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Outcome of Supreme Court proceedings

Legal20 March 2018DOWIndustrials

Media/ASX and NZX Release
20 March 2018


OUTCOME OF SUPREME COURT PROCEEDINGS


Downer EDI Limited (Downer) today announced that it has received the decision of the New South

Wales Supreme Court in respect of a claim commenced by Downer against John Holland Pty Ltd

and others.


Downer’s claim was not successful.


The claim related to the identification of ground subsidence at some locations within the Waratah

Train Maintenance Centre located at Auburn and whether the drainage system provided by John

Holland Pty Ltd would last its contracted design life and was constructed correctly. John Holland

Pty Ltd was the design and construct subcontractor that delivered the facility for Downer. The claim

was disclosed as a contingent liability in Downer’s financial statements for the 2018 half year.


Downer is currently reviewing the decision to determine what steps, if any, it will take in relation to

the Court’s decision (including whether to appeal) and the pursuit of policies of insurance.


Downer has incurred legal and other costs of approximately $25 million which it had expected to

recover as part of the proceedings. As a result of the decision, these costs will be expensed as an

Individually Significant Item in the financial statements for the year ended 30 June 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

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