Downer Edi Limited · ASX:DOW
Downer Edi — Merger or Acquisition (October 2014)
11 slides from Downer Edi's merger presentation, Oct 20, 2014
Slide 1: Downer acquisition of Tenix
For personal use only Downer acquisition of Tenix 20 October 2014
Slide 2: Transaction overview
Transaction overview For personal use only • Downer has entered into a binding agreement to acquire 100% of the shares in Tenix Holdings Australia Pty Limited (Tenix) for $300 million on a cash and debt free basis • Tenix is privately owned and a leading provider of long term operations and maintena
Slide 3: Excellent strategic fit
Excellent strategic fit For personal use only • Strong safety performance and culture • Complementary businesses with little overlap • A leader in the electricity, gas and water sectors in Australia and NZ new core Utilities business for Downer Group • Long term operations and maintenance contracts
Slide 4: Tenix is a leader in Utilities
Tenix is a leader in Utilities For personal use only • Power & Gas – Long term power and gas network maintenance contracts – Substations panels – Other capital works panels • Water, Resources & Energy – Water and waste water treatment plant design, construction, operations and maintenance – Capital
Slide 5: Revenue
Revenue For personal use only Revenue by sector Revenue by contract type 5
Slide 6: Strong, long term relationships
Strong, long term relationships 14+ 14+ 13+ 11+ 11+ 11+ 10+ 10+ 10+ For personal use only Contractual relationship length (years) Key customers 6
Slide 7: Highly specialised, experienced workforce
Highly specialised, experienced workforce For personal use only 1,600 employees 7
Slide 8: Pro forma financials
Pro forma financials Tenix’s FY14 revenue was $791.1 million For personal use only • • Tenix’s FY14 EBIT was $29.4 million • Tenix’s FY15 revenue expected to be lower due to completion of resources projects • Tenix’s FY15 EBIT expected to be broadly in line with FY14 • Acquisition will be EPS accret
Slide 9: Summary
Summary For personal use only • Following this acquisition, Downer Group will have: – more long term, collaborative customer relationships – more long term, recurring, IP driven operations and maintenance contracts – enhanced growth opportunities – strong, leading positions in stable and growing mar
Slide 10: Questions?
For personal use only Questions? 10
Slide 11: Disclaimer
Disclaimer For personal use only 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