CEO presentation to the Macquarie Conference

Macquarie Conference 2022
3 May 2022

Understanding Downer
2
Our Purpose
Our Purpose is to create and sustain
the modern environment by building
trusted relationships with our
customers.
Our Pillars
Our Promise
Our Promise is to work closely with
our customers to help them
succeed, using world-leading
insights and solutions.
Our business is founded
on four Pillars which support
our Purpose andour Promise.

Downer today
We are the leading provider of Urban
Services
in Australia and New Zealand.
We are critical to the
sustainmentand
operationof a vast portfolio of
government andprivate
infrastructure.
We are diversifiedacross capabilities,
markets and geographies.
Our
service delivery excellence
drives long-standing andtrusted
relationships.
We are uniquely placed to
support the AustralianandNZ
economies in energy transitionand
decarbonisation.
3

4
Unique exposure to critical Urban Services
1.BIS Oxford Economics (2022), based on spend in Downer’s Urban Services markets in Australia and New Zealand
Market leader in most categories in both
Australia and New Zealand.
High market growth expected across the
portfolio – weighted average CAGR 7-8%.
1
Significant and increasing barriers to entry
– management systems looking across the
supply chain.
New energy and decarbonisation
opportunities across our customer base.
Based on HY22 revenue mix of Downer’s segments

16%
10%
13%
5%
4%
2%
5%
9%
7%
5%
7%
4%
1%
1%
2%
1%
2%
6%
0%
5%
10%
15%
20%
25%
Road ServicesRail & Transit
Systems
ProjectsPower & GasWaterTelcoHealth &
Education
GovernmentDefenceAsset ServicesBuildings
% of Group Revenue
Scale and capacity in both Australia and New Zealand
5
Transport
80% AU / 20% NZ
Utilities
70% AU / 30% NZ
Facilities
75% AU / 25% NZ
split of BU revenue
NZ
AU
Based on HY22 revenue mix of Downer’s segments
Australia
(75%)
New Zealand
(25%)

0
20
40
60
80
100
120
140
160
20182019202020212022202320242025
Downer’s Urban Services Markets to 2025
(Australia and New Zealand - $Bn)
4
TransportUtilitiesFacilities
Customer spend to increase well above GDP
1.Based on revenue mix of Downer’s segments at 31 December 2021
2.Australian Federal Budget 2022-23
3.Australian Federal Budget 2021-22. Increase in spend from FY21 to FY23
4.BIS Oxford Economics (2022), based on spend in Downer’s Urban Services markets in Australia and New Zealand
5.CAGR represents growth from FY21-25.
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Unprecedented levels of Government
investment in construction and sustainment
Weighted average sector spend growth of 7-8%
CAGR
1, 4
Our scale, management systems and technical
capabilities put us in a very strong position to
secure forward revenue
A significant cross sector customer base for new
energy and decarbonisationsolutions.
Facilities
6.5% CAGR
5
Utilities
5.3% CAGR
5
Transport
9.0% CAGR
5
$18bn for new road
and rail projects
across Australia in
the 2022-23 Budget
2
Defence estate
development & base
upgrade spend
going from $2bn to
$4bn p.a
3

Growth to net zero – Downer’s opportunity
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Capabilities across our portfolio in areas
required for the journey to net zero
A net zero emissions future will require massive adjustments to almost all
urban infrastructure but particularly power generation, power transmission
and distribution, energy management and transportation.
Downer’s technical bent is power!
̶Power generation
̶Transmission and distribution
̶Facilities energy management
̶Low / No emissions public transport
̶Low emissions road networks / road pavements
Downer has invested heavily in the circular economy with Repurpose It and
Reconomy
Low emissions
electricity
Electrification
Energy storage
Energy
efficiency
Alternate fuels
Carbon capture
and storage
Land based
solutions
Other emerging
technologies

Western Australia
Northern
Territory
South Australia
Queensland
New South Wales
Victoria
ACT
Renewable energy
by 2030
50%
Renewable energy
by 2030
50%
Renewable
energy in line
with the RET
Net zero emissions by 2045
Net zero emissions by 2050
Reduce GHG emissions from 2005 levels
by 28-33% by 2025 and 45-50% by 2030
Victoria renewableenergy:
Renewable energy
production by 2025
50%
Net zero emissions by 2050
Reduce GHG emissions by
at least 50% by 2030
Net zero emissions
by 2050
25%
40%
50%
Tasmania
100% renewable energy by 2022
200% renewable energy by 2040
Net zero emissions by 2050
Net zero emissions by 2050
50% reduction in GHG emissions on
2005 levels by 2030
Net zero
emissions by
2050
Net zero emissions by 2050
30% emissions reduction below
2005 levels by 2030
by 2020by 2025by 2030
20%
Net zero targets
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Source:https://100percentrenewables.com.au/net-zero-
leaderboard-states-local-governments-communities-dec-2021/
Australia
26-28% below 2005
levels by 2030
Pledged to achieve
net zero emissions by
2050 (not legislated)
New Zealand
50% below 2005 levels
by 2030.
Net zero emissions by
2050 (legislated)
* Targets exclude biogenic
GHG emissions from
agriculture

Australia emits around 634 million tonnes
of greenhouse gases each year.
9
Australia’s emissions by sector
Key
sectors:
Power generation (electricity)
Agriculture
Transport
Manufacturing and construction
Industry
Buildings
Waste
Power generation
35%
Transport
16%
Manufacturing &
Construction
6%
Industry
3%
Buildings
2%
Waste
2%
Agriculture
25%
Fugitive emissions
6%
Aviation and shipping
2%
Other fuel combustion
2%
Land-use change and forestry
1%
Where we play
Where we don’t play

NewZealand emits around 86 million tonnes
of greenhouse gases each year.
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New Zealand’s emissions by sector
Key
sectors:
Agriculture
Transport
Power generation (electricity)
Manufacturing and construction
Aviation and shipping
Waste
Industry
Buildings
Transport
19%
Power generation
7%
Manufacturing &
Construction
7%
Waste
4%
Industry
3%
Buildings
2%
Agriculture
49%
Aviation and shipping
6%
Other fuel combustion
2%
Fugitive emissions
1%
Where we play
Where we don’t play

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Source:https://ourworldindata.org/future-emissions
To achieve a 1.5°C pathway by 2050
A rapid decline in GHG
emissionsis required by 2030
to reach a 1.5°C pathway by
2050
We have eight years to
achieve this

International Energy Agency’s 1.5°C pathway by 2050
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Source: IEA 2021, Net Zero by 2050

Australia’s long-term emissions reduction plan
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Source: Australian Government, 2021 Australia’s Long-Term Emissions Reduction Plan
Critical pathways to net zero for Australia’s economic sectors

Downer’s capability
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Low emissions electricity
Coal power generation – maintenance and closures
Gas powered generation – operation and maintenance
Renewables – wind, solar, hydro
Enabling infrastructure – HV transmission, LV transmission,
substations
Electrification
Buildings, road and rail networks and infrastructure
Public transport vehicles – trains, buses
Industrial Processes
Energy storage
Large scale grid battery storage
Commercial and residential battery storage
Pumped hydro
Strategy/Advisory
PMO
Operations and Maintenance
Program
development
Program delivery
Operations and
optimisation

Downer’s capability
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Energy efficiency
Facilities, buildings, assets
Alternate fuels
Hydrogen and bio fuels (biodiesel, biogas)
Enabling infrastructure (e.g. Hydrogen hubs, distribution
and storage network, refuelling stations)
Carbon Capture and Storage
Carbon capture use and storage technologies
Land based solutions
Forest, coastal and wetland restoration
High yield crops / farming techniques
Soil carbon sequestration – (e.g. biochar)
Other emerging technologies
Carbon removal technologies (e.g. Direct air capture)
New battery technology
Strategy/Advisory
PMO
Operations and Maintenance
Program
development
Program delivery
Operations and
optimisation

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FY22
FY22 trading
Demand remains strong across the Business Units
Strong contract awards / preferred status
Challenges in 3Q:
̶Weather impact across the Australian Business
Units
̶COVID-19 in NZ (now improving)
̶COVID-19 and weather impact YTD ($50-60m)
EBITA
Core YTD EBITA(4.7%) vs Prior Year
Expecting strong 4Q.
Immediate priorities
Earnings and cash performance FY22
Management of COVID-19, supply chain, workforce
availability, contract pricing, cost management
Pre-contract risk management.

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Looking through the noise
Weighted average sector spend growth of 7-
8% CAGR out to FY25
1
We are in the right sectors, at the right time!
Heavily leveraged to the New Energy
economy
Expect strong rebound in earnings in FY23.
FY23 and beyond
1.BIS Oxford Economics (2022), based on spend in Downer’s Urban Services markets in
Australia and New Zealand. CAGR is FY21-25

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Q&A