Employee Update August 2015

Message from the CEO

Welcome to the first employee update for 2015.

This year is shaping up to be a busy one with a couple of very large overhauls amongst the mix for the year. Again we have a diverse set of projects that will make up the year with some of our usual power plant shutdowns as well as other works outside the power industry.

I am pleased to announce that we have a new Operations General Manager who started with us in April. Rob Jordan has been around the power industry both here and overseas and Rob came back to Australia from Germany to take up this role.

We are getting close to completing our first year with the MHPS group of companies. There have been some significant changes to how we report back to Japan with more changes to come. We do have access to a wider group of businesses and factories and we will be using these contacts to further our business opportunities here. On the ground here it is business as usual with a focus on delivering what the client wants and doing that safely, to the highest possible quality and at the budgeted cost.

Another change to the business is our continued safety focus and strategy. I am very pleased that our overall safety results are heading in the right direction and we are doing well. I am confident that Simon and Bryn and the rest of the team can continue to bring around a change in our safety culture and work with everyone to create an even safer workplace. I am asking all of MHPS Plant Services to be part of this change and remember that if it isn’t safe then don’t do it.

We will continue to roll out revised processes and procedures and I want all employees to make sure they are aware of the latest information for their workplaces. We will be ensuring that our systems on and off site are consistent and the best possible solutions for a safe workplace.

MHPS have released a new Code of Conduct for business operations. As part of the MHPS group of companies this Code supersedes our previous Code of Conduct. You can find the Code of Conduct on the website (http://anz.mhps.com). Please read through the Code. If you cannot access the website, please ask your supervisor or manager for a copy.

Until next time enjoy being part of the MHPS group of companies and above all stay safe and well.

Contributions This Issue

1 Message from the CEO

2 New Starters

2 Commercial & Marketing

3 Operations

6 Engineering

8 Breaker Electrical

10 Business Services

12 Upcoming Events

Safety Share

Reporting near misses and acting

to manage potential risks and

hazards is the marker of someone

who truly believes that safety is

important for them and their

workmates.

Our Challenge for now and into

the future is to take responsibility

for reporting all near misses and

hazards – no matter how small -

and doing what we can to

actively manage them.

Welcome to our new starters

Welcome to the following people who have started with MHPS Plant Services in permanent positions since the last employee update:

Rob Jordan General Manager, Operations Kaustubh Gupta Financial Accountant Mark Dickson IT Support Officer Lisa Bradshaw Senior Estimator Raquel Hicks Sue Lisle Craig Law

Equipment Administration Officer Contracts & Procurement Officer IT Support Officer

Commercial & Marketing

Commercial Over the last few months the Commercial team has been working on developing necessary templates and processes to handle the increased focus of clients on the contract conditions. These efforts are now being widely used for our current projects with great success. Our SAOs provide essential contractual support to our project managers and ensure that all is well documented and recorded.

The team is also looking forward to the new ERP system which is currently being worked on under the lead of Chris Donovan and the steering committee. It is expected that the new system, once fully installed will provide a number of process improvements and less manual handling. Tracey Richards will be part of the core ERP team and heavily involved in this project.

Contract & Procurement

As part of the ongoing initiatives the Contracts & Procurement team has been working on establishing framework agreements with a number of our key contractors. This will help to streamline the negotiation for the various projects and provide more firm rates and price stability.

Another main activity is mapping and documenting our contractor management and expanding on making sure that more contract conditions of the head contracts are being incorporated into our subcontracts.

Business Development

The team has been focusing on new opportunities especially in the Southern States and in the Northern Territory for MHPS Plant Services and Breaker. There are a number of opportunities which we follow at the moment. We are further looking into opportunities outside power generation as the traditional power generation industry is facing an increasing number of challenges.

With the fall in commodity prices and declining demand combined with the end of many major construction projects we are facing increased competition in our market segment. This means that we need to increase our focus on our competitiveness and look into new business models. Our performance on the projects is a vital part in this undertaking.

Among a number of initiatives the team has started to look into improvements for our estimation process. The main focus is on a suitable software solution which allows increasing efficiency and accuracy of our bids across the entire group. Together with operations the goal is to transition more estimating to the estimating group.

Our new MHPS Plant Services group marketing and capability brochure was completed and is now available as download or as online slide show on IMS under Marketing.

Operations

Plant and Equipment

P&E have been busy supplying new items to current jobs, including the rebranding of the equipment with MHPS Plant Services logos and stickers. Container signs, ute stickers and equipment stickers have all been part of the rebranding process.

In addition to this, P&E have been selling off some older and unused equipment. This will continue to occur to downsize the amount of equipment not being utilised. We will also be continuing to purchase new, efficient and innovative equipment for our jobs to keep them at the cutting edge of operations in the field. This also includes Breaker Electrical with some highly sophisticated equipment such as heat cameras and electronic equipment for the safest, technologically advanced electrical testing possible.

New 3.2t telehandler available for hire

Additionally, we have some industry leading equipment with flange alignment gear and torque wrench gear that has proven to be very successful on the RTAY job.

Some further capabilities have also been expanded in the Turbine equipment with a new surface grinder that has proven to be very efficient.

We had successful outages in NSW with Eraring and Vales Point to further develop MHPS Plant Services business nationwide. Additionally we have maintained a strong business in Queensland, to underpin our equipment supply to clients. Some exciting projects and possibilities are ahead in 2015-16, and P&E is looking forward to be a part of the success within MHPS Plant Services.

Yarwun

1. RTAY Maintenance

MHPS Plant Services have continued to service RTAY during the first half of the year with daily site maintenance tasks and site projects work. Some of the work that has been completed include, Boiler 2 ID Fan Replacement, Boiler 1 FD, ID and Seal Air Fan work, SDCC repair work on all units and the stage 1, 2 sky valves refurbishment and silencer modifications.

2. RTAY HRSG 2015

MHPS Plant Services have currently completed a small outage at RTAY on the Co-Generation facility, Gas Turbine and Heat Recovery Steam Generator. The critical path work for the outage was the C Service of the Gas Turbine which MHPS Plant Services support labour assisted with, the other major works included replacement of the GT inlet filters, the modifications to the GT outlet expansion joint, modifications to the HRSG steam headers and other statutory inspections.

The project is now in the post shut down phase with 15,500 hours worked to date. Safety initiatives and understanding your task have been the focus point for the project which has enabled MHPS Plant Services to be completed this work on time, under budget and best of all with Zero Harm to personnel or the environment.

Boiler 2 ID Fan Replacement HRSG – View from lay down pad

3. RTAY Boilers 2015

With the Co-Generation outage now behind us, we look towards the Boiler 2 and Boiler 3 outage later in the year which will see a significant amount of capital work completed to the Boiler 2, this will include a large amount of water wall replacement and significant air heater work. Boiler 3 will be a statutory inspection outage with major burner refractory work.

QAL

MHPS Plant Services has been working on a BLR#2 major outage from March 2015 – 20th Sep 2015 with meeting all milestone dates so far. In this outage MHPS Plant Services has been coordinating/communicating successfully with multiple work groups/contractors to finish work fronts as planned.

On average MHPS Plant Services has worked with crew members of 75 on days and 15 on nights with estimated man hrs of 62000 on this outage

The main work fronts on this outage are Air Heater Baskets replacement, Super-Heater Tubes repair, Furnace Scaffold, water wall tubes replacement, Fab Filter bags Change out, ID & FD Fan repairs, Ancillary Valves, Ash Hopper repairs, Burners, Mills & coal feeder’s repairs and the critical one was convection pass tube replacement.

Out of all work fronts, execution of Convection pass tube replacement was a very critical part of the schedule and also was very challenging for the crew members with very tight schedule/milestone dates. The crew members successfully replaced 1368 convection pass tubes without any LTI/MTI in which a lot of manual handling was involved. Also it has been successful in keeping the record of passing first hydro on convection pass tube replacement i.e 2 out of 2 so far.

Air Heater Baskets replacement was also very challenging for the crew members due to the limited space between the boilers & multiple work groups and this was finished successfully on time without any injury.

Safety:

MHPS Plant Services management team on QAL site is working very hard towards achieving “Zero Harm”. So far the record of safety on this outage is:

LTI Zero

MTI 1

First Aid 2

Alcohol tests 918

Drug tests 60

Safety observations 527

Refractory removal on CP tubes Scaffolds for CP Job

Callide

MHPS Plant Services are currently completing a mini outage at Callide on unit B1. The critical path work for the outage is the refurbishment of the HIP turbine, with other major works including overhaul of turbine valves, and a significant boiler statutory inspection scope.

The project is currently approaching 80% completion and 45,000 hours worked, with the most pleasing statistic being that there have been no injuries on the project to date. Toolbox topics and workforce interactions have been focusing on this excellent success, and encouraging everyone associated with the project to continue to do the things that have ensured this success to date.

There has been a considerable amount of emergent work come into the scope, especially in the areas of air heaters, duct and valve repairs. With the original work scope this has resulted in a peak workforce of 160 employees.

Valves

In recent month’s CS Energy at Callide has been the focus for Valve Services.

Firstly we completed a mini outage on C4 and we are currently nearing completion of a major valve

scope on B1. This scope of works included the largest quantity of statutory inspections on safety valves

carried out by us in a single shut down, around 80 PRV’s were re-certified in total.

We continue to try and secure work in other industries and locations, we have recently had some initial

discussions with NT Generation about our capabilities which sounds promising.

MHPS Plant Services Ventil PreVenTest Equipment testing a safety valve at Callide C4

Wivenhoe Preshut at Wivenhoe commenced on the 17th August for 6 weeks of work for approximately 37 employees until the 6th October. Major works planned for the outage are splityard work, Draft tube resin bearing refurbishment and aquarium drain. Several safety initiatives will be introduced during the Wivenhoe outage including new PHA format, as well as the rewards and recognition program.

Western Downs Western Downs area is continuing with day to day work at Darling Downs Power Station, Kogan Creek, Braemar 1 and 2 and Condamine with a crew of between 4 and 12 people at any one time.

Kogan Creek planning of the 2016 outage is underway with key MHPS Plant Services personnel heading over to Kogan Creek PS to sit with CSE inspectors to develop workpacks and identify long lead spares.

Engineering

Power Industry

Design Office is continuing to look at the experiences at the Vales Point Unit 5 outage last year to see what we can do better when the Unit 6 outage rolls around in March next year.

We will be changing out the economiser elements again & while the systems worked pretty well this time, we are always looking to improve. As we progress this, we will closely work with Operations to come up with practical and safe systems.

Likewise the burner tube replacement will also be looked at to improve our performance and hopefully make this part run a bit smoother this time.

We have also been helping with the bunker repairs at Vales Point with drawings of the repairs as well calculations to confirm how much of the bunker can be removed during the repair process.

Unit 5 Economiser Element

Unit 5 Burner Tubes

Another job just completed is the design of pipework and supports for new sootblowers at Kogan Creek to be installed in the rear pass. The blowers are located near the existing reheater sootblowers and will help keep the unit on line and running more efficiently.

Also at Kogan we will be installing acoustic branches on the main steam line to eliminate some recent problems with steam pipe vibrations. The branches will be located close to the turbine on the warming lines and are sized as resonant chambers to absorb the vibration energy. The forgings made from F91 material will be assembled and heat treated at Wacol before installation at site.

Other work for CS Energy includes design verification of modifications to the Callide B fuel oil pumping stations for new pumps we are currently installing.

We have also just completed some work on the Darling Downs Power Station bore water system designing a bypass system around the cooling towers, a new underground drainage system for cooling tower overflow and modifications to the cooling towers themselves to make maintenance easier.

Sugar Industry

Design Office has just completed some work for a sugar mill in Africa where we carried out some performance predictions of an existing boiler that was struggling to make load. As part of the work we

also looked at capacities of the existing fans and provided recommendations on how to regain and even exceed the original design load for the unit. The mill is located in Kenya not far from Lake Victoria. Further follow up work is also underway for the same Kenyan sugar producer for another boiler at a second mill also in Kenya where we are looking at the boiler circulation characteristics again to investigate if a loaf increase is possible.

Other sugar mill work a little closer to home included Mulgrave Mill at Gordonvale just south of Cairns where we redesigned a front wall downcomer to sort out an on-going problem with drum water level measurement and control.

We are also working with the Inkerman Mill near Home Hill / Ayr on the condition of their existing boiler drums which are showing their age a bit. This is ongoing and proving to be quite an involved project that is stretching us a bit and has required the help of an outside firm specialising in Finite Element Analysis.

Inkerman Drum Stress Analysis

Incitec Pivot

Josh Scott is currently working with Incitec Pivot at Gibson Island in Brisbane to develop work packs for their upcoming outage in 2016. Josh is currently based at Gibson island full time and we’re not sure when we will see him back in our offices.

Breaker Electrical

Breaker General

1. Technology Advancement

Breaker have invested in new testing equipment including thermal imaging technology and Motor Testing and Analysis Equipment. This will allow Breaker to provide predictive non-invasive inspection of electrical motors and switchboards.

Thermal Imaging Camera PdMA Motor Testing Equipment

Southern Region

1. B1 Electrical Work

Shane Kettle’s electrical team successfully completed the electrical work at B1 Callide for CS energy. Our project scope included HV motor testing, transformer maintenance, HV motor testing as well as various other electrical inspection activities.

Well done and congratulation’s to Shane and his Team.

2. HVB Replacement Tarong

Breaker has been working with MHPS (Aust) on small projects such as the HVB replacement at Tarong.

Breaker has also been active in completing other small projects for example the emergency ash handling system at Tarong and vibration monitoring at Wivenhoe Power.

Our electrical supervisor Chis Devlin and his team have completed various small projects including the refurbishment of an industrial warehouse for BOC gases in West Brisbane. Chris has also been assisting in maintenance activities at Wacol for the Plant and Equipment division.

Northern Region

1. Maintenance Minor Projects

Times have been tough in the area now for some time, with fewer projects available and increased pressure on rates. We are however experiencing somewhat of a mini renaissance in general maintenance at present. This is of course partly to changes in available financing/budgets for onsite Planners, but also because of the quality of teams and their work being done across the region.

There are budgets to support a shift in dynamic towards smaller, sharper, shutdowns (performed at opportune times) rather than the larger planned shuts of the recent past and also towards minor rather than large projects and this should continue for some time yet. Good working client relationships with Peabody Energy at Moorvale and Coppabella mines, Giles Marine Contractors, John Palmer Electrical Engineering and North Qld Bulk Ports have kept the work ticking over and this has enabled us to maintain a workforce of 6/7 this year.

In the Gladstone area we are hopeful of getting some Breaker shirts into Yarwun and QAL and interviews have been taking place to identify suitable candidates and get them on board. Mick Lee has been doing some smaller projects for Southern Oil and Qld Energy resources as well as supplementing Callide as required.

2. General Projects

Damon Ross and his team made some excellent progress on the Moorvale 11kv Feeder Cable project and it is nearing “tie in” stage and final commissioning. Although we are now waiting on final figures to come through it appears to be on budget and certainly met the required time schedule. Well done to Damon and his crew. Meanwhile Gary Farquhar has successfully estimated and Supervised the completion the Quarantine Waste Disposal Station upgrade, commenced Berth 5 Capstan winch replacements at Mackay harbour and recently installed several LCS ‘s at Moorvale CHPP (Coal Handling Preparation Plant) with his team as well. Great results all-round!

3. Pipeline

We are currently waiting on results of our tender to complete three water pumping stations and seven telemetry Towers in the Belyando Crossing area. Estimates for NQBP are also being worked on for a variety of upgrade work at the Hay Point tug harbour. Although the fuel farm project is now completed, mini shutdowns and scheduled maintenance are also continuing at Moorvale.

4. General

Thankyou’s to Equipment Control for getting our Tool and Gear container organized to HR, Finance, IT and Procurement for their support onsite here in Mackay. To my team in Mackay, thanks for your help in getting the business off the ground.

L to R. Lachlan Watkins, Jed Bergin, Joel Faltinsky, Joe Bannan and Damon Ross

Autoclave at Quarantine Waste Treatment Station Hay Point Mackay

Business Services

Human Resources

It has been a busy year for the HR and Payroll team, with a few projects being developed and rolled out throughout the year.

Collaboratively with our Operations management team and input from all other departments we’ve developed the Supervisor Development Programme. This has been developed to clearly define roles and responsibilities, career progression pathways and training & development requirements for Leading Hands through to the Area Managers.

The framework consists of several documents including a role competency matrix, skills gap analysis, log books, course directory and development programme guides. Management have started to roll this out, conducting the skill gap analysis with individuals. We have a pilot programme being conducted for the internal training in September which will then be rolled out in the coming months.

Kim Henwood and Raj Thennavan have been managing the workforce planning which has taken place from January this year. They have further developed Saviom and documented in detail the proposed processes for on-boarding through to mob and de-mob. We also have an Expression of Interest (EOI) available on our website, which is where we now direct anyone interested in working with us.

We have recently signed contracts with Frontier Chris21 and Kronos and are starting the implementation of these systems with Chris Donovan being the Project Manager. Chris21 is a payroll and Human Resource Information System (HRIS) which will improve not only our payroll capabilities but also our HR resources. The key focus right now is to implement Chris21 for payroll, however following on from this we will introduce an e-recruit module and employee and manager self-service, (offering a range of services and access to various information). Kronos forms the Time and Attendance system (replacing our timesheet and labour databases). With Kronos will come biometric time clocks, automated timesheets, Award Interpretation and rostering (replacing Saviom).

In accordance with the requirements of the Workplace Gender Equality Act 2012 (Act), on 29th May 2015, MHPS Plant Services lodged its annual public report with the Workplace Gender Equality Agency (Agency).

A copy of this report is available on our intranet. As employees of this organisation you may make comments on the report to us by emailing hrdept@anz.mhps.com or directly to the Agency. Please refer to the Agency’s guidelines on this process on their website www.wgea.gov.au

Safety

Since the start of 2015 our Health and Safety performance across MHPS Plant Services has shown some exceptional results. These results have been demonstrated by a reduction in our recordable injury rate by almost half. During the course of the year some significant changes to our health and safety processes have occurred, some vastly different to the norm, but fortunately everyone has adapted and the results are showing.

Our Health and Safety committees have been established in the Northern, Southern and Breaker departments, with the committees providing valuable input into changes and improvements to our HSE processes and procedures. If you have an item you would like discussed at one of the committees please talk to a HSE Advisor or Supervisor who can make sure your item is raised.

More recently we have rolled out a reward and recognition program – so if you know of a co-worker or team that is doing an exceptional job and deserves recognition for their efforts, ask your supervisor for a nomination form to recognise their great work.

Information Technology

The IT Team has undergone a few changes since the last Employee Update, most significantly becoming a distinct department under the Business Services division.

Sharon Gordon has taken over the responsibility of the IT Department in the role of Manager, IT with Blair Alexander moving on to manage the newly formed Quality and Risk Department. During his tenure as Systems Manager, Blair has overseen and implemented major advancements and improvements in all aspects of the IT Department and fostered a strong work ethic and culture within the IT Team. His contribution to the department has been invaluable. Despite moving on, Blair will still remain a significant influence in all IT strategies as part of his new role with Quality and Risk.

Edward McDonald continues his role within the team as our Senior Systems Engineer. Ed is currently working on major infrastructure upgrades to our Servers, Storage and Network as well as improving our File Management strategies across the company.

Craig Law and Mark Dickson head up our Support Services Desk and have spent quite a bit of time over the last few weeks visiting our remote users and sites. Special thanks to the Gladstone, Callide and Mackay teams for showing them around during their travels. As the newest members of the IT Team, Craig and Mark have rapidly adapted to the many challenges faced by our users as well as the setup and conditions of our remote sites.

Mobile Phone Recycling

Here at the MHPS Plant Services IT Department, we recycle all our Mobile Phones and Smart Devices no longer deemed fit for purpose for our workforce.

Across Australia, approximately 20 million mobile phones sit unused in drawers or cupboards. Most of these devices end up in landfill where they can become a real threat to the environment. Keep these devices out of landfill by using one of a number of organisations that provide Mobile Recycling Services:

Mobile Muster

Clean Up Australia

Foundations for National Parks and Wildlife

Choosing to recycle your unused mobile devices, batteries and accessories ensure that they are kept out of landfill (and your cupboards) and are handled in a safe secure and ethical way.

Quality & Risk

As the newest department to MHPS Plant Services, Quality & Risk have a colossal workload over the next 12 months to achieve our desired outcomes. In a year where both the Quality Management international standard and ASME Boiler Code have been revised we expect that many of our procedures will be required to be revised and strengthened to show we have a quality system to be proud of. Other than supporting operations during outages and other projects work we will also be developing a fully integrated Welding Quality System and Risk Management System that stand-up to the international systems to ensure the company operates as the best in the business. Another of the major tasks we are undertaking this year is the redesign and programming of our proprietary WeldSys programme which is used by the Operations team for the recording and traceability of our project welding, control of our welding procedures and welding qualifications, and control of our Welder Performance Qualifications. For those who do not know WeldSys, this programme sets us apart from our competitors by automating the control of our welding quality system to ensure we are always compliant to the standards.

Upcoming Events

Labour Day Public Holiday 5th October 2015

Gladstone Office Christmas Shutdown 18th December 2015

Brisbane Office Christmas Shutdown 22nd December 2015

Brisbane / Gladstone Office Re-open 11th January 2016