BRAUS October 2015

THE GLOBAL IMPACT OF RETAILBASED CIOs

COMPANY OF THE MONTH // ERGON ENERGY

A look at Woolworths

BONUS:

www.businessreviewaustralia.com | October 2015

TOP 10 INFLUENTIAL INNOVATORS CEO TRAVIS KALANICK

Ah yes, October; when the weather warms and the flowers bloom during the middle of spring.

As we jump into this months issue, I would like to open by congratulating new Prime Minister Malcolm Turnbull, who has ignited a spark of hope among the nations technology sector. By encouraging innovation within Australia, tech entrepreneurs across the country have welcomed the change.

Mr. Turnbulls business acumen along with his knowledge of, and well-known support for, the Australian technology sector will provide him with unique insights into the barriers facing Australian startups, particularly in terms of accessing venture capital and talent, said Peter Bradd, CEO of StartupAUS. As Australia enters a new era of growth, technology-based startups have the potential to transform the economy and create the jobs of the future.

With the nations new focus on technology, Business Review Australias October issue features the top 10 influential innovators from around the world. Uber CEO Travis Kalanick graces our cover as one member of the list, but can you guess whos included in the other nine?

Next, we dissect Googles recent corporate restructuring under its new holding company, Alphabet, and why this could be beneficial for the tech giant. Furthermore, is this a maneuver that would be good for your growing business?

In this issue, well also examine the global impact of retail-based CIOs, while taking a look at Woolworths new CIO Clive Whincup, and what made this former Westpac CIO transition into retail.

Finally, this months edition highlights Ergon Energy as our Company of the Month, while we also feature other top companies such as Lynas Corporation, Tag Oil, First Solar, Jetcrete and UGL

Limited.

ERIC [email protected]

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E D I T O R S C O M M E N T

COMPANY PROFILES

FEATURES

CONTENTS

6 LEADERSHIPAlphabetic order

30

84

96

Ergon Energy

Lynas Corporation

Tag Oil

4 O c t o b e r 2 0 1 5

62UGL

118 First Solar

14 TECHNOLOGYCIOs: The new drivers of tech-based innovation

22TOP 10

Tech-based innovations

5

COMPANY OF THE

MONTH

30 Ergon Energy

SUPPLY CHAIN

62 UGL Limited

ENERGY

76 Sustainable Energy

Association of New

Zealand [Association]

84 TAG Oil

MINING

96 Lynas Corporation

108 Jetcrete

CONSTRUCTION

118 First Solar

First Solar

W R ITTE N BY: E R I C H A R D I N G

ALPHABETIC ORDERTAKING A DEEPER DIVE INTO THE BENEFITS OF GOOGLES CORPORATE RESTRUCTURING AND

THE LAUNCH OF ALPHABET, INC.

LEADERSHIP

W R ITTE N BY: E R I C H A R D I N G

ALPHABETIC ORDERTAKING A DEEPER DIVE INTO THE BENEFITS OF GOOGLES CORPORATE RESTRUCTURING AND

THE LAUNCH OF ALPHABET, INC.

8 O c t o b e r 2 0 1 5

GOOGLE WAS FOUNDED as a company that specialized in Internet

search. Over time, it has broadened

into other areas from drones,

pharmaceuticals and venture capital

to advertising, hardware, and even

artificial intelligence. Today, Alphabet

Inc., formerly known as just plain

old Google, has arms that reach far

beyond just the worldwide web.

The tech giant is separating its

moneymaking search and advertising

businesses from the other moonshot

subsidiaries. Alphabet is now the

parent entity, and houses several

companies, with Google the biggest

among them.

Under Alphabet, subsidiaries such as

Google (the search engine) will be run

autonomously, with each being able to

focus on its own particular business.

This would be a significant shift from

the original setup, which had Google

as the parent company in charge of

a number of diverse verticals. Now,

the various businesses will operate

independently and be folded into

Alphabet, while Googles stock will also

convert into Alphabet stock.

Reasons for the change Google co-founder and Alphabet

CEO Larry Page claims that the

move will allow for cleaner operations

and more accountability. Still, some

suspect the restructuring was an

attempt to please investors annoyed

by Googles wild investments. The

split would allow the founders more

time to pursue new game-changing

technology, while also increasing

operational independence between

businesses that are unrelated to each

other. This will improve focus and

Upon announcing the creation of Alphabet, Sundar Pichai was announced as the next CEO of Google (Photo courtesy of Google)

LEADERSHIP

9accountability, and create a house of

brands as a catalyst for innovation.

Only a few Alphabet businesses

namely Nest and Fiber currently

generate significant revenue. Some

estimate those units will bring in about

$500 million in total revenue in 2016,

with about $100 million to $150 million

in gross profit. The rest of the Alphabet

businesses, many of which are still in

early stages such as the self-driving

cars that are part of Googles X lab

consistently operate in the red.

Alphabets non-Internet-related

businesses could be hemorrhaging

up to $4 billion a year, risking having a

negative value when they are spun out

into separate businesses under the

Alphabet holding company.

Perks to the shake up One overlooked aspect is how

the new structure stops forcing

subsidiaries to work dependently.

1 0 O c t o b e r 2 0 1 5

S M A R T B U I L D I N G S C O M B I N E T E C H N O L O G Y W I T H H U M A N S

wouldnt have to face the same

criticism. Sidewalk Labs, Alphabets

subsidiary project to improve cities,

could potentially find ways to foster

connectivity without being obligated

to partnering with Google Fiber, the

super-fast internet subsidiary.

Alphabet companies may even

be able to seek investments from

other outside sources, such as other

corporations or financial entities,

to jump-start projects that dont fit

with Alphabets corporate priorities

or strategic interests. The rules will

Since everything doesnt have to

report through corporate, Alphabets

businesses may begin competing

against each other or overlap in ways

that may have once seemed like

conflicts of interest.

This has happened even before the

recent shakeup. When Google was

working on a ride-sharing app, finance

experts pointed out the competition

with Uber, notable because Google

Ventures had invested roughly $250

million in Uber back in 2013.

Today, a situation like that

The new Google logo accompanied the launch of Alphabet. (Photo credit: Nito / Shutterstock.com)

LEADERSHIP

1 1

S M A R T B U I L D I N G S C O M B I N E T E C H N O L O G Y W I T H H U M A N S

be completely different than in the

old days under Google, and that

could have a big impact across the

technology industry.

Whos afraid of the big bad data collector? The new separation could also reduce

some of the suspicions people have

about what Alphabet plans to do with

all the data it collects and stores from

its various services.

Look at how Nest, most known for

its smart thermostat, has expanded

into other gadgets. Although the

company insists it doesnt share

information with Alphabet, people

still worry about it. After the change,

theres a much clearer divide between

those two companies, and it gives

Alphabet a little more cover from some

of the criticism.

Putting stock in it Investors are hopeful this move will

mark a new era of transparency at

Alphabet, which has kept a tight

lid on the financials of YouTube,

Eric E. Schmidt, Sergey Brin and Larry Page believe that innovation is key to the companys continued success. (Photo credit: Flickr)

LEADERSHIP

1 3

A L P H A B E T I C O R D E R

Android, and other properties.

Calico, Alphabets research company

dedicated toward increasing lifespan,

has quickly acknowledged new

collaborations with scientists and

institutions; however, it has disclosed

almost nothing in the way of financial

details. In fact, much of Calicos

operation is being kept under wraps.

Analysts at Macquarie Securities

said this new structure will give

investors a better understanding of

key metrics driving core Alphabet, but

how much of a better understanding is

still unknown.

Alphabet continues to trade

below its all-time high, even after the

restructuring announcement. A new set

of divisions, broken out more visibly,

will not mitigate the slowing growth

of its main business. As Wall Street

picks apart the new Alphabet figures,

it still will look primarily at the search

division. Aside from decelerating

revenue growth, the issue of rapid

employee additions will be part of the

calculation. Investors have been wary

of Googles habit of adding thousands

of employees a year without saying

what these people will do.

Alphabet shares had lagged behind

other technology companies for most

of the year, until the company reported

better-than-expected second-quarter

results and signaled plans to rein in

spending on ancillary projects.

The decision may not be enough

to move the stock much higher. That

will depend on the companys slowing

revenue, and whether Alphabet can

milk that revenue for more profits.

On average Alphabet is trading on

average moderately below its all-time

high, at $634 against its top of $678.

Road mapping the future Restructuring and renaming the

company so far have not produced a

tangible, compelling strategy for the

overall enterprise. On the other hand,

if this move helps inspire corporate

flexibility, the reasons for owning the

stock would dramatically improve and

increase.

For years analysts and investors

have scratched their heads at the

companys collection of businesses

and ventures because they couldnt

see how these reflected or comprised

a coherent strategy.

Perhaps now the master plan is

beginning to unfold.

1 4 O c t o b e r 2 0 1 5

TECNOLOGA

W R I T T E N BY: G I N A RU BE L L O

CIOs The new drivers of tech-based innovation

TECHNOLOGY

Why todays CIOs are required to take a larger role in business growth and customer engagement

I N T E L I G E N C I A S E M P R E S A R I A L E S

1 5

1 6 O c t o b e r 2 0 1 5

A STUDY BY Tata Consultancy Services (TCS) shows that retail CIOs

are primed to lead the innovation

agenda.

In an era of digital Darwinism and

evolving consumer behavior, there

is a critical need for retail CIOs to

transition from a focus on the back

office to driving innovation as C-level

strategists, according to the findings

from the study titled The Global

Agenda Of Retail CIOs.

In todays rapidly changing,

consumer-centric retail landscape,

CIOs must take a larger role in

their companys technological

advancement, according to a study

released today by TCS, (BSE: 532540,

NSE: TCS) a leading IT services,

consulting and business solutions

organization.

TCS commissioned Forrester

Consulting to conduct the December

2013 study, The Global Agenda of

Retail CIOs, to evaluate the state

of IT within the global retail industry

and CIOs attitudes and plans toward

key trends and ever-more disruptive,

challenging technologies.

In-depth interviews with senior

business and IT executives at global

retailers found that the potential

for CIOs to embrace disruptive

technologies are far too often hampered

by a lack of key resources and business

alignment.

This is illustrated through the fact that

almost two thirds (64 percent) of global

retailers consider cost reduction as a

major focus over the next few years,

compared to only two-fifths (38 per

cent) citing innovation.

Retail CIOs are uniquely positioned

with an enterprise-wide perspective to

overcome operational silos and become

TECHNOLOGY

1 7

true change-agents, critical to future

cross-channel customer engagements

and business growth, said Pratik

Pal, President of Retail, CPG, Travel,

Transportation and Hospitality for

TCS. They are primed to expand their

leadership role in the dynamic new

world of retail by spearheading the

digital and innovation agenda.

Retail business executives core

priorities remain revenue growth

with 87 per cent listing it as a

top priority underpinned by

multichannel integration and digital

customer engagement. Retail

CIOs believe that the disruptive

technologies of mobility, social media,

cloud, and big data will continue to

radically transform the retail industry

status quo, yet they are not staffed

or structured adequately to take full

advantage.

Mobile At the forefront of

innovation that will continue to disrupt

retail over the next years

CIOs plan to rapidly implement

In todays rapidly changing, consumer-centric retail landscape, CIOs must take a larger role in

their companys technological advancement

1 8 O c t o b e r 2 0 1 5

an array of mobile technologies, with

context-aware tech (32 per cent),

mobile payments (28 per cent), digital

signage (24 per cent), and mobile POS

(22 per cent) leading the way.

Retail CIOs in the United Kingdom are global leaders in implementing

forms of mobile payments (73

per cent), while German retailers

interestingly buck the global trend,

with 60 per cent having no mobile

plans at all.

Perhaps with an eye toward further improving customer service and

logistics, six out of 10 (59 per cent)

retailers plan to invest in mobile-

enabling their partners and vendors

over the next three to five years.

Cloud Frees up IT teams from

traditional core functions to allow

greater innovation

While 41 percent of retail CIOs currently use SaaS (software-as-

service) for back-office functions such

as supply chain and product life cycle

management or ERP, more than half

(52 percent) intend to do so over the

next five years.

Big Data Not yet being used to

its full potential to drive actionable

insights

Almost seven out of 10 (68 percent) retail CIOs report that they

collect data, but agree they are not

maximizing its full value.

Only 47 percent have invested in

There is a critical need for retail CIOs to transition from a focus on the back office to driving innovation as C-level strategists.

TECHNOLOGY

1 9

cross-channel analytics, a critical

enabling technology for deriving

multichannel insights and enhancing

the companys ability to reach

consumers effectively through their

channel of choice.

Additionally, only a fourth (25 percent) of retailers have plans to

invest in big data analytics to support

customer service.

Social Looking to expand the

reach and application of social media

intelligence

Not surprisingly, eight out of 10 (80 percent) retail CIOs leverage social

media for sales and marketing, with

customer service and recruitment the

next most common functions.

However, almost half (46 percent) of retailers plan to link social insights to

research and development (R&D) and

product design during the next three

to five years unlocking customer-

centric product designs.

Canadian firms are far ahead of other countries and regions, with 67 percent

already leveraging social media for

R&D.

Talent Shortage Lack of technical

skills a key obstacle in implementing

critical technology strategies

Almost seven out of 10 (67 percent) retailers surveyed consider attracting

and retaining talent a critically

important challenge over the next

three to five years.

CIOs plan to rapidly implement an array of mobile technologies, with context-aware tech, mobile payments, digital signage and mobile POS leading the way.

2 0 O c t o b e r 2 0 1 5

In the specific area of mobility, one-third (34 percent) report struggling to

obtain the necessary talent.

Similarly, four out 10 CIOs turn to SaaS solutions (39 percent) and

are compelled to leverage external

partners with emerging mobile

expertise (equally 39 percent) to

support internal teams as they build

mobile strategies and applications.

Savvy CIOs will continue to drive

cost savings while accessing the

latest technology innovations and

leveraging partners to provide not

only commodity services, but high

value and hard to find capabilities like

mobile development, architecture

and business requirement definition,

added TCS Pratik Pal. In doing so,

CIOs can concentrate their internal

resources on strategy, business

alignment and partner governance,

while partners concentrate on

technical excellence.

Bonus: Spotlight on Woolworths Former Westpac CIO Clive Whincup

resigned from the bank to join

Woolworths as the retailers new chief

information officer.

An accomplished senior executive

with a strong track record of delivering

large scale transformation programs,

Whincup drives strategic business

outcomes, delivers technology

innovation and initiates new ways of

working and doing business.

Whincup and his team are focused

on improving business value and

performance through rapid technology

innovation and customer centric IT

solutions. His recent success includes

implementing a customer centred

design framework, improving the

availability of critical IT resources and

The potential for CIOs to embrace disruptive technologies are far too often hampered by a lack of key resources and business alignment.

TECHNOLOGY

T E C H - B A S E D I N N O V AT I O N

2 1

driving benefits realisation for the

recent Google Chrome implementation

that includes embedding a new level

of productivity, capability and flexibility

across all brands.

Woolworths planned all along

to secure a tech expert, as it has

previously been seen as a technology

leader in the retail space. In addition,

a Woolworths spokesperson said

Whincups previous IT experiences will

be invaluable to the companys future

technology plans.

While the gap has narrowed in

recent times, Woolworths success in

implementing industry-leading supply

chain systems as part of its Project

Refresh in the latter part of the last

decade had been seen as giving it a

huge competitive advantage.

Last year, Woolies announced it was

becoming one of Australias highest-

profile corporations to migrate internal

office staff to the Google Apps platform.

Woolworths spokeswoman Claire

Kimball confirmed the appointment and

said Whincup would formulate plans for

tech changes at the company.

Clives experience of retail in a

banking context and his leadership of

large-scale IT programs will be of great

value to us in shaping the next phase of

development of our technology journey.

We look forward to welcoming Clive to

our team in coming months, she said.

Woolworths has already reported

that improved online operations have

helped the company achieve AU$1

billion in online sales for the 2013

calendar year ahead of its 2014

financial year target.

Woolworths success in

implementing industry-leading supply

chain systems as part of its Project

Refresh in the latter part of the last

decade had been seen as giving it a

huge competitive advantage.

Online sales from continuing

operations increased more than 40

percent for the half year and second

quarter, and featured strong growth

within our food and liquor businesses

as well as over the Christmas period,

said Woolworths CEO Grant OBrien

at the companys 2014 half-year sales

results.

Prior to joining Woolworths,

Whincup worked in a number of senior

leadership positions in the financial

services industry with Westpac

Banking Corporation, Lloyds Banking

Group, Banca Popolare di Milano,

Bank of Scotland and CariVerona

Banking Group (Italy).

TOP 10

2 32 3

TOP 10

Written by: Cutter Slagle

Influencial InnovatorsIt can often take more than a good idea to succeed in the competitive world of technology yet these innovative entrepreneurs are prime examples of how to do it right.

TOP 10 INFLUENCIAL INNOVATORSTOP 10

2 4 O c t o b e r 2 0 1 5

In business, there are never any guarantees, and it often takes more than just a good idea and a can-do attitude to achieve that high level of success; in fact, for an entrepreneur to thrive in the increasingly competitive environment of global business, he or she will more than likely need to stray from the traditional approach and be willing to take risks that could radically change the norm.

The following innovations, created by industry-leading entrepreneurs, are prime exam-ples of what can result from taking these risks. Ranked alphabetically, these are our top 10 industry-leading inno-vations and the innovators behind each.

10 Chris Barton Shazam

Barton and his co-founders successfully created Shazam by turning a concept into groundbreaking pattern recognition technology, resulting in the worlds first mobile music

recognition service. Barton originally founded the company in the UK, but was quick to expand to other territories including the U.S., Germany, Japan and Australia. In Europe, he was able to use new technologyPremium SMSto get the design launched, proving that with a little resourcefulness goes a long way for making a good idea a reality.

Understanding that the world changes fast and that mobile is a large part of how society inter-acts, Shazam now has 100 million monthly active users and has been used on more than 500 million mobile devices.

09

Brennen Byrne Clef Clef has proven to be quite popular among bitcoin, as well as gaming

Brennen Byrne Photo Cred Clef

TOP 10 INFLUENCIAL INNOVATORS

2 5

and developer tool sites, because it offers a safer and easier way to log into a website without the hassle of entering a password. Clef currently powers logins for more than 40,000 sites across the web and is continues to grow steadily. Though co-founder and CEO Byrne originally came from the development side of mobile apps, hes proven that expanding skill sets and being able to wear many different hats is essential in the world of business. Bryne has now moved on to the strategy, distribution and business development side of Clef.

08

Joel Gibbard Open Bionics

Gibbard didnt just set out to create an innovating product that people would want, but one that people would actually neednot to mention be able to afford. Gibbard dramatically reduces cost to manufacture prosthetics by taking advantage of 3D printing technology. With an early experience in robotics, Gibbard has explored

other alternatives as well, including off-the-shelf components. This strategy reduces the cost of production to just under $1,000, a significant savings compared to traditional models that can cost upwards of $100,000.

07 Travis Kalanick Uber

Uber, an American international transportation company, is a classic case of a good idea striking at the least expected time. Inspiration for Uber came when Kalanick found himself stranded on the streets of San Francisco; from there, he and his co-founder Garrett Camp set out to solve the

Joel Gibbard photo Cred TEDxExeter

TOP 10

2 6 O c t o b e r 2 0 1 5


taxi problem in the busy city. With a little bit of innovation, Kalanick was able to take a traditional but flawed model and improve upon it. Though the company hasnt been without controversy and criticism, it has still managed to become a $50 billion company in just six years.

06 Jan Koum WhatsApp

A dropout of San Jose State University, Koum is the Internet entrepreneur and computer engineer who founded WhatsApp, a mobile messaging application.

WhatsApp was acquired by Facebook in 2014 for $19 billion. Koum wanted a product that allowed the exchanging of messages without having to pay for SMS. Knowing the market and the need to be diversified, Koum launched his app in 2009. WhatsApp Messenger is available for iPhone, BlackBerry, Android, Windows Phone and Nokia and reached 900 million users in September 2015, justifying Koums argument for the need for diversity.

05 John Lewis JLAB

It was less than one year ago that John Lewis officially revealed JLABSa technology incubator that will reward a winning start-up

Travis Kalanick Photo Cred JD Lasica

Jan Koum Photo Cred catwalker

2 7


with a large investment in return for an equity stake.

Already an innovator in retail, Lewis recognized the need to support tech start ups from incep-tion to completion. Ultimately, Lewis has the business mind to risk venturing into a new area in order to stay relevant and compete with the competition, a key char-acteristic for anyone that wants to make a name as an innovator.

04 Evan SpiegelSnapchat

A video messaging application, Snapchat allows users to take photos, record videos, add text and drawings and then send them to a restricted list of friends or recipients. These messages are known as snaps and users can

determine how long a person is able to view these snaps before they disappear (from one to 10 seconds).

Spiegel originally proposed Snapchat as a class project while studying design at Stanford. Then, in 2012, he left school before graduating to completely focus on the venture. Facebook offered to acquire the company for an easy $3 billion, but Spiegel turned down the offer, allowing himself the liberty to remain a creative free agent.

03 Kevin SystromInstagram

A graduate of Stanford University, Systrom and his co-founders came up with the online mobile photo-sharing, video-sharing and social networking service Instagram

Spiegel Photo Cred TechCrunch Systrom Photo Cred JD Lasica

TOP 10 TOP 10 INFLUENCIAL INNOVATORS

2 8 O c t o b e r 2 0 1 5

(derived from the words instant and telegram) in an attempt to create a new form of communica-tion that was a perfect fit for a society that is constantly on its smartphone.

Following the popular trend of sharing, Instagram allows the development of web profiles, connecting accounts to Facebook, Twitter, Tumblr and Flickr.

Instagram has set many trends that are now common terms, including Throwback Thursday and the selfie, which in 2013 was the Oxford English Dictionarys word of the year.

02 William ZhouChalk.comChalk.com, developed to assist

teachers is currently used in over 20,000 schools worldwide. This collection of productivity apps for K-12 educators aids with lesson planning, assessments, collabora-tion, attendance and more.

William Zhou, co-founder and CEO of Chalk.com, has credited the idea to visiting his high school

teachers and seeing their struggle with overwhelming amounts of work. Returning to his roots proved to be sound business strategy, as the company has over 100,000 educators as users.

01 Mark ZuckerbergFacebook

A household name thanks to the ongoing popularity of social media and the blockbuster film The Social Network, Zuckerberg is an American computer programmer

Zhou Photo Cred Chalk.com

2 9


and Internet entrepreneur. Due to Facebooks success, he became a billionaire at the age of 23.

Now 31, he remains CEO of arguably one of those most

successful companies worldwide, proving that you dont always need a college degree to flourish in the business world, just plenty of determination and a viable idea.

Zuckerberg Photo Cred Frederic Legrand - COMEO

Ergon EnergyRegional Queenslands energy supplier

Executive General Manager Peter Billing discusses innovation and reveals upcoming initiatives on the horizon for Queensland.

Written by: Robert Spence Produced by: Glen White

3 1

Ergon EnergyRegional Queenslands energy supplier

Executive General Manager Peter Billing discusses innovation and reveals upcoming initiatives on the horizon for Queensland.

Written by: Robert Spence Produced by: Glen White

3 2 O c t o b e r 2 0 1 5

COMPANY NAME

Ergon Energy is more than just your average energy company. Founded in 1999, the government-owned corporation is a forward-thinking electricity provider. It services more than 720,000 customers across Queensland by supplying electricity and alternative solutions to residents and businesses from the coastal population to the rural and remote communities throughout the region.

Ian McLeod, CEO

S E C T O R

www.ergon .com.au 3 3

COMPANY NAME

Anatomy of Ergon Energy The Queensland company is comprised of two sides: one that builds and maintains the electricity distribution network, and one that sells electricity to residential and business customers.

Ergon Retail is the customer facing part of the company, assisting customers in everything from opening new accounts, arranging location moves and managing electricity use to locating convenient ways to pay accounts, support systems and

Innovation is huge for us. Its an important part of our business and were always looking at new ways to apply new innovation throughout the company. Peter Billing, Executive General Manager, customer service.

Head Office207 Sunshine RoadTottenham Victoria 3012 AustraliaPhone: 1300 CABLESwww.olex.com.au

Nexans Olex is Australia's trusted electricity industry partner; providing electrical cable products and solutions for over 75 years. From project design through to decommissioning, our local technical design and support team are there when you need us to keep your assets running and to let you focus on your business.

Our comprehesive product range includes solutions for:

SUPPLIER PROFILE

Employees: 350 Australia, over 20000 Worldwide

Established: 1940 (Australia)

Industry: Power Transmission and Distribution, Transport Networks and Infrastructure, Resources (mining, oil and gas, renewables), Building Construction

Products and Services: We are manufacturers and suppliers of a full range of electrical and data cables and electrical system solutions. Our products have been designed with local industry by our Australian technical team and best in class global research centres.

Ongoing Projects: APLNG Gas Field Electrification and Wells Online, Ichthys Gas Field Downstream Processing Facilities, Ergon Energy Power Utility Network,

Key to success: Our approach is to partner with our customers. We are involved in your success and provide solutions which help you achieve your goals. This is backed by a commitment to best quality manufactured products designed for your specific application and operating environment.

Future developments: LoSAG Covered Conductor is an exciting new product for power distribution networks which greatly reduces the risk of bush fires while also remaining compatible with existing systems for the lowest cost SWER replacement line option. Company Mission: Nexans Olex aspires to be the first choice supplier of cable solutions in Australia. With a rich history at our core, we aim to draw on our global parentage to lead the electrical industry through technical innovation, quality and industry stewardship.

Management: Tony Dunstan, Managing Director Greg Stack, General Manager Sales Tony Jones, National Manager Utilities & Contestables

Website: www.olex.com.au

E N E R G Y

w w w. e r g o n . c o m . a u 3 7

ERGON ENERGY

government rebates.The distribution side of the business, Ergon

Energy, provides energy services to residents and businesses while maintaining an electrical network that stretches roughly 160,000 kilometers of power lines across Queensland. Within the network operates 33 stand-alone power stations that provide energy to isolated communities within the region.

Additional services include accommodating connections for new technologies such as solar, as well as a small manufacturing group to handle the construction of module substations.

Unlike your typical energy provider, Ergon Energy is driven by innovation.

Innovation is huge for us. Its an important part of our business and were always looking at new ways to apply new innovation throughout the company, said Peter Billing, executive general manager of customer service at Ergon Energy.

According to Billing, the company continuously seeks out new ways of improving service whether through infrastructure or alternative energy sources to better position themselves for the future.

We recognised back in 2007 that the price of energy would become an issue and that we would need to adapt. Peter Billing, Executive General Manager, customer service.

ADVANCED DIESEL FUEL WITH SOPHISTICATED ENGINE CLEANING TECHNOLOGY

Caltex Active TecD is a high-performance diesel fuel specifically designed to clean-up performance degrading deposits from heavy-duty diesel-fuelled engines, such as buses, trucks, mining equipment and power generators, and keep them clean.

CCaltex Active TecD works to help improve injector cleanliness, and consequently enhance fuel flow through the injectors and restore engine power.

ERGON ENERGY E N E R G Y

w w w. e r g o n . c o m . a u 3 9

We recognized back in 2007 that the price of energy would become an issue and that we would need to adapt, Billing revealed. It got us thinking differently and we realized if we keep doing things the way weve always done them, the world will change and well become obsolete.

We may not be Apple or Google but were striving for innovation.

To ensure creativity is alive and well within the organization, Ergon Energy strives to cultivate an atmosphere that empowers people to speak up and bring their ideas to the table.

We encourage everyone in our organization from the top to the bottom to read and learn new things happening in the world. We encourage them to think of new ways of doing things and ways to apply those innovative ideas to our type

ADVANCED DIESEL FUEL WITH SOPHISTICATED ENGINE CLEANING TECHNOLOGY

Caltex Active TecD is a high-performance diesel fuel specifically designed to clean-up performance degrading deposits from heavy-duty diesel-fuelled engines, such as buses, trucks, mining equipment and power generators, and keep them clean.

CCaltex Active TecD works to help improve injector cleanliness, and consequently enhance fuel flow through the injectors and restore engine power.

Internal diesel injector deposits are of increasing concern in modern high pressure common rail fuel injection systems, which are manufactured to meet precise tolerances and operate with tiny clearances (down to 2-6 micron). These deposits can affect the response of the fuel injector, causing sticking of moving internal parts and loss of control of injection event timing, as well as the quantity of fuel delivered.By cleaning up performance degrading deposits from an engine and keeping it clean Caltex Active TecD works to restore power, improve injector cleanliness and ensure better fuel flow through the injectors.It is formulated with a high treat rate of Caltexs advanced, proprietary additive system which also inhibits the formation of rust and corrosion. The anti-foaming agent in Active TecD reduces foaming to zero in industry standard tests, which in practice lessens both splashback and odours commonly associated with regular diesel, allowing for faster and cleaner fill ups.Website: www. caltex.com.au/tecd

ACTIVE TECD: THE FUEL OF THE FUTURESUPPLIER PROFILE

EDITORIAL

Caltex and Ergon Energys Isolated Systems have formed an interdependent relationship based on collaboration, trust and shared values. Caltexs central role is to supply diesel

fuel and lubricants to all of Ergon Energys 33 remote power stations, which provide dependable and stable electricity to remote parts of Queensland, including the Torres Strait. The relationship

between the two organisations is critical to ensure consistency of the power supply and to make sure that fuel is transported and delivered safely and effectively with minimal risk to the environment. Caltex has proven to be a trusted supplier and a key partner in Ergon operations.

In one of many dialogues between both companies to review operational efficiencies and improvement initiatives, Caltex proposed an opportunity for Ergon to reduce fuel consumption. ActiveTecD fuel, one of three Caltex value-added fuel products, was suggested as being a good fit with existing infrastructure and logistics. The fuel was claimed to offer a potential 2 per cent improvement in thermal efficiency (reduced consumption), by removing deposits in the fuel system and preventing further build-up. In prolonged operation this should help restore and maintain new engine like performance for longer.

Caltex was able to demonstrate

the claimed effectiveness of ActiveTecD in the transport market, which established a performance test in the power station at Boulia, Queensland. Boulia was proposed to demonstrate the effectiveness of the fuel as it had a good mix of old and new engines, giving a credible trial at a load that was typical of the rest of Ergons fleet. Based on before and after thermal efficiency measurements, the data collected showed average fuel efficiency to be slightly better than the purported figure. This level of performance was sustained after many months of successful operation.

Caltexs support has been with Ergon all the way, and its strong technical capabilities and experience is something on which Ergon Energy places a high value. From a supplier management perspective, the Caltex relationship sets the benchmark against which all other Isolated System suppliers are compared.

Queensland: 5 Tait Street, Toowoomba Qld 4350 | PO Box 7009 Toowoomba South Qld 4350 | 07 4614 4300

Brisbane: PO Box 2017 Graceville Qld 4075

Victoria: 7 Kearney Street, Bayswater VIC 3153 | PO Box 888, Lilydale VIC 3140 | 03 9720 3289

[email protected] | geigergroup.com.au

Geiger Group has a proven track record of delivery in our key markets which include mining, oil and gas, civil, commercial and industrial construction, rail and energy sectors.

The Geiger Group vision for all staff is Work Safe, Home Safe.

High and low voltage distribution works including overhead and underground Underground reticulation Commercial and industrial electrical works including new builds and refurbishments Earthworks, excavation and civil works including remediation and new works Communication and data installation Project management works

Established in 2007, Geiger Group is an infrastructure business providing electrical, civil, telecommunications and ancillary works in Queensland and Victoria from our Toowoomba, Brisbane and Melbourne offices, with capability nationally.

Manage and deliver:

Work Safe, Home Safe.


w w w. e r g o n . c o m . a u 4 3

Queensland: 5 Tait Street, Toowoomba Qld 4350 | PO Box 7009 Toowoomba South Qld 4350 | 07 4614 4300

Brisbane: PO Box 2017 Graceville Qld 4075

Victoria: 7 Kearney Street, Bayswater VIC 3153 | PO Box 888, Lilydale VIC 3140 | 03 9720 3289

[email protected] | geigergroup.com.au

Geiger Group has a proven track record of delivery in our key markets which include mining, oil and gas, civil, commercial and industrial construction, rail and energy sectors.

The Geiger Group vision for all staff is Work Safe, Home Safe.

High and low voltage distribution works including overhead and underground Underground reticulation Commercial and industrial electrical works including new builds and refurbishments Earthworks, excavation and civil works including remediation and new works Communication and data installation Project management works

Established in 2007, Geiger Group is an infrastructure business providing electrical, civil, telecommunications and ancillary works in Queensland and Victoria from our Toowoomba, Brisbane and Melbourne offices, with capability nationally.

Manage and deliver:

Work Safe, Home Safe.

Employees: 150Established: 2007 in Toowoomba, QLDIndustry: Geiger Group provides Electrical, Civil, Telecommunications and Ancillary works with works being completed across Australia for some of Australias leading electrical, gas and civil suppliers.Services: Works from high and low voltage and underground works, earth works and civil works to data installation. Project management and technical advice.Ongoing Projects: Geiger Group are industry leaders in contracting services for overhead and underground electrical distribution network assets. Our key markets are Queensland and Victoria with National capabilitiesWebsite: www.geigergroup.com.au

SUPPLIER PROFILEGEIGER GROUP

We spend all our energy forgingGreg Sewell Forgings are honoured to be included as part of the nuts

and bolts make-up behind Ergon Energys streamlined supply chain and are proud of the strong and lasting relationship that we have

forged together.

For over 30 years now, Greg Sewell Forgings has been manufacturing and supplying quality steel forged & fabricated

products to the Australasian market.

FFor all of your fastener and line hardware accessory requirements or to find out more about Greg Sewell Forgings, please contact our National Sales Manager Mr Robert Borg on (02) 8814 5990 or

email: [email protected]

Experience in forging

www.gsforgings.com


w w w. e r g o n . c o m . a u 4 5

of business, said Billing.When everyone is bringing

something to the table, one idea might spur another. We encourage that.

Putting innovation into action For Ergon Energy, company-

wide collaboration is a key component behind one strategic focus: exploring new possibilities for collecting, consuming and conserving energy.

One example of this is the utilization of batteries.

Were seeing that batteries are We spend all our energy forgingGreg Sewell Forgings are honoured to be included as part of the nuts

and bolts make-up behind Ergon Energys streamlined supply chain and are proud of the strong and lasting relationship that we have

forged together.

For over 30 years now, Greg Sewell Forgings has been manufacturing and supplying quality steel forged & fabricated

products to the Australasian market.

FFor all of your fastener and line hardware accessory requirements or to find out more about Greg Sewell Forgings, please contact our National Sales Manager Mr Robert Borg on (02) 8814 5990 or

email: [email protected]

Experience in forging

www.gsforgings.com

Greg Sewell Forgings Pty Ltd is a major manufacturer and supplier of specialty, high and low volume components with a diverse range of capabilities. We have produced thousands of different components from low grade carbon through to high end stainless steel to meet the high requirements from the Power Industry, Mining, Rail, Agricultural, Automotive and the Fastener industry. Our flexibility allows us to offer single run low-volume to high-volume production at competitive prices.A cornerstone of our business practice is to build mutually beneficial partnerships with our customers and suppliers, and to continually seek improvements for us and our customers through innovation and excellence. To this end Greg Sewell Forgings Pty Ltd has adopted the AS/NZS ISO 9001:2008 Quality Management System.

Website: www.gsforgings.com

SUPPLIER PROFILE GREG SEWELL FORGINGS

Whether you run a fleet of 5 or 10,000 vehicles, sgfleet is the answer.

sgfleet will tailor the right package for you with flexible finance arrangements.

Corporate fleets Government fleets Small to medium enterprise Salary packagingPassenger and light commercials Heavy commercials MMobile equipment Fleet management

SG Fleets industry leadership and strong business performance is built on the companys major competitive assets: exceptional relationships with customers through outstanding service quality, the ability to develop our offering through innovation, and the skills and experience ofof our people.

www.sgfleet.comVisit our website: 1300 138 235Call us on:

Driving Fleet Innovation

SUPPLIER PROFILE

SG FLEET GROUP LIMITED

SG Fleet Group Limited is one of Australias leading specialist providers of fleet management, vehicle leasing and salary packaging services. SG Fleet has a presence across Australia, as well as in the United Kingdom and New Zealand. The company employs over 400 staff and has more than 90,000 vehicles under management. SG Fleet listed on the Australian Securities Exchange in March 2014.

SG Fleet offers an extensive range of fleet management, leasing and salary packaging solutions to corporate and government customers, as well as heavy commercial fleet management and leasing services. Salary packaging solutions provided by the company include novated leases and associated vehicle management services for customers employees, as well as a range of other employee benefits.

The company has a unique position in the marketplace, built on the experience, product expertise and commitment of its team. SG Fleet prides itself on the strength of its relationships with blue chip corporate and government customers. These relationships have been built on a customer-centric approach to service delivery and the development of bespoke but scalable solutions to meet the needs of individual customers.

Constant innovation allows SG Fleet to provide its customers with an industry-leading proprietary technology platform that enables highly advanced fleet management capabilities. The company continually upgrades its solutions and introduces additional products and services to its range.

Management: Robbie Blau, Chief Executive Officer Kevin Wundram, Chief Financial Officer Andy Mulcaster, Managing Director, Australia Website: www.sgfleet.com

Whether you run a fleet of 5 or 10,000 vehicles, sgfleet is the answer.

sgfleet will tailor the right package for you with flexible finance arrangements.

Corporate fleets Government fleets Small to medium enterprise Salary packagingPassenger and light commercials Heavy commercials MMobile equipment Fleet management

SG Fleets industry leadership and strong business performance is built on the companys major competitive assets: exceptional relationships with customers through outstanding service quality, the ability to develop our offering through innovation, and the skills and experience ofof our people.

www.sgfleet.comVisit our website: 1300 138 235Call us on:

Driving Fleet Innovation

Compact MV SubstationsSpecial Transformers Monitoring and Control Solutions

Power Transformers (550MVA) Special ApplicationsDistribution Transformers (5,000kVA)

FOR LIFEBUILT SMART

THE TRANSFORMER PEOPLE

For more information about our products and services,

please visit www.wtc.com.au


w w w. e r g o n . c o m . a u 4 9

part of our future, said Billing when explaining the companys ongoing partnership with Mitsubishi.

In 2012, the company purchased six Mitsubishi electric vehicles (EVs) and ran trials in Townsville over an 18-month period to understand customer acceptance of EVs and the eco system that supports them.

We were able to examine how these vehicles were used, including how and when they charge, in order to better understand their impact on our network, Billing said.

Ergon Energy recently secured another deal with Mitsubishi to integrate eight Mitsubishi Outlander

plug-in hybrid electric vehicles (PHEVs) into their fleet, as well as finalizing a lease offer to employees that could see up to an additional 100 EVs provided for use later in the year.

From an electricity perspective, the use of EVs is a natural synergy, Billing said. Its the beginning of a new role of technology in the energy sector: Why wouldnt we be on the ground floor running?

While the partnership with Mitsubishi is a great starting point, its only the tip of the iceberg for Ergon Energy.

In July, Ergon Energy announced it was working with the government

Compact MV SubstationsSpecial Transformers Monitoring and Control Solutions

Power Transformers (550MVA) Special ApplicationsDistribution Transformers (5,000kVA)

FOR LIFEBUILT SMART

THE TRANSFORMER PEOPLE

For more information about our products and services,

please visit www.wtc.com.au

Established in 1933 with a proud history, Wilson Transformer Company is a leading specialist in the delivery of transformer solutions. From our manufacturing base in Australia, we deliver solutions to a wide variety of industries and customers around the world including electricity generators, transmission and distribution organisations as well as variety of heavy and light industrial users.Within our product range, our state of the art facilities are equal to the best the world has to offer. By using the latest design software, analytics and manufacturing technology, we engineer and manufacture our products in clean work environments incorporating strict quality control measures. We also have a dedicated team of people for field operations and support services.Through our world-class capabilities, specialist knowledge and proven reliability, our customers can be assured of a quality outcome. We are building smart for life solutions and this means performance you can rely on.Website: www.wtc.com.au

SUPPLIER PROFILE WILSON TRANSFORMER COMPANY

PERFORMANCE SOLUTIONS FOR

ELECTRICITYGASWATER

UASG is Australias leading provider of retail meter reading and installation services in the electricity, gas and water sectors, and of end-to-end essential maintenance and inspection services in electricity distribution.

Our speciality brands, Skilltech and UAM, partner with customers to offer safe, compliant and reliable services. This commitment is evidenced by our 95% client renewal rate and outstanding safety record.

Our essential services support Ergon Energy every day by:

Inspecting and maintaining 250,000 poles and 50,000+ street lights a year in urban and remote areas

Conducting an Annual Road Patrol Program of 30,000+ street lights

Supplying quality field metering services, including reading, special reads, disconnections and reconnections to 2.4+ million accounts each year

Contact us today:1300 377 [email protected]


w w w. e r g o n . c o m . a u 5 1

PERFORMANCE SOLUTIONS FOR

ELECTRICITYGASWATER

UASG is Australias leading provider of retail meter reading and installation services in the electricity, gas and water sectors, and of end-to-end essential maintenance and inspection services in electricity distribution.

Our speciality brands, Skilltech and UAM, partner with customers to offer safe, compliant and reliable services. This commitment is evidenced by our 95% client renewal rate and outstanding safety record.

Our essential services support Ergon Energy every day by:

Inspecting and maintaining 250,000 poles and 50,000+ street lights a year in urban and remote areas

Conducting an Annual Road Patrol Program of 30,000+ street lights

Supplying quality field metering services, including reading, special reads, disconnections and reconnections to 2.4+ million accounts each year

Contact us today:1300 377 [email protected]

UASG provides performance solutions for electricity, gas and water networks. With 1,500+ employees, 900+ vehicles and more than 24 years experience, we deliver quality specialist services covering: Meter reading, installation and Advanced Metering Infrastructure (AMI) Energy and water efficiencies Asset inspection/monitoring Data capture Electrical overhead construction/maintenance Pole reinforcement services Vegetation management Lighting efficiency programs LIDAR Survey, design and drafting

Website: [email protected]

SUPPLIER PROFILEUASG

Brisbane | Sydney | Melbourne | Adeleide | Perth

P: 1300 LINCON E: [email protected] www.lincon.com.au

Elevated Work Platform Specialists

Latest in EWP Technology Reliable Equipment From 12m to 103m

Back Up Service Australia Wide

Our Fleet Includes Live Line

& Under Bridge Inspection Units

Tel: +61 7 4061 6426

Transportation and Logistics, container movement, general freight deliveries with the inclusion of crane

trucks and truck mounted forklifts and oversize loads.

Meeting Australian Safety Standards, Our Trucks are equipped with

Tracking Systems and Cameras.

www.innisfailcarrying.com.au


w w w. e r g o n . c o m . a u 5 3

to create an EV highway with Australias first solar-powered fast-charging station.

This is an opportunity to create a need in the market, said Billing. If you wait for everyone to get electric vehicles, it wont workit will be too late. We needed to be similar in our thinking of leading by example and getting the ball rolling.

Billing also revealed the company

is about to purchase three Battery Packs for their hydraulic elevated work platform field trucks. For us, the payback is reducing our diesel consumption while also eliminating the noise these machines make.

Not stopping there, Ergon Energy is also seeking to utilize alternative energy solutions in other areas of its businesses.

Were actually putting batteries on

The worlds first shear-bolt action mid-span splice

MTRS from Sicame Australia

- the new mechanical tension repair splice has been developed to overcome many of the issues effecting poor jointing of bare overhead

conductors with either compression, helical or spring type splices.

HHigh-torque, shear-head bolts apply pressure points on the conductor via an internal pressure plate in a unique wave-like pattern along its length, thus

ensuring superior and reliable mechanical and electrical performance.

[email protected] | www.sicame.com.au

SICAME AUSTRALIA HQ23-25 Union CircuitYatala, QLD, Australia(+61) 7 3807 7022(+61) 7 3807 7522

SICAME AUSTRALIA NSW4/36 Holbeche RoadArndell Park, NSW, Australia(+61) 2 9621 3155(+61) 2 9622 7120

Email: [email protected]: www.stirlinghelicopters.com.au

Phone: 07 4937 1180 Mobile: 0429 371 180

CONTACT:Servicing Central Queensland and South West Queensland

We offer extensive helicopter charter services to the following industries:

Defence and Government Agriculture

Mining, Gas and Power Corporate and Tourism

Central Queenslands leading helicopter company operating a broad range of helicopter fleet and offering a vast range of professional helicopter services with very experienced and professional pilots.

STIRLING HELICOPTERS

EXPERIENCED PILOTS AND AN IMPECCABLY MAINTAINED FLEET


w w w. e r g o n . c o m . a u 5 5

the end of remote and rural sections of the electricity network and using them as support in times of high load, said Billing. The benefits are immense because they dont need to be augmented and they store energy in the off-peak times and then feed back into the network during high-peak times.

According to Billing, the company is in the process of working with

some developers to implement batteries in subdivisions as well. The outcome could potentially build a type of distributed generation network in a housing subdivision, which would provide an array of benefits to customers.

Ergon Energy is also building its retail business to reflect more opportunities for solar technology.

In August, Ergon Energy forged

ERGON ENERGY

an alliance with Californian electricity storage developer Sunverge Energy to launch a limited commercial rollout of its power systems in Queensland homes. The partnership involves installing SunPower solar panels and Sunverge energy storage systems in 33 homes in Toowoomba, Townsville and Cannonvale in a program that will receive $400,000 of funding by the Australian Renewable Energy Agency.

The power system is comprised

of back-up power, a six-kilowatt inverter with 11.6 kilowatt-hours of energy and communications, and control capability that allows the company to collectively manage the system to increase the efficiency of power supply on its grid.

This partnership will help us better understand the technology and where we stand in terms of our network. Its helping us model what our future network could look like, Billing explained.

UGL provides whole of life asset solutions for large and complex power systems across Australia, New Zealand and Asia, from electrical substations and transmission lines to advanced power stations.

Throughout Queensland, UGL has been a proud supporter of Ergon Energy for 8 years working together to deliver 62 substations and associated infrastructure to provide electricity to 734,000 customers in homes and businesses across regional Queensland.

The key elements to UGLs success are our close working partnerships and decades of experience in delivering engineering construction and O&M solutions to our clients.

www.ugllimited.com

Maintaining todays assets, creating tomorrows power solutions

E N E R G Y

w w w. e r g o n . c o m . a u 5 7

ERGON ENERGY

Thinking forward A major initiative Ergon Energy has undertaken is in the form of disaster relief. The company is currently running a series of scenarios to better understand the network in the event of natural disasters, as well as learning how it could improve.

Right now were doing two things, the first of which is running a series of exercises to test the readiness of our network and whether we need to reconfigure it or change critical aspects to make it more resilient in the future, said Billing.

The second thing is technology. Were looking to interact with a number of technologies such as crowdsourcing and social media to find out if these are applicable for us.

The company is also holding workshops to better understand response perspectives from people and companies with actual experience dealing with these disasters.

Input from Rod West from Entergy in the United States has been paramount for us, Billing. His experience from Katrina and lessons learned were really insightful and important for us to consider with our network.

All of these workshops, exercises and reports are better preparing us for the future, said Billing. Were thinking ahead and about where we want to be in 2020.

With Ergon Energy at the helm, the people of Queensland are in good handstoday and in the future.

Company Information

I N D U S T RY

Utilities; government

agency

H E A D Q U A RT E R S

420 Flinders St

Townsville, Queensland,

Australia

F O U N D E D

1999

E M P L O Y E E S

4,500

P R O D U C T S /

S E R V I C E S

Utilities; government

agency

5 9

ERGON ENERGY EXECUTIVE SPOTLIGHT

6 0 M o n t h 2 0 1 4

COMPANY NAME

Ian McLeod is responsible for the business overall direction and, ultimately, for meeting the service delivery expectations and requirements of Ergon Energys customers, the community and regulators, as well as the business and financial objectives of shareholders. Ian brings extensive electricity industry experience to Ergon Energy; experience gained through management roles in the private contracting industry, in Powercor Australia and the State Electricity Commission of Victoria and Ergon Energy. Ian is a director of Energy Supply Association of

Australia and is Chairman of Ergon Energy Queensland Pty Ltd, SPARQ Solutions Pty Ltd and Ergon Energy Telecommunications Pty Ltd.

David Edmunds is responsible for the safe, efficient and effective utilization of Ergon Energys electricity distribution and associated communications networks and, where necessary, the delivery of new major infrastructure projects or other non-traditional solutions. He brings experience in both the corporate and public sector, to the executive including executive management, engineering, operations, and contracting, as well as proven leadership capabilities.

IAN MCLEOD Chief Executive Officer

6 0 O c t o b e r 2 0 1 5

THE WHOS WHO OF ERGON ENERGY

DAVID EDMUNDS Executive General Manager, Network Optimization

S E C T O R

www.companyur l .com 6 1

COMPANY NAME

David has held senior roles in the electricity and gas industries of New Zealand, as well as in local government.

Peter Billing is responsible for the operational effectiveness of the distribution business and for the safe, efficient operation and maintenance of Ergon Energys network. He is also responsible for supply to Ergons isolated communities and the commercial delivery of modular infrastructure and generation solutions. He brings a wealth of industry, leadership and change management experience to the executive, from trade roles to management. Peter was directly

involved in the deregulation of the electricity industry in South Australia in the 1990s. He is on the board of Energy Skills Queensland.

Mike Hutchens is responsible for managing the financial and commercial aspects of Ergon Energys business, including strategic procurements, as well as the business legal counsel and risk and assurance program. Mike has significant accomplishments in financial and general management and has worked for a diverse range of businesses, including publicly listed multinational corporations, predominantly in the mining industry, as well as large professional services firms.

w w w. e r g o n . c o m . a u 6 1

E X E C U T I V E S P O T L I G H TTHE WHOS WHO OF ERGON ENERGY

PETER BILLING Executive General Manager, Customer Service

MIKE HUTCHENS Chief Financial Officer, Finance and Corporate Services

6 3

UGLAdapting its

supply chain The diversified services firm, which specialises in the delivery of critical assets within Australia, has been in

the process of switching its supply chain methodology for the benefit of its end users.

Written by: Sam Jermy Produced by: Vince Kielty

6 4 O c t o b e r 2 0 1 5

UGL

UGL Limited has been on a journey to fundamentally change its operations, in order to get ahead of the industry curve and continue to see the $2.3 billion business grow.

The company, which trades on the Australian Securities Exchange, is a leading provider of end-to-end outsourced engineering, asset management and maintenance services with a diversified end-market exposure across the core sectors of Rail, technology systems, power, resources, water and defence.

With over 8,000 employees

(including subcontractors) across Australia and South East Asia, the company partners with some of the worlds largest blue-chip companies, government agencies, and private enterprise/public institutions.

It is not an easy task to revise the supply chain strategy of any company, as it is intrinsically linked to daily operations. Dean Newman, Head of Supply Chain for Rail Freight at UGL, explained the Rail Freight business journey in detail. He said: Our underlying fundamental principle is the maintenance and construction of assets; thats the

UGLs ultimate objective is a dynamic supply chain that is responsive to its customers.

S U P P LY C H A I N

w w w. u g l l i m i t e d . c o m 6 5

UGL

UGLs Rail division falls under the Rail, Defence and International (RDI) umbrella.

same regardless of sector. With regard to Rail, the building of assets has changed; theres not the mining boom that there once was and the construction of heavy rolling stock has declined as a result.

Importantly, UGL currently remains the only builder of locomotives in Australia. In the build space, we are General Electrics representative in-country. We build locomotives either as a co-OEM (Original Equipment Manufacturer) product or as a GE product under licence supervision. We have a co-OEM product that we build with them; the C-44 locomotive. As the landscape changed, where we were a large prolific builder of locos and wagons, now there is far greater emphasis on the maintenance of assets.

Importantly, UGL Rail currently remains the only builder of locomotives in Australia. In the build space, we are General Electrics representative in-country.

1 Waterloo StreetBennetts Green NSW 2290www.candjsheetmetal.com.au

Ph: +61 2 4904 0000Fax: +61 2 4947 1166Email: [email protected]

Laser and Water Jet Cutting CNC Pressing, Punching & Folding Stainless Steel, Aluminium and Mild

Steel Fabrication, by Certified Welders CNC Machining / CNC Milling Sandblasting Spray Painting to Automotive Quality

WE ARE SPECIALISTS IN:Quality Management System ISO 9001:2008

C & J Sheetmetal Fabrications started in 1990 and over the past 25 years our Company has grown due to providing Excellent Customer Service, Quality Products and On Time Delivery.We service the Rail, Mining, Defence, Industrial and Engineering sectors in Australia. We currently have an Australia wide client base, which generates repeat business.

One-Stop Shop Approach

C&J SHEETMETAL FABRICATIONS

UGL S U P P LY C H A I N


Strategic shift As such, the supply chain that underpins the Rail freight business has had to shift radically. The primary shift has been moving away from an inventory push methodology associated with materials pushed into the supply chain, to support the build of locos and wagons: UGL now has to be far more dynamic, adaptive and aligned to what the customers expect from the firm.

Newman said: We hold a unique position now. Most of the locomotive manufacturers exited in the last 12 to 18 months because of the low demand. So in todays world were adopting an inventory pull methodology. Over the last 12 months UGL has been driving the implementation of a really robust sales and operations planning (S&OP) process, where we endeavour to get

Dean Newman - Head

of Supply Chain for Rail

Freight at UGL

1 Waterloo StreetBennetts Green NSW 2290www.candjsheetmetal.com.au

Ph: +61 2 4904 0000Fax: +61 2 4947 1166Email: [email protected]

Laser and Water Jet Cutting CNC Pressing, Punching & Folding Stainless Steel, Aluminium and Mild

Steel Fabrication, by Certified Welders CNC Machining / CNC Milling Sandblasting Spray Painting to Automotive Quality

WE ARE SPECIALISTS IN:Quality Management System ISO 9001:2008

C & J Sheetmetal Fabrications started in 1990 and over the past 25 years our Company has grown due to providing Excellent Customer Service, Quality Products and On Time Delivery.We service the Rail, Mining, Defence, Industrial and Engineering sectors in Australia. We currently have an Australia wide client base, which generates repeat business.

One-Stop Shop Approach

C&J SHEETMETAL FABRICATIONS

Established in 1990 C & J Sheetmetal Fabrications enjoys a reputation as one of most respected names in our field. We are a family owned Company that has been running for over 25years.Our vast industry knowledge, highly experienced tradesmen and state of the art equipment allows us to offer our customers options not normally available from one location.We carry a wide range of sheet and plate in stock and can respond to your urgent requirements.C&J Sheetmetal are committed to offering a quality product and better service at very competitive prices. We conform to a Quality Management System ISO 9001:2008.Website: www.candjsheetmetal.com.au

SUPPLIER PROFILEC&J SHEETMETAL FABRICATIONS

UGL is a leading provider of end-to-end outsourced engineering, asset

management and maintenance services



UGL

marketing information from customers (internal/external), look at historical consumption and insert a predictable variability factor, because in the maintenance business youre always going to have emerging type work. Its all about trying to build the right forecast model.

Our ultimate objective is a dynamic supply chain that is responsive to our customers. But more importantly it will become a fundamental enabler for the reduction of inventory held within the business and will improve the ROCE (return on capital employed), making sure inventory is not on shelves being lazy; it is actually working for us.

Two years ago we were very much in the build space and now that shift has seen the supply chain change to the maintenance of assets instead. Historically we had a business referred to as the National Freight Parts Sales, which had rendered supply chain capability.

UGL has now implemented a more robust supply chain focusing on operational efficiency, core competency, and total quality management across its Rail division. Inventory management has also improved, with sales and operational

Dean Newman

The outlook is positive in that well continue to diversify and serve our customers with exceptional service, and as we migrate from a push to pull inventory strategy it will help us to help them.

base2 is an original equipment manufacturer (OEM) of communications and control room hardware and software. From product inception, electronic design, mechanical design, testing, rmware and software, through to production, all engineering and manufacturing services are performed in-house.

The base2 ICE, In-Cab Communications Equipment is a modular communications device speci cally designed for the rail industry. The base2 VCS is a control room system for integrating voice and data communications systems into a touchscreen operator console. The base2 National Train Communications System (NTCS) is used for all train control communications on the Australian De ned Interstate Rail network and selected regional areas.

www.base2.com.au

28 Pritchard Road, Virginia, Queensland 4014, AustraliaPh: +61 7 3637 5444 | Fax: +61 7 3637 5445 | Email: [email protected]

End-to-End Mobile Communication Solutions

UGL S U P P LY C H A I N


planning helping to move from the push to pull methodology in response to changing market needs.

Implementation in Australia The Australian engineering and Rail sectors spent a lot of time where a push supply chain strategy was the best option according to Newman, because it was simply more important to keep customers rolling stock moving in industries such as mining. Compared with the FMCG (fast moving consumer goods) world, which has a far more mature advancement of pull strategies, mining and Rail have been slower on

the uptake.Newman suggests the Rail

industry in Australia is now also awakening to this pull methodology though. He said: Its been a tough road at times because it has been a paradigm shift from the way in which the business operates, and the entire mindset has to change. Were moving from buying just in case and trying to push that to a market where we move to a strategy that says no, lets understand what we will need and when we will need it.

Implementation of pull methodology on inventory stocking is a key focus for the supply chain

base2 is an original equipment manufacturer (OEM) of communications and control room hardware and software. From product inception, electronic design, mechanical design, testing, rmware and software, through to production, all engineering and manufacturing services are performed in-house.

The base2 ICE, In-Cab Communications Equipment is a modular communications device speci cally designed for the rail industry. The base2 VCS is a control room system for integrating voice and data communications systems into a touchscreen operator console. The base2 National Train Communications System (NTCS) is used for all train control communications on the Australian De ned Interstate Rail network and selected regional areas.

www.base2.com.au

28 Pritchard Road, Virginia, Queensland 4014, AustraliaPh: +61 7 3637 5444 | Fax: +61 7 3637 5445 | Email: [email protected]

End-to-End Mobile Communication Solutions

Established in 1987, base2 has been responsible for design, manufacture and software for numerous control room systems worldwide. Products are developed primarily for the Transport and Life Safety industries. Engineering and manufacturing are performed at base2 facilities in Australia. This includes mechanical manufacturing via Computer Numeric Controlled (CNC) equipment through to electronic assembly via an automated surface mount Printed Circuit Board (PCB) production line.Current ongoing projects include the National Train Communications System (NTCS), the Victoria Regional Rail Communications Network (RRCN) and ICE integration with Sydney GSM-R Digital Train Radio System (DTRS).Website: www.base2.com.au

SUPPLIER PROFILEBASE2

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function, as has been the rights of the customer, be that internal or external. An internal customer is where we are facilitating movement of materials for one of our maintenance or build facilities that maintain or build locomotives all over Australia. Externally, some customers maintain their own assets, so they would procure their own materials from us to facilitate their asset management.

At the same time, UGL has been incredibly focused to ensure this operational shift does not result in a decline in its customer service

offering. This has been an absolute deliverable for the firm as it has transformed the supply chain over the last year. Competition is no longer between companies, its between supply chains. added Newman. It is difficult to compete on price, brand loyalty is diminishing, there are low-cost economies all over the world; but a supply chain that delivers the right product, in the right place at the right time, and for the right customer in the right quantity and quality well, you cant beat that.

Xxxxxxxxxx

S E C T O R


COMPANY NAME

Key differentiators UGLs Rail division, which falls under the Rail, Defence and International (RDI) umbrella, has a strong philosophy of being an employer of choice not circumstance. Despite the reduction in the manufacturing space, the company has continued to evolve its maintenance division though diversification of services.

This has resulted in a new component overhaul division (COD), which is able to leverage its large manufacturing and workshop facilities for wider use. Split into mechanical and electrical, the new division also utilises the strong

partnerships it has built in mining and Rail with the likes of GE, Pacific National, Aurizon, Rio Tinto and several other similar organisations.

Newman said: Many of our customers have some ability to do their own in-house maintenance in their own right. Thats why we sell parts to them as our external customers. But with the (COD) division we service, repair, refurbish and overhaul equipment as new.

One of the greatest technology advancements UGL has managed to achieve in the last two years and successfully rolled out over the last six months has been our mobility

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UGL

solutions. We have invested heavily into Service and Asset Management Mobility (SAM) to ensure work execution efficiency and quality is maximised.

SAM Mobility is a direct user interface for workshop employees to UGLs quality and material resource planning. Mobility provides portability via an iPad (in a rugged case) so that technicians can perform routine tasks, recognise and create on condition tasks, conduct and record strip and quote tasks, review and enter

measurement points, and record serialised equipment changeovers. UGL is now able to see all open work for rolling stock while out in the field, complemented by 24 hour support crew.

It has changed the world of our service technicians, theyre now able to create service orders, and give real-time updates. It drastically reduces the risk of errors, has improved stakeholder engagement and provides excellent supply chain visibility. Giving technicians access to our systems and engagement of



UGL

communication tools, like having email accounts and internet access has had a positive employee engagement spinoff which is truly wonderful, added Newman.

If this wasnt impressive enough, UGL has also brought its own unique industry product to the market. The FlexiCurve bogie is UGLs premium locomotive bogie, providing significant benefits in locomotive performance, reliability and maintainability. FlexiCurve is a family of bogies for applications ranging from 90t, 1 metre Narrow Gauge through to 160t, 1.7 metre Broad Gauge. UGL won the Regional (Newcastle) Engineering Excellence Award for this earlier in 2015. Developed in Australia by UGL Limited, the FlexiCurve has become GEs bogie of preference when selling locomotives out of North America, something the company is incredibly proud of.

Asked about what the future holds for UGL, Newman concluded: The outlook is positive in that well continue to diversify and serve our customers with exceptional customer service, and as we migrate from a push to pull inventory strategy it will help us to help them. Well also be able to take a far greater level of proactive, pragmatic deliverables as we move forward with our technological solutions, so were in a very strong position in that regard.

When the world and its industries change once more, UGL beyond all others will be very well positioned to maximise the upturn potential.

Company Information

I N D U S T RY

Supply Chain

H E A D Q U A RT E R S

Level 5, 40 Miller St

North Sydney

NSW, Australia, 2060

F O U N D E D

UGL originated as a

small engineering

business in Western

Australia in the late

1960s

E M P L O Y E E S

8,000

R E V E N U E

$2.3 billion

7 7

SEANZ

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SEANZ

SEANZ develops industry capability and capacity through advocacy, policy, industry standards, events, connecting industry professionals and collaborating with electricity industry stakeholders.

SEANZ is an independent entity representing organisations from SMEs to global corporations, from those in the lab, to those in the supply chain from manufacturers to system integrators to finance organisations as well as some utilities and system operators, who understand and have embraced the distributed generation (DG) business

model - represented by solar PV, wind turbines and mini hydro.

SEANZ represents the interests of all members in the industry and works collaboratively with many organisations to achieve positive and sustainable outcomes.

Mission Statement Drive the growth of onsite renewable electricity generation in New Zealand by developing capacity and capability of the industry Keep abreast with the technological change in the industry to include smart grid and associated

E N E R G Y

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SEANZ

Brendan Winitana, Chairman

technology and services

The NZ Scenario Starting from a low base, the number of solar power systems across the country has more than tripled in the last 18 months, a 220 percent increase.

This growth has is creating challenges for the electricity industry. SEANZ is committed to working collaboratively across the industry to ensure that a 21st Century grid is affordable, fit for purpose, and benefits consumers and all those involved in the industry.

On the changes happening As is the case around the world, consumers are moving to solar because it offers specific values that many traditional power companies cannot and that will continue unless those power companies respond to consumer demand.

Regulatory and legislative reviews are underway in New Zealand of the rules that govern distributed generation, pricing, and the role of distribution companies. SEANZ is actively involved in this conversation and submits its position on all of these reviews.

Many fear that consumers with

Rebecca George, Administrator/Board Secretary

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COMPANY NAME

solar and batteries will defect from the grid, however at SEANZ, we are advocate for a market design which accepts consumers have the right to interconnect and operate small-scale generation-plus-batteries under a fair, transparent charging regime.

In particular this relates to the ability to sell surplus distributed generation energy locally and not be forced to sell to a wholesale market.

There are benefits to keeping solar customers grid-connected

but the network and the services it offers will have to change. At SEANZ we believe that pricing structures will have to change to reflect the changing nature of the distribution network but this can be a win-win for consumers and the companies that connect us to the grid. But these companies will need to change their business models rather than just increase prices if they are to remain competitive and prevent consumers with their new found storage ability defecting from the grid.

S E C T O R

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COMPANY NAME

As self-managing micro grids become possible, distributors could re-enter the electricity market at a local level, providing them a replacement revenue stream.

Distributed generation and storage provides an opportunity to strengthen the electricity network and provide a flexible yet resilient grid. Fair pricing can recognise and reflect both the costs of grid upkeep and the value of distributed generation.

SEANZ SolarSMART is the Solar

PV and Storage Conference in New Zealand

The SEANZ SolarSMART Conference is scheduled for November 13-14t at the Novatel in Rotorua. These two information- and event-packed days are not to be missed!

SEANZ SolarSMART is about building a smart industry using smart technology, smart strategies and smart planning for smarter and better outcomes for you - think smart inverters, smart data, smart

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SEANZ

access to data, data IP, energy services, smart ways to assist industry, empowering your business and clients.

The electricity landscape is changing more than ever. SEANZ members have significantly contributed to that change and are also impacted by it. Consumer led technologies are changing business models for all players where nobody is immune. Record growth is shaking up the market and more parties are taking note utilities,

regulators, the finance industry and others looking to participate and respond.

Regulatory reform over the forthcoming years will impact the industry and your business more than ever before. Your voice through SEANZ, is absolutely critical in this discussion.

Join us and participate in the industry forum that is SEANZ SolarSMART.

SEANZ SolarSMART includes the Suppliers Expo for manufacturers,

E N E R G Y

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SEANZ

importers and wholesalers to allow installers and other parties understand new technologies and offerings.

SEANZ SolarSMART features five Conference Streams with keynotes and local speakers on: The Industry Today the SEANZ view, the global view, the government view, the utilities view and the non-solar PV believers view. Keynotes include an internationally renowned visionary leader in the solar industry and a luminary leader and founder of a leading manufacturer Changes 1 the regulatory situation in NZ, impacts, the outcomes and results of changes in other countries, the range of possible scenarios Changes 2 what Changes 1 means for utilities and you, the SEANZ plan Personal and Business Development hear from lea

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BRAUS October 2015

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