Macquarie Australia Conference presentation

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6 May 2020


Company Announcements Office
ASX Limited
Exchange Centre
Level 4, 20 Bridge Street
SYDNEY NSW 2000



Dear Sir/Madam

Please find attached a presentation to be given at the Macquarie Australia Conference today by Downer’s
Chief Executive Officer, Grant Fenn.

This announcement has been authorised for release by Downer’s Chief Executive Officer, Grant Fenn.

Yours sincerely,
Downer EDI Limited

Robert Regan
Company Secretary

Downer EDI Limited
ABN 97 003 872 848
Triniti Business Campus
39 Delhi Road
North Ryde NSW 2113
1800 DOWNER
www.downergroup.com

Macquarie
Australia
Conference
6 May 2020

Where COVID-19 has affected Downer
Distancing measures driving reduced productivity
New Zealand
̶Level 4 restrictions: 30% of usual services
Spotless
̶Hospitality: zero revenue / 6,000 people stood down (no JobKeeper)
̶Laundries: reduced volumes from private hospitals (no elective surgery)
Asset Services
̶Delays to non-essential maintenance and capital works
Mining
̶Travel restrictions, changed work practices
̶Closure of Palaboramine, South Africa
Yarra Trams
̶Patronage impact on fare box
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Macquarie Australia Conference 2020

Where there has been no material impact on demand
̶Roads
̶Rollingstock
̶Projects
̶Power and Gas
̶Water
̶Telecommunications
̶Defence consulting
̶Health and education (PPPs)
̶Defence base and estate management
̶Government services
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Macquarie Australia Conference 2020
89% of Downer’s
work-in-hand is
Urban Services

Immediate priorities and opportunities
Priorities
̶Strictly manage to COVID-19 requirements
̶“Cash is king”
̶Heavily restrict capital expenditure
̶Cost reduction
Opportunities
̶Stay close to customers
̶Government stimulus
̶Reset risk allocation on new work
̶Use existing contracts to expand work
̶New operating norms
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Macquarie Australia Conference 2020

Downer has a strong balance sheet
Downer has a strong balance sheet and significant available liquidity
$500 million Syndicated Bank Facility announced 20 April 2020
̶refinanced $200 million Syndicated Bank Facility maturing April 2021
̶additional liquidity of $300 million
Also extended maturity date of $130 million of bilateral debt facilities to 2022 and 2023
As a result, no debt maturing in FY20 or 1H21; debt maturing in 2H21 is now less than
$200 million (~6% of Downer’s total debt portfolio)
Interim dividend ($83 million) deferred until September 2020
Mining process suspended, Laundries process continuing
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Macquarie Australia Conference 2020

Conclusion
The vast majority of the Group’s businesses are in a good spot
Downer’s Urban Services strategy is a key strength
Downer’s significant Government customer base is a real asset
There are opportunities to adjust the business to suit the new environment
Earnings will be reduced in FY20 due to COVID-19 and necessary restructure costs
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Macquarie Australia Conference 2020

Macquarie
Australia
Conference
6 May 2020