Downer Edi Limited · ASX:DOW
Downer Edi — Macquarie Conference 2022
18 slides from Downer Edi's conference presentation, May 3, 2022
Slide 1: Macquarie Conference 2022
For personal use only Macquarie Conference 2022 3 May 2022
Slide 2: Understanding Downer
Understanding Downer For personal use only 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 so
Slide 3: Downer today
Downer today For personal use only 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 d
Slide 4: Unique exposure to critical Urban Services
Unique exposure to critical Urban Services For personal use only Market leader in most categories in both Australia and New Zealand. High market growth expected across the portfolio – weighted average CAGR 7-8%.1 Significant and increasing barriers to entry – management systems looking across the su
Slide 5: Scale and capacity in both Australia and New Zealand
Scale and capacity in both Australia and New Zealand For personal use only 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 Healt
Slide 6: Customer spend to increase well above GDP
Customer spend to increase well above GDP For personal use only 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
Slide 7: Growth to net zero – Downer's opportunity
Growth to net zero – Downer’s opportunity For personal use only 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
Slide 8: Net zero targets
Net zero targets For personal use only 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 2
Slide 9: Australia's emissions by sector
Australia’s emissions by sector For personal use only Power generation Australia emits around 634 million tonnes 35% 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% Fugi
Slide 10: New Zealand's emissions by sector
New Zealand’s emissions by sector For personal use only 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
Slide 11: To achieve a 1.5°C pathway by 2050
To achieve a 1.5°C pathway by 2050 For personal use only 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 Source: https://ourworldindata.org/future-emissions 11
Slide 12: International Energy Agency's 1.5°C pathway by 2050
International Energy Agency’s 1.5°C pathway by 2050 For personal use only Source: IEA 2021, Net Zero by 2050 12
Slide 13: Australia's long-term emissions reduction plan
Australia’s long-term emissions reduction plan For personal use only Critical pathways to net zero for Australia’s economic sectors Source: Australian Government, 2021 Australia’s Long-Term Emissions Reduction Plan 13
Slide 14: Downer's capability
Downer’s capability For personal use only 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,
Slide 15: Downer's capability
Downer’s capability For personal use only 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. Hydroge
Slide 16: FY22 trading and immediate priorities
FY22 For personal use only FY22 trading Immediate priorities Demand remains strong across the Business Units Earnings and cash performance FY22 Strong contract awards / preferred status Management of COVID-19, supply chain, workforce availability, contract pricing, cost management Challeng
Slide 17: FY23 and beyond
FY23 and beyond For personal use only Looking through the noise Weighted average sector spend growth of 7- 8% CAGR out to FY251 We are in the right sectors, at the right time! Heavily leveraged to the New Energy economy Expect strong rebound in earnings in FY23. 1. BIS Oxford Economics (2022
Slide 18: Q&A
Q&A GOVERNMENT Tn oo ori plein ere ae cals ns DY (RNG SE Qoolmenesnen|ecmen [ory 18