Investor Day presentation

Investor Day
28 April 2021

Investor Day 2021
2
Introduction
and Group
Strategy
8:00 –
9:00
Grant Fenn
Group CEO
Julie Wills
Group Head of
Sustainability
Michael
Ferguson
Group CFO
9:00 –
10:15
Dante Cremasco
EGM Road
Services
Stephen
KakavasE GM
Rail & Transit
Systems
Mark Mackay
E GM
Infrastructure
Projects
Transport
Utilities
Trevor
Cohen
E GM
Utilities
10:30 –
10:55
Morning Tea 10:15
– 10:30
Asset
Services
10:55 –
11:15
Pat
Burke
E GM
Asset
Services
Defence
11:15 –
11:40
Andrew
Foster
E GM
Defence
Systems
Facilities
11:40 –
12:10
Peter
Tompkins
CEO
Spotless
New
Zealand
12:10 –
12:40
Steve
Killeen
CEO
New
Zealand
Q&A 12:40
– 13:00
Lunch 13:00

Grant Fenn
Downer CEO
3

Understanding Downer
4
Our Purpose
To create and sustain the modern
environment by building trusted
relationships with our customers
Our Promise
To work closely with our customers to
help them succeed, using work
leading insights and solutions
Our Pillars

Urban Services journey
5
Transport
Utilities
Facilities
EC&M
Asset Services
2010
41%
32%
17%
$6.1bn
2015
38%
15%
26%
21%
$7.4bn
Post-divestments
49%
18%
6%
27%
Mining
Work-in -hand$20.4bn
$18.5bn
$36.2bn
as at 31/12/20
Revenue

Downer today
6
% OF CORE REVENUE% AUSTRALIA/NZ
TRANSPORT49%75/25
Road Services24%70/30
Rollingstock Services12%100/0
Projects13%60/40
UT ILIT IES18%75/25
Power and Gas8%85/15
Water5%75/25
Telecommunications5%60/40
FACILIT IES27%70/30
Health and Education5%90/10
Government10%80/20
Defence8%95/5
Building4%10/90
ASSET SERVICES6%100/0

90%
10%
Govt / Govt-backedNon Govt
Urban Services work-in-hand $36.2 billion
7
WIH by Service Line
Customers
Transport
$16.8bn (47%)
Facilities
$12.7bn (35%)
Utilities
$5.2bn (14%)
Asset Services
$1.5bn (4%)

WIH reflects long term contract profile
8
WIH profile ($bn)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2H21FY22FY23FY24FY25FY26+
TransportUtilitiesFacilitiesAsset Services

9
Strategy shaped by four major trends –
Are they still relevant?
Growing population
Increasing urbanisation
Government outsourcing
Tech nology

Population
10
Australia’s population is expected to
be 667,000 smaller by FY25 than the
pre-COVID trajectory
Net overseas migration (NOM) has
been the largest contributor to
population growth over the past 10
years, and has also been the hardest
hit by COVID-19
NOM is expected to bounce back by
2022/23
Federal Government committed to
high levels of NOM for continued GDP
growth and skills shortages
High levels of population growth in the
major cities will continue to drive
Government infrastructure and
services expenditure
© 2021DeloitteAccessEconomics.Deloitte ToucheTohmatsu
Sourc e:Aust ralian Bureauof St at istics; Deloit teAccessEc onomics
ComponentsofAustralian population growth

New macro trends
Bigger Government at all levels
̶Unprecedented levels of fiscal stimulus
̶Infrastructure and services key delivery methods
Decarbonisation of the economy (accelerating)
̶Driven by capital providers (banks and equity)
̶Business way ahead of Government
̶Significant opportunity for Downer
Geopolitical tension
̶Defence spending
̶Sovereign supply capability
̶Localisation
11

Key market outlook
12
Source:Australian Bureauof Statistics; DeloitteAccessEconomics
© 2021Deloit t eAccessEconomics.Deloit t e T oucheT ohmat su
Australianeconomicgrowth
Transportsectoroutput
Utilitiessectoroutput
Constructionsectoroutput

Key market outlook
13
© 2021DeloitteAccessEco nomics.Deloitte T oucheT ohmatsu
Kilometresof majornewroadbycompletiondate
Squaremetresofmajornewofficefacilitiesbycompletiondate
Sourc e:Deloit t eAccessEc onomic sInvestmentM o nit or
Governmentspendingontransportandcommunicationinfrastructure
Sourc e:2020-21 C o mmo n w e a lt hBudget

Capital management
Maintenance of BBB Fitch rating
Net Debt managed within 2-2.5x EBITDA
Dividends increasing to 60-70 % of NPATA over time
On-market buy-back ~$400m
No major refinancing required in the next 24 months
Capital and covenant headroom available for growth
14

~$400m program launched 28 April
On-market buy-back is the most EPS accretive option for shareholders
Total number of shares purchased will depend on share price levels and other
capital requirements
Leverage comfortably within target range of 2-2.5x Net Debt to EBITDA
Headroom for strategic M&A
Downer will purchase a maximum of 10% of shares on issue
15
On-market buy-back

Cash generation
Diversified and resilient earnings from critical service revenues; unable to be turned off
Agile and robust risk systems and business model
Expectation of 90-100% normalised EBITDA cash conversion
No net reduction through the cycle in Free Cash Flow due to exit of Mining and Laundries
16

Immediate priorities
17
FY21 Earnings and Cash performance
̶Strong performance year to date
Sale of remaining non-core assets (Mining Open Cut East and Hospitality)
̶Sale process underway for Open Cut East
̶Information Memorandum for Hospitality currently in the market
FY22 – FY24 Business Planning (underway)
̶Strong markets should drive revenue growth
̶Focus on margin improvement
̶Refinement of corporate structure
Implementation of The Downer Standard
̶Single certification of Quality systems (achieved)
̶ISO 27001 – Information Security Standard (18 months)

Immediate priorities
18
Growth
̶Organic
oTake advantage of increased Government spend in Urban Services markets and
opportunities in first generation Government outsourcing
oMargin improvement (delivery execution, market position)
oInvestment in technology (cyber resilience, production facilities and workforce
management)
oBrand development / increased Government focus
̶Acquisition (“bolt on”)
oDefence (Sovereign capability)
oStrengthen value chain in existing markets

Julie Wills
Head of
Sustainability
19

Sustainability at Downer
At Downer, Sustainability means:
̶Sustainable and profitable growth
̶Providing value to our customers
̶Delivering our services in a safe and environmentally responsible manner
̶Helping our people to be better
̶Advancing the communities in which we operate
Continuing focus on Zero Harm and our people
̶Leader in its sector which is a market differentiator
̶Accredited mental health first aid training program
̶Modern Slavery Statement
Our Sustainability performance and reporting continues to be industry leading
̶S&P Global listed Downer in its 2021 Sustainability Yearbook (top 15% for our industry
sector) and awarded Downer “Industry Mover Status” (strongest year on year score
improvement)
20

Climate resilience and decarbonisation
Downer’s Urban Services strategy delivers environmental and social benefits including a move to
lower capital intensive and lower carbon activities, supporting Downer’s decarbonisation pathway
There are considerable opportunities for Downer that outweigh identified risks, assisting in lower
cost of capital and increased margins
The sale of Mining and Laundries supports our decarbonisation pathway reducing our Scope 1
and 2 emissions by 35% or 206,000 tonnes of carbon dioxide equivalent
21
Identified risks:
̶Impacts of increasing energy costs
̶Exposure to extreme weather events
̶Exposure to thermal coal contracts
̶Changing design and construction requirements
(also an opportunity)
Identified opportunities:
̶Existing capabilities to service new and adjacent
markets e.g. hydrogen
̶Existing renewable energy capability and presence
̶Circular economy to diversify product offering
̶Response services to extreme weather events
̶Increased investment in upgrading infrastructure to
be more resilient to extreme weather events
̶Infrastructure for ElectricVehicles

Downer’s decarbonisationjourney
22
20082012/1320162019
2020
20092015
2018
20202021
Board Sustainability Policy
Saf ety and Env ironmental Targets
included in Group STI plan
Emissions targets and
decarbonisation plans linked
to Group STI plan
Consolidation of Group
Env ironmental Sustainability
Policy and Procedures
commenced
Science Based
Aligned Target
Sustainability-linked loan
First Sustainability
Report
ISCA MembershipTCFD Commitment
Urban Serv ices
Strategy
Science Based Target Initiative
Registration and Validation
•Scope 1 & 2 GH G em i ssi ons r eduction
tar get. N et zer o by second hal f of the
centur y
•Scope 1 & 2 & 3 GH G em i ssi ons r eduction
tar get. Scope 1 & 2 -N et zer o by 2050.

Climate resilience and decarbonisation
Downer has committed to reduce our Scope 1 and 2 GHG emissions by 45-50% by 2035 and
be net zero by 2050. This commitment was registered with the SBTion 21/3/2021
Downer is well positioned to contribute to Australia and New Zealand’s energy transition
Downer’s clear pathway to net zero is aligned to its Urban Service strategy:
̶Divesting high capital, carbon intensive industries
̶Continued focus on energy efficiency and GHG emission reductions
̶Decarbonisation through new technology and fuel switching
̶Decarbonising Downer’s fleet through EVs and alternate fuel vehicles
̶Increasing uptake of renewables
̶Reducing Scope 3 emissions
23

24
Pathway to Net Zero
Urban Services
Strategy
Divesting from high
capital, high carbon
intensive industries
and focusing on
providing urban
services
Energy Efficiency
HVAC improvements,
LED lighting, fuel
efficiency
Fuel Switching
Switching to lower
emission fuels in
Downer’s fixed assets
Decarbonisation of
Fleet
EVs and Alternate
Fuel Vehicles
Renewables, grid
and onsite
Increased uptake of
renewables both on
and off-grid
Downer will continue
to make investment
decisions and
strategic moves to
support its Urban
Services strategy
Downer has significant
influence in it own
fixed assets, and the
assets that it
constructs and
maintains
Downer is a leader in
Australian asphalt
production and is
taking a lead position
in cleaner use of fossil
fuels in asphalt plants
Downer contributes to
infrastructure that
supports EV rollouts,
including the design,
construction and
maintenance of poles
and wires
Downer constructs
and maintains
renewables such as
wind farms, battery
storage, poles and
wires to support an
increased renewables
uptake
Scope 1 & 2
Downer’s role
Downer has a role to play in reducing its direct emissions profile, but also
contributes to decarbonisation initiatives across the broader economy.

25
Scope 3 pathway
Low carbon
materials
A focus on asphalt,
construction materials
(e.g. concrete and
steel)
Customer and
supplier
commitme nts
To energy, emissions
reductions as well as
overall resource
usage
ISCA IS ratings
For major projects,
inclusive of carbon,
climate change risk
and recycled materials
Customer and
supplier EVs and
Alternate Fuel
Vehicles
The rollout of EVs will
support customers’
and suppliers’ ability
to reduce their
transport emissions.
Customer and
supplier grid
emissions
Increased renewables
in the grid will support
customers’ and
suppliers’ emissions
reductions
Downer has the ability
to work with suppliers
to encourage lower
embedded carbon, or
switch to alternate
suppliers.
Downer will work with
its customers to
devise commitments
which are in line with
Downer’s overall
strategy.
Downer is a leader in
Australian asphalt
production so can
take a lead position in
cleaner use of fossil
fuels in asphalt plants.
Downer contributes to
infrastructure that
supports EV rollouts,
including the design,
construction and
maintenance of
distribution networks
poles and wires.
Downer constructs
and maintains
renewables such as
wind farms, battery
storage, poles and
wires to support the
increased uptake of
renewables in the grid
Scope 3
Downer’s role
In 2021 Downer registered its Science Based Target with the SBTi, which
includes a target for Scope 3 emissions.

26
Transport
Road
Services
Dante Cremasco
EGM Road Services
(Australia)

Road Services
27
Downer is the largest non-
government owned road
infrastructure services business in
Australia and New Zealand
W e maintain >36,000km of road in
Australia and >25,000km in New
Zealand
Very strong Government customer
base:
̶All Australia’s State road
authorities
̶NZ Transport Agency
̶Numerous Local Government
Councils and Authorities in both
countries

Total road maintenance (AU)
Contracting v In House (AU)
Road Services
Government stimulus to boost road maintenance
̶Our key customers are State and Local governments;
over $1bn road maintenance revenue in Australia in
FY20
Federal and State programs, plus maintenance backlogs,
will see a jump in local road maintenance (see graph on
right)
More contracting anticipated (see graph on right)
All levels of government are requiring industry to put more
recycled content into infrastructure to solve our waste
challenge:
– National Waste Strategy 2020
– Too Good to Waste (NSW )
– Recycled First (Victoria)
– Supporting the Circular Economy (SA)
28

Western
Australia
Northern
Territory
South
Australia
Queensland
New South
Wales
ACT
Tasm ani a
Victoria
Road Services
29
Extensive, strategic footprint in both Australia and New Zealand
M el bour ne
C anber r a
H obar t
Adel ai de
Per th
Sydney
Br i sbane
C ai r ns
Darwin
Ger al dton
DEPOT
DM RO ADS
MULTISITE
ASPHAL T PL ANT
BI T UMEN PRO DUCT S PL ANT

Road Services
Efficient and predictable journeys
Environmental sustainability
Putting the road user first
Enabler for economic prosperity
Solving our customers’ challenges
Safety
Surfacing and maintenance services to road network managers and owners,
including maintenance services, asphalt, bituminous products, remediation and
stabilisation and traffic services.
Road, intelligent traffic systems and smart city asset and network management
including long-term strategic decision making, advice to owners and work program
management
Imports, manufacturesand supplies bituminous and non-bituminous road surfacing
products using virgin and re-purposed materials. Extensive R&D, innovator of new
products. Part of the circular economy turning waste products into high value
materials for self-use or external sale
Value
proposition
Tailwinds
30
Population growth
Infrastructure investment incl. COVID stimulus
Shift to larger contracts and
contractor use
Waste a priority for government
Environmental sustainability focus
Smart City technology
Customers
Government road authorities
Localcouncils
Waste businesses
Airports and ports
Civil contractors
Toll and other road owners
Rail authorities (NZ)
Road Network Manager
Service Provider
Manufacture / Supply
Margin capture
Competitive advantage from leading positions in each part of the value chain

Road Services and the circular economy
31

32
Transport
Rail &
Transit
Systems
Stephen
Kakavas
EGM Rail & Transit
Systems

Major investment in rail projects drives market
outlook for the next 5 years
33
Source: ANZIP: Australia and New Zealand Infrastructure Pipeline
Number of
Projects
542519
$7.6
$1.4
$29.2
$39.1
$0
$10
$20
$30
$40
$50
Prospective PipelineCredibly ProposedAnnouncedUnder procurement
NSW
VIC
Commonwealth
NZ
WA
ACT
QLD
SA
NT
TAS
Pipeline of rail projects by status ($billion)
Federal and State Governments have not just
announced major rail projects, they are proceeding
with procurement within the next 5 years
Trend towards complex, integrated rail projects
with system integration capability:
̶Sydney Metro
̶Suburban Rail Loop
̶Auckland Light Rail
̶Queensland New Rollingstock

Downer’s competitive advantage positions
Rail & Transit Systems for growth
34
Sites strategically
located in growth
hubs in VIC,
NSW, QLD, WA
and SA
Scale of sites
positions Downer
for further growth
Experience to
deliver local
content and
workforce
development
Capability covers:
̶Rollingstock
̶Infrastructure
̶Rail Systems
̶Operations and
Maintenance
̶System
integration
No other player
has all capabilities
in-house
Condition
monitoring and
data analytics
New rollingstock
concept with
significantly
reduced CO2
emission
Over 100 years’
experience
Delivering largest
new fleets in
Australia
Largest national
rollingstock
maintainer
Largest private
provider of multi-
modal passenger
transport
International
expansion
New segments in
transport markets
New partnerships
Strategic sites
Unique breadth
of capabilities
Innovative
solutions
Leading market
position
Expansion
Opportunities

Downer’s strategic footprint in growth hubs
35
Maryborough
Cardiff
Newcastle
Sydney
Auburn
Gold Coast
Pakenham
Newport
Melbourne
East Preston
Nowergup
Claisebrook
Mandurah
Adelaide
Service Delivery Centre
Fleet Maintenance Centre
Project Office
Light Rail Operations
Heavy Rail Operations

Our urban asset management services deliver
EPC projects with long-term accretive revenue
36
Downer is focused on winning and delivering secure, long-term service revenue and leveraging its
expertise to drive margin expansion over time
M argin
Re v enue
Selective participation
Focus on O&M markets
Defensive, long term, predictable revenue with opportunities for top-line growth
Ability to improve margin through operational efficiencies and innovation over time
Diverse and high quality customer base
Lower risk to margin compared to construction
Accretive revenue with option sets and incremental fleet enhancements

Rail & Transit Systems in New South Wales
Waratah Trains:
̶78 eight car sets
̶Largest rollingstock order in Australia’s history
Sydney Growth Trains (SGTs; Waratah Series 2):
̶24 ordered in 2016; plus 17 in 2019 = 41 eight car set
̶Fastest delivery of suburban trains in Australia
Fast delivery of SGTs through COVID-19 is testament to
Downer’s strong engineering and project management
capability across a global supply chain.
Combined Waratah/SGT fleet = 119 eight car sets
Transport for NSW has unexecuted options for up to an
additional 60 Waratah/SGT trains
Downer’s state-of-the-art Auburn Maintenance Centre
maintains more than 50% of Sydney’s passenger trains:
̶Millennium fleet (35 four car sets) until 2027
̶Waratah/SGT fleet (119 eight car sets) until 2044
37
Waratah Series 2 train

Rail & Transit Systems in Victoria
High Capacity Metro Trains:
̶65 seven car sets
̶New state-of-the art maintenance facility
̶Light service facility
̶Maintenance of trains until 2053
̶Interface with high-capacity signalling
̶Largest rollingstock order in Victoria’s history
Delivering critical integrated rail infrastructure as a system
Downer is delivering on its commitments in relation to local
content and workforce development
The project progresses along all stages:
̶5 HCMTs received Qualified Provisional Acceptance
̶200 cars manufactured Downer’s Newport facility
̶27 sets are at the purpose-built Pakenham East
maintenance facility for testing or awaiting acceptance
The contract includes options for 35 + 25 additional trains
Delivering five year program to refurbish >400 trams, the
largest tram overhaul project in the world
38
HCMT Pakenham East Maintenance Facility,
Australia’s largest rollingstock depot

Rail & Transit Systems in Queensland and WA
Queensland
Modifying 75 New Generation Rollingstock trains until
2024
2020 Rail Fusion Alliance Agreement: range of services
for Queensland Rail fleet including overhauling Tilt Trains
and other enhancement and life extension works
R&D: conversion of an existing Queensland Rail
locomotive into a hydrogen fuel prototype
Western Australia
Downer-Bombardier JV maintaining Transperth’s A and B
Series fleets until 2026
39
Maryborough Service Delivery Centre, QLD

Rail & Transit Systems: Keolis Downer
Keolis Downer is Australia’s largest private
provider of multi-modal transport solutions,
Australia’s largest light rail operator and a
significant operator of buses
250 million passenger journeys each year
Operates and maintains:
̶Melbourne: Yarra Trams, the largest tram network in
the world
̶Gold Coast: G:Link light rail
̶Newcastle: an integrated public transport system with
light rail, buses and ferries
̶Adelaide: heavy rail network
̶Bus operations: >1,000 buses (NSW, QLD, WA, SA)
Works with Governments to develop new forms of shared
and customised mobility such as on-demand transport and
autonomous vehicles
40
Yarra Trams, Melbourne

41
Transport
Projects
(Australia)
Mark Mackay
EGM Infrastructure
Projects

Projects – Australia
Significant government
investment in transport
and power infrastructure
Roads and Rail
National Roads market of $27bn
per annum, peaking in FY24
National Rail market of $14bn per
annum, peaking in FY24
State and Federal fiscal stimulus
post COVID
Power and Renewables
Strong, long-term outlook e.g.
decarbonisation and grid
connections
$30bn pipeline of identified projects
and growing
42
0
10
20
30
40
50
60
FY04FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25
Road, Rail and Power work done & forecast
($bn)
(Public & Private)
RoadsRailwaysPower
Forecast
Source: ABS, BIS Oxford Economics April 2020

Projects – Australia
43
Ver y selective approach in a large market
Strategic “swim lanes” guide our pursuit of
opportunities. Criteria include:
–Commercial model
–Customer
–Capability
W e are prepared to say “no”
More “risk sharing” contracts are coming to market
which means more opportunities for Downer
Strategic
alignment
Commercial
Model
CapabilityCustomer

44
Commercial Operating Model
Delivering
For
Success

Transmission projects
Large demand for new HV transmission lines
ElectraNet’sEyre Peninsula Link will provide a new 262km, double circuit 132kV
Transmission Line from Cultanato Port Lincoln on the Eyre Peninsular. Downer commenced
delivery of this $245m project in February 2021
Alinta Energy’s Chichester Solar Project in WA’s East Pilbara region comprises a 60MW solar
farm, three substations and 65km of transmission lines connecting the project to the existing
network. Downer is delivering the EP&C of this $160m project
W e anticipate strong renewables opportunities with Hydrogen/ Battery storage/ Solar
integrated solutions
45

Transport projects
$220 million Newcastle Light Rail for Transport for NSW –Managing Contractor model
~$170 million to date for Transport for NSW’s Access Program (upgrading train stations to improve
accessibility for disabled persons) – Managing Contractor framework
$220 million Warrnambool Line Upgrade for Rail Projects Victoria – D&C model; scheduled for completion
in first quarter of 2022
$230 million Berry to Bomaderry Princes Highway upgrade for NSW Roads and Maritime Services –
Downer-SW joint venture, scheduled for completion in 2022. Construct only
$100 million upgrade of existing infrastructure (e.g. runways, taxiways) at RAAF Williamtown – ECI
contract to construct only
$65 million Denny Avenue Level Crossing Removal (Perth) for WA Public Transport Authority, scheduled
for completion end of calendar 2021. Utilities cost plus model
As a member of the $850 million NEW estAlliance, Downer is delivering the 30km expansion of the
passenger rail network in Perth; scheduled to be completed in 2024
46

47
Utilities

Utilities in Australia – a balanced portfolio
As NBN construction contracts have rolled off, Downer has won significant new contracts:
̶NBN Unified Field Operations (~$320M over 8 years)
̶Telstra Field Services (~$330M over 5 years)
̶AusNet operational and maintenance services for power and gas networks (~$950M over 5 years)
̶Confluence Water JV for Sydney Water (~$2B over 10 years)
̶Logan City Council (~$520M over 5 years)
̶Urban Utilities (~$250M over 5.5 years)
48
Telco & New
Energy
~25%
Power and
Gas
~35%
Water
~40%
Revenue
Telco & New
Energy
~25%
Power and
Gas
~35%
Water
~40%
Wor k-in-hand

Utilities in Australia
49
Power Networks
Water
Telco
Gas Networks
New Energy

15%
85%
OutsourcedInsourced
25%
75%
DownerOpportunity
Power distribution
maintenance market ~$7B
Outsourced market ~$1.1B
Power networks
50

55%
45%
OutsourcedInsourced
30%
70%
DownerOpportunity
Gas distribution
maintenance market ~$1B
Outsourced market ~$550M
Gas networks
51

Power and Gas – customers
52
Victoria

AusNet Services case study
53
2000– Downer awarded contract to operate
and maintain the central region of AusNet’s
electricity distribution network
2004– Downer awarded contract to operate
and maintain AusNet’s gas distribution
network
2019– Downer awarded contract to operate
and maintain more regions of AusNet’s
electricity network
Today, Downer is AusNet’s delivery partner
responsible for the 24/7 operation and
maintenance of their electricity distribution
network
Downer Ausnet distribution linework apprentices

AusNet Services case study
54

Water
55
95%
5%
Local Councils
~$600M
80%
20%
75%
25%
OpportunityDowner
Minor Water
Authorities ~$650M
Major Water
Authorities ~$1.5B

Water
56
Major Capital Works
Market $4 billion
Major capital works includes dams, treatment
plants and pipelines
Downer and JV partners share $40m or 1% of
the total market
Downer selectively participates in projects
associated with wastewater treatment plants
and with customers that mutually share risks
Rubyannawastewater treatment plant

Water – customers
57
Victoria

15%
85%
DownerOpportunity
5%
95%
DownerOpportunity
Telco market ~$1.8B (NBN,
Telstra and Optus)
New Energy (including
Smart Meters ~$700M)
Telco and New Energy
58

59
All states other than WA
Telco and New Energy – customers
National

60
Asset Services
Power and
Energy
Image courtesy of BHP
Industrial
and Marine
Future
Energy
Pat Burke
EGM Asset Services

Asset Services
As a trusted partner with a leading safety record, we optimise the reliability, efficiency and
whole-of-life costs of our customers’ assets through long term relationship based contracts.
Power and Energy
Maintenance and Shutdown services for over 18GW of Australia’s power generation for customers who supply ~60% of
the National Energy Market including CS Energy, Origin, AGL, Synergy and Energy Australia
Operations and maintenance of four commercial solar farms with a generating capacity of 365MW
Major provider of maintenance, shutdown, field development services to LNG and CSG producers in Australia including
Santos, Origin and Chevron
Industrial and Marine
Planning, scheduling and execution of major mechanical and electrical maintenance programs, shutdowns and capital
works
Heavy Industrial customers such as BHP, QAL, Bluescope, Orica and CSBP
Major bulk export ports including Gladstone Ports, Port Hedland, Port Waratah, Newcastle Coal Infrastructure Group and
Kooragang Bulk Facilities
Our contracts are typically long term with Tier 1 customers, cost reimbursable, low risk and capital light
61

Oil & Gas
Asset Services current market share is less than 10% of the $2.2bn pa
outsourced maintenance market. The next generation of LNG maintenance
contracts will come to market over the next 3 years and Asset Services is well
positioned to secure a greater share. CSG field development set to re-emerge in
2022.
Industrial
The outsourced maintenance market in Ports, Heavy Manufacturing as well as
IronOre, Gold and Copper is $3.2bn pa and Asset Services presently holds less
than 7%. All have aging assets in need of structural remediation/ upgrading as
well as a large carbon footprint.
Power Generation
The current outsourced maintenance market is approximately $550m pa. Asset
Services currently holds 30% and can increase market share to 50% by
expanding in NSW, Victoria and NZ. The outsourced market itself is expected to
increase in the near term to include engineering and plant operations. Our
customers are focused on economic sustainability and energy transition, they
need support in changing their business models and help to transition from a
largely fixed cost base to higher proportion of variable cost.
Sources:
1.BIS economics Maintenance in Australia 2020 size of total maintenance requirement
2.Market grow th as a %CAGR calculated over 2020–2025 overall maintenance expenditure
784
3,453
1,192
838
3,234
200
676633
20
25
30
35
40
45
50
55
60
65
70
75
80
012345678910
Powergen coal fired
% CAGR FY20 - FY25
% Maintenance outsourced
Powergen renewables
Heavy Manufacturing
Ports
Iron ore
Oil and Gas
CopperGold
Our current markets are diverse with ample room to grow
Asset Services holds ~9% of the $6bn outsourced maintenance market
Asset Services Market Share
FY20 Total Maintenance Market was $11bn
with $6bn outsourced
FUTURE GROWTH RATE
INCREASED OUTSOURCING
62
Size of bubble
present total
market size

Decarbonisation
Our extensive capabilities and experience means we are in a strong position
to help our customers on their decarbonisation journey
All our customers are now actively investing in decarbonisation projects, and most are investigating
hydrogen opportunities
There are many pathways to decarbonisation in industry, including the use of renewable energy, battery
technologies, emission reduction, efficiency improvements and alternative fuels
We are working with our customers to create sustainable change, supporting them to be more responsive
and competitive as the market evolves, and ensuring we are positioned to take advantage of new
opportunities
Downer has extensive credentials in solution design, installation, operation and maintenance of
renewable generation and storage
Hydrogen will be a truly disruptive alternative fuel for all our customers because it can be produced wholly
from renewable electricity, enables large scale and long-term energy storage, has multiple applications
across various industries and can be viably and safely transported
Our customers are positioned across the entire hydrogen value chain, from solar, wind and green
hydrogen production, through to consumers of hydrogen for future power generation, mobility solutions
and export
63

Hydrogen
Downer is investing in expertise and capability to ensure we have the
necessar y skills to participate wholly in the new Hydrogen economy
Downer is an executive member of the Australian Hydrogen Council
Our investment in Hydrogen capability includes:
̶Member of the COAG National Hydrogen Skills working group to shape the skills and
qualifications framework for the future hydrogen industry
̶Forming strategic partnerships with key technology providers and OEMs to bring world leading
solutions to our customers
̶Working with the CSIRO and major universities to develop and commercialise Australian hydrogen
capability
̶Actively involved in several local hydrogen projects including the conversion of existing
infrastructure to hydrogen based on leveraging our technical partnerships, customer relationships
and local manufacturing capacity
64

Downer in
Defence
Downer has been working
with Defence since 1941 and
this year celebrates 80 years
supporting Defence.

Defence Market Drivers
1.Security situation across our region is deteriorating – referred to as “grey zone” warfare. Some examples
include aggressive behind the scenes posturing, cyber and information / intellige nce based warfare etc.
2.Australian Fed Gov has responded with significant future spends in Defence – $40bn to $70bn pa increase over
next 10 years
3.Establishing self-reliance is nationally strategically important – Australian National Defence Industry Capability
policy and active drive is being seen. Downer well positioned here as a sovereign industrial capability
4.Large opportunities for Downer to offer its services in sustainment of capability– long term maintenance
contracts which aligns to Downers strategy
5.Downer revenue from Defence is currently $700m pa. Independent analysis indicates Downer has the potential to
grow to $1.5b pa in revenue from Defence over the next 4-5 years
6.Relevant capabilities in this market are spread across Downer in Professional Services, Facilities Maintenance,
Infrastructure and Asset Services
66

Defence customer landscape
Where we play
67
E&IG
CASG
CIOG
Service Arms
& Other
Below
the
line
Professional Services Consulting
Program Management, Assurance, Cyber, Systems Engineering, ILS, Test & Evaluation, Commercial, etc
Above the
line
Defence customer groups
E&IG – Estate and Infrastructure Group
C AS G– Capability Acquisition and Sustainment Group
CIOG– Chief Information Officer Group
Facilities
Maintenance
(EMOS)
Estate
Development
Projects

68
Defence – our services
Today, Downer provides a range of professional and managed ser vices,
asset sustainment and estate upkeep ser vices to the Australian Defence
Force, the New Zealand Defence Force and other government agencies.

Downer Defence business
Growth potential
69

Defence – “above the line”
With hundreds of security-cleared resources, we provide solutions for Defence
and national security customers
Today Downer’s defence business –Downer Defence Systems (DDS) –delivers a range of
professionaland managed services and solutions to Defence and other government agencies
DDS’ multi-disciplined, cross-functional teams work collaboratively with customers to plan, deliver and
manage projects and programs by delivering:
̶Strategy and planning
̶Complex project and program delivery
̶Engineering and technology management
̶Data and digital
̶Cyber
Our consultants work with Defence and other
agencies to strategically deliver complex projects
and programs and have specialised in the introduction
of complex systems and security-sensitive capabilities
70

Defence – “above the line”
71
Downer has established itself as a major contributor to the
modernisation of the land, maritime, air, space and joint
communications and information systems across the
Australian Defence Force and other government agencies
Downer executes highly complex projects across the Land, Sea,
Air, Cyber, Space and Key Enabler domains
Acting as either a Prime contractor, subcontractor, or joint
venture partner through the Team Downer Major Service Provider
(MSP) consortium, we have successfully delivered projects for
various of Defence including the Chief Information Officer Group
(CIOG) and the Capability Acquisition and Sustainment Group
(CASG)
Downer’s Team Downer Major Service Provider (MSP) is a
consortium with Downer as the prime and three other member
companies. It is one of four MSP consortia that provide ‘above
the line’ contracting services CASG; the MSP currently has
contracts in 11 branches at CASG across the sea, air, land, joint
and space domains and has a national footprint

72
Facilities
Health
Education
Government
Defence
Peter Tompkins
CEO Spotless

0
1
2
3
4
5
6
7
8
Market RevenueOutso ur ced R eve nu e
GOV ERNME NT MA INTENA N C E
ANNUAL SPEND $bn
Key Market Outlook
73
Source: BIS Oxford Economics, ABS
• Stable grow th in market activity
expected w ith many State Government
budgets spending being used to
stimulate economic activity in response
t o COV ID-19 impacts.
• A national trend tow ards the increased
outsourcing of the maintenance of
Government sector assets also
contributes tow ards a positive outlook f or
the sector.
• Strong f ocus in recent budgets on public
housing across both State and Federal
Governments to address social housing
issues.
• Grow ing Health maintenance task is in
line w ith ongoing investment into the
asset base via the construction of new
health f acilities and hospital upgrades.
• Recent budgets f or the major states
have all ref lected increases in spending
on health services and capital w orks.
• Increased f ocus on COVID-19 measures
also having an impact.
• Steady grow th in Def ence Estate
spending despite COVID-19, though
market is small w ith limited headroom f or
sizeable grow th in traditional FM bef ore
the next contestable opportunity in 2024.
• Overall Def ence spending received a
$270 billion commitment over the next
10 years to build capability, including an
additional 800 people over the next f our
years.
• Measures include a $300m national
Estates Works Program, $190m on
inf rastructure in the Northern Territory
over the next tw o years and plans to
expand accommodation capacity.
• Mixed impacts f rom COVID-19 on
activity depending on dow nstream
market demand. Food and beverage is
Australia’s largest manuf acturing sector.
• Manuf acturing segments posted
improvements in the December quarter
a s COV ID-19 restrictions eased, though
remain dow n YoY.
• Activity is expected to improve as
restrictions ease and trade activity
normalises.
• Previously buoyant education outlook is
less stable due to tertiary sector activity
and COVID-19 severely impacting
demand f rom overseas students and
new construction activity.
• Fac ility Serv ic es are largely non-
discretionary and theref ore less af f ected
by the decline in international student
populations
• Government stimulus has been
committed to support education f acility
upgrades (i.e. air conditioning
programs). COVID-19 has also driven
increases in cleaning services f or
schools.
GOVERNMENT PROPERTYHEALTHDEFENCE
INDUSTRIAL FACILITIES
EDUCATION
0
500
1,000
1,500
2,000
2,500
3,000
3,500
HEA LTH MA INTENA N C E
ANNUAL SPEND $m
520
540
560
580
600
620
640
660
680
700
720
DEFEN C E BUILDIN G
MA INT ENA N C E
ANNUAL SPEND $m
De fen ce E sta tesDHA Housing
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
EDUCA T IO N MA INT ENA N C E
ANNUAL SPEND $m
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
LIGHT INDUS T R IA L
MA INT ENA N C E
ANNUAL SPEND $m

Government Portfolios
Downer’s Facilities service line is the largest provider of Government Portfolio FM
Services, ideally positioned to support pandemic recovery and stimulus work.
74
Leading services provider in Australia across Government
property portfolio FM services
Major provider to State Governments in SA, NSW, WA, VIC
Servicing agencies including Education, Emergency
Services, Justice, Police, Health, Social Housing
Market dominant positions in geographies enable highly
competitive trade rates
Facilities utilises a highly efficient and configurable work
delivery system architecture to deploy work
Unmatched data on asset portfolios spanning key
Government Agencies enables Facilities to support a
transformation agenda for customers
NSW Police FM ($40m p.a.)
VIC Justice FM ($40m p.a.)
SA Across Government Facility Management
Services ($300m p.a.)
COVID-19 Stimulus Works
NSW Whole of Government
SA Facility Management Services (FMS)
WA Housing Authority
NSW Land and Housing Corporation (LAHC)
Market PositionKey Advantages
Pipeline OpportunitiesCurrent Contracts

Single Service Line Specialisation
Technical and soft single line service specialisation and large, agile workforces
differentiates Downer’s Facilities service line from its competitors.
75
Specilialised single service line delivery capability includes:
̶Cleaning
̶Security
̶Mechanical
̶Electrical
Strong base of operations in VIC, NSW, QLD, WA, SA
Ability to rapidly mobilise, train and supervise large
workforces or direct delivery personnel
Strong industrial relations framework and track record
Technology systems to efficiently track and record soft
services tasks
Ability to operate as a vertically integrated service in
Downer’s integrated service delivery or as a standalone
single service provider
COVID-19 cleaning of public transport and public open
spaces
Metro Melbourne train and station cleaning
Vaccine rollout support to Federal Government
Vertical integration of Downer Group M&E Services
Victoria Schools Cleaning –commenced as a routine cleaning
service for 282 schools, since expanded to include specialist
COVID-19 cleaning
Working for Victoria – cleaning public transport and city
infrastructure across the City of Melbourne throughout pandemic
Train and tram cleaning – supporting the Downer Group with
vertically integrating cleaning on WA Trains, HCMT and SGT.
Expanded to YarraTrams and Adelaide Metro
Market PositionKey Advantages
Pipeline OpportunitiesCurrent Contracts

Public Private Partnerships
Greatest number of PPP projects under management and self delivery of hard and
soft services, making Downer’s Facilities service line a highly desirable PPP partner.
76
Pre-eminent PPP provider in Australia
19 PPPs in Health, Education, Defenceand other Social
Infrastructure
Hard and soft services provider
Unique in market as specialist delivery provider of all scopes
and services in Social Infrastructure PPPs (hard and soft
service)
Extensive asset performance insights through holding data on
full asset lifecycle and classes across PPPs over 25+years
Buying power through scale enables highly competitive pricing
Baseline revenues locked in for >10 years
Frankston Hospital PPP ($50m p.a.)
Reviewable services of 3 existing PPPs (combined $310m
p.a.)
Food procurement services for Private Health and Aged Care
($30m p.a.)
Austin Health ($10m p.a.)
Royal Adelaide Hospital
Royal Children’s Hospital
Bendigo Hospital
Southbank TAFE
WA / SA / Victoria Schools
Headquarter Joint Operations Command (HQJOC)
International Convention Centre (ICC) Sydney
Market PositionKey Advantages
Pipeline OpportunitiesCurrent Contracts

Defence
As one of the few remaining Australian providers to Defence, Downer Group is
poised to expand its below the line business in scale, footprint and service.
77
One of three providers to Defence Estate Operation and
Maintenance Services (EMOS) in Australia
Downer has assembled group capability to win two major
base and airfield upgrade projects to be delivered under
Managing Contractor & ECI frameworks
Combined with Defence work in consulting, Downer Group
is a top 10 provider to Defence
One of the few remaining Australian owned contractors
servicing Defence –strongly aligned to the Australian
Industry Content requirements
EMOS presence on bases in QLD and Southern NSW
provides springboard into base upgrade and capital works in
these locations
80 years’ history in contracting to Defence: ship building,
infrastructure upgrades, base upkeeps and strategic
advisory
DefenceFuels Transformation Program –operations and
maintenance of fuel infrastructure nationwide ($50m p.a.)
Woomera Base Redevelopment ($600m)
HQJOC upgrade works ($30m)
Swartz Barracks MTR ($25m)
Estate Maintenance & Operations Services (EMOS) QLD,
ACT and Southern NSW
Head Quarter Joint Operations Command (HQJOC) PPP
Victoria Barracks Melbourne Base Upgrade (MC)
RAAF Base Williamtown National Airfield Works (ECI HC)
Market PositionKey Advantages
Pipeline OpportunitiesCurrent Contracts

New Zealand

Leading market position
Largest provider of services to asset owners in New Zealand
Market leader in all of our sectors
$4.5bn of work in hand
Focused pipeline of$37.7bn over next 5 years
79
TransportUtilitiesFacilities
15%
market share
across facilities
management and
targeted vertical
construction
25% market share
of outsourced
services across
telco, water, power
and gas
30% market share

Strong market opportunities
Supporting New Zealand urban growth
in the main centres and regions
High demand on transport infrastructure
Aged water assets
Shift to whole of life investment
(build and maintain of facilities)
Investing in social infrastructure
(housing, schools, education, civic centres, health)
Increasing focus on social procurement and
environmental social governance
80
University of Waikato
Hamilton Infrastructure Alliance

Robust customer relationships
Focus on developing long term
relationship beyond contractual
terms
Local and central Government
Institutional customers (universities, power,
telco, etc.)
Collaboratively developing business models
that deliver the best outcomes for customers
and communities
81
“If I was to pinpoint onethingI ’mmost happy about,it wouldbe the lookand
speed of the Viaduct construction.The way the Alliance has worked tohold
deadlines, in fact even exceed deadlines, is remarkable.”
Grant Dalton, Chief Executive Emirates Team New Zealand

New Zealand case study
82

Key Government and council customers
83

Key institutional customers
84

Key utilities customers
85
Power and Gas
WaterTelco

Delivering sustainable growth
Integrated business approach to drive
new revenue
Meeting our customers’ needs by combining capabilitiesin
our contracts
Integration of services through build or maintenance
resulting into optimised performance for our customers and
organic growth opportunities for Downer
Using technology to tap into new areas of growth and
address environmental/safety issues
Leveraging Downer Group’s experience in rail
86
Christchurch townhall conservation
Road sciences mobile mapping technology

Investor Day
28 April 2021