Downer Edi Limited · ASX:DOW
Downer Edi — Corporate Update (December 2006)
11 slides from Downer Edi's corporate update, Dec 8, 2006
Slide 1: Stephen Gillies, Managing Director; Guy Wannop, CEO EDI Rail
Stephen Gillies — Managing Director Guy Wannop — CEO EDI Rail i. in i i _ Downer EDI Limited 2006 1
Slide 2: Downer EDI December 2006
December 2006 Downer EDI:
Slide 3: DOW Achieves Financial Close of NSW PPP
DOW Achieves Financial Close of NSW PPP «Contract - update - Financial closed reached with all parties - Design / manufacture / maintain 72 x 8 car available trains for Sydney network — Size circa $8bn: design & manufacture $2bn / maintain $3bn «Timelines - FY07 — design / commence maintenance facil
Slide 4: DOW Consortium Member of Reliance Rail
DOW Consortium Member of Reliance Rail « _Downer’s role ~ Design — using our strong capabilities in NSW ~ Manufacture/assembly + Global procurement: Japan / China / Europe + Manufacture and components agreements with Hitachi & CRC + Assembly of carriages and commissioning at ED! Rail facility in Car
Slide 5: Reliance Rail
Reliance Rail «Equity holders — DOW 49% - holding debt funded from existing facilities ($65m) ~ AMP Capital 25% / ABN AMRO and Babcock & Brown 12.75% each « Key contractual terms with RailCorp ~ RailCorp will make payments twice a day to Reliance Rail based on availability of trains for service (FY1
Slide 6: World class capability
«World class capability ~ World leading rail company ~ Global provider of technology and trains « Relationship with DOW via EDI Rail ~ Joint venture on design, manufacture and commissioning of trains ~ The JV shares risk amongst the partners in return for improved margins « Key contractual terms AcT
Slide 7: CRC
CRC Best of breed manufacturer ~ Worlds best practice facilities — using the latest robotic capability ~ Scaled manufacturing capability - over 2000 cars a year - site has more than 8,000 employees including 1,300 engineers ~ Has worked with many of the worlds top rail providers: Hitachi / Seimens /
Slide 8: DOW Financial Implications
DOW Financial Implications » FY07 — Revenue up $100m leading to NPAT of $158m which is in line with market consensus - Cashflow + Negative in H1 due to equity contribution * Positive flows in H2 leading to a small outflow at full year « Qperational revenue beyond FY07 - Manufacturing impact in FY08
Slide 9: Risk Management
Risk Management «Design Use proven Millennium train as basis for new PPP trains (tried and proven bogie, doors, etc) "Facilities Cardiff ~ track and premises to be upgraded New maintenance facility (Auburn) — contracted to John Holland Group « Manufacture Hitachi — world leader in rail capability Us
Slide 10: Timeline
Timeline COMPONENT / PROCUREMENT / MANUFACTURE DELIVERY / COMMISSIONING / MAINTENANCE DESIGN & CONSTRUCT MAINTENANCE FACILITY CARDIFF FACILITY 4 1 4 J. 4 4 4 T T T T T T > FY07 FY08 FYO9 FY10 FY11 FY12 FY13 onward
Slide 11: A
A Downer EDI Limited 2006 11