ugl corporate profile
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2 UGL Limited
Corporate Profile
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Corporate Profile | UGL 1
UGL is a diversified services company delivering critical assets and essential services that sustain and enhance the environment in which we live.UGL provides end-to-end outsourced engineering, construction, asset management and maintenance services with a diversified end-market exposure across the core sectors of rail, transport & technology systems, power, resources, water and defence.
We partner with some of the some of the world’s largest blue-chip companies, government agencies, private enterprise and public institutions, providing end-to-end outsourced engineering, construction, asset management and maintenance services.
The complementary nature of our capabilities means we offer our clients highly specialised solutions to develop or enhance their asset’s performance over its entire life cycle. We deliver a broad range of services and whole of life solutions for diverse industries, providing our clients with access to world-leading sustainable and innovative technologies.
UGL’s services are underpinned by a track record that spans over 115 years.
Today we employee over 7,700 people, with annual revenue in excess of $2.2 billion across Australia, New Zealand and South East Asia.
For further information, visit:
www.ugllimited.com
Operational & Financial Snapshot
Five-year Summary 30 30 30 30 30 JUNE JUNE JUNE JUNE JUNE 2010 2011 2012 2013 2014
Operating Revenue ($m) 4,359.1 4,583.6 4,803.0 4,247.0 4,511.5
EBITDA ($m) 275.8 296.4 265.9 195.1 185.8
Net operating cash flow ($m) 229.4 150.6 111.0 105.6 62.1
Underlying Earnings per share (CPS) 91.7 99.0 101.3 55.4 67.1
Dividends (CPS) 64.0 70.0 70.0 39.0 NIL
Gearing (%) 16.8 13.2 27.1 34.2 32.6
Capital expenditure ($m) 46.8 51.4 68.0 92.0 64.2
UGL is listed on the Australian Securities Exchange (ASX: UGL) and is a Top 200 ASX listed company by market capitalisation. For the 2014 financial year, UGL delivered an underlying net profit after tax of $62.1 million on underlying operating revenue of $4.5 billion.
2 UGL | Corporate Profile Corporate Profile | UGL 3
Group Financial Highlights• Underlying net profit after tax of $92.1 million1 and underlying EPS of 55.4 cents per share1
• Reported net profit after tax of $36.5 million and reported EPS of 21.9 cents per share, which includes the impact of restructuring costs, rebranding and underperforming power projects
• Operating revenue of $4.2 billion2
• DTZ delivered a record revenue contribution and its eleventh consecutive year of earnings growth
• Rail operations performed solidly due to its market leading position
• $4.3 billion in new contract wins and extensions
• High quality $8.3 billion order book supporting outlook
Operating Revenue1 ($m) Underlying NPAT2 ($m) Underlying EPS2 (cents)
Order Book1 ($m)DPS (cents) Operating Cash Flow ($m)
Key Financial Summary
1 Includes UGL’s share of joint venture revenue2 Adjusted for restructuring costs, DTZ separation costs, amortisation of acquired
intangibles, gain on sale of property and release of DTZ pre-acquisition provisions
2H
1H
2H
1H
FY10 FY11 FY12 FY13
2H
1H
151.1
164.4168.3
91.5
111.7
91.7
99.0 101.3
55.0
67.1
FY14 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14
4,803.0
4,247.04,511.5
4,359.14,583.6
2H
1H
229.4
150.6
111.0 105.6
62.1
9,062
8,220
9,626
8,331 8,149
FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14
70
39
Nil
64
70
The above Operational & Financial Snapshot includes DTZ, pre separation.The above financials and graphs are sourced from UGL’s Annual Report 2014.
Corporate Profile | UGL 5 4 UGL | Corporate Profile Corporate Profile | UGL 5
Our end-to-end delivery model
Our projects, services and expertise are readily transferable; bringing our clients a unique breadth of knowledge and expertise.
Our Services
We provide high-value add services in outsourced engineering, construction, asset management and maintenance services including:
• Engineering
• Construction
• Fabrication
• Manufacturing
• Commissioning
• Operations
• Maintenance
• Supply Chain & Technical Services
• Refurbishments & Upgrades
• Decommissioning
• Asset Management
• Project Delivery & Implementation
UGL is a leading provider of engineering, construction, asset management and maintenance services with a diversified end-market exposure across the core sectors of rail, transport & technology systems, power, resources, water and defence. Our operations provide innovative and sustainable technology-based solutions to optimise the value and performance of our clients’ operating assets.
UGL provides government agencies and corporations with the technical engineering capability to deliver essential services through all phases of an asset’s life. Our whole of life delivery model supports both critical economic and social assets from the initial design and construction to the end of the asset’s life cycle. Our approach to asset delivery and management ensures an asset’s performance is optimised and enhanced over this entire period.
By partnering with UGL, clients are able to leverage our enduring technology and industry partnerships, gaining access to world leading technology and best practice engineering solutions.
Corporate Profile | UGL 7 6 UGL | Corporate Profile
India
China
Australia
Malaysia
Malaysia
New Zealand
Townsville
Hong KongKolkata
Mackay
Gladstone
Newcastle
Auckland
Sydney
Melbourne
Ballarat
Adelaide
Perth
KualaLumpur
Singapore
Henderson
Corporate Profile | UGL 9 8 UGL | Corporate Profile
Key Operational SitesKOLKATA, INDIAUGL’s industry leading Joint Venture with India-based Texmaco provides cost effective, high quality, high precision, steel fabricated components for industrial and equipment manufacturers. For the rail sector, product lines include bogie frames, cabs, platforms and headstocks for passenger and freight rolling stock (diesel electric locomotives, electric locomotives, electric multiple units, coaches and wagons), and flat packed container and other specialist rail wagons for both Indian and international markets. UGL also fabricates components for equipment required for oil and gas, minerals and metals, aviation, shipping, construction, materials handling, defence, water and power sector applications.
KUALA LUMPUR, MALAYSIAAcross Malaysia our team delivers expertise in the field of municipal water, demineralisation and industrial waste treatment, and provides process design, engineering and construction for a wide range of treatment systems such as membrane systems, ion exchange, industrial waste treatment, sewage and potable water. UGL also has expertise across the oil and gas and, minerals and metals industry, having successfully completed the engineering, procurement and construction management contract for the Lynas Advanced Materials Plant in Malaysia.
SINGAPOREUGL’s South East Asian teams have extensive experience in the field of municipal water, demineralisation and industrial waste treatment, and are able to provide process design, engineering and construction for a wide range of treatment systems such as membrane systems, ion exchange, industrial waste treatment, sewage and potable water. UGL also has strong experience and expertise in the development, integration, testing, and commissioning and project management of complex real time control systems.
TSEUNG KWAN O DEPOT, KOWLOON, HONG KONGUGL entered into a contract with Hong Kong’s MTR Corporation in 2002 to maintain 120 trains operating on the 1,500 Volt DC powered Tseung Kwan O (TKO) line. The TKO Maintenance Contract is for 1st line and 2nd line maintenance and cleaning of MTR Corporations railcar fleet operating out of the Tseung Kwan O Depot and Kowloon Bay and the cleaning, maintenance and security of the depot and associated equipment.
KESWICK, ADELAIDEThe Keswick maintenance centre is located at the Keswick passenger terminal, Adelaide. Keswick is a purpose built facility to complete minor servicing to the Great Southern Rail’s fleet of interstate passenger trains including The Ghan, Indian Pacific and the Overland.
EAST VICTORIA PARK, PERTHUGL’s Steelplan capability provides structural steel detailing and 3D modelling services to the resources, industrial and commercial sectors, assisting across all phases of projects. Working closely with designers, Steelplan can commence detailing before the design is complete, providing clients with a 3D steel model of the site that seamlessly integrates a variety of disciplines, showing interaction of piping, concrete, electrical systems and fire services.
HENDERSON, WESTERN AUSTRALIALocated within the heart of the Australian Marine Complex (AMC) this facility is strategically positioned within 1km of the supply wharf enhancing UGL’s ability to deliver offsite modular assembly units for oil and gas, mining and mineral processing, chemicals and industrial processing clients. UGL’s Henderson facility is certified to ISO3834 and provides reactive maintenance support.
BASSENDEAN, PERTHUGL’s facility is a major locomotive supplier to Pilbara iron ore companies for both new and rebuilt locomotives, with capability to deliver railway products, dump-trucks, general engineering, fabrication and machining. It also provides an extensive range of refurbishment and overhaul services, support for materials handling and processing, oil and gas production equipment as well as maritime repairs and maintenance of railway bogies.
BELMONT, PERTHUGL’s Belmont operations provide rail system solutions for both government and resources based clients. Capabilities include the installation, testing, commissioning, first line maintenance (people in the field performing routine maintenance tasks) and second line maintenance (workshop repairs and overhauls) for signalling and train control equipment.
SPOTSWOOD, MELBOURNESpotswood maintenance centre is a dedicated full-service facility for the maintenance of Pacific National’s 119 UGL designed and built Cv40-9i diesel electric locomotives. The Cv40-9i locomotive is a 4,000 horsepower locomotive specialised for heavy haul and high-speed freight applications.
METRO TRAINS, MELBOURNEIn November 2009, UGL in a consortium known as Metro Trains Melbourne, secured the contract to operate and maintain Melbourne’s metropolitan passenger train network. This includes the maintenance of more than 900 passenger rail cars, and the integrated infrastructure and rolling stock asset management.
TOWNSVILLETownsville is a manufacturing and service centre which contains a range of metal cutting, forming and welding equipment to fabricate components in mild steel and stainless steel. Additionally, component overhauls are carried out on minor engine components, gearboxes, pneumatic and hydraulic components.
MACKAY Through our Mackay site, UGL offers comprehensive asset management, outage management and execution, and industrial maintenance services. Facilities include mechanical and electrical workshops and warehousing, set over 3.2 hectares; 8,000 m2 workshops with overhead cranage to 40 tonne.
GONINAN SITE, BROADMEADOW, NEWCASTLEOur historical Goninan site commenced over 100 years ago, and is UGL’s longest established operational facility. Situated on a 14 hectare site, with a total of 32,000 m2 of enclosed workshops producing all types of railway products, the Broadmeadow facility has also proudly produced the majority of Sydney’s double deck trains which operate on the metropolitan network.
BROADMEADOW, NEWCASTLEOur rolling stock design and engineering team is one of Australia’s most experienced, with an excellent reputation in the freight and passenger markets. UGL offers a comprehensive range of motive power solutions including the supply of products that span the heavy-haul, intermodal and passenger sectors.
GLADSTONEUGL’s Bowen Basin operations are managed from its Mackay Operational Centre only a few hours’ drive from the region’s mines. UGL provides comprehensive asset management, outage management and execution and industrial maintenance services to local clients.
HUNTER VALLEY MAINTENANCE CENTRE, NEWCASTLEUGL’s Hunter Valley Maintenance Centre (HVMC) is a fully dedicated service centre of excellence for maintenance that provides a complete through life support network for freight rolling stock operators across the Hunter Valley region.
MOTOR REPAIR WORKSHOPS, NEWCASTLEOperations in Newcastle provide asset management, outage management and execution, and industrial maintenance services to coal mines and heavy industry throughout Newcastle, Hunter Valley and greater NSW regions. The facility is a specialist in delivering electrical motor overhauls for electrical rotating equipment. Specifically, we provide overhaul, re-build, rewinding, testing and condition monitoring services.
AUBURN, SYDNEYLocated in Sydney’s west, UGL Unipart is a world class joint venture combining UGL’s intimate knowledge of Sydney’s passenger rolling stock and Unipart Rail’s international expertise in logistics. Through the Joint Venture, UGL provides heavy maintenance and logistics management services on 1,050 passenger cars for Sydney Trains across Sydney’s metropolitan fleet.
ENGINEERING OFFICE, SYDNEYUGL provides an integrated service for ‘whole of life’ tunnelling and signalling systems, from initial concept design (signalling arrangements, system architecture and control tables), through to detailed design, construction, manufacture, product supply, testing, commissioning and maintenance. Client requirements continue to increase in their diversity and UGL is well placed to servi ce this need, providing specialist in-house capabilities through our engineering ‘Centre of Excellence’.
MILPERRA, SYDNEYUGL is a leading manufacturer and distributor of signalling and mobile communications products and one of the largest private sector suppliers of signalling and railway network systems in Australasia. Our Milperra facility manufactures signalling equipment, traction switchgear equipment for substations and carries out advanced electronic repair of equipment. The facility contains an environmental chamber and carries out chromatic testing and insulator refurbishment.
CHULLORA, SYDNEYUGL’s operations have extensive railway workshops which have occupied this site for more than half a century. Following a significant capital injection the previously scattered workshops have been consolidated and the site facilities have been substantially upgraded to introduce modern management systems for manufacturing and maintenance activities.
BALLARATThe newly established Ballarat service centre provides an extensive range of services including maintenance, overhaul, refurbishment and manufacture of passenger and freight rolling stock. The site also handles the overhaul of rolling stock components, including mechanical and traction equipment for the Victorian rail industry. Ballarat also has proven technical capabilities in the building and overhaul of both train and tram rotable components.
PENROSE, AUCKLANDUGL provides a wide variety of engineering activities and has developed key in-house capabilities within the water, industrial, telecommunications, rail and power sectors. UGL’s power business is a market leader in delivering power generation, transmission and distribution solutions throughout New Zealand. UGL is also a leader in the New Zealand water sector and undertakes projects ranging from water to wastewater treatment and heavy industry turnkey projects.
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Our ApproachCorporate Responsibility is central to the strategy of our business, and is integral to everything we do. We believe every company has a responsibility to make more than an economic contribution to society. This approach underpins everything we do as the critical assets we help build and the essential services we deliver improve people’s lives, everyday. For us, Corporate Responsibility is about creating a sustainable tomorrow, which means taking greater social, economic and environmental responsibility today.
Our approach to Corporate Responsibility is about running our business and achieving our goals in a way that reflects our values, connects our business decisions to ethical, social and environmental concerns and meet the standards our clients, shareholders and our own people expect.
Our approach is focused on:
Our ClientsDelivering exceptional service to our clients within a framework which embraces the highest levels of corporate governance and ethical standards.
Our PeopleValuing our employees by providing a safe and rewarding work environment which invests in their future embraces diversity.
Our PartnersFostering partnerships with our technology and joint venture partners and our suppliers to maximise knowledge sharing and idea generation in order to develop innovative, sustainable solutions.
Our CommunitiesActively supporting the communities in which we operate and using local suppliers and talent where possible.
Our EnvironmentManaging our impact on the environment through responsible business practices across all operations.
Corporate ResponsibilityCreating a sustainable tomorrow
Corporate Responsibility guides everything we do and the way we go about our business. Our approach is reflected in our Vision and Values, our Corporate Governance framework, our Code of Conduct, our Code of Ethics and our Policies. We recognise that Corporate Responsibility is a journey and as our company continues to evolve, we will continue to improve and extend our Corporate Responsibility framework.
Since 1970, we have followed a simple formula: when we do the right thing, we succeed. Everyday, our businesses through the services they deliver make a meaningful contribution to the social, economic and environmental well-being of the communities in which we live and work. We want to leave a positive legacy for all of our stakeholders – a goal that is embedded in our values and drives every decision we make.
DELIVERING MEASURABLE VALUE CREATIONSustainable business practices can have a direct or indirect impact on value creation. For example, environmental efficiency initiatives that reduce costs have a visible financial impact. Attracting, developing and retaining the best people also has a direct impact on the value of our business. On the other hand, the value created by transparent business practices, risk identification and mitigation and open engagement with stakeholders is less obvious, but equally important.
Safety is a core value at UGL, representing one of the foundations on which our success has been built and embedded in the culture of our company. It is more than just processes and procedures. It is a mindset which puts our people first and cares for their well-being above all else. Achieving an accident-free workplace is a two-way commitment. UGL is committed to providing a workplace that is in compliance with all applicable occupational health & safety (OH&S) laws and regulations and in conformance to UGL’s performance standards. In return, UGL expects individuals to refuse to take any action considered unsafe, confront others acting in an unsafe manner and immediately stop any unsafe actions.
Maintaining Employee Safety
Ensuring a safe work environment also makes good business sense because a strong safety record reduces costs and enhances productivity. When we care for our people, the results have a positive effect on most other aspects of our operations. A good reputation as a safe operator also makes us an employer of choice for current and new employees.
12 UGL | Corporate Profile
Corporate Directory
UGL Level 5, 40 Miller Street
Locked Bag 903
North Sydney NSW 2060
Australia
P: +61 2 8925 8925
F: +61 2 8925 8926
www.ugllimited.com
REGISTERED OFFICEUGL LIMITEDLevel 10, 40 Miller Street
North Sydney NSW 2060
Australia
P: +61 2 9492 8888
F: +61 2 9492 8844
www.ugllimited.com
UGL LIMITED
ACN 009 180 287
SHARE REGISTRYLink Market Services
680 George Street
Sydney NSW 2000
Australia
P: 1800 200 296
Overseas: +61 2 8280 7796
Our Vision and Values
reputationTeamwork
Teamwork
Honestyopennesscommunication
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sharing
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guiding
collaborative
collaborative
commitment
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commitment
success
working
GovernmentCorporations
Corporations
Worldwide
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IntegrityShared
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partnerdelivering services
infrastructure
infrastructureSustain
outcomes
outcomes
liveEnhance
Influence
efficient
create
create
create
create
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benefit
critical
communities
shareholders
clients
clients
employees
employees
risk management
risk management
risk management
value
value
responsibility
standards
information
information
informationinformation
communication
communication
deliver
success
success
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appropriate
highest
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live
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Influence createachieve
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standardsbenefit
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valueUGL
Our VisionUGL’s vision is to be the preferred partner of governments and corporations worldwide in delivering essential services that sustain and enhance the environment in which we live and the communities in which we operate, for the benefit of our people and our shareholders.
Our ValuesOur values reflect the blueprint for our company to operate successfully and are consistently applied across all of our operations.
SafetyWe take our duty of care for people seriously and uphold our commitment to safety and risk management.
IntegrityWe discharge our duties with the highest level of integrity and take personal responsibility to deliver on what we promise.
Outstanding client serviceWe strive to continually exceed our clients’ expectations and the standards of our competitors.
Honesty and openness in communicationsWe value talking directly, share appropriate information and communicate using clear and simple language.
TeamworkWe seek to foster a collaborative environment, working together to enhance our reputation and success.
Our Vision and Values embody our overarching strategic objectives and our unique culture which underpins the delivery of this vision. UGL’s longstanding purpose is to deliver sustainable and responsible wealth creation for our shareholders.
BOARD OF DIRECTORS
Kathryn (Kate) D Spargo Chairman
Ross Taylor Executive Director
Guy M Cowan Non Executive Director
Richard G Humphry Non Executive Director
Douglas F McTaggart Non Executive Director
Ross Taylor Managing Director & CEO
Rob Bonaccorso Chief Financial Officer
Pryce Dale Lyn NikolopoulosCompany Secretaries
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NEW ZEALANDPO Box 62153
511 Mt Wellington Highway
Auckland 1644
P: +64 9 525 4620
F: +64 9 525 4635
MALAYSIALevel 11, Menara Citibank
165, Jalan Ampang
50450 Kuala Lumpur
P: +60 3 2161 2111
F: +60 3 2161 2118
SINGAPOREBlk 750 Oasis Chai Chee Road
#03-01 Technopark@Chai Chee Singapore
469000 Singapore
P: +65 6449 9225
F: +65 6449 9445