Downer Edi Limited · ASX:DOW
Downer Edi — Downer Group — Shareholder Meeting (2016)
35 slides from Downer Edi's shareholder meeting presentation, 2016
Slide 1: Annual General Meeting
DOWNER GROUP A n n u a l Ge n e r a l Meet ing
Slide 2: Safety Procedures
SA FET Y PROCEDU RES In the case of an emergency a senior hotel staff member will come and explain the procedures. Please listen closely to the instructions and remain calm. There is one fire exit at the back of the room and one behind me – both lead to Phillip Street. When you get to Philli
Slide 3: Annual General Meeting
DOWNER GROUP A n n u a l Ge n e r a l Meet ing
Slide 4: Mike Harding, Chairman
Mike Harding Chairman Relationships creating succes
Slide 5: Strong Performance
ST RON G PERFORM A N CE Delivered on guidance for sixth successive year Maintained a very strong balance sheet with little debt and strong cash flows Fully franked dividend of 24c per share Buy back (7.9 million shares) Preferred respondent to deliver HCMT project in Victoria Strong shar
Slide 6: Safety and Board Renewal
SA FET Y A N D B OA RD REN EWA L Fatality in Western Australia highlights the importance of our continuing focus on Critical Risks Board renewal: – John Humphrey standing down after 15 years – Teresa Handicott standing for election Passing of Kevin Fletcher 6
Slide 7: Downer is Well Placed
DOWN ER I S WEL L PL ACED Excellent underlying businesses $18.6 billion of work-in-hand at 30 June 2016 Very strong balance sheet and underlying cash flows High level of liquidity Very strong and committed team 7
Slide 8: Grant Fenn, CEO and Managing Director
Gr a n t Fe n n CEO and Managing Director
Slide 9: Highlights of the Financial Year
H I GH L I GH T S OF T H E 2 0 1 6 FI N A N CI A L Y EA R Net profit after tax of $180.6 million Total revenue of $7.4 billion Earnings before interest and tax of $276.9 million Operating cash flow $447.8 million EBITDA conversion 92.8% Gearing of 4.0% with available liquidity of $1.1 bi
Slide 10: Transport Services
T RA N SPORT SERV I CES Road, rail infrastructure, bridge, airport and port capabilities Cornerstone business that continues to perform well in both Australia and New Zealand Continuing investment in facilities, products, services and people to maintain market leading positions Acquisition o
Slide 11: Technology and Communications
T ECH N OLOGY A N D COM M U N I CAT I ON S Fibre, copper and radio network businesses Performing well on nbn: – second year of five year contract – additional contract for Telstra hybrid fibre cable footprint – “We Deliver” award at annual nbn supplier summit Ongoing roll out of UFB in NZ, pre
Slide 12: Utilities Services
U T I L I T I ES SERV I CES Power, gas, water and renewable businesses Successful integration of Tenix Opportunities from privatisation, contestability and business improvement across State power distribution networks Positioned well to benefit from investment in renewable energy to meet Gov
Slide 13: Rail
RA I L Passenger and freight build, operations and maintenance, component overhauls, after-market services Awarded supply and maintenance contracts with WA PTA Waratah “Through Life Support” continues to perform well Evolution Rail selected as preferred respondent to deliver HCMT project in
Slide 14: Engineering, Construction & Maintenance
EN GI N EERI N G, CON ST RU CT I ON & M A I N T EN A N CE Industrial construction and maintenance services, NZ projects, resources based consultancies Strong performance for our customers at Gorgon and Wheatstone (major LNG projects in WA) Expanding role in Defence: – huge Government investmen
Slide 15: Mining
MINING Open cut and underground services, mine planning and design, blasting services, tyre management, mine rehabilitation Another strong result and an excellent operational performance in a very difficult market Christmas Creek contract completed Downer remains an industry leader in Austra
Slide 16: Outlook
OU T LOOK The market has responded favourably to our 2016 performance Downer is progressing well in repositioning to service increased investment and outsourcing in Roads and Rail, Public Transport, Utilities, Defence and Communications Downer anticipates that its diversity and strong market p
Slide 17: Resolutions
Resolutions Relationships creating succes
Slide 18: Item 1
I T EM 1 To c o n s i d e r a n d r e c e i ve t h e Fi n a n c i a l Re p o r t , t h e Di r e c t o r s ’ Re p o r t a n d t h e I n d e p e n d e n t A u d i t o r ’s Re p o r t o f Dow n e r fo r t h e ye a r e n d e d 3 0 J u n e 2 0 1 6 . 18
Slide 19: Item 2 A
I T EM 2 A To c o n s i d e r a n d , i f t h o u g h t f i t , p a s s t h e fo l l ow i n g ordinar y resolut ion: That Ms T G Handicott, who was appointed as a Non-executive Independent Director of the Company effective 21 September 2016 in accordance with Rule 3.3 of the Company’s Constitution a
Slide 20: Item 2 A - Proxies
I T EM 2 A – PROX I ES Voted % % of all shares For 322,435,686 99.75 75.91 Against 142,491 0.04 0.03 Abstain 247,814 n/a 0.06 Open – Useable 684,077 0.21 0.16 20
Slide 21: Item 2 B
I T EM 2 B To c o n s i d e r a n d , i f t h o u g h t f i t , p a s s t h e fo l l ow i n g ordinar y resolut ion: That Ms S A Chaplain, who was appointed as a Non-executive Director of the Company on 1 July 2008 and in accordance with Rule 3.6 of the Company’s Constitution and being eligible, off
Slide 22: Item 2 B - Proxies
I T EM 2 B – PROX I ES Voted % % of all shares For 309,573,713 95.76 72.88 Against 13,011,656 4.03 3.06 Abstain 241,950 n/a 0.06 Open – Useable 676,499 0.21 0.16 22
Slide 23: Item 2 C
I T EM 2 C To c o n s i d e r a n d , i f t h o u g h t f i t , p a s s t h e fo l l ow i n g ordinar y resolut ion: That Dr C G Thorne, who was appointed as a Non-executive Director of the Company on 1 July 2010 and in accordance with Rule 3.6 of the Company’s Constitution and being eligible, offer
Slide 24: Item 2 C - Proxies
I T EM 2 C – PROX I ES Voted % % of all shares For 321,767,145 99.54 75.75 Against 776,669 0.24 0.18 Abstain 255,825 n/a 0.06 Open – Useable 710,429 0.22 0.17 24
Slide 25: Item 3
I T EM 3 To c o n s i d e r a n d , i f t h o u g h t f i t , p a s s t h e fo l l ow i n g ordinar y resolut ion: That the Remuneration Report for the year ended 30 June 2016 be adopted.” 25
Slide 26: Item 3 - Proxies
I T EM 3 – PROX I ES Voted % % of all shares For 319,160,580 98.78 75.13 Against 3,271,176 1.02 0.77 Abstain 420,569 n/a 0.10 Open – Useable 657,743 0.2 0.15 26
Slide 27: Item 4
I T EM 4 To c o n s i d e r a n d , i f t h o u g h t f i t , p a s s t h e fo l l ow i n g ordinar y resolut ion: That approval is given to the grant of performance rights pursuant to the Company’s LTI Plan and the acquisition of shares on vesting by issue or by transfer as the Managing Director’s
Slide 28: Item 4 - Proxies
I T EM 4 – PROX I ES Voted % % of all shares For 309,586,725 95.79 72.88 Against 12,976,643 4.01 3.05 Abstain 287,596 n/a 0.07 Open – Useable 659,104 0.20 0.16 28
Slide 29: Item 5
I T EM 5 To c o n s i d e r a n d , i f t h o u g h t f i t , p a s s t h e fo l l ow i n g resolut ion as a spec ial resolut ion: That the Company modify its Constitution by renewing clause 37 which contains proportional takeover approval provisions for the purposes of section 648D of the Corporati
Slide 30: Item 5 - Proxies
I T EM 5 – PROX I ES Voted % % of all shares For 320,671,745 99.23 75.49 Against 1,807,279 0.56 0.43 Abstain 345,062 n/a 0.08 Open – Useable 685,982 0.21 0.16 30
Slide 31: Polls
Po l l s
Slide 32: John Humphrey
John Humphrey Downer *
Slide 33: Please join us for refreshments
Pl e a s e j o i n u s fo r r e f r e s h m e n t s
Slide 34: Disclaimer
DI SCL A I M ER Re l i a n c e o n t h i r d p a r t y i n f o r m a t i o n 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 reliabilit
Slide 35: Annual General Meeting
DOWNER GROUP A n n u a l Ge n e r a l Meet ing