6 Message from our CEO continued... social responsibility (CSR) initiative per project, and more than 90% of client social procurement spending targets were met or exceeded. People and Leadership Our strong leadership across the business was further enhanced by several key senior appointments, including the addition of a Project Management Office function at Group level, led by Trevor Cruden with more than 30 years’ experience in the area. Our new South East Asia Managing Director Tan Hee Wee brings a wealth of local knowledge and new industry relationships to the business, while the Australian leadership team welcomed Katrina Dodd as GM Engineering and Ryan Dodd as the new GM Queensland/Northern Territory region; both also bringing strong local network connections and reputations. Leadership teams in New Zealand and Pacific Islands and Built Environs remain largely unchanged, highlighting overall business stability. After a tumultuous post-COVID-19 period industry-wide, employee turnover has generally stabilised, with attraction and retention of top talent through career progression and leadership programs continuing to be a focus. Ongoing staff development remains a priority, with 19,779 hours of training undertaken by our employees. Looking ahead While our secured revenue is strong, there are some complexities emerging, especially in our largest market, Australia. Recent government change at the federal and state level has led to a review of priorities and major projects. Investment in social infrastructure (schools, hospitals, public housing) is set to increase in key states such as Victoria and NSW, with some of this investment likely to replace transport infrastructure funding. Similarly, all regions are planning for the inevitable energy transition and future climate and water resilience investment requirements. This again, may divert funding away from transport infrastructure. Our Horizon 2030 Strategy foresaw these trends, and the business is well placed to participate in these next waves of growth, with Work in Hand up 40% to $3.5 billion, securing expected revenue budget for FY24. The Built Environs business specialises in social infrastructure, especially schools and hospitals, while our recent focus and success in energy (e.g., Kidston Pumped Hydro and Port Kembla LNG Terminal) and water (e.g., numerous WWTP projects in NZ, Palembang WWTP in Indonesia, and SA Water Frameworks) provides the market positioning and capability platform needed for future growth. The business successfully delivered in its Victorian region the Year 9 Building for the Haileybury College and the Mt Alexander College project for the Victorian Schools Building Authority. In New Zealand, Built Environs completed the Otahuhu Logistics Park project for Logos and handed over its first health project the new Paediatric Intensive Care Units for Health New Zealand. South East Asia Revenue in South-East Asia reduced to $120 million, and the region remains the most challenging for the Group. Profit margins were adversely impacted by difficult operating conditions and supply chain constraints, with limited new work secured in the reporting period. Changes have been made in Project Leadership in the period on several of our key projects. Active projects included Jurong Regional Line (J108) and Tuas Wastewater Reclamation Works - C1A in Singapore, the Tangguh LNG, and Palembang Wastewater projects in Indonesia and FGEN LNG MultiPurpose Jetty and Gas Receiving Facility in the Philippines. Throughout the region, the construction sector has recovered to pre COVID levels in the most part, but there are still adverse effects in delivery with delays in the supply chain and depleted availability of key staff, labour, and specialist equipment. Refocusing of tender activity towards near shore marine infrastructure in FY23 has strongly positioned the BU to be awarded key projects in H1 FY24 in our key geographical markets. In FY24, the BU will continue this recentring of focus on primarily Marine opportunities in the key geographical markets of Singapore and Indonesia. Environmental, Social and Governance We have continued to deliver on our environmental, social and governance objectives aligned with our purpose of 'Providing a Better Life', by embedding our Environmental, Social and Governance (ESG) framework into our organisational decision making. Environmentally, we remain committed to reducing carbon and embracing the circular economy, including concerted efforts to minimise waste and pollution. Climate change risk or ESG proposition continues to be considered in all tenders, with an average of two environmental initiatives executed per project, and 80% of our construction and office waste diverted from landfill. We also co-developed the ‘Solarator’ - a compact containerised power plant combining solar panels, batteries and a small diesel generator, which is being used on project sites across Australia. Solarators are scalable in output and can reduce diesel consumption by up to 90% for our off-grid site facilities. On the social front, our 'Pre-employment Program’ on the New Bridgewater Bridge project is helping build the capability and capacity of Tasmania's construction industry, and providing a career kick-start for people who were either long-term unemployed, indigenous, disengaged youth, or living with a disability. The program was developed by us, funded by Keystone Tasmania, and delivered in partnership with TasTAFE and Lifeline. Overall, 56 participants (84% of the intake) graduated with job-ready skills. 26% were women and 28% were Aboriginal or Torres Strait Islander. Our Australian team also advanced their Reconciliation Action Plan (RAP) work to ‘Elevate’ level, while 100% of New Zealand projects and offices involved mana whenua. We achieved out target of at least one corporate Scott Cummins Chief Executive Officer
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