THE LEIGHTON ASIA MAGAZINE 2009 ISSUE 1

Transcription

1 THE LEIGHTON ASIA MAGAZINE 2009 ISSUE 1 1

2 Attendees delight at 2009 Annual Dinner The Hong Kong and Macau Annual Dinner was held on 17 January 2009 at the InterContinental Hong Kong hotel. The event was held to celebrate another successful year for the company and to acknowledge the ongoing commitment and efforts as demonstrated by staff. Attended by over 600 Leighton staff and families from our office and project sites in Hong Kong and Macau, the event commenced with an entertaining traditional Chinese lion dance. To the delight of all, Hamish Tyrwhitt and Ian Edwards dotted the lion s eye signalling commencement of the evening s celebrations. Upon conclusion of the dance, the lion delivered a couplet from its mouth, which read: We always act with integrity at Leighton, which attracts a lot of talent to come and work for us. Hamish Tyrwhitt addressed the gathering noting both the successes and challenges that Leighton Asia had faced in 2008 and reminding staff that 2009 would be even more challenging. He also congratulated 30-year award winners - C. S. Tsang, Paul Chung, H. K. Wong, John Nash and Ada Chung and thanked them for their long and loyal service to the company. In conclusion, Hamish reminded everyone that: We need to maintain our focus on business fundamentals such as cost management and risk management and don t forget the Rules of Racing, the rules that keep us all in line and in tune with our business. We must be innovative and proactive to differentiate ourselves in the market. Executive general manager Hong Kong, China, Macau, and Taiwan Ian Edwards thanked the team for their hard work 2

3 during the past year and looks forward to an even better year with numerous opportunities. Leighton Asia administration manager and thirty year veteran, Paul Chung addressed the audience, concluding with echoes of a speech originally made by former US President, John Kennedy: Don t ask what Leighton can do for you, ask yourself what you can do for Leighton. Recognising the outstanding achievements at various sites throughout the year, at the Annual Dinner Leighton Asia handed out awards to the following projects: Safety award - Gold - Permanent Aviation Fuel Facility project Environmental award - Gold - Kowloon Southern Link project Quality award - Gold - Melco Crown Entertainment s City of Dreams project The Annual Dinner also marked receipt of Professional Engineering awards to six recipients, including our managing director Hamish Tyrwhitt, Gallio Li, Gavin Chan, Edmond Chung, Ivan Poon and Desmond Sze. As the band played, staff celebrated by taking to the dance floor and enjoying the party atmosphere. Many lucky individuals also won lucky draw prizes on the night, which added a further element of celebration to the evening. The Leighton Asia Annual Dinner was a resounding success and an evening of celebration that also presented an excellent opportunity for staff from different offices to come together and catch up with each other in a relaxing, social atmosphere. 3

4 Leighton Asia addresses carbon footprint What are ecological and carbon footprints? An ecological footprint is an overarching resource accounting tool used widely as a management and communication tool by governments, businesses, educational institutions and NGOs to answer a specific resource question: How much of the natural capacity of the planet is required by a given human activity or population? The term carbon footprint is commonly used to describe the total amount of CO2 from energy and other greenhouse gas (GHG) emissions for which an individual or organisation is responsible. The carbon footprint forms part of the overall ecological footprint and is widely reported as contributing around 50% in global terms. For Leighton Asia, the major contributors to our carbon footprint are from fossil fuels and indirect emissions from the use of electricity. As part of our environmental protection programmes and initiatives, we have taken many steps to ensure that activities at our projects are properly controlled in order to reduce adverse environmental impacts to acceptable levels, including comprehensive pollution and nuisance abatement measures to address the significant environmental aspects of our business such as noise, construction dust, air emissions and discharges to water. In this regard we continue to be successful in managing the local environment. Leighton Asia has been measuring its own fuel and energy use and waste produced at Hong Kong and Macau projects for a number of years and that process will be progressively extended to cover our major subcontractors. In addition, all our projects in Hong Kong and Macau maintain detailed waste-flow tables that track waste produced and reduction, reuse and recycling initiatives. Project initiatives to reduce our footprint in Hong Kong The project team at the Permanent Aviation Fuel Facility at Tuen Mun, Hong Kong, maximised the reuse of excavated material during construction to reduce off-site disposal and almost all formwork used on the project was metal, allowing multiple reuse and saving 240 cubic metres of timber. They are also investigating the use of energy saving lighting in the site offices. We amended the original design of the tunnel at Kowloon Southern Link to reduce the length of tunnel to be formed by cut-and-cover methods, initiating savings by reducing the quantity of construction waste and the associated emissions from transporting the waste, while reducing noise and traffic congestion. A waste management promotion campaign engaging the workforce also resulted in waste reduction and increased recycling. The Central Reclamation project in Hong Kong has also successfully reduced waste through extensive use of pre-cast concrete, thus avoiding waste normally associated with in-situ concrete construction. Saw-cutting methods were used to demolish structures to minimise impacts and the resulting materials were segregated for reuse or recycling. For plant-intensive projects such as Eagle s Nest Tunnel in Hong Kong, the selection of efficient and reliable plant and equipment is essential to ensure efficient production and good environmental performance. By selecting new plant and equipment meeting the latest standards and carefully maintaining them throughout the project, downtime, energy use and emissions were all reduced. 4

5 Environmental focus at PAFF The new aviation fuel supply facility augments the existing fuel supply to the Chek Lap Kok airport in Hong Kong International Airport which was built by Leighton Asia over ten years ago. The new facility will receive tankers direct from the refineries even from the Middle East of up to 80,000 tonnes. The first part of the project is a 575 metre long jetty with two berths, one for vessels up to 80,000 tonnes and the second for vessels up to 50,000 tonnes. Fuel will be offloaded along the jetty into a tank farm (another part of the project) with an initial capacity of 140 million litres of fuel. The fuel will be stored, certified and then pumped via a pair of submarine pipelines, 4.5 kilometres long, to a pair of existing pipelines (from an island at Sha Chau to the Airport) and then on to the existing aviation fuel facility on-airport. The client is ECO Aviation Fuel Development Ltd., a whollyowned subsidiary of the Hong Kong and China Gas Company Ltd. ECO has a franchise agreement with the Airport Authority Hong Kong to build this facility to provide fuel. The project is located in an industrial area but there is a unique feature environmentally - the jetty area is a habitat of the Chinese white dolphins. While the dolphins don t have any particular interest in our jetty they are particularly sensitive to underwater noise. In the construction of the jetty, hydraulic hammers are normally used to drive the piles which cause considerable underwater noise. On the existing aviation fuel facility project, ten years ago, Leighton used what was called a bubble curtain to reduce the noise. We have now gone one step further on this particular project and have developed a bubble jacket that is effectively a sleeve that goes over the outside of the pile. Compressed air is injected at the base of the pile and this has the effect of reducing the underwater noise. Considerable monitoring during a test phase prior to construction was undertaken to ensure that construction works were having as little impact as possible on the dolphins from the perspective of the underwater noise. Leighton is proud to be involved in a major project that requires such a sensitive approach to local marine life. The Permanent Aviation Fuel Facility project recently celebrated 1 million man-hours with no reportable accidents. The Hong Kong Airport Authority has presented a site safety award to the project for the third quarter 2008 in recognition of their outstanding performance. Contents 2 Attendees delight at 2009 Annual Dinner 4 Leighton Asia addresses its carbon footprint 5 Environmental focus at PAFF project 6 Staff acknowledged for outstanding milestone 7 Leighton encourages postgraduate education 8 Central initiatives mitigate environmental impact A new strategic approach at Safety Workshop 9 Link 200 JV makes substantial progress Leighton participates in environmental awards 10 Irwin Wan discusses UHG box cut project 11 Leighton awarded drainage scheme contract 12 Clean and green in Vietnam and Thailand Celebrations at Hong Kong s Ocean Park 13 Best practice benefits Masbate Project Leighton Holdings half year results 14 Inaugural Sustainability Report hailed a success Leighton Asia staff - we know what you are thinking 15 Young Macau artists produce 2009 calendar The MD s foresight 5

6 Staff acknowledged for outstanding milestone For the lucky ones, securing a job with the right company can provide a lifelong and very satisfying career. Such has been the case for three employees H. K. Wong, Paul Chung and C. S. Tsang - each currently celebrating 30-year anniversaries with Leighton Asia. For senior surveyor, H. K. Wong, commencing work with Leighton 30 years ago was a revelation in many ways. My first job with Leighton was working on site formation at Tsing Chung Koon in Tung Mun, explains H. K. Things have certainly changed a lot over the last three decades though. We used to calculate everything ourselves, but technology has changed all our lives for the better. Casting his mind back over the years, H. K. said that working on Central Reclamation has been the most rewarding project he has been involved with. We started work in 2003, and work is ongoing says H. K. Another personal favourite was working at Lam Tin in It was mountainous terrain and quite difficult to navigate through the trees and undergrowth, but the challenge was very rewarding. For graduates entering the industry, I would emphasise that surveying is a job that requires concentration and patience, says H. K. Any mistakes will cause big problems, so rechecking and counterchecking becomes a routine part of your life. For administration manager, Paul Chung, the position of management accountant based out of the former tiny Leighton head office in Aurora House, Central, was his introduction to the company. For me, the biggest change over the years was moving back to head office in 1996 after more than 10 years working on different sites, says Paul. It was a big adjustment for me at the time. When I look back over the last 30 years, the biggest change has definitely been the introduction of computers, as I used to do spreadsheets manually and communicate by memos and faxes. The most memorable project I have worked on in the last 30 years is the Brunei International Airport. I was the first local turned expatriate who was seconded by Leighton to this project and it was a wonderful experience. And Paul s advice for young graduates entering the industry and working for Leighton? Don t ask what Leighton can do for you. Ask yourself what you can do for Leighton. Construction manager, C. S. Tsang, started working with Leighton Asia as a sub-agent at Tai Po Industrial Estate in At the time, I had to manage all on-site activities with minimal resources, so each day was a challenge, says C. S. I have seen a lot of improvements in relation to safety standards over the thirty years I have been working here. Leighton Asia has always been an industry leader, particularly in terms of safety requirements and I am happy to see that both safety and environmental standards have improved so much over the years. I really do not have a favourite project that I have worked on over the last 30 years, as I have enjoyed all the projects that I have worked on, particularly because the teams have worked well together. For new graduates entering the industry, C. S. has a few words of advice: Work hard. It is not always easy to work in the construction industry, but the reward of seeing a job well done makes it all worth while. Left to right: C. S. Tsang, Paul Chung and H. K. Wong 6

7 Leighton encourages postgraduate education Leighton Holdings have developed a Leighton Masters Degree in Project Management, in conjunction with the University of New South Wales (UNSW). This joint undertaking is another example of Leighton s commitment to the development of our staff. We are very pleased to announce that two Leighton Asia staff members have been nominated to join the programme! Patrick Kwong and William Holden will commence their course of study in early The majority of the course is conducted via distance learning; however the two Hong Kong staff members will travel to Sydney Australia, twice per year to attend the residential component of the programme will be a big year for the two engineers; both Patrick and William have recently joined the Lai Chi Kok Drainage Scheme project team. Not only will they be busy assisting the team to successfully deliver the project, they will also have to find time to study for up to 10 hours per week to complete their course work and prepare for assessments. I m delighted that I have been nominated and accepted into the Leighton Masters Degree programme, enthused Patrick Kwong. I will be able to learn technical skills and gain international experience through this programme and I really look forward to the opportunity to interact and share experience with other Leighton colleagues from around the world. Likewise, I am also very pleased to have been accepted into the course, said William Holden. The partnership between Leighton and UNSW is exciting, and I look forward to gaining greater exposure to the Australian operations and other Leighton Holdings employees. As I am an Australian, I also look forward to visiting my home country more often. What a great experience for both of these Leighton Asia staff! We expect to see some late night studying and collaboration at the Lai Chi Kok project between Patrick and William, particularly when assignment deadlines are approaching. Background and purpose Left to right: Patrick Kwong and William Holden Leighton has identified a need for targeted postgraduate education to develop the management skills of its professional staff, in particular the need for a corporately identified postgraduate degree programme in project management. Through discussions between Leighton and UNSW, both parties have agreed to deliver a collaborative postgraduate degree programme entitled The Leighton Masters Degree in Project Management, existing within UNSW Master of Engineering Science framework. UNSW has a long track record of industry relevant courses that provide technical knowledge, improved professional performance and enhanced career prospects. The structure of the Masters programme involves distance study together with a face-to-face residential component of one week s duration each semester in Sydney, Australia. Leighton will make up to 30 places available annually, to be shared across all Leighton Companies. A large number of highly capable Leighton Asia employees expressed an interest in joining the Masters programme in Leighton Asia hopes to enrol at least one student each year. The development of our employees is a key priority for Leighton Asia and we are excited to be involved in this Leighton Masters Programme. We will be progressively outlining future training and development opportunities for Leighton Asia employees. 7

8 Central initiatives mitigate environmental impact The HK$3.8 billion Central Reclamation contract to form 18 hectares of additional land has been one of the most high profile projects ever awarded in Hong Kong. The project is being undertaken by Leighton Asia in a joint venture with China State Construction Engineering (Hong Kong) and Van Oord ACZ. The environmental challenges faced in relation to this project have been many, including reclamation works in sensitive areas, managing construction waste from demolition works and nuisance abatement to reduce any potential impacts to an acceptable level. As the appointed contractor, Leighton Asia has been particularly careful to adopt international best practices when carrying out our works to manage the environmental aspects under our control. As a result, Leighton has initiated many initiatives, including a green leadership programme, which involved proactive engagement with our subcontractors, including extensive training for 7,200 workers. The project team has also maintained the Gold WasteWi$e logo throughout the period for its initiatives in waste management and continues to participate in industry award schemes. The scale of our operations in an urban environment has required careful management to protect the environment. Pre-cast concrete was used for all major structures, which were installed during off-peak hours to avoid disruption. Extensive use of silt curtains and screens has prevented marine water impacts, while permit-to-work systems ensured compliance with our legal obligations. This project has allowed Leighton to demonstrate that with the application of our core values that even the most challenging environmental considerations can be met and even exceeded. A new strategic approach at Safety Workshop In October 2008 Leighton Asia held a full day Safety Workshop entitled New Strategic Approach to be the best performers in Asia attended by project directors and project managers in Hong Kong and Macau. Three guest speakers were invited to share their professional safety experiences at the workshop. The guest speakers were Mr. Darryl Gray - DNV consultant; Mr. Stephen Howarth safety manager of MTR Corporation and Mr. Yu Pak Kuen senior safety consultant from Occupational Safety & Health Council. The information sessions presented during the first half of the workshop generated many ideas and insights into what we can do better. A group discussion was the focus of the afternoon session. During the workshop, the participants were organised into three separate groups; the small groups listed many recommendations on how to improve current safety standards and procedures. In closing the workshop, executive general manager Hong Kong, Macau, China and Taiwan, Ian Edwards, thanked everyone for their significant contribution. 8

9 Link 200 JV makes substantial progress The Kowloon Southern Link project is situated in one of the most vibrant parts of urban Kowloon in Hong Kong, and Link 200 Joint Venture has put great efforts into minimising the nuisance caused to the nearby community. In tackling the construction noise issue, the Joint Venture has designed and commissioned numerous noise enclosures around its plant, most notably the full enclosure for at the launching shaft to enable 24 hour working during the tunnel boring operations. The enclosure had a hydraulically operated roof, which opened when segments and other materials were being delivered into the tunnel, and remained closed during boring operation. The Joint Venture s enclosure was very compact, requiring much less material and was simple to operate, whilst still maintaining good sound insulation properties. On the principle of good waste management, excavated material was retained as far as possible for future backfilling. As the traditional stockpile coverage by tarpaulin was found to require regular maintenance, the Joint Venture hydro-seeded the 10,000 cubic metre stockpile as a dust suppression measure. Haul roads were also watered at least twice a day with recycle site runoff. The project has recently celebrated 1.2 million man-hours without lost time injury. All key project milestones to date have been met, with the works scheduled to be substantially complete in March 2009 and the project opened later in the year. Leighton participates in environmental awards As part of our performance improvement strategies in Hong Kong, Leighton Asia has participated in a number of environmental award schemes. These enable us to showcase the performance of our projects, benchmark ourselves against other contractors and, when successful, gain recognition for our achievements. In 2008 three of our Hong Kong projects, Kowloon Southern Link, Central Reclamation and the Permanent Aviation Fuel Facility, participated in the Hong Kong Awards for Environmental Excellence. All three were successful in proceeding to the second stage of the award where each project site was visited by the independent assessment team to look at initiatives we have taken and site performance. The assessment team looked at our performance according to: Green leadership, including commitment, policy, organisation and resources, environmental communications, and training and managing for continual improvement Programme and performance, including regulatory compliance, programme implementation, air pollution, indoor air quality, water pollution, waste management, energy conservation, noise control, housekeeping and other environmental concerns Partner synergy, including communication with the community and influencing our stakeholders The assessors left us having experienced unique and environmentally friendly aspects of our operations, such as tunnelling in an urban environment at Kowloon Southern Link and protecting the white dolphins from noise at Permanent Aviation Fuel Facility. Short-listing of projects for the award is ongoing and the winners will be known in February. A number of Hong Kong projects and Head Office have also joined the WasteWi$e and EnergyWi$e label schemes, for which reduction targets and other initiatives are set and agreed with the organisers. By achieving those targets within a twelve-month period we will be awarded the label in recognition. Whatever the final outcome, these award experiences will set us in good stead in meeting our core value to protect the environment. 9

10 Project manager, Irwin Wan discusses UHG box cut project As a member of Leighton Asia s mining team, my involvement with the Ukhaahudag (UHG) project in Mongolia began during the tender submission stage in June Our client, Energy Resources LLC, awarded us with a 3 month box cut contract in September 2008 for the commencement of mining in October The contract was to mine 485,500 bank cubic metres of overburden within a time frame 3 months. Mongolia presented major challenges to our site based team. Even though I had previously worked for Leighton in Australia, Hong Kong and the Philippines, Mongolia was an eye opener in terms of climatic and living conditions and the uniqueness of the Mongolian culture. With frequent dust storms, desert dry climate, difficult logistics, limited infrastructure and temperatures reaching minus 30 degrees, we worked closely with the client to overcome many challenges of this unique greenfields project. We spent the beginning weeks drafting plans, designs and methods on how to tackle the project effectively. Together with Energy Resources, we introduced site specific HSEC management plans that would meet both Mongolian and international standards. Whether providing a safe and fulfilling work environment for our people, making responsible decisions about the environment or providing lasting community benefits, at the UHG project we are committed to continuing and strengthening our focus on safety, health, environment and the community. At the end of December 2008, UHG looked and operated as a first class international standard mine. We finished a 92 day project 21 days early with no injuries or any major HSEC incidents. By working together as a team, training our Mongolian operators with international standards and operating closely with our client we were able to successfully complete this challenging and memorable project early, under the estimated budget and with a flawless HSEC record putting Leighton in a favourable position to continue a longer term mining contract with Energy Resources. When you leave - turn me off! Leighton Asia aims to use resources efficiently. As such we encourage all of our staff to save energy whenever possible. This Save Energy sticker is used throughout our offices to remind staff to turn off the lights whenever they are not in use. 10

11 Leighton awarded drainage scheme contract Leighton Asia has been awarded a contract for the design and construction of the Lai Chi Kok Transfer Scheme by the Hong Kong Drainage Services Department. The project, worth A$260 million, provides for the design and construction of two storm water drainage tunnels with a total length of 3.7 kilometres and an internal diameter of 4.9 metres. The work also includes six intake shafts, a stilling basin, an outfall structure and approximately 270 metres of three metre internal diameter connection adits. The Lai Chi Kok drainage tunnel will capture rainwater from the upper catchment in West Kowloon and discharge it into Victoria Harbour to alleviate flooding of the low lying, highly developed areas of Kowloon. Work commenced in November 2008 with anticipated completion in As part of the contract, Leighton Asia will implement the environmental management system for the Lai Chi Kok Transfer Scheme, which will provide a robust framework to effectively manage the potential environmental impacts that may arise during the works. The system has been used in Hong Kong for ten years. On general nuisance abatement, we will provide a highly experienced team who are used to tunnelling in the urban areas of Hong Kong, use a slurry tunnel-boring machine, which will alleviate dust impacts, avoid the need for locomotive use, reduce noise from spoil removal activities and replace diesel power with electric power for plant and equipment whenever possible. In relation to noise, we will provide noise enclosures for static plant and equipment, such as for the slurry treatment plant and compressors; provide noise barriers and make use of quiet plant; optimise plant numbers and avoid concurrent working through the use of permit-to-work systems; minimise restrictedhours working and provide best practical means when such works are necessary such as providing acoustic covers over shafts. Moreover, we will design and implement comprehensive site drainage systems, including associated maintenance regimes to ensure their continued effectiveness and provide silt curtains when working on the seawall and associated works. A full range of mitigation and operational measures will be implemented for the project. Some of the key aspects and proposals to manage them are as follows: In relation to waste avoidance, reduction, reuse and recycling, we will reuse surplus materials, retain existing structures for the M1 decked channel under our alternative scheme, which will reduce waste and alleviate secondary noise and air pollution impacts, maximise use of steel formwork and pre-cast elements such as for the tunnel invert, dispose all waste chemicals and chemical containers in a responsible manner. 11

12 Clean and green in Vietnam and Thailand Acknowledging the need to protect and maintain the environment, in September 2008 Leighton Vietnam and Thailand launched a battery recycling programme across the region, incorporating both offices and projects. It is envisaged that the initiative will become standard operating procedure. simply discarded with normal office waste, and then disposed of in landfills where there was the potential for hazardous toxic leaching over time. Additional recycling programmes have also been initiated for scrap metal and timber, and the recycling of aluminium cans is listed as the next item for discussion regarding the recycling programme. It is also hoped that this initiative eventually results in further employment opportunities for locals. The initiative is intended to send a message to all staff that they too can actively play a part in living our Leighton values by using the disposal facility and by spreading the message to workmates and colleagues. The collection boxes allow all staff and workers to dispose of exhausted batteries from both their homes and the office. Collection boxes have been established and are prominently displayed inside offices and on sites with promotion via advertising campaign and team talks. Feedback has been very positive with collection boxes filling up. Batteries will be disposed of by an authorised waste disposal company, as opposed to previous practices which saw batteries Celebrations at Hong Kong s Ocean Park Leighton Asia recently celebrated the contract award for the Ocean Park Master Redevelopment Project. The works include the development of the Entry Plaza, Aqua City and Grand Aquarium as part of the theme park s ongoing expansion programme. Leighton Asia managing director, Hamish Tyrwhitt and chief executive of Ocean Park Corporation, Mr. Tom Mehrmann led the Bai Sun joss stick burning ceremony held at Ocean Park in January. Following the joss stick ceremony, they performed dotting the lion eyes which signalled both the commencement of a traditional Chinese lion dance and the day s celebrations. Hamish Tyrwhitt said, We are excited to work with Ocean Park on this landmark project. The award of this contract continues to drive Leighton Asia s work in hand to record levels. Construction works at Ocean Park commenced in August 2008 and during the project, 10,000 tonnes of reinforcement steel will be installed and 65,000 cubic metres of concrete will be poured. The project is scheduled for completion in November

13 Best practice benefits Masbate Project Early identification and management of risks at a project, business or company level is critical to our success. In line with this, Leighton promotes a culture in which everyone takes responsibility for health and safety by being aware of their surroundings and any unusual occurrence. The Masbate EPC Gold Project stands is a leading example of what can be achieved when best practice is observed and implemented in relation to occupational health and safety management. From July 2007 to December 2008, the Masbate project in the Philippines worked continuously for over 3 million man-hours without lost time injury. Leighton reports increased operating profit and work in hand at record A$37.5 billion Leighton Holdings Limited, in releasing its half-year result, has announced a 20% increase in pre-tax operating profit before impairments to A$387 million, but a 56% decrease in after tax Group profit to A$111 million due to the recognition of A$239 million of pre-tax asset impairments. A fully franked dividend of 60 cents per share was also announced versus a 50% franked interim dividend of 60 cents last year. Chief executive, Wal King, said that he was disappointed to report a fall in profit which was due to the write down of investments in ConnectEast, RiverCity Motorway, BrisConnections, Devine and Macmahon announced in January, and a reduced property development contribution. Total revenue, including joint ventures and associates, was up 40% to A$9.1 billion (A$6.5 billion last year), while revenue from joint ventures and associates increased by 48% to A$2.6 billion. The Group s major markets generating revenue were infrastructure A$5.2 billion, resources A$2.5 billion and building and property A$1.5 billion, said Mr. King. Work in hand as at 31 December 2008 stood at A$37.5 billion, which compares with A$30.3 billion at 30 June 2008 and A$26.7 billion at 31 December The order book was boosted by the award of some A$14 billion worth of new work, extensions and variations during the period. The Group s longer-term outlook remains solid based on a record level of work in hand, a strong competitive position and a forecast rebound in the Group s core markets from the current uncertainty of the global financial crisis. While the timing of recovery in the various markets will vary, the long-term outlook is positive and the Group is well positioned to take advantage of the opportunities that will be presented. The outlook for commodity volumes remains positive despite a substantial reduction in prices. While recent cutbacks have been announced by some iron ore and coal producers, the fundamentals for long term growth, and therefore for the Group, are sound. In Mongolia, Leighton Asia secured a preliminary mining contract for the Ukhaakhudag coal project and has recently been awarded a A$350 million mining contract over 6 years to remove overburden and mine coal. The Group further strengthened its financial position during the period with the successful completion of a A$700 million equity raising in September 2008 and a US$280 million private placement. The majority of the funds are being used to invest in plant and equipment which will primarily be used in the contract mining activities in Australia and Indonesia. As at 31 December, total assets were A$7.8 billion and net assets were A$2.4 billion. Gross cash is A$800 million with short-term borrowings of A$183 million. Limited recourse borrowings stand at A$772 million and undrawn facilities and guarantees were up to A$989 million, said Mr. King. For the 2009 financial year the Group expects to report full year revenue approaching A$19 billion and a good underlying operating result after tax of approximately A$650 million. The Group is forecasting to report net profit after tax of approximately A$480 million, which includes the write down of investment values already recognised and to maintain the full year dividend at the same level as last year. The final result and full year dividend are however subject to market conditions for the remainder of this financial year. 13

14 Inaugural Sustainability Report hailed a success The Leighton Asia Sustainability Report covers the period from July 2007 to June 2008 and documents our company philosophy and record to date in relation to sustainability and best practice. We conduct our business with a focus on sustainable practices that we define as meeting the needs of the present without compromising the ability of future generations to meet their own needs. We believe that openly reporting our sustainability performance promotes improved performance against all our business indicators. Sustainability is not just about financial results, it relates to the way we conduct business with respect to the environment and the communities in which we operate. Leighton Asia s core values underscore our corporate culture, guiding the way we relate to our people, business partners and clients, as well as differentiating us from other organisations. They also create a desire for people to want to work with us. Observance of these values also promotes the ongoing commitment we have to communities across the region. Sustainable business practices will increasingly become the mantra of all corporations desiring continued growth and productivity and continued profitability for stakeholders. Leighton Asia proudly stands by its record of achievement and continued sustainable business practices. This report is another Leighton Asia milestone and a record of our sustainability performance to date. Sustainability Report 2008 Leighton Asia staff - we know what you are thinking Leighton Asia has grown into a sizeable business; we have offices and projects in Hong Kong, Macau, Beijing, Thailand, Vietnam, Cambodia, Mongolia and the Philippines. In addition to being large we are also diverse. We have 2,500 salaried staff that speak a number of different languages, come from different racial and cultural backgrounds and enjoy different living experiences in our various home countries. Yes we certainly have local knowledge and international experience. Whilst we all have something in common; we love our chosen industry of construction and mining, we are also very different. The Leighton Asia management team wanted to gain an insight into what our people think. Why do they enjoy working for Leighton, what do they think of our values, what parts of their jobs gives them the most satisfaction and also what parts of their jobs or the Company could be improved. We also wanted to know whether our employees views were dramatically different in different parts of the Company. In order to gather this type of information and also get feedback regarding the recent changes to the Company, the best method of communicating with our employees and other useful information to assist with the improved management of our Company, it was decided that Leighton Asia would conduct a confidential survey. This first staff survey was launched in October Employees were able to respond to the 83 questions using an online survey tool or complete a paper based survey that was translated into 4 different languages. We were keen to get as many people to respond as possible. The survey was independently conducted by the Hong Kong Institute of Human Resource Management (HKIHRM). Over 70% of our staff members completed the survey, which HKIHRM considered to be a good level of response for a first time survey. The survey results indicate that Leighton Asia employees are embracing and support the Company values. We like working for Leighton and would recommend Leighton as a very good place to work. We are proud of our Company s commitment to environmental initiatives, occupational health & safety and quality and we are proud to work for Leighton. Naturally there was some feedback about items that could be improved and where possible Leighton management will implement changes to address the feedback we have received. Lookout for more detailed feedback about the survey results in the next few weeks at your office or project. A follow up survey will be conducted later in 2009! Leighton survey quick statistics. 94% of Leighton employees agree that occupational health & safety is a high priority at Leighton 94% of Leighton employees consider that Leighton is respected by our clients and other external stakeholders and we are a good corporate citizen More than 90% of Leighton employees are proud to be working for Leighton Asia More than 80% of Leighton employees consider that the future performance of the Company will improve as a result of the recent changes that have been introduced 14

15 Young Macau artists produce 2009 calendar Staff children recently submitted their own wonderful works of art reflecting the beauty of Macau for inclusion in the Leighton- China State Joint Venture (LCSJV) 2009 calendar. The LCSJV Wynn project team have now been in Macau for four years and to celebrate this, staff children for whom Macau has become a significant part of their lives were invited to submit their paintings and drawings to be included in the LCSJV 2009 calendar. The works, each produced in vibrant colours reflected many well known Macau landmarks from the perspective of the junior artists, have resulted in one of the most exciting corporate calendars ever! Finalists from the Leighton-China State Joint Venture (LCSJV) family attended a prize giving ceremony at the Macau project office in November Mike Clarke, project director, presented the three age group winners and runners-up with hot off the press LCSJV calendars illustrated with all the artists works, as well as special certificates and prizes. Congratulations to all! As we enter this new year, we are all becoming increasingly aware of the negative impact that we are having on our planet thanks to the increasingly dire warnings being vocalised by scientists around the globe. Already acknowledged as an environmentally conscious company, Leighton Asia recently launched its first sustainability report Building a sustainable business through living our values. The report documents our efforts in conducting our business by meeting the needs of the present without compromising the ability of future generations to meet their own needs. Protecting the environment is one of our core values at Leighton Asia and a critical element of our approach to sustainability. Leighton Asia also aims to use resources efficiently, to recycle where possible and to train our people to be considerate of the environment. As a result, we have initiated environmental protection efforts in relation to the Lai Chi Kok project site, the placement of a bubble curtain to protect Chinese white dolphins from harmful noise pollution, and have been recognised for our efforts in relation to the environment by being selected as a current contender for the Hong Kong Award for Environmental Excellence. We must all bear some responsibility for the world we live in and the global environment that our children will inherit. Nowhere is this more apparent or more urgent than across the Asia region. At Leighton Asia we encourage our people to be aware of the issues affecting our environment and to take positive actions both at work and at home. Let s all ensure that we think before we act and when we do act, that it is in an environmentally responsible manner. Needless to say, our children and their children will thank us in years to come! Hamish Tyrwhitt Managing Director Leighton Asia 15

16 This issue s featured value is: Protect the environment. Our core values define our corporate culture and direct how we behave. The behaviours associated with this value are: to reduce our carbon footprint, use resources efficiently, minimise our impact on the environment, recycle and train our people. Our other core values are: Be commercially competitive Act with integrity and fairness Provide a safe and healthy workplace Create a fun, challenging and performance driven culture Recognise the needs of the community Encourage innovation and technological leadership 16 Leighton Asia Limited