Civmec Engineering & Construction Pty Ltd

AIM WA/AIDN WA Visit 3rd May 2016 Introduction

6,000T Wharf 3,000T Wharf 15,000T Wharf

Floating Dock

2 Surface Treatment Facility – 4,800m2 Heavy Engineering Facility – 29,300m

Exotic Materials Facility – 1,200m2 Office Headquarters – 6,500m2

Site Support Logistics Base – 2,300m2

Civmec is an integrated, multi-disciplined construction and engineering services provider to the resources, infrastructure and defence industries. Business Overview Locations

OUR FACILITIES AND OFFICES

www.civmec.com.au 4 4 Key Activities

HEAVY ENGINEERING MODULAR ASSEMBLY STRUCTURAL MECHANICAL PRECAST CONCRETE SITE CIVIL WORKS & PIPING INSTALLATION

INSULATION MAINTENANCE OFFSHORE LOGISTICS ACCESS SOLUTIONS REFRACTORY

5 5 Previous Years Output

Fabrication, Year Revenue Peak Workforce Site Civil Works Precast Concrete Modularisation & SMP

SGD People M3 Tonnes Tonnes

2010 $20M 70 4,000 7,200 0

2011 $60M 120 15,000 9,600 2,000

2012 $330M 900 42,500 95,000 16,000

2013 $400M 1,100 52,500 105,000 25,000

2014 $434M 1,500 40,000 110,000 30,000

2015 $499M 1,650 28,000 100,000 45,000

www.civmec.com.au | 6 6 Civmec Highlights

Workshop Complete Office Development and Ready For Completed Production Formed Civmec- DLG Pty Ltd

Acquired Land in Henderson Entered Subsea Heavy Commenced Structural, WA & Commenced Operations Engineering Industry Mechanical & Piping 2010 2011 2012 2013 2014 2015

Erection of Workshop Public Listing on Surface Treatment Facilities (Henderson, WA) the SGX Facility Complete

Established Defence Commenced Heavy Expansion into the Engineering Business Unit business unit civmecwww.civmec.com.au | Northern Territory 7 7 Differentiators What makes Civmec successful?

8 HSEQ

Civmec is committed to the delivery of Health, Safety, Environment and Quality Management. Our strong culture drives personal accountability so that each day at Civmec shall be a ‘Safe Day Good Day’.

Health & Safety Management • AS 4801:2001 accreditation • Maintaining our systems to high standards • Commitment to achieving “zero harm” • InControl - safety management system

Environmental Management • ISO 14001 accreditation

Quality Management • ISO 9001:2008 accreditation • Registration covering excavation work, civil concrete structures, fabrication of steel, surface treatment, Insulation and site construction works (SMP)

www.civmec.com.au | 9 9 Our People

1,550 personnel Australia wide Front Line Leadership courses Fitness for work centre Registered Training Organisation

www.civmec.com.au | 10 10 www.civmec.com.au | 11 11 Key Differentiators

• Agile, committed and energetic leadership • Loyalty and consistency • Commitment to: – Continuous improvement – High productivity achieved through: • Innovation, and • investment in people, processes, facilities and equipment • Customer satisfaction

12 Key Capabilities & Project Experience Fabrication and Modularisation

We have capacity to fabricate 50,000T of steel work per year. We have over 48 onsite mobile and overhead cranes with a single lifting capacity of 200T, experience in the following • Structural Steel • Pressure Piping – Carbon Steel – Duplex Steels – Stainless Steels – CRA – Chrome Molly • Subsea Manifolds & Subsea Structures • Subsea spools • Plate work and Tankage

PROJECTS • Prelude FLNG • Wheatstone LNG • Gorgon LNG • Coniston/Balnaves/GES • Persephone

www.civmec.com.au | 14 14 Subsea Project Experience

• 4 off subsea suction piles weighing approx. 300 tonnes each • 8 off 'buckle trigger' subsea frames weighing approx. 45 tonnes each • 8 off 12” Pipeline End Terminations Wheatstone – Subsea Spools Prelude – PLET’s • 8 off PIG Launcher and Receivers (PLR).

• Fabrication of 1 x 6 Slot Manifold • Duplex Pipe Spooling • Duplex Stainless Steel Tubing • Fabrication of 1 x PLEM • Fabrication of 17 x Goosenecks (ex Coniston Manifold Balnaves Manifold 200NB Schedule 160 Duplex material)

www.civmec.com.au | 15 15 Subsea Module Construction

www.civmec.com.au | 16 Piping Capabilities

We have dedicated pipe fabrication bays within our main workshop as well as segregated area for stainless steel and exotic materials: • Large WPS library for multiple materials • Utilisation of numerous welding processes FCAW, GMAW (STT), TIG & SAW • Latest automated equipment , Tip TIG, Orbital TIG • Individual Jib cranes for Pipe fitters and Welders • Manipulators, Rotators for rotating butt and fillet welds • Almost 90 Special Glass Coded Welders • CNC controlled pipe cutting machine • New 1,200m2 dedicated stainless steel & exotic materials Piping workshop.

Piping Fabrication Bay within our main workshop.

www.civmec.com.au | Super duplex rigid diver less spools Clamshell Pipe Cutter17 17 Shell Prelude FLNG Suction Piles

18 18 Modularisation

19 Complex Remediation

20 Pressure Vessels and Insulation

21 Heavy Engineering

22 Heavy Engineering

23 Precast Works

We have extensive experience in precast Civil works executing projects up to 110,000T precast works including: Caissons, manholes, foundations, retaining panels, seawater intake structures and establishment of onsite concrete batch plants

RECENT PROJECTS • Gorgon LNG • Wheatstone LNG • Ichthys LNG • Gateway WA Project • Elizabeth Quay • New Stadium

www.civmec.com.au | 24 24 Structural, Mechanical, Piping, Electrical and Insulation

We have extensive experience in performing major on site SMP works in the Oil and Gas and Mining Sectors; • Process Plants • Air Separation Plant • LNG Modules • Subsea Manifolds FAT & SIT Testing • Materials Handling equipment • Car Dumpers

LARGE EQUIPMENT FLEET • Heavy Lift Cranes up to 500T • Forklifts up to 32T • Access Equipment • Welding Plants • Scaffolding

RECENT PROJECTS • BOC Kwinana • Yandicoogina • Nammuldi • Roy Hill • Alcoa Kwinana

www.civmec.com.au | 25 25 Gorgon LNG Experience

• Fabrication and subassembly of over 11,000 tonnes of structural steel

• 1,200 spools – diameters ranging from DN15 up to DN1800

• Various material Grades including – 316/316L, 304/304L stainless steel SMP Modules Pipe Spooling

• Repair and assemble 500 tonne Sphere

• Fabrication and install new stairs, platforms and deluge pipe work

• Surface Treatment

• Fit-up, install of all E&I supports

Sphere – Refurbishment Sphere – Paint & Blast • Installed complete fire suppression system

www.civmec.com.au | 26 26 Earthworks and Site Civil

We have extensive experience in Site Civil works executing projects up to 30,000 M3 of concrete works including • Establish Mobile Batch Plants • Bulk Earthworks & detail excavation • Blinding • Formwork • Steel Reinforcement • Cast in embedment's • In-situ concrete – Foundations – Slabs – Pedestals – Walls

RECENT PROJECTS • Roy Hill • Marandoo Mine Expansion • Yandicoogina • Nammuldi • Hope Down 4 • Mungari Gold Mine www.civmec.com.au | 27 27 Rio Tinto Yandi

• 200,000m3 Earthworks • 25,000m3 Concrete • 6,500T of Structural Steel • 4,000T Mechanical Items • 30,000m of pipe – fabricated & installed • Project Duration 18 months (2013 to Owned Plant and Equipment Civil ConcretePipe Spooling & UG Services 2015) • Value $250m • Circa 800 personnel onsite • 14,500T total of Structural Mechanical Piping Erection

Multiple Packages Module Assembly

www.civmec.com.au | 28 28 Rio Tinto Nammuldi

• 4,400m3 Concrete

• 1,200T of Structural Steel

• 6.5km of pipe – fabricated & installed

• 94km of Cable (HV/LV)

• Project Duration 14 months Repairs and Maintenance Train Load-out Structures • Value $120m

• Circa 350 personnel onsite

• 1,800T total of Structural Mechanical Piping Erection

C+SMP+E&I Vertical Works Water Services Install (NPI)

www.civmec.com.au | 29 29 Roy Hill Project

• Fabricated Plate work 6,500T • Modular installation 2,000T • Installed Car dumper, Indexers, Apron Feeder • 1,500T mechanical items • Bulk of detailed earthworks C+SMP+E&I Vertical Works Roy HillPipe Underground Spooling Works • Installation of switch rooms and conveyor systems • In excess of 18km of Piping • 1.1km of Conveyor components • 249km of Cabling (HV/LV)

SphereRoyMultiple Hill – Refurbishment– LumpPackages Bins SphereModuleRoy Hill – Paint Assembly Modules & Blast

www.civmec.com.au | 30 30

• Fabrication and installation of structural steel 14,000T • Roof erection and Gantries • Facade support steel • Metal decking • 6,000t Precast concrete Perth Stadium Site ArtistsPipe ImpressionSpooling • Site civil works • Project duration 13 months • Circa 70 Personnel

SteelSphere Fabrication – Refurbishment & Erection PerthSphereModule Stadium – Paint Assembly &Interior Blast

www.civmec.com.au | 31 31 Painting and Insulation

We have extensive experience in executing both on-site and off-site Insulation and Painting projects, with our 4,800 m2 surface treatment facility complete with a 30M x 10M x 10M blast room to support our operations;

• Subsea • LNG Plants • Chemical Plants • Air Separation Plant

PROJECTS • Pluto LNG • Wesfarmers AN Plant • BOC Gases • Gorgon Sphere • Prelude LNG • Wheatstone LNG

www.civmec.com.au | 32 32 Perth Stadium Roof Truss #1 into blast chamber

www.civmec.com.au 33 33 Truss painted and ready for transport

www.civmec.com.au 34 34 SPMT Lift up to 4,600tn Defence Business Defence BU Development Plans

 Continue to expand existing business activities  Civil construction  Industrial infrastructure  Offshore Oil & Gas industry  Grow Defence Business through expansion of existing skills and new application of existing capabilities  Develop overseas markets

www.civmec.com.au | 37 Demonstration Submarine Hull Section

In November/December 2015 Civmec fabricated a submarine hull section. This included designing and building the jigs required to support fabrication.

This Project verified that:

• Our systems can operate with the new generation of naval shipbuilding systems (Integrated Product Design Environment (IPDE) for submarine development)

• Our cutting systems and equipment meet the required tolerances

• Our rolling equipment can operate with high yield strength steel

• We have the in-house knowledge to build custom-made equipment required in the fabrication and assembly of a submarine

• We can produce a prototype hull section which meets the required tolerances

www.civmec.com.au | 38 Data Transfer

DXF Files received from submarine designer and opened in Autocad. DXF File enabled measurements to be identified for plate thickness, T-Bar size and Shell Diameter

Drawings Civmec Pre-Processing department produced in-house drawings from DXF Files to assist in supply and manufacturing of prototype.

www.civmec.com.au | 39 Plate Rolling

www.civmec.com.au | 40 Fabrication Assembly

Shell sections placed vertically into Jig. Shell plates are then hydraulically manoeuvred to achieve full contact with T-Bars

Welding of longitudinal shell welds using the submerged arc welding process Welding of T-Bar sections to shell using the submerged arc welding process

www.civmec.com.au | 41 Hull Section Assembly Device

www.civmec.com.au | 42 Proof of Capability

www.civmec.com.au | 43 Planned Developments

Proposed Floating Dock location

5 x Planned Vessel Construction and Assembly Halls

www.civmec.com.au | 44 WA Defence Industry Challenges Defence Projects - Timing

Federal government planned defence acquisition projects will generate far more work than any one location can manage Eg. Maritime projects: (dates to roll first steel) SEA 3036-1 Pacific Patrol Boats 2017 SEA 1180 Offshore Patrol Vessels 2018 SEA 5000 Future Frigates 2020 SEA 1000 Future Submarines 2022

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 SEA 3036-1 Pacific Patrol Boats SEA 1180 Offshore Patrol Vessels SEA 5000 Future Frigates SEA 1000 Future submarines

www.civmec.com.au | 46 Factors to Consider

 Defence industry is a Fundamental Input to the Defence capability  A healthy and vibrant industry provides essential support to the military, especially during times of tension or war  Certain critical industry capabilities must be under sovereign control  Continuous build program allows:

 Level loading of workforce for optimal efficiency and productivity

 Managed training and skill development and career planning

 Evolution of vessel and equipment design with much lower levels of risk  Shipbuilding and In-Service support need to be located near major naval bases  Shipbuilding infrastructure and skills are adaptable to in-service support requirements  Close relationship between industry and warfighters is essential  Indian Ocean and SE Asia are the locations of most of the world’s hotspots of strategic interest to Australia now and in the foreseeable future  Australia’s Indian Ocean coastline is the location of significant national resources and associated infrastructure  is only 2/3 the distance compared to Sydney from the Arabian Gulf and SE Asia – allows quicker response time, easier support and greater operational effectiveness www.civmec.com.au | 47 Strategic Considerations

High potential hotspots

Key offshore resource zone

Transit Speed Transit Speed Passage 10kts 16kts (Eg SM) (Eg. Ship)

Fremantle to South China Sea 12.5 days 7.8 days

Sydney to South China Sea 18 days 11 days

Fremantle to Arabian Gulf 20.5 days 13 days

Sydney to Arabian Gulf 31 days 19.5 days www.civmec.com.au | 48 What is the best Strategic Solution?

• Strategic considerations as articulated on previous slide • Geography • Regional Political instability • Natural Resources • Support to fighting forces • WA’s existing industrial base has many synergies with a naval shipbuilding and maintenance industry • Allows movement of workforce between sectors as workload ebbs and flows • The Australian Marine Complex at Henderson, WA, is an outstanding facility well set up to provide optimal services to the RAN (and visiting Navies) as well as servicing other industry sectors • Existence of all the major defence companies in WA (BAE, Austal, Raytheon, Thales, Babcock, ASC, Civmec) – unique in Australia • Australia’s largest naval base is in WA at HMAS Stirling, home to Australia’s entire fleet of submarines and over half the frigates

www.civmec.com.au | 49 Current Situation

• Recent Decisions • “Major warships will be built in Adelaide and minor vessels in Henderson, Western Australia.” PM Announcement 18 April 2016

• Pacific Patrol Boats (PPBs) • Austal Ships Pty Ltd selected as the preferred tenderer to construct and maintain up to twenty-one replacement steel-hulled Pacific Patrol Boats in Henderson, Western Australia. • This program is estimated to be worth more than $500 million and will directly create over 130 jobs. • Austal proposes to conduct support of the replacement Pacific Patrol Boats including deep maintenance from Cairns, Queensland. • In total, through-life support and sustainment (including deep maintenance) for the Pacific Patrol Boats is valued at a further $400 million over the life of the boats. • Offshore Patrol Vessels (OPVs) • First pass approval for the Offshore Patrol Vessels, with construction to begin in Adelaide from 2018, following the completion of the Air Warfare Destroyers and transfer to Western Australia when the Future Frigate construction begins in Adelaide in 2020. • As part of the CEP three designers have been shortlisted; Damen of the Netherlands, Fassmer of Germany, and Lurssen of Germany to refine their designs. • This program is estimated to be worth more than $3 billion and will create over 400 direct jobs.

50 Current Situation (cont) • Recent Decisions (cont) • Future Frigates (SEA 5000) • First pass approval for the Future Frigates. Three designers - BAE Systems with the Type 26 Frigate; Fincantieri with the FREMM Frigate, and Navantia with a redesigned F100 - have been short-listed to refine their designs. • The frigates will all be built in Adelaide, incorporating the Australian-developed CEA Phased-Array Radar. • The Competitive Evaluation Process is on schedule to return second pass approval in 2018, which will allow for construction to commence in Adelaide in 2020. • This program is estimated to be worth more than $35 billion, and will directly create over 2000 jobs. • Future Submarines (FSM – SEA 1000) • 12 Future Submarines will be built in Adelaide, South Australia by French ship and submarine manufacturer DCNS Australia • Design of the Future Submarines will begin before the end of 2016, • Future Submarines would be built with Australian steel • First of the Future Submarines would enter service in the mid 2030s • Anzac Class Frigate – In Service Support • $2bn contract awarded to the Anzac Alliance partners: – BAE, SAAB and NSM

51 Outcome for WA

• $500m PPBs • $2bn Anzac In Service Support • $2bn OPVs (after they move to WA) • ?? Future Submarines • ?? Future Frigates

Total for WA: $4.5bn out of $91bn = 4.9%

52 A National Solution

• Key takeways • There is too much work for any one State • Modern ship/submarine construction is modular so allows for geographically dispersed construction • Reshaping of WA Resources sector means the WA State Government needs to consider economic and industrial diversification to maintain healthy SDP growth • Defence industry is already present in WA but needs additional support to help secure large defence acquisition projects for WA • Need clear indication of WA Government interest in and support to Defence industry (eg. Appoint a Parliamentary Secretary for Defence Matters).

• The RAN is vulnerable if large vessels need docking in the Indian Ocean: • 8 Ships (2 x LHDs, 2 x Supply ships, 3 x AWDs and 1 x amphibious support ship) cannot dock on the west coast • Second half of AMC Floating Dock would allow for all RAN vessels to dock in the Indian Ocean and will also be available for Allied Navies if required. • Joint State/Federal funding

www.civmec.com.au | 53 Thank You Should you require any further information regarding Civmec, please do not hesitate to contact us.

CONTACT DETAILS

Mike Deeks CSC Email: [email protected] Web: www.civmec.com.au