Downer Edi Limited · ASX:DOW
Downer Edi — Asian Investment Conference (March 2005)
23 slides from Downer Edi's conference presentation, Mar 17, 2005
Slide 1: Downer EDI Limited
Downer EDI Limited Lynne Shori, Investor Relations Manager Stephen Gillies, Managing Director Ross Rinella, Executive General Manager Roche Mining 7) =
Slide 2: Introduction
Downer BE Introduction Downer EDI is a leading Australian engineering services company, providing design, operate and maintenance services to private and public owners of essential infrastructure assets. We employ 16,000 people, in over 50 countries and service a global client base.
Slide 3: Global presence map
NORTH EUROPE AMERICA MIDDLE AFRICA . ‘SOUTH SOUTH @ PAGIFIC ISLANDS AMERICA AUSTRALIA e £ NEW ZEALAND
Slide 4: Agenda
Downer BE Agenda Business Overview Stephen Gillies Case Study Ross Rinella Summary & Wrap Up Stephen Gillies Q&A
Slide 5: Business units and employees
CPG Corporation >2,500 employees EDI Rail >1,000 employees Roche Mining >3,000 employees Engineering >5,000 employees Works >3,500 employees
Slide 6: ; LOGY y)
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Slide 7: In The Press
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Slide 8: We Dominate Our Target Segments
Downer BE We Dominate Our Target Segments Identified Backlog in DOW Share of Infrastructure Spend Contestable Market Power: $10-$20 bn 18% Telco: $5 bn 13% Road: $10 bn 25% Rail Assets: $15 bn 40% gt Mining: $20 bn 26%
Slide 9: Growing the Business Model
end ack’ Growing the front’ & ‘D Business Model
Slide 10: Well Positioned & Ready For Growth
Downer BE Well Positioned & Ready For Growth Secured the superior position early on Ready for strong organic growth Early adopter of “1 stop shop” Major acquisitions completed Organic growth focus “Me-toos’” will pay up to catch up Participated in 30+ privatisations Group is operationally “ready” fo
Slide 11: Roche's Business Today
Roche’s Business Today Focused on the front’ & ‘back’ end
Slide 12: A Necessary Evolution
A Necessary . Evolution BUSINESS | DOW ac » M® Long term MODEL revenues * Relationship focus * Technical capabilities Keeping ahead of changes in outsourcing
Slide 13: Mining Operations & Blasting
Mining Operations & Blasting * Mining operations: $800m pa; Blasting: $60m pa « > 1500 people, predominantly in Australia * Competitors include Leighton/Thiess, Orica/Dyno
Slide 14: Process Engineering
Process Engineering Mineral Sands: >$50m pa Metalliferous & Coal: >$300m pa « Strong synergies with Mining Ops * Strong synergies with Mining Ops * 75% of global mineral sands « Geared to capacity expansions technology « Compete with Fluor, Bectel & WOR » 30 countries
Slide 15: Front End Feasibility & Design, Consulting & Training
Front End Feasibility & Design, Consulting & Training * QCC (Coal consulting & mine development), = Snowden’s (All metals, training & geotech management) * 45 countries, bluechip clientbase « Engaged at start up (geotech) => early intro for other Roche businesses
Slide 16: Earnings Quality Is Improving
Downer Earnings Quality Is Improving Since Roche Was Acquired in 1997 0% 0% Mine Management Alliances Services 1997 ————_—_——————> Today
Slide 17: Market Dynamics
Market Dynamics Macro Drivers Implications for Roche = Resource shortages -- changing appetite # Fewer clients and nature of outsourcin 3 # Global boundaries collapsing: » Real commodity P’s falling for 15 years Roche will need to become international, => Incr production. eg Oxiana and Sepon Mine in
Slide 18: Market Dynamics Are Positive For Outsourcing
Downer BE Market Dynamics Are Positive For Outsourcing Shortage of « Skilled labour shortages resources = Consumerables shortage « Equipment shortages « Unprecedented level of project spend « Changing nature of outsourcing Owners of resources are well-placed
Slide 19: Growth is Coming..& DOW is Ready
Downer BE / Growth is Coming..& DOW is Ready DOW’s early adoption of the 1 stop shop model Now in prime position to participate in growth Years of under-spending on essential infrastructure: - road, rail, power, telco Capacity constraining growth and competitiveness Increasing pollution & traffic co
Slide 20: Our Growth - Broadly Based & Organic
Our Growth - Broadly Based & Orga alle Engineering 213 362 568 1,170 | 106% 1,250 T% Mining & Resources 624 | 1,036 | 1,104 | 1,083 -2% 1,300 | 20% Infrastructure 426 425 577 684 19% 800 | 17% Rail 240 362 319 410 29% 450 10% Continuing Businesses | 1,503 [2,185 | 2.568 | 3,347 30% | 3,800 | 12% Dis
Slide 21: Guidance FY05
Downer BEDE Guidance FY05 Sales revenue >12% NPAT growth in line with sales >12% AS eps, @ roi, 4S RoE
Slide 22: Metrics — Further Improvements Targeted
Downer BE Metrics — Further Improvements Targeted NPAT growth Double digit for next few years Margins Continued out-performance viz peers: Maintain EBITA/Op Rev> 5%; Targeting 6-7% ROFE Short term >15% Long term, sustainable >20% Operating cash Strengthening and sustainable Gearing Unchanged & maint
Slide 23: Questions & Answers
Downer BE Questions & Answers
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