australian rail industry does not have the capacity for delivery of high output assembly rail vehicles; prior to the Waratah Train Project it did not have the experience either • Millennium Train Project was 4 cars every 16 days • Methods of worki
Slide 6: Program Delivery
For personal use only Program Delivery • Project is on target to the revised program outlined at Downer Group’s full year results on 13 August 2012 • This program targets highest certainty at lowest cost • Recovery on initial delays to the original contract program scheduled to be 6+ months by mid-2
Slide 7: Program Delivery continued
For personal use only Program Delivery continued Status Train Set No. Status Train Set No. Passenger service 3,4,5,6,7,8,9,10, At Dalian Port 34,35 11,15,16,17,18,19 Being prepared for 21 At CRC ready for 36 presentation for PC dispatch to Port Auburn under test 20 In CRC Fitout Shop 37,38,39,40,41
Slide 8: Program Delivery continued
For personal use only Program Delivery continued 31 cars 63 cars 94 cars 125 cars 157 cars 188 cars 219 cars 250 cars 282 cars 313 cars 344 cars 376 cars 407 cars 438 cars 470 cars 501 cars 532 cars 563 cars Interior Fitout Components Major Supply Components CRC Car bodies Commenced CRC Fitout Comme
Slide 9: Project Achievement
For personal use only Project Achievement • Set 1 presented for PC to RailCorp on schedule (as developed in January 2011) • Set 7 reliability milestone successfully negotiated • Delivery output now at 3 trains per month out of China and targeted delivery rate achieved out of Cardiff • Quality issues
Slide 10: Current Train Performance
For personal use only Current Train Performance • Reliability currently ahead of predictions • Major systems are not failing; unusual for a new train design • Independent reviews of the project by UK rail experts have suggested the performance is exemplary for this stage of a new train build • Avail
Slide 11: Current Train Performance continued
For personal use only Current Train Performance continued 11
Slide 12: Current Train Performance continued
For personal use only Current Train Performance continued As the introduction of the Fleet progresses, reliability of Sets 1-6 can be seen to increase sharply over the last 3 months Sets 7-13, which have been introduced recently, are predominately at a lower but improving reliability The rapid incre
Slide 13: Forward Look
For personal use only Forward Look • TLS contract is in early stages of delivery and is expected to be profitable • Focus in the next 12 months is on life cycle costs and maximising use of the on-train diagnostic systems • The ability to remotely diagnose defects across this fleet is a distinct comp
Slide 14: Disclaimer
For personal use only Disclaimer Reliance on third party information This presentation may contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the