2015 Annual Report

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2015 Annual Report 2015 Annual Report CIMIC Group Limited ABN 57 004 482 982 For more than 80 years CIMIC Group, through its Operating Companies, has played a significant role in building our region. Marcelino Fernández Verdes Executive Chairman and Chief Executive Officer our fresh approach to business Since the establishment of In 2014 and 2015 we extended this our mining operations as a history - transforming our operating small earthmoving business model, delineating our operations by activity and establishing new businesses. in 1934 by five brothers, We now have businesses covering and the foundation of our mining, construction, public private construction business in partnerships (PPPs), and engineering. 1949, CIMIC and its Operating Each has a separate focus, whilst sharing Companies have been closely a common approach to governance. involved with engineering, To reflect our new approach to business, mining and infrastructure we have refreshed our branding (outlined contracting in Australia and overleaf) and our Code of Conduct, and launched Group-wide Principles, to unify around the globe. our culture and operations. Our Principles are Integrity, Accountability, Innovation and Delivery – underpinned by a continual focus on Safety. The Principles exist to guide our actions and act as a common unifying bond across our operations. Our Principles guide us as we work to meet the needs of our clients and other stakeholders, and this is what ultimately helps drive continued shareholder returns. * our fresh approach to business Safety underpins everything we do. RECENT APPOINTMENT The provision of a safe and healthy working environment for all our During the year we employees and those under our appointed Adolfo Valderas care is vital. We hold ourselves to a as Deputy Chief Executive consistently high standard of health and Officer, in addition to his safety wherever we operate and we are role as the Group’s Chief committed to the elimination of injuries. Operating Officer. These changes, along with many others we have made during the past year, aim Adolfo has had an integral role in to sustain CIMIC as a leader. the transformation of our operations Adolfo Valderas during the past two years, and he will Deputy Chief Executive Officer be of great value to our company in and Chief Operating Officer this new role. Adolfo will leverage the many opportunities before us to the benefit of our shareholders, clients and employees. Trained as a civil engineer, Adolfo has held leadership roles with ACS companies (construction and PPPs) internationally and brings his considerable management capabilities to the position. * While Leighton Contractors has been renamed as CPB Contractors, Leighton Asia has retained its name. streamlined operations streamlined In January 2016 we launched a new brand for our Australian-headquartered construction operations, following the merger of the construction businesses of Thiess and Leighton Contractors. Pacific Partnerships is the name of our Public Private Partnership (PPP) business, formed by blending the PPP and Build Own Operate Transfer capabilities of CIMIC’s Operating Companies into a single entity. The company’s new name – Major project awards for 2015 included These project awards demonstrate CPB Contractors – reflects nationally significant Australian that our construction operations are its heritage and capability in transport infrastructure projects such successfully delivering innovative as the WestConnex M4 East Motorway and cost effective solutions that Construction, Civil, Projects and New M5 Motorway (NSW), Torrens meet our clients’ needs. This means and Building, as well as the Road to River Torrens motorway (SA), we are increasingly competitive and expertise of our People. CityLink Tulla Widening from Bulla strongly positioned for future project Road to Power Street (VIC) and Mitchell opportunities in our markets in The logo uses three shapes from Freeway Extension (WA). Major gas Australia, the South Pacific and Asia. the CIMIC logo and signifies infrastructure awards included the transformation in action. The use of Collaborative Well Delivery project for orange reflects its Leighton heritage. Australia Pacific LNG and the Surat Our global construction operations, Basin project for QGC. incorporating CPB Contractors and In Asia, we were awarded the Liantang Leighton Asia, performed well during / Heung Yuen Wai Boundary Control 2015, successfully delivering work for Point between Hong Kong and China for clients and winning new work. the Government of Hong Kong SAR and the Shatin to Central Link – Exhibition Station and Western Approach Tunnel for MTR Corporation Limited. The PPP expertise within its role in bringing together three delivering the $3.7 billion operations, Pacific Partnerships has a elements: trains and systems package. The project long heritage as part of the • development of infrastructure with includes construction, procurement of rolling stock and operation for 15 years. CIMIC Group. CIMIC Operating Companies; • direct investment in those In South Australia, Pacific Partnerships CIMIC has been responsible for the infrastructure projects; and is the concession manager of the new delivery of more than 20 PPPs with • the provision of operation and Royal Adelaide Hospital, Australia’s a market value of around $32 billion. maintenance services as a long-term most advanced hospital and the single These include approximately 135km partner to clients. largest infrastructure project in the of arterial roads, 35km of major road state’s history. and rail tunnels, 1,400km of rail track, In New Zealand, for example, Pacific Australia’s longest rail tunnel, New Partnerships manages the concession The creation of Pacific Partnerships Zealand’s first road PPP, 10 social for the 27km, four-lane Transmission optimises our capabilities in infrastructure PPPs totalling over Gully motorway which is currently being infrastructure construction, PPP $11 billion and more than 2,000 constructed by CPB Contractors (in services, and operations and hospital beds. joint venture) north of Wellington. The maintenance services so that we may project includes a 25-year operations grow our share of large and complex The Pacific Partnerships logo utilises and maintenance contract. PPP projects and offer end-to-end the shapes of the CIMIC logo, with the services to clients. arrow representing Pacific Partnership’s In Sydney, Pacific Partnerships has key point of differentiation, being equity in North West Rail Link, where CPB Contractors (in joint venture) is In 2014, Thiess was confirmed as our global mining business and, in 2015, this position was strengthened with the expansion of its operations by commodity and geography. In 2014 and 2015, we combined our existing engineering skills into a new, focused engineering entity named EIC Activities. The EIC name stands for Engineering, Innovation and Capability. Thiess, our global mining During the year, Thiess was awarded Expanding Thiess’ strong mining business, is the world’s new work at BHP Billiton’s Rocky’s service capability into the Americas and largest contract mining Reward nickel mine in Western Australia leveraging its bases in Australia and and at Antofagasta Minerals’ Encuentro Asia will allow Thiess to drive further company, with technical Oxides copper mine in Chile. The growth in 2016 and deliver sustainable and operational services, project wins extend Thiess’ operations mining solutions to clients across its capabilities and projects to include nickel mining and expand global operations. Thiess’ global footprint to a new region: across Australia, New In 2015, Thiess also launched South America. Zealand, Indonesia, Mongolia, FleetCo – Australia’s most diverse India, Botswana and Chile Thiess also won further work with mining equipment hire company. covering the world’s major existing clients at the coal mines of FleetCo’s range of services includes mineral commodities. Ukhaa Khudag in Mongolia; Lake flexible equipment contracts for an Vermont, Dawson and the QCoal extensive mining fleet, including up Northern Hub in Queensland; and to ultra class equipment, and includes Mount Owen in New South Wales. comprehensive, tailored maintenance This demonstrates Thiess’ continued support from one of the world’s leaders commitment to delivering innovative, in mining asset management and technical mining solutions focused on maintenance. the whole spectrum of mining services. EIC Activities brings together Identifying and remedying risks EIC Activities’ research and technology all the Group’s technical earlier has led to significant cost capability enables us to build digitally expertise. EIC Activities savings and, in some instances, earlier first, through virtual construction and project completion. The outcomes are Building Information Modelling (BIM) – a delivers solutions, capabilities producing benefits for CIMIC and way of improving planning, construction and innovations across the our clients. and operation of projects with the help of 3D computer models. BIM improves industries of infrastructure, In a recent example, EIC Activities our ability to measure, map, visualise and industrial and building and developed an Instrumentation and control our business, and our research in the disciplines of Monitoring Data Management System. and development function captures and Effective measurement of data is knowledge management, shares innovation across our business. engineering methodology, essential during a project’s life cycle. specialist design and The EIC
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