DOWNER EDI LIMITED — AGM Information 2009

Oct 14, 2009

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15 October 2009

Company Announcements Office ASX Limited Level 4, 20 Bridge Street Sydney NSW 2000

RE: Downer EDI AGM – CEO & Managing Director’s Report

Please find attached a copy of the CEO & Managing Director’s presentation to shareholders at today’s Annual General Meeting.

Yours faithfully,

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Bruce Crane Company Secretary

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2009 Annual General Meeting 15 October 2009

CEO and Managing Director’s Report

Geoff Knox

Agenda

• Zero Harm

• Strategic Journey

• Year in Review

• Summary

Zero Harm

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A leading performance in safety
2
1.8
1.6
1.4
1.2
1 1.01
0.8
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Lost Time Injury Frequency Rate (per million hours worked)
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Lost Time Injury Frequency Rate 12-month rolling average

Our aim is Zero Harm

Zero Harm

Our commitment to sustainability

Works: Energy saving program at our Asphalt plants

Mining: Bio-diesel Program

Asphalt plant burner energy usage

Greenhouse Gas Emissions Reduction at Commodore Mine

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100
340
Bio-diesel
Trial Start
90 100%
320
Conversion
Estimate
300 80
280 70
Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2008 2009 2008 2009
percent reduction
average megajoules per tonne
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The Downer Journey

Successfully working on our clients’ critical infrastructure across the Asia Pacific region

Back-to-Basics Program

Strategic journey continues

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February 08 July 08 January 09
Strategy
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June 09
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Year in Review

Financial highlights

• Net profit after tax $189.4 million,�14%

• Total revenue $5,941.4 million,�6%

• Earnings before interest & tax $304.8 million,�8%

• Operating cash of $336.5 million,�22%

• Sound balance sheet with gearing[1] at 39%

• Earnings per share 57.9 cents,�13%

• Dividend per share 29.0 cents,�14%

• Work-in-hand of $14.6 billion as at June 30

Milestone achievements

• •Our client-focused strategy has delivered:

– Melbourne Tram Franchise (JV with Keolis) worth $2.8 billion over eight years

– Over $500 million of mining wins across Australia and New Zealand with clients including BHPBilliton, Wesfarmers & BMA

• 10-year contract with NSW RTA to service and maintain roads

• New 10-year contract with NZ Telecom’s Chorus

Milestone achievements (continued)

• Our strategy also delivered:

– 33 locomotives and 16 passenger car sets to five key clients, confirming the performance and reliability of our products and services – Waratah Trains (NSW PPP) achieved design certification, and the pre-production test vehicle was delivered to our manufacturing facility in Cardiff NSW

Work-in-hand remains strong at $14.6 billion (as at June 2009)

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Current
work-in-hand
over $16 billion
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Work-in-hand by division $b

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4.8
4.1
3.5
2.2
Engineering Mining Works Rail
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*Work-in-hand has replaced the Group’s order book and reflects new methodology adopted in June 2009

Three-year performance

EPS cents

Cash flow $m

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57.9
51.3
32.0
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Jun 07 Jun 08 Jun 09

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336
276
106
Jun 07 Jun 08 Jun 09
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DPS cents

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29.0
25.5
21.0
Jun 07 Jun 08 Jun 09
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ROFE %

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17.3
16.8
7.9
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Jun 07 Jun 08 Jun 09

Balance sheet and funding

• %

• Rating upgrade by Fitch to BBB (stable) in October 2009

• Reinvesting in our business

• Solid balance sheet with gearing of 38.9%

• Operating cash of $336.5m for the full year

• Successfully rolling over debt maturities and delivering on our diversified funding approach, raising $522m during FY09 with a further $120m in July through Works (NZ) Bonds

• Remain comfortably ahead of our debt refinancing program

Delivering on our synergies program

• $47 million in synergies identified

• Early benefits being reinvested to support future savings and business growth

• Benefits to be delivered over next 18 months

Group overheads as a percentage of revenue

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9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
1H08 2H08 1H09 2H09
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Attractive markets with Asia Pacific focus

■ Infrastructure 66% ■ Mining & metals 30% ■ Energy 4%

■ Australia 75% ■ New Zealand 17% ■ Asia 6% ■ Other 2%

Strong result driven by a disciplined approach to risk management and synergies

• Significant wins during the year with quality clients including Xstrata, Chorus NZ, PowerLink, Wesfarmers, Woodside and BHP Billiton

• Strategic bolt-on acquisition of Corke Instrument Engineering

• Strong tender pipeline with opportunities across LNG, power, ports, rail, renewable energy, resources and telecommunications sectors

• Business harnessing its reputation for delivering timely, cost-effective solutions to clients with a focus on safety and execution

• Recently acquired Western Construction Co. strengthening our mechanical capability in the oil and gas sector

Consulting performing strongly and delivering greater value to the Group

• Aligned Consulting operations and branding

• Working across the Group to identify and drive cross-collaboration opportunities

• Opportunities across power, ports, rail, renewable energy, resources and social infrastructure sectors

• Business harnessing its reputation for delivering whole-of-life asset solutions to clients with a focus on innovation and cost effectiveness

• Group looking to further leverage CPG’s Asian presence

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Mining Overview
Mining
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Mining continues to make solid progress

• Over $500 million of mining wins across Australia and New Zealand with quality clients including BHP Mitsubishi Alliance, Wesfarmers and Peabody

• Safety performance improving – 40% reduction in LTIFR

• Our mining services businesses now represent over 20% of Mining’s turnover and complements our core capability

• Tender pipeline of over $5b (as at June 2009) with major opportunities on the east coast of Australia and in WA

• Alliance with Solid Energy for its Stockton mine, adding to work-in-hand in FY10 – now $2.7b

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Rail Overview
Rail
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The core Rail business performed well with revenue growth of over 30% and an EBIT Margin of over 8%

• Wins during the year with BHP Billiton, Queensland Rail and Pacific National representing repeat business showing the quality and reliability of our product and maintenance offerings

• Joint Venture with Keolis successful for franchisee to maintain and operate Melbourne Trams for a minimum of eight years

• Expansion of our Rail Solutions business, including the establishment of international technology partners

• Continued passenger market demand from increased patronage and government investment in rail

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Works Overview
Works
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The Works businesses in Australia and New Zealand performed strongly

• Over 70% of Works’ revenue is derived from government at the Federal, State and Council levels

• Reinforced our position as a significant maintainer of roads in Australasia

• Continue to pursue bolt-on acquisitions to expand our capabilities and reach

• Works UK completed its restructure in 2H09 and returned to break-even

Summary

Ongoing demand for our services

• A solid performance in FY09 demonstrating the strength of the Group

• No material change to guidance

• Synergies program on track

• Strategic plan continues to highlight opportunities

• Strong presence in growth markets including oil and gas, renewable energy and water

• The solid pipeline of opportunities supports strong demand for our services

• We continue to monitor our end markets closely

Please join us in the foyer for refreshments

Creating greater value