celebrating our heritage embracing change annual review 2013 looking to the future

JOHN HOLLAND ANNUAL REVIEW 2013 | 1 2013 ANNUAL REVIEW

contents

ADVISORY BOARD CHAIRMAN’S MESSAGE 02

GROUP MANAGING DIRECTOR’S MESSAGE 04

WHO WE ARE 06

HIGHLIGHTS 08

INFRASTRUCTURE 10

SPECIALIST ENGINEERING 22

TRANSPORT SERVICES 36

CENTRES OF EXCELLENCE 45

CHIEF FINANCIAL OFFICER’S MESSAGE 50

RISK MANAGEMENT 53

SAFETY 54

SUSTAINABILITY 56

PEOPLE & CULTURE 58

COMMUNITY 64

ENVIRONMENT 66

DIRECTORY 72

IMAGE Palmerston to George Town OPGW Tasmania

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2 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 1 2013 COMMUNITY The ethical conduct of all our employees is ANNUAL REVIEW fundamental to our success and business I am proud that our commitment to the sustainability, and appropriately, extensive wellbeing of communities was again strongly training was undertaken throughout the year. demonstrated in 2013. During the year, 60% of all John Holland projects invested in the OUR FUTURE FOCUS communities in which they operated, leaving I am very optimistic about the future for John a legacy that makes a positive contribution to Holland. Building on our core competencies, the social fabric of the community. This was up and augmented by our specialist capabilities, from 51% the previous year. we are well positioned to continue to expand our The value of our community investment in offerings in existing and new markets. The depth 2013 was approximately $1.13m, made up of our expertise, talent and innovation are vital advisory board of corporate or commercial sponsorships, ingredients of what we provide to our customers. charitable donations and in-kind contributions. I look forward to John Holland demonstrating great leadership in shaping the built environment chairman’s GOVERNANCE well into the future. In 2013, we sharpened our focus on corporate governance through the implementation of an internal audit structure that was auspiced by our parent company, Leighton Holdings. We message also adopted a new Code of Business Conduct.

JANET HOLMES À COURT AC Advisory Board Chairman

I am delighted to introduce John to safety, I am pleased that our focus on Holland’s 2013 Annual Review. It is achieving our vision in this regard has delivered with great pleasure that I reflect on the outstanding results in 2013. Our Global year that was and acknowledge the Mandatory Requirements, coupled with the outstanding achievements in safety as activities of the Executive Safety Leadership well as the continued demonstration Team and an unprecedented emphasis of innovation and technical excellence on critical risk identification has resulted in the delivery of some of Australia’s in a significant improvement in our safety most outstanding buildings and performance. In 2013, our total recordable injury infrastructure. frequency rate (TRIFR) was 12.16, down from 13.33 in the previous year. Also, our lost time Our strong financial result in 2013 was injury frequency rate (LTIFR) was 1.68, down highlighted by record revenue of $4.78b, from 1.74 in 2012. While the improvement is work in hand of $5.53b and a solid profit pleasing, we are never complacent about performance. This all demonstrates our focus safety. Our determination to realise our vision–to on delivering shareholder value. However, the know everyone will return home safely every dynamic and complex nature of infrastructure day–is resolute. markets means that we constantly need to evolve to meet the changing needs and DIVERSITY preferences of our customers. Diversity is another priority that I value. I am The year in review was characterised by a pleased that John Holland continues to show significant redesign of the organisation to leadership in female participation. Spanning deliver benefits to our customers through senior management, engineering and technical operational efficiency and cost savings. This as well as women in trades and administrative also allows streamlining of decision making functions, the percentage of female participation to better respond to our customers’ needs. in 2013 was over 16%. This continues to be As always, we rely on our values of integrity, IMAGE well above the construction industry average of innovation, collaboration, accountability and University of Tasmania around 12%. We are on track to realise our goal Medical Sciences Precinct care to guide our decisions as we navigate of having a female participation rate of 20% by Tasmania our way towards our vision of transforming the end of 2015. the industry through leadership. Our diversity and inclusion platform also places SAFETY a strong emphasis on involvement with Aboriginal Australians and their communities. Safety is, and will always be, John Holland’s We continue to make good progress in this primary objective. It is one I am deeply regard. The Aboriginal participation rate in 2013 committed to upholding. In 2012, the was 4%, steadily increasing to our target of 5%. organisation galvanised its commitment

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group managing director’s message

GLENN PALIN Group Managing Director

Last year was a pivotal year for John Critical to our ongoing success was our declining injury rates and a reduction in the We will continue to transform our business to be Holland. We delivered solid financial transformation program to increase our efficiency number of serious incidents, we have remained able to respond to and lead within an increasingly results and drove significant change in and become a more agile organisation. The vigilant in the pursuit of our vision for safety; to complex and dynamic external environment. Our the business to become a more agile and program built on the strengths of our business know everyone working with the business will commitment to evolving our culture and building efficient organisation. The underlying in order to derive the best results for our people, return home safely every day. on the significant work undertaken in recent customers and shareholders. years on our mission, vision and values means principle has been to ensure that we We completed a diagnostic of safety across the we will stay focused on innovation and driving deliver strong and reliable results while With this in mind, we continued our focus on organisation, critically evaluating our approach high performance. positioning the business for sustainable improving performance management systems and identifying barriers to safety success along growth for decades to come. to link reward and performance more closely. with opportunities for improvement. These results Encouragingly, John Holland is positioned well to In order to maintain our focus on core We undertook ongoing and substantial work to form part of our evidence-based approach to capture opportunities from the projected growth competencies, we transferred both our streamline procedures, with the aim of freeing up improving safety and have helped to shape our in the Australian traditional infrastructure market Communications and Mining business units critical time for our people and providing greater strategic safety priorities for 2014 to 2016. and we are buoyed by the confidence that we to Leighton Contractors in early 2013. consistency in how we work. The business have an enviable record for delivering large and During 2013, we continued to focus on also worked to refine the project management complex projects in this arena. sustainability. Given our proximity to diverse Also during the year, following the acquisition reporting framework, resulting in improved communities throughout Australia and beyond, Along with delivering our industry-leading by Leighton Holdings of selected construction visibility and risk management. contracts and plant and equipment from and our direct contact with stakeholders, we competencies in Infrastructure, Specialist Macmahon Holdings Ltd (Macmahon), John In order to streamline our business further, better know first-hand the importance of governance, Engineering and Transport Services to customers Holland took control of eight Macmahon projects connect senior management to our projects, transparency and engagement. in Australia, we will also continue to work with and integrated some 600 Macmahon employees and ensure we deliver a competitive offering to our international partners to deliver our Centres We have undertaken regular public reporting into our organisation. the market, we implemented an organisational of Excellence to customers abroad. of our performance across key economic, restructure, transitioning from four operational environment, safety, social and governance Ultimately, we will continue to focus on delivering We continued to win and deliver a variety of streams to three: Infrastructure, Specialist metrics, providing key data and Global Reporting the fundamentals safely and effectively, seeking major projects across Australia, both in our own Engineering and Transport Services. right and in collaboration with other members of Initiative framework indicators for 2013. productivity gains and ensuring our contribution the broader Leighton Holdings Group, including To better engage with this new structure, our to the broader Leighton Group. Looking forward, we will continue with our the $1.15b tunnelling and civil contract for the operational and corporate support areas have efforts to improve efficiency. Leighton Holdings’ North West Rail project in Sydney. Internationally, been aligned with the revised business streams. ‘stabilise, rebase and grow’ strategy continues to IMAGE we continued to deliver our specialist capabilities Coolumboola to Wandoan In 2013, our unrelenting focus on safety underpin the John Holland strategic plan. via local partnerships in Hong Kong and South Transmission Line continued. While we achieved an improvement Queensland Singapore, and continued our joint venture in our safety statistics, demonstrated by our partnership with Fulton Hogan in New Zealand.

4 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 5 who we are

John Holland, a wholly owned We have developed a suite of specialist Our mission states our purpose: to subsidiary of Leighton Holdings capabilities that define our brand, and that provide engineering and infrastructure Limited (ASX: LEI), delivers have been the platform for our growth solutions with skill and passion over the last decade. Our competitive our mission, contracting, engineering and services to benefit our customers, people, solutions to the infrastructure, energy, advantage has been built by our industry- communities and shareholders. It is resources and transport services leading specialist experience in tunnelling; our vision to transform our industry sectors across Australia, New water, wastewater and enviro; heavy jetties through leadership and an absolute Zealand, South-East Asia and the and wharves; power transmission; rail vision and commitment to safety, our customers Middle East. construction, maintenance and operations, and our people, and by encouraging and rail concessions. an innovative spirit and delivering For more than 65 years, John Holland shareholder value. has shaped the landscape of many Above all, the company has an unwavering communities. Our reputation for building commitment to safety: to know everyone values The five equally important values of integrity, iconic infrastructure both in Australia and returns home safely every day. innovation, collaboration, accountability and internationally puts us at the forefront of our care reflect what is fundamentally important Our mission, vision and values—along with industry. Our expertise in complex building, to us, and underpin the way we conduct our our business strategy—support sustainable civil construction and technical engineering business and interact with our stakeholders. success by providing unity of purpose, is the essence of our business. John Holland motivating employees, focusing effort and has created many innovative civil engineering investment, and stewarding John Holland’s and construction techniques, some of which reputation as a leader in our industry. have become industry standard. We also continue to lead the industry in the delivery IMAGE of public building works, with specialist Perth Children’s Hospital capabilities in the health, defence and Western Australia education sectors.

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INJURY FREQUENCY RATES INVESTMENT (Total: $1,130,000) 20 5

highlights 16 4 $300,000

12 3

$580,000 8 2

$250,000 4 1 As at 31 December 2013, John Holland had 5,794 employees working at offices and project sites mainly across Australia, 0 0 2011 2012 2013 New Zealand and Asia. The total revenue earned during 2013 CORPORATE SPONSORSHIP TOTAL RECORDABLE INJURY FREQUENCY RATE (TRIFR) CHARITABLE DONATIONS

was $4,784 million. LOST TIME INJURY FREQUENCY RATE (LTIFR) IN-KIND DONATIONS

FINANCIAL PEOPLE & CULTURE

REVENUE EMPLOYEE GENDER FEMALE PARTICIPATION INDIGENOUS PARTICIPATION ($m) (% total employees) (% female employees within job category) (% total employees) Note on the charts: Revenue includes amounts in respect of John Holland Group Pty Ltd’s (JHG) share of revenue from joint 50 5 arrangements (both proportionately consolidated joint operations 4,784

4,556 and equity accounted joint ventures) and equity accounted associates. 16.3 (1) Revenue is for the 12 months ended 30 June. 40 4 (2) Revenue is for the 12 months ended 31 December (reflecting JHG 3,669 changing its financial year end from 30 June to 31 December – as a result, JHG had a shorter, six month transitional financial year from 30 3 1 July 2011 to 31 December 2011 (not detailed in the table) before reverting to a 12 month financial year on 1 January 2012). 20 2

83.7 10 1

2011 (1) 2012 (2) 2013 (2) 0 0

2011 2012 2013 MALE WORKFORCE GRADUATE, APPRENTICES & TRAINEES FEMALE SENIOR MANAGER REVENUE BY STREAM REVENUE BY GEOGRAPHY REVENUE BY MARKET SECTOR CORPORATE ($m) ($m) ($m) OPERATIONS & ENGINEERS

ENVIRONMENTAL

25 97 472 GREENHOUSE GAS EMISSIONS WATER USE WASTE & RECYCLING 1,255 719 144 (kg CO2-e / $) (litres / $) (kg / $) 26% 15% 206 60 285 1,675 0.8 0.30 0.7 335 50 0.25 0.6 40 0.20 0.5 601 2,810 30 0.4 4,662 1,066 0.15 59% 0.3 20 0.10 0.2 10 0.05 0.1 INFRASTRUCTURE AUSTRALIA RAIL HEALTH 0 0.00 0.0 TRANSPORT SERVICES NEW ZEALAND & PACIFIC OIL & GAS WATER & WASTE WATER 2010-11 2011-12 2012-13 2011 2012 2013 2011 2012 2013 SPECIALIST ENGINEERING ASIA ROADS & DEFENCE BRIDGES FUEL & LUBRICANTS POTABLE DISPOSED RESOURCES OTHER UTILITIES NON-POTABLE RECYCLED

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CHRIS EVANS Executive General Manager, Infrastructure

The Infrastructure stream is at the core of John Holland’s business and successfully delivers projects across Australia in a broad range of markets and sectors including defence, health, education, non-process infrastructure, roads and bridges, transport and social infrastructure, civil earthworks and structures. A strong internal collaboration model enables John Holland to complement the core competencies within the Infrastructure stream with the specialist A strong internal engineering capabilities of the wider Group, collaboration model creating value for our customers. As at December 2013, the Infrastructure stream enables John Holland generated $2,810m in revenue (2012: $2,270m), contributing 59% of the total Group revenue. Work to complement the core in hand stood at $2,915m (2012: $2,835m), contributing competencies within the 53% of the total Group work in hand. Infrastructure stream with the specialist engineering capabilities of the wider Group, creating value for our customers.

IMAGE PREVIOUS PAGE Enlarged Cotter Dam Australian Capital Territory

IMAGE Sydney Opera House New South Wales

12 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 13 INFRASTRUCTURE celebrating year in review

achievements defence

In 2013, we maintained our enviable of the overall $152m upgrade of the Sydney John Holland’s relationship with Territory. During the year, we continued to record of delivering, and being Opera House, and is the most significant the Department of Defence has deliver works for the DLTP program in New awarded, high-profile projects in a work undertaken at the Opera House since grown over 40 years, strengthened South Wales and the $800m Enhanced broad range of sectors and markets its opening in 1973. Both the Infrastructure by our proven ability to undertake Land Force (ELF) 2B facility in Brisbane, across Australia. From new rail and and Specialist Engineering streams are complex and challenging building the largest standalone building project in road infrastructure to significant justifiably proud of this complex undertaking. and engineering works on live, fully Defence’s history. Successfully operating projects in the health, education and John Holland’s expertise in tunnelling and operational Defence bases, on time on a large, fully functioning military base resources arenas, our Infrastructure civil building has delivered the work in line and on budget, without disrupting demonstrates our ability to plan and deliver stream continues to perform strongly with world heritage listing sensitivities while critical activities and services. complex outcomes in an uncompromising, minimising disruption to performances, events operational military environment. in all states and territories. In 2013, John Holland won the contract and the more than eight million people who to deliver the $112m Robertson Barracks Our national infrastructure capability visit the Opera House each year. is showcased in the Australian Capital Defence Logistics Transformation Program Territory where we delivered a program of (DLTP) Works Package 4 in the Northern works for ACTEW Water as a construction partner in the Bulk Water Alliance. Valued at approximately $600m, the program consists of four separate projects: the enlarged Cotter Dam, construction of the Murrumbidgee to Googong Water Transfer Pipeline, upgrade of the Googong Dam Spillway, and new pumping facilities at the Murrumbidgee River. Construction of Cotter Dam was completed in October 2013, increasing the ACT water storage capacity by 35%, and securing the water supply for the ACT and surrounding regions in the future. This project earned four industry accolades: the Engineering Excellence Award from Engineers Australia (Canberra Division), a Highly Commended Award at the recent 2013 Awards for Excellence in Concrete, the Environmental Excellence Award from the International Erosion Control Association, and the Australian Water Association’s National Program Innovation Award. In 2013, we also continued our work on one of the most iconic buildings in Australia. John Holland is responsible for the excavation and construction of the new underground loading dock and upgrade of the forecourt roadway as part of the Vehicle IMAGE Access and Pedestrian Safety project for Enhanced Land Force Stage 2B the Sydney Opera House Trust. Valued at Queensland just over $100m, this contract forms part

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health

In the health sector, we are a leading contractor in the planning, design and development of hospitals, as demonstrated by our appointment as managing contractor on the $1.2b Perth Children’s Hospital. This landmark education project represents the largest building project John Holland has undertaken in Australia. In the education sector, John Holland is head contractor for the construction Construction began in January 2012 and of the new $180m flagship home for the is due for completion in 2015. A particular University of Sydney Business School. feature of our work on this project is our This contract award further recognises use of Building Information Modelling our position as a leading provider (BIM) techniques where we produce 3D of educational facilities in Australia. designs integrating key information such as Located in the inner-city district of the construction program and equipment Darlington, the new precinct will be specifications into the models. BIM provides integrated into the local community and a platform to minimise customer costs during will contribute to the revitalisation of this construction and operational phases. area when construction is completed. Our work on Perth Children’s Hospital follows A notable feature of our team is that one third our successful delivery of the upgrade of the of our onsite team is female, and our first Joondalup Health Campus also in Western female apprentice signed on during the year. Australia for Ramsay Health. Joondalup was Construction is expected to be completed in IMAGE delivered ahead of schedule with minimal early 2015. Building in an urban area requires us Perth Children’s Hospital disruption to staff, patients and visitors. Western Australia to be proactive in our community engagement Also completed during the year, and also and environmental management. From the in Western Australia, the 21,000m2 Albany start of this project, our team has anticipated Health Campus was built over four levels and community concerns and needs, designing includes an Emergency Department, Inpatient construction methodologies to minimise and Community Mental Health Units, Cancer community and environmental impacts. We Centre, Surgical and Medical Inpatient Units, have actively sought stakeholder feedback and Pathology and Clinical Support areas. A have strived to achieve high satisfaction ratings significant initiative associated with the project in the communities in which we work. was the focus on reducing the amount of waste The Queensland University of Technology material accumulated during the demolition Creative Industries Precinct Stage 2 will phases. As a result, demolished materials from provide a state-of-the-art facility for teaching the existing hospital site were either reused or and research in the visual and performing sold in order to reduce the amount of waste arts. Currently, creative arts disciplines are destined for landfill. spread throughout the University’s Kelvin Grove Our leadership in this regard is also Campus in Brisbane. On completion in 2015, reflected in our work on Ramsay Health’s the Stage 2 facilities will include a myriad of Sunshine Coast University Private Hospital in specialist teaching and performance venues Queensland, completed in September 2013, from dance, drama and music to sound and the initial planning phase for the Royal recording studios, and visual art and design. Hobart Hospital, which was awarded by the In Tasmania, in partnership with local Tasmanian Department of Health and Human construction company Fairbrother, we have Services. successfully delivered two medical buildings for the University of Tasmania’s Medical Science Precinct. These buildings are now iconic structures in their own right in the Hobart central business district. The partnership also delivered the Institute for Marine and Antarctic Studies project, earning the Green Building Council Australia’s 5-star rating for environmental excellence.

16 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 17 INFRASTRUCTURE non-process infrastructure roads and bridges

Our work delivering non-process These projects are being delivered in one of the Our Infrastructure stream celebrated the community. This substantially completed infrastructure on high-profile projects most remote areas in Australia and underscore significant achievements in Western project represents one of South Australia’s in the oil and gas sector such as the commitment and tenacity of our people to Australia in 2013, despite a changeable most complex engineering road construction Gorgon and Wheatstone is extremely deliver under challenging circumstances. and challenging market. projects to date. challenging both in terms of the delivery In the Northern Territory, we have been heavily The mining boom in the state’s north west In Queensland, John Holland was contracted expectations of our customers and the involved in the INPEX-managed Ichthys LNG continues to drive substantial growth in and to rebuild Brisbane’s Riverwalk. Some 3,000 physical environment. project, delivering the main civil works during around the town of Port Hedland. During people used this walkway daily before it was The project on Barrow Island in Western the initial stages. The civil contract is the 2014, we expect to complete the $260m Great washed away in the devastating 2011 floods. Australia for Chevron’s Gorgon Project involves biggest earthworks project undertaken in Northern Highway Realignment project which The $72m works are due for completion in delivery of essential infrastructure in the the Northern Territory, and represents a new will deliver improvements in road safety, reduce mid-2014. buildings, operations and administration areas, benchmark for the size and complexity in the congestion, and improve access around the Further north, in Central Queensland, John including the construction of the operations Territory. The contract reflects John Holland’s harbour and industrial areas. Holland secured the Yeppen South project in centre and the associated laboratory. Strict strategy of aligning closely with major EPC In South Australia, the South Road Superway late 2013 to construct an elevated crossing quarantine and environmental requirements are (engineering, procurement and construction) is both an engineering achievement for John of the Yeppen floodplain. Our success in in place to protect the A-class nature reserve. contractors in the oil and gas sector to offer Holland and an enabling infrastructure project winning this project was based largely on our On Wheatstone, we were engaged to deliver reliable contracting solutions. for the community. While major works on extensive experience in similar projects around both the permanent operations buildings as the southbound carriageway are complete, the country. Our approach to precasting and well as the construction camp. future work on Superway will see an improved direct delivery of some of the in situ works IMAGE corridor through and within metropolitan demonstrated the commitment to innovation Urban Superway Adelaide, providing stronger connectivity for South Australia that is inherent in so many of our projects.

18 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 19 transport infrastructure future focus

Our footprint in New South Wales is and station construction for the Springvale Road Health and defence remain a strategic We continue to strive for an outstanding strengthening with major infrastructure Rail Alliance, and our extension of the rail line focus and we will continue to build on safety record. Notable successes in 2013 projects on the horizon, particularly at South Morang, led to a further win on the our discrete expertise in these areas, followed an increasingly active involvement in the transport infrastructure sector. Mitcham and Rooks Roads Grade Separation delivering it more efficiently across the of the leadership team, with strong results Utilising our civil and building capability, project in 2013. This project highlights our ability country. Public transport—a key to the delivered across the business. and drawing on rail, tunnelling and other to operate in live environments, to build good future sustainability of communities—will Work in Singapore and Hong Kong has specialist capabilities from Specialist relationships with customers, to adhere to tight form a major component of our facilitated our entry into strong markets with Engineering and Transport Services schedules and to develop strong logistical infrastructure market across the eastern Leighton Asia India and Offshore (LAIO). It streams, we are well placed to capitalise planning solutions. Our work on the Regional seaboard and into Western Australia. also speaks volumes about how our highly on these opportunities and provide a Rail Network dealt with similar challenges Our delivery of the current extension of committed team, drawing on specialist depth of expertise to better meet the related to complex rail infrastructure. the Inner West Light Rail Extension in needs of our customers. capabilities from other areas of the business, Sydney also puts us in a strong position has the ability to expand our horizons. We are on course to deliver the South West Rail to capitalise on developments in this Link six months ahead of schedule. The new other social infrastructure market nationwide. In the future, we expect to continue twin-track passenger rail line from Glenfield to supporting the success of the Leighton Group Our drive for using innovative technology to Leppington via Edmondson Park in Sydney’s in Asia as we use our defined skills within the deliver on customer and industry demand south west, features two new stations at The $232m Eastern Goldfields Regional broader engineering and building market to and will put us at the forefront of the markets Edmondson Park and Leppington. In a highly Prison project involves construction of a assist with market access and the securing in which we operate. In the building, civil and competitive transport infrastructure market, new state-of-the-art 350-bed prison at of quality prospects. engineering markets, we are examining the we have demonstrated our leadership in Kalgoorlie that will cater for prisoners of use of new high-strength, lightweight materials professional management of the environmental both genders across all security ratings. IMAGE and we expect to see prefabrication and and community impacts of this project, and in In a first for the region, the new prison Joondalup modularisation becoming increasingly important our ongoing commitment to partnering with the will be designed to engage Aboriginal Health Campus Western Australia to the efficient delivery of infrastructure. community in the delivery of legacy projects. prisoners in culturally appropriate programs and courses. We expect to The North West Rail Link, the largest public complete the project for the Western transport project currently underway in Sydney, Australian Department of Treasury and is another complex infrastructure project with Finance in 2015. both rail and tunnelling components. John Holland will play a significant role in the project In 2013, John Holland was appointed head as part of a joint venture to construct 15 km contractor for the Newcastle Court House tunnels (the longest rail tunnels ever built in project. The new $94m courthouse facility will Australia) and excavate new underground provide the largest and most technologically stations. The project also includes the advanced New South Wales court complex excavation and civil works for five of the eight outside Sydney, and encompasses a seven- 2 new stations and two service facilities. storey 12,000m building with 10 courtrooms and two tribunal rooms. An environmentally In Western Australia, in the Perth area, our responsible design will reduce the carbon work has been truly transformational. We footprint of the building. were involved in the first stages of the Perth City Link project that involved sinking the In Melbourne, work is underway on the high- Fremantle Rail Line to help reconnect the CBD profile renovation of the state-of-the-art State with the Northbridge entertainment precinct. Coronial Services Centre at Southbank, The underground tunnelling work completed expanding and refurbishing the existing facilities beneath the historic Horseshoe Bridge is a while ensuring all critical functions of the centre remarkable technical achievement. remain operational during the construction. In Victoria, the Victorian Government introduced a number of grade separations to free up blockages caused by road/rail interfaces, thereby improving traffic flow and productivity. Our work on the fast-tracked grade separation

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specialist engineering

BRENDAN PETERSEN Executive General Manager, Specialist Engineering

The Specialist Engineering stream is John Holland’s portfolio of specialist capabilities. The stream boasts a proven track record of delivering complex process and engineering projects in a diverse range of market sectors in Australia, New Zealand, Hong Kong and Singapore. In 2013, the changing capital investment cycle in the Australian energy and mining sectors prompted a review of the previous Energy and Resources stream. This strategic review led to the formation of the new Specialist Engineering stream - a consolidation of the former Energy and Resources business units Water and Enviro, Energy, and Minerals and Industrial businesses which, together with the Tunnelling business, form a new portfolio of all specialist capabilities in one business stream. As at December 2013, Specialist Engineering generated $719m in revenue, contributing 15% of the total Group revenue. Work in hand stood at $413m, contributing 7% of total Group work in hand.

IMAGE & PREVIOUS PAGE Cape Lambert Marine Works Western Australia

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celebrating year in achievements review

Our highlight for 2013 was the outstanding improvement in The year involved the rebasing of the John Holland business our safety performance. An unprecedented focus on critical to align with the broader Leighton Holding strategies. As such, risk identification and the implementation of our Global the mining business which was previously housed in the Energy Mandatory Requirements contributed to a 40% reduction in and Resources stream, was successfully transitioned high-potential incidents, a 35% reduction in lost time injury to Leighton Contractors Pty Ltd. frequency rate (LTIFR) and a 20% reduction in total recordable This initiative supported the Leighton Group’s move to realign its injury frequency rate (TRIFR). This excellent outcome was the portfolio and to deliver on its strategy of developing distinctive, core result of strong leadership from all senior leaders, and robust competencies within its Operating Companies. It is also consistent with accountability driven by our project teams. IMAGE Kowloon Leighton’s long-term business strategy in the coal and iron ore contract In 2013, Specialist Engineering achieved recognition within the Southern Link mining market. Leighton Group by being selected to host three Centres of Excellence Hong Kong in the disciplines of Tunnelling, Water and Wastewater Treatment, and Marine Structures. Tunnelling successfully continued to expand its international footprint. In joint venture with Leighton Asia, India and Offshore (LAIO) we were awarded a contract worth $329m by the Singapore Land Transport Authority for the Thomson Line project. This is the second tunnelling contract that we are undertaking in Singapore. Water and Enviro successfully completed and commissioned a number of wastewater and sewerage treatment process plants in Queensland, New South Wales and Victoria, and successfully reached preferred position on waste-to-energy projects and the environmentally sustainable horticulture project, Sundrop Farms. Technical innovation was a key focus for our Energy and Minerals and Industrial businesses. The Energy business safely and efficiently completed complex heli-stringing and heli-tower erection activites in live high-voltage environments in Tasmania and Central Queensland. Minerals and Industrial implemented leading-edge design and delivery construction systems to bring the massive Cape Lambert iron ore marine facility to completion and pioneered the use of a range of innovative industry-leading technologies for painting solutions in sensitive marine environments. We are proud to have recently won the 2014 Australian Construction Achievement Award for the Cape Lambert Marine Works project.

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water & environment

John Holland is a market leader in the In Sydney, John Holland was awarded a third In Victoria, we are engaged in an alliance with Internationally, our Water and Enviro business provision of water treatment processes contract extension for the PSP to deliver Barwon Water to deliver a $370m program of continues to support Leighton Asia to deliver to the Australian water sector, and additional sewerage works to six communities in works over a five year period. The works represent vital sludge incineration works. We are continues to develop its strong environmentally sensitive areas. We are delivering the largest capital investment program in Barwon providing the design, construction, testing international reputation in South- program and project management services, Water’s history, with the delivery of more than and commissioning of the new $660m Hong East Asia. Since 2000, John Holland as well as design, procurement, delivery and 120 individual projects over 8,000 km2. Kong Sludge Treatment Facility for the Hong has delivered more than 75 projects, commissioning works. Stage 3 of these works, Kong Environmental Protection Department. During the year, our Water and Enviro business servicing public utilities and private with a total budget of approximately $150m, will The facility is critical to the region’s wastewater moved into the broadscale agricultural and enterprise across Australia, New be delivered over the next two years. The original treatment capacity and, at 2,000 metric tonnes irrigation sector. Our role in the Murrumbidgee Zealand and Hong Kong. scope of work has significantly increased from an capacity per day, will become the largest Irrigation Area Renewal Alliance sees us initial three-year program to works and services sewage sludge incineration facility ever built. In planning, designing and delivering water capture In 2013, Water and Enviro continued the over nine years. This is a testament to our the Middle East, John Holland has also teamed and distribution modernisation projects in the successful implementation of diversification ongoing successful performance, flexibility of the successfully with Habtoor Leighton Group Murrumbidgee area of New South Wales. strategies to meet the changes and new Alliance and relationship with Sydney Water. (HLG) to qualify to bid for water treatment opportunities occurring in the domestic market. Our highly successful approach to working within projects in both Saudi Arabia and Qatar. Part of this strategy is to support water authorities In the year under review, we also completed the alliances fits particularly well within this sector. with their long-term capital works programs. West Camden Water Recycling Plant for Sydney Our customers in this mature market value the During the year, our contracts with both the Water. The construction and commissioning of benefit of engaging with an engineering and Priority Sewerage Program (PSP) Alliance in the new sludge digester and upgrade of two construction expert such as John Holland in the New South Wales with Sydney Water, and the existing digesters caters for the rapid population design and development of programs of works. IMAGE growth forecast in South West Sydney. West Camden Barwon Water Alliance in Victoria were extended Water Recycling Plant to include further scope of works. New South Wales

28 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 29 SPECIALIST ENGINEERING

tunnelling

Our internationally recognised introduced to Hong Kong and are now being tunnelling division continues to lead the replicated by the industry. Building on the underground industry, and has a proud NCE/ITA International Tunnelling Contractor heritage as the only Australian contractor of the Year award in 2012, John Holland was with a dedicated tunnelling Centre of shortlisted for the 2013 International Tunnelling Excellence that has operated since 1966. Technical Innovation of the Year award. Since 1996, our tunnelling division has Locally, innovation contributed to the winning completed 271 km of tunnels across of the $1.2b North West Rail contract as part seven countries and has a further 36 km of a joint venture including 15.5 km of twin of tunnels under construction. tunnels and five of the eight stations as part of In 2013, our international work continued the overall project. Other innovative solutions to grow securing our second contract in include the introduction of cast-in gaskets Singapore on the Thomson Line rail extension for the segmental lining, and the use of Main in joint venture with LAIO. In the near term we Beam TBMs for rapid decline excavation for will have five tunnel boring machines (TBMs) the resources sector. These innovations build in Singapore, which brings our total of TBMs on our impressive list of ‘firsts’ that maintain commissioned over the last 10 years to 36 and John Holland’s position as leader of the builds on a strong position in Singapore with underground construction industry. over 250 km of tunnels planned to come to Excavation on our Woolloongabba project market within the next 10 years. in Brisbane was completed in 2013. This In Hong Kong excavation of the South Island project included multiple long drives, one Line (‘Contract 904’) is nearing completion and of which—a 458 m curved pipe jack drive is validation of John Holland’s innovation value using glass reinforced plastic pipes—the providing benefits to our customers. Double and longest in the southern hemisphere. triple deck loading blasting techniques were

IMAGE South Island Line (East) Rail Contract 904 Hong Kong

IMAGE Perth City Link Western Australia

30 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 31 SPECIALIST ENGINEERING

energy

Over 2013, our Energy business location in the Western Downs region consolidated its position as a leader supports the strong local growth driven by in the high-voltage transmission energy and resource developments, and line sector with the successful the transmission line will provide additional completion of a number of high-risk electricity infrastructure to meet the region’s and complex projects. forecast electricity demands. In Tasmania, two particularly high-risk John Holland is proud to employ the most projects notably achieved safe completion: highly skilled transmission line workforce in the Sheffield to Georgetown project and Australia. We have built this capability over the Palmerston to Georgetown project on recent years in response to the trend of a behalf of Transend Networks. These projects declining linesman skills-base in Australia. involved heli-stringing and heli-tower erection Over 2013, Energy also played a critical role in live high-voltage environments. They also in partnering on infrastructure and process demanded advanced levels of planning, projects in the oil and gas and minerals IMAGE communication and engagement with the Palmerston to sector, deploying specialised electrical local stakeholders and community. George Town OPGW engineers, delivery managers and a self- Tasmania In South West Queensland, a highlight was perform workforce for the electrical and IMAGE the successful construction of the $108m instrumentation components of projects. Coolumboola to Wandoan South Transmission Line Columboola to Wandoan South Transmission Queensland Line on behalf of Powerlink. The project’s

32 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 33 SPECIALIST ENGINEERING

minerals & industrial

In 2013 our Minerals and Industrial and built export jetties, wharves and material (M&I) business was dominated by offloading facilities. In total, five contracts are a high level of operational activity in underway and are due for completion in 2014. the marine sector. The largest project Our M&I business has consolidated our undertaken was the Cape Lambert position in the mining infrastructure and Port B project for Rio Tinto in the minerals processing sector with our work Pilbara region of Western Australia. on the Wiggins Island Coal Export Terminal The work awarded to John Holland (WICET) in Gladstone. The $240m contract for included a 920 m jetty, a 820 m in-line the construction of Stage 1 stockyard works

IMAGE four berth wharf, berthing dolphins and for WICET will provide more than 80million Marine Works shiploading facilities. The total value Gladstone tonnes per annum of additional coal export Queensland of the contract is over $650m and is capacity through the Port of Gladstone. on schedule for completion in the third IMAGE quarter of 2014. Wiggins Island Coal Export Terminal In Gladstone, Queensland, our M&I business is Queensland leading the delivery of multiple contracts at the (photograph courtesy Curtis Island precinct, where we have designed of Murray Ware)

future focus

The future focus for Specialist transmission sectors and to extend our Engineering is to develop and deploy services in the oil and gas sector. We will best-in-class technical expertise for continue to work with major domestic gas current and new specialist capabilities companies such as Santos, Apache, Origin, with which we can assume a leading INPEX and QCG to deliver specialised market presence. We will continue to structural, mechanical and electrical installation garner industry recognition through work associated with gas processing and leadership and innovation. compression projects, and to deliver water treatment solutions to the CSG industry. Taking a sectoral perspective, the tunnelling construction market is showing positive signs Finally, in the water sector, while we see of strong growth. In 2014, we anticipate a domestic new capital investment remaining pipeline of projects with a total contract value subdued, we will be looking to capitalise in excess of $35b expected to come to market on our experience in facility renewals and in the next five years. expansions, and to continue working closely with our key customers to optimise their water Similarly, we expect the oil and gas market to assets over longer terms. Internationally, we remain buoyant (albeit contracting) through see a range of water and waste treatment 2014 and 2015 in both Western Australia opportunities emerging in a number of and Queensland. Building on our strong countries in South-East Asia. brand presence and reputation for reliable delivery, we are well positioned to consolidate our position in the power generation and

34 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 35 transport services

36 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 37 transport services

KARL MOCIAK Executive General Manager, Transport Services

John Holland is a market leader in the provision of railway construction, maintenance and operations services to the Australian transport sector. With self-performing construction, maintenance and operations capabilities, and specialist capabilities in the full range of track, structures, facilities, power, overhead traction, signalling and communication systems, we are able to offer a whole- of-life approach to the construction, maintenance and operations of railway infrastructure. As at December 2013, the Transport Services stream generated $1,255m in revenue (2012: $1,154m), contributing 26% of the total Group revenue. Work in hand stood at $2,211m (2012: $2,520m), contributing 40% of total Group work in hand. John Holland is an accredited rolling stock operator in all states and territories. With the largest privately owned fleet of railway maintenance and construction equipment in Australia, we manage, operate or maintain 30% of the entire Australian rail network. Our Transport Services stream is strategically positioned as a rail concession provider via our existing investments in rail construction, maintenance and operations contracts and our 30% market share in this environment. Over the year, we realised a significant improvement in safety performance with proactive management of critical risk preventing an escalation of incidents and resulting in a reduction of injuries. This excellent outcome is the result of strong leadership from the Executive, and robust accountability driven through the projects via workforce supervision and the implementation of initiatives such as the Global Mandatory Requirements. While recognising this achievement, we remain focused on our vision for safety: to know everyone will return home safely every day.

IMAGE PREVIOUS PAGE Perth City Link Western Australia

IMAGE Inner West Light Rail Extension New South Wales (published with the permission of Transport for NSW)

38 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 39 TRANSPORT SERVICES celebrating year in achievements review

In 2013, we continued our success in the sector with The year in review marked John Our continued investment throughout the year the award of Sydney’s Inner West Light Rail Extension. Holland’s second year as the new saw over 234,000 sleepers installed, level Consistent with our strategy of offering integrated end-to- manager of CRN on behalf of the New crossings upgraded, ballast rectification and end solutions to our customers, this achievement will enable South Wales Government. The 10- track geometry improvements. Availability us to move into new areas of activity such as light rail design, year contract with Transport for New of the infrastructure for service operation construction and operations and management (O&M). South Wales involves the network continues to improve, reaching more than 97%, operation, management, maintenance while more than 19,000 trains operated over One of the most significant milestones achieved during the year in and renewal of 2,386 km of operational the network, including 4,500 passenger trains Our ability to review was the commencement of our Train Operations initiative. passenger and freight rail lines and carrying over half a million passengers. Three refurbished diesel-electric locomotives have been leased for understand the 3,127 km of non-operational lines. the new operation, along with the purchase of 20 remote controlled John Holland is now in its seventeenth year of specific needs of ballast wagons and two ballast plough wagons. These trains will haul This follows on the success of the first year a relationship-based contract for Brookfield Rail, ballast, rail and sleepers initially across the Country Regional Network IMAGE of operation, which saw some outstanding which involves the provision of maintenance Work Trains each of our customers (CRN) in New South Wales. New South Wales outcomes delivered by the CRN team. services for the regional railway infrastructure in Western Australia. Our sustainable performance enables us to provide We were also delighted to be recognised as the Leighton Holdings in delivering reliable railway infrastructure

Centre of Excellence for rail in 2013. maintenance services is clearly demonstrated innovative and by our customer’s request to provide further flexible solutions and value-add solutions by undertaking asset condition assessment and management with a specialist service view to extending our contract by negotiation for offerings in response an additional seven years. to market pressures track construction and customers’ Track construction has been a core capability needs. of John Holland for 40 years. This includes the delivery of major track construction to every state and territory across Australia in major cities, suburban areas, regional and remote country locations. We have delivered some of the most significant and complex rail projects across Australia’s capital cities, including delivery of the Glenfield to Leppington Rail Link in Sydney, Adelaide’s rail revitalisation, Mitcham Rooks Road Grade Separation, Victoria, PTA Clarkson to Brighton, and Perth City Link, Western Australia. In Western Australia, John Holland has established an enviable reputation for the delivery of track maintenance, asset renewal and construction projects, including ballast cleaning of BHP Billiton Iron Ore’s main line between Port Hedland and Newman.

40 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 41 The year in review marked John Holland’s places us at the forefront of the railway industry in second year as the new manager of the terms of understanding railway infrastructure and CRN. The 10-year contract with Transport competency requirements. for New South Wales involves the operation, Australia continues to enjoy record levels of management, maintenance and renewal of investment in rail infrastructure. As such, the 2,386 km of operational passenger and freight 2013 financial year saw John Holland continuing rail lines and 3,127 km of non-operational lines. the delivery of significant contracts, including Since its inception in 2009, MTM has the Glenfield to Leppington Rail Link, Liverpool significantly boosted investment in railway reconfiguration, Perth City Link, Sydney Light infrastructure in Victoria, which is projected to Rail Inner West Extension and the Infrastructure reach over $2b by the end of 2014, following Partnerships Australia ‘Project of the Year’ for development and improvement initiatives that 2013 Regional Rail Link in Melbourne. have been undertaken under the franchise. Major projects in Western Australia in the same During 2013, MTM continued its strong period include, Roy Hill Track works, Mitcham / operational performance, reliability and Rooks Road Grade Separation, and BHP availability, and continues to improve with on- Ballast Cleaning. time performance now at 92%. The operation Major projects in Victoria in the procurement carries more than 25 million passengers and pipeline include: delivers more than 14,500 train services per week. MTM was recognised by Infrastructure • The North West Rail Link, Operate/Trains/ Partnerships Australia as the ‘Rail Operator of Systems PPP which, if won, will place John the Year’ in 2013. Holland at the forefront of rail O&M service provision in Australia • Sydney Light Rail (CBD) which, if won, will rail infrastructure manager reinforce John Holland as a major light rail vertically integrated constructor and O&M partner • Dandenong corridor capacity upgrade in John Holland is a Rail Infrastructure Manager Melbourne–an unsolicited $2.5b Public (RIM), as defined under the Rail Safety National Private Partnership. Law (RSNL), in MTM, CRN and for the Port signalling and brownfield operations Kembla Corporation. As such, we have total responsibility for the application, modification aviation communications and enforcement of infrastructure standards, During the year in review, John Holland delivered asset management, asset performance, maintenance and renewal of railway two of the most complex sections of Regional In the aviation sector, John Holland Aviation John Holland’s significant capability in signalling, infrastructure. Rail Link in Victoria. These packages were the Services (JHAS) continued to provide services communication and control systems enables only brownfield operating environment sections With more than 6,000 km of railway at most major international airports throughout us to be involved in possession work for track of the entire project. In New South Wales we infrastructure under this authority, we have Australia, with additional narrow body hangar renewals in order to disconnect, reconnect and also delivered Sydney’s Inner West Light Rail invested significantly in developing and tailoring access in Perth and Auckland. test signalling equipment upon completion. Extension project, converting the existing rail our systems and up-skilling our people. In 2013, the signalling team was involved in However, over the last 12 months, the aviation corridor to suit light rail and modifying the Recognising John Holland as a leader in this projects such as the extensive signalling for sector has gone through significant change, interchange with the operating railway line. field, the Port Kembla Corporation sought our Regional Rail Link Package A and B and the and competitive pressure from overseas support and expertise to develop and operate Inner West Light Rail Extension. In Western Australia, we continued the suppliers has been substantial. Consistent its railway infrastructure. Brookfield Rail Infrastructure Maintenance with our strategy to ‘stabilise, rebase, and Program and Brookfield Grain re-sleepering Significant regulatory changes in the railway grow’, these conditions have led to the decision overhead wiring and project. The re-sleepering project involves industry continue to occur in relation to the to cease operations at JHAS. John Holland’s extensive track surfacing of approximately management of worker competencies for rail focus will be purely on our infrastructure, rail traction power 676 km and a commitment to local safety work. We have implemented a national and specialist engineering capabilities. communities along the rail corridor. competency management system tailored

to the railway operations and maintenance The strength of John Holland’s capability environment, in collaboration with customers in overhead wiring and traction power was rail operations and and other RIMs. This management system demonstrated by our ability to perform overhead wiring works for new construction on Glenfield maintenance to Leppington Rail Link and North Strathfield Rail Underpass, New South Wales, Wellington Overhead Traction Upgrade, New Zealand and John Holland is the only private rail operator in Perth City Link, Western Australia. Australia, operating the multiuser access CRN and part of the vertically integrated Metro Trains Melbourne (MTM). IMAGE Regional Rail Link City to Maribyrnong River Victoria

42 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 43 TRANSPORT SERVICES centres of future focus excellence

Over time, we have strategically We will also harness our proprietary evolved our suite of services to meet intellectual property by the registration our customers’ changing needs. of rail technology patents. As a result, John Holland offers The focus for John Holland’s rail operations is unparalleled innovative and flexible expanding our services via the development services across our core capabilities of private regional opportunities throughout of track construction, signalling and Australia. We will also leverage our work train communications, overhead wiring and services to a broader base of customers and traction power, engineering services, further develop haulage of bulk commodities as well as brownfield operations. for third parties, with particular emphasis on However, as the market and economic local and offshore resource mining activities. environment in which we operate continues to transform, so must we. In response, we will expand our suite of services to include: • asset management IMAGE Downtown Line • predictive modelling of rail assets and Stage 3 Contract 935 optimised maintenance spend planning Singapore • operational modelling and optimisation IMAGE Regional Rail Link • wheel and rail interface expertise City to Maribyrnong River • rolling stock engineering capability. Victoria

44 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 45 marine structures water and wastewater tunnelling treatment John Holland is the Australian market leader in John Holland possesses Australia’s largest • steel fibre reinforced tunnel segments and diaphragm marine structure construction. Since 2005, we in-house tunnelling capability and has a well- walls for shaft construction have completed work in the private and public As market leader in the provision of water deserved reputation as the leading provider of • immersed tube tunnel methods sectors across the country. We specialise in treatment processes to the Australian water underground construction services in Australia • trapezoidal segmental linings heavy marine structures—in the delivery of sector, John Holland is developing a reputation and the Asia-Pacific region. berths, terminals, unloading and auto-loading in South-East Asia and the Middle East. Since • variable arch tunnel lining formwork for varying lane Since 1996, we have completed 271 km of tunnels across systems, jetties, terminal upgrades and 2000, we have delivered more than 75 projects configurations spanning 17 m to 30 m in width. seven countries. Through hard, soft and mixed ground expansion, and ship-loader installation. servicing public utilities and private enterprise • cast in gaskets for segmental linings. across Australia, New Zealand and Hong Kong. conditions. Our capabilities and experience cover driven In partnership with leading offshore marine tunnels, cut and cover tunnels, declines and shafts. We are In Hong Kong, Leighton Asia in joint venture with John construction equipment owners and operators We have successfully delivered over 40 brownfield at the frontier of tunnelling technology and expertise, which Holland was the first contractor to introduce: sewage treatment upgrades and capacity expansions. and design companies, we offer EPC/Design and enables us to offer world-class tunnelling capabilities to our • Mixshield TBMs, Construct solutions encompassing detailed design, Our experience with operations and maintenance, national and international customers. • permanent sprayed concrete linings layout, temporary works engineering, constructability our process design capability, the ability to effectively John Holland leads the underground construction industry IMAGE analysis, modularised fabricated assemblies of material manage project interfaces and cooperate with • double and triple deck loading for drill and blast Cape Lambert operational personnel during the upgrade ensures with many Australian firsts, such as: methods in a dense urban environment. Marine Works handling and transfer and loading systems. Our Western Australia capabilities enable us to ensure the safe delivery of full discharge licence compliance. • first use of Tunnel Boring Machines (TBM): Slurry, Hard John Holland has achieved significant growth in the Rock, EPB, DSG IMAGE projects via self-perform multi-disciplinary supervisory We have an enviable record in the construction, tunnelling industry in recent years using our expertise to West Camden and construction teams. operation and maintenance of numerous Australian • back-loading cutters on TBMs deliver projects locally, in New Zealand and South East Asia. Water Recycling We are well placed for further expansion while maintaining Plant Our marine teams have pioneered a number of water treatment plants, and we are renowned for • shaft boring machines our commitment to excellence in underground construction. New South Wales engineering innovations. These include the use of a working with our customers to create unique and • gyro-guidance systems for TBMs genuinely innovative solutions based on the particular IMAGE range of environmentally sensitive solutions for painting • advanced guidance systems on robotic bolters, Northern needs of their business, their local environment and and surface protection, and the use of sponge blasting drilling jumbos and roadheaders Sewerage the requirements of their local community. Project techniques that provide environmentally friendly results Victoria in delicate marine areas.

46 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 47 rail construction rail operations & maintenance rail concessions

John Holland’s rail business has a proven John Holland offers a whole-of-life approach John Holland is the only private rail operator record of delivering rail infrastructure to the operations and maintenance of railway in Australia, responsible for the asset projects from inception to commissioning infrastructure. We are able to assist customers management and operation of the CRN in throughout Australia and internationally. in determining their base railway infrastructure NSW, and the operation of the vertically In our key capability of rail construction, needs and in the preparation of upgrading and integrated MTM. We are an integral part of we provide integrated solutions on maintenance strategies and programs. the MTM team, working in partnership with complex multidisciplined projects. the Victorian Government and regulatory Accredited as a Rail Transport Operator in all of the authorities to integrate timetables, transport We have integrated delivery capability in the full Australian state and territory jurisdictions, we are modal interchanges and ticketing between range of track, structures, facilities, power, traction, experienced in the integrated planning requirements rail, bus and tram. John Holland is accredited signalling, control and communication signalling, of public transport infrastructure. We understand as a Rail Transport Operator in all of the and control and communication systems. We the requirements of a vertically integrated railway Australian state and territory jurisdictions. offer construction, operations and maintenance in operation, and the imperatives of operating a railway greenfield and brownfield environments. network, revenue and patronage forecasting, safety Our Transport Services stream is strategically and performance. positioned as a rail concession provider via our IMAGE As an accredited rail operator, we recognise the Roy Hill Iron Ore existing investments in rail construction and imperative of revenue operation and the importance Our strength in railway maintenance and operations Western Australia maintenance contracts, and our 30% market of integrated planning of infrastructure works that includes self-performing capabilities in trackwork, IMAGE share in this environment. Work Trains affect normal services. We offer project staff with signalling and communication systems, integrated New South Wales extensive experience in staging works to suit planning and train operations. The business has the IMAGE operational requirements. We have developed largest privately owned fleet of railway maintenance Metro Trains construction methodologies, and introduced and construction equipment in Australia, and over Melbourne innovation planning and practices to deliver the years, we have introduced new technology and Victoria award-winning outcomes in these complex the latest purpose-built railway equipment into the operational environments. Australian market.

48 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 49 GOVERNANCE governance chief financial officer’s message

DARRYN RAY Chief Financial Officer

We enter 2014 on the platform of a In order to support all staff to meet their but also enables a more efficient use of overheads WORKING CAPITAL MANAGEMENT strong financial performance in 2013, disclosure obligations, registers are maintained across the business. This has resulted in closer reflected in solid cash flow, profit of declared conflicts of interest and grievances relationships, and more effective engagement, Maintaining an appropriate balance sheet performances, and record revenue of reported by staff. An independently managed between Executive General Managers and their size and structure to support the business $4.78b. At year end the balance sheet Speak Up Line is available to report ethical Finance and Commercial support teams, as well and provide confidence to our customers reflected $926m of cash assets (2012: issues, and can be accessed by both Australian as a reduction in the overall cost base of the remains a key priority. As noted earlier, cash $663m), net current assets of $461m and internationally based employees. business. It has also led to improved operational flow and profitability in 2013 were strong, but decision making as senior leaders work more (2012: $344m) and net assets of $653m With respect to public policy, John Holland is focus in these areas remains. Enhanced work closely with our projects. (2012: $476m). Work in hand stood at committed to developing open, transparent procurement practices were implemented during 2013. The focus on revenue growth $5.5b (2012: $6.4b). and bipartisan relationships with members of GLOBAL BUSINESS SERVICES AND parliament at the local, state and federal level, has been moderated and replaced by a Restructuring activities largely completed during STRATEGIC PROCUREMENT along with members of their staff, departmental focus on quality of earnings. the 2013 year have provided the framework officials and political parties. This reflects the IMAGE for a leaner and more agile John Holland. We John Holland recognises the increasingly CORPORATE GOVERNANCE Regional Rail Link impact that public policy can have on our divested our capital-intensive Mining Services challenging global environment in which it is City to Maribyrnong River business. While John Holland is an active Victoria business to Leighton Contractors, reducing operating, and continually seeks to increase its Reflecting our commitment to creating and participant in numerous industry associations, our funds employed and enhancing our competitiveness and drive value for customers maintaining robust governance systems, the we report annually on government engagement working capital position. Throughout the year, and shareholders. Together with the broader John Holland Ethics Committee was formed activity and have strict guidelines relating to the we have continually reviewed and overhauled Leighton Holdings Group, leveraging scale and in 2006. The Chairman of the committee is the engagement and disclosure of lobbying activities. our overhead structures to better support our global reach were two initiatives commenced Group Managing Director, and the members operating business. No success fees are paid to lobbyists and in 2013. Continuing throughout 2013 and are the Chief Financial Officer, Group Legal John Holland does not donate to political accelerating in 2014, our focus on strategic Counsel and two Executive General Managers. During the year, we also completed the parties or causes. procurement has enabled us to realise further In 2013, four meetings of the John Holland acquisition and integration of selected cost savings across the Group. Ethics Committee were held. During the year, construction contracts and plant and Confidentiality processes must be followed in the Code of Ethics was replaced by a new equipment from Macmahon Holdings Limited. the preparation of tenders by all business units ASSET MANAGEMENT Ethical Behaviour Policy and a Code of Business Our core construction business and presence in John Holland. As such, we have established Conduct was published. in the Northern Territory has been further security, access and storage protocols, which We continue to seek efficiencies in our capital strengthened by the eight construction projects are implemented by tender teams in order to cost base, and ensure that our discretionary A training program on the Code of Business and 600 employees welcomed as a result. uphold the requirements for security and probity capital spend is channelled to the strategic Conduct was delivered to all employees. This as well as compliance with competition and training was conducted either by face-to-face Our parent company, Leighton Holdings, drivers of the business. Completing the sale of consumer law and trade practices provisions. training for those employees in high-impact focused on ‘5 Fundamental Things’ our Mining Services business in 2013 (effective 1 January 2013) significantly reduced our roles, an online e-learning training module for (5 FTs) throughout 2013. This focus was In further support of this requirement, capital investment, both in terms of current other employees and tool box talks for our reflected in our own program of work in confidentiality agreements are signed by all staff funds employed and future capital expenditure workforce. At year end, 94% of staff and 56% the key areas of Management Structures, involved in any way with tenders. requirements. In addition, our new asset of workforce had completed the training. It Global Business Services, Strategic is a mandated requirement for employees to MANAGEMENT STRUCTURES management system implemented during 2013 Procurement, Asset Management and complete an update of training every two years. Working Capital Management. A number has delivered a greater level of focus on individual of other business improvement initiatives The recent management restructure not only asset performance and has improved the The Ethics Committee presided over a review have also been implemented. delivers the enhanced operational capabilities portfolio view of both our near term and strategic of fraud and corruption. The review was referred to by our Group Managing Director, asset requirements.

50 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 51 conducted in three stages covering a desktop implemented. We will benefit from the review of existing documentation, a workshop appointment of dedicated internal audit on fraud and corruption risks, and a review of resources embedded in John Holland to assist specific projects. us in ensuring that our business operates in accordance with our best practice processes risk COMMERCIAL SUPPORT and protocols.

To ensure all projects continue to be delivered OUTLOOK on a foundation of strong commercial acumen, we continue to reinvigorate and enhance our The pipeline of project opportunities is strong, management project commercial support services across with a number of large infrastructure projects the company. Improvements include project currently being bid or expected to come to systems, increased resourcing to support market in the near term. As this is a traditional project start-up, ongoing mentoring, and the area of strength for John Holland, we remain enhancement of training tools and materials. optimistic about our chances of success, and GREG CAIN focused on delivering projects that meet our Executive General Manager, Risk Management INFORMATION AND COMMUNICATION customers’ expectations. TECHNOLOGY While the changes have been many during 2013, the transformation journey is far from Informed and astute risk management ENTERPRISE RISK MANAGEMENT With changes in the information and is fundamental to the commercially communication technology landscape, such as complete and we remain focused in 2014 on delivering on our key objectives around prudent conduct of our business. We are continuing to enhance our risk the growing digital economy, cloud computing, management processes with the development improving working capital management, In 2012, in order to consolidate risk proliferation of specialised apps and social of an integrated Enterprise Risk Management efficient and better delivered support reporting we amended our standardised risk media, ICT remains at the forefront of our (ERM) system and processes. ERM will services for our projects, and setting the assessment, management and reporting innovation strategy to enhance productivity. allow us to achieve our strategic objectives foundations for the next growth phase of framework to mirror the framework used Our projects continue to benefit from our focus by identifying and managing key risks and John Holland. The challenges inherent by our parent company. Risk reporting on mobile-enabled work practices that improve opportunities applicable to all parts of our in our current operating environment are associated with strategic planning, project the delivery and accessibility of efficient and business functional areas, covering projects well understood and we are well placed to execution and financial exposure has quality information. We are constantly striving from start to end and from the front lines to meet these challenges and ensure that our improved our ability to successfully monitor to streamline our use of technology across senior management levels. The team also business continues to be underpinned by and manage all business risk. We have also the company to improve personal computing supports our key tenders and projects with strong financial fundamentals. aligned our business structure to ensure IMAGE efficiency, which when combined with our advanced time and cost risk modelling. Regional Rail Link Virtual Desktop rollout in 2014, will truly enable that we have appropriate risk strategies and City to Maribyrnong River our employees to embrace mobile working. processes in place to support our offshore BUSINESS CONTINUITY AND CRISIS Victoria growth strategy via our Centres of Excellence. MANAGEMENT INTERNAL AUDIT In 2013, we consolidated the risk management function in order to drive better visibility of The Business Continuity and Crisis Our internal governance arrangements were risks­—particularly those that potentially Management stream is responsible for the strengthened during 2013 as the Leighton threaten multiple areas of the business. We also development of systems and a culture that Holdings-led internal audit structure was restructured the risk management area to drive supports resilience in the face of crisis or efficiency and monitor the effectiveness of risk significant incident. This stream is responsible mitigation measures. for both the development of an appropriate business continuity management framework Going forward, this will mean that John and the ongoing support of our crisis and Holland has the skills, systems, controls and incident management systems. This stream processes to clearly identify and manage the also manages the integration of John Holland’s risks that are brought into the business via crisis management system with Leighton its activities in operations and support areas. Holdings crisis management requirements. Success in this area will be evidenced by the ability to manage risks to the appropriate level INDEPENDENT PROJECT REVIEW within the business, and to control risks to improve business performance. The indicators The Independent Project Review function of that success will be the development of a undertakes structured reviews of our live strong and sustainable business by applying projects at predetermined stages of completion leading-edge risk management practices, in order to assess the project’s progress against and the delivery of business continuity and its objectives. This Group also participates in effective communications within the risk Leighton Holdings’ sponsored independent management environment. project reviews of our live projects. PRE-CONTRACTS RISK Bringing this Group under the Risk Management stream equips us to provide a The Pre-Contracts Risk stream focuses on more holistic view of risk management within the three key areas of assurance, approvals John Holland, and to communicate lessons management, and processes and systems. learnt from delivery through to Pre-Contracts in support of securing new and profitable work.

52 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 53 safety

At John Holland, we are committed to Since our people play a pivotal role in improving our safety vision: to know everyone will our safety performance, 2013 began with return home safely every day. Safety Leadership Workshops held across the business and attended by 300 of our leaders. Our challenges reflect those of the broader The workshops ensured that we started the industry, and we are continually striving to year with a shared understanding of the state of identify new ways to improve our safety safety within the business. We also took the time performance. This work can encompass to explore and discuss challenges in the field the refinement of existing processes or the that are seen as barriers to safety excellence. introduction of a new process or innovation. Bringing together over 120 Health and Safety In early 2013, in the pursuit of improved safety Representatives (HSRs), our 2013 HSR forums performance, we completed a diagnostic of focused on skills development in a simulated safety in our business. This diagnostic critically environment. Our HSRs met at the Master evaluated our approach, and identified barriers Builders Building Leadership Simulation Centre in to safety success and areas for future focus. Melbourne in April. The centre, which is the first The results from this diagnostic are driving fully integrated training facility for the industry, an evidence-based approach to improving uses 3D technology on a 15 m panoramic safety across John Holland, and have helped screen and houses replica site sheds. A team us to shape our strategic safety priorities for of trained actors provided scenario-based 2014–2016.

role-plays that immersed our HSRs in an ultra- We will continue to focus on our GMRs for realistic virtual workplace. safety, which were developed to outline the control strategies and minimum standards Following the launch of our Global Mandatory for managing the highest risks found in our Requirements (GMRs) for Safety in 2012, we workplaces. We are also committed to a set continued to embed the requirements across of Health, Safety and Environment (HSE) our operations. Embedding activities included behaviours that we expect our people, and the introduction of awareness training for our those we work with, to display every day. employees, which has since been completed by over 5,500 people. To ensure a consistent When applied together, the GMRs and the safety message, the same training is available to HSE behaviours clearly outline our operational subcontractors working on our projects. GMR and behavioural expectations. compliance assessments were introduced to all Another focus area will be the streamlining workplaces, allowing the reporting and trending of our systems to ensure that they meet the of GMR compliance across the business. needs of our diverse business. Enhancements In 2013, our safety results again showed will draw on technology to improve efficiency, improvement. We achieved our total recordable productivity and connectivity. injury frequency rate (TRIFR) target, and we In 2013, the concerted efforts of the business recorded a 15% reduction in serious incidents. helped to improve our safety performance, This means we are reducing the number of and we aim to see this trend continue times that our people are exposed to the throughout 2014. potential of a significant incident and injury, but there is still work to do be done. In 2014, we plan to further enhance, embed and improve the processes and procedures already in place to eliminate serious incidents and reduce our injury rates.

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We are strongly committed to creating The way we deliver to our customers, look after • The Committee for Economic Development John Holland has been recognised for a sustainable future. Our approach our people and care for the community and of Australia achievements and sustainability initiatives. places economic prosperity, social and environment is determined by our sustainability • Diversity Council Australia Industry awards not only acknowledge our commitments. Delivering a high-performance dedication to sustainable innovative solutions, community wellbeing as well as the • Australian Construction Supply Chain culture goes hand-in-hand with fostering a but also motivate us to continue to expand environment at the heart of everything Sustainability School we do. This ensures balanced work environment that shows genuine care the boundaries of what is possible when decision making with results that for people, especially in a business powered • Sustainable Built Environment National developing and delivering these solutions. benefit our customers, employees and by people. Research Centre This is what differentiates us from our competitors, and ensures that we deliver long- shareholders, as well as ensuring We understand that our relationships with our Our Group Managing Director is the current term value for our shareholders, customers, that we add value to the communities industry, the community and other stakeholders President of the Australian Constructors employees and communities as we continue in which we operate. are crucial. We are actively engaged in our Association, and our Executive General to perform with the future in mind. Sustainability imperatives have increasingly industry via membership of various key forums Manager, Operational Support is a Board become a key consideration for businesses and associations. Industry organisations in Member of the Infrastructure Sustainability We show our commitment to transparency by in the process of creating value for customers, which we play a key part include: Council of Australia. the regular public reporting of our performance shareholders, employees, communities • Australian Constructors Association We currently have 16 Green Star-qualified across key economic, environment, safety, and other stakeholders. For John Holland, social and governance metrics. • Infrastructure Partnerships Australia staff members participating in the Green sustainability is about having a positive and Building Council of Australia’s (GBCA) • Mineral Council of Australia engaging approach to economic, social and continual professional development program, environmental platforms. In this way, we will • Australian Petroleum Production and and 11 staff members that have completed remain both relevant and resilient, achieving Exploration Association IS Foundation Training with the Infrastructure greater employee engagement and improved • Infrastructure Sustainability Council of Sustainability Council of Australia (ISCA). We customer satisfaction. Only by being truly Australia also contribute to the SBEnrc’s Program 1 – sustainable can we realise our vision of ‘Greening the Built Environment’. transforming the industry by leadership.

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During 2013, our journey continued by employees, with a total of 86% favourable with the development of an agile, high- scores for staff and 72% favourable scores performing and diverse organisation for workforce in response to the statement, that is committed to its values in pursuit ‘I believe the John Holland values of Integrity, of the John Holland vision and mission. Innovation, Collaboration, Accountability, and Care are clear’. We are committed to fostering a culture that leads to superior and sustainable returns, We continue to embed a high-performance and to shaping organisational behaviour that culture by enabling managers to lead better encourages performance, innovation and performance discussions with their teams. agility. Our values of integrity, innovation, Over 800 employees attended performance collaboration, accountability and care are and development workshops. Manager linked to reward, performance management sessions included a greater focus on education and development, and employee engagement. and managing the change to the new In 2013, we continued our practice of linking performance rating scale, which includes key employee performance with our leaders and performance indicators (financial and non- senior managers. We rolled out this linkage financial) as well as values-based behaviours. between our values, and defined behavioural The John Holland ‘Awards for Excellence’ expectations and performance across the event recognised high performance. In 2013, business. Our values are part of our cultural nominees and award winners were announced DNA, wherever we operate. at a gala dinner, and a professional development We recognise that our success, and the session was hosted for all finalists. success of our customers’ projects, are Our focus on Learning and Development dependent on the performance of our people. (L&D) was further strengthened during the commitment to skilling new entrants and existing In this way, we will strengthen our overall We know from our customers that our people year as the L&D function continued to support workers in the resources and infrastructure pipeline of talent, and provide succession set us apart from our competitors. We also operational excellence by designing, procuring industry by awarding John Holland the Skills coverage for all critical roles. know the crucial importance of being flexible DMC Chairman’s Award in 2013. and implementing learning tools that could be As a member of the Leighton Holdings and offering an environment in which our delivered in an innovative way. Thirty-six new During the year, we strengthened our Group of companies, a number of our senior employees are able to engage, develop and online learning modules, including our first commitment to attracting and retaining talent, leaders participated in the 2013 Leighton receive recognition. organisation-wide, mandatory training modules, and providing rich career experiences in John Leadership and Development program. Productivity and performance reflect our were delivered, resulting in a significant uptake Holland. This commitment includes attracting This program, together with the John Holland employees’ level of engagement within of learning by staff. talented and motivated graduates via our leadership framework and talent development John Holland. Over the past three years, In 2013, we also met our ongoing commitment national graduate program. This program approaches, will ensure that we have the John Holland has conducted an employee to maintaining the necessary technical skills and offers broad opportunities to work in many calibre of talent needed to deliver effectively engagement survey that captures opinions professional accreditations of employees. The facets of our business, and provides rigorous today and lead into the future. and attitudes in a number of categories to professional development, mentoring and John Holland Registered Training Organisation As part of John Holland’s drive for determine the level of engagement. In 2013, networking activities. (RTO) that governs our quality-training framework organisational efficiency, operational the employee response rate to the survey issued 4,867 Statements of Attainment for units Identifying and developing our pipeline of performance and accountability, an increased to 67%, from 63% in 2012. of competency on our scope of registration. leaders with the values, skills and attitudes organisational design and cross-business The results for 2013 indicate that values and The Industry Skills Council recognised our necessary to lead John Holland today and stream consolidation of resources was associated behaviours are well understood into the future is critical to our people and undertaken in 2013, with the final structure culture. In 2013, we extended the scope of operational in 2014. The changes were talent management and succession planning part of our journey towards a learner, agile across all John Holland Operations, Support, and more efficient structure that will meet Strategy and Governance areas. We identified business and market requirements. our high-potential employees, and put in place a talent pool acceleration process to identify, develop and implement career and leadership opportunities for each high-potential employee.

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diversity & inclusion

We have a strong commitment to INDIGENOUS PARTICIPATION diversity and inclusion at John Holland. Our four areas of focus for diversity Our national Career Tracks strategy aims and inclusion programs are culture, to provide assistance, education, training, including Indigenous participation, employment and business opportunities for gender, age and career. Indigenous people. We can better support many of the communities in which we work The new reporting obligations in the Workplace by increasing opportunities in these areas Gender Equality Act 2012 (Cth) are now and encouraging a greater appreciation operational. Non-public sector employers with of Indigenous cultures. Our focus is on 100 or more employees are required to report developing mutually respectful partnerships annually to the Workplace Gender Equality with local Indigenous community organisations, Agency against a set of gender equality recognising the importance of cultural protocols indicators. Reports for the April 2013 to March when starting a new project, and building the 2014 reporting period are due in May 2014. cultural competence of our management and In addition to meeting regulatory requirements, staff across our projects. our commitment to diversity is strengthened by Our target for Indigenous participation is 5%. the individual, community and business benefits At the end of December 2012, 3.3% of our that flow from encouraging and leveraging employees identified as Indigenous and in diverse perspectives. We have defined targets 2013, the figure was over 4%. for gender and Indigenous participation, and our strategies include attracting and retaining Specific events include staff participation in talented women in our business, building cultural awareness sessions in order to build sustainable opportunities for Indigenous an understanding of our Career Tracks strategy participation and providing flexibility to assist and improve the communication of Indigenous employees over the age of 55 to shape their issues. A cultural tour that was included in the work future to suit changing circumstances. 2013 Excellence Awards saw all finalists board the Tribal Warrior ‘Mari Nawi’ boat for a tour of CULTURAL DIVERSITY Sydney harbour and an opportunity to learn more about Aboriginal culture and participate in During 2013, we continued to develop our an Indigenous celebration. cultural competence framework and rolled out In 2014, we will continue to focus on Indigenous a pilot for Unconscious Bias training aimed engagement in key sectors, markets and at minimising bias and improving the ability geographies with the aim of developing long- to manage diversity. We also continued our term relationships with Indigenous groups. general cultural awareness program with the development of an online training module, ‘Introduction to Diversity’, which will be made available in 2014. Our approach is to develop a cultural competency that will facilitate interaction with international partners and markets by providing general cultural awareness e-learning to project and non-project employees. Our aim is to ensure that cultural difference is respected and valued at John Holland.

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GENDER DIVERSITY and under were encouraged to provide a solution to the ‘Big Question’, which was, As at 31 December 2013, 16.3% of John ‘In what ways can John Holland innovate and Holland employees were women. This utilise technology to become carbon neutral by compares to a construction industry female 2030?’ There were 57 submissions received in participation rate of 11.9%, as reported by the answer to the challenge. Workplace Gender Equality Agency. The questions prompted all employees to think In an industry traditionally dominated by men, about the sustainability issues facing John we recognise that we have a long way to go Holland (for example, waste minimisation, to increase female participation, but we are renewable energy, offsets), and encouraged committed to reaching a female participation them to collaborate in developing innovative rate of 20% by the end of 2015. Our gender ways to become carbon neutral by 2030. strategy is based on attracting, developing and The next phase is ‘The Pitch’, which we will retaining women at John Holland. roll out in 2014. Employees who provided We were one of the first Australian potential solutions to the Big Question will construction companies to commission an collaborate in the development of a business enquiry into pay equity, introduce a paid case for their submission, which they will parental leave scheme and recognise the present to the operational Executive Leadership value of flexible working arrangements. Team. We intend to implement the winning business case or cases in the day-to-day During 2012, we launched our internal network, operations of the business. Women’s Link, which encourages employees (women and men) to connect and share For 2014 and beyond, we will continue with experiences and successes. Throughout several age diversity initiatives and improve 2013, we continued to work closely with the use of technology to connect to our various organisations to encourage girls and younger workers. women to establish and pursue careers in the construction industry. Women’s Roundtable CAREER DIVERSITY forums discussed topics such as flexible working arrangements, improving female We will encourage employees to manage connections, and supporting female career their careers actively to support a sustainable development opportunities. organisation. We continue to drive leadership capabilities and development opportunities, In 2014, we will focus on our employee value and continue to shift traditional thinking proposition for use in our recruitment and about careers in our industry, and about what retention campaigns and we will provide constitutes career success at John Holland. improved support mechanisms for women and their careers by offering mentoring along In 2013, we finalised the Career Lattice with career planning assistance. pilot program in which over 100 staff were invited to participate in workshops and use AGE DIVERSITY online career development tools. A survey was conducted in late 2013 to assess the We continue to offer our employees options to effectiveness of the program. Improvements meet changing career and lifestyle aspirations, will be implemented in 2014 and the amended to expand our ‘Voice of Youth’ concept, and approach will be available to all John Holland ensure better use of technology to connect to employees in 2014. our younger workers. In 2013, we used our communication channels to target knowledge transfer between generations, and to support International Youth Day. As part of an initiative to identify a key question or theme important to the future success of the business, all staff were invited to ‘Ask a Big Question’. Employees aged 30

62 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 63 community

We understand that the way we care for in the spirit of community development, and our community is critical to the success are measured by the value we create for the of our customers and our business. communities in which we operate. case studies This drives our objective to develop During our 65 years of operation, our people and maintain long-lasting partnerships PARTNERSHIP WITH THE LOCAL SUPPORTING CHILDREN WITH have supported many hundreds of charities, and relationships. SCHOOL LIFE-THREATENING ILLNESSES worked countless hours and contributed Our partnering approach is at the core of many materials to create lasting amenities for The team on the Esperance Port Access The Glenfield to Leppington Rail Link (GLRL) how we do business, and is delivered by: communities across Australia. In 2013, our Corridor (EPAC) project in Western Australia project raised more than $130,000 for the community investment across Australia totalled formed a valuable relationship with one of the children’s hospice, Bear Cottage in Sydney. • managing community impacts – project $1.13m. These investments took the form of town’s local schools. Bear Cottage nurses, other health workers and operation-based efforts to mitigate and volunteers create a home-from-home assistance to schools, community groups During the establishment phase, the project and reduce the impact of our work on and provide quality respite care for children and healthcare organisations. We review our team identified an undeveloped pocket of land local communities with a life-limiting illness, and their families. active projects annually to track our community adjacent to the project corridor. This land, owned • providing community benefits – project, partnerships and investments. by the Esperance Anglican Community School, The Glenfield to Leppington project team workplace and operation-based activities Many of our operations occur within highly was the perfect location for a site compound for worked tirelessly to raise money from that support local communities and urbanised areas, involve significant interaction storing equipment and prefabricating precast barbecues, donations from staff and the deliver lasting benefits. with local communities and require effective concrete panels. workforce, and sales of Bear Cottage merchandise. The money raised was used to We are committed to not only working with local management of construction challenges. We The project team approached the school, and fit out Bear Cottage’s nursing hub and allied communities throughout construction, but also to communicate openly in all our interactions, and the two parties agreed that in return for the use health services room, providing new work delivering lasting legacies for those communities collaborate with local communities to achieve of the land, the team would construct a new areas and storage space. in the form of the infrastructure we deliver and the best results possible for everyone. school oval, maintenance shed and water bore the partnerships we build. Our objective is for We work with our customers to ensure projects on project completion. every workplace and project to develop at least undertaken near local communities have one community partnership over and above The proximity of the laydown area to the project community relations plans and are provided any contractual requirements. We do this by corridor reduced the haulage of materials and with community relations resources to lead providing support via funding, labour, skills or provided space for the project to set up its own engagement activities. knowledge. These initiatives are undertaken precast yard, which increased local resource usage. This enterprising partnership resulted in a substantial benefit to John Holland, the school, local businesses and the wider community.

64 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 65 environment fines During the 2013 calendar year, there were no Environmental Infringements received and no Class 1 incidents reported.

John Holland recognises the importance In 2013, we improved our environmental of environmental sustainability, and we management system by integrating are committed to conducting business environmental sustainability initiatives with the in a way that promotes environmental project delivery cycle. Our system evolution spills values. We intend to be recognised by is part of an overall drive to provide more our employees, customers and other streamlined and user-focused processes, stakeholders as an industry leader in procedures and tools via our Integrated Month Project name State Volume Material Description environmental management, and will Management System. During removal of a fuel-metering unit, a fuel shut off valve build our credentials by targeting more John Holland We also advanced several programs that Feb. 2013 WA 1000 L Jet-A1 failed to close causing a discharge of aviation fuel. The shut off environmentally sustainable outcomes Aviation Services leveraged initiatives from our projects and valve was activated manually and the spill was cleaned up. from the projects we deliver. made them ‘business as usual’. These included Sediment basin overtopped following a rain event greater By giving strategic focus to environmental improving our procurement process of materials B828 - DLTP than design capacity. This resulted in an uncontrolled and suppliers, determining energy efficiency (Defence Logistics Sediment- sustainability, we will achieve the best outcomes Mar. 2013 NSW Not specified discharge of sediment-laden water, erosion to basin wall Transformation laden water for our business. We can, through design opportunities, and better waste management. and damage to downstream erosion and sediment controls. Program) and construction methodology of buildings There was no ongoing impact to the receiving waters. Our 2013 environmental results showed and infrastructure, reduce the resources and marked improvement, with our environmental materials we use and impact to biodiversity. 1074 - Bulimba During connection of a new sewer line to the main line, a incident frequency rate (EIFR) decreasing from Mar. 2013 Creek Trunk Sewer QLD Not specified Sewage sewer overflow occurred from two upstream manholes, By achieving the best possible environmental 0.46 in January to 0.05 in December. This Upgrade which then entered Bulimba Creek. outcomes in the work that we do, we can achievement highlights the concerted efforts of enhance not only the environment in which our employees, skill of our environmental staff Concrete spill during works over water. The concrete 4118 - Gladstone we live and work, but also the longevity of our and improvements to our management system. April 2013 QLD Minor Concrete pump was turned off immediately and the majority of the LNG Jetty business, and the reputations and financial spill was contained. In 2013, we expanded our influence with outcomes for ourselves and our customers. continued active participation in industry-leading John Holland’s environmental strategy will be forums, including Green Building Council of SikaBoom During works over water, approximately 100 g of expanding 4121 - APLNG April 2013 QLD Minor (expandable foam was discovered to have spilt on mudflats below. implemented via an action plan that is designed Australia (GBCA), Infrastructure Sustainability Jetty Project to realise our long-term aims of the sustainable Council of Australia (ISCA), Sustainable Built foam) There was no ongoing impact on the receiving waters. use of natural resources, supporting biodiversity Environment National Research Centre conservation and minimising our impact on (SBEnrc) and we are a founding member of T102 - Darwin Equipment leak resulted in hydrocarbon spill to marine ecosystems. Together with measures that the Australian Construction Supply Chain May 2013 Marine Supply NT Minor Hydraulic oil surface. Works ceased, spill was contained and cleaned enhance our operational efficiency and sharpen Sustainability School. Base up. There was no ongoing impact on the receiving waters. our market competitiveness, we are securing the long-term prosperity of our business. COTR - ACTEW BWA Area - Turbid water was observed entering the Cotter River from June 2013 Enlargement ACT Not Specified Water a recently decommissioned sediment basin. There was no Of The Cotter ongoing impact on the receiving waters. Reservoir Project

Contaminated runoff bypassed a geo-fabric lined plate RRLA - RRL Polystrippa and entered stormwater drains. Contaminated water was June 2013 VIC Minor Package A Active removed from the drain and there was no ongoing impact on the receiving waters.

Saw cutting A minor amount of concrete slurry entered the Brisbane C260 - Riverwalk discharge River during works over water. Works ceased and the Aug. 2013 QLD Minor Reconstruction - alkaline affected area cleaned up. There was no ongoing impact on substance the receiving waters.

During a heavy rainfall event, the basin temporary outlet ELF2B - Enhanced plug was washed away releasing turbid waters to Sunny Sept. 2013 Landforce Stage QLD 600 m3 Stormwater Creek. Water within the basin was treated immediately and 2B additional sediment controls were installed. There was no ongoing impact on the receiving waters.

B828 - DLTP Turbid water from a sediment basin entered ANZAC Creek. (Defence Logistics Sediment- The impact was contained to a small, localised area within Oct. 2013 NSW 216 m3 Transformation laden water the project boundary. Sedimentation was short-term and Program) less than 24 hours.

66 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 67 case study UNIVERSITY OF TASMANIA’S The striking facades of both buildings draw on MEDICAL SCIENCE PRECINCT natural themes, such as Hobart’s mountains and waterways, and elements of bio-medical DRAWING ON NATURE research, such as cell structures. The building The University of Tasmania’s Medical facades aligned with the topography and the Science Precinct (comprising two distinct contours were extruded as sunshades and projects, Medical Science 1 and Medical combined with the concrete lattice frame. Science 2) is the home for the Faculty A number of key sustainability practices were of Health Science School of Medicine utilised throughout the precinct including: and the Menzies Research Institute of Tasmania. The Medical Science Precinct • thermal insulation break in precast panels provides a range of leading-edge research (thermomass) facilities, including a dedicated QC2/PC2 • high performance glazing systems laboratory floor, specialist medical teaching • extensive contoured sun shading laboratories and general teaching spaces. • rain water storage for use in toilets and The Medical Science 2 project achieved a landscape irrigation 5-star Green Star Education design rating. • outgoing water treatment The John Holland Fairbrother Joint Venture completed Medical Science 1 in 2009 and • enhanced daylight and amenity to internal Medical Science 2 in May 2013. office environments • sustainable materials selection.

68 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 69 case study HONG KONG WASTE INCINERATOR network. The incinerator’s flue gas treatment lines comply with international emission and MAKING ENERGY FROM WASTE air quality standards. In joint venture with two other parties, John A seawater desalination plant supplies the facility Holland is delivering vital sludge incineration with up to 600 cubic metres of desalinated works in the design, construction, testing water per day while wastewater is recycled at and commissioning of a new $660m Hong the site to help protect the environment. Kong Sludge Treatment Facility for the Hong Kong Environmental Protection Department. The facility’s facade is a beautiful and striking waveform architectural design inspired by the The facility will be self-sufficient, using the surrounding waterfront environment in the heat produced from the incineration process western part of Hong Kong’s New Territories. to produce steam to drive turbines capable The design is complemented by a landscaped of generating 14 megawatts of electricity, garden and eco-habitat for water birds. which is more than enough to cover the plant’s energy needs. Surplus electricity will be available for export to the external power

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VICTORIA QUEENSLAND NEW SOUTH WALES Corporate Head Office Brisbane Office Sydney Office Level 5, 380 St Kilda Road 1000 Ann Street Level 3, 65 Pirrama Road Melbourne 3004 Fortitude Valley 4006 Pyrmont 2009 Victoria Queensland New South Wales Phone 03 8698 9400 Phone 07 3867 7000 Phone 02 9552 4288 Fax 03 9696 1873 Fax 07 3867 7100 Fax 02 9660 0410

Melbourne Office WESTERN AUSTRALIA Newcastle Office 70 Trennery Crescent Perth Office Level 5, 24 Honeysuckle Drive Abbotsford 3064 Newcastle 2300 Level 8, 67 Walters Drive Victoria New South Wales Osborne Park 6017 Phone 03 9934 5209 Western Australia Phone 02 4929 2633 Fax 03 9934 5275 Phone 08 9482 2700 Fax 02 4929 2048 Fax 08 9482 2892 Rail Services TASMANIA

171 Laurens Street Hobart Office JOHN HOLLAND North Melbourne 3051 NORTHERN TERRITORY annual review 2013 Level 2, 13-17 Castray Esplanade

Victoria Darwin Office ANNUAL REVIEW 2013 Battery Point 7004 Phone 03 9619 6134 110 Coonawarra Road Tasmania Winnellie 0820 Fax 03 9619 6183 Cover image features the construction of Urban Superway, Northern Territory Phone 03 6221 8900 Adelaide. Built by John Holland, this was South Australia’s Phone 08 8984 3322 Rail Services first elevated roadway. At a cost of $842m, it stands as the Fax 08 8947 2175 NEW ZEALAND biggest single investment in a South Australian road project 1 McLister Street Auckland Office and the state’s most complex engineering road construction Spotswood 3015 celebrating our heritage embracing change annual review 2013 looking to the future project to date. Victoria 47 Airdrie Road Phone 03 9610 2900 Ranui 0612 Auckland Fax 03 9610 2993 Phone +64 9831 0107 johnholland.com.au

JHG2002_ANNUAL REVIEW COVER_11•.indd 1 8/05/14 2:58 PM

further information JOHN HOLLAND financial report 2013 FINANCIAL REPORT 2013 If you have any questions or comments about this Review, please do not hesitate to send them to Cover image features the completed Urban Superway, [email protected] Adelaide. Constructed by John Holland, Urban Superway’s southbound lanes opened on 31 January 2014, followed by the opening of the northbound lanes on 13 March 2014.

celebrating our heritage embracing change financial report 2013 looking to the future

John Holland has taken all reasonable care in preparing this Annual Review 2013 (‘the Review’) and believes it is correct in material aspects. However, the Review is intended only to provide general and summarised information in relation to John Holland’s activities and is not intended to be comprehensive or advisory in nature. John Holland does not, in any way, hold out, represent or warrant the accuracy or completeness of any of the information contained in the Review and readers must not rely upon or act on the johnholland.com.au

basis of any such information. John Holland is not responsible in any way for costs, loss, damage or other liability of whatsoever nature, which may directly or indirectly be JHG2002_FINANCIALS COVER (UV)_3.0•.indd 1 8/05/14 2:57 PM suffered by any person, by way of reliance on any of the information in the Review.

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