McConnell Dowell 2020 Annual Review

5 Annual Review 2020 Scott Cummins CEO ‘McConnell Dowell has continued to build on the solid foundation established over the recent years’ Business Unit Overview Australia The Australian construction sector remained operational, despite various state-based lockdowns and revenue for our Australian business unit increased by 6% to AUD470 million. Operating earnings benefited from improved execution of the majority of projects. To mitigate delays in the award of several preferred status contracts, our Australian operations increased bidding activity and secured significant additional work on alliance projects, such as the long-termWestern Program Alliance in Victoria and the South Australia (SA) Water Framework in Adelaide. The latter project is a four year agreement between the SA government and construction partners to deliver major water and sewerage infrastructure projects across the state. With the opportunity to build a new long-term customer partnership and revenue stream, this is an exciting opportunity for our Australian business. Other new awards included the Mordialloc Bypass and Echuca Moama Bridge, which are both part of Victoria’s major roads programme; the HMAS Coonawarra Marine Works in the Northern Territory; and the Agnew Gas Pipeline in Western Australia. South East Asia Our South East Asia business unit saw a reduction in revenue due to uncertain market conditions and COVID-19 related lockdowns across the region. All our projects have now been remobilised. The business unit successfully secured new projects across the region, including the Jurong Regional Line (J108) project for Singapore’s Land Transport Authority; the New Bang Phra Pump Station for Thai Oil in Thailand; and the PalembangWastewater Treatment Plant in Indonesia. We will continue to be selective in our bidding and we have reduced our cost base to support lower levels of revenue resulting from on-going market volatility and uncertainty in the region. New Zealand and Pacific Islands Our New Zealand and Pacific Islands business unit increased revenue by 24% to AUD263 million, despite a five-week project lockdown in April due to COVID-19. All our New Zealand projects are now fully operational. Our focus on sectors where our record is strong resulted in a number of new awards, including the strategic Papakura to Pukekohe Rail Electrification project for state-owned KiwiRail; the Westland Milk Outfall project; Old Mangere Bridge replacement and the Agasi Bridge project. Repeat work was also secured with Watercare with the award of the Mangere Tarp andWarkworth to Snells Pipeline Transfer projects. Built Environs Built Environs, McConnell Dowell’s commercial building operation, reported an 83% increase in revenue with strong delivery performance on all current projects. The business successfully delivered an Australian first, with a new luxury hotel integrated into the iconic Adelaide Oval, and continued its excellent delivery track record in the health sector with the successful Modbury Hospital upgrade in Adelaide. Built Environs’ entry into New Zealand continued in line with our plan to expand its geographic footprint. Building on the ongoing successful execution of the Auckland City Mission HomeGround project, the business secured the Puhinui Station upgrade in Auckland in joint venture with McConnell Dowell’s New Zealand operation. We will continue to focus on expanding Built Environs’ markets by exploring opportunities in larger markets like Victoria and New South Wales.