Downer Edi Limited · ASX:DOW
Downer Edi — Macquarie Australia Conference 2019
13 slides from Downer Edi's conference presentation, May 2, 2019
Slide 1: Macquarie Australia Conference
Macquarie Australia Conference For personal use only 1
Slide 2: HY19: delivering operationally and financially
Macquarie Australia Conference HY19: delivering operationally and financially Safety Earnings growth Cash conversion Balance sheet For personal use only LTIFR of 0.68 and 23.8% NPATA1 Operating cash flow Gearing of 23.8% v Our focus areas TRIFR of 3.09, growth v HY183 of $355.3m, cash 24.6% in HY18
Slide 3: Urban Services now 80% of Downer's EBITA
Macquarie Australia Conference Urban Services now 80% of Downer’s EBITA For personal use only Urban Services Mining, Energy and Industrial Services 75% 80% 4.7% 25% 20% 3.6% Revenue EBITA1 EBITA margin 12% Revenue EBITA1 EBITA margin — Road Network Management — Road surfacing and maintenance 30% Min
Slide 4: Limited construction risk
Macquarie Australia Conference Limited construction risk For personal use only EBITA composition1 Focused on projects and customers that will help drive long term service revenue Exposure to high risk markets actively limited by risk management processes focusing on quantum, type of project and
Slide 5: Downer's focus: lifecycle asset services
Macquarie Australia Conference Downer’s focus: lifecycle asset services For personal use only Downer is focused on winning and delivering secure, long term service revenue and leveraging its expertise to drive margin expansion over time. Margin Revenue Operating Engineering Maintenance Procurement S
Slide 6: Services businesses provide a high quality and predictable earnings base
Macquarie Australia Conference Services businesses provide a high quality and predictable earnings base For personal use only Consecutive financial years hitting (or exceeding) guidance 400 Actual Guidance 350 Underlying NPAT / NPATA1 ($m)1 300 250 200 150 100 50 0 Jan-16 FY16 Jan-17 FY17 Jan-18 FY1
Slide 7: Downer's shareholder value proposition
Macquarie Australia Conference Downer’s shareholder value proposition For personal use only Business Aligned to growing Increased exposure to 23.8% NPATA markets and serving low capital, service Strategic acquisitions growth quality customers oriented businesses growth v HY181,2 Efficient use Contin
Slide 8: Work-in-hand of $43.5 billion
Macquarie Australia Conference Work-in-hand of $43.5 billion For personal use only 7% 4% Mining Work-in-hand EC&M 43.5 42.0 41% 39.2 Transport Facilities Dec-18 Jun-18 Dec-17 40% Utilities 8% 8
Slide 9: Case study: Road Services
Macquarie Australia Conference Case study: Road Services Downer’s Road Services business provides a strong, vertically integrated For personal use only supply chain to customers: Scale ($2.2bn revenue) / competitive advantage Strategic/ significant barriers to entry State and local governments
Slide 10: Case study: Auckland City Rail Link
Macquarie Australia Conference Case study: Auckland City Rail Link Downer’s ability to provide integrated project management, infrastructure construction For personal use only and facilities management services was a critical element in Link Alliance securing the largest infrastructure project (NZ$4
Slide 11: Case study: Rolling Stock Through Life Support
Macquarie Australia Conference Case study: Rolling Stock Through Life Support For personal use only Downer’s passenger rolling stock platforms and relationship with the world’s largest rolling stock manufacturer in CRRC, provide a significant (>$4.5bn) and growing base of long term, high margin asse
Slide 12: FY19 outlook and goals confirmed
Macquarie Australia Conference FY19 outlook and goals confirmed For personal use only FY19 Outlook Downer confirms its previous FY19 NPATA guidance of $352 million before minority interests FY19 operational and financial goals Zero Harm: Ensure a safe environment for employees with improving injur
Slide 13: For personal use only
Macquarie Australia Conference For personal use only 13