Downer Edi Limited · ASX:DOW
Downer Edi — Investor Day (May 2015)
29 slides from Downer Edi's investor day presentation, May 5, 2015
Slide 1: Downer EDI Limited Investor Day 2015
Downer EDI Limited ABN 97 003 872 848 Triniti 3, Triniti Business Campus 39 Delhi Road North Ryde NSW 2113 1800 DOWNER www.downergroup.com 5 May 2015 Company Announcements Office ASX Limited Exchange Centre Level 4, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam RE: Downer EDI 2015 Investor Day Ple
Slide 2: Relationships creating success
Relationships creating success Investor Day, 5 May 2015
Slide 3: © Downer Group Limited All rights reserved Page 2
© Downer Group Limited All rights reserved Page 2
Slide 4: Our new brand
Our new brand We have been actively rebuilding our brand for the past five years Investors, financiers, customers, employees About 18 months ago we began a major initiative to develop a more highly customer-focused organisation We spoke to a range of customers and asked them how they perceiv
Slide 5: What our customers said
What our customers said You are expected to be: To outperform you need to: safe offer solutions technically proficient and deliver a suggest smart ideas quality project honest and transparent be innovative responsive and flexible be proactive efficient and value for money leverage the breadth of Dow
Slide 6: Our new brand image
Our new brand image © Downer Group Limited All rights reserved Page 5
Slide 7: Our new brand image
Our new brand image © Downer Group Limited All rights reserved Page 6
Slide 8: More than just a new logo
More than just a new logo Our promise – to work closely with our customers to help them succeed, using world leading insights and solutions. Our promise is founded on four pillars © Downer Group Limited All rights reserved Page 7
Slide 9: Corporate restructure
Corporate restructure Downer now consists of five operating divisions: DOWNER GROUP STRATEGY, GROWTH & INNOVATION ENGINEERING, INFRASTRUCTURE CONSTRUCTION AND NEW ZEALAND MINING RAIL SERVICES MAINTENANCE Road services Electrical & Infrastructure services Open cut mining Freight Instrumentation (E&I)
Slide 10: Infrastructure Services
Infrastructure Services Provider of road and rail infrastructure services and services to the gas, power, water and communications industries. What is happening in our markets Government spending is constrained All Governments are looking for greater efficiency and smart solutions Outsourcing
Slide 11: Engineering, Construction & Maintenance
Engineering, Construction & Maintenance Provider of electrical, instrumentation, structural mechanical and piping services, industrial infrastructure maintenance and resource-based consulting services. What is happening in our markets Capital expenditure across key sectors continues to reduce Pr
Slide 12: New Zealand
New Zealand One of New Zealand’s largest infrastructure services providers to the transportation, water, power, communications, facilities management and renewable energy sectors. What is happening in our markets Strong economy (Auckland, Christchurch) with lowest inflation rates in decades Cust
Slide 13: Mining
Mining A diversified mining services business, providing open-cut and underground mining, blasting services and tyre management. What is happening in our markets Commodity prices remain low – at last year’s Investor Day: iron ore $106.29, coking coal $120.00, thermal coal $72.85 Reduced invest
Slide 14: Rail
Rail Provider of total rail asset solutions including freight and passenger build and maintenance, component overhauls and after-market parts. What is happening in our markets Reduced demand for freight locomotives as a result of mining downturn Deferral and reductions in maintenance, overhauls
Slide 15: Our strengths
Our strengths Market leading businesses Strong balance sheet and cash flow Successful efficiency and transformation programs (Fit 4 Business, investment in core systems, consolidation of business services) Refreshed focus on brand and customers A strong team Well placed for when markets
Slide 16: Our guidance confirmed
Our guidance confirmed We expect Downer to meet its target NPAT of around $210 million for the 2015 financial year. © Downer Group Limited All rights reserved Page 15
Slide 17: Appendices
Appendices
Slide 18: Infrastructure Services
Infrastructure Services Sergio Cinerari Chief Executive Officer Road Services Utilities Infrastructure Projects Surfacing and Stabilisation Power & Gas Rail Infrastructure Operations Transmission and distribution network End-to-end service offering for the Asphalt surfacing, surface rejuvenati
Slide 19: Infrastructure Services – major contracts
Infrastructure Services – major contracts Business Examples of current major contracts Name Approx. Duration value ($m) WA Integrated Services Arrangements (ISAs) x3 660 2011-16 Performance Specified Maintenance Contract (PSMC) - Road Services 370 2008-18 Sydney North Roads and Maritime Services - S
Slide 20: Engineering, Construction & Maintenance
Engineering, Construction & Maintenance Louis Nucifora Chief Executive Officer Electrical & Instrumentation Structural, Mechanical & Industrial & Infrastructure Electrical system design, electrical Piping Maintenance installation, process instrumentation, Steel and pipework erection, equipment
Slide 21: Engineering, Construction & Maintenance – major contracts
Engineering, Construction & Maintenance – major contracts Sector Examples of current major contracts Name Approx. Duration value ($m) Oil & Gas Wheatstone LNG – Bechtel 400 2015-17 Gorgon LNG - miscellaneous works - Chevron 170 2015-18 Woodside 60 2014-16 Iron Ore Rio Tinto Iron Ore – Yandi Mine 80
Slide 22: New Zealand
New Zealand Cos Bruyn Chief Executive Officer Infrastructure Services Technology Solutions Projects • Maintenance and operations of key public Communications Delivery of medium to large scale civil infrastructures Integrated installation of networks - fibre, and building infrastructure projects
Slide 23: New Zealand – major contracts
New Zealand – major contracts Business Examples of current major contracts Name Approx. value Duration including (NZ$m) Extensions Infrastructure Services Auckland Transport Maintenance contracts: (including Products) South West 260 2012-20 Central 250 2013-21 Hauraki Gulf Islands 90 2013-21
Slide 24: Mining
Mining David Overall Chief Executive Officer Open cut Underground Services One of Australia’s largest open cut Experienced hard rock underground Blasting mining service contractors. mining team that understands the unique nature of the industry. Providing innovative blasting solutions to Wid
Slide 25: Mining – major contracts
Mining – major contracts Business Examples of current major contracts Name Approx. Duration value ($m) Open cut Christmas Creek – Fortescue Metals Group1 700 2015-16 Boggabri Stage I & II – Idemitsu 1,800 2006-17 Karara – Karara Mining 600 2012-18 Meandu – TEC Coal 600-800 2013-19 Roy Hill – Roy Hil
Slide 26: Rail
Rail Ross Spicer Chief Executive Officer Freight Passenger Maintenance Maintenance Leading provider of frontline freight maintenance services. Maintenance provider for passenger rolling stock across Australia - committed to innovation and use of Innovative solutions offering, including 24-hour
Slide 27: Rail – major contracts
Rail – major contracts Business Examples of current major contracts Name Approx. Duration value ($m) Passenger maintenance Waratah Through Life Support – Sydney Trains 1,970 2013-43 Millennium maintenance – Sydney Trains 290 2002-17 PTA maintenance – “A-series” and “B-series” 160 2012-21 Freight mai
Slide 28: Keolis Downer joint venture
Keolis Downer joint venture Downer’s light rail and bus expertise is delivered through Keolis Downer, a joint venture between Keolis and Downer. Keolis Downer is Australia’s largest operator and maintainer of light rail, operating and maintaining the world’s largest light rail network, Yarra Tra
Slide 29: Relationships creating success
Relationships creating success Investor Day, 5 May 2015