Downe r Gr oup 2013 Half Ye ar Re sults 14 F e b rua ry 2013 1 - - PowerPoint PPT Presentation

1

Downe r Gr

• up 2013

Half Ye ar Re sults

14 F e b rua ry 2013

2

R e lia nc e on third pa rty informa tion

T his p re se nta tio n ma y c o nta in info rma tio n tha t ha s b e e n d e rive d fro m p ub lic ly a va ila b le so urc e s tha t ha ve no t b e e n ind e p e nd e ntly ve rifie d . No re p re se nta tio n o r wa rra nty is ma d e a s to the a c c ura c y, c o mp le te ne ss o r re lia b ility o f the info rma tio n. No re sp o nsib ility, wa rra nty o r lia b ility is a c c e p te d b y the Co mp a ny, its o ffic e rs, e mp lo ye e s, a g e nts o r c o ntra c to rs fo r a ny e rro rs, missta te me nts in o r o missio ns fro m this Pre se nta tio n.

Pre se nta tion is a summa ry only

T his Pre se nta tio n is info rma tio n in a summa ry fo rm o nly a nd d o e s no t p urp o rt to b e c o mp le te . I t sho uld b e re a d in c o njunc tio n with the Co mp a ny’ s Co nd e nse d Co nso lid a te d F ina nc ia l Re p o rt fo r the ha lf-ye a r e nd e d 31 De c e mb e r 2012. Any info rma tio n o r o p inio ns e xp re sse d in this Pre se nta tio n a re sub je c t to c ha ng e witho ut no tic e a nd the Co mp a ny is no t und e r a ny o b lig a tio n to up d a te o r ke e p c urre nt the info rma tio n c o nta ine d within this Pre se nta tio n.

Not inve stme nt a dvic e

T his Pre se nta tio n is no t inte nd e d a nd sho uld no t b e c o nsid e re d to b e the g iving o f inve stme nt a d vic e b y the Co mp a ny o r a ny o f its sha re ho ld e rs, d ire c to rs,

• ffic e rs, a g e nts, e mp lo ye e s o r a d vise rs. T

he info rma tio n p ro vid e d in this Pre se nta tio n ha s b e e n p re p a re d witho ut ta king into a c c o unt the re c ip ie nt’ s inve stme nt o b je c tive s, fina nc ia l c irc umsta nc e s o r p a rtic ula r ne e d s. Ea c h p a rty to who m this Pre se nta tio n is ma d e a va ila b le must ma ke its o wn ind e p e nd e nt a sse ssme nt o f the Co mp a ny a fte r ma king suc h inve stig a tio ns a nd ta king suc h a d vic e a s ma y b e d e e me d ne c e ssa ry.

No offe r of se c uritie s

No thing in this Pre se nta tio n sho uld b e c o nstrue d a s e ithe r a n o ffe r to se ll o r a so lic ita tio n o f a n o ffe r to b uy o r se ll Co mp a ny se c uritie s in a ny jurisd ic tio n.

F

• rwa rd looking sta te me nts

T his Pre se nta tio n ma y inc lud e fo rwa rd -lo o king sta te me nts. Altho ug h the Co mp a ny b e lie ve s the e xp e c ta tio ns e xp re sse d in suc h fo rwa rd -lo o king sta te me nts a re b a se d o n re a so na b le a ssump tio ns, the se sta te me nts a re no t g ua ra nte e s o r p re d ic tio ns o f future p e rfo rma nc e , a nd invo lve b o th kno wn a nd unkno wn risks, unc e rta intie s a nd o the r fa c to rs, ma ny o f whic h a re b e yo nd the Co mp a ny’ s c o ntro l. As a re sult, a c tua l re sults o r d e ve lo p me nts ma y d iffe r ma te ria lly fro m tho se e xp re sse d in the sta te me nts c o nta ine d in this Pre se nta tio n. I nve sto rs a re c a utio ne d tha t sta te me nts c o nta ine d in this Pre se nta tio n a re no t g ua ra nte e s o r p ro je c tio ns o f future p e rfo rma nc e a nd a c tua l re sults o r d e ve lo p me nts ma y d iffe r ma te ria lly fro m tho se p ro je c te d in fo rwa rd -lo o king sta te me nts.

No lia bility

T

• the ma ximum e xte nt p e rmitte d b y la w, ne ithe r the Co mp a ny no r its re la te d b o d ie s c o rp o ra te , d ire c to rs, e mp lo ye e s o r a g e nts, no r a ny o the r p e rso n,

a c c e p ts a ny lia b ility, inc lud ing witho ut limita tio n a ny lia b ility a rising fro m fa ult o r ne g lig e nc e , fo r a ny d ire c t, ind ire c t o r c o nse q ue ntia l lo ss a rising fro m the use

• f this Pre se nta tio n o r its c o nte nts o r o the rwise a rising in c o nne c tio n with it.

Disc losure of non- IF R S fina nc ia l informa tion

T hro ug ho ut this p re se nta tio n, the re a re o c c a sio ns whe re fina nc ia l info rma tio n is p re se nte d not in a c c o rd a nc e with a c c o unting sta nd a rd s. I n the se c irc umsta nc e s the c o mp a ny ha s p ro vid e d a re c o nc ilia tio n b e twe e n the sta tuto ry a nd una ud ite d (no n-I F RS) d isc lo sure s. T he re a re a numb e r o f re a so ns why c o mp a ny ha s c ho se n to d o this inc lud ing : to ma inta in a c o nsiste nc y o f d isc lo sure a c ro ss re p o rting p e rio d s; to d e mo nstra te ke y fina nc ia l ind ic a to rs in a c o mp a ra b le wa y to ho w the ma rke t a sse sse s the p e rfo rma nc e o f the c o mp a ny; to d e mo nstra te the imp a c t tha t sig nific a nt o ne -o ff ite ms ha ve ha d o n c o mp a ny p e rfo rma nc e . Whe re c o mp a ny e a rning s ha ve b e e n d isto rte d b y sig nific a nt ite ms, Ma na g e me nt ha ve use d the ir d isc re tio n in hig hlig hting the se . T he se ite ms a re sho rt-te rm in na ture a nd c o nsid e re d to b e o utsid e the no rma l c o urse o f b usine ss. Una ud ite d numb e rs use d thro ug ho ut a re la b e lle d a c c o rd ing ly.

Disc la ime r

3

1 T

• ta l re ve nue is a no n-sta tuto ry d isc lo sure a nd inc lud e s re ve nue fro m jo int ve nture s a nd o the r a llia nc e s a nd o the r inc o me . Note:

the Co mp a ny c o nsid e rs T

• ta l Re ve nue to b e a n a p p ro p ria te me a sure d ue to a n ind ustry tre nd to wa rd jo int ve nture mo d e ls to

me e t the ne e d s o f e ng ine e ring , p ro c ure me nt a nd c o nstruc tio n (EPC) c usto me rs with re g a rd to la rg e sc a le inte g ra te d p ro je c ts. 2 Und e rlying EBI T is a no n-sta tuto ry d isc lo sure d e rive d b y a d d ing b a c k I nd ivid ua lly Sig nific a nt I te m ne t inte re st e xp e nse a nd ta x e xp e nse to NPAT .

• 3. Se e Slid e 31 fo r re c o nc ilia tio n o f sta tuto ry re sult to und e rlying re sult.

Re ve nue

• T
• ta l re ve nue 1 $4.7 b illio n, up 20.2% (inc lude s $0.3 b illio n in jo int ve nture s)

Cash F low

• Ope ra ting c a sh flo w $184.0 millio n, up 71.8%

E ar nings3

• Unde rlying E

BIT

2 $180.8 millio n, up 12.7% (e xc luding Individua lly

Sig nific a nt Ite m o f $11.5 millio n)

• Unde rlying NPAT

$105.5 millio n, up 24.1%

• ROF

E 17.4%, up fro m 17.0%

F ina nc ia l ove rvie w

4

1 Wo rk-in-ha nd numb e rs a re una ud ite d 2 Ad juste d fo r the ma rk-to -ma rke t o f d e b t re la te d d e riva tive s a nd d e fe rre d fina nc e c ha rg e s 3 Ge a ring = Ne t d e b t / ne t d e b t + e q uity. Ge a ring inc lud ing o ff-b a la nc e she e t d e b t inc lud e s the p re se nt va lue o f p la nt a nd e q uip me nt o p e ra ting le a se s d isc o unte d a t 10% p a : $255.1m (30 June 2012: $299.0m) 4 Re fe r to slid e 18 fo r b re a kd o wn

Wor k-in-hand

• Wo rk-in-ha nd 1 re ma ins stro ng a t $18.9 b illio n

Capital manage me nt

• $292.1 millio n in ne w fina nc ing s c lo se d: De b t $142.1m, Bo nding $150.0m
• Re pa id NZ$150.0 millio n Wo rks b o nds
• Ro lle d o ve r $177.0 millio n in b ila te ra l de b t fa c ilitie s
• Inte rim divide nd de c la re d: 10c ps (70% fra nke d)

Balanc e She e t

• Ne t de b t2 $422.9 millio n
• Ge a ring 3 19.7% (28.3% inc luding o ff-b a la nc e she e t de b t)
• T
• ta l a va ila b le liq uidity4 $841.7 millio n (inc luding $214.9 millio n c a sh)

F ina nc ia l ove rvie w

5

• China c o ntinue s to pro duc e a t re q uire d thre e tra ins pe r mo nth
• Ca rdiff no w o pe ra ting a t 3 da y T

AKT time (T AKT = pulse time )

• 28 tra ins no w a va ila b le fo r pa sse ng e r se rvic e a nd pe rfo rming we ll
• Pro je c t slig htly a he a d o f pre vio usly de c la re d pro g ra m

Wa ra ta h T ra in Proje c t

Ze ro Ha rm

1 De c e mb e r 2012 c o mp a re d to De c e mb e r 2011 Sa fe ty ra te s p ub lishe d o n this slid e a re una ud ite d T RIF R: T

• tal Re c or

dable Injur y F r e que nc y Rate L T IF R: L

• st T

ime Injur y F r e que nc y Rate

6

0.93 0.77 7.72 5.49 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 0.0 0.2 0.4 0.6 0.8 1.0 1.2

TRIFR LTIFR

Downer Group Safety Performance (12-month rolling frequency rates)

• L

T IF R do wn 17% a nd T RIF R do wn 29%1

• Wo rkpla c e fa ta lity in Ne w Ze a la nd in Oc to b e r

2012

• Inte nsifie d fo c us o n c ritic a l risks
• Ca rdina l rule s pro g ra m:
• F
• c us o n a sse ssing , unde rsta nding a nd

mitig a ting c ritic a l risks

• Pla nt-pe de stria n inte rfa c e , e ne rg y iso la tio n,

wo rking a t he ig hts, wo rking ne a r suspe nde d lo a ds a nd ma inta ining a nd e nfo rc ing e xc lusio n zo ne s.

7

Infra struc ture - Austra lia

1,725.3 2,167.3

E BIT

1 $m

57.1 86.2

E BIT mar gin

3.3% 4.0%

ROF E

2

23.9% 13.3%

T

• tal r

e ve nue 1 $m

HY13 HY13 HY12 HY12 HY13 HY13 HY12 HY12

• Re ve nue up 25.6%; E

BIT up 50.9%

• Re ve nue g ro wth a c hie ve d a c ro ss mo st

b usine sse s

• Pa rtic ula rly stro ng pe rfo rma nc e in the E

a st – ro a d infra struc ture a nd re so urc e s b a se d pro je c ts

• Co ntinuing to a c hie ve c o st a nd re ve nue

syne rg ie s fro m inte g ra tio n o f the fo rme r Wo rks a nd E ng ine e ring b usine sse s

1 T

• ta l re ve nue inc lud e s jo int ve nture s a nd o the r inc o me . HY12 Re ve nue d iffe rs fro m the p re vio usly re p o rte d numb e r d ue to the e xc lusio n
• f inte re st re ve nue a nd Co nsulting re ve nue . HY12 EBI

T d iffe rs fro m p re vio usly re p o rte d numb e r d ue to the e xc lusio n o f Co nsulting EBI T . 2 ROF E = und e rlying EBI T d ivid e d b y a ve ra g e fund s e mp lo ye d (AF E). AF E = Ave ra g e Op e ning a nd Clo sing Ne t De b t + Eq uity.

8

Infra struc ture – Ne w Ze a la nd

T

• tal r

e ve nue 1 $m

480.0 411.3

E BIT $m

7.8 16.4

E BIT mar gin

1.9% 3.4%

ROF E

2

21.2% 6.0% HY13 HY13 HY12 HY12 HY13 HY13 HY12 HY12

• Re ve nue up 16.7%; E

BIT up 110%

• Co ntra c t wins a c ro ss a ll se c to rs
• All b usine sse s pe rfo rming to , o r e xc e e ding ,

e xpe c ta tio ns

• Christc hurc h re b uild g a ining mo me ntum
• E

c o no mic c o nditio ns re ma in c ha lle ng ing ; Go ve rnme nt b udg e ts stre tc he d

1 T

• ta l re ve nue inc lud e s jo int ve nture s a nd o the r inc o me . HY12 Re ve nue d iffe rs fro m the p re vio usly re p o rte d numb e r d ue to the e xc lusio n
• f inte re st re ve nue . All fig ure s in Austra lia n d o lla rs.

2 ROF E = und e rlying EBI T d ivid e d b y a ve ra g e fund s e mp lo ye d (AF E). AF E = Ave ra g e Op e ning a nd Clo sing Ne t De b t + Eq uity. HY12 ROF E ha s b e e n re sta te d d ue to the a ttrib utio n o f ROADS e q uity to Ne w Ze a la nd .

9

Mining

1,334.5 1,132.9 88.0 97.1 7.8% 7.3%

E BIT $m E BIT mar gin T

• tal r

e ve nue 1 $m ROF E

2 %

HY13 HY13 HY12 HY12 HY13 HY13 HY12 HY12 23.6% 21.3%

1 T

• ta l re ve nue inc lud e s jo int ve nture s a nd o the r inc o me . HY12 Re ve nue d iffe rs fro m the p re vio usly re p o rte d numb e r d ue to the e xc lusio n
• f inte re st re ve nue .

2 ROF E = und e rlying EBI T d ivid e d b y a ve ra g e fund s e mp lo ye d (AF E). AF E = Ave ra g e Op e ning a nd Clo sing Ne t De b t + Eq uity.

• Re ve nue up 17.8%; E

BI T up 10.3%

• Stro ng fo c us o n Ze ro Ha rm pe rfo rma nc e

sho wing impro ve d re sults

• Ong o ing fo c us o n c o ntra c t e xe c utio n a nd

re so urc e utilisa tio n – ma jo r re vie w o f pla nt stra te g y unde rwa y to b ring inc re a se d e ffic ie nc ie s into o pe ra tio ns

• Assisting c usto me rs with c o st-re duc tio n

pro g ra ms

• Mo b ilisa tio n a t Me a ndu Mine c o mple te d
• Co mple te d mo b ilisa tio n a t Da unia a nd

Bla c kwa te r (re pla c ing No rwic h Pa rk c o ntra c t)

10

Ra il

E BIT $m

42.9 34.2

E BIT mar gin

7.5% 4.7% 487

T

• tal r

e ve nue 1 $m

398 574.4 729.6

ROF E

2

16.0% 14.4% HY13 HY13 HY12 HY12 HY13 HY13 HY12 HY12 273 176

1 T

• ta l re ve nue inc lud e s jo int ve nture s a nd o the r inc o me . HY12 Re ve nue d iffe rs fro m the p re vio usly re p o rte d numb e r d ue to the e xc lusio n
• f inte re st re ve nue . T
• ta l re ve nue sho ws the c o mb ina tio n o f re ve nue re la te d to the und e rlying b usine ss HY13 $487m (HY12: $398m) a nd

the Wa ra ta h Ro lling Sto c k Ma nufa c ture (RSM) c o ntra c t HY13 $243m (HY12: $176m). 2 ROF E = und e rlying EBI T d ivid e d b y a ve ra g e fund s e mp lo ye d (AF E). AF E = Ave ra g e Op e ning a nd Clo sing Ne t De b t + Eq uity.

243

• L
• c o mo tive de ma nd de c line d fro m re c e nt

pe a ks; me dium te rm o utlo o k re ma ins po sitive

• T

ra nsitio ning o ut o f lo c o mo tive ma nufa c turing in Austra lia , fo c using o n who le -o f-life a sse t ma na g e me nt

• $41m e xte nsio n o rde r fro m Pe rth T

ra nsit Autho rity fo r se ve n “B” Se rie s pa sse ng e r tra ins

• E

BI T ma rg in with Wa ra ta h RSM re ve nue (ze ro ma rg in) e xc lude d: 7.0% (HY12: 10.8%)

11

Group F ina nc ia ls

12

Unde rlying fina nc ia l pe rforma nc e

$m HY13 HY124 Cha ng e (% )

T

• ta l re ve nue 1

4,716.6 3,922.8 20.2 E BI T DA2 335.6 280.1 19.8 E BI T

2

180.8 160.4 12.7 Ne t inte re st e xpe nse (32.7) (38.9) 16.1 T a x e xpe nse (42.6) (36.4) (16.9)

Ne t pr

• fit a fte r

ta x2 105.5 85.0 24.1

E ffe c tive ta x ra te 2 28.8% 30.0% ROFE

3

17.4% 17.0% Divide nd (c e nts pe r sha re ) 10

• 1

T

• ta l re ve nue inc lud e s jo int ve nture s a nd o the r inc o me . HY12 Re ve nue d iffe rs fro m the p re vio usly re p o rte d numb e r d ue to the

e xc lusio n o f inte re st re ve nue . 2 Numb e rs a re ‘ und e rlying ’ ; i.e . e xc lud ing I nd ivid ua lly Sig nific a nt I te ms 3 ROF E = und e rlying EBI T d ivid e d b y a ve ra g e fund s e mp lo ye d (AF E); AF E = Ave ra g e Op e ning a nd Clo sing Ne t De b t + Eq uity 4 Prio r p e rio d inc lud e s c o ntinuing a nd d isc o ntinue d o p e ra tio ns

13 13

Summa ry of e a rning s

$m T

• tal

Infrast. Australia Infrast. NZ Mining Rail Corporate

Sta tutor y E BIT 169.3 86.2 16.4 97.1 34.2 (64.5)

Add b a c k unfa vo ura b le ite ms:

• Individua lly Sig nific a nt Ite m

11.5 11.5

• One ro us le g a c y c o ntra c ts

13.6 13.6

• Impa irme nt o f g o o dwill

6.2 6.2 L e ss fa vo ura b le ite ms:

• Go ve rnme nt g ra nt (R&D)

(8.6) (8.6)

• Pro je c t c lo se o ut/ c o ntra c t ma rg in a dj’ ts

(4.8) (4.8)

• Pro visio n re le a se s

(8.6) (2.6) (6.0)

Adjuste d E BIT (a ppr

• x)

178.6 92.4 16.4 97.1 28.2 (55.4)

14

Ope ra ting c a sh flow

$m HY13 HY12

E BI T

1

180.8 160.4 Add: De pre c ia tio n & Amo rtisa tio n 154.8 119.7

E BIT DA 1 335.6 280.1 Ope r a ting c a sh flow 184.0 107.1

Add: Ne t inte re st pa id 2 32.8 35.4 T a x pa id 9.8 9.9 Wa ra ta h T ra in Pro je c t ne t c a sh o utflo w3 69.9 83.4 Sing a po re T unne l se ttle me nt 7.8

• Adjuste d Ope r

a ting c a sh flow1 304.2 235.8 E BIT DA c onve r sion1 90.7% 84.2%

1 Numb e rs a re ‘ und e rlying ’ ; i.e . e xc lud ing I nd ivid ua lly Sig nific a nt I te m 2 I nte re st re c e ive d minus inte re st a nd o the r c o sts o f fina nc e p a id 3 Una ud ite d

15

Ca sh flow

$m HY13 HY12

T

• ta l o pe ra ting

184.0 107.1 T

• ta l inve sting

(221.2) (148.9) T

• ta l fina nc ing

(47.5) (18.0) Ne t de c re a se in c a sh he ld (84.7) (59.8)

Ca sh a t 31 De c e mbe r 214.91 222.1

1 HY13 c lo sing c a sh = o p e ning c a sh + ne t inc re a se in c a sh he ld + F X mo ve me nts

16 16

Ba la nc e she e t a nd c a pita l ma na g e me nt

$m De c 12 Jun 12

T

• ta l a sse ts

4,050.2 4,111.3 T

• ta l sha re ho lde rs’ e q uity

1,718.4 1,617.7 Ne t de b t1 422.9 368.8 Ge a ring : ne t de b t to ne t de b t plus e q uity 19.7% 18.6% Ge a ring (inc luding o ff b a la nc e she e t de b t)2 28.3% 29.2% Ne t le a se a djuste d de b t/ o pe ra ting E BI T DAR3 2.50 2.64 I nte re st c o ve r

4

3.10 2.89

1 Ad juste d fo r the ma rk-to -ma rke t o f d e b t re la te d d e riva tive s a nd d e fe rre d fina nc e c ha rg e s 2 Inc lud e s the p re se nt va lue o f p la nt a nd e q uip me nt o p e ra ting le a se s d isc o unte d a t 10% p a : $255.1m (June 2012: $299.0m) 3 Ne t le a se a d juste d d e b t inc lud e s ne t d e b t p lus 6x o p e ra ting le a se p a yme nts in the ro lling 12 mo nth p e rio d . Op e ra ting EBIT DAR e q ua ls und e rlying e a rning s b e fo re inte re st, ta x, d e p re c ia tio n, a mo rtisa tio n a nd e q uip me nt a nd p ro p e rtie s o p e ra ting le a se re nta l e xp e nse 4 Inte re st c o ve r e q ua ls EBIT a d juste d fo r Sig nific a nt Ite m + 1/ 3 o f p la nt a nd e q uip me nt o p e ra ting le a se re nta ls (o n a ro lling 12 mo nth b a sis) d ivid e d b y ne t inte re st e xp e nse + 1/ 3 o f p la nt a nd e q uip me nt o p e ra ting le a se re nta ls (o n a ro lling 12 mo nth b a sis)

17

Ca pita l outlook

$m F Y13 Mining

Gro wth c a pita l e xpe nditure :

• Bo g g a b ri

91

• Christma s Cre e k

30

• K

a ra ra 43

• Me a ndu

5

• Da unia / Bla c kwa te r

27 Ma inte na nc e a nd o the r g ro wth 64 Sub -to ta l (Mining ) 260

Othe r Divisions

• Ma inte na nc e a nd g ro wth

100

T

• ta l

360

Numb e rs p ub lishe d o n this slid e a re una ud ite d

18

De bt a nd bonding fa c ilitie s

De bt fac ilitie s $m

T

• ta l fa c ilitie s

1,264.6 Dra wn1 637.8

Available fac ilitie s 626.8

Ca sh 214.9

T

• tal liquidity

841.7 Bonding fac ilitie s $m

T

• ta l a va ila b le fa c ilitie s

1,401.9 Dra wn 954.0

Undrawn fac ilitie s 447.9 De bt fac ilitie s by type %

Synd ic a te d b a nk fa c ilitie s 33 E xp o rt Cre d it F ina nc e 16 Bila te ra l b a nk fa c ilitie s 16 F ina nc e le a se s 14 Ca p ita l ma rke ts: Bo nd s 12 Ca p ita l ma rke ts: USPP 9 100

1 Ad juste d fo r ma rk-to -ma rke t o f d e b t-re la te d d e riva tive s a nd d e fe rre d fina nc e c ha rg e s

De bt fac ilitie s by ge ography %

Austra lia / NZ 64 No rth Ame ric a 18 Asia 11 E uro p e 7 100

19

De bt ma turity profile

We ig hte d a ve ra g e d e b t d ura tio n o f 1.6 ye a rs A$m e quivale nt

100 200 300 400 500 600 700 Jun-13 De c -13 Jun-14 De c -14 Jun-15 De c -15 Jun-16 De c -16 Jun-17 De c -17 Jun-18 De c -18 Jun-19 De c -19 Jun-20 F ina nc e L e a se s Syndic a te d Fa c ilitie s Ca pita l Ma rke ts - Bo nds Ca pita l Ma rke ts - US Pte Pla c e me nts E xpo rt Cre dit F ina nc e Bila te ra l Fa c ilitie s

20

• NZ$150.0 millio n Wo rks Bo nds re pa id in Se pte mb e r 2012
• $177.0 millio n in b ila te ra l de b t fa c ilitie s suc c e ssfully ro lle d
• $292.1 millio n in ne w fina nc ing s c lo se d

– De b t $142.1 millio n – Bo nding $150.0 millio n

• Curre ntly pre pa ring fo r re fina nc ing o f the $294.0 millio n Austra lia n syndic a te d

de b t fa c ility a nd the $150.0 millio n MT N, ma turing 1H14

• Austra lia n syndic a te d b a nk lo a n, c a pita l ma rke ts a nd USPP unde r

c o nside ra tio n

• Se e king to e xte nd de b t dura tio n a nd c o ntinuing to dive rsify funding so urc e s

F unding position

21

Wa ra ta h T ra in Proje c t

22

• Pro je c t is c urre ntly slig htly a he a d o f the pro g ra m de c la re d in 2012
• Pro je c t is no w o ut o f re c o ve ry a nd e sse ntia lly "no rma lise d“
• 28 Wa ra ta h tra ins c urre ntly a va ila ble fo r pa sse ng e r se rvic e
• 3-da y T

AK T time (the time b e twe e n “pulse s” o n the flo w line ) in Ca rdiff imple me nte d in De c e mb e r a lmo st 2 mo nths a he a d o f pla n

• Pro duc tio n o utput, b o th in China a nd Ca rdiff, no w a t re q uire d ra te to

c o mple te full pro duc tio n pro g ra m to sc he dule

• Se t 78 pla nne d fo r de live ry in mid-2014
• Pe rfo rma nc e o f tra ins in se rvic e c o ntinue s to b e ve ry g o o d, T

L S c o ntinue s to ra mp up

Proje c t ove rvie w

23

Status Train Set No. Status Train Set No.

Pa sse ng e r se rvic e 3,4,5,6,7,8,9, 10,11,15,16,17,18, 19,20,21,22,23,24, 25,26,27,28,29,30, 31,32,33 At Da lia n Po rt 48 Be ing pre pa re d fo r Pra c tic a l Co mple tio n 14,34,35 At CRC re a dy fo r dispa tc h to Po rt 49 Ca rdiff unde r te st 36,37,38,39 In CRC F ito ut Sho p 50,51,52,53,54 Ca rdiff in pro duc tio n / po st-pro duc tio n 13,40,41,42 In CRC a wa iting fito ut 54,55,56 Ca rdiff wa iting pro duc tio n 12,43,44 In CRC Bo dyshe ll Pro duc tio n 56,57,58,59 In tra nsit fro m China 45,46,47 In CRC fo r re tro fit 1,2

Curre nt build prog re ss

24

• Fle e t ha s no w pa sse d 2.7 millio n kilo me tre s in pa sse ng e r se rvic e
• De live re d a va ila bility into pa sse ng e r se rvic e is >99%
• K

e y syste ms (tra c tio n, a uxilia rie s, e le c tric al syste ms, c lima te c o ntro l, b ra ke s) c o ntinue to pe rfo rm to a ve ry hig h le ve l with <15% o f the to ta l de la ys vs. 80%

• f the tra in c o nte nt
• 14 tra ins ha ve no w a c hie ve d the Fina l Co mple tio n re liability mile sto ne o f 2

de la y inc ide nts in 50,000km; this is sig nific a ntly a he a d o f the b id a ssumptio n

• Curre nt pe rfo rma nc e tre nds indic a te the fle e t will me e t a nd po ssib ly e xc e e d

the de sig n re lia bility ta rg e t o f 1 de la y inc ide nt in 50,000km

• T

he initial re lia bility o f the Se ts fro m pro duc tio n into se rvic e ha s impro ve d c o nside ra b ly a s a re sult o f b uild q ua lity a nd re liability g ro wth impro ve me nts

Pe rforma nc e

25

F

• re c a st c ost a t c omple tion

$m Jun 12 Change De c 12

Ma te ria ls & Sub -Co ntra c te d Co mpo ne nts 1,053 15 1,068 L a b o ur 325 (3) 322 E ng ine e ring Se rvic e s 156

• 156

T ra nspo rt, L

• g istic s & Pro c ure me nt

166 2 168 Pro je c t Ma na g e me nt 137

• 137

Insura nc e , Bo nding & F ina nc e 55 (5) 50 F

• re c a st L

iq uida te d Da ma g e s 175 (1) 174 Ma nufa c turing De la y Ac c o unt inte re st re c e iva b le (101) 6 (95) Othe r Co sts 88

• 88

Ge ne ra l Co nting e nc y 64 (13) 51

T

• tal F

CAC 2,118 1 2,119 T

• tal Re ve nue

1,688 1 1,689 F CAC Pr

• fit/ (L
• ss)

(430)

• (430)
• No ma te ria l c ha ng e in F

CAC o ve r 6 mo nths to 31 De c e mb e r 2012

• $51 millio n g e ne ra l c o nting e nc y re ma ining
• F

Y13 ne t c a sh o utflo w ~ $25-30 millio n

• F

Y14/ F Y15 ne t c a sh inflo w ~ $170-180 millio n (inc luding $95 millio n MDA inte re st)

26

Outlook

27

Wor k- in- hand by division1 Wor k- in- hand by type 1

Mining $6.2 b illio n 33% Ra il $4.6 b illio n 24% Infra st Aus $5.5 b illio n 29% Infra st NZ $2.6 b illio n 14% Co st p lus $0.5 b illio n <3% F ixe d p ric e $5.7 b illio n 30% Re c urring / a nnuitie s2 $4.5 b illio n 24% Sc he d ule o f ra te s $7.9 b illio n 42% Allia nc e $0.3 b illio n 2%

T OT AL $18.9 billion T OT AL $18.9 billion

Work- in- ha nd: ~$19 billion

1 Wo rk-in-ha nd va lue a s a t 31 De c e mb e r 2012 ro und e d to o ne d e c ima l p o int. Pe rc e nta g e sp lits ro und e d to ne a re st who le p e r c e nt 2 Re c urring / a nnuitie s: e stima te d fo r five ye a rs b a se d o n histo ric p e rfo rma nc e , d e ma nd le ve ls a nd ra te s Wo rk-in-ha nd numb e rs a re una ud ite d

28

F ixe d p ric e 30% Sc he d ule

• f ra te s

Re c urring / a nnuitie s Allia nc e Co st p lus Wa ra ta h 12%

<3% 42% 24% 2% 18% F ixe d pr ic e pr

• je c ts

T

• tal value

(appr

• x)

% c omple te 2 Pr

• fitable

Wa ra ta h – T L S $1,970 millio n 3%



Wa ra ta h – RSM $1,650 millio n 80%

x

K DR – Ya rra T ra ms $1,400 millio n 39%



PSMC – RT A No rth Syd ne y $340 millio n 51%



Mille nnium T ra in ma inte na nc e $289 millio n 58%



QR T ilt T ra in $190 millio n 55%



We ste rn Po we r 330 K V tra nsmissio n line $175 millio n 12%



E&I c o ntra c t - Pilb a ra $142 millio n 69%



Mo rning to n Pe ninsula $130 millio n 48%



CSBP - AN Pla nt $100 millio n 36%



Work- in- ha nd

1 Wo rk-in-ha nd sp lit b y typ e , ro und e d to ne a re st who le p e r c e nt a nd a re una ud ite d 2 F ixe d p ric e p ro je c t c o mp le tio n ro und e d to ne a re st who le p e r c e nt

Wor k- in- hand by type 1

29

Do wne r e xpe c ts to de live r unde rlying E BI T

• f a ro und $370 millio n

a nd NPAT

• f a ro und $210 millio n fo r the 2013 fina nc ia l ye a r.

Group outlook

30

Supple me nta ry informa tion

31

Re c onc iliation of unde r lying r e sult to statutor y r e sult

$m HY13 E BIT HY13 NPAT Unde r lying r e sult1 180.8 105.5

I ndividua lly Sig nific a nt I te m:

• Sing a po re T

unne l pro visio n (11.5) (11.5)

Sta tutor y r e sult 169.3 94.0

1 Und e rlying EBI T a nd NPAT a re c o nsid e re d a mo re a p p ro p ria te me a sure o f Do wne r’ s p e rfo rma nc e tha n ‘ sta tuto ry’ re sults, b e c a use the sta tuto ry re sults inc lud e a n I nd ivid ua lly Sig nific a nt I te m (“ I SI ”) tha t is unlike ly to b e re c urre nt. T he Sing a p o re T unne l p ro visio n re la te s to the se ttle me nt o f a n a rb itra tio n c la im c o mme nc e d b y SP Po we rAsse ts L imite d (SPPA) in 2009. T he c la im re la te s to a c o ntra c t a wa rd e d to Do wne r in 2003 fo r the c o nstruc tio n o f a n e le c tric a l se rvic e s tunne l in Sing a p o re . Und e r the se ttle me nt, Do wne r will p a y SPPA a to ta l o f $39.3 millio n, o f whic h $27.8 millio n wa s a lre a d y he ld a g a inst the c la im.