Downer EDI Limited ABN 97 003 872 848 Triniti Business Campus 39 Delhi Road North Ryde NSW 2113

1800 DOWNER www.downergroup.com

1 November 2018

BUILDING NORTH QUEENSLAND'S DEFENCE SUPPLY CHAINS FORUM

Thank you for your attendance at the Forum, as well as your continued interest in Downer and Spotless (Downer Group).

Our long-established and continuing support of North Queensland local industry is represented by the permanent workforces and facilities of our Asset Services, RPQ and Spotless businesses.

The accompanying documents provide an overview of Downer Group’s collective Defence Industry capabilities and services. In addition to reviewing these, we encourage you to discover more by reaching out to the below representatives:

Downer Defence Development

Trent Higgs  07 3249 0153 Manager Strategy & Growth  [email protected]

Spotless Defence

David Gardiner  0421 342 662 Procurement Manager  [email protected]

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DEFENCE SERVICES 53K $12B $42B STAFF REVENUE ORDER BOOK

DOWNER SERVICE LINES SUPPORT THE ENTIRE MILITARY CAPABILITY LIFECYCLE

DOWNER GROUP DOWNER SPOTLESS AGIS ENVISTA

STRATEGY AND RISK MITIGATION AND IN-SERVICE ACQUISITION CONCEPTS REQUIREMENT SETTING AND DISPOSAL

PROFESSIONAL SERVICES

• Consulting and advisory services PROJECT DELIVERY • Business case development • Project Construction and • Strategic management maintenance of: THROUGH-LIFE SUSTAINMENT procurement • Early contractor • HV electrical support involvement • Road and runways • Asset management • Cyber security and • Managing ICT strategy and • HVAC and • Engineering support ESTATE UPKEEP contractor mechanical architecture • Maintenance support • Head building • Water and waste • Systems engineering contractor • Supply support • Integrated facilities water management • Operational concepts • Vertical construction • Training support development • Power generation • Estate upkeep • Design • Operations support • Capability lifecycle • Gas and fuel • Maintenance management infrastructure • Fleet management definition and • Asset management documentation • Systems integration • Information and • Sustaining capital communications • Data management projects technology (ICT) • Land management • Upgrades and • Physical and • Cleaning and modifications electronic security housekeeping • Platform • Laundry services manufacture and • Base operational services assembly • Utilities management

Our business is founded on the deeply held value of Zero Harm. We firmly believe that any injury or disease is unacceptable and preventable. The health and safety of our people and communities is always our top priority. A TRULY AUSTRALIAN COMPANY

Downer Group provides a broad range of strategic, technical and facilities services to the and the New Zealand Defence Force, as well as civilian agencies.

Downer Group (incorporating Spotless, Downer, AGIS and Envista) is a seamless team with unmatched capabilities in maintenance, operations, strategic advice, technical services, construction and program management, professional advisory services, estate maintenance, through-life support, specialist trades and building construction. Resulting from our partnerships with Defence is a wealth of experience to respond to the changing operational needs of the Army, Navy and Airforce. Downer Group brings together the experience and technical expertise in the delivery of a full range of facilities and asset management services — ensuring quality and rigorous compliance. As an ADM Top 10 Defence Contractor, we are proven as a trusted and long-term partner.

1 DOWNER / SPOTLESS HISTORY WITH DEFENCE

Construct four ‘River Class’ Awarded first generation outsourcing Frigates (HMAS Burdekin, HMAS contract for defence estate upkeep Diamantina, HMAS Shoalhaven and maintenance works (buildings and and HMAS Murchison) for Royal facilities, plant and equipment) Australian Navy

Construct Explorer-class vessels: HMAS Bass and HMAS Banks

Construct F-111 Maintenance Hangar for RAAF Amberly

Awarded airfield lighting and control systems contract at RAAF Bases Pearce and Gin Gin Construct 8 Balikpapan class landing craft (400 soldier capacity)

1941 1953 1965 - 1968 1969 1977 1988 1998

1943 1960 1971 1995 2000 Construct 20 Attack Class Patrol Boats at facilities in Brisbane and Design and Maryborough manufacture Echidna Explosive Ordnance Construct Koala-class Demolition robot vessel: HMAS Kimbla

Awarded $22m electrical services construction at RAAF Base Learmonth

Construct supply carrier vessel HMAS Japarit

Partner with Mercedes Benz to deliver the Medium Recovery Vehicle variant of the Unimog truck Construct 11 Bathurst Class anti submarine Frigates for

Images courtesy of the Royal Australian Navy and Victoria Police Museum

2 Appointed as estate Awarded contracts for defence estate upkeep upkeep and base and maintenance works (buildings and facilities, operations services plant and equipment) for various Defence bases provider to 170 in NT, WA, VIC and SA. defence sites across QLD and NSW in $2 billion multi year Appointed first generation of contract combined hard and soft services contract for SE QLD Defence bases

Appointed facilities maintenance Awarded and deliver runway pavement contractor for NZ Southern overlay at HMAS Albatross Region (Burnham)

Appointed Awarded $19m of HV upgrade works at integrated Holsworthy defence base facilities Awarded taxiway provider for 25 widening project at years to HQJOC Awarded $30m of HV upgrade RAAF Williamtown high security works at RAAF Williamtown facility

2003 2007 2010 2011 2018

2001 2004- 2006 2008 2014 2015 2017 Appointed Managing 2005 Contractor for $140m Shoalwater Bay Training Delivered airfield Appointed facilities Area Remediation Project pavement surface maintenance enrichment to contractor for NZ Airfield, Defence Central Awarded HV upgrade, RAAF Pearce, RAAF Region (Burnham) RAAF Richmond Darwin, RAAF Gin Gin, RAAF Tindall, HMAS Albatross, RAAF Amberley, RAAF Awarded HVAC Townsville and RAAF works package, Scherger Provide HMAS Cerberus extensive runway rehabilitation works at RAAF Appointed as one of Richmond, RAAF Awarded $10m of HV four Major Service Williamtown and Providers (MSPs) to the electrical upgrade works at RAAF Edinburgh RAAF Williamtown Department of Defence’s Capability Acquisition and Sustainment Group (CASG)

Awarded 20km fibre optic communications line installation, SA Defence Installation

3 DEFENCE EXPERIENCE

Downer Group helps our defence clients maximise operational capability outcomes and reduce costs while maintaining a focus on the conditions and comfort of Defence and base personnel.

DEPARTMENT OF DEFENCE ESTATE MAINTENANCE AND OPERATIONS SERVICES, QLD AND SOUTHERN NSW Spotless provides integrated services to Defence across 170 bases in Australia through our Department of Defence Estate Maintenance and Operation Services (EMOS) contract, encompassing the Queensland and Southern NSW Defence Regions including the ACT. The EMOS QUEENSLAND MAJOR BASES SERVICED: contract includes all Base Services activities that support and service the land, buildings and • RAAF Base Townsville infrastructure on the Defence Estate. • HMAS Cairns Contracted until 2022, Spotless provides: • Lavarack Barracks Townsville • Army Aviation Centre Oakey • Estate upkeep (planned and reactive maintenance) • RAAF Base Amberley • HVAC, electrical and power generation services • Kokoda Barracks Canungra • Training areas and range management • Gallipoli Barracks Enoggera • Land management NSW MAJOR BASES SERVICED: • Laundry, dry cleaning and treatment • Cleaning and housekeeping • HMAS Creswell • Base services support centre • HMAS Harman • Transport and airfield operations support • Royal Military College Duntroon • Pest and vermin management, control and • Australian Defence Force Academy treatment • Russell Offices Canberra • Reprographics and printing • RAAF Base Wagga • Sports and recreation • Blamey Barracks Kapooka • Management, integration and coordination • HMAS Albatross

4 WE MAINTAIN AND SUPPORT 170 DEFENCE BASES

5 DEFENCE EXPERIENCE

WE HAVE DELIVERED OVER 2 MILLION M2 OF RAAF AIRFIELD PAVEMENT WORKS

ROAD AND RUNWAY MAINTENANCE NZDF: DEFENCE PROPERTY GROUP, Our pavement rehabilitation expertise has provided MANAWATU AND SOUTHERN REGION vital airfield maintenance works on roads, runways Spotless provides facilities maintenance services and taxiways at RAAF Base Williamtown, RAAF Base under the contracts of Facilities Maintenance and Edinburgh and RAAF Base Richmond, NSW through Management Services at New Zealand Defence the National Airfield Maintenance Program. Force (NZDF)’s Manawatu Hub (Central Region) Downer also refurbished the Puckapunyal tank and National Army Museum, for our client, the target track in Victoria, as well as drainage NZDF: Defence Property Group. improvements and maintenance. We have provided facilities maintenance services to NZDF since 2011 and will continue to service the HEADQUARTERS JOINT OPERATIONS contract through to June 2021. Our remit includes: COMMAND, AUSTRALIAN CAPITAL • Asset management TERRITORY • Data management Spotless delivers facilities management services • Operational maintenance to the Department of Defence at its high security • Cleaning Headquarters Joint Operations Command • Grounds maintenance (HQJOC) site through a Public Private Partnership arrangement. HQJOC is the command centre • Swimming pool management where the Australian military control all overseas Since our first facilities maintenance contract ‘war like activity’ along with domestic emergencies was awarded in 2005 for Trentham Military where Defence have a commanding role. Camp, Spotless has provided a broad range of Spotless provides a total facilities management asset management and facilities management service including building and equipment services to a number of NZDF locations, including maintenance, security and emergency response, the Manawatu Hub and National Army Museum cleaning, catering, helpdesk, administration in addition to Trentham. In June 2015 we were and concierge services, pest control, waste awarded the facilities maintenance contract for the management services, and asset lifecycle NZDF Southern Regional Burnham Military Camp. replacement requirements.

6 DEFENCE EXPERIENCE

WE HAVE BEEN SUPPORTING DEFENCE FOR OVER 80 YEARS

7 DEFENCE EXPERIENCE

WE HAVE DELIVERED >$100M OF HV UPGRADES TO DEFENCE INSTALLATIONS

DEFENCE PROFESSIONAL SERVICES BASE ELECTRICAL SERVICES AGIS and Envista are Downer’s lead businesses Downer delivers electrical services to Defence in the provision of professional services across base infrastructure, including earthing and the Defence and National Security domain. bonding installations for aircraft and support Now working together, with over 270 security ground equipment, and providing lightning cleared consultants, both companies have proven protection at Defence Establishment Orchard and extensive track records delivering project Hills. Downer replaced high voltage generators management, systems engineering, commercial during the Liverpool Area Military High Voltage support, capability management, ICT, cyber security, Upgrade Project and are carrying out the current solutions architecture, platform integration, and upgrade of HV infrastructure at RAAF Base integrated logistic support services. Williamtown. Low voltage switchboards, protection panels, control panels and PMCS panels can be The teams are adept at contributing to outcomes manufactured in-house, ensuring equipment across the Capability Life Cycle (CLC) for most meets custom specification and is fit for purpose. ADF Materiel Systems. These businesses have Managing outages, shutdowns and understanding established themselves as thought leaders and the Defence operational requirements during major contributors to the modernisation of land, electrical upgrades are major considerations maritime, air and joint communications and in these critical projects, and all work is done information systems in the ADF throughout the last in compliance with Defence safety and security decade. The companies have supported key elements requirements. of the next generation of information environments, defining operating concepts and system architectures to meet new threats, replace obsolete capabilities, PLATFORM AND EQUIPMENT UPGRADES and achieve Government approvals. Downer has worked closely with the Australian Army to design and manufacture the Echidna As technology consulting service providers Explosive Ordnance Disposal Robot; constructed specialising in ICT and C4ISREW, AGIS and Envista significant infrastructure such as the F-111 partner with Defence to plan, architect and deliver Fighter/Bomber Maintenance Hangar at RAAF complex and security sensitive capabilities. Our Amberley; and partnered with Mercedes-Benz to reputation is built on defining and delivering complex deliver the Medium Recovery Vehicle (MRV) which large-scale multi-million-dollar systems across is still in service today. multiple security domains with physical, information and cyber security integrated across all services.

8 DEFENCE EXPERIENCE

9 CASE STUDIES: THROUGH-LIFE SUSTAINMENT OF KEY PLATFORMS

ULTRA-CLASS VEHICLES advancements in autonomous vehicular technology and applications. SCALE QUALITY In addition to our own fleet of over 3500 pieces We have in-house asset management specialists, of plant and equipment, we maintain 700 units of test and evaluation experts and and reliability heavy mining haulage and earthmoving equipment, engineers to support our maintenance teams. All including 450 pieces of ultra-class (carrying capacity work is conducted in accordance with Downer’s >272 tonnes), and 210 staff in three ultra-class Integrated Management System, accredited to maintenance facilities. ISO9001 and ISO 55001. SCOPE As part of our holistic asset management and fleet SYDNEY TRAINS management capabilities, we perform scheduled and breakdown maintenance and specialist tyre SCALE management, condition monitoring, reliability • Initial $3.6B contract to deliver 78 eight- engineering, planning and maintenance. carriage Waratah passenger trains for the NSW Sydney rail network, with a 30-year ACHIEVEMENT maintenance agreement. In support of one of our mining clients, we have driven changed maintenance procedures that • Second $1.7B Sydney Growth Trains contract have reduced maintenance costs by $30m and to deliver 24 double deck eight-car trains (with increased equipment productivity by 35%. The options for 45 additional sets), with a 25-year application of our innovative technology and maintenance agreement. data management capabilities has resulted in • 217 highly skilled staff including 25 engineers, the development of our RAMS Health and Usage 135 technicians, and 10 apprentices. Monitoring System. The is OEM agnositic solution RAMS is enabling additional efficiency, reliability SCOPE and productivity improvements. • Prime contractor for manufacture and delivery of Sydney Growth Trains, Waratah Trains and PARTNERSHIPS simulator. We work with the world’s biggest Original • Design, Construct and operation of $220M Equipment Manufacturers (OEMs) on equipment Auburn Maintenance Centre as part of PPP such as 360-tonne Caterpillar 797 haul trucks, project. diagnosing and engineering to keep them running in the most cost-efficient manner. Through our • Through Life Support Contract for 30 years relationship with Hitachi, we are supporting (Waratah Trains) and 25 years (Sydney Growth

10 ENGINEERING SUPPORT Asset Management, reliability engineering, modifications engineering, process improvement, test and evaluation, data analysis

MAINTENANCE SUPPORT Maintenance management, preventative, corrective, planned and reactive maintenance

SUPPLY SUPPORT Logistics, spares and parts, Logistic Support Analysis (LSA), warehousing

TRAINING SUPPORT Operator and maintainer training development and delivery

OPERATING SUPPORT OUR THROUGH-LIFE SUSTAINMENT CAPABILITIES SUSTAINMENT THROUGH-LIFE OUR Fleet management, operational efficiency and productivity analysis and operation of vehicles, plant and equipment

Trains). The performance based contract includes, Engineering, Operations, Maintenance, YARRA TRAMS Supply and Training support services. SCALE • Development and maintenance of training documentation, and maintenance of the training • 450+ trams; simulator. • 2,200 employees; ACHIEVEMENT • 250km of track; • Waratah Trains achieved 100% availability over 4 • 35,000 weekly services; months including additional sets throughout the Easter period; up to 76 Sets each. • 180 million passengers a year • Over a year, the Waratahs made up approx. 25% Yarra Trams moves more than 200 million of the city’s rail fleet but were responsible for people each year, and is the primary mode of only 5 per cent of the faults on trains in Sydney. public transport for inner-suburban residents, • Downer Rail manages and maintains the only connecting Melbournians with employment, two fleets operating on the Sydney network social, cultural and educational opportunities meeting Sydney Trains KPI targets. and choices. • Waratah Trains exceeded 3 Month Moving As the oldest continually operating electric Average reliability KPI target of 50,000km by tramway in the world, our focus is on asset 76,857km. stewardship, technology refresh and regulatory compliance. • Waratah Trains’ mean distance between incidents (MDBI) target exceeded, with Our combination of technical asset 84,561km against a requirement of 50,000km. management and customer-oriented approach deliver a quality public transport capability and OEM PARTNERSHIPS / INTERFACE experience. • Waratah Trains designed under JV with Hitachi, and manufactured by subcontractor Changchun With the Victorian Government, we have Railway Vehicles Co (CRRC). overseen a major investment in the modernisation of the network through the • Sydney Growth Trains to be manufactured and rollout of the E-Class tram, the renewal of the delivered by CRRC Changchun Railway Vehicles heritage depot at Preston and the upgrade of under sub-contract arrangement. select infrastructure across the network. • Waratah Trains project is a PPP with Sydney Rail, Reliance Rail, Downer and Hitachi.

11 CASE STUDIES

CASE STUDIES: PARTNERING WITH GLOBAL PRIMES

Downer Group has a long history of partnering with international primes to assist them in accessing, securing and delivering significant works in the Australian market.

MOUCHEL KEOLIS

RELATIONSHIP OVERVIEW RELATIONSHIP OVERVIEW A 50/50 joint venture between UK A 51/49 joint venture between French transport infrastructure provider Kier (Mouchel) operator Keolis and Australian contractor Downer and Downer EDI Limited. Formed in 2009 EDI Limited. Formed in 2009 to target multi-modal to target the management of major road public transport opportunities. networks through life sustainment and asset management. RELATIONSHIP SUCCESSES Keolis had no significant Australian presence RELATIONSHIP SUCCESSES or revenues before partnering with Downer. The Kier (Mouchel) had no Australian presence or Keolis /Downer Joint Venture has secured revenues before partnering with Downer. $5 billion of revenue across: The DM Roads joint venture has secured over • Yarra Trams Melbourne – operating and $3 billion of revenue across: maintaining the world’s largest light rail network • Intelligent transport systems • G:Link Gold Coast – operating and maintaining maintenance contract (West Zone) – the Gold Coast light rail system five-year contract for NSW Roads & Maritime Services • Australian Transit Enterprises – running a fleet of 900 buses • Stewardship Maintenance Contracts (Sydney West, Sydney North Zones) – • Newcastle Transport – operating the seven-year contracts for NSW Roads Newcastle bus and ferry network & Maritime Services • Integrated Service Arrangements (3 THE KEY TO OUR SUCCESS HAS zones) eight years for Main Roads Western Australia BEEN OUR ABILITY TO: • Road Asset Maintenance for Main • Access a complex and deep Australian Roads QLD industry content supply chain • Regional maintenance contracts – • Provide local delivery presence and local seven-year contracts for Main Roads, labour content Western Australia • Leverage our track record with Federal and State Government as a long-term partner

12 CASE STUDIES

CRRC

RELATIONSHIP OVERVIEW This partnership between the worlds largest rail OEM Changchun Railway Vehicles (CRRC) and Downer EDI Limited began in 2011 to target long-term rail and transport sustainment opportunities.

RELATIONSHIP SUCCESSES CRRC had no significant Australian presence or revenues before partnering with Downer. CRRC / Downer-led consortiums secured $7.5 billion of revenue across: • Waratah Trains – design, delivery and 30-year maintenance of 78 double-decker eight-carriage passenger trains • Sydney Growth Trains - design, delivery and 25 year maintenance of 24 double-decker eight-carriage passenger trains • High Capacity Metro Trains - design, delivery and 30-year maintenance of 65 new metro passenger trains CASE STUDIES

CASE STUDIES: INNOVATION

We differentiate ourselves through the use of technology and innovation, to ensure our services to Defence are delivered with optimum efficiency and minimal cost to both client and the environment.

SOIL AND WATER ENERGY AS A SERVICE CONTAMINATION TESTING SOLUTIONS AND LABOUR Multiple defence sites have been affected by EFFICIENCIES aqueous film forming foam (AFFF) in the soil Spotless has several Energy as a Service (EaaS) from legacy fire-fighting foams. AFFF contains solutions, including solar pv panels, co-gen and contaminants that are difficult to remove. Spotless tri-gen generators and solar hot water systems. has purpose-built a facility to enable storage, Innovations with defence bases includes smart testing, separation and treatment of water and bin level sensors (which optimises collection sludge contaminated by AFFFs. routes and reduce costs) and replacing very costly emergency exit lighting with a much cheaper, IOT SENSORS end-to-end LED lighting solution, reducing costs, energy usage, emissions and waste. The Spotless Smart Sensor Solution enables us to remotely and wirelessly monitor asset conditions for effective proactive maintenance. These plug and play sensors measure meter counts, REMOTE ACCESS lights, on/off, vibration, humidity, temperature, MONITORING SYSTEM (RAMS) motion, and LUX, providing real-time data 24/7 for immediate response and insights into the FOR HIGH VALUE MOBILE performance of your assets. ASSETS Downer have developed our Remote Access ROBOTIC LAWNMOWERS Monitoring System (RAMS) to remotely monitor and report on the health, usage and Spotless has been trialling a robotic motor that performance of high value and complex mobile provides great control and obstacle sensors assets. to shut down/redirect the machines for safety. Spotless has been working closely with Husqvarna Combining the capabilities of our plant and to make the tool even more effective in the Defence equipment, IoT and advanced analytics teams, environment. RAMS solves the problem posed by OEM proprietary and federated monitoring systems and provides an aggregated and cost-effective HYDRO-STATIC PAVERS tool for the management of diverse fleets. Hard stand areas across Defence Estates can cause Through a simple OEM agnostic interface, drainage issues in addition to mould and mildew fleet managers and asset owners are able build-up on concrete and paved areas. Hydro- to readily view the status of their fleet, static paving absorbs water and reduces run off identify opportunities to improve utilisation and subsequent erosion. The durable eco-friendly and performance, and adjust maintenance pavers provide benefits in cost-savings from mould programs to minimise total cost of ownership. and mildew cleaning, and water conservation.

14 CASE STUDIES

TRAPEZOIDAL RUNWAY GROOVING Downer have worked with its international supply chain to secure exclusive Australian and New Zealand rights to the innovative trapezoidal runway grooving technology used at some of the world’s biggest international airports and an array of US Defence bases. This specialist grooving technology improves runway pavement safety and reduces pavement maintenance through: • Increasing groove integrity in comparison to standard grooving • Reducing rubber build-up in the landing and braking zones • Promoting rapid water evacuation from the runway surface Downer has the sole partnership in Australia and New Zealand to provide this leading edge, proven and globally patented grooving technology.

15 MORE ABOUT DOWNER GROUP

Downer Group (incorporating Spotless, Downer, AGIS and Envista) is Australia’s top fifth largest employer, retaining 53,000 staff. We are ASX Listed, boasting a $12 billion revenue at last quarter, an order book value of $42 billion and we have sovereign industry capability.

Downer designs, builds and sustains assets, infrastructure and facilities and is the leading provider of integrated services in Australia and New Zealand. WE DELIVER $6B OF WORKS TO GOVERNMENT ANNUALLY

DARWIN

CAIRNS

200 TOWNSVILLE

9,700

7,500 BRISBANE

3,900 7,500

630 CANBERRA 13,300

12,000 EMPLOYEES BY STATE

TRANSPORT RAIL UTILITIES SPOTLESS EC&M MINING

• Surfacing • Manufacturing • Power • Heath, • Engineering • Open cut education and • Network • Maintenance • Gas government • Construction • Underground management • Public • Water • Commercial and • Operations • Blasting • Bitumen and leisure and transport • Renewable • Asset and tyre logistics maintenance operations (DEFENCE FORCES) • Defence base (BUSINESS) energy management • Infrastructure and township • Communications projects • Laundries and linen

HOSPITAL

HOTEL

GAS CO LAUNDRY CLEANO

SCHOOL

16 SECONDED 50 PEOPLE TO WORK IN JARWUN INDIGENOUS COMMUNITIES SINCE 2004 We proudly deliver service to Australia and New Zealand’s Defence Force through these companies

DOWNER GROUP

DOWNER HEAD OFFICE 39 Delhi Road, North Ryde NSW 2113 • T +61 2 9468 9700 • downergroup.com

SPOTLESS HEAD OFFICE 549 St Kilda Road, Melbourne VIC 3004 • T +61 3 9269 7600 • E [email protected] • spotless.com

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