Cha irma n s a d d re ss to sha re ho ld e rs; Chie f E xe c - PDF document

6 No ve mb e r 2013 Co mpa ny Anno unc e me nts Offic e ASX L imite d L e ve l 4, 20 Bridg e Stre e t Sydne y NSW 2000 al Me e ting RE : Downe r E DI L imite d 2013 Annual Ge ne r Ple a se find a tta c he d a c o py o f the fo llo wing do c ume nts re la te d to the Annua l Ge ne ra l Me e ting o f Do wne r E DI L imite d to b e he ld a t 11.00a m to da y:  Cha irma n’ s a d d re ss to sha re ho ld e rs;  Chie f E xe c utive Offic e r’ s re po rt; a nd  Annua l Ge ne ra l Me e ting pre se nta tio n. Yo urs fa ithfully, Pe te r T ompkins Co mpa ny Se c re ta ry Do wne r E DI L imite d A T riniti Busine ss Ca mpus, 39 De lhi Ro a d , No rth Ryd e NSW 2113 ABN 97 003 872 848 P PO Bo x 1823, No rth Ryd e NSW 2113 T +61 2 9468 9700 | F +61 2 9813 8915 | W d o wne rg ro up.c o m

DOWNE R GROUP ANNUAL GE NE RAL ME E T ING 2013 CHAIRMAN’S ADDRE SS AND CHIE F E XE CUT IVE OF F ICE R’S RE PORT Chairman’s Addre ss, Mike Harding L a d ie s a nd Ge ntle me n I a m ve ry ple a se d to re po rt tha t Do wne r d e live re d a stro ng fina nc ia l a nd o pe ra tio na l pe rfo rma nc e fo r the 2013 fina nc ia l ye a r. I n pa rtic ula r, we :  De live re d o n o ur g uida nc e , g ive n a t the sta rt o f the ye a r;  Co nside ra b ly stre ng the ne d o ur b a la nc e she e t; a nd  Ha ve no w d e live re d 59 Wa ra ta h T ra in se ts to the Ne w So uth Wa le s g o ve rnme nt a nd the y a re o pe ra ting ve ry we ll. T he re a re 68 se ts in the c o untry a nd the fina l se t is sc he d ule d fo r de live ry in mid-2014. At la st ye a r’ s Annua l Ge ne ra l Me e ting , I sa id the Bo a rd wo uld like to re sume pa ying d ivid e nd s a s so o n a s it wa s a ppro pria te , ha ving re g a rd to the Co mpa ny’ s p e rfo rma nc e , its b a la nc e she e t stre ng th a nd its c a pa c ity to d istrib ute fra nking c re d its. I a m ple a se d tha t the se c rite ria we re sa tisfie d a nd we pa id a Ha lf Ye a r a nd a F ull Ye a r divide nd. I n wha t ha s b e e n a d iffic ult ye a r fo r c o mpa nie s in o ur se c to r, Do wne r’ s stro ng pe rfo rma nc e a nd the re sumptio n o f d ivid e nd s is a we lc o me o utc o me fo r yo u, o ur sha re ho lde rs. On b e ha lf o f the Bo a rd , I wo uld like to tha nk yo u fo r yo ur suppo rt. I n a dditio n, I wo uld like to tha nk yo ur Chie f E xe c utive Offic e r, Gra nt F e nn, his e xe c utive te a m a nd impo rta ntly a ll the Do wne r e mplo ye e s a nd c o ntra c to rs who wo rke d ve ry ha rd during the ye a r to de live r the re sults. I c a n a ssure yo u we a re a wa re tha t we must c o ntinue the ha rd wo rk, b uild o n the se fo und a tio ns a nd d e live r c o nsiste ntly in the ye a rs a he a d . Yo ur Chie f E xe c utive Offic e r will so o n o utline the hig hlig hts o f o ur fina nc ia l a nd o pe ra tio na l pe rfo rma nc e in his re po rt to sha re ho ld e rs. T he he a lth a nd sa fe ty o f o ur pe o ple is pa ra mo unt a t Do wne r. T ra g ic a lly, a s re po rte d a t la st ye a r’ s Annua l Ge ne ra l Me e ting , we ha d a fa ta lity in Ne w Ze a la nd in Oc to b e r 2012. Do wne r is fo c using o n its c ritic a l risks a nd we ha ve intro duc e d c a rdina l rule s tha t pro vide dire c tio n a nd g uida nc e o n the se c ritic a l risks. L a te r in the Me e ting yo u will b e a ske d to vo te fo r the re -e le c tio n o f thre e No n-e xe c utive Dire c to rs – Anna b e lle Cha pla in, Dr Gra nt T ho rne a nd Jo hn Humphre y. Yo u will he a r b rie fly fro m e a c h o f the m b e fo re yo u vo te a s pa rt o f the fo rma l pro c e e ding s. Sub je c t to the ir re -

e le c tio n, we no w fe e l the Bo a rd ha s the a ppro pria te b a la nc e o f skills it ne e d s fo r the future . F urthe rmo re , a s the a ve ra g e te nure o f the No n-e xe c utive is thre e ye a rs, we ne e d to no w ha ve so me sta b ility. Re c e ntly, the Do wne r Bo a rd fe lt it wa s a ppro pria te to und e rta ke a c o mpe titive te nd e r pro c e ss fo r the e xte rna l a ud it o f Do wne r. T his is b e c a use De lo itte ha s b e e n Do wne r’ s e xte rna l a udito r sinc e 1998 a nd De lo itte ’ s le a d a udit pa rtne r, Andre w Griffiths, is c o mple ting his 5-ye a r ro ta tio n a t the e nd o f the 2014 fina nc ia l ye a r. F o llo wing d e ta ile d e xpre ssio ns o f inte re st fro m the fo ur la rg e st a ud it firms in the Austra lia n ma rke t, inc luding De lo itte , the Bo a rd pro po se s to re c o mme nd to sha re ho lde rs tha t K PMG b e a ppo inte d a s the ne w a udito r o f the Do wne r Gro up , e ffe c tive fro m the 2015 fina nc ia l ye a r. Sha re ho lde rs will vo te o n this a ppo intme nt a t the 2014 Annua l Ge ne ra l Me e ting . T he Dire c to rs o f Do wne r re c o g nise the pro fe ssio na lism, o b je c tivity a nd ind e pe nd e nc e displa ye d b y De lo itte during the ir te nure a s a udito r a nd, in pa rtic ula r, the c o ntrib utio n ma d e b y And re w Griffiths, the le a d a ud it pa rtne r. T he Bo a rd b e lie ve s the c a pa b ility o f Do wne r’ s se nio r ma na g e me nt te a m ha s stre ng the ne d furthe r during the ye a r, a nd tha t this is re fle c te d in the Gro up’ s impro ve d pe rfo rma nc e a nd b usine ss c ulture . Sig nific a nt pro g re ss ha s b e e n ma de o n the Wa ra ta h T ra in Pro je c t o ve r the pa st ye a r. As I me ntio ne d e a rlie r, we ha ve no w d e live re d 59 o f the 78 tra in se ts, the y a re pe rfo rming e xtre me ly we ll a nd the fina l tra in is d ue to b e d e live re d in mid -2014. T he Bo a rd ha s e nsure d tha t ma na g e me nt c o ntinue s to fo c us o n pro je c t a nd risk ma na g e me nt, whic h is the life b lo o d o f a c o mpa ny like Do wne r. Ge tting the rig ht pe o ple , pro c e sse s a nd skills o n the pro je c ts is ke y to o ur future suc c e ss. As the Co mpa ny sta te d a t its F ull Ye a r re sults in Aug ust, the 2014 fina nc ia l ye a r will b e a c ha lle ng ing o ne fo r Do wne r a nd its pe e rs, a ltho ug h we e xpe c t to d e live r a fla t ne t pro fit a fte r ta x re sult. I no w invite o ur Chie f E xe c utive Offic e r, Gra nt F e nn, to pro vide a n upd a te o n the Gro up’ s o pe ra tio ns a nd the o utlo o k fo r 2014 b e fo re I re turn to disc uss the ite ms o utline d in the No tic e o f Me e ting . T ha nk yo u.