Abigroup 2006 Year in Review by huangyuarong

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									     06
Annual Review
     ANNUAL REVIEW
                                                                                                             ABIGROUP 2006 ANNUAL REVIEW   1



                                                                   Our Mission
                                                                   Abigroup is strongly committed to delivering excellence
                                                                   to its clients through its engineering, building and asset
                                                                   development businesses.
                                                                   Through the experience and skill of our highly trained
                                                                   team, Abigroup consistently strives to deliver each
                                                                   project in a competitive and cost-effective manner on
                                                                   time, within budget and with an emphasis on quality,
                                                                   environmental initiatives and the safety of our workers




                                                                          Our Mission
                                                                   and all stakeholders.
                                                                   Abigroup is committed to sustainable profitability for
                                                                   the benefit of its workforce, its owner and its future
                                                                   growth and success.




CAPELLA APARTMENTS, NSW   ALBURY WODONGA HUME FREEWAY, NSW & VIC
2   ABIGROUP 2006 ANNUAL REVIEW




                  While recognised as a leading road builder, Abigroup is also involved in technically complex projects across various disciplines.
                  The Antiene Rail Coal Unloader is one example – requiring rail, mechanical, electrical and civil expertise.
Contents
                                             ABIGROUP 2006 ANNUAL REVIEW   3




 Contents

  Corporate History                      4
  Year in Review                         6
  Directors                              8
  Organisational Chart                   9
  Message from Managing Director        11
  Message from Finance Director         13


  Operations Report                     15
  Operations Review – Central Region    16
  Operations Review – Northern Region   18
  Operations Review – Southern Region   20
  Plant Report                          22
  Asset Developments                    24


  Safety First                          25
  Caring for the Environment            26


  Awards 2006                           28
  Our People, Our Strength              31
  Corporate Citizenship                 32



  Financial Summary                     35
4   ABIGROUP 2006 ANNUAL REVIEW




       Corporate History
                  Constructing Australia’s Future –
                  built on a long and proud history

                  WITH OUR STRONG, DEDICATED TEAM AND THE WEALTH OF KNOWLEDGE
                  ACqUIRED IN GOOD AND BAD TIMES, WE LOOK FORWARD TO CONSTRUCTING
                  AUSTRALIA’S FUTURE WHILE BEING PROUD OF OUR HISTORy AND
                  ACHIEvEMENTS TO DATE.

                  While Abigroup Limited today stands as one       contract for the M2 Motorway. With a host of
                  of Australia’s largest and most successful       further high profile successes, including the
                  construction contractors, our prominence is      technically complex Sydney SuperDome, by
                  a product of our ability to weather the storms   the late 1990s Abigroup was positioned as one
                  of an industry which has proven at times to be   of the industry’s strongest and most innovative
                  volatile and unpredictable.                      civil engineering contractors, builders and
                  Founded as G. Abignano in 1961, the company      project managers.
                  was listed on the stock exchange 20 years        In 2003, to further expand its operations and
                  later. An unsettled period – both in terms of    ability to participate in large infrastructure
                  the industry and the company’s management        developments, Abigroup sought a partner
                  led to a management buyout in 1988. Stable       with global power. This ultimately led to the
                  management and a strong and talented             group being acquired by Bilfinger Berger AG
                  workforce, under the leadership of Chief         in early 2004. As one of the world’s largest
                  Executive Officer John Cassidy, combined         multiservice construction groups, Bilfinger
                  with a name change to Abigroup marked            Berger’s backing has provided Abigroup with
                  the turning point for the company. While         access to the immense global resources of the
                  struggling against industry perceptions          organisation.
                  as a small player, the tenacity of the team      Throughout 2006, Abigroup’s story continued
                  proved Abigroup’s ability to deliver high        to unfold with unprecedented success across all
                  quality infrastructure projects on time and      areas of our civil and building operations. This
                  under budget, leading to its rapid growth        is set to continue throughout 2007 and beyond.
                                                                                                                      Pictured (L-R): Darrell Hendry, Chief Financial Officer
                  throughout the 1990s.
                                                                   With our strong, dedicated team and the
                                                                                                                      Bilfinger Berger Australia; John Kirkwood, General
                  Testament to the company’s status as a           wealth of knowledge acquired in good and           Manager Abigroup Contractors Northern Region;
                  respected, top-tier infrastructure provider
                  came in 1994 when Abigroup beat fierce
                                                                   bad times, we look forward to Constructing         Peter Brecht, Managing Director Abigroup Limited.
                                                                   Australia’s Future while being proud of our
                  competition to secure the $450 million           history and achievements to date.
                                          ABIGROUP 2006 ANNUAL REVIEW   5




AUSTRALIAN INSTITUTE OF BIOENGINEERING & NANOTECHNOLOGY, QLD
       Year in Review
6   ABIGROUP 2006 ANNUAL REVIEW




                  Year in Review

                                                           Abigroup announced preferred proponent for Tugun
                                                           Bypass through participation in PacificLink Alliance (qld)




                                                                                        January
                                                           Gold Coast pipeline won (qld)
                                                           Work commences on site at Geelong Bypass (vic)



                                    GEELONG BYPASS, VIC                                                                                                        PACIFIC HIGHWAY WORKS


                                                           Tugun Bypass contract signed
                                                           Work on Pacific Square Stage II commences (NSW)              Bonville Bypass, Pacific Highway bid successful (NSW)




                                                                                     February                                                                     May
                                                           Work starts on Pakenham Bypass (vic)                         Abigroup participates in World’s Greatest Shave to
                                                                                                                        raise funds for the Leukaemia Foundation
                                                                                                                        Construction of Horse Shoe Bend commences (vic)

                                   PAKENHAM BYPASS, VIC


                                                           Southern Region Building Division secures contract for a
                                                           new aged care facility – the Mornington Development




                                                                                            March
                                                           Commenced construction works at Mt Gravatt TAFE (qld)
                                                           Stage 1A
                                                           Mater Mackay Hospital works begin (qld)


                                    TUGUN BYPASS, QLD                                                                                                         CRAIGIEBURN BYPASS, VIC


                                                           David Jurd appointed Executive Director Operations,
                                                           Abigroup Limited                                             Craigieburn Bypass takes out MBA Award for




                                                                                                 April                                                              June
                                                           Nokia 3G project extended (NSW, vic, qld)                    Civil Construction (vic)
                                                           Work starts on Griffith University Student Centre (qld)      Abigroup participates in MS Fun Run
                                                                                                                        Acacia Ridge TAFE contract secured

                                      DAVID JURD ON SITE
                                                                                                                                                              ABIGROUP 2006 ANNUAL REVIEW   7




                                                       Abigroup announced preferred for Karuah to Bulahdelah
                                                       Sections 2 & 3 of Pacific Highway (NSW)




                                                                                                  July
                                                       Salisbury to Kuraby (Rail Alliance) commences (qld)
                                                       Abigroup purchases four new 773E trucks for conducting
                                                       mineral sand extraction at Iluka’s Douglas Mine (vic)


                        NEW TRUCKS FOR DOUGLAS MINE                                                                                                  EMPIRE & MUTUAL APARTMENTS, VIC

                                                       Chevron Stage 1 opens (vic)
                                                       Brunswick to yelgun celebrates joining of main bridge    Sydney University awards the largest single infrastructure




                                                                                       August                                              November
                                                       span over Brunswick River (NSW)                          project in its history to Abigroup Contractors (NSW)
                                                       Benambra Mine wins CASE Earth Award for sensitive        Abigroup/SKM/RTA alliance preferred proponent for one part
                                                       rehabilitation (vic)                                     of the $800m Hume Highway upgrade in southern NSW
                                                       Last of 401 bridge beams placed at Wodonga as part of    Abigroup wins a National Engineering Excellence Award for
                                                       Albury Wodonga Hume Freeway Project (vic)                its work on the M7 Motorway (NSW)
                            CHEVRON APARTMENTS, VIC

                                                       Empire and Mutual Apartments open (vic)
                                                       Abigroup Joint venture wins $1.88 billion Gateway




                                                                             September
                                                       Upgrade Project (qld)
                                                       Capella apartments officially open (NSW)
                                                       Abigroup takes out Bradfield Award at Engineering
                                                       Excellence Awards (Sydney Division)
                                                       Abigroup rowing team wins Construction Cup
                            CAPELLA APARTMENTS, NSW                                                                                                               M7 MOTORWAY, NSW


                                                       Abigroup becomes a Registered Training Organisation
                                                       and begins offering fully accredited courses in mining
                                                                                                                Abigroup named as a finalist in the prestigious Australian




                                                                                         October                                            December
                                                       and civil construction
                                                                                                                Construction Achievement Awards for the M7 Motorway.
                                                       Centre for Clinical Research contract secured (qld)
                                                                                                                Abigroup named preferred builder for construction of new
                                                       RAAF LIA Upgrade secured, Townsville (qld)
                                                                                                                car park for Sydney Airport Corporation (NSW).
                                                       Redlands Crop Research Facility – construction
                                                       commences (qld)
ABIGROUP’S ROWING TEAM – WINNERS OF CONSTRUCTION CUP
      Directors
8   ABIGROUP 2006 ANNUAL REVIEW




                    DR JUERGEN SCHNEIDER            PETER BRECHT                   DARRELL HENDRy                    DAvID WALKER                      DAvID JURD
                    Chairman                        Managing Director              Director                          Finance Director                  Operations Director




                    Juergen joined the Bilfinger    Peter’s civil engineering      Previously a director and Chief   Since joining Abigroup in         A civil engineer with over
                    Berger Group in 1983. In 1992   career began in the 1970s      Financial Officer of Abigroup,    1986 David has held various       20 years of experience, David
                    he became a full executive      in Newcastle, NSW. Between     Darrell’s tenure at Abigroup      positions including Group         was appointed Operations
                    board member and, upon the      1990 and 1998 Peter held       saw shareholder funds grow        Finance Manager and General       Director and a member of
                    establishment of Bilfinger      various management             from $3.4 million in 1987 to      Manager Finance for Abigroup      the Abigroup Limited board
                    Berger Australia, took up       positions with Abigroup        $122.9 million in 2003. In that   Limited.                          in late 2006. David’s career
                    positions as board member       and in 1998 was appointed      time turnover also increased      After Bilfinger Berger acquired   with Abigroup began over 15
                    of the Australian subsidiary    Managing Director of           from $220 million to $749.9       Abigroup and established          years ago and has included
                    and Chairman of Abigroup        Abigroup Contractors.          million.                          Bilfinger Berger Australia,       such successes as Sydney’s
                    Limited. He is based in         Following Bilfinger Berger’s   Darrell is currently Chief        David was appointed Finance       M2 Motorway. Most recently,
                    Mannheim, Germany.              acquisition of Abigroup in     Financial Officer of the          Director of Abigroup Limited      David was Construction
                                                    2004, Peter was appointed      Bilfinger Berger group and a      in 2005.                          Director on the much
                                                    Managing Director of           director of Bilfinger Berger                                        acclaimed M7 Motorway
                                                    Abigroup Limited.              Australia.                                                          which is one of the country’s
                                                                                                                                                       best examples of a successful
                                                                                                                                                       PPP project.
Organisational Chart
                                                                              ABIGROUP 2006 ANNUAL REVIEW   9




      OPERATIONS DIRECTOR   MANAGING DIRECTOR          FINANCE DIRECTOR
           David Jurd          Peter Brecht               David Walker


     ABIGROUP CONTRACTORS     MAJOR PROJECTS               FINANCE
         CENTRAL REGION

                            ASSET DEvELOPMENTS    CORPORATE COMMUNICATIONS
     ABIGROUP CONTRACTORS
        NORTHERN REGION
                            PLANT DEPARTMENT     TREASURy & CORPORATE SERvICES
     ABIGROUP CONTRACTORS
        SOUTHERN REGION
                            CORPORATE COUNSEL     PAyROLL & HUMAN RESOURCES


                                                   INFORMATION TECHNOLOGy
10 ABIGROUP 2006 ANNUAL REVIEW




                  Abigroup’s pre-cast yard in Wodonga. Establishing the yard guaranteed supply of the 500 pre-stressed
                  concrete girders required for the many bridges on the Albury Wodonga Hume Freeway Project.
Message From
                                                                                                                                        ABIGROUP 2006 ANNUAL REVIEW 11




 Managing Director, Peter Brecht

 WE ENTER 2007 WITH AN ORDER BOOK OF WELL OvER $3 BILLION AND                          While our growth is still high, one hurdle
                                                                                       preventing us from growing at an even
 ARE RECOGNISED AS ONE OF THE COUNTRy’S MOST SKILLED, CAPABLE                          greater rate are the skills shortages that are
 AND SUCCESSFUL CONSTRUCTION CONTRACTORS.                                              being felt industry-wide. While Abigroup has
                                                                                       weathered the storm relatively well thanks
                                                                                       to a long serving and loyal workforce, we are
                                   In my 20 years at Abigroup I have seen the
                                                                                       tackling the problem head on and in 2006
                                   Australian construction industry go through
                                                                                       became a Registered Training Organisation.
                                   many ups and downs. As Managing Director
                                                                                       This, combined with our other training,
                                   I am pleased to report that not only is the
                                                                                       apprenticeship and scholarship schemes is
                                   industry currently going through a boom
                                                                                       part of our strategy to ensure well qualified
                                   period, but that Abigroup is riding the crest
                                                                                       teams are available for deployment as new
                                   of the wave and this looks set to continue
                                                                                       contracts are secured. With a permanent
                                   throughout 2007.
                                                                                       workforce of almost 2000, our investment
                                   From once having to fight for the largest           in training and focus on fostering a work-
                                   infrastructure and building projects, just a few    life balance for employees is returning the
                                   years on, we enter 2007 with an order book          rewarding result of a happy workforce and                    PETER BRECHT
                                   of well over $3 billion and are recognised as       our recognition among many as an employer
                                   one of the country’s most skilled, capable and                                                             Managing Director,
                                                                                       of choice.
                                   successful construction contractors.                                                                        Abigroup Limited
                                                                                       At the end of another successful year I’d
                                   Also testament to our standing in the industry      like to take the opportunity to thank our
                                   is our prominence in the relatively new area        employees, clients, suppliers, sub-contractors
                                   of alliance contracting. Abigroup, which has        and project partners for their contribution
                                   always differentiated itself from its competitors   throughout 2006 and I look forward to more
                                   through its strong people focus, is ideally         great things in 2007.
                                   suited to alliancing, which relies on the strong
                                   relationship between contractor, client and
                                   designer. At the end of 2006, well over
                                   $1 billion of Abigroup’s work in hand was
                                   being delivered in this way, with more
                                   earmarked for 2007.
12 ABIGROUP 2006 ANNUAL REVIEW




                  The historic Empire and Mutual Apartments in Melbourne’s busy Flinders Street required extensive
                  works to be carried out behind the original facade, which was preserved.
Message From
                                                                                                                                                  ABIGROUP 2006 ANNUAL REVIEW 13




 Finance Director, David Walker

 OUR HEALTHy ORDER BOOK HAS RESULTED IN INCREASED ACTIvITy                                   that turnover is expected to grow further
                                                                                             during 2007.
 ACROSS ALL OUR OPERATIONS DURING THE 2006 yEAR AND WE ENTER
                                                                                             The building business also expanded
 2007 IN A STRONGER POSITION THAN AT ANy TIME IN OUR HISTORy.                                marginally in 2006 and, due to the level of
                                                                                             work in hand, will also increase significantly
                                    Abigroup has continued its strong growth                 in 2007.
                                    throughout 2006 with a record turnover of                Abigroup remains a large contributor to our
                                    $1.49 billion and net profit after tax of $51.7          parent company’s worldwide success. Bilfinger
                                    million on the back of a strong order book at            Berger AG reported a 56% increase in profit for
                                    the start of the year.                                   2006 from a total turnover of approximately
                                    During the year, the company disposed of                 $13 billion.
                                    its remaining 5% equity stake in Westlink                Abigroup’s outlook for 2007 is for continued
                                    Motorway Limited, the owner of Sydney’s                  growth and we enter the year with an
                                    M7 Motorway.                                             order book of over $3 billion on the back of
                                    The civil business continued to grow                     government investment in infrastructure
                                    throughout 2006, being the main contributor              and increased building activity. Abigroup has                   DAvID WALKER
                                    to the growth in turnover. With Abigroup’s               positioned itself as a versatile builder and civil
                                                                                                                                                           Finance Director,
                                    increased involvement in large alliance                  engineering contractor – a position that will
                                                                                                                                                          Abigroup Limited
                                    projects along the eastern seaboard, including           underpin the company’s future growth.
                                    a growing stable of water-related projects,


                                    REvENUE GROWTH 2002-2006

                                    1600

                                    1400

                                    1200

                                    1000

                                     800

                                     600

                                     400

                                     200
                                      0
                                           2002                2003                   2004                  2005                 2006
14 ABIGROUP 2006 ANNUAL REVIEW




                  The year saw an Abigroup joint venture awarded the $1.88 billion Gateway Upgrade Project in queensland.
                  The project includes the duplication of the existing Gateway Bridge – artist’s impression shown.
Operations Report
                                                                                                                                                            ABIGROUP 2006 ANNUAL REVIEW 15




 Operations Director, David Jurd

 WITH THE BOOM CONTINUING IN THE AUSTRALIAN CONSTRUCTION                                              winning numerous national industry awards
                                                                                                      throughout the year including Master Builders
 INDUSTRy, THROUGHOUT 2006 ABIGROUP HAS REINFORCED ITS                                                awards and the prestigious Australian Institute
 POSITION AS ONE OF THE MOST DyNAMIC, ENERGETIC AND INNOvATIvE                                        of Building’s Professional Excellence Award
                                                                                                      for projects $10m to $50m for the Epworth
 CONSTRUCTION COMPANIES IN AUSTRALIA.                                                                 Eastern Hospital in victoria.

 Reflecting on 2006, it seems that public           preferred proponent for major upgrade works       Strategic diversity
 infrastructure, almost overnight, became the       on the Hume Highway in Southern New South
                                                                                                      While 2007 looks set to deliver another year of
 hottest election issue in the states and coupled   Wales in late November.
                                                                                                      record activity in our traditional building and
 with the resources boom drove our industry         Another major milestone for 2006 was              civil engineering businesses, it will also be an
 to unprecedented levels.                           Abigroup’s successful joint venture bid for       exciting year for two relatively new focus areas.
 Our success in 2005 positioned us to               the $1.88 billion Gateway Upgrade Project
                                                                                                      Abigroup’s mining arm, which flourished in
 participate in high profile infrastructure         in Brisbane. As one of the country’s most
                                                                                                      2006, looks set to continue its success in 2007                      DAvID JURD
 projects in 2006 and our continued success         high profile projects, the award is not only
                                                                                                      with continuing work for Iluka Resources
                                                    testament to Abigroup’s capabilities but also                                                                Operations Director,
 has further strengthened our reputation.                                                             at Douglas Mine in victoria. Our mining
                                                    shows the trust the market has in the joint                                                                    Abigroup Limited
                                                                                                      capabilities were also recognised through our
                                                    venture partners to work together after the
 Civil                                              success of the M7 Motorway, delivered eight
                                                                                                      rehabilitation of Benambra Mine. This project
 Significant in 2006 was the success of our                                                           earned Abigroup a CASE Earth Award as well
                                                    months ahead of schedule at the end of 2005.
 water business and the continuing move to                                                            as the Australian Mining Prospect Award for
                                                                                                      Best Contract Miner of the year 2006.
 alliance contracting to deliver infrastructure     Building
 projects with shorter lead times and resource                                                        The year proved similarly successful for the
                                                    Abigroup’s Building Division continues to grow
 constraints. We are currently delivering water                                                       telecommunications unit, performing site
                                                    and a major focus for 2007 will be to raise the
 infrastructure projects worth $1 billion, with                                                       acquisition, planning, design and civil works
                                                    profile of the business in the market. Abigroup
 all of these, as well as additional road and                                                         services to Nokia for Optus and vodafone 3G
                                                    is one of the top 10 builders (by value) in
 rail contracts, being delivered by the alliance                                                      Network upgrades. Other new projects include
                                                    the country. As well as being successful,
 method.                                                                                              installation and commissioning of microwave
                                                    our builders display diverse expertise, with
 The agreement reached in early 2006 for                                                              radio transmission links for Telstra’s 850 program.
                                                    our current projects ranging from scientific
 Abigroup’s construction of queensland’s            laboratories, health, medical and educational     While Abigroup’s core businesses remain the
 Tugun Bypass kicked off a year which saw           facilities to apartments, shopping centres        focus of all business expansion efforts, pushing
 our participation in alliance contracts rise       and resorts.                                      the boundaries of what these core businesses
 dramatically. More alliance work followed                                                            include is part of our goal of strategic
 throughout the year in areas including rail and    A steady stream of new contracts secured
                                                                                                      diversification.
 water and was topped off with the Abigroup/        throughout the year sees the division
                                                    entering 2007 in a strong position, aided by
 SKM/RTA ‘Concord Alliance’ being named
        Operations Review
16 ABIGROUP 2006 ANNUAL REVIEW




                  Central Region                                                                                                                      While Central Region’s success
                                                                                                                                                      has come largely through
                                                                                                                                                      roads in the past, 2006 proved
                  ALREADy HEAvILy INvOLvED IN MAJOR INFRASTRUCTURE AND BUILDING
                                                                                                                                                      the division’s diversity with
                                                                                                                                                      work in the areas of water,
                  PROJECTS THROUGHOUT THE STATE, A yEAR OF NEW PROJECTS AND
                                                                                                                                                      rail, mining infrastructure
                  GOvERNMENT INvESTMENT, BOTH STATE AND FEDERAL, HAS BROUGHT
                                                                                                                                                      and medical, educational
                  GROWTH AND A SUCCESSFUL yEAR FOR ABIGROUP’S CENTRAL REGION.                                                                         and retail facilities.
                                                                                                                                                                               BILL SULLIvAN
                  Work progressing                                               New work secured 2006:                                                                    General Manager
                  beyond 2006:                                                     Bonville Bypass                                                       Abigroup Contractors, Central Region

                       Albury Wodonga Hume                                         Karuah to Bulahdelah Sections 2 & 3
                       Freeway Project                                             Hume Alliance (southern section)
                       Brunswick Heads to yelgun                                   Alfords Point Bridge
                       Antiene Rail Coal Unloader                                  University of Sydney Central Project
                       Windsor Flood Evacuation Route
                                                                                 Completed 2006:
                       Pacific Square Stage 2
                       Mater Hospital Newcastle                                    West Street Gundagai
                       670 Hunter Street                                           Capella Apartments
                       Nokia 3G Project                                            Sydney Airport Taxiway Golf
                                                                                   Sydney Airport Large Aircraft Works A380
                                                                                   Epping to Chatswood rail line
                                                                                   GC-6 Works Contract
                                                                                   Stamford, Gloucester Street




                                                                                                   Financial results          Construction of the technically challenging Antiene
                                                                                          Turnover 2006: $583 million         Rail Coal Unloader in the Hunter valley has called
                                                                                          Turnover 2005: $525 million
                                                                                                                              upon Abigroup’s high-level mechanical and
                                                                                                                              electrical engineering skills.
                                                                                              Order book: $916 million

                                 UNIVERSITY OF SYDNEY’S ‘USYD CENTRAL’ PROJECT
                                                                                                                          ABIGROUP 2006 ANNUAL REVIEW 17




With Abigroup’s experience and our parent company’s investment in the development of health facilities worldwide, health will
  remain a focus through 2007 and beyond. Pictured is the Mater Hospital, Newcastle, which is being constructed by Abigroup.
                                              It is the first hospital in NSW to be delivered under a Public Private Partnership.




                                                                           WINDSOR FLOOD EVACUATION ROUTE
        Operations Review
18 ABIGROUP 2006 ANNUAL REVIEW




                  Northern Region                                                                                                          With work ranging from
                                                                                                                                           water, roads, tunnels and rail
                                                                                                                                           to healthcare, education and
                  UNPRECEDENTED INvESTMENT IN INFRASTRUCTURE IN qUEENSLAND,
                                                                                                                                           research facilities, Abigroup’s
                                                                                                                                           diverse expertise position
                  PARTICULARLy IN THE STATE’S SOUTH-EAST, CONTINUED THROUGHOUT
                                                                                                                                           the company at the forefront
                  2006, ENSURING THAT ABIGROUP’S BOOM IN THE STATE WILL CONTINUE
                                                                                                                                           of infrastructure and service
                  WELL INTO THE FUTURE.                                                                                                    delivery in the state.
                                                                                                                                                                 JOHN KIRKWOOD
                  Work progressing                                      New work secured 2006:                                                                    General Manager
                  beyond 2006:                                            qHSS Extensions & Services Upgrade                                 Abigroup Contractors, Northern Region

                       Tugun Bypass                                       Redlands Crop Research Facility
                       Southern Regional Water Pipeline Alliance          RAAF Series 300 LIA Upgrade
                       Pumps & Pipes                                      Centre for Clinical Research
                       Salisbury to Kuraby Rail Alliance                  Coffs Infrastructure Alliance
                       Mater Hospital Redevelopment
                                                                        Completed 2006:
                       Blue on Blue Resort
                       University of queensland                           Australian Institute of Bioengineering
                       Water Matters Alliance                             and Nanotechnology
                       Nokia 3G Project                                   queensland Bone Bank Redevelopment
                                                                          St Francis Xavier School
                                                                          Ergon Energy Control Centre
                                                                          Lavarack Barracks – National Business
                                                                          Centre




                                                                                          Financial results        Tugun Bypass on the Gold Coast is being delivered
                                                                                 Turnover 2006: $373 million       by the PacificLink Alliance, which includes Abigroup
                                                                                 Turnover 2005: $283 million
                                                                                                                   as the construction partner. A pioneer of alliance
                                                                                                                   contracting in Australia, Abigroup’s involvement
                                                                                   Order book: $1703 million
                                                                                                                   in alliancing projects increased throughout 2006.
                                         MATER HOSPITAL REDEVELOPMENT
                                                                                     ABIGROUP 2006 ANNUAL REVIEW 19




queensland’s increasing population needs have contributed to greater investment
  in services including health care and educational facilities. Abigroup is currently
                      undertaking the Mater Hospital Redevelopment in Brisbane.




                              UNIVERSITY OF QUEENSLAND BIOLOGICAL SCIENCES LIBRARY
        Operations Review
20 ABIGROUP 2006 ANNUAL REVIEW




                  Southern Region                                                                            The year saw the team from
                                                                                                             Southern Region recognised
                                                                                                             for their contribution to the
                  THERE WAS A CONTINUED FOCUS ON INFRASTRUCTURE DELIvERy IN 2006.
                                                                                                             industry, with awards for
                                                                                                             building, civil engineering,
                  THE STRENGTH OF SOUTHERN REGION SAW ITS OPERATIONS FURTHER EXPAND
                                                                                                             mining and environmental
                  INTO SOUTH AUSTRALIA THROUGHOUT THE yEAR.
                                                                                                             excellence.
                  Work progressing                                     New work secured 2006:
                                                                                                                                      ROD WATSON
                  beyond 2006:                                           Telecommunications                                        General Manager
                       Albury Wodonga Hume Freeway Project               Douglas Mine Infrastructure          Abigroup Contractors, Southern Region
                       Geelong Bypass Section 1                          RACv Healesville Country Club
                       Port River Expressway                             Mornington Aged Care Facility
                       Chevron redevelopment                             Development Stage 1
                       Bass Coast Resort, San Remo                       Essendon Fields Airport Access
                       Metropolitan Fire Brigade Training Centre         Pakenham Bypass – Section 1
                       Nokia 3G Project                                  Horse Shoe Bend Rail Embankment
                       Pakenham Bypass Section 1
                                                                       Completed 2006:
                       Douglas Mineral Sands Surface Mining
                                                                         William Barak Pedestrian Bridge
                                                                         Empire & Mutual Apartments
                                                                         Horse Shoe Bend Rail Embankment
                                                                         Benambra Mine Rehabilitation
                                                                         Station Pier Central Roadway




                                                                                       Financial results
                                                                               Turnover 2006: $417 million
                                                                               Turnover 2005: $284 million
                                                                                  Order book: $406 million

                                         ALBURY WODONGA HUME FREEWAY                                                                     PAKENHAM BYPASS
                                                                                 ABIGROUP 2006 ANNUAL REVIEW 21




Southern Region’s skilled team spent 2006 delivering a diverse range of projects from
         road, rail and marine to apartments, resorts and high-tech training facilities.
                                   Pictured: Metropolitan Fire Brigade Training Centre




                                            CHEVRON APARTMENTS
        Plant Report
22 ABIGROUP 2006 ANNUAL REVIEW




                  Plant Report                                                                                                               Our fleet is an immense
                                                                                                                                             source of pride to Abigroup.
                                                                                                                                             It’s modern, extensive and
                                                                                                                                             can be deployed when
                  Pushing the boundaries                                Having a large fleet gives Abigroup the
                                                                        flexibility to cater to the specific needs of                        needed to any of our sites.
                  of excellence                                         our projects.                                                        It’s one of the attributes
                   Distinguishing itself from competitors by
                  owning, operating and maintaining its own
                                                                        As is standard company practice, our fleets                          that sets us apart from our
                                                                        are maintained by Abigroup’s own onsite
                  earthmoving equipment, 2006 saw Abigroup                                                                                   competitors.
                                                                        maintenance crews to ensure the company’s
                  further its lead through the expansion of its                                                                                                   RICHARD FRENCH
                                                                        high performance expectations are achieved
                  already impressive fleet.                                                                                                                       General Manager
                                                                        and that unplanned maintenance and costly
                  Four Caterpillar 773E 50 tonne dump trucks            downtime is minimised.                                                   Abigroup Contractors, Plant Division
                  purchased in September 2006 are working on
                                                                        Abigroup’s annual expenditure on plant
                  a $57 million contract, mining overburden and
                                                                        ensures its fleet is one of the most modern in
                  ore at Iluka Resources Douglas Mine Site in
                                                                        the country with most machines averaging
                  Western victoria’s Murray Basin.
                                                                        just 4500 hours. In early 2007 Abigroup is
                  The recent purchase increases Abigroup’s              taking delivery of two 657G scrapers which, as
                  Caterpillar 773 truck fleet to eight, enabling        well as adding to the already impressive fleet,
                  two truck fleets on a standard configuration to       confirms the company’s commitment to its
                  be used simultaneously – or for a customized          clients in the civil and mining industries.
                  fleet to be deployed to cater for long haul
                  distances and production demands.




                                                     ABIGROUP’S SCRAPERS ARE AN IMPORTANT PART OF THE COMPANY’S IMPRESSIVE EQUIPMENT FLEET                     ALBURY WODONGA HUME FREEWAY
                                                        ABIGROUP 2006 ANNUAL REVIEW 23




Four new Caterpillar 773E, 50 tonne dump trucks purchased in
      2006 are hard at work at Iluka’s Douglas Mine in victoria
        Asset Developments
24 ABIGROUP 2006 ANNUAL REVIEW




                  Asset Developments                                                                                          The PPP is an ideal method
                                                                                                                              of gaining much needed
                                                                                                                              social infrastructure and we
                  Asset Developments leads Abigroup’s bids for      Australia. In conjunction with Abigroup’s                 expect greater adoption of
                  projects where financing is involved, including   Southern Region Building Division, vidale                 this method once the benefits
                  BOOT, PPP and development transactions.           Developments and Seven Network, Asset
                                                                                                                              from current projects flow
                  One area of particular activity for Abigroup      Developments closed a transaction to develop
                                                                    a new South Australian regional headquarters              through.
                  in recent years has been health. Abigroup is
                  currently constructing the Mater hospital in      and studios for Channel 7 on land adjacent
                  Newcastle which is NSW’s first major hospital     to the Adelaide Entertainment Centre. In the                                    SCOTT ALISON
                  to be undertaken within the PPP framework.        coming year, a further development alongside                               Managing Director
                  Work progressed well throughout 2006 and is       the Channel 7 development is also planned.                       Abigroup Asset Developments
                  on track for completion in 2009.                  While we have seen a trickle of PPP projects
                  In 2006 Abigroup also became part of the          during the year, governments generally have
                  Carewest Consortium which was one of three        been slow to adopt this method of delivering
                  parties to be short-listed to prepare a bid       social infrastructure projects. We expect this to
                  for the development of a new hospital at          change, particularly for health and education
                  Orange in NSW. This bid is due to be lodged       projects, as governments recognise the benefits
                  in April 2007.                                    flowing from the initial projects which are
                                                                    now underway.
                  Another major project for the year saw
                  Abigroup’s building division move into South




                                                                                                                M7 MOTORWAY                      MATER HOSPITAL NEWCASTLE
Safety
                                                                                                                                       ABIGROUP 2006 ANNUAL REVIEW 25




 Safety First

 Summits                                           Commitment

 All three regions conducted Safety Summits        In 2006, after close consultation with
 during 2006 with Central Region hosting           the company’s safety advisors, Abigroup
 the inaugural National Safety Summit.             Contractors’ Board issued a number of
 Representatives from each region gathered         further safety directives for implementation
 for two days to discuss safety related matters    throughout 2006 and beyond. One resulting
 and initiatives.                                  action has senior managers continuing to
                                                   support and reinforce Key Performance
 Resources                                         Indicators across the company. Such actions
                                                   are a result of Abigroup’s continual self-
 The number of safety practitioners employed
                                                   assessment, which is aimed at supporting
 continued to rise during 2006. This is in line
                                                   our changing business and complementing
 with Abigroup’s focus on increasing safety
                                                   the rigorous safety management system
 measures and promoting its zero tolerance
                                                   already in place.
 approach in the workplace.
                                                   National Accreditation
 Awarding Excellence
                                                   In April 2006 Abigroup was successful in
 Abigroup senior management has decided
                                                   gaining provisional accreditation under
 to formally recognise individuals or groups
                                                   the Australian Government’s Building and
 that display superior safety behaviour in the
                                                   Construction OH&S Accreditation Scheme,
 workplace or are responsible for safety related
                                                   administered by the Office of the Federal
 innovations. The award will be judged from
                                                   Safety Commission. This accreditation enables
 nominations put forward from each region,
                                                   Abigroup to tender for Government Agency
 with the first recipient to be named at the
                                                   projects. Application for full accreditation
 end of 2007.
                                                   is being sought and if successful should be
                                                   granted early in 2007.




                                                                                                   Abigroup’s senior management formally recognises
                                                                                                   individuals or groups that encourage exceptional
                                                                                                   safety behaviour and innovations.
        Environment
26 ABIGROUP 2006 ANNUAL REVIEW




                  Caring for the Environment

                  ABIGROUP IS COMMITTED TO PROTECTING THE SENSITIvE
                  ENvIRONMENTS IN WHICH IT WORKS.

                  Abigroup is committed to protecting the            Conservation in action
                  sensitive environments in which it works. We
                  ensure that the needs of interested parties          In 2006, twin water treatment plants were
                  are considered and that all potential impacts        constructed at the Tugun Bypass site to
                  on the environment – through noise, dust,            treat surface and ground water removed
                  pollution etc – are identified and measures put      during tunnel construction. Before
                  in place to manage projects with the goal of         discharging the water, the plants control
                  minimising environmental impact.                     pH, turbidity and remove dissolved iron to
                                                                       ensure only clean water leaves the site.
                  In recognition of our environmental initiatives,
                  Abigroup was awarded the victorian and               Construction of frog ponds, translocation
                  National CASE Earth Awards in 2006 for our           of threatened species, the installation
                  sensitive rehabilitation of the abandoned            of nest boxes for sugar gliders and the
                  Benambra Mine in victoria. Rehabilitation of         rescue and relocation of more than
                  the site was significant and included dredging,      10,000 fish were just some of Abigroup’s
                  creation of wetlands, removal of metals and          environmental priorities during 2006.
                  other waste, and the landscaping of the area         Work patterns were altered at Brunswick
                  to return it to pre-existing landform and            Heads to protect a pair of threatened Pied
                  vegetation.                                          Oystercatcher birds that set up nest on a
                  The project also received an Excellence              fill embankment.
                  in Environmental Management Award in                 On the Albury Wodonga Hume Freeway
                  Australian Mining magazine’s inaugural               project, Abigroup diverted run-off into
                  Prospect Awards in 2006.                             a detention basin for fines settlement
                  Abigroup Contractors is also a member of             prior to discharge into the Murray River.
                  the Green Building Council of Australia.             Historically water in the area has run
                  The objective of the council is to promote           directly into the river.
                  sustainable development and implement
                  green building programs, technologies, design                                                     Our teams alter work patterns out of consideration
                  practice and operations throughout the                                                            for flora and fauna in the area – in this case, a pair of
                  industry.
                                                                                                                    threatened birds that set up nest on an embankment.
                                                                                                 ABIGROUP 2006 ANNUAL REVIEW 27




Indigenous heritage artifacts were unexpectedly uncovered and subsequently preserved through the careful
        work of Abigroup environmental teams and the NSW Department of Environment and Conservation.
        Awards
28 ABIGROUP 2006 ANNUAL REVIEW




                  Awards 2006

                  M7 Motorway                                      Sydney Airport Large                            Parklands Aged Care Facility,
                  2006 Winner National Engineering                 Aircraft Works                                  Townsville
                  Excellence Award                                 2006 Engineering Excellence Awards              2006 MBA Regional Construction Award
                  2006 Winner Sydney Division – Bradfield Award    Highly Commended Sydney Division                – Category: Health Facilities over $10m
                  2006 Winner Sydney Division                      – Category: Project Management
                  – Category: Infrastructure Award                 2006 Engineering Excellence Awards Finalist     Northern Beaches Police
                  2006 Winner Sydney Division                      – Category: Infrastructure
                  – Category: Project Management
                                                                                                                   Station, Mackay
                  2006 Highly Commended Sydney Division            Water Matters Alliance                          2006 MBA Regional Construction Award
                  – Category: Innovations and Inventions                                                           – Category: Community Service Facilities
                                                                   2006 Public Relations Institute of Australia
                                                                                                                   $2m to $10m
                  Hay Point Expansion Stage 1                      State Awards Highly Commended
                                                                   – Category: Excellence in Issues Management
                  2006 Winner President’s Excellence Award                                                         Mater Hospital, Newcastle
                  for Safety                                                                                       2006 MBA Safety Award – Category:
                                                                   Royal Brisbane Hospital                         Commercial Projects over $50m
                  Benambra Mine Rehabilitation                     Block 7 Redevelopment
                  2006 Winner Prospect Awards – Best Contract      2006 MBA Regional Construction Award &          Epworth Hospital
                  Miner of the year                                MBA State Construction Award
                  2006 Winner Prospect Awards – Excellence in
                                                                                                                   Redevelopment
                                                                   – Category: Health Facilities over $10m
                  Environmental Management Award                                                                   2006 Australian Institute of Building
                  2006 Winner Case Earth Award, victoria           Linear Apartments                               Professional Excellence in Building Awards
                  (Civil Contractors Federation) – Category:                                                       – Category: Projects $10m to $50m
                                                                   2006 MBA Regional Construction Award
                  Environmental Excellence Projects $5m to $15m
                                                                   – Category: Residential Building $10m to $50m
                  2006 Winner National Case Earth Award                                                            Dandenong MOC
                  – Category: Environmental Excellence Projects                                                    2006 Australian Institute of Building
                  $5m to $15m
                                                                   Sustainable Minerals Institute                  Professional Excellence in Building Awards
                                                                   – University of queensland                      Highly Commended
                  Craigieburn Bypass                               2006 MBA Regional Construction Award
                  2006 Winner Master Builders Association          – Category: Educational Facilities over $10m    M Central                                    A Civil Contractors Federation (CCF) initiative


                  (MBA) of victoria                                2006 queensland Architecture Award
                                                                                                                   2006 Australian Institute of Building
                  – Category: Excellence in Civil Construction     – Brisbane Building of the year
                                                                                                                   Professional Excellence in Building Awards
                  2006 Winner Master Builders Association
                                                                                                                   Highly Commended
                  National Award – Category: Excellence in Civil
                  and Infrastructure Projects over $100m
                                                                   ABIGROUP 2006 ANNUAL REVIEW 29




BENAMBRA MINE DAM




ABIGROUP’S DAVID JURD ACCEPTED ENGINEERS AUSTRALIA’S PRESTIGIOUS
BRADFIELD AWARD ON BEHALF OF THE M7 TEAM




M CENTRAL


                                                                      M7 MOTORWAY
 30 ABIGROUP 2006 ANNUAL REVIEW




Total Employees: 1837
Civil (operational):   1349
Building (operational): 281
Support:                207


          Support


     Building
                     Civil




Central region:                   848
Southern region:                  439
Northern region:                  550



      Southern

                     Central


        Northern




                                        Through its focus on staff development, Abigroup boasts some of the industry’s
                                           brightest new generation of engineers, builders, surveyors and support staff.
Our People
                                                                                                                                                                                 ABIGROUP 2006 ANNUAL REVIEW 31




 Our People, Our Strength

 Abigroup’s management acknowledges that          Training strong on agenda in 2007                   In recognition that field based employees         With the 2006 survey also completed, a high
 its success in the construction industry is                                                          have limited access to online tools, Abigroup     priority set for 2007 is the recruitment of
                                                  New to Abigroup in 2006 was its accreditation
 thanks to the dedication of the highly skilled                                                       SMS was begun early in 2006. The service          women, especially in professional and senior
                                                  as a Registered Training Organisation.
 team of people who make up the company.                                                              enables the fast and accurate dissemination       management positions. This will be achieved
                                                  This accreditation enables Abigroup to              of company information to all employees           through training leaders to recognise and
 Training and Development                         deliver nationally recognised assessment,           with a mobile phone based anywhere across         nurture high potential individuals and
                                                  training and qualifications in civil construction   Australia.
 Abigroup prides itself on its contribution                                                                                                             through the continuation of the national
                                                  and mining in order to build the skills base
 to combating the skills shortages faced                                                                                                                graduate/cadet program.
                                                  of its employees.                                   Equal Opportunity
 by engineering, building and related
                                                                                                                                                        Training and development of all staff is also
 professions in Australia.                        The first business unit to receive formal           Every year Abigroup conducts an Equal
                                                  training and assessment leading to a                                                                  high on the agenda, with online training
 Through its scholarships, cadetships,                                                                Opportunity Workplace Employee Opinion
                                                  national qualification is Abigroup Mining.                                                            opportunities and a national training
 mentoring and graduate programs, Abigroup                                                            Survey to help identify issues in relation to
                                                  Expansion into civil construction areas will        employment matters covered by the Equal           strategy planned for 2007.
 boasts some of the industry’s brightest new
                                                  follow in 2007.                                     Opportunity for Women in the Workplace            Developing flexible work practices and
 generation of engineers, builders, surveyors
 and support staff in fields of finance, law,                                                         Act 1999.                                         a zero tolerance approach to sex based
                                                  Communication
 administration and information technology.                                                           As a result of the 2005 survey, actions in 2006   harassment are also items of high priority
                                                  Communication is vital in maintaining an            included:                                         for the year.
 In addition, Abigroup trains unskilled
                                                  informed, inclusive and supportive corporate             HR Managers/Coordinators were
 workers in areas where projects are carried
                                                  culture where all employees feel like a valued
 out, supporting their completion of                                                                       employed in each Business Area;
                                                  member of a strong and successful team.
 Certificate courses at TAFE Institutes. Not                                                               Uniform company Position Descriptions
                                                  In 2006, a quarterly employee newsletter
 only does this enable them to work for                                                                    were developed;
                                                  was initiated to ensure that all personnel
 Abigroup in the short term, but they can                                                                  Career Structures Policy and Procedures
                                                  – both in the field and office-based – were
 then build a career path in the construction                                                              were developed;
                                                  kept abreast of quarterly news, project wins,
 industry in the longer term.                                                                              Implementation of the National Training
                                                  financial progress and corporate directions.
                                                                                                           Committee – Training Plan;
 Such initiatives – combined with a strong
                                                  The newsletters were complemented by a                   Development of Award Recognition
 team ethic and friendly, flat management
                                                  regularly updated intranet which, in addition            opportunities;
 structure – have contributed to a loyal
                                                  to sharing vital forms, company procedures
 workforce which has enabled Abigroup to                                                                   Development of Study and Training
                                                  and policies, was a bulletin board for
 fare relatively well in a market where many                                                               Policy; and
                                                  broadcasting information about projects,
 competitors are struggling with the current                                                               Updated employee and supervisor
                                                  personnel and industry news.
 skills crisis.                                                                                            Harassment and Discrimination Training
                                                                                                           modules implemented.
        Corporate Citizenship
32 ABIGROUP 2006 ANNUAL REVIEW




                  Corporate Citizenship                                                                            Highlights of 2006:
                                                                                                                      An unprecedented number of scholarships to student engineers and
                                                                                                                      building cadets
                                                                                                                      31 employees sponsored through TAFE Cert III in Manufactured Mineral
                  Abigroup actively engages in the communities in which it works. From supporting local sporting
                                                                                                                      Products at Albury Wodonga
                  teams and leading school tree-planting activities to health, education and national research
                  foundations, Abigroup is committed to being an exemplary corporate citizen.                         Abigroup National Rugby Camp held in Armidale for the ninth year
                                                                                                                      Abigroup continued its support of the National Association of Women
                  Also of prime importance to Abigroup is furthering the engineering profession and nurturing
                                                                                                                      in Construction
                  a stimulating work environment that offers employees opportunities for personal growth and
                  professional development. Scholarships, cadetships and apprenticeships are offered extensively      The Neuroscience Institute of Schizophrenia and Allied Disorders
                                                                                                                      received support from Abigroup for the tenth year
                  to those entering the industry, with continual learning encouraged for existing employees.
                                                                                                                      Abigroup became Platinum Sponsors of the Property Industry
                  Some of the worthy causes Abigroup proudly supported in 2006:                                       Foundation and commenced Project Management of the refurbishment
                  Abigroup National Junior Rugby Camp              Beyond Blue                                        of a Salvation Army centre for underprivileged youths in Sydney
                  University of Newcastle Rugby                    SIDS and Kids                                      Abigroup sponsored the ‘Signature of Sydney’ – Australia’s largest ever
                                                                                                                      art prize
                  Newcastle Institute of Schizophrenia             Leukaemia Foundation
                  and Allied Disorders                             (World’s Greatest Shave)                           Employees raised funds for “Movember”, the Starlight Childrens
                                                                                                                      Foundation, the Cancer Council and the Leukaemia Foundation.
                  Engineering Excellence Awards                    Scouts Australia
                  National Association of Women                    Prostate Cancer Foundation of Australia
                  in Construction                                  Children’s Medical Research Institute
                  Starlight Childrens Foundation                   State Emergency Services
                  Salvation Army                                   Wheelchair Sports victoria
                  Royal Blind Society                              Childhood Cancer Support
                  Multiple Sclerosis Society                       Mater Misericordiae Health Services
                  Horsham Aquatic Centre                           Signature of Sydney – Australia’s highest
                  Civil Engineering Students Society,              value art prize
                  University of Melbourne                          … as well as numerous sponsorships in
                  variety Club victoria                            the communities in which Abigroup has
                  Cancer Council                                   operations.

                  National Heart Foundation


                                                                                                                   Abigroup proudly sponsored the National
                                                                                                                   Association of Women in Construction’s annual
                                                                                                                   gala dinner.
                                                                                                                    ABIGROUP 2006 ANNUAL REVIEW 33




Musical genius David Helfgott delighted the audience at the “Spark     The Abigroup National Rugby Camp was held in
of Genius” dinner, of which Abigroup was a sponsor. The event raised   Armidale for the 9th year. The program nurtures the
funds for research into schizophrenia and associated disorders.        potential rugby stars of the future.
34 ABIGROUP 2006 ANNUAL REVIEW




                                 WINDSOR FLOOD EVACUATION ROUTE, NSW
General Information
                                                    ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT 35




 SPECIAL PURPOSE FINANCIAL REPORT

  REGISTERED OFFICE AND CORPORATE HEAD OFFICE
  2nd Floor
  924 Pacific Highway
  Gordon NSW 2072
  Telephone: +612 9499 0999
  Facsimile: +612 9499 8822

  DIRECTORS
  Dr Juergen Max Georg Schneider – Chairman
  Darrell Frederick Hendry
  Peter John Brecht
  David Lindsay Walker
  David Vincent Jurd

  SECRETARIES
  Darrell Frederick Hendry
  William Shane Rowley
  David Lindsay Walker

  AUDITORS
  Ernst & Young

  BANKERS
  Australia and New Zealand Banking Group Limited

  SOLICTORS
  Clayton Utz
        Directors’ Report
36 ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT




                   DIRECTORS’ REPORT

                   The directors present their Annual Report, together with the consolidated accounts of the economic entity (the “Group”), comprising Abigroup Limited (the “Company”)
                   and all its controlled entities, for the year ended 31 December 2006 (“the year”).

                   DIRECTORS
                   The names of the directors of the Company in office during the year and until the date of this report are as follows:

                   Name of Director                        Qualifications Experience & Special Responsibilities

                   Dr Juergen M G Schneider                CHAIRMAN
                                                          A member of the Bilfinger Berger AG Executive Board with responsibility for accounting, finance, controlling and power services.
                   Peter J Brecht                         Broad experience in civil engineering, building and all facets of construction and mining industries including major infrastructure
                                                          BOOT projects.
                   Darrell F Hendry                       Commenced career as a chartered accountant before joining the company in 1984. Director and Chief Financial Officer of Bilfinger
                                                          Berger Australia Pty Limited with responsibility for overall financial management and administration for the Bilfinger Berger Group
                                                          in Australia.
                   David L Walker                         Has had over 20 years accounting experience in various positions within the Abigroup group of companies. Held various senior
                                                          financial and secretarial positions.
                   David V Jurd                            Appointed 5 October 2006
                                                           With over 20 years of engineering experience both in Australia and overseas, David has spent the last 15 years with Abigroup
                                                           successfully delivering high profile infrastructure projects including Sydney’s 40km M7 Motorway.
                   All directors were in office from the beginning of the year until the date of this report, unless otherwise stated.

                   PRINCIPAL ACTIvITIES
                   The principal activities during the year were construction, property and other investments.
                   There was no significant change in the nature of these activities during the year.

                   REvIEW OF OPERATIONS
                   Total turnover from continuing operations including joint ventures for the year was $1,490.1 million (2005: $1,297.1 million). Net profit after income tax from continuing
                   operations for the year was $51.7 million (2005: $55.4 million). Further details of the Group’s operations are included in the Annual Review.

                   SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
                   Other than stated elsewhere in this report, the directors are not aware of any changes in the state of affairs likely to have a significant effect on the operations of the
                   Group or the expected results of those operations.

                   RESULTS
                   Consolidated Results of the Economic Entity                                                                                          $’000

                   Profit from ordinary activities after tax                                                                                          51,691
                                                                                                                                                                          ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT 37




SIGNIFICANT EvENTS AFTER BALANCE DATE
At the date of this report, the directors are not aware of any circumstances that would render any amount stated in the Financial Report misleading.

LIKELy DEvELOPMENTS AND EXPECTED RESULTS
The directors are not aware of any specific developments likely to have a significant effect on the operations of the consolidated entity or of the expected results of
those operations.

ENvIRONMENTAL REGULATION AND PERFORMANCE
Environmental protection and regulation is monitored on a project basis in accordance with specific performance requirements under the respective contracts.
There have been no significant known breaches of these requirements during the year.

SHARE OPTIONS
There is no share option plan for directors or employees.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
During the year the Company paid premiums in respect of a contract insuring all the directors of the Company against liability incurred in their role as directors of
Abigroup Limited and related companies. Any disclosure of the nature of the liability and amount of the premium is prohibited by the insurance contract.

ROUNDING
The amounts contained in this report and in the financial statements have been rounded to the nearest $1,000 (where rounding is applicable) under the option
available to the Company under Australian Securities and Investments Commission Class Order 98/0100. The Company is an entity to which the Class Order applies.

AUDITOR INDEPENDENCE
A Statement of Independence has been provided by our auditor, Ernst & young, and is attached to the directors report.
Signed in accordance with a resolution of the directors.




P J BRECHT                                                            D L WALKER
Director                                                              Director
Sydney 9 March 2007
        Auditor’s Independence Declaration
38 ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT




                   AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF ABIGROUP LIMITED


                   In relation to our audit of the financial report of Abigroup Limited for the financial year ended 31 December 2006, to the best of my knowledge
                   and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code
                   of professional conduct.




                   ERNST & yOUNG                                                       DOUGLAS BAIN
                   Sydney 9 March 2007                                                 Partner
Directors’ Declaration
                                                                                                                                                                 ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT 39




 DIRECTORS’ DECLARATION

 In accordance with a resolution of the directors of Abigroup Limited, we state that:
 In the opinion of the directors:
 a.   the special purpose financial report:
      i.    presents fairly, in accordance with the accounting policies in Note 1, the consolidated entity’s financial position at 31 December 2006 and of its
            performance for the year ended on that date; and
      ii.   complying with applicable Accounting Standards.
 b.   there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
 On behalf of the Board




 P J BRECHT                                                              D L WALKER
 Director                                                                Director
 Sydney 9 March 2007
        Income Statement
40 ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT




                   INCOME STATEMENT YEAR ENDED 31 DECEMBER 2006

                                                                                      2006         2005
                                                                         NOTE         $’000        $’000

                   CONTINUING OPERATIONS
                   Revenues                                                2     1,404,740     1,297,064
                   Construction expenses                                        (1,321,682)   (1,199,947)
                   Depreciation and amortisation charges                           (12,304)      (13,905)
                   Finance costs                                                    (4,621)       (3,093)
                   Share of profit of associates                                      1,204           721
                   Profit from continuing operations before income tax              67,337        80,840
                   Income tax expense                                             (15,646)      (25,466)
                   Profit after tax from continuing operations                      51,691        55,374

                   DISCONTINUED OPERATIONS
                   Profit after tax from discontinued operations                         –         3,903
                   Profit attributable to the member of the parent                  51,691        59,277
Balance Sheet
                                                                    ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT 41




 BALANCE SHEET AS AT 31 DECEMBER 2006

                                                       2006      2005
                                                       $’000     $’000

 CURRENT ASSETS
 Cash and cash equivalents                           232,715   125,547
 Trade and other receivables                         206,303   199,413
 Inventories                                          41,882    32,089
 Other financial assets                                    –    60,269
 TOTAL CURRENT ASSETS                                480,900   417,318

 NON CURRENT ASSETS
 Trade and other receivables                             100       200
 Investments accounted for using the equity method     1,204         –
 Other financial assets                                   42        42
 Property, plant and equipment                       101,915    88,496
 Deferred tax assets                                  11,116     6,915
 TOTAL NON CURRENT ASSETS                            114,377    95,653
 TOTAL ASSETS                                        595,277   512,971

 CURRENT LIABILITIES
 Trade and other payables                            379,154   345,348
 Interest bearing loans and borrowings                11,941    11,467
 Income tax payable                                        –        55
 Provisions                                           17,296    14,271
 TOTAL CURRENT LIABILITIES                           408,391   371,141

 NON CURRENT LIABILITIES
 Interest bearing loans and borrowings                40,415    30,601
 Deferred tax liabilities                              5,645    14,426
 TOTAL NON CURRENT LIABILITIES                        46,060    45,027
 TOTAL LIABILITIES                                   454,451   416,168
 NET ASSETS                                          140,826    96,803

 EqUITy
 Contributed equity                                   17,119    17,119
 Reserves                                                110     7,778
 Retained earnings                                   123,597    71,906
 TOTAL EqUITy                                        140,826    96,803
        Cash Flow Statement
42 ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT




                   CASH FLOW STATEMENT YEAR ENDED 31 DECEMBER 2006

                                                                                      2006           2005
                                                                                      $’000          $’000

                   CASH FLOWS FROM OPERATING ACTIvITIES
                   Receipts from customers                                       1,468,366       1,742,276
                   Payments to suppliers and employees                         (1,458,708)     (1,573,100)
                   Interest received                                                  6,750           3,564
                   Interest paid                                                    (4,621)         (3,093)
                   Income tax paid                                                      (58)        (9,732)
                   Net Cash Flows from Operating Activities                         11,729        159,915

                   CASH FLOWS FROM INvESTING ACTIvITIES
                   Purchase of plant and equipment                                 (3,460)         (8,366)
                   Proceeds from sale of property, plant and equipment             11,123              863
                   Purchase of investments                                               –        (48,776)
                   Proceeds from sale of available for sale financial assets       87,350                –
                   Dividends received                                                    3               1
                   Net Cash Flows from/(used in) Investing Activities               95,016        (56,278)

                   CASH FLOWS FROM FINANCING ACTIvITIES
                   Dividends paid                                                        –        (70,000)
                   Payment of finance lease liabilities                           (15,935)        (11,169)
                   Loans to related parties                                       (18,642)        (56,037)
                   Loans from associates and joint ventures                         35,000             248
                   Repayment of borrowings                                               –           (950)
                   Net Cash Flows from/(used in) Financing Activities                  423      (137,908)
                   Net increase/(decrease) in cash and cash equivalents           107,168         (34,271)
                   Cash and cash equivalents at beginning of period               125,547         159,818
                   Cash and cash equivalents at end of period                     232,715         125,547
Statement of Recognised Income & Expense
                                                                                   ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT 43




 STATEMENT OF RECOGNISED INCOME AND EXPENSE YEAR ENDED 31 DECEMBER 2006

                                                                     2006      2005
                                                                     $’000     $’000


 Net gains on available for-sale investments                              –    7,628
 Net realised gains on disposal of available for-sale investments   (7,628)         –
 Foreign currency translation                                          (40)      (40)
 Net (loss)/income recognised directly in equity                    (7,668)    7,588
 Profit for the year                                                51,691    59,277
 Total recognised income and expense for the year                   44,023    66,865
        Notes to the Financial Statements
44 ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT




                   NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2006

                   NOTE 1. BASIS OF PREPARATION OF THE SPECIAL PURPOSE FINANCIAL REPORT
                   The directors have prepared this special purpose financial report as they consider that the presentation of financial information for the year ended 31 December 2006,
                   with comparative information for the year ended 31 December 2005, would be of benefit to its member. The Annual Financial Statements for the year ended
                   31 December 2006 are available free to the member upon request. The directors have determined that the accounting policies adopted are appropriate to meet
                   the needs of the member.
                   The directors have determined that the level of presentation appropriate for its member is consistent with that required under AASB 1039 Concise Financial Reports
                   except for the discussion and analysis.
                   The financial report is a special purpose financial report that has been prepared in accordance with the recognition and measurement requirements of Australian
                   Accounting Standards and other mandatory professional reporting requirements in Australia.
                   The special purpose financial report has been prepared in accordance with the historical cost basis except for current other financial assets that have been measured
                   at fair value.
                   The special purpose financial report is presented in Australian dollars.
                   The accounting policies are consistent with those of the previous year.
                   The special purpose financial report does not include all notes of the type normally included within the Annual Financial Statements, and therefore cannot be expected
                   to, provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the Annual
                   Financial Statements for the year ended 31 December 2006. The special purpose financial report should be read in conjunction with the Annual Financial Statements
                   for the year ended 31 December 2006 which can be requested by telephoning the Corporate Communications Manager, Mrs Janine Sherringham on (02) 9499 0999 or
                   by email janine.sherringham@abigroup.com.au.
                                                                                                                                                                     ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT 45




                                                                                                                                                  2006            2005
                                                                                                                                                  $’000           $’000

NOTE 2: REvENUE
Revenue from continuing operations
Construction                                                                                                                                  1,373,347       1,275,464
Property and other investments                                                                                                                        –             672
Total revenue from operating activities                                                                                                       1,373,347       1,276,136
Total revenue from outside the operating activities                                                                                             31,393          20,928
Total revenue from continuing operations                                                                                                      1,404,740       1,297,064


The Group’s share of revenue from joint ventures is excluded from revenue noted above and from the income statement in accordance
with Accounting Standards. The delivery of a number of projects by the Group is in the form of joint ventures. Details of the Group’s share
of joint ventures’ revenue are provided as additional information below as Revenue – Group and joint ventures. Revenue – joint ventures
represents the Group’s share of the operations of the joint venture or associated entity.

Revenue – Group and joint ventures
Revenue from continuing operations                                                                                                            1,373,347       1,276,136
Revenue – joint ventures                                                                                                                         85,373               –
Total revenue from outside the operating activities                                                                                              31,393          20,928
Total revenue – group and joint ventures                                                                                                      1,490,113       1,297,064


NOTE 3: DIvIDENDS PAID
Dividends paid during the period
Special dividend                                                                                                                                     –          70,000


Due to Abigroup Limited and its wholly owned subsidiaries joining a tax consolidation group, the franking credits have been transferred to the head entity.


NOTE 4: SEGMENT REPORTING
The Group’s primary segment reporting format is business segments as the Group’s risk and rates of return are reflected
predominantly in the products and services produced.
The construction segment encompasses the areas of building, civil engineering, project management and property development. The maintenance segment
encompasses the areas of asset maintenance, road maintenance and electronic technology. Geographically the consolidated group operates predominantly within
Australia. The consolidated entity’s operations in New Zealand do not form a significant segment. Property and other investments incorporates investments held.
        Notes to the Financial Statements
46 ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT




                   NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2006

                                                                                             CONTINUING OPERATIONS                             DISCONTINUED OPERATIONS                  TOTAL
                                                                                                          Property &
                                                                              Construction         Other Investment                 Subtotal
                                                                      2006          2005         2006         2005         2006        2005          2006        2005        2006        2005
                                                                      $’000         $’000        $’000        $’000        $’000       $’000         $’000       $’000       $’000       $’000

                   Revenue
                   Sales to external customers                    1,458,720     1,275,464           –           672    1,458,720   1,276,136             –    237,598    1,458,720 1,513,734
                   Other income
                   Interest                                          7,500          3,564           –            –        7,500       3,564              –          –       7,500       3,564
                   Gains on sale                                     7,098            863      16,792       16,500       23,890      17,363              –          –      23,890      17,363
                   Dividends                                             –              –           3            1            3           1              –          –           3           1
                   Total other income                               14,598          4,427      16,795       16,501       31,393      20,928              –          –      31,393      20,928
                   Revenues                                       1,473,318     1,279,891      16,795       17,173     1,490,113   1,297,064             –    237,598    1,490,113 1,534,662

                   Results
                   Segment result                                   47,663         69,721      16,795       17,071       64,458      86,792              –      5,594      64,458      92,386
                   Net interest                                      2,879            471           –            -        2,879         471              –          –       2,879         471
                                                                    50,542         70,192      16,795       17,071       67,337      87,263              –      5,594      67,337      92,857

                   Unallocated expenses                                                                                       –      (6,423)             –          –           –      (6,423)
                   Profit before income tax                                                                               67,337      80,840             –       5,594      67,337      86,434
                   Income tax expense                                                                                   (15,646)    (25,466)             –     (1,691)    (15,646)    (27,157)
                   Net profit for the year                                                                               51,691      55,374              –      3,903      51,691      59,277
                   Assets
                   Segment assets                                  595,277       423,785            –       60,269      595,277     484,054              –     28,917     595,277     512,971
                   Total assets                                    595,277       423,785            –       60,269      595,277     484,054              –     28,917     595,277     512,971

                   Liabilities
                   Segment liabilities                            (454,451)     (407,066)           –             –    (454,451)   (407,066)             –     (9,102)   (454,451)   (416,168)
                   Total liabilities                              (454,451)     (407,066)           –             –    (454,451)   (407,066)             –     (9,102)   (454,451)   (416,168)
                   Net assets                                      140,826         16,719           –       60,269      140,826      76,988              –     19,815     140,826      96,803

                   Other segment information:
                   Equity accounted investments
                   included in segment assets                        1,204              –           –             –       1,204           –              –          –       1,204           –
                   Acquisition of property,
                   plant and equipment                              29,683         27,036           –             –      29,683      27,036              –      2,651      29,683      29,687
                   Depreciation                                      5,414          8,586           –             –       5,414       8,586              –        890       5,414       9,476
                   Amortisation                                      6,890          5,319           –             –       6,890       5,319              –         59       6,890       5,378
                                                                                                                                            ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT 47




                                                                                                                               2006      2005
                                                                                                                               $’000     $’000

NOTE 5: SUBSEqUENT EvENTS
There are no matters or circumstances that have arisen since the end of the year that have significantly affected or may
significantly affect the operations of the economic entity, the results of these operations or the state of affairs of the
consolidated entity in subsequent financial years.

NOTE 6: CONTINGENT LIABILITIES
(a) In respect of the Group excluding the Abigroup Leighton Western Sydney Orbital (M7) Joint venture,
    guarantees to third parties arising in the normal course of business.                                                    224,318   177,590

(b) In respect of the Abigroup Leighton Western Sydney Orbital (M7) Joint venture as required under the
    design and construct deed.                                                                                                20,750    72,500
        Independent Audit Report
48 ABIGROUP 2006 ANNUAL REVIEW SPECIAL PURPOSE FINANCIAL REPORT




                   INDEPENDENT AUDIT REPORT TO THE MEMBER OF ABIGROUP LIMITED

                   SCOPE
                   The financial report and directors’ responsibility
                   The financial report is a special purpose financial report and comprises the balance sheet, income statement, of recognised income and expense, cash flow statement, accompanying notes to the financial
                   statements, and the directors’ declaration for Abigroup Limited (the company) and the consolidated entity, for the year ended 31 December 2006. The consolidated entity comprises both the company
                   and the entities it controlled during that year.
                   The directors of the company are responsible for preparing a financial report that presents fairly the financial position and performance of the company and the consolidated entity. This includes responsibility
                   for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the
                   financial report. The directors have determined that the accounting policies used and described in Note 1 to the financial statements are appropriate to meet the needs of the member. These policies do not
                   require the application of all Accounting Standards and other mandatory financial reporting requirements in Australia. No opinion is expressed as to whether the accounting policies used are appropriate to
                   the needs of the member.
                   The financial report has been prepared for distribution to the member. We disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person
                   other than the member, or for any purpose other than that for which it was prepared.
                   Audit approach
                   We conducted an independent audit of the financial report in order to express an opinion on it to the member of the company. Our audit was conducted in accordance with Australian Auditing Standards in
                   order to provide reasonable assurance as to whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective
                   testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.
                   We performed procedures to assess whether in all material respects the financial report presents fairly, in accordance with the accounting policies in Note 1 to the financial statements, a view which is
                   consistent with our understanding of the company’s and the consolidated entity’s financial position, and of their performance as represented by the results of their operations and cash flows.
                   We formed our audit opinion on the basis of these procedures, which included:
                   • examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and
                   • assessing the appropriateness of the disclosures used and the reasonableness of significant accounting estimates made by the directors.
                   While we considered the effectiveness of management’s internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide
                   assurance on internal controls.
                   We performed procedures to assess whether the substance of business transactions was accurately reflected in the financial report. These and our other procedures did not include consideration or
                   judgement of the appropriateness or reasonableness of the business plans or strategies adopted by the directors and management of the company.
                   INDEPENDENCE
                   We are independent of the company, and have met the independence requirements of Australian professional ethical pronouncements.
                   AUDIT OPINION
                   In our opinion, the financial report of Abigroup Limited presents fairly, in accordance with the accounting policies described in Note 1 to the financial statements, a view which is consistent with our understanding
                   of the company’s and the consolidated entity’s financial position as at 31 December 2006, and of their financial performance as represented by the results of their operations and cash flows for the year then ended.




                   ERNST & yOUNG                                                        DOUGLAS BAIN
                   Sydney 9 March 2007                                                  Partner
HEAd OffIcE
Abigroup Limited &               New South Wales        Victoria              South Australia       Queensland            Townsville            Mackay                  Bilfinger Berger
Abigroup Contractors             924 Pacific Highway,   41 Burwood Road,      33 Fullarton Road,    129 Logan Road,       2 Crowder Sreet,      Romeo House,            Australia Pty Limited
924 Pacific Highway,             Gordon NSW 2072        Hawthorn VIC 3122     Kent Town SA 5067     Woolloongabba         Garbutt East,         1 Romeo Street,         Suite 401,
Gordon NSW 2072                  Tel: +612 9499 0999    Tel: +613 9816 5555   Tel: +618 8362 1999   QLD 4102              Townsville QLD 4814   North Mackay QLD 4740   Link Business Park
Tel: +612 9499 0999              Fax: +612 9499 8822    Fax: +613 9816 5566   Fax: +618 8363 9849   Tel: +617 3391 7311   Tel: +617 4779 0110   Tel: +617 4953 4340     13-15 Lyon Park Road
Fax: +612 9499 8822                                                                                 Fax: +617 3391 7414   Fax: +617 4779 0420   Fax: +617 4953 4337     North Ryde NSW 2113
Email: abimail@abigroup.com.au                                                                                                                                          Tel: +612 8198 7100
Web: www.abigroup.com.au                                                                                                                                                Fax: +612 8178 7104
ABN 63 000 358 467

								
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