Downer Edi Limited · ASX:DOW

Downer Edi — H1 2009 Earnings Presentation

28 slides from Downer Edi's earnings presentation, Feb 27, 2009

  1. Slide 1: Half Year Results 2009

    For personal use only Half Year Results 2009 27 February 2009 Geoff Knox, Chief Executive Officer Peter Reichler, Chief Financial Officer

  2. Slide 2: Agenda

    Agenda For personal use only ƒ Zero Harm ƒ Overview ƒ Group Financials & Divisional Results ƒ Summary & Outlook 2

  3. Slide 3: Zero Harm

    Zero Harm For personal use only Safety performance improving 2.5 Lost Time Injury Frequency Rate (per million man hours worked) 2.3 2.1 1.9 1.7 1.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan LTIFR 12-month rolling average Our aim is zero harm 3

  4. Slide 4: Significant progress on Back-to-Basics approach

    Significant progress on Back-to-Basics approach For personal use only Sustain a Zero Harm Environment Optimise our Focus on Empower Portfolio & Shareholder our People Performance Value Engage The Downer Clients Spirit 4

  5. Slide 5: Key Back-to-Basics outcomes

    Key Back-to-Basics outcomes For personal use only ƒ Zero Harm Program group wide ƒ Strategy developed and being delivered ƒ Strengthened organisation – structure, people and performance ƒ Client engagement program in place ƒ Divisions focusing on cross group opportunities ƒ Synergies program underwa

  6. Slide 6: Delivering our Strategic Plan

    Delivering our Strategic Plan For personal use only Working on clients’ critical infrastructure across the Asia Pacific 6

  7. Slide 7: Group highlights – diversified earnings stream delivering results

    Group highlights – diversified earnings stream delivering results For personal use only ƒ Turnover of $2.9b, up 6% on pcp ƒ Net profit after tax of $85m, up 4% ƒ Operating cash flow of $155m ƒ Conservative balance sheet with gearing at 36% ƒ Earnings per share of 26 cents ƒ Solid order book of $11.5

  8. Slide 8: Diversified portfolio capable of delivering through market cycles

    Diversified portfolio capable of delivering through market cycles For personal use only ■ Infrastructure 64% ■ Australia 75% ■ Mining & Metals 32% ■ New Zealand 16% ■ Energy 4% ■ Asia 7% ■ Other 2% 8

  9. Slide 9: Solid performance

    Solid performance For personal use only Six months to 31 December ($m) 2008 2007 % Turnover 2,925.7 2,766.6 5.8% EBIT 138.5 130.5 6.2% Net Profit After Tax 85.4 82.2 4.0% DPS (cents) 13.0 13.0 Diversified earnings stream delivering results 9

  10. Slide 10: Solid performance

    Solid performance For personal use only NPAT $m EPS cents 85.4 26.2 82.2 25.5 Dec 07 Dec 08 Dec 07 Dec 08 Operating cash flow $m ROFE % 155.4 122.0 16.8 7.9 Dec 07 Dec 08 Dec 07 Dec 08 ROFE = EBIT/AFE (AFE = Average Net Debt + Average Equity last three half year periods) 10

  11. Slide 11: Demand for services remains sound

    Demand for services remains sound For personal use only Order Book Order Book $b by Division $b 11.5 10.1 9.8 4.7 6.5 6.6 2.5 2.3 2.0 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Engineering Mining Works Rail 11

  12. Slide 12: PPP progress

    PPP progress For personal use only Design & Prove Deliver Procure „ 100% Tier 1 & 2 contracts „ CRC production facility up and „ Downer Project Team at CRC let, Tier 3 contracting xx.running xxoperational process well underway „ First component inspections „ Cardiff facility nearing „ 100% of bodysh

  13. Slide 13: Group Financials & Divisional Results

    For personal use only Group Financials & Divisional Results Peter Reichler, Chief Financial Officer 13

  14. Slide 14: Solid performance

    Solid performance For personal use only Six months to 31 December ($m) 2008 2007 % Turnover 2,925.7 2,766.6 5.8% EBIT 138.5 130.5 6.2% Net Interest (24.6) (26.4) (6.9)% Profit Before Tax 113.9 104.0 9.5% Tax Expense (28.5) (21.8) Net Profit After Tax 85.4 82.2 4.0% EPS (cents) reported1 26.2 25.5 2.

  15. Slide 15: Conservative balance sheet

    Conservative balance sheet For personal use only As at 31 December ($m) 2008 2007 % Total Assets 3,388.5 3,117.8 8.7% Total Equity 1,351.5 1,240.7 8.9% Net Debt1 490.1 478.6 2.4% Gearing2 36% 39% Interest cover3 5.6x 4.9x ƒ Operating cash flow of $155m, four consecutive periods of solid performance

  16. Slide 16: Group continues to deliver solid cash flow

    Group continues to deliver solid cash flow For personal use only As at 31 December ($m) 2008 2007 Net profit after tax 85.4) 82.2 Depreciation & amortisation 64.4) 74.2 Working capital movement (43.6) 22.4 Other 49.2 (56.8) Operating cash flow 155.4 122.0 Investments (net) (31.4) 38.4 Capital expend

  17. Slide 17: Works – sound Australasian performance

    Works – sound Australasian performance For personal use only Six months to 31 December ($m) 2008 2007 % Turnover 897.6 815.1 10% EBIT 39.4 39.0 1% EBIT/Sales 4.4% 4.8% ROFE 19.9% 15.7% Order Book 2.3b 1.3b HIGHLIGHTS ƒ Strong performance in Australia and New Zealand with a combined margin in excess

  18. Slide 18: Works

    Works For personal use only Turnover $m EBIT $m 897.6 39.4 815.1 39.0 Dec 07 Dec 08 Dec 07 Dec 08 ROFE % EBIT Sales Margin % 19.9 15.7 4.8 4.4 Dec 07 Dec 08 Dec 07 Dec 08 18

  19. Slide 19: Rail – another solid result

    Rail – another solid result For personal use only Six months to 31 December ($m) 2008 2007 % Turnover 440.4 278.8 58% EBIT 28.2 20.7 36% EBIT/Sales 6.4% 7.4% ROFE 30.1% 34.5% Order Book 4.7b 4.7b HIGHLIGHTS ƒ Accelerated growth driven by expansion in base business and NSW PPP ƒ Secured new business

  20. Slide 20: Rail

    Rail For personal use only Turnover $m EBIT $m 28.2 440.4 20.7 278.8 Dec 07 Dec 08 Dec 07 Dec 08 ROFE % EBIT Sales Margin % 34.5 7.4 30.1 6.4 Dec 07 Dec 08 Dec 07 Dec 08 20

  21. Slide 21: Engineering – performing well

    Engineering – performing well For personal use only Six months to 31 December ($m) 2008 2007 % Turnover 1,048.3 1071.3 (2)% EBIT 66.0 55.9 18% EBIT/Sales 6.3% 5.2% ROFE 24.4% (6.2)% Order Book 2.0b 1.5b Note: Engineering numbers include Process Engineering (Projects) HIGHLIGHTS ƒ Solid performance l

  22. Slide 22: Engineering

    Engineering For personal use only Turnover $b EBIT $m 66.0 55.9 1.1 1.0 Dec 07 Dec 08 Dec 07 Dec 08 ROFE % EBIT Sales Margin % 6.3 24.4 5.2 (6.2) Dec 07 Dec 08 Dec 07 Dec 08 22

  23. Slide 23: Mining – recovery continues

    Mining – recovery continues For personal use only Six months to 31 December ($m) 2008 2007 % Turnover 551.9 531.2 4% EBIT 26.7 22.3 20% EBIT/Sales 4.8% 4.2% ROFE 13.5% 5.6% Order Book 2.5b 2.6b Note: Mining numbers exclude Process Engineering (Projects) and Century Resources period on period HIGHLIG

  24. Slide 24: Mining

    Mining For personal use only Turnover $m EBIT $m 26.7 531.2 551.9 22.3 Dec 07 Dec 08 Dec 07 Dec 08 ROFE % EBIT Sales Margin % 13.5 4.8 4.2 5.6 Dec 07 Dec 08 Dec 07 Dec 08 24

  25. Slide 25: Summary & Outlook

    25 For personal use only Summary & Outlook

  26. Slide 26: Significant progress on Back-to-Basics approach

    Significant progress on Back-to-Basics approach For personal use only Sustain a Zero Harm Environment Optimise our Focus on Empower Portfolio & Shareholder our People Performance Value Engage The Downer Clients Spirit 26

  27. Slide 27: Synergies program starting to deliver value

    Synergies program starting to deliver value For personal use only ƒ Leadership team in place to drive synergies across the group ƒ $47m of identified synergies to be realised over the medium term ƒ Early benefits reinvested in ongoing synergies program ƒ First shared services centre operational in N

  28. Slide 28: Outlook

    Outlook For personal use only ƒ Continued demand for groups’ services ƒ No material change to FY09 guidance ƒ Continue to monitor our end-markets closely ƒ Transformation process continuing ƒ Synergies program gaining momentum ƒ Strategy delivering improved returns and opportunities 28

Downer EDI — H1 2009 Earnings Presentation on 6ix