EXPERIENCE

layneglobal

22CURxf

THE VALUE OF

EXPERIENCE

LAYNE FISCAL YEAR 2015

SUSTAINABILITY SUMMARY


OUR OPERATIONAL FOOTPRINT

Layne is a global water management, construction and drilling

company. We provide responsible solutions for water, mineral

and energy challenges on four continents and in 11 countries:

Australia, Burkina Faso, Brazil, Canada, Ethiopia, Guinea, Mali,

Mexico, Tanzania, United States and Zambia. Globally, we

employ more than 3,000 employees in over 70 offices.

Water + Mineral + Energy

At Layne, our integrated approach allows us to offer

more value to our customers. Our approach ensures

streamlined communications, expedited timelines

and a constant focus on our overriding values of

safety, sustainability, integrity and excellence.

WATER

MINERAL

ENERGY

Each day in the United States, nearly six billion

gallons of water are lost due to crumbling

infrastructure. This deficit is occurring at a time

when water demand is climbing due to population

growth, urbanization and increasing industrial

use. Throughout the United States and around the

world, Layne’s tailored, responsible and integrated

solutions help manage water in every phase of its

lifecycle, protecting this most precious of natural

resources for today and generations to come.

Combined with our foreign affiliates, Layne is one

of the three largest providers of drilling services

for the global mineral services industry, focusing

on exploration and water management needs. We

make safe, environmentally sound and socially

responsible decisions. With a focus on gold,

the universal metal, and copper, whose chief

commercial use is the delivery of electricity,

Layne is well-positioned in markets with positive,

long-term fundamentals.

Oil and gas exploration and production companies

use millions of barrels of water every day in their

energy activities. The rise of hydraulic fracturing

and horizontal drilling is further stressing water

availability, especially in areas of the country that

are already facing water access issues. Layne’s

Energy Services division provides cradle-to-cradle

water management solutions that allow energy

companies to source, transfer, store and recycle

water in a safe, sustainable and responsible manner.

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STRATEGY & MANAGEMENT

At Layne, we are committed to a culture of honesty and

accountability. Our Code of Business Conduct and Ethics sets

high standards for our company, businesses and employees.

Policies help us reach our operating and financial goals with

integrity—a core value. Our Board of Directors follows our

Corporate Governance Guidelines as they work to serve

the best interests of the Company and our shareholders.

Board of Directors

The Board of Directors, the decision-making body of the Company, oversees management and governance

and advises the executive team. The Board and its committees—the Audit Committee, the Compensation

Committee, and the Nominating & Corporate Governance Committee—also select, evaluate and compensate

the CEO, oversee CEO succession planning and review financial and business strategies. Each committee

includes at least three solely independent directors. A Board-approved charter designates structure and

responsibilities. Visit www.layne.com/en/about/board-of-directors.aspx.

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Sustainability Council &

Sustainability Site Coordinators

The Layne Sustainability Council, established in

2011, includes representatives from all divisions and

functional areas. In FY15, our Council did not meet

as frequently given the business priorities of the

company. Nevertheless, the Council’s previous work

of providing baselines for key metrics and tracking

sustainable solutions remain in place. The baselines

increased internal awareness of our own operational

impacts and the structure that the Council created

remains solid despite emphasis on other business

priorities. Similarly, our sustainability site coordinators

continued to collect data and provide on-site support

for sustainability initiatives.

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Ethical Behavior

Every day, Layne employees live our four core values of safety, sustainability, integrity and excellence. Our Code

of Conduct underscores our values. The Code outlines Layne’s policies for ethical behavior and legal compliance

and applies to all employees and certain third parties. The Code can be found online and on Layne’s intranet,

translated into languages of the countries where we operate.

As part of our commitment to promoting ethical behavior and integrity, we produced a video on ethics, compliance

and the Code for all our global operations. Management-level and administrative office employees use this video in

a training course for new hires. We have also designed and translated a program on anti-corruption and the Foreign

Corrupt Practices Act (FCPA) for corporate employees and target employees in international locations. An annual

training is required of all employees impacted by FCPA issues. These trainings are available in four different

languages: French, English, Spanish and Portuguese.

In FY15, Layne agreed to pay the U.S. Securities and Exchange Commission (SEC) $3,893,472.42 in disgorgement

plus $858,720 in prejudgment interest as well as a $375,000 penalty related to a U.S. Foreign Corrupt Practices Act

(FCPA) investigation. For a period of two years, the settlement requires the company to report to the SEC on the

status of its remediation and implementation of measures to comply with the FCPA. Layne consented to the order

without admitting or denying fault.

Through the Ethics Hotline, our employees can report violations of the Code or the law. The hotline (phone and

online) is managed by EthicsPoint and can be accessed anonymously. We also expect ethical behavior from our

agents, representatives and consultants. We conduct due diligence and background checks on third parties who

engage with foreign government entities on our behalf. All contract agreements contain termination clauses

regarding corruption.

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SUSTAINABLE OPERATIONS

At Layne, the experience of our employees directly

contributes to operating responsibly. From safety to energy

and everything in between, our employees execute their

roles with dedication and commitment and generate the

enduring performance of our company.

Safety

Layne’s highest priority is safety. Our employees are the foundation of our business and keeping our employees safe

is everyone’s job—from the highest levels of the organization down to the newest person on a job site. Through

our fiscal challenges, our commitment to safety has never wavered. We have added new innovations and goals to

our safety processes and tools and reorganized safety coordinator responsibilities to enable Division Leadership

to ensure focus occurs where it will bring the highest value.

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GoPro Cameras Shine a New Light on Safety

At Layne, we cultivate The Value of Experience by learning from each

other. We recognize that seeing and observing safety practices in the

field is extremely valuable. Many employees have stated that the best

way to stay safe is to learn from their experienced colleagues. Building

off that idea, we devised an innovative new plan for employees to watch

our procedures in jobsite situations through the use of GoPro cameras.

By using these cameras to record safety in action, we are enhancing

the safety training curriculum delivered across our company.

This is how it works: Layne employees participating in the training

demonstration attach the GoPro cameras to their helmets and then

perform a normal jobsite task. Through performing the task, the video

captures a first-person narrative of the steps taken to ensure the safe

execution of the task. Trainees see what they will eventually do in the field.

Additionally, they are able to ask more informed questions and develop

critical thinking around how they would address a safety problem in the

field. At Layne, we know that “seeing is believing” and there is no better

way to train our employees in our culture of safety than through

the lens of first-hand experience.

New Technology Enhances Safety Performance

Safety at Layne improves through information sharing, ultimately

supporting behavior-based prevention. In FY15, we took steps to enhance

safety data collection and sharing through the implementation of a

new company-wide software system. Through this system, we receive

raw data on a daily basis, enabling us to track trends and respond. Our

system is designed to make us even more proactive about the steps we

are taking to ensure the safety of our employees. We are in the process

of deploying the system throughout our divisions and look forward to

driving improvements in our safety performance throughout the months

and years ahead.

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LAYNE OSHA SAFETY STATISTICS*

CY2014 CY2013 CY2012

Total Recordable Incident Rate (TRIR) 4.02 3.39 4.06

Lost Time Incident Rate 0.8 0.6 0.8

Lost Time Cases 22 16 26

*OSHA DATA ARE APPLICABLE TO U.S. OPERATIONS.

LAYNE GLOBAL CONSOLIDATED SAFETY STATISTICS*

CY2014 CY2013 CY2012

Total Recordable Incident Rate (TRIR) 2.79 2.37 2.93

Lost Time Incident Rate 0.56 0.52 0.66

Lost Time Cases 24 25 35

*CONSOLIDATED WORLDWIDE SAFETY DATA.

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Energy & Carbon Footprint

Layne’s purpose as a company is to protect the world’s essential natural resources, and we strive to demonstrate

our responsibility through our daily operations. We are committed to lowering the use of diesel and gasoline fuel

at our job sites and electricity use at our facilities. For four years, we have reported on our carbon emissions and

climate change strategy, risk and opportunity through the Carbon Disclosure Project (CDP). Our CDP response is

available at www.cdp.net.

Our environmental performance in FY15 demonstrated improvements in performance, mainly resulting from

operational changes. Although we continue to measure our impact across all of our facilities, we have shifted

our reporting practices to capture the 10 facilities that represent the largest impact on our overall numbers.

We will continue to evaluate our reporting practices and make any additional changes as needed.

In FY15, our use of natural gas decreased at our 10 highest impact facilities by 12% over FY14 levels. Additionally,

we decreased our electrical use at our top 10 facilities by 21% in FY15 over FY14. Electricity use decreased by 26%

across these facilities between FY13 and FY15. This change was primarily due to the move to our new corporate

facilities and the phasing out of certain water treatment related activities in Phoenix.

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GREENHOUSE GAS EMISSIONS + ENERGY CONSUMPTION

ELECTRICITY USE

(MWHs)

Greenhouse Gas

Emissions (MTCO 2

E)

Energy Consumption

(MWHs)

Scope 1 Scope 2 Scope 1 and 2

Natural Gas* Diesel Gasoline Propane* Total Electricity* Total

813 35,695 8,791 1,344 46,643 2,686 49,329

4,498 168,087 37,199 4,264 214,048 4,481 218,529

* NATURAL GAS AND ELECTRICITY USE IS FOR OUR 10 HIGHEST IMPACT U.S. FACILITIES. PROPANE IS FOR JOB-SITES AND DOES NOT INCLUDE PROPANE USED BY FACILITIES,

WHICH IS ESTIMATED TO BE LESS THAN TWO PERCENT OF TOTAL FOOTPRINT. WE EXTRAPOLATED TO CALCULATE OUR EMISSIONS FOR OUR “BULK FUEL” CONSUMPTION

BASED ON SPEND DURING THE REPORTING YEAR, AND USED ASSUMPTIONS BASED ON THE AVERAGE PRICE PER GALLON WE PAID FOR FUEL IN FISCAL YEAR 2015 FOR

FUEL PURCHASED THROUGH OUR CREDIT CARD VENDORS.

7,000

FY2013

FY2014

6,000

5,000

FY2015

4,000

3,000

2,000

1,000

0

* ELECTRICITY USE DATA REPRESENTS LAYNE’S 10 FACILITIES WITH THE HIGHEST

ELECTRICITY USE ACROSS OUR OPERATIONS FOR FY13 TO FY15.

Electricity use at our 10 highest impact facilities decreased by 26% between

FY13 and FY15.

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Waste & Recycling

Last year, Layne began partnering with Waste

Management to provide a centralized waste disposal

process across our U.S. operations. By using a single

provider, we aim to better manage costs, optimize

recycling efforts and standardize U.S. waste streams.

Our partnership has enabled us to report our waste

data for the first time in this year’s report.

WASTE MANAGEMENT

RECYCLED WASTE

4.3%

WASTE TO LANDFILLS

Layne recycled 4.3% of our waste

in FY15.

95.7%

* U.S. OPERATIONS ONLY

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Water Footprint

Layne tracks our water use across all facilities and

divisions. For FY15, we are reporting on the 10

facilities with the largest water use. Our water use

decreased by over 50% between FY14 and FY15,

which is primarily due to changes in our water

treatment business in Phoenix, Arizona.

MUNICIPAL WATER CONSUMPTION BY DIVISION

Water Resources

Division

Inliner

Division

Corporate and

Shared Facilities

Heavy Civil

Division

Gallons 3,301,712 1,203,004 297,325 427,000 5,229,041

Total

Cubic Meters 12,498 4,554 1,125 1,616 19,794

* WATER USE IS FOR OUR 10 HIGHEST IMPACT U.S. FACILITIES ONLY. EXCLUDES JOB-SITE WATER USE AND FACILITIES WITH ON-SITE WELLS.

Layne reduced our water use at our

10 highest impact facilities by over

50% between FY14 and FY15.

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SUSTAINABLE PRODUCTS & SERVICES

At Layne, we share The Value of Experience through sustainable

solutions. In FY15, we refined our definition of Sustainable

Solutions and developed a methodology for determining the

percentage of each of our products and services that is

sustainable. We engaged project managers to determine the

extent to which core Layne services minimize client energy

use, water use or waste. By using this system, we enable

more accurate tracking of our direct business contributions

to sustainable and responsible operations.

Over the last two years, we saw significant increases in our Inliner cured in place pipe (CIPP) liner, recovery

wells and water transfer services. Additionally, we experienced a remarkable 40% increase in our water supply

identification and development business. This increase was primarily due to alternate water supply development

in the Louisiana industrial corridor between Baton Rouge and New Orleans, a water stressed region, as well

as an increase in mine dewatering work.

Aeration and Innovation in Rockford, IL

Layne strives to deliver value to our customers

by finding cost effective solutions to aging

infrastructure. Sustainable solutions enable

our customers, especially municipalities with

tight budgets, to benefit from our innovative

solutions to even their largest problems. In

Rockford, Illinois, our Water Resources team

designed a solution to revamp a water source

that was exhibiting high levels of volatile

organic compounds (VOCs). Layne employees

determined that the well in question, Rockford

UW6, was a likely site candidate to have an

aeration process installed to remove the VOCs.

Layne installed six cone-like aerators and

it was precisely the right solution for the

situation. As a result, the level of VOCs in the

water decreased dramatically and Rockford

was able to save the well. The source is

projected to pump 475 million gallons in 2015.

Layne presented the findings of the project

alongside Rockford at a recent American Water

Works Association conference in Illinois. We

are very pleased that a simple, cost effective

solution provided such a useful end result.

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REVENUE FROM SUSTAINABLE SOLUTIONS

% of Revenue from Sustainable Solutions

40%

FY2014

30%

FY2013

20%

FY2015

Layne Inliner STX (UV Cured CIPP)

At Layne, our employees recognize the value of connecting innovation

with sustainability. At our Orleans, Indiana facility, we are working on

an exciting new line of products that demonstrate our commitment to

both principles. In FY15, our Inliner division based in Orleans launched

a new type of solution called the STX (UV Cured CIPP). This product is

revolutionary in terms of how it can be stored, transported and handled by

our customers. Other Inliner solutions, including many of our most popular

products, require heat to enable the correct reaction for installation. With

the UV Cured CIPP, the material responds to UV light to enable that same

reaction. This advancement has many benefits. For example, the product

does not need to be kept refrigerated in order to maintain its usefulness.

As a result, it has a longer shelf life of six weeks (compared to 10 days

for heat-reactive inliner products), so it can be shipped farther distances.

Additionally, Layne is saving fuel costs by being able to ship the product

with non-refrigerated storage containers. Through this new product, we

are serving customers as far away as Alaska and the U.S. Virgin Islands,

while boasting a lower environmental footprint.

10%

0%

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1800 Hughes Landing Boulevard

Suite 700

The Woodlands, TX 77380

281.475.2600

layne.com

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