DOWNER EDI LIMITED — AGM Information 2008

Oct 29, 2008

Annual General Meeting

30 October 2008

CEO’s Report

Mr Geoff Knox

Agenda

• Zero Harm

• Year in Review

• Outlook

==> picture [720 x 24] intentionally omitted <==

Zero Harm

Safety performance continues to improve

==> picture [483 x 248] intentionally omitted <==

----- Start of picture text -----

2.6
2.5
2.4
2.3
2.2
2.1
2.0
1.9
1.8
1.76
1.7
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
(per million hours worked)
Lost Time Injury Frequency Rate
----- End of picture text -----

Our aim is Zero Harm

==> picture [720 x 24] intentionally omitted <==

Zero Harm – Health, Safety, Sustainability and Environment

• During 2008 we launched a Zero Harm programme across the business

• LTIFR 1.76 per million hours worked

• Medical treatment injury rate is also showing a strong downward trend

• We are implementing governance processes across the group to improve our total sustainability performance

• We have established our baseline greenhouse gas intensity and our carbon footprint is low

• Leading constructor of wind farms and energy efficient pavement solutions

• Researching biofuel alternatives

• Working with our clients to reduce their ecological footprints

==> picture [720 x 24] intentionally omitted <==

Back-to-basics approach

==> picture [619 x 366] intentionally omitted <==

----- Start of picture text -----

Sustain a
Zero-Harm
Environment
Optimise our
Focus on Empower
Portfolio &
Shareholder our People
Performance
Value
Engage “The Downer EDI
Clients Spirit…”
----- End of picture text -----

==> picture [720 x 24] intentionally omitted <==

Delivering our Strategic Plan Making the whole greater than the sum of the parts

==> picture [510 x 97] intentionally omitted <==

==> picture [510 x 97] intentionally omitted <==

==> picture [510 x 97] intentionally omitted <==

==> picture [720 x 24] intentionally omitted <==

Year in Review

Delivering on commitments

Full Year to 30 June ($m)	2008	2007	%
Turnover	5,5881	5,422	3.1%
EBIT	281	129	119%
Net Profit After Tax	166	102	63%
DPS(cents)	25.5	21.0	21%

Increased profit and dividend

==> picture [720 x 24] intentionally omitted <==

1 Excludes revenue from Century Resources subsequent to its sale on December 31 2007

Business momentum continues

==> picture [218 x 317] intentionally omitted <==

----- Start of picture text -----

Turnover $b 5.6
5.4
4.7
4.0
3.4
04 05 06 07 08
EBIT $m 281
189
157
129
-64
04 [1 ] 05 06 07 08
----- End of picture text -----

==> picture [196 x 298] intentionally omitted <==

----- Start of picture text -----

Employee Numbers
1,000 24.1
22.3
21.0
17.5
14.6
04 05 06 07 08
----- End of picture text -----

==> picture [66 x 8] intentionally omitted <==

----- Start of picture text -----

1 EBITA pre IFRS
----- End of picture text -----

==> picture [346 x 24] intentionally omitted <==

----- Start of picture text -----

Engineering Mining Works Rail
----- End of picture text -----

==> picture [720 x 24] intentionally omitted <==

Improved performance

==> picture [231 x 158] intentionally omitted <==

----- Start of picture text -----

Net profit after tax $m
166
104 102
82
-25
04 05 06 07 08
----- End of picture text -----

Dividend per share (cents)

==> picture [193 x 151] intentionally omitted <==

----- Start of picture text -----

25.5
20 21
18
15.6
04 05 06 07 08
----- End of picture text -----

==> picture [254 x 357] intentionally omitted <==

----- Start of picture text -----

Earnings per share EPS (cents)
2008 2007 51.3%
36.3
32.0
29.6
-8.4
04 05 06 07 08
Operating cashflow $m
2008 2007 276%
186
181
106
90
04 05 06 07 08
----- End of picture text -----

==> picture [720 x 24] intentionally omitted <==

Strong order book

==> picture [203 x 290] intentionally omitted <==

----- Start of picture text -----

Order Book $b 11.5
9.3
6.9
6.4 6.5
04 05 06 07 08
----- End of picture text -----

FY08 Order Book by Division $b

==> picture [240 x 189] intentionally omitted <==

----- Start of picture text -----

4.7
2.6
2.1 2.1
Engineering Mining Works Rail
----- End of picture text -----

==> picture [720 x 24] intentionally omitted <==

Focusing on shareholder value

==> picture [462 x 312] intentionally omitted <==

----- Start of picture text -----

17.6
ROE 16.3 [1] ROFE
15.5
14.0
9.9 11.5
13.9
10.2 [1]
7.9
8.7
-2.6 -4.3
04 05 06 07 08 04 05 06 07 08
----- End of picture text -----

==> picture [73 x 8] intentionally omitted <==

----- Start of picture text -----

ROE = NPAT/Equity
----- End of picture text -----

ROFE = EBIT/AFE; AFE = Average Net Debt + Average Equity last 3 half-years

==> picture [73 x 10] intentionally omitted <==

----- Start of picture text -----

1 Excluding ROADS
----- End of picture text -----

==> picture [720 x 24] intentionally omitted <==

Sound balance sheet

• Gearing1 34.0% and interest cover2 of 5.7 times

• $390 million Australian dollar syndicated loan facility refinanced

• Operating cash flow $276m – 98% of EBIT

• Net capex $181m – investing in future growth

==> picture [720 x 24] intentionally omitted <==

1 Net debt/Shareholders’ funds

2 EBIT/Net interest expense

==> picture [224 x 481] intentionally omitted <==

Project highlight – Works Australia

Mornington Peninsula

• A 15-year partnership with Mornington Peninsula Shire Council

• Integrated road maintenance management approach

• Clearly defined performance goals and index performance requirements

• Focus on products and techniques that minimise environmental impact

• Ongoing support of local sub-contractors and suppliers, and preferential employment of local people

• Staff development and safety programmes, client/ contractor resource sharing and traineeships

==> picture [720 x 24] intentionally omitted <==

Works – another strong performance

Revenue $b

==> picture [207 x 141] intentionally omitted <==

----- Start of picture text -----

1.8
1.6
07 08
----- End of picture text -----

==> picture [49 x 12] intentionally omitted <==

----- Start of picture text -----

EBIT $m
----- End of picture text -----

==> picture [109 x 131] intentionally omitted <==

----- Start of picture text -----

110
74
07 08
----- End of picture text -----

ROFE %

EBIT Sales Margin %

==> picture [109 x 107] intentionally omitted <==

----- Start of picture text -----

17.1
15.4
07 08
----- End of picture text -----

==> picture [110 x 112] intentionally omitted <==

----- Start of picture text -----

6.2
4.6
07 08
----- End of picture text -----

==> picture [720 x 24] intentionally omitted <==

Project highlight – Rail

Public Transport Authority – Western Australia

• Successful long-term partnership with the PTA.

• Performance-based contract

• JV designed and constructed a new purposebuilt maintenance facility.

• Currently manufacturing 15 three-car sets for delivery in 2009.

• In total, the joint venture has supplied 94 electric railcar sets and continues to provide maintenance services to the WA Government.

==> picture [332 x 480] intentionally omitted <==

==> picture [720 x 24] intentionally omitted <==

Rail – business performed strongly

Revenue $m

EBIT $m

==> picture [110 x 127] intentionally omitted <==

----- Start of picture text -----

613
537
07 08
----- End of picture text -----

==> picture [109 x 128] intentionally omitted <==

----- Start of picture text -----

46
42
07 07 0808
----- End of picture text -----

ROFE %

EBIT Sales Margin %

==> picture [110 x 103] intentionally omitted <==

----- Start of picture text -----

35.0
33.8
07 07 08 08
----- End of picture text -----

==> picture [110 x 96] intentionally omitted <==

----- Start of picture text -----

7.8
7.5
07 08
----- End of picture text -----

==> picture [720 x 24] intentionally omitted <==

PPP progress

==> picture [451 x 96] intentionally omitted <==

----- Start of picture text -----

Design & Prove Deliver
Procure
----- End of picture text -----

• 100% Tier 1 & 2 contracts let, Tier 3 contracting process underway

• 76% of material value ordered

• Full-scale model delivered in February – model review complete

• 77% of drawings issued for procurement and build

• On track for 4 car prototype on network in 2009

• Sets 1 to 6: systems integration, testing and verification

• Total of 230,000 kilometres of “running-in” on the network, before practical completion

• Sets 7 to 78

• Dedicated build facility

• ->completed at CRC

• De-risk using CRC’s build capacity – fabricating commenced at CRC

• Team established on ground in China

• Auburn maintenance facility on track

• Cardiff facility on track

==> picture [720 x 24] intentionally omitted <==

Project highlight – Engineering

North West Shelf

• The North West Shelf Venture in WA, produces 48 per cent of Australia’s oil and gas.

• In 1986 Downer EDI commenced providing electrical and instrumentation services to Woodside and our partnership continues to grow.

• Works include high-voltage power line diversion, cabling for greenfield and brownfield sites, and electrical and instrumentation work.

==> picture [321 x 480] intentionally omitted <==

==> picture [720 x 24] intentionally omitted <==

Project highlight – Consulting

Gardens By The Sea

• Singapore’s premier city-in-a-garden project

• � Awarded a Green Mark (Gold Plus) Award from the Building and Construction Authority of Singapore.

• CPG provided full design consultancy services including architectural and green design; mechanical, electrical, civil and structural engineering; quantity surveying and project management services.

• It will be complemented by a 32-hectare waterfront garden and a 15-hectare beachfront garden.

==> picture [312 x 480] intentionally omitted <==

==> picture [720 x 24] intentionally omitted <==

Engineering – revenue and margin growth

==> picture [68 x 12] intentionally omitted <==

----- Start of picture text -----

Revenue $b
----- End of picture text -----

==> picture [110 x 127] intentionally omitted <==

----- Start of picture text -----

1.8
1.6
07 08
----- End of picture text -----

ROFE %

==> picture [49 x 12] intentionally omitted <==

----- Start of picture text -----

EBIT $m
----- End of picture text -----

==> picture [110 x 137] intentionally omitted <==

----- Start of picture text -----

96
3
07 08
----- End of picture text -----

EBIT Sales Margin %

==> picture [378 x 143] intentionally omitted <==

----- Start of picture text -----

5.3
22.9
2.9
0.2
07 08 07 08
----- End of picture text -----

==> picture [720 x 24] intentionally omitted <==

Project highlight – Mining AngloGold Ashanti

• Downer EDI has been working at AngloGold Ashanti’s Sunrise Dam open-cut gold mine since production commenced in 1997

• We now operate under a ‘Life of Mine’ Alliance

• Developing indigenous engagement and community partnership programmes

• We will continue to offer our services to AngloGold Ashanti as it grows its business throughout the world

==> picture [326 x 480] intentionally omitted <==

==> picture [720 x 24] intentionally omitted <==

Mining – turnaround continues

==> picture [518 x 322] intentionally omitted <==

----- Start of picture text -----

Revenue $b EBIT $m
66
1.7
1.3
4.8
5
07 08 07 08
ROFE % EBIT Sales Margin %
11.1
5.1
-21.4 0.3
07 08 07 08
----- End of picture text -----

==> picture [720 x 24] intentionally omitted <==

Outlook

Sound market sectors

Infrastructure 60% Mining & Metals 35% Energy 5%

==> picture [720 x 24] intentionally omitted <==

Strong presence in Asia Pacific

Australia 74% New Zealand 18% Asia 6% Other 2%

==> picture [720 x 24] intentionally omitted <==

Servicing major clients

==> picture [82 x 269] intentionally omitted <==

AngloGold Ashanti ARTC BHPBilliton & BMA Caltex FOXTEL Exxon Mobil Main Roads WA Peabody Pacific National Powerlink QLD RailCorp

==> picture [81 x 277] intentionally omitted <==

Reliance Rail Rio Tinto RTA NSW Queensland Rail Telecom NZ NZ Transport Agency TelstraClear Vic Roads Wesfarmers Woodside Xstrata

==> picture [720 x 24] intentionally omitted <==

Positive demand environment

• Demand for our services remains positive

• Over 85% of revenues secured for FY09

• Order book strong – approx $11.5bn

• –

• Infrastructure Governments continuing to stimulate spending, further underpinning our strong, long term order book

• Mining & Metals – major clients forecasting continued output and demand for our services

• Energy sector – we remain very busy in the oil and gas space and demand for renewable energy projects is ongoing

==> picture [720 x 24] intentionally omitted <==

Carbon economy creates opportunities

• Energy and cost efficiencies across the company

• Renewable energy work for key clients

• Upgrading existing industrial facilities and infrastructure for our clients

• The renaissance of rail as a transport mode

• Water treatment and recycling – involved in over 70 Water Treatment projects across Australia, New Zealand and Asia

• Trend towards ‘Green’ building design – CPG is internationallyrenowned for and well placed to capitalise on sustainable development opportunities throughout the Asia Pacific

==> picture [720 x 24] intentionally omitted <==

Outlook

• Demand remains positive

• Over 85% of revenues secured for FY09

• Strong leadership team, great people

• Forward funding plans progressing well – 23% of our facilities maturing FY09

• Expansion opportunities emerging from current environment

• No material change to guidance for FY09

• Ongoing growth consistent with strategic plan objectives

• Continue to monitor end-market demand closely

==> picture [720 x 24] intentionally omitted <==

Annual General Meeting Please join us in the foyer for refreshments