Downer Edi Limited · ASX:DOW
Downer Edi — Investor Day (May 2018)
21 slides from Downer Edi's investor day presentation, May 10, 2018
Slide 1: Investor Day 2018
Investor Day 2018 HOSPITAL HOTEL GAS CO LAUNDRY CLEANO SCHOOL
Slide 2: Our Purpose, Promise and Pillars
2 Our Purpose, Promise and Pillars At Downer, our customers are at the heart of Our Pillars everything we do. Thought Safety Delivery Relationships leadership Our Purpose is to create Zero Harm is We build trust by We collaborate We remain at the and sustain the modern embedded in delivering on our
Slide 3: Trends shaping Downer's strategy
3 Trends shaping Downer’s strategy HOSPITAL HOTEL GAS CO LAUNDRY CLEANO SCHOOL Increasing urbanisation Growing population Technology proliferation Government outsourcing
Slide 4: The Downer ecosystem
4 The Downer ecosystem HOSPITAL HOTEL GAS CO LAUNDRY CLEANO SCHOOL
Slide 5: Our service lines
Our service lines 5 Transport Rail Utilities Spotless Engineering, Mining Surfacing Manufacturing Power Health, Education Construction Open Cut Network Maintenance Gas & Government & Maintenance Underground Management Public Transport Water Commercial (EC&M) Blasting Bitumen & Operations Renewable E
Slide 6: Organisation structure
Organisation structure 6 Transport Rail Utilities Spotless EC&M Mining Surfacing Manufacturing Power Health, Education Engineering Open Cut Network Maintenance Gas & Government Construction Underground Management Public Transport Water Commercial Operations & Blasting Bitumen & Operations Renewable
Slide 7: Transport
Transport 7 Transport Rail Transport (Australia) Surfacing Manufacturing Customer Network Maintenance alignment Management Public Transport Scale and Bitumen & Operations efficiency Logistics Multi-modal focus Infrastructure Increasing Projects government investment $1.9bn revenue $1.1bn revenue $3.
Slide 8: Mining, Energy and Industrial
Mining, Energy and Industrial 8 EC&M Mining MEI (Australia) Engineering Open Cut Customer Construction Underground alignment Operations & Blasting Scale and Maintenance efficiency Asset & Tyre Management Extend service offering Accelerated change program $1.4bn revenue $1.4bn revenue $2.8bn revenue
Slide 9: Managing for success
Managing for success 9 Business planning and governance Risk management Annual three year plan Safety Bottom up/top down Risk aversion Target setting/guidance Legal team Common management systems and processes Bid approval process Focus on capital allocation, returns, cash conversion Project Managem
Slide 10: Managing for success
10 Managing for success Board Zero Harm Committee Audit and Risk Committee Tender Risk Evaluation Committee Rail Projects Committee Other Committees CEO Chief Financial Officer Zero Harm Strategy, Growth & Innovation Legal Project Management Office Human Resources Corporate Affairs & Investor Relati
Slide 11: Spotless integration
Spotless integration 11 Restructuring of business model to align contracts and capability by sector Investment in new leadership within our growth markets Alignment of tender management and governance process to Downer Increased investment and focus on pipeline management and business development Jo
Slide 12: Over $2 billion added to Spotless order book
Over $2 billion added to Spotless order book 12 Wins in core markets Joint approach to markets More than $400m of new Over $100m of work secured customers in our core markets through joint bidding Perth Zoo function centre DBFO Victorian Police headquarters M&E fit-out Victorian schools cleaning Bal
Slide 13: Joint bidding, market and pipeline development
Joint bidding, market and 13 pipeline development Defence: Co-ordinated Aligned NZ model: Integrated resources approach to market as Aggregation of NZ offering: End to end one of Australia’s largest scale, appointment of service offering to mineral and most diverse service country leadership and and
Slide 14: Royal Adelaide Hospital
Royal Adelaide Hospital 14 Spotless commenced Currently cash negative facilities management and with a higher number subcontract in of full time employees than September 2017 originally forecast Numerous issues Commercial discussions identified relating to are ongoing with key scope of services stak
Slide 15: Refinancing
Refinancing 15 Coordinated syndicated Book build completed Strategic goals achieved loan refinancing launched 4 May with both include: 19 March: transactions significantly – increased lender – $400m for Downer over-subscribed and well diversification (tenor split between supported by both existing a
Slide 16: Guidance confirmed
Guidance 16 confirmed Downer is targeting consolidated underlying net profit after tax and before amortisation of acquired intangible assets (NPATA) of $295 million before minority interests for the 2018 financial year.
Slide 17: Divisions
17 Divisions HOSPITAL HOTEL GAS CO LAUNDRY CLEANO SCHOOL
Slide 18: Infrastructure Services
Infrastructure Services 18 (Transport, Rail, Utilities in Australia) Roads Rail Utilities Infrastructure projects Road network management; Passenger rail rolling Telecommunications and Heavy and light rail construction asphalt production and asphalt stock: long term through- technology; HV transmiss
Slide 19: New Zealand
New Zealand 19 Transport Services Utilities Infrastructure Projects Building Projects Roads, rail, ports, airports, Power, gas, water, technology Civil, mechanical and electrical Non-residential building open space management and communications, ITS services to transport, energy, water and industria
Slide 20: Mining, Energy and Industrial
Mining, Energy and Industrial 20 Engineering & Construction Contract Mining Asset Services Global minerals technology process Resource definition, exploration drilling Asset management, reliability engineering, engineering and manufacturing and mine feasibility studies turnarounds, shutdowns and sus
Slide 21: Spotless
Spotless 21 Infrastructure & Laundries Hospitality & FM Government Defence Construction Electrical, Mechanical Health Private and Leisure, Business, Private Social Housing, Whole Estate and and HVAC Public, Industrial and Education and Resources of Government, Local Infrastructure, CASG & Accommodat