DOWNER EDI LIMITED — Annual Report 2007

Aug 20, 2007

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----- Start of picture text ----- Full Year Results 200721 August 2007----- End of picture text -----

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Changes made

• Head Office responsibilities streamlined

• Improved interaction between Head Office and Divisions

• Global Works business

• Alignment of 4 consulting businesses under one CEO

• Mining & Engineering management teams rebuilt during the year

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----- Start of picture text ----- YOUR SUCCESS YOUR VISION YOUR BUSINESS 2----- End of picture text -----

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Revised operating structure

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----- Start of picture text ----- � Passenger � Australia; New � Power � Open cut & � Multi-disciplinary�� FreightSpares � Zealand; Asia; UKRoad services �� TelecommunicationsEnergy systems (closing) �� UndergroundBlastingOtraco architectural and engineering design consultancy� Rail services � Process � ProjectEngineering* managementCEO CEO CEO CEO CEOGuy Wannop David Cattell Wayne Nolan Damien O’Reilly Peter ReidyYOUR SUCCESS YOUR VISION YOUR BUSINESS 3----- End of picture text -----

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Business review

• Appropriate time for review of business streams – process assisted by UBS

• Assessment of operational streams

• Identify and assess external opportunities

• All evaluations will be based on the creation of shareholder value

• Review expected to take 3-4 months

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----- Start of picture text ----- YOUR SUCCESS YOUR VISION YOUR BUSINESS 4----- End of picture text -----

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Improving stakeholder engagement

• Updates on business performance 4 times a year

• Annual Investor Day with operational management

• Regular operational visits

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Revenue and EBIT growth

Revenue and EBIT growth	Revenue and EBIT growth
	RevenueUnderlying EBITReported EBITNet InterestProfit Before TaxTax benefitNet Profit After TaxEPS (cents) reportedDPS (cents)5,362)281)129)(56)73)29)101)31. 3)21)15%22%5%4,656)230)(64)(47)(111)86)(25)(8.4)20)Full Year to 30 June ($m)20062007%
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----- Start of picture text ----- Significant ItemsContract claims and disputes (145.3)Process Engineering (73.7)Energy Systems (71.6)Contract Mining Losses (61.5)Change in estimates for make good provisions 38.9)Reimbursed tender costs 15.6)Total before tax (152.2)Tax benefit 45.7)R + D tax benefit 46.5)Total after tax (60.1)7----- End of picture text -----

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----- Start of picture text ----- Projects updateIluka NewPac Carborough Isaac FoxleighDowns PlainsAlinta 2 Huntley Condong &Broadwater8COMPLETED & COMPLETED & COMPLETED & COMPLETED & COMPLETED &PRODUCING PRODUCING PRODUCING PRODUCING PRODUCINGCOMPLETED & COMPLETED & 85% & 40%PRODUCING PRODUCING COMPLETE----- End of picture text -----

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----- Start of picture text ----- Core businesses continue to performTurnover $b EBIT $m EMPLOYEE NUMBERS5.4 281 ² 1,00022.34.7 21.0230 ²3.8 17.53.2 14.62.7 189 13.015714003 04 05 06 07 03¹ 04¹ 05 06 07 03 04 05 06 07¹ EBITA pre IFRS Engineering Mining & Resources Works Rail Discontinued² Underlying9----- End of picture text -----

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----- Start of picture text ----- Divisional strength sustainedTotal Secured Sales FY07 Secured Sales FY07 ROFE¹ %$b by Division $b9.3 4.7 35.06.9 1.8 18.46.4 6.5 1.65.5 1.2 15.0 15.403 04 05 06 07 Engineering Mining & Resources Works RailROFE = EBIT/AFE; AFE = Avg Net Debt + Avg Equity last 3 half years¹ Underlying10----- End of picture text -----

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Second half delivers cash flow potential

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----- Start of picture text ----- $million June 2007 June 2006Net Profit after tax 102) (25)Depreciation & amortisation 137) 108)Working capital movement (114) 111)Other (19) (104)Operating cash flow 106 ) 90 )Investments (128) (239)Capital expenditure (net) (97) (149)Dividends paid (36) (37)Capital raising 177) 143)Other (9) 2)Increase (decrease) in borrowings (13) 190Net debt (excl. hedges) 519) 532)Net debt to equity (%) 44) 56)11----- End of picture text -----

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Balance sheet strength

• June 30 net borrowings of $519m

• Gearing 44% - back within target range

• All financing covenants met

• Operating cash flow $106m – H2 cash flow $123m

• Net capex $97m in line with depreciation

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----- Start of picture text ----- Business continues to improve performanceROE ROFE17.1¹16.3 [2]16.7¹14.5¹ 15.513.2 14.011.9 13.8¹12.710.603 04 05 06 07 03 04 05 06 07ROE = NPAT Rolling 12mth pre-goodwill/Equity pre-goodwill 2¹ Underl Underlyingying excluding ROADS ROFE = EBIT/AFE; AFE = Avg Net Debt + Avg Equity last 3 half years ¹ Underlying13----- End of picture text -----

Mining and resourcesEngineeringInfrastructureRailDivisional EBIT (Underlying)Corporate / UnallocatedTotal Group Underlying EBIT84)69)62)32)247)(17)230)21.3%7.7%20.3%29.0%18.2%22.2%All divisions contribute to EBIT performance101)74)74)42)292)(11)281)Full Year to 30 June ($m)2007%2006	Mining and resourcesEngineeringInfrastructureRailDivisional EBIT (Underlying)Corporate / UnallocatedTotal Group Underlying EBIT84)69)62)32)247)(17)230)21.3%7.7%20.3%29.0%18.2%22.2%All divisions contribute to EBIT performance101)74)74)42)292)(11)281)Full Year to 30 June ($m)2007%2006
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Trend of margin improvement continues

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----- Start of picture text ----- Full Year to 30 June ($m) 2007 2006 %Revenue 1,555 1,388 12.1%Underlying EBIT 101 84 21.3%Underlying EBIT / Sales 6.5% 6.0%ROFE 15.0% 14.8%Secured Sales 1.8bn 2.8bnHIGHLIGHTS STRATEGY� Revenue grew over 12% and margin � Grow services offeringimproved� Realise advantages of new structure –� Over 4,500 employees customer & savings benefits� Senior management team rebuilt � Focus on renewal of contracts andselectively explore new opportunities15----- End of picture text -----

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Full year performance met expectations

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----- Start of picture text ----- Full Year to 30 June ($m) 2007 2006 %Revenue 1,493 1,564 (4.6%)Underlying EBIT 74 69 7.7%Underlying EBIT / Sales 5.0% 4.4%ROFE 18.4% 19.6%Secured Sales 1.6bn 1.6bnHIGHLIGHTS STRATEGY� Revenue as expected – H2 margin +5% � Grow power business� Over 10,800 employees � Expand footprint of consultingbusinesses� Growing demand for state widecapabilities � Diversify telco service offering inAustralia16----- End of picture text -----

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----- Start of picture text ----- Expect continued success going forwardFull Year to 30 June ($m) 2007 2006 %Revenue 1,620 1,078 50.3%EBIT 74 62 20.3%EBIT / Sales 4.6% 5.7%ROFE 15.4% 20.6%Secured Sales 1.2bn 1.4bnHIGHLIGHTS STRATEGY� Revenue growth driven by organic growth � Improve reach and service offering inand acquisitions existing footprints and new markets� Over 5,500 employees � Grow scale and capability of rail andwater services� Australasian margins 5.5%� Global structure to lift performance17----- End of picture text -----

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Track record of execution maintained

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----- Start of picture text ----- Full Year to 30 June ($m) 2007 2006 %Revenue 537 349 53.7%EBIT 42 32 29.0%EBIT / Sales 7.8% 9.3%ROFE 35.0% 25.6%Secured Sales 4.7bn 1.1bnHIGHLIGHTS STRATEGY� Core Rail business continued strong � Entrench scale and capability inperformance passenger market� PPP grew revenue and moderated � Maintain locomotive market leadershipmargins � Build maintenance capability� Over 1,200 employees � Improve on reputation for good quality18----- End of picture text -----

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NSW PPP – a great opportunity

• Confident of delivering trains on time

• All major component suppliers contracted on back to back terms with the head contract

• Auburn maintenance facility and Cardiff upgrade underway

• Design process underway - good working relationship with client

• Over 110 engineers and designers working on the project

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FY08 outlook

• Revenue growth - below last years rate

• EBIT growth – low double digit

• Capex – in line with depreciation

• Operating cash flow – in line with EBIT

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----- Start of picture text ----- Full Year Results 200721 August 2007----- End of picture text -----

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