Downer Edi Limited · ASX:DOW

Downer Edi — Investor Day (2022)

102 slides from Downer Edi's investor day presentation, 2022

  1. Slide 1: Investor Day 2022

  2. Slide 2: Agenda

    Agenda Overview – Growth to net zero Grant Fenn and Michael Ferguson 1 Making our communities better Risk management at Downer Julie Wills Peter Tompkins 8:30-9:45am Downer’s role in decarbonising the economy Ricky Bridge Morning tea Facilities & Asset Services Pat Burke 2 Infrastructure Projects Ut

  3. Slide 3: Grant Fenn, Chief Executive Officer

    Grant Fenn Chief Executive Officer

  4. Slide 4: Understanding Downer

    Understanding Downer Our Purpose Our Pillars Our Purpose is to create and sustain the modern environment by building trusted relationships with our customers. Our Promise Our Promise is to work closely with our customers to help them succeed, using world-leading insights and solutions. Our business

  5. Slide 5: Downer today

    Downer today We are the leading provider of Urban Services in Australia and New Zealand. We are critical to the sustainment and operation of a vast portfolio of government and private infrastructure. We are diversified across capabilities, markets and geographies. Our service delivery excellence dri

  6. Slide 6: Unique exposure to critical Urban Services

    Unique exposure to critical Urban Services Market leader in most categories in both Australia and New Zealand. High market growth expected across the portfolio – weighted average CAGR 7-8%.1 Group Revenue Significant and increasing barriers to entry by segment / sub-segment – management systems look

  7. Slide 7: Scale and capacity in both Australia and New Zealand

    Scale and capacity in both Australia and New Zealand 25% NZ split of BU revenue AU 20% 7% Australia (75%) % of Group Revenue 15% 4% New Zealand (25%) 10% 2% 16% 13% 1% 1% 5% 10% 1% 9% 2% 7% 6% 5% 5% 5% 4% 2% 0% Road Services Rail & Transit Projects Power & Gas Water Telco Health & Government Defence

  8. Slide 8: Customer spend to increase well above GDP

    Customer spend to increase well above GDP ▪ Unprecedented levels of Government Downer’s Urban Services Markets to 2025 investment in construction and sustainment (Australia and New Zealand - $Bn)4 160 ▪ Weighted average sector spend growth of 7-8% CAGR1, 4 140 Facilities ▪ Our scale, management syst

  9. Slide 9: Cash generative and capital light Urban Services business model

    Cash generative and capital light Urban Services business model Operating cash and capex Historical capex1 ▪ Cash conversion has averaged 88% over 450 the last 10 financial years to FY21 400 (93% excluding FY20) 350 300 ▪ Maintenance capex in-line with depreciation and 250 amortisation expense1 (~$1

  10. Slide 10: Capital allocation

    Capital allocation Target 2-2.5x Net Debt to EBITDA Maintain BBB Fitch rating Strong cash conversion Growth capital and capital light Bolt-on acquisitions projects business model enables value-enhancing capital management Share buybacks Increasing dividends initiatives Sustainability embedded in our

  11. Slide 11: Driving Business Unit returns

    Driving Business Unit returns Focus on margin Capacity for growth Defined hurdle rates improvement and within defined risk across the portfolio optimisation appetite post-divestment Increasing shareholder value through a focus on business growth and efficient use of capital to deliver consistently g

  12. Slide 12: Trading update and immediate priorities

    FY22 Trading update Immediate priorities ▪ Demand remains strong across the Business ▪ Earnings and cash performance FY22 Units ▪ Management of COVID-19, supply chain, ▪ Strong contract awards / preferred status workforce availability, contract pricing, cost management ▪ Challenges in 3Q: ▪ Pre-cont

  13. Slide 13: Looking through the noise

    FY23 and beyond Looking through the noise ▪ Weighted average sector spend growth of 7-8% CAGR out to FY25 ▪ We are in the right sectors, at the right time! ▪ Heavily leveraged to the New Energy economy ▪ Expect strong rebound in earnings in FY23. 13

  14. Slide 14: Growth to net zero – Downer's opportunity

    Growth to net zero – Downer’s opportunity ▪ A net zero emissions future will require massive adjustments to almost all Capabilities across our portfolio in areas urban infrastructure but particularly power generation, power transmission required for the journey to net zero and distribution, energy m

  15. Slide 15: Julie Wills: Making our communities better

    Julie Wills Making our communities better

  16. Slide 16: Environmental sustainability

    Environmental sustainability Downer is committed to the decarbonisation of our absolute Scope 1 and 2 GHG emissions by 45-50 per cent by 2035 from an FY18 base year, and to being net zero by 2050. Six key focus areas to ensure we meet our net zero commitments: Increasing focus on urban 1 services, w

  17. Slide 17: Environmental sustainability: Downer's response

    Environmental sustainability Emerging trends ▪ International Sustainability Standards Board’s global sustainability reporting framework ▪ EU Taxonomy on financial reporting. Downer’s response ▪ Conducted internal review of Downer’s most material climate-related risks and opportunities ▪ Evaluated th

  18. Slide 18: Social sustainability

    Social sustainability Supporting our people ▪ Group-wide Inclusion & Belonging Strategy and Action Plan 2022-24 ▪ Own Different campaign ▪ Enhanced and expanded suite of Learning and Development programs - Professional development courses - Soft skills programs - Expanded THRIVE, Downer’s female lea

  19. Slide 19: Social sustainability: supporting our communities

    Social sustainability Supporting our communities Mental health Indigenous support Workplace giving 19

  20. Slide 20: Governance

    Governance Modern slavery Low exposure to modern slavery risk in supply chain, with 96 per cent of FY21 supply chain spend in low risk countries. ▪ Refreshed modern slavery framework ▪ Updated company-wide documentation to enhance modern slavery risk assessment ▪ Established additional rigour around

  21. Slide 21: Supporting mental health

    Supporting mental health Downer prioritises the mental health and wellbeing of our people, their families and our communities. ▪ Inhouse Health team has trained more than 2,000 employees, who are now accredited Mental Health First Aiders ▪ Developed online course during COVID-19 ‒ Trained 790 people

  22. Slide 22: Peter Tompkins: Risk Management at Downer

    Peter Tompkins Risk Management at Downer

  23. Slide 23: The Downer Standard (TDS)

    The Downer Standard (TDS) TDS is Downer’s Integrated Management System, which: ▪ Applies across the entire organisation ▪ Provides the policy framework and guides our processes for decision making and governance ▪ Has content owners for all processes and lessons learnt / continuous improvement ▪ Inc

  24. Slide 24: Downer's Delivery Management Methodology

    Downer’s Delivery Management Methodology framed around the delivery lifecycle ▪ Strategic engagement for key customers to shape opportunities ▪ Job selection is critical Tools that support pipeline management and CRM, project selection ▪ Tenders and Contracts Committee (TCC) and Tender Risk Evaluati

  25. Slide 25: Ricky Bridge: Downer's role in decarbonising the economy

    Ricky Bridge Downer’s role in decarbonising the economy

  26. Slide 26: Net zero targets

    Net zero targets Australia Net zero New Zealand emissions by ▪ 26-28% below 2005 2050 ▪ 50% below 2005 levels levels by 2030 Northern by 2030. Net zero emissions by 2050 ▪ Pledged to achieve Territory 30% emissions reduction below ▪ Net zero emissions by net zero emissions by 2005 levels by 2030 205

  27. Slide 27: Australia's emissions by sector

    Australia’s emissions by sector Power generation 35% Australia emits around 634 million tonnes of greenhouse gases each year. Key Power generation (electricity) sectors: Land-use change and forestry 1% Agriculture Other fuel combustion 2% Aviation and shipping Transport 2% Fugitive emissions Transpo

  28. Slide 28: New Zealand's emissions by sector

    New Zealand’s emissions by sector Other fuel combustion Fugitive emissions 2% 1% New Zealand emits around 86 million tonnes of greenhouse gases each year. Aviation and shipping 6% Transport 19% Key Agriculture sectors: Transport Power generation (electricity) Power generation 7% Manufacturing and co

  29. Slide 29: To achieve a 1.5°C pathway by 2050

    To achieve a 1.5°C pathway by 2050 A rapid decline in GHG emissions is required by 2030 to reach a 1.5°C pathway by 2050 We have eight years to achieve this 29 Source: https://ourworldindata.org/future-emissions

  30. Slide 30: International Energy Agency's 1.5°C pathway by 2050

    International Energy Agency’s 1.5°C pathway by 2050 30 Source: IEA 2021, Net Zero by 2050

  31. Slide 31: Australia's long-term emissions reduction plan

    Australia’s long-term emissions reduction plan Critical pathways to net zero for Australia’s economic sectors Source: Australian Government, 2021 Australia’s Long-Term Emissions Reduction Plan 31

  32. Slide 32: Downer's capability

    Downer’s capability Program Operations and Program delivery development optimisation Strategy/Advisory PMO Operations and Maintenance Low emissions electricity Coal power generation – maintenance and closures Gas powered generation – operation and maintenance Renewables – wind, solar, hydro Enabling

  33. Slide 33: Downer's capability

    Downer’s capability Program Operations and Program delivery development optimisation Strategy/Advisory PMO Operations and Maintenance Energy efficiency Facilities, buildings, assets Alternate fuels Hydrogen and bio fuels (biodiesel, biogas) Enabling infrastructure (e.g. Hydrogen hubs, distribution a

  34. Slide 34: Pat Burke: Facilities & Asset Services

    Pat Burke Facilities & Asset Services

  35. Slide 35: Business profile

    Business profile ▪ Largest provider of: Health & Education Government Asset & Development Power & Energy Industrial & Marine Services ̶ Shutdown and turnaround services across Power Generation and ▪ Hospital PPPs ▪ Government ▪ Integrated ▪ Power Generation ▪ Heavy industrial buildings Facilities ▪

  36. Slide 36: National footprint

    National footprint Safety 14,000+ employees (Actual v Target) operating across every LITFR State and Territory of 0.52 v 0.90 Australia TRIFR 1.66 v 3.50 As at February 2022 Number of employees 0 > 20 21 > 150 151 > 400 401 > 600 601 > 900 901 > 1500 1501 > 36

  37. Slide 37: Market outlook

    Market outlook Power & Energy FY22 Outsourced Maintenance Market ▪ Energy transition is the primary challenge and opportunity. Percentage of maintenance outsourced Downer’s deep capabilities, combined with our global 80 strategic partnerships, position us for growth 75 ▪ Business has established the

  38. Slide 38: Market outlook

    Market outlook Health & Education FY22 Outsourced Maintenance Market ▪ Favourable market outlook underpinned by population Percentage of maintenance outsourced growth and higher community expectations post-COVID. 100 Downer is well positioned for growth and targeted strategic $1.2bn expansion 95 Pub

  39. Slide 39: Decarbonisation and energy transition

    Decarbonisation and energy transition Our extensive capabilities, leadership in industry forums and global partnerships position us as the emerging decarbonisation partner of choice. Helping our customers navigate through Transitioning our customers’ assets to new Changing the way customers operate,

  40. Slide 40: Case study: Eraring Power Station

    Case study: Eraring Power Station Location: Eraring, NSW Overview ▪ Eraring Power Station is Australia’s largest power station, supplying 10.5 per cent of power to the National Electricity Market ▪ Downer was awarded the Consolidated Maintenance Contract (CMC) at Eraring Power Station in March 2018,

  41. Slide 41: Utility scale solar farm operations and maintenance

    Utility scale solar farm operations and maintenance In addition to Design, Build and Commission, Downer delivers solar farm Operations and Maintenance Through-Life-Support. ▪ 340MW total (solar) ▪ 1.18M solar panels ▪ Over 1,250 hectares ▪ Six FT local operators at each site (average) ▪ Providing re

  42. Slide 42: Hydrogen update

    Hydrogen update Strong pipeline underpinned by prime location, our Asian Renewable Energy Hub (23MW). proximity to Asia, support Currently being revised from State and Federal Northern 12GW announced Governments, and Territory in Gladstone hub industry leadership. Queensland Western Australia Austra

  43. Slide 43: Strategic partnerships provide a competitive advantage

    Strategic partnerships provide a competitive advantage Turbines, generators, Electrolysis Fuel cells and batteries Storage and distribution Energy partners synchronous condensers and carbon capture Late stage systems negotiations with potential energy partners Internal collaboration Industry advisor

  44. Slide 44: Royal Adelaide Hospital – what we do

    Royal Adelaide Hospital – what we do Manage fleet of 25 automated 110 theatre setups completed Maintenance of building area guided vehicles (AGVs) each day of 216,000 square metres Maintenance and lifecycle AGVs complete 1,150 deliveries 25,000 calls taken by helpdesk management of over 130,000 per

  45. Slide 45: Energy efficient solutions

    Energy efficient solutions Our Asset & Development Services team continues to focus on key elements of a customer’s asset portfolio through a multi-layered product and services focus to support our customers in delivering sustainable buildings and facilities. Core deliverables focus on elements of a

  46. Slide 46: Clean air solution

    Clean air solution Downer’s initiative revolves around a Clean Air Solution – a true bespoke engineered solution, backed by Downer’s sustainability objectives and more than 100 years of leadership within the HVAC industry. Through a partnership program with our customers, the three key elements revo

  47. Slide 47: Case study: Melbourne Connect Precinct Digital Twin

    Case study: Melbourne Connect Precinct Digital Twin Stakeholders ▪ University of Melbourne PPP ▪ Built by Lendlease ▪ Operated by Downer. Project scope ▪ $500 million build with over 100,000m2 in gross floor area ▪ Three towers – student accommodation, high-rise and low-rise ▪ Fabrication laboratory

  48. Slide 48: Mark Mackay: Infrastructure Projects

    Mark Mackay Infrastructure Projects

  49. Slide 49: Business profile

    Business profile ▪ Infrastructure Projects provides a niche construction Power Transport Engineering offering in the Power and Transport sectors ▪ Rail infrastructure ▪ Engineering Procurement ▪ Transmission lines ▪ Our inhouse Engineering Services and Rail Systems ▪ Rail maintenance and & Construct

  50. Slide 50: Opportunities

    Ongoing investment creates strong pipeline Sustained investment in Transport and Power infrastructure projects Expected future Known funded projects 1 market size 2 Road $14bn 2023 Forecast annual expenditure ($bn) Energy Strategic selection criteria “swim lanes” guide our pursuit of $18bn 2023 oppo

  51. Slide 51: No transition without transmission

    No transition without transmission Significant transmission build-out required to support the renewable energy transition ▪ 45,000km of HV transmission currently in Australia ▪ Additional 10,000km required over 10 years ▪ $20bn transition funding proposed by Federal Labor ▪ Current industry capacity

  52. Slide 52: Power infrastructure

    Power infrastructure Short term target opportunities Downer’s Infrastructure Projects business is positioned to benefit from unprecedented private sector and government investment in power infrastructure. Select major project recent wins Numurkah Solar Farm 128MWp, Victoria 52

  53. Slide 53: Case study: Renewable generation and storage

    Case study: Renewable generation and storage Project Chichester Solar Farm in Western Australia – a 60MWp output completed in 2021. Project scope ▪ 60MWp output solar generation facility ▪ 60km transmission line, connecting FMG mines. Key outcomes ▪ Daytime operations at FMG mines to be powered by r

  54. Slide 54: Case study: Battery Energy Storage System

    Case study: Battery Energy Storage System Project Ballarat Energy Storage System, Ballarat Area Terminal Substation, completed in 2021. Project scope Grid connected 30MWh of energy storage at 30MW Battery Energy Storage System (BESS) Key outcomes ▪ First standalone BESS installed in front of the met

  55. Slide 55: Transport infrastructure

    Transport infrastructure Select major project recent wins Downer’s Infrastructure Projects business has been fuelled by significant investment in road and rail infrastructure. Ongoing government investment in transport Having built a strong order book, our recent focus has been to improve the qualit

  56. Slide 56: Jim Kafanelis: Utilities

    Jim Kafanelis Utilities

  57. Slide 57: Business profile

    Business profile Revenue Work-in-hand ▪ A balanced portfolio, well-diversified across Water, Power & Gas Power & Gas Telco, Renewable Energy, and Power & Gas 38% 32% - Effectively transitioned away from NBN construction Water Water 38% 49% ▪ Offer unique, innovative solutions driven by our internal

  58. Slide 58: Vision – The leading Australian Utilities partner

    Vision – The leading Australian Utilities partner Power systems Substations Solar Commercial solar on facilities and estates Traction substations Engineering Procurement and feeders Transmission and Construction Wind Tower Water Storm, waste, potable water Road network Meter reading foundations pipe

  59. Slide 59: Diversification by State and end market

    Diversification by State and end market Our strategy ensures current sources of secured revenue have been evenly spread across all key Utilities sectors including Telco, Renewable Northern Territory Energy, Water, and Power and Gas. Queensland Western Australia South Australia New South Wales ACT Vi

  60. Slide 60: Case study: Renewable Energy in Queensland Schools

    Case study: Renewable Energy in Queensland Schools Project Advancing Clean Energy Schools Customer Queensland Department of Education Contract type ▪ Engineering, Procurement & Construct ▪ Operations & Maintenance, and Measurement & Verification. Project scope ▪ Approximately 600 schools receiving r

  61. Slide 61: Case study: Helping our customers in their net zero initiatives

    Case study: Helping our customers in their net zero initiatives Project Loganholme Wastewater Treatment Plant Customer Logan City Council Contract type ▪ Engineering, Procurement & Construct ▪ Operations & Maintenance. Project scope ▪ 2MW PV Solar Farm. Key outcomes ▪ Part of a wider energy efficien

  62. Slide 62: Australia's first Biosolids Gasification Facility

    Australia’s first Biosolids Gasification Facility Loganholme Gasification – Innovation to commercialisation ▪ Sequestration of carbon approximately 3,350 tonnes of CO2 per annum ▪ Generation of approximately $1.5m in revenue per annum through biochar sales and carbon trading on international markets

  63. Slide 63: Jacob Bonisch: Defence

    8@=== Downer" _ Sie & We remember them

  64. Slide 64: Business profile

    Business profile Downer is a sovereign, capable and committed partner to Defence. Airfields Estate Development & Base Downer Professional Services (DPS) Base & Estate Management Ports and wharfs Upgrades (EDBU) Strategy IT and communications ▪ Asset management Upgrades and refurbishment of Barracks

  65. Slide 65: Defence's Capability

    Construct four River-class frigates (HMAS Burdekin, HMAS Diamantina, HMAS Awarded first generation outsourcing Shoalhaven and HMAS Murchison) for Awarded contracts for defence estate upkeep and contract for defence estate upkeep and Royal Australian Navy maintenance works (buildings and facilities,

  66. Slide 66: Defence EMOS scope – what we do

    Defence EMOS scope – what we do 1 million planned and 40,000 reactive Daily housekeeping of 15,000 maintenance FM tasks for 20,000 Land and grounds management of beds. Accommodation reception buildings, including: HV electricity; 35,000 ha. for equivalent of 28 commercial communications; powergen; d

  67. Slide 67: Defence outlook

    Defence outlook Current Defence operations Where is growth in Defence coming from? Downer Professional Services Estate Development & Base Upgrades Strategic advisor to Defence Increased spend on new military capability Increased Defence personnel on capability acquisition and ▪ New military capacity

  68. Slide 68: Case study: Energy efficient solutions

    Case study: Energy efficient solutions Project Russell offices complex Contract type Estate management and operations services (‘EMOS’) Details ▪ Russell offices complex in Canberra is effectively the services HQ for Defence ▪ Russell ‘R1’ is a six-storey building used by approximately 1,200 senior

  69. Slide 69: Dante Cremasco: Road Services

    Dante Cremasco Road Services

  70. Slide 70: Business profile

    Business profile Who we are What we do Our promise Australia’s leading supplier of integrated Road network manager Margin capture and sustainable road network and Creating infrastructure solutions Service provider safe, efficient and reliable Australia’s largest non-government journeys owned busines

  71. Slide 71: Strategic footprint

    Strategic footprint Darwin Presence in every State and Asphalt plant Territory DM Roads Depot Cairns Multisite Over the past three years, $135 million Northern Bitumen products plant has been invested in growth initiatives Territory Resource recovery site to expand our competitive advantage. Queensl

  72. Slide 72: Acquisition of Fowlers Asphalting

    Acquisition of Fowlers Asphalting Location: Gippsland, Victoria Business profile: Multi-disciplinary, integrated business offering asphalt, minor civil construction and capital works, crushing and recycling, line marking and pavement stabilisation services Acquisition profile ▪ Bolt-on acquisition i

  73. Slide 73: Growth outlook

    Growth outlook Revenue drivers Earnings margin drivers ▪ Growth of sustainable roads market share via ▪ Leveraging our manufacturing investments, R&D differentiation and cost advantage and integrated supply chain ▪ Capture of demand in Western Melbourne and ▪ Increasing RAP Western Sydney ▪ Increasi

  74. Slide 74: Sustainable roads and moving towards net zero

    Sustainable roads and moving towards net zero ▪ Resource recovery via Repurpose It and Reconomy ▪ Delivering on sustainability ▪ Investing in sustainable ▪ Sustainable Road outcomes for customers manufacturing, recycling Resource Centres ▪ Differentiating from technology and sites ▪ Extensive qualit

  75. Slide 75: Case study: Downer's Sustainable Road Resource Centres

    Case study: Downer’s Sustainable Road Resource Centres The only two closed loop sites of their kind in Australia. Locations: Brendale, Qld; and Rosehill, NSW (under construction) Features ▪ Best practice asphalt manufacturing and recycling technology ▪ 100 per cent RAP asphalt manufacturing capabili

  76. Slide 76: The sustainable road to value creation

    The sustainable road to value creation ▪ Approximately 12 million tonnes of asphalt laid in the Australian CO2e saved per increase in RAP% 35 market per annum ▪ 30 CO2e saved (tonnes) Local government has traditionally led the market in use of recycled materials. However, this is starting to shift t

  77. Slide 77: The Circular Economy

    The Circular Economy Reconophalt (asphalt mix) Repurpose It ▪ Perpetually recyclable mix that contains high percentage ▪ A leading resource recovery business based in Epping, of RAP, recycled glass, plastics and toner, with quality Victoria equal to 100 per cent virgin asphalt mix ▪ Traditionally lo

  78. Slide 78: The long thin black quarry

    The long thin black quarry 78

  79. Slide 79: Stephen Kakavas: Rail & Transit Systems

    Stephen Kakavas Rail & Transit Systems

  80. Slide 80: Business profile

    Business profile ▪ Downer provides trusted support to critical passenger train assets across Australia and is the largest national rollingstock maintainer ▪ Unique breadth of capabilities across Downer – no other organisation has all these capabilities in-house: - Rollingstock design, manufacturing

  81. Slide 81: Our capabilities and strategic footprint

    Our capabilities and strategic footprint 4 1 Northern Territory Queensland Western Australia 2 South Australia 5 New South Wales ACT Victoria 3 6 Tasmania 81

  82. Slide 82: Keolis Downer – map of operations

    Keolis Downer – map of operations 82

  83. Slide 83: Work-in-hand and projected addressable market

    Work-in-hand and projected addressable market Projected addressable market 1,800 1,600 1,400 1,200 $ million 1,000 800 600 400 200 - 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Work-in-hand Routine unsecured and recurring New lines of business Announced target opportunities Tota

  84. Slide 84: Growth opportunities

    Growth opportunities Target opportunities – current capabilities New lines of business ▪ Queensland Train Manufacturing Program – new car sets plus options, a Zero Emissions Buses (ZEB) new facility, 15-year maintenance term (option to 35 years) ▪ High Capacity Metro Trains – option sets Energy and

  85. Slide 85: Case study: Energy efficient fleet enhancements

    Case study: Energy efficient fleet enhancements Detail ▪ The HVAC unit is one of the hardest working components on Sydney Trains’ modern fleets, consuming the most energy of any subsystem ▪ 136 A Sets / B Sets / M Sets 8-car trains on the Sydney network consume ~17,000 MWh per year for HVAC. Opportu

  86. Slide 86: Onboard energy storage system – High Capacity Metro Trains

    Onboard energy storage system – High Capacity Metro Trains Downer proposal to augment the existing HCMT Add HCMT image design with on-board energy storage ▪ Materially reduces Electromagnetic Interference risks associated with running proximate to sensitive receivers in the hospitals and university

  87. Slide 87: Case study: Zero Emissions Buses

    Case study: Zero Emissions Buses Project Sydney Bus Region 8 Customer Transport for NSW Project scope ▪ Supply, operation and maintenance of 125 electric buses (replacing diesel buses over the contract life) ▪ Design, construct and installation of charging infrastructure at depots, supported by grid

  88. Slide 88: RTS to capitalise on digital D&A capability

    RTS to capitalise on digital D&A capability ▪ RTS operates in an internationally competitive environment, dominated by large international OEMs with significant capital devoted to R&D and standard platforms (rollingstock). ▪ Over a development period of more than 10 years, Downer has taken a base in

  89. Slide 89: Steve Killeen: Downer New Zealand

    r! Downe! c oo = Xo oN > ® = — OO OZ

  90. Slide 90: Strong connections to the land

    Strong connections to the land 90

  91. Slide 91: Business profile

    Business profile ▪ Aligned with Group activities Transport Utilities Facilities ▪ Well positioned to tackle growth opportunities ▪ Build, maintain and ▪ Build, maintain and ▪ Build, maintain and operate transport operate utilities operate buildings ▪ Well diversified across Transport, Utilities and

  92. Slide 92: $6.0bn work-in-hand

    Strength in the New Zealand market $6.0bn work-in-hand Work-in-hand – Public v Private Work-in-hand – Segment Private 19% Utilities 21% Facilities 41% Public 81% Transport 38% 92

  93. Slide 93: Low greenhouse gas emissions and climate resilience in New Zealand

    Low greenhouse gas emissions and climate resilience in New Zealand Climate Change Government Policy New Zealand's net emissions ▪ 2019 Climate Change Response (Zero are projected to decrease Carbon) Amendment Act with 2050 from 54.4 Mt CO2-e in 2020 to emissions reduction targets 35.0 Mt CO2-e in 20

  94. Slide 94: Accelerating the decarbonisation of our fleet and plant

    Accelerating the decarbonisation of our fleet and plant Initiatives are targeted at shifting energy sources as technology allows, along with use of fuel-efficient systems. Fleet replacement and optimisation ▪ EV and hybrid options now available for every vehicle category ▪ Transitioned 50 vehicles t

  95. Slide 95: Towards carbon zero energy supply

    Towards carbon zero energy supply By 2025, our electricity supply will be certified carbon zero energy. ▪ Downer will take up an allocation of limited availability certified carbon zero energy when our electricity supply contracts expire next year ▪ Our electricity supply will be certified to be ful

  96. Slide 96: Large player in the renewable energy sector

    Large player in the renewable energy sector Hydro power generation Wind farm Intake Gate project is part of the Tekapo hydro station, Downer is building which is protected from possible surges that could ensue the northern from a 7+ earthquake. It is contributing to the Tekapo section of the Power S

  97. Slide 97: Case study: Low carbon solution for the largest NZ infrastructure project

    Case study: Low carbon solution for the largest NZ infrastructure project Scope ▪ To help achieve City Rail Link 1 ISC rating goals by using recycled crushed concrete for two parts of the project build. Approach ▪ Green Vision partnered with Allied Concrete Ltd to supply 10Mpa strength concrete that

  98. Slide 98: Case study: Adaptative reuse for the University of Auckland

    Case study: Adaptative reuse for the University of Auckland Scope ▪ Complete refurbishment and seismic upgrade of the existing structural frame with a new building façade and thermal envelope, building services and complete interior refit. Approach ▪ Reuse as much of the old shell as possible instea

  99. Slide 99: New Zealand market shape

    New Zealand market shape Work stream Addressable Key customers A solid presence in each of our market sectors and an addressable market that has continuity market* into future years. New Zealand $27.1 billion Existing high quality customer base with growth potential available in each market. Existin

  100. Slide 100: Outlook

    Outlook ▪ Strongly positioned for success in Revenue Trend (NZ$ bn) FY23 and beyond ▪ Considering the next steps of our 3.5 CAGR ~5% growth in New Zealand 3.0 2.6 2.6 2.7 2.6 ▪ Capitalising on changing and 2.5 favourable market conditions 2.0 1.6 1.5 1.4 ▪ Carbon reduction at the centre of future in

  101. Slide 101: What the future looks like

    What the future looks like 101

  102. Slide 102: Q&A

    Q&A GOVERNMENT scHooL & gogo} poo Oooo} Joao oooa! | Imi Bees HOSPITAL oo 7/0 eter fom (ema shi fi = B Ged) Doo|eo(den\coftsn EEN} 102

Downer EDI — Investor Day (2022) on 6ix