During 2016, CIMIC further diversified its existing activities, mining new materials markets (e.g. mineral sands) and new geographies (e.g. Canada), as well as through the strategic acquisitions of UGL and Sedgman. This was achieved by leveraging the Group’s financial strength, focusing on cash generation and an improved risk profile.
The acquisition of UGL complements and expands CIMIC’s services capabilities and provides a platform to develop and grow our presence in this strategic sector. Strong growth is expected from services opportunities particularly in road and rail infrastructure, oil and gas, defence, water and renewable energy. CIMIC is already working alongside UGL in delivering the Melbourne Water Nutrient Removal Plant, and the Sydney Metro Northwest Operations, Trains and Systems Public Private Partnership, which is a significant part of Australia’s largest transport infrastructure project.
The Group’s mission is to generate sustainable economic returns for shareholders by delivering projects for our clients while providing safe, rewarding and fulfilling careers for our people. CIMIC is in an exceptional position to capitalise on growth opportunities and pursue selective acquisitions to support long-term sustainable growth, both domestically and internationally. The strategic acquisitions during 2016, and the unconditional takeover offer for Macmahon in 2017, reflect this growth-oriented strategy.
The Group’s objectives are to:
continue to strengthen existing capabilities and win a fair share of work in construction, mining and mineral processing, services and PPPs, by building on the Group’s strong competitive position;
develop and expand the Group’s services business by benefiting from complementary activities and securing opportunities in market growth areas in Australia and select new geographies.
further expand in the PPP sector, building on the robust pipeline of opportunities in the Australia Pacific region;
achieve growth by diversifying according to commodity and activity in select markets and geographies, e.g. by further exporting mining skills into North and South America;
expand existing capabilities into adjacent markets and services;
continue to pursue operational excellence and optimise operations to achieve sustainable profits and improve sustainability.