Downer Edi Limited · ASX:DOW

Downer Edi — H1 FY2008 Earnings Presentation

14 slides from Downer Edi's earnings presentation, Feb 21, 2008

  1. Slide 1: 2008 Half Year Results

    For personal use only 2008 Half Year Results 21 FEBRUARY 2008 Agenda ƒ Zero harm ƒ Half year performance snapshot ƒ CEO’s observations ƒ Financials ƒ Summary 2 1

  2. Slide 2: Zero harm; Half year performance snapshot

    For personal use only Zero harm ƒ Zero harm is our goal LTIFR ƒ Ramping up existing 5 initiatives 12 month rolling LTIFR 4 per million hours ƒ Next step in safety journey 3 2 1 0 Jun 02 Jun 03 Jun 04 Jun 05 Jun 06 Jun 07 Dec 07 Rolling 12 month LTIFR 3 Half year performance snapshot Half Year to 31

  3. Slide 3: CEO's observations; Strong markets

    For personal use only CEO’s observations ƒ Strong markets ƒ Strong differentiated assets ƒ Great people ƒ Back to basics ƒ Going forward 5 Strong markets Global infrastructure spend USD 3.2 trillion Rest of World ƒ Global infrastructure spend is in excess of USD 3 trillion 8% Europe ƒ Asia Pacific a

  4. Slide 4: Strong differentiated assets; Great people

    For personal use only Strong differentiated assets ƒ World class build ƒ Managing large ƒ Project management ƒ Drill, blast and haul ƒ Sustainable capability dispersed workforce communities ƒ Ticket of work ability ƒ Dragline operation ƒ World class ƒ Long-term client and maintenance ƒ Mining and Ge

  5. Slide 5: Back to basics approach; Going forward

    For personal use only Back to basics approach SUSTAIN A ZERO-HARM ENVIRONMENT OPTIMISE OUR EMPOWER PORTFOLIO FOCUS ON OUR AND SHAREHOLDER PEOPLE PERFORMANCE VALUE Our Values ENGAGE & Beliefs CLIENTS 9 Going forward ƒ Strategic development program - Ramp up work started with 2nd Road - UBS inputs rec

  6. Slide 6: Market update; Revenue and EBIT growth

    For personal use only Market update ƒ We have delivered on our commitments to 31 December 2007 ƒ We see no material change to current guidance for the next period ƒ Forecasting less seasonality in H1 & H2 mix as we return to more traditional weather patterns ƒ Capex – expect to be higher than deprec

  7. Slide 7: Business momentum continues

    For personal use only Business momentum continues Turnover $b EBIT $m EMPLOYEE NUMBERS 1,000 2.8 130.5 123.7 23.7 2.6 22.1 2.3 99.2 17.5 1.8 14.6 73.4 1.5 13.0 55.7 03 04 05 06 07 031 041 05 06 07 03 04 05 06 07 Engineering Mining & Resources Works Rail Discontinued 13 Secured sales maintained – cur

  8. Slide 8: First half cash flow strong; Healthy balance sheet

    For personal use only First half cash flow strong $million December 2007 December 2006 Net Profit after tax 82.2) 80.6 Depreciation & amortisation 74.2) 67.2 Working capital movement 22.4 (191.1) Other (56.8) 26.7 Operating cash flow 122.0) (16.6) Investments 38.4 (117.0) Capital expenditure (net) (

  9. Slide 9: Returns maintained at mid teens levels; We are back on track

    For personal use only Returns maintained at mid teens levels ROE ROFE 17.2¹ 16.71 16.5 15.8 16.0¹ 15.42 14.9 12.6 13.1¹ 13.1 10.8 03 04 05 06 07 03 04 05 06 07 ROE = NPAT Rolling 12mth pre-goodwill/Equity pre-goodwill ROFE = EBIT/AFE; AFE = Avg Net Debt + Avg Equity last 3 half years ¹ Underlying ¹

  10. Slide 10: Divisional EBIT; Mining

    For personal use only Divisional EBIT Half Year to 31 December ($m) 2007 2006 % Mining and resources 40.9) 60.6¹) (32.5)% Engineering 45.6) 31.3) 45.7% Works 39.0) 31.4) 24.2% Rail 20.7) 18.4) 12.5% Divisional EBIT 146.2) 141.71) 3.2% Corporate / Unallocated (15.7) (5.2) Total Group EBIT 130.5 136.5

  11. Slide 11: Engineering; Works

    For personal use only ENGINEERING Strong divisional performance Half Year to 31 December ($m) 2007 2006 % Revenue 930.1 743.8 25.0% EBIT 45.6 31.3 45.7% EBIT / Sales 4.9% 4.2% ROFE 21.3% 18.3% Secured Sales 1.5bn 1.3bn 21 WORKS Benefits of aligned structure Half Year to 31 December ($m) 2007 2006 %

  12. Slide 12: Rail; Revenue and EBIT growth positive

    For personal use only RAIL Continued strong performance Half Year to 31 December ($m) 2007 2006 % Revenue 278.8 189.6 47.0% EBIT 20.7 18.4 12.5% EBIT / Sales 7.4% 9.7% ROFE 34.5% 28.0% Secured Sales 4.7bn 5.1bn 23 Revenue and EBIT growth positive REVENUE $M ENGINEERING HIGHLIGHTS 25% ƒ Maintaining l

  13. Slide 13: Order book growing - now $2.6bn

    For personal use only Order book growing - now $2.6bn 2007 SECURED SALES $b MINING HIGHLIGHTS ƒ $1.5bn worth of contracts announced in the 4 last 5 months ƒ Bid success rate returning to historic levels 3 2.6 ƒ Identified $5.4bn worth of work to bid on 2.2 2 1.8 1 0 Dec06 Jun07 Dec07 Mining 25 Back

  14. Slide 14: 2008 Half Year Results

    For personal use only 2008 Half Year Results 21 FEBRUARY 2008 14

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