John Holland Annual Review 2010
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NORTS HERN S S G N A E O N I I T C F I A N I IC V N E U M M R N COM E R WATER T E ANNUAL REVIEW 2010 S T Y S ENERGY & E W RESOURCES E TUNNELLING POR WER N T A V C AVIATION A I I / L R D W COMMUNITY N S O N A PEOPLE N L L M O H E N N T OH QUALITY J SOUTHERN JOHN HOLLAND Contents NORTHERN Our Business REGIon P02 Our Organisation SOUTHERN P03 Our Highlights REGIon P04 Our Board P06 Chairman’s Report NSW/ACT REGIon P08 Group Managing Director’s Report P10 Chief Financial Officer’s Report WESTERN REGIon P12 Our Business 08 P84 Corporate Structure P84 Company Directory RAIL 20 Our Regions TUNNELLING P16 Northern Region ENERGY & P20 Southern Region RESOURCES P24 NSW/ACT Region P28 Western Region WATER Our Specialists MINING P32 Rail P36 Tunnelling POWER P40 Energy & Resources P44 Water JOHN HOLLAND P48 Mining AVIATION SERVICES 48 P52 Power P56 John Holland Aviation Services COMMUNICATIONS P60 Communications SAFETY Our Imperatives “Our safety P64 Safety QUalITY performance is an P68 Quality P72 Environment important barometer ENVIRONMENT of our business P76 Community success” P80 People COMMUNITY P64 Safety People 1 ANNUAL REVIEW 2010 Our Organisation John Holland is committed to being Australia’s leading and most diversified contracting, engineering and services provider. Our unique delivery model of national specialist businesses integrated with the strong civil and building capabilities of our regional businesses provides our organisation with the capacity to deliver complex and challenging major works in a variety of sectors right across Australia. The vision for the business has always been to develop an organisation based on outstanding technical skills, tenacity, innovation and an absolute commitment to people and their careers. John Holland is a wholly owned subsidiary of Leighton Holdings Limited, a company listed on the Australian Securities Exchange. OUR locatIons OUR people John Holland has offices in all metropolitan We employ more than 7,000 people across and major regional centres throughout Australia in a diverse range of project, Australia. At any one time, we are involved operational and support service roles. in over 80 projects across Australia and We recognise that our success is South-East Asia. inextricably linked to the talents and efforts of all our people and, for this reason, OUR capabILITIes we strive to be considered an employer of John Holland has enjoyed incredible choice by our people and in our industry. growth through our operational diversity, We pride ourselves on being a market wide capabilities and industry experience leader in our approach to safety, targeted and we are continually developing these training, career development, staff benefits strengths. Our expertise stretches beyond and remuneration. the traditional civil engineering and building markets to industry leading competencies OUR staKeholders in rail, tunnelling, water, energy and Our stakeholders range from clients, resources, power, mining, aviation government and other business partners to services and communications. the local communities we operate in through our ongoing project delivery. Understanding OUR operatING prIncIples stakeholder needs is critical to the success Our key operating principles – People, of every project we undertake and we Performance, Partnerships and Profit – remain committed to communicating remain a focus in all that we do. We are openly with each of these groups. absolutely committed to our people, see project performance as a fundamental driver of business success and seek to develop mutually beneficial relationships with all our clients and business partners. Through our focus on these principles, our aim is to deliver profit which guarantees the long- term sustainability of our organisation. 2 JOHN HOLLAND Our Highlights Revenue NORTHERN $633m REGIon SOUTHERN $519m REGIon NSW/ACT $290m REGIon WESTERN $252m REGIon RAIL $537m TUNNELLING $441m ENERGY & $425m RESOURCES WATER $168m MINING $124m POWER $114m JOHN HOLLAND $53m AVIATION SERVICES COMMUNICATIONS $53m SAFETY QUalITY ENVIRONMENT COMMUNITY People 3 ANNUAL REVIEW 2010 Our Board 1 2 1 Janet HOLmes À COURT AC, CHAIRMAN 2 GLENN PALIN 3 DAVID STEWART 4 HANS OHFF 5 WAL KING AO 6 IAN JOHNSON 7 NICK STUMP 8 BILL BLOKING 4 4 6 7 JOHN HOLLAND Our Board NORTHERN REGion SOUTHERN REGion NSW/ACT REGion WESTERN REGion RAIL TUNNELLING 3 ENERGY & RESOURCES WATER MINING POWER JOHN HOLLAND AVIATION SERVICES COMMUNICATIONS 5 SAFETY QualitY ENVIRONMENT CommunitY People 8 5 ANNUAL REVIEW 2010 Chairman’s Report The 2010 financial year was a year of record achievement for John Holland. With turnover of $3.6 billion, over the last 12 months we achieved record net profit of AS ALWAYS, $180 million and, at the end of the financial year, had secured a record level of work in hand of $5.3 billion. Moreover, the last A KEY PART OF 12 months have brought a recommitment to our 4P operating principles and the further development of our internal collaborative OUR SUCCESS model as a catalyst for our ongoing success. As always, a key part of our success has been the outstanding contribution of all our HAS BEEN THE people. Their innovation, drive and creativity in the delivery of often challenging and complex projects have provided the impetus OUTSTANDING for our continuing growth and sustainability as a business. It has been particularly pleasing to see an CONTRIBUTION increasing investment in the development of our people, especially in training programs aimed at nurturing our youngest employees. OF ALL OUR The development of this group will provide an important base for growth in the years ahead as our industry again grapples with skills shortages. Our National Graduate PEOPLE Program, our ongoing partnership with Central Queensland University and the Sir John Holland Scholarship, which Yet, while there have been many positive is awarded to two Monash University steps, our performance in this area again engineering students each year, are all fell short of expectations. Sadly, the death great examples of our efforts in this area. of Danny Cheney on 5 December 2009 brought a stark reminder of the dangers I am delighted that we have reaffirmed inherent in much of our work. Danny was our commitment to providing meaningful tragically killed at Kelso in Queensland, employment opportunities for Indigenous causing immense distress across our Australians through the appointment of an organisation. Our thoughts remain with Indigenous Affairs Program Manager. Danny’s family and friends. We have also taken significant steps toward the launch of Career Tracks, our Indigenous The opening of the Sydney Desalination employment program. John Holland has Plant earlier this year was one of many a long history of working closely with local project delivery highlights. The project communities to improve the participation received Infrastructure Partnerships of Indigenous Australians in our workforce. Australia’s 2010 Government Partnership Our work in the early parts of this decade Excellence Award, demonstrating the on the Alice Springs to Darwin Railway set value we place on generating meaningful the benchmark for Indigenous participation partnerships with our clients as a means on regional construction projects. of securing positive project outcomes. Our safety performance is an important Elsewhere, in my home state of Western ongoing barometer of our business Australia, I have watched with interest the success. The implementation of our development of the new State Theatre Safety, Quality and Environment Risk Centre just next to the CBD in Northbridge. Management Program over the last A technically challenging and complex 12 months has seen the early assessment design, the successful delivery of this and identification of risk placed at the project reflects John Holland’s broader forefront of our approach to workplace commitment to innovation and excellence safety. I have been encouraged to witness in project delivery. firsthand the positive impact this has had on the effective management of Our commitment to partnerships as a guiding business principle has also been 6 workplace risks. JOHN HOLLAND NORTHERN REGion SOUTHERN REGion NSW/ACT REGion WESTERN REGion RAIL TUNNELLING ENERGY & RESOURCES WATER MINING demonstrated through the ongoing work Our performance reflects the strength POWER of our project teams in local communities, of the operational leadership within the and our broader corporate support for business. John Holland has a long history organisations in the arts. The Victorian of developing great leaders, and our JOHN HOLLAND Opera, the West Australian Symphony current leadership team is no exception. AVIATION SERVICES Orchestra, through its work at Princess I congratulate Glenn Palin and his executive Margaret Hospital for Children, and the team for their leadership, drive and Australian National Academy of Music commitment. I also extend my thanks to COMMUNICATIONS are just three beneficiaries of our broad my colleagues on the Board and indeed approach to community investment and all those who work for John Holland – engagement. one of Australia’s largest and most diverse construction companies. SAFETY Finally, I am pleased to see our recommitment to the measurement and I look forward to another successful reporting of our environmental performance year ahead. and our ongoing positive interactions with all QualitY communities in which we work. In the year ahead, we look forward to the release of our second Corporate Sustainability Report ENVIRONMENT as we take further steps to improve our performance in this area. Janet Holmes à Court AC Chairman The sustainability of our business remains CommunitY a key focus as we move forward and our integrated business model provides a solid foundation for dealing with the impacts of last year’s global financial crisis. We have People ambitious plans for growth over the coming years, including selective international business opportunities, and our strong reputation for specialist engineering has positioned us well in this regard. 7 ANNUAL REVIEW 2010 Group Managing Director’s Report I’m delighted to report that our business has again performed experience to draw upon – and, crucially, the ability to tap that above expectations.