Singapore Supplement for Sustainability Report 2011

Our strength is our peopleSustainability

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Executive Directors Message

This supplement to our group report highlights the sustainability achievements in our Singapore business. Looking back on 2011, I am pleased to say we have continued to make good progress in sustainability.

I am proud that we have maintained our strong commitment to ensuring high standards of safety on our construction sites. Our performance is comparable to that of the petrochemical industry, and we have received many accolades and awards in recognition of our achievements, both here and internationally, including from Government agencies.

In terms of the environment, we have performed well. We were one of the few contractors promoted to the Star category in 2011 - the highest tier of award - in the BCA Green and Gracious Builders scheme. Our site offices are now comparable to commercial offices, with many environmentally-friendly practices in place, and we are extending our view to reducing energy in operations.

In the coming year, we will look to do more in the areas of productivity and social responsibility. Our people and culture will remain vital to our success, ensuring we continue to innovate and to deliver the high standards our customers expect.

Jon ButtonExecutive Director

Singapore Supplement for Sustainability Report 2011 3

Prosperous Markets

Driving productivity through innovationProductivity is one of the key elements in our business strategy to ensure we remain competitive and deliver best value for our clients. This year we have experienced high productivity gains through innovative designs and by implementing new construction methods, maximising project-based productivity gains in the early stages of the value chain.

Our annual Gammon Innovation Competition received some excellent submissions that have not only been successfully implemented on Gammon projects, but have also received Innovation and Best Practise awards from the Industry.

Building Information Modelling (BIM)Investment in BIM in 2011 has enhanced our corporate capability in this increasingly important technology, which can enhance a projects environmental friendliness and construction efficiency.

Top left: M&E Service Simulation; top right: Structural Work Simulation; and bottom: Architectural Perspective.

Green Buildings - LEED (Leadership in Energy and Environmental Design) and Green Mark

2011 saw us further enhance our green building capability, helping us to support Singapores target of becoming a sustainable liveable global city.

Building on our achievement in the BCA Green Mark scheme, we were appointed this year as the contractor for the foundation and structural works of a LEED building - Singapore Innovation Centre. Leveraging Gammons experience in LEED projects in Hong Kong we are confident in our capability to deliver LEED building projects in the local market.

Construction Productivity Awards Best Practices & Innovation, PlatinumUsage of the precast retaining wall to expedite the construction of Chinatown station & tunnels roof slabs for Downtown Line Phase 1

Construction Productivity Awards Best Practices & Innovation, GoldPositioning device developed at Mole project for rock probing

Construction Productivity Awards Best Practices & Innovation, GoldPipe work modularisation

Construction Excellence AwardsProposed Gateway Avenue Roadworks Diversion for Resorts World at Sentosa

Construction Productivity Awards, Value-Added Productivity Best VAP BuilderGammon Pte. Limited

Design and Engineering Safety Excellence Award, BuilderGammon Pte. Limited, Boardwalk Vivocity to Sentosa

By leveraging the Governments generous Construction Productivity and Capability Funding, we have been able to recruit and train a specialist BIM team, who are equipped with the latest software.

Gammon is rapidly growing its BIM capability in Singapore and is currently using BIM on a number of its projects and tenders.

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Ensuring safety on site: multi-layer protectionWhen it comes to safety, we take no chances. We implement a multi-layer safety protection scheme throughout the whole construction process - from design to construction - in order to prevent accidents.

Critical Parts Inspections (CPI)For our Critical Parts Inspections, we go further than the statutory requirements.

Before any machinery and equipment under the CPI list is allowed to operate on site, it is thoroughly inspected by the critical part inspector. Our checks cover a variety of machinery and equipment, including tower and crawler cranes, piling rigs, excavators, fork-lift trucks and generators.

Zero Harm Training CentreSince 2006 all workers and supervisors, including subcontractors, are required to attend a half-day safety course before they commence work on Gammons sites. This is held at our Zero Harm Training Centre, where the orientation course includes both theory and practical, as well as a test. Each attendee must pass the course before being issued with a Zero Harm pass.

Performance and Achievements2011 statisticsZero fines, Zero Demerit points and Zero Stop Work Order from Government Authorities, on all our projects.

Accident Severity Rate, Singapore per millon manhours worked

2009

16.2

246

2010

9.9

223

151

2011

7.8

Gammon (include JV)Industry

Accident Frequency Rate, Singapore per millon manhours worked

Gammon (include JV)Industry

2009

0.21

2.7

2010

0.23

2.2

1.6

2011

0.19

5 Workplace Safety and Health Performance Awards from WSH Council

SHARP Award Downtown Line 1, MRT Chinatown Station SHARP Award Upgrading of Woodsville InterchangeSHARP Award Removal of Underground Obstructions at Marina SouthWSH Performance Award - Gammon Construction Limited Singapore BranchWSH Practices Award Downtown Line1, MRT Chinatown Station

4 RoSPA Gold Awards from the Royal Safety Society for the Prevention of Accidents (UK)

Gammon Construction Limited Singapore Branch / Gammon Pte. LimitedDowntwon Line 1, MRT Chinatown StationUpgrading of Woodsville InterchangeRemoval of Underground Obstructions at Marina South - Phase II

2011 Safety Awards:

Zero Harm

In 2011, our Zero Harm Training Centre trained 4,200 personnel.

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Environmental Stewardship

Eco OfficesGammon is the first contractor in Singapore whose worksite offices have received the Green Office certification from Singapore Environment Council. The certification is intended for commercial offices, yet Gammon has succeeded in raising its site offices design and operations to a standard that is comparable to an environmental-friendly commercial office.

Four Gammon worksite offices have so far been Green Office certified, with more expected in the future.

Green and Gracious Site: MRT Chinatown Station and Associate Tunnels at Downtown Line, Phase 1MRT Chinatown station is a show-case project, demonstrating Gammons green and gracious practices.

Activities:Reducing vibration through the use of power cutting machines for diaphragm wall construction.Reducing noise through extensive use of mobile noise barriers.Reduction in site lighting through the conduct of an energy study, reducing energy consumption by 50%.

The project was also the winner of the LTA Construction Environment Excellence Award Mega Category (>$50m).

Green Office CertificationDowntown Line 1 - MRT Chinatown Station Project Site OfficeMole 2 Project Site Office at Marina BayUpgrading of Woodsville Interchange Project Site OfficeSentosa Board Walk Project Site Office

Green and Gracious BuilderGammon was proud to be one of only a few contractors to be promoted to Star status; the highest tier of award in the BCA

Green and Gracious Builder Scheme in 2011. Star status recognises progressive builders who deliver outstanding performance in adopting environmentally-friendly practices and minimising the negative effects of construction for people living near the worksites.

The scheme has been adapted for operations in Hong Kong under Gammons Green & Caring Site Commitment Scheme.

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Social Responsibility

Gammon Sports Day in July 2011Our Sports Day was held on a beautiful Saturday morning at our recently completed ITE College West Sports Complex. 150 Gammon Staff enjoyed the friendly competitions in basketball, table tennis, street soccer, captions ball, running relay, and took part in various team building activities.

Charitable Activity - MINDSETMINDSET is a registered charity supported by our shareholder, Jardine Matheson, with the goal of making a difference in the area of mental health. It aims to change peoples attitudes by raising awareness and understanding of mental health issues, as well as providing direct assistance for individuals, families and organisations in need of help.

Gammon Singapore is a strong supporter of MINDSET. Our Executive Director, Jon Button, sits on the Steering Committee, while two other staff members are Jardine Ambassadors. This means that they volunteer in, and help to drive, the Groups charitable activities with MINDSET.

Gammon Singapore actively participated in MINDSET activities last year, including:

Holding a Lunar New Year party for 60 long-stay patients at the Institute of Mental Health.Providing two day trips for out-patients to Sentosa and Singapore Science Park.Holding a road show at City-Link mall to showcase the artistic talents of mental health patients, and to promote their acceptance by the society.