Non-cash impairment of Mining Goodwill

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Media/ASX and NZX Release
5 February 2018

NON-CASH IMPAIRMENT OF MINING GOODWILL
NO CHANGE TO UNDERLYING GUIDANCE FOR 2018 FINANCIAL YEAR

Downer EDI Limited (Downer) announced today that it will impair the carrying value of the goodwill
for its Mining business.

Mining’s historic high levels of returns have reduced significantly due to non-renewal of two
material contracts and delays in securing alternative contracts. Downer remains positive in relation
to Mining’s prospects, however the estimated future cash flows for the Mining business do not
support the carrying value of the previously acquired goodwill.

A pre-tax charge of $77 million will be recorded in Downer’s results for the six months to 31
December 2017.

This charge is a non-cash item and will not have any impact on cash flow or the company’s
existing operations.

The impairment will be disclosed as an individually significant non-recurring item and therefore
there is no change to Downer’s underlying guidance for the 2018 financial year.

Downer is targeting underlying net profit after tax and before amortisation of acquired intangible
assets (NPATA) of $295 million before minority interests. This includes NPATA of $202 million for
Downer and NPATA of $93 million for Spotless.


Further details will be provided when Downer announces its half year results on 21 February 2018.






About Downer
Downer is the leading provider of integrated services in Australia and New Zealand and customers are at the
heart of everything it does. It exists to create and sustain the modern environment and its promise is to work
closely with its customers to help them succeed, using world-leading insights and solutions to design, build
and sustain assets, infrastructure and facilities. Downer employs approximately 56,000 people across more
than 300 sites, primarily in Australia and New Zealand, but also in the Asia-Pacific region, South America
and Southern Africa. It also owns 88 per cent of Spotless Group Holdings Limited. For more information visit
downergroup.com.

For further information please contact:
Michael Sharp, Group Head of Corporate Affairs and Investor Relations +61 439 470 145
Downer EDI Limited
ABN 97 003 872 848
Triniti Business Campus
39 Delhi Road
North Ryde NSW 2113
1800 DOWNER
www.downergroup.com