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Annual Review 2013 Looking to the Future

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Annual Review 2013 Looking to the Future 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 view our annual review online A full version of our Annual Review is available online at: johnholland.com.au/annualreview2013/ For more information, you can visit: johnholland.com.au 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 2 | JOHN HOLLAND ANNUAL REVIEW 2013 JOHN HOLLAND ANNUAL REVIEW 2013 | 3 2013 ANNUAL REVIEW 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
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