DOWNER EDI LIMITED — Investor Presentation 2021

May 4, 2021

Macquarie Conference 5 May 2021

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Understanding Downer

Our Purpose

• To create and sustain the modern environment by building trusted relationships with our customers

Our Promise

• To work closely with our customers to help them succeed, using world leading insights and solutions

Our Pillars

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Urban Services journey

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Revenue
2010 2015 Post-divestments
Transport
Utilities $7.4bn
$6.1bn
49%
Facilities
38%
41%
Asset Services
15% 18%
EC&M
26%
32%
27%
Mining
21%
17%
6%
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Work-in-hand

$20.4bn

$18.5bn

$36.2bn as at 31/12/20

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Urban Services journey

Acquisition Acquisition of Hawkins of Spotless Acquisition Relationships creating success of UrbanGrid (Utilities) Acquisition of RPQ Acquisition October 2014 (Road Services) of ITS Acquisition Acquisition of Sale of CPG Asia Acquisition of Tenix Acquisition PipeTech of Envista The Roading (Consulting) (foundation of Utilities) of AGIS (Utilities) (Defence) Company (NZ) ( Defence)  Exit Underground 2010 2012 2015 2016 2017 2018 2019 2020  Sale of Otraco Downer concludes mining services at Sale of Christmas Creek freight rail Sales of : business

• Snow den

• Laundries (70%)

• Dow ner Blasting Services  Open Cut Mining West

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Urban Services work-in-hand $36.2 billion

Customers

WIH by Service Line

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Facilities
$12.7bn (35%)
Utilities
Transport
$5.2bn (14%)
$16.8bn (47%)
Asset Services
$1.5bn (4%)
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10%
90%
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Govt / Govt-backed Non Govt

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WIH reflects long term contract profile

WIH profile ($bn)

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14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
2H21 FY22 FY23 FY24 FY25 FY26+
Transport Utilities Facilities Asset Services
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Strategy shaped by four major trends – Are they still relevant?

Growing population

Increasing urbanisation Government outsourcing

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Technology

Population

• Australia’s population is expected to be 667,000 smaller by FY25 than the pre-COVID trajectory

• Net overseas migration (NOM) has been the largest contributor to population growth over the past 10 years, and has also been the hardest hit by COVID-19

• NOM is expected to bounce back by 2022/23

• Federal Government committed to high levels of NOM for continued GDP growth and skills shortages

• High levels of population growth in the major cities will continue to drive Government infrastructure and services expenditure

Components of Australian population growth

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Source: Australian Bureau of Statistics; Deloitte Access Economics

© 2021 Deloitte Access Economics. Deloitte Touche Tohmatsu

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Market outlook

Australian economic growth

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Utilities sector output

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Transport sector output

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Construction sector output

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Source: Australian Bureau of Statistics; Deloitte Access Economics

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© 2021 Deloitte Access Economics. Deloitte Touche Tohmatsu

Market outlook

Kilometres of major new road by completion date

Government spending on transport and communication infrastructure

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Source: 2020-21 Commonwealth Budget

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Square metres of major new office facilities by completion date

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Source: Deloitte Access Economics Investment Monitor

© 2021 Deloitte Access Economics. Deloitte Touche Tohmatsu

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New macro trends

 Bigger Government at all levels

• Unprecedented levels of fiscal stimulus Infrastructure and services key delivery methods

• Decarbonisation of the economy (accelerating) Driven by capital providers (banks and equity) Business way ahead of Government Significant opportunity for Downer

• Geopolitical tension Defence spending Sovereign supply capability Localisation

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Climate resilience and decarbonisation

• Downer’s Urban Services strategy delivers environmental and social benefits including a move to lower capital intensive and lower carbon activities, supporting Downer’s decarbonisation pathway

• There are considerable opportunities for Downer that outweigh identified risks, assisting in lower cost of capital and increased margins

Identified risks:

• Impacts of increasing energy costs

• Exposure to extreme weather events

• Exposure to thermal coal contracts

• Changing design and construction requirements (also an opportunity)

Identified opportunities:

• Existing capabilities to service new and adjacent markets e.g. hydrogen

• Existing renewable energy capability and presence

• Circular economy to diversify product offering

• Response services to extreme weather events

• Increased investment in upgrading infrastructure to be more resilient to extreme weather events

• Infrastructure for Electric Vehicles

• The sale of Mining and Laundries supports our decarbonisation pathway reducing our Scope 1 and 2 emissions by 35% or 206,000 tonnes of carbon dioxide equivalent

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Climate resilience and decarbonisation (cont’d)

• Downer has committed to reduce our Scope 1 and 2 GHG emissions by 45-50% by 2035 and be net zero by 2050. This commitment was registered with the SBTi on 21/3/2021

• Downer is well positioned to contribute to Australia and New Zealand’s energy transition

• Downer’s clear pathway to net zero is aligned to its Urban Service strategy:

Divesting high capital, carbon intensive industries Continued focus on energy efficiency and GHG emission reductions Decarbonisation through new technology and fuel switching Decarbonising Downer’s fleet through EVs and alternate fuel vehicles Increasing uptake of renewables Reducing Scope 3 emissions

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Capital management

• Maintenance of BBB Fitch rating

• Net Debt managed within 2-2.5x EBITDA

• Dividends increasing to 60-70 % of NPATA over time

• On-market buy-back ~$400 million

• the most EPS accretive option for shareholders

• No major refinancing required in the next 24 months

• Capital and covenant headroom available for growth, including strategic M&A

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Cash generation

• Diversified and resilient earnings from critical service revenues; unable to be turned off

• Agile and robust risk systems and business model

• Expectation of 90-100% normalised EBITDA cash conversion

• No net reduction through the cycle in Free Cash Flow due to exit of Mining and Laundries

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Immediate priorities

• FY21 Earnings and Cash performance

• Strong performance year to date

• Sale of remaining non-core assets (Mining Open Cut East and Hospitality)

• FY22 – FY24 Business Planning (underway)

• Implementation of The Downer Standard

• Growth

• Organic

  • Increased Government spend in Urban Services

o Margin improvement

• Investment in technology

• Brand development / increased Government focus

• Acquisition (“bolt on”)

• Defence (Sovereign capability)

• Strengthen value chain in existing markets

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Macquarie Conference 5 May 2021

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