Strategy

STRATEGY, OPERATING ENVIRONMENT, PROSPECTS AND GUIDANCE

CIMIC is a world‐leading infrastructure, mining, services and PPP group. We have businesses in construction (CPB Contractors and Leighton Asia), mining and mineral processing (Thiess and Sedgman), operation and maintenance services (UGL), PPPs (Pacific Partnerships) and engineering (EIC Activities). Our mission is to generate sustainable shareholder returns by delivering innovative and competitive solutions for clients, and safe, fulfilling careers for our people. With a history since 1899, and more than 50,000 people in 20 countries, we strive to be known for our principles of Integrity, Accountability, Innovation and Delivery, underpinned
by Safety. CIMIC is well placed in geographies and markets that should continue to grow and support a broad range of opportunities for the foreseeable future.

OPERATING MODEL AND STRATEGY

CIMIC’s activity‐based businesses are focused on delivering construction, mining, mineral processing, operations and maintenance, PPP and engineering services. These services are delivered in Australia and select markets in Asia, the near Pacific, Southern Africa, and the Americas.

CIMIC’s strategy has the following key elements:

  • to be an engineering‐led, industry‐leading group with a balanced portfolio diversified by market sector, activity, geography, type of client, contract type, volume and duration. This diversification creates economies of scale, reduces earnings volatility, facilitates the management of risk and helps to create sustainable returns;
  • to offer integrated solutions through a complementary suite of capabilities for the entire life‐cycle of assets ‐ from development and financing to engineering, construction, mining, operations and maintenance;
  • to seek growth in adjacent and complementary markets, either organically or through acquisition;
  • to selectively export the Group’s capabilities into overseas markets which meet our governance, risk, growth and return
    requirements; and
  • to utilise common systems and processes to facilitate the sharing of innovation and knowledge.

Underpinning the strategy is the pursuit of operational excellence in terms of:

  • identifying value‐adding engineering solutions;
  • applying a disciplined approach to risk management;
  • rigorously managing cash;
  • maintaining tight control of costs; and
  • ensuring an uncompromising focus on safety.

Fundamental to the delivery of the strategy is the sustainment of a strong balance sheet, which supports organic growth and provides flexibility in capital expenditure, investments into PPPs, as well as strategic capital allocation opportunities including acquisitions.

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