Downer Edi Limited · ASX:DOW
Downer Edi — Shareholder Meeting (October 2009)
26 slides from Downer Edi's shareholder meeting presentation, Oct 15, 2009
Slide 1: ASX cover letter: CEO & Managing Director's Report
For personal use only 15 October 2009 Company Announcements Office ASX Limited Level 4, 20 Bridge Street Sydney NSW 2000 RE: Downer EDI AGM – CEO & Managing Director’s Report Please find attached a copy of the CEO & Managing Director’s presentation to shareholders at today’s Annual General Meeting.
Slide 2: 2009 Annual General Meeting
For personal use only 2009 Annual General Meeting 15 October 2009 Creating greater value
Slide 3: CEO and Managing Director's Report
For personal use only CEO and Managing Director’s Report Geoff Knox
Slide 4: Agenda
Agenda For personal use only • Zero Harm • Strategic Journey • Year in Review • Summary
Slide 5: Zero Harm: A leading performance in safety
Zero Harm For personal use only A leading performance in safety 2 Lost Time Injury Frequency Rate 1.8 (per million hours worked) 1.6 1.4 1.2 1 1.01 0.8 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Lost Time Injury Frequency Rate 12-month rolling average Our aim is Zero Harm
Slide 6: Zero Harm: Our commitment to sustainability
Zero Harm For personal use only Our commitment to sustainability Works: Mining: Energy saving program at our Asphalt plants Bio-diesel Program Asphalt plant burner energy usage Greenhouse Gas Emissions Reduction at Commodore Mine 340 100 average megajoules per tonne Bio-diesel Trial Start percent re
Slide 7: The Downer Journey
The Downer Journey For personal use only Successfully working on our clients’ critical infrastructure across the Asia Pacific region
Slide 8: Back-to-Basics Program
Back-to-Basics Program For personal use only
Slide 9: Strategic journey continues
Strategic journey continues For personal use only February 08 July 08 January 09 June 09 Strategy People & Organisation Operations & Growth
Slide 10: Year in Review
For personal use only Year in Review
Slide 11: Financial highlights
Financial highlights For personal use only • Net profit after tax $189.4 million,©14% • Total revenue $5,941.4 million,©6% • Earnings before interest & tax $304.8 million,©8% • Operating cash of $336.5 million,©22% • Sound balance sheet with gearing1at 39% • Earnings per share 57.9 cents,©13% • Divi
Slide 12: Milestone achievements
Milestone achievements For personal use only •Our client-focused strategy has delivered: – Melbourne Tram Franchise (JV with Keolis) worth $2.8 billion over eight years – Over $500 million of mining wins across Australia and New Zealand with clients including BHPBilliton, Wesfarmers & BMA – 10-year
Slide 13: Milestone achievements (continued)
Milestone achievements (continued) For personal use only • Our strategy also delivered: – 33 locomotives and 16 passenger car sets to five key clients, confirming the performance and reliability of our products and services – Waratah Trains (NSW PPP) achieved design certification, and the pre-produc
Slide 14: Work-in-hand remains strong at $14.6 billion
Work-in-hand remains strong at $14.6 billion (as at June 2009) For personal use only Work-in-hand by division $b nt Curre -hand -in 4.8 work 6 billion 4.1 $1 over 3.5 2.2 Engineering Mining Works Rail *Work-in-hand has replaced the Group’s order book and reflects new methodology adopted in June 2009
Slide 15: Three-year performance
Three-year performance For personal use only EPS cents Cash flow $m 336 57.9 51.3 276 32.0 106 Jun 07 Jun 08 Jun 09 Jun 07 Jun 08 Jun 09 DPS cents ROFE % 29.0 25.5 17.3 16.8 21.0 7.9 Jun 07 Jun 08 Jun 09 Jun 07 Jun 08 Jun 09 ROFE = EBIT/AFE (AFE = Average Net Debt + Average Equity last three half-ye
Slide 16: Balance sheet and funding
Balance sheet and funding For personal use only • Rating upgrade by Fitch to BBB (stable) in % October 2009 • Reinvesting in our business • Solid balance sheet with gearing of 38.9% • Operating cash of $336.5m for the full year • Successfully rolling over debt maturities and delivering on our divers
Slide 17: Delivering on our synergies program
Delivering on our synergies program For personal use only • $47 million in synergies identified • Early benefits being reinvested to support future savings and business growth • Benefits to be delivered over next 18 months Group overheads as a percentage of revenue 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0%
Slide 18: Attractive markets with Asia Pacific focus
Attractive markets with Asia Pacific focus For personal use only ■ Infrastructure 66% ■ Australia 75% ■ Mining & metals 30% ■ New Zealand 17% ■ Energy 4% ■ Asia 6% ■ Other 2%
Slide 19: Engineering Overview
For personal use only Engineering Overview Strong result driven by a disciplined approach to risk management and synergies • Significant wins during the year with quality clients including Xstrata, Chorus NZ, PowerLink, Wesfarmers, Woodside and BHP Billiton • Strategic bolt-on acquisition of Corke I
Slide 20: Consulting Overview
For personal use only Consulting ConsultingOverview Overview Consulting performing strongly and delivering greater value to the Group • Aligned Consulting operations and branding • Working across the Group to identify and drive cross-collaboration opportunities • Opportunities across power, ports, r
Slide 21: Mining Overview
For personal use only Mining Overview Mining Mining continues to make solid progress • Over $500 million of mining wins across Australia and New Zealand with quality clients including BHP Mitsubishi Alliance, Wesfarmers and Peabody • Safety performance improving – 40% reduction in LTIFR • Our mining
Slide 22: Rail Overview
For personal use only Rail Overview Rail The core Rail business performed well with revenue growth of over 30% and an EBIT Margin of over 8% • Wins during the year with BHP Billiton, Queensland Rail and Pacific National representing repeat business showing the quality and reliability of our product
Slide 23: Works Overview
For personal use only Works Overview Works The Works businesses in Australia and New Zealand performed strongly • Over 70% of Works’ revenue is derived from government at the Federal, State and Council levels • Reinforced our position as a significant maintainer of roads in Australasia • Continue to
Slide 24: Summary
For personal use only Summary
Slide 25: Ongoing demand for our services
Ongoing demand for our services For personal use only • A solid performance in FY09 demonstrating the strength of the Group • No material change to guidance • Synergies program on track • Strategic plan continues to highlight opportunities • Strong presence in growth markets including oil and gas, r
Slide 26: Please join us in the foyer for refreshments
For personal use only Please join us in the foyer for refreshments Creating greater value