Downer Edi Limited · ASX:DOW
Downer Edi — Shareholder Meeting (November 2007)
25 slides from Downer Edi's shareholder meeting presentation, Nov 2, 2007
Slide 1: Welcome to Downer EDI Annual General Meeting 2007
For personal use only Welcome to Downer EDI Annual General Meeting 2007
Slide 2: Annual General Meeting 2007
For personal use only Annual General Meeting 2007 2 November 2007
Slide 3: Welcome
For personal use only Welcome YOUR SUCCESS YOUR VISION YOUR BUSINESS 3
Slide 4: FY '07 In Review
For personal use only FY ’07 In Review YOUR SUCCESS YOUR VISION YOUR BUSINESS 4
Slide 5: Revenue and EBIT growth
For personal use only Revenue and EBIT growth Full Year to 30 June ($m) 2007 2006 % Revenue 5,362 ) 4,656 ) 15% Underlying EBIT 281 ) 230 ) 22% Reported EBIT 129) (64) Net Interest (56) (47) Profit Before Tax 73 ) (111) Tax benefit 29 ) 86 ) Net Profit After Tax 101 ) (25) EPS (cents) reported 31. 3
Slide 6: Core markets continue to be strong
For personal use only Core markets continue to be strong Turnover $b EBIT $m EMPLOYEE NUMBERS 5.4 281² 1,000 22.3 4.7 21.0 230² 3.8 17.5 3.2 14.6 189 13.0 2.7 157 140 03 04 05 06 07 03¹ 04¹ 05 06 07 03 04 05 06 07 ¹ EBITA pre IFRS ² Underlying Engineering Mining & Resources Works Rail Discontinued Y
Slide 7: Strong divisional performance in FY07
For personal use only Strong divisional performance in FY07 Total Secured Sales FY07 Secured Sales FY07 ROFE¹ % $b by Division $b 9.3 4.7 35.0 6.9 1.8 18.4 6.5 1.6 6.4 1.2 15.4 5.5 15.0 03 04 05 06 07 Engineering Mining & Resources Works Rail ROFE = EBIT/AFE; AFE = Avg Net Debt + Avg Equity last 3 h
Slide 8: Projects Update
For personal use only Projects Update One project to finish – expected completion Q1 2008 Process Engineering Iluka NewPac Carborough Foxleigh Isaac Downs Plains D IES S E S E S E TE EA EA EA LE VER L L L E D MP O RE RE RE ET CO REC DO F DO F DO F MP L KIN G DE E DE E DE E CO S EE Energy Systems Ali
Slide 9: Mandate for Change
For personal use only Mandate for Change A review of my first 21 days – revised operating structure CEO CEO CEO CEO CEO Guy Wannop David Cattell Wayne Nolan Damien O’Reilly Peter Reidy YOUR SUCCESS YOUR VISION YOUR BUSINESS 9
Slide 10: Mandate for Change
For personal use only Mandate for Change UBS appointed to assist in analysis of the business and its markets. 2nd Road appointed to facilitate Strategic Review YOUR SUCCESS YOUR VISION YOUR BUSINESS 10
Slide 11: Business review
For personal use only Business review We have made significant progress WE ARE HERE Examine business Test it against Review business Outcomes & actions strategy business streams streams from review YOUR SUCCESS YOUR VISION YOUR BUSINESS 11
Slide 12: Examine Business Strategy
For personal use only Examine Business Strategy PLAYING THE GLOBAL INFRASTRUCTURE EVOLVING MARKET FOR INFRASTRUCTURE INFRASTRUCTURE EMERGES AS NEW ASSET BOOM FUNDING & DEVELOPMENT CLASS “As the nation’s—and the world’s—bridges, “Public private partnerships are here to stay and may “The private secto
Slide 13: Resource constraints are only going to get worse
For personal use only Examine The Business Strategy Resource constraints are only going to get worse 250,000 Boomer Gen X Gen Y Millennials 200,000 150,000 150,000 Dramatic drop-off in workforce 100,000 participation. 50,000 50,000 0 1970 1990 2030 1950 2007 2050 Net growth in working age population
Slide 14: The value proposition is stronger than ever
For personal use only Examine The Business Strategy The value proposition that gave rise to Downer EDI in the first place is stronger than ever Western Demographic economies Emerging shift leading to challenged by discontinuities resource infrastructure constraints. boom. YOUR SUCCESS YOUR VISION YO
Slide 15: The value proposition is stronger than ever
For personal use only Examine The Business Strategy The value proposition that gave rise to Downer EDI in the first place is stronger than ever Western Demographic economies challenged by Downer shift leading to EDi resource infrastructure constraints. boom. YOUR SUCCESS YOUR VISION YOUR BUSINESS 15
Slide 16: Writing our new chapter
For personal use only Writing our new chapter We have revisited our business and committed to a shared mission for the future Sustaining infrastructure so communities thrive YOUR SUCCESS YOUR VISION YOUR BUSINESS 16
Slide 17: Superior Value Creation
For personal use only Writing our new chapter Superior Value Creation YOUR SUCCESS YOUR VISION YOUR BUSINESS 17
Slide 18: We will lead the market in services to infrastructure
For personal use only Writing our new chapter We will lead the market in “services to infrastructure”. . . . by only playing where we can outperform risk. Targeting income streams that last the duration of the asset. Fund > Design > Construct > Operate > Maintain > Optimise > Recycle Unproven Pri
Slide 19: We will focus on what we do best
For personal use only Writing our new chapter We will focus on what we do best & will be driven by core values Building “We deliver.” Relationships WHAT WE DO BEST Engaging our Creative people Problem-solving YOUR SUCCESS YOUR VISION YOUR BUSINESS 19
Slide 20: What will we do to get there
For personal use only What will we do to get there Focus on five key areas Governance Play only where we have proven to outperform risk. Core Build on our critical core Competencies competencies & share Culture the knowledge. Transparent accountability Financial around financial performance Focus &
Slide 21: Next Steps
For personal use only Next Steps WE ARE HERE Examine business Test it against Review business Outcomes & actions strategy business streams streams from review YOUR SUCCESS YOUR VISION YOUR BUSINESS 21
Slide 22: Updates
For personal use only Updates Sale of Century Resources NSW PPP – Progress report – CRC YOUR SUCCESS YOUR VISION YOUR BUSINESS 22
Slide 23: Q1 Financial Update
For personal use only Q1 Financial Update Performance in line with expectations. Quarter 1 to 30 September ($m) 20081 2008 2007 % Revenue 1,332 1,271 5% EBIT 58.2 50.12 16% ¹ Unaudited ² Underlying EBIT Q1 operational result in line with expectations Guidance for FY08 – EBIT of $280m in line wit
Slide 24: Divisional Update
For personal use only Divisional Update Most divisions perform in line or ahead of expectations Divisions Commentary Strong market demand in industrial and transmission markets Ahead of expectations in Q1 Australian operation continues to grow UK operations recovering – management change in
Slide 25: Thank you
For personal use only Thank you 2 November 2007