Slide 1: Market update
DOWNER GROUP Market update 27 November 2017
Slide 2: Overview
OVERVIEW Underlying Spotless earnings for the first four months of FY18 have been consistent, predictable and broadly in line with Downer’s business case. Cost synergies are expected to exceed original estimates. Revenue opportunities continue to increase. Substantial value for Spotless in a
Slide 3: Guidance for 2018 Financial Year
GUIDANCE FOR 2018 FINANCIAL YEAR Downer is targeting consolidated underlying net profit after tax and before amortisation of acquired intangible assets (NPATA) of $295 million before minority interests. This includes: – NPATA of $202 million for Downer; and – NPATA of $93 million for Spotless.
Slide 4: Review of Spotless' Balance Sheet
REVIEW OF SPOTLESS’ BALANCE SHEET $79.7 million of individually significant items net of tax, including: – $10.1 million of management redundancies, transaction costs, and residual Strategy Reset costs; – $29.6 million of work in progress, mobilisation costs and other balance sheet adjustments; an
Slide 5: Integration
INTEGRATION Integration of Spotless as a sixth Division of Downer is progressing quickly. Teams are working closely together across areas including Zero Harm, Customers and Markets, Bid Management, Major Contracts, Procurement, IT and Finance (Treasury, Tax, Insurance, Accounting). Joint Biddi
Slide 6: Continuing Transformation
CONTINUING TRANSFORMATION FY14 Total Revenue Pro-forma FY17 Total Revenue Services Mining & Rail - Freight Services Mining & Rail - Freight 69% 31% 86% 14% 8% 12% 11% 28% 2% 26% 18% 5% 24% 6% 26% 14% 20% Mining Rail Freight EC&M Transport services Utilities services Rail Facilities services Source:
Slide 7: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT FY18 (A$’m) Downer Spotless4 Combined Acquisition Incremental Total Synergies & accounting interest1 Group4 Integration costs Underlying NPATA 202.0 93.0 5.0 - (5.0) 295.0 Amortisation of acquired (7.0)2 (8.0)2 - (29.0)3 - (44.0) intangible assets (A) Underlying NPAT 19
Slide 8: Individually Significant Items
INDIVIDUALLY SIGNIFICANT ITEMS FY18 (A$’m) Gross Tax benefit Spotless Acquisition Total Post-Tax accounting Group Management redundancies and (4.0) 1.2 (2.8) - (2.8) transaction costs Residual Strategy Reset costs1 (9.7) 2.4 (7.3) - (7.3) Other balance sheet adjustments2 (69.9) 40.3 (29.6) 29.6 - La
Slide 9: Capital Management Update
CAPITAL MANAGEMENT UPDATE Downer’s balance sheet remains strong with high levels of liquidity, a well diversified debt portfolio and average debt duration of 3.3 years1. Refinance of Spotless’ debt and performance bonding facilities planned for calendar 2018. Downer is targeting a dividend pay
Slide 10: Questions Q&A
QUESTIONS Downer © Q&A
Slide 11: Market update
DOWNER GROUP Market update 27 November 2017