GCS ANNUAL REPORT 2014

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FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014 DIRECTORS’ REPORT (CONTINUED) LIKELY DEVELOPMENTS AND EXPECTED RESULTS IN OPERATIONS (continued) Moving into FY15, the company will continue to maintain a strong focus on disciplined and strategic capital management to enhance the Group’s capital structure and debt maturity profile. This focus on debt initiatives will include reviewing of current debt portfolio, continuing and ongoing discussions with current principal banker, review of non-banking debt facilities to augment and/or refinance the current debt portfolio and continuation of reduction in net debt and improvement in net debt to equity ratio. The company is expecting to meet with its Principal Banker and potential alternative funders during the December quarter 2014 to review the Group’s debt portfolio. The GCS Group remains committed to executing its strategy of diversifying its revenue base to more sustainable annuity streams which offer integrated labour and equipment solutions to customers over the long term project life cycle. The company continues to focus on improving and optimising the returns from our portfolio of businesses by continuing to drive operational efficiencies, diversify our revenue stream, reducing costs, and maintaining a disciplined approach to managing the balance sheet. The company is well placed to meet future growth and expansion opportunities on the back of a solid and well established integrated product and services platform. ENVIRONMENTAL REGULATIONS The operations of the consolidated entity are subject to environmental regulation under Commonwealth, State and Territory legislation. The Group has implemented policies which require all operations to be conducted in a manner to comply with regulation, protect, and preserve the environment. The Directors are not aware of any material breaches of environmental regulations during the year or as at the date of this report. The Company has met all its reporting requirements under the relevant legislation during the year and continually aims to improve its environmental performance. The Company does not currently meet the thresholds of the National Greenhouse and Energy Reporting Act 2007 and is therefore not currently subject to its reporting requirements. CORPORATE GOVERNANCE The Board is committed to achieving the highest standards of corporate governance. The Board reviews and improves it policies and procedures to ensure they are effective for the Group and fulfil the expectations of stakeholders. The Board’s Corporate Governance Statement is outlined on page 26. DIVIDENDS With the continuing focus on debt reduction and the levels of uncertainty prevalent in the wider economy, the Board has determined in the best interests of the Company to not declare a final dividend for FY14. During FY13 a fully franked interim dividend of 2.00 cents per share totalling $3.4m was declared. The dividend was paid on the 5th April 2013, the dividend reinvestment plan applied. 38 GLOBAL CONSTRUCTION SERVICES LIMITED ANNUAL REPORT 2014
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014 REMUNERATION REPORT (AUDITED) Letter from Chairman of Remuneration Committee Dear Shareholders During FY14, your company has undergone a number of structural changes to improve efficiency and market penetration. The Chairman’s report has noted Global Construction Services Limited’s focus on building shareholder value and sales growth in our key markets. As Chairman of the Remuneration Committee, my focus is on ensuring the Company has a competitive remuneration structure in place that ensures that key management have a strong link between Company performance and reward, are motivated to achieve key Company objectives, and contribute to the long term Company success. Global Construction Services Limited is committed to ensuring its remuneration structure is appropriately aligned with shareholder interests and, in that sense, needs to ensure that key executive staff are motivated, rewarded, and retained. Following on from the no vote against the Remuneration Report at the Company’s Annual General Meeting in 2013 and leading into FY15, the Company has invested considerable time in engaging with key stakeholders and advisors to improve the remuneration governance framework. In light of the noted considerations, the Board has taken the following steps: Proposed changes for 2015 Rationale Fixed remuneration There will not be any increase above current contractual requirements and/or CPI and contractual terms Short term incentive plan “STIP” To be restructured – no STI paid in FY14 Long term incentive plan “LTIP” Planning to implement LTIP NED fees to remain frozen NED fees to remain frozen and in line with fees from 2013 and 2014 I would also like to acknowledge the support and contributions from the other members of the Remuneration Committee and the buy in from Senior Executives. I trust that shareholders will welcome the Board’s undertakings and will support our initiatives to demonstrate an improved remuneration framework and outcomes as part of the FY15 Annual Report. If any shareholders or their representatives would like to engage with me further on remuneration matters, please write to me with your feedback and comments and I will be happy to reply. Regards Peter Wade Chair of the Remuneration Committee GLOBAL CONSTRUCTION SERVICES LIMITED ANNUAL REPORT 2014 39
Page 1 and 2: ANNUAL REPORT 2014 GLOBAL CONSTRUCT
Page 3 and 4: GCS is a leading supplier of integr
Page 5 and 6: Company Highlights • GCS successf
Page 7 and 8: We are committed to safety - it’s
Page 9 and 10: Our strategy is underpinned by our
Page 11 and 12: We offer local and regional experti
Page 13 and 14: Formwork & Concreting Scaffold & Ac
Page 15 and 16: Resource, Industrial, Oil & Gas Mar
Page 17 and 18: Commercial Market Our operations in
Page 19 and 20: Residential Market Our operations i
Page 21 and 22: Locations map Karratha Port Hedland
Page 23 and 24: Our people are the key to our succe
Page 25 and 26: GCS is a major contributor to commu
Page 27 and 28: On-site Workforce We supply and man
Page 29 and 30: FOR THE FINANCIAL YEAR ENDED 30 JUN
Page 33 and 34: Plant & Equipment Our ever-expandin
Page 39: FOR THE FINANCIAL YEAR ENDED 30 JUN
Page 53 and 54: Vehicle Fleet Rentals GCS has conti
Page 59 and 60: Formwork & Concreting By offering h
Page 65 and 66: Scaffold & Access Solutions With un
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FOR THE FINANCIAL YEAR ENDED 30 JUN
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Site Accommodation Our temporary si
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CORPORATE DIRECTORY Directors Peter
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Specialised Site Services We provid
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GCS ANNUAL REPORT 2014

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