McConnell Dowell 2019 Annual Review

5 Annual Review 2019 Message from our CEO The 2019 financial year saw our business deliver a second consecutive year of profitability. The return to profitable performance in Financial years 2018 and 2019 following a number of difficult years, is a direct result of the successful implementation and execution of the newOperatingModel and Transformation Strategy launched in 2016, and reflects purposeful leadership commitment and dedicatedwork of the entire McConnell Dowell team. Our ability to deliver projects with a clear and concise operating method, engaged and aligned people, strong values, and a differentiating workplace culture is a proven core strength of the McConnell Dowell brand. In FY19 we grew our Order Book, continued to deliver market leading safety performance, and focused on the ongoing building of the business foundations required for sustained growth and profitability. Pleasingly, FY19 saw all business units delivering profitable performance and was bookended by industry recognition at a national and global level. Delivered Safety & Environmental Excellence • Achieved unprecedented safety records. Set new and higher standards across many fronts • Focused on providing first-rate safety leadership and growing a culture of sustainability, diversity and care • LITFR 0.15 (0.54 2018) including no lost time injuries in Australia • RIFR 2.01 (4.06 2018) • Numerous industry and customer safety awards. Growing Order Book • Significantly Improved the year-on-year performance of new work won up 200% • Secured greater than 75% of the planned revenue for FY20 • Achieved Built Environs Expansion in to New Zealand • Re-entered the New South Wales market & secured new work with PUB in Singapore • $6.2B work tendered ($5.7B FY18) • FY19 win rate 36% of tenders • Approximately $3B of tenders currently outstanding and of that $1.3B as preferred status. Business Foundation set for Sustained Growth & Profitability • Strong project execution performance across project portfolio • Leading and growing “The McConnell Dowell Way” • Continued investment in tomorrow’s growth • Strategic direction remains realising scale and efficiency objectives while balancing risk, agility and process • Operationalised the Core Values across the Group. All Business Units Profitable & Geared for Growth • Restored profitability in New Zealand and Pacific Islands operations • Clear and consistent strategy to improve profitability • Continuous and improved risk management focus across entire project portfolio • Culture of no surprises embedded in all operations across the Group. Innovation and Industry Recognition • Awarded the pre-eminent industry awards in both Australia and New Zealand • Driving engineering excellence and innovation by leveraging our specialised experience within the Group • Brand strong and strengthening across the industry.