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CONTENTS

Acknowledgements

About GMUSG and Strategic Direction

Board and Management

Chairman’s Report

Manager’s Report

Priorities for Action 2015-16

Operating Budget 2015-16

New Members 2014-15

Audited Financial Statements 2014-15

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ACKNOWLEDGEMENTS

We are pleased to present the Global Maintenance USG Inc. 2014-15 Annual Report to members; funding partners; sponsors; and stakeholders.

We wish to acknowledge significant funding and ongoing support from the South Australian Department of State Development (DSD) and the

Upper Spencer Gulf Common Purpose Group Inc.

We also acknowledge our GMUSG & SACOME Conference and Trade Expo sponsors. 2015 Conference Sponsors are listed below: -

Platinum Sponsor Silver Sponsors Bronze & Supporter Sponsors Junior Sponsors

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ABOUT GMUSG

GMUSG is a not-for-profit association incorporated under the South

Australian Associations Incorporation Act, with members primarily

resource sector suppliers and service providers. Members are

typically based within, or associated with, the Upper Spencer Gulf

region of South Australia.

GMUSG originated in 2002 as an initiative of local contractors with

support from the Upper Spencer Gulf Common Purpose Group and

the South Australian Government. GMUSG developed as one of the

State’s first Industry Clusters. Clusters are typically a group of

independent enterprises working collaboratively within a common

industry sector and geographic area with an aim to improve

productivity, foster innovation and increase local business

participation.

GMUSG draws on collective resources, market intelligence and

expertise to improve member capabilities; market linkages; and

ultimately business opportunities. GMUSG is now established as an

important part of the Upper Spencer Gulf economic development

framework and will continue to play its part to enhance the

prosperity and sustainability of Upper Spencer Gulf communities.

STRATEGIC DIRECTION

OUR VISION

Global Maintenance USG suppliers are innovative; interconnected;

competitive; and valued by major customers. Global Maintenance

USG is recognised as an effective enabler to maximise local

business participation.

OUR MISSION

In partnership with our Members; our Customers; and Stakeholders;

we will maximise local participation within Resources, Energy and

Manufacturing supply-chains

OBJECTIVES

1. Develop organisational collaboration 2. Establish a positive reputation for GMUSG suppliers 3. Develop member capability 4. Increase member awareness of market trends and

opportunities 5. Increase member participation in major projects and ongoing

maintenance and supply markets

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BOARD AND MANAGEMENT

Greg Clothier – Chairman

Managing Director Clothier Consulting

Rob Gibb Director

GIBBRAC Pty Ltd

Ed Milne

Managing Director FTE Solutions

Steve Arndt

Principal Regional Community and Indigenous Affairs – Uranium BHP Billiton

Andrew Hiscock

Operations Manager Ottoway Fabrication

Darren Lamb

Operations Manager Toll Mining Services

David McPherson

Compliance Officer Asset Management Nystar Port Pirie Pty Ltd

Alexander O’Shea Project Engineer

S J Cheesman

Troy Grover

Economic Development Manager & Deputy Chief Executive Officer

Regional Development Australia Far North

Michael Edwards

Commercial Manager Max Crane & Equipment Hire (SA) Pty Ltd

Mark Malcolm

Manager Global Maintenance USG

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CHAIRMANS REPORT

It is with pleasure that I present the Global Maintenance Upper

Spencer Gulf Inc. (GMUSG) Annual Report for 2014-2015.

Our sector is certainly experiencing tough conditions. As an industry

we are unable to control global commodity prices, but we have spent

the last 12 months controlling costs, resulting in a reported 5%

average industry wide reduction in operational costs. There has been

a significant reduction in projects with many being placed in

caretaker mode or being mothballed as boards and management

seek to contain risk, protect balance sheets and respect the interests

of shareholders.

Whilst these are reasonable considerations I wonder as the wheel

turns and resource activity returns, where will we find the expertise to

support the next growth cycle? Expertise to repair that pump, to weld

that steel together, to assemble that switchboard, to program that

PLC, or to calibrate that instrument? Whilst no one has a crystal ball

we are all aware that growth will return and we must be ready.

Like our members, GMUSG will look outside resources and energy

markets to explore business opportunities. Defence and Infrastructure

are clearly market segments where member firms have the

necessary capability.

The GMUSG Board is also looking to the longer term by encouraging

Upper Spencer Gulf and Outback leaders to pursue an action agenda

on expanding our role in the Nuclear Fuel Cycle. It would come as no

surprise that we included presentations on defence, infrastructure

and the nuclear industry at our 2015 Conference.

Defence and Infrastructure market outlook presentations were included in the 2015 conference program.

Over the past 12 months GMUSG has participated, arranged,

communicated and conducted: -

• Bid Teams • Member services and communications • Stakeholder & government engagement • Building our capability database • Resource industry supply-chain panels • Member forums and our annual conference

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On behalf of the Board and GMUSG members I acknowledge the

continued support we receive from the South Australian Department

of State Development and Upper Spencer Gulf Common Purpose

Group. Their funding support is long standing and important but so

too is their day-to-day assistance and collaboration.

We are pleased to announce that State Government has extended

funding support for GMUSG with the signing of a two year extension.

And for the first time the Department of State Development has

provided once-off project funding for GMUSG to undertake: -

• Indigenous business participation initiative • Major customer and tier one tour of the Upper Spence Gulf • Member survey gathering critical information about our sector

GMUSG has also partnered with Adelaide University to map cluster

linkages and GMUSG member capabilities. A resulting document will

provide a comprehensive capability statement.

We look forward to the year ahead knowing the role of GMUSG to

represent and deliver tangible value to its members and funding

partners. Our role is more than ever relevant given the challenges

confronting our industry.

In closing I would like to take this opportunity to thank fellow Board

members who volunteer their time and skills on behalf of our

membership, and Mark Malcolm for his continued service as GMUSG

Manager.

Greg Clothier

CHAIRMAN

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MANAGER’S REPORT

The following provides an overview of our operations for 2014-15

and also incorporates activities up to and including our Conference

and Trade Expo held at Port Augusta on 26 - 27 August 2015

Administration and Finance

The Port Augusta office of RDA Far North continues to provide

accounting and administration services in support of GMUSG.

Bronwyn Fuller, Office Manager and Shari Dodd, Administration

Officer, perform these tasks on our behalf and provided excellent

support over the past 12 months.

GMUSG remains in a sound financial position with cash reserves of

$97,020. We recorded a $65,708 surplus this year but it should be

noted this is largely due to receipt of a once-off grant of $60,000 from

the Department of State Development. These funds will be spent

during 2015-16.

Receivables at June 2015 were abnormally high at $182,674 due

mainly to DSD funding ($120,000) invoiced late June. Cash receipts

since June has resulted in Receivables reducing to near normal

levels.

Our Budget for 2015-16 (see later Section) indicates a forecast deficit

of ($63,559). The forecast deficit reflects expenditures associated

with the $60,000 once-off projects grant received this year.

I am pleased to report that we successfully negotiated a new 2-Year

$60,000 annual support grant from the Department of State

Development. This long standing support from the Department has

been crucial to the viability of GMUSG and we are pleased that this

support will continue. In addition to the new 2-Year Funding

Agreement, the Department (DSD) has provided an additional once-

off $60,000 Grant to deliver 3 new initiatives through 2015-16. These

initiatives are described in later Sections. The level of support from

State Government is significant and long standing.

Membership

We welcomed 12 new members during 2014-15 with an additional 5

new members joining since June 30. Total membership remains at

around 110 albeit we expect this number to decline slightly in the

short term due to market conditions in our sector and resignations

from primarily Adelaide based firms. Once again support remains

strong within the Upper Spencer Gulf and regions.

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Member Forums and Events

2015 - 11th GMUSG & SACOME Conference and Trade Expo

A near record 380 attended the 2015 conference and Trade Expo,

reinforcing this event as South Australia’s most important gathering

of resources and energy contractors and suppliers.

The event returned to Port Augusta for the first time since 2010 with

the newly opened Central Oval Sporting and Community Hub

accommodating a record 62 exhibitors including 59 booths under

one roof.

Alan Fiebig Best Exhibitor Award Winner - Visible Temporary Fencing

We were pleased to offer a high quality program of speakers and

panel sessions. Highlights for 2015 included: -

Hon Ian Macfarlane MP, Minister for Industry and Science

BHP Billiton vision for Olympic Dam mine highlighting a focus on

operational improvement, underground expansion and

development of their heap leach pilot plant

Nuclear Fuel Cycle expansion opportunities in South Australia

Project updates from WPG Resources, Sundrop Farms and Petro

Diamond Australia

BP Australia, Chevron, Santos and Murphy Australia Oil outlined

offshore oil & gas exploration plans for the Great Australian Bight

Defence and Infrastructure market briefs delivered by the

Defence Teaming Centre and Civil Contractors Federation SA.

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Our partnership with the South Australian Chamber of Mines and

Energy (SACOME) as conference co-convenor was beneficial once

more. SACOME’s role as South Australia’s peak body for mining and

energy producers adds significant status to the event.

The annual conference and trade expo cannot happen without

significant support. We acknowledge the following for their

assistance towards planning and event management: -

Bronwyn Fuller – RDA Far North Penny Archer - Virtual Assistance Craig Dearlove – Port Augusta Council Jodie Boully – Business Port Augusta

The 2016 and 12th GMUSG & SACOME Conference and Trade Expo

will return to Port Pirie 17th – 18th August 2016.

Jason Kuchel SACOME and Greg Clothier GMUSG. Co-Convenors 2015 GMUSG & SACOME Conference and Trade Expo

2014 AGM and Customer Briefing

Raymond Bentley-Comins, guest speaker at the 2014 AGM, spoke

about his experiences as a shutdown and construction project

manager; offered advice for contractors; and ideas for alliance

bidding on major maintenance shutdowns.

GMUSG and CCF SA Joint Member Forum

35 GMUSG and CCF members attended a networking event at CCF

offices on 20th November 2014. The event included a presentation

on industrial relations practices. Attendees tested CCF’s array of

plant simulators and enjoyed valuable networking opportunities.

GMUSG and Water Alliance Joint Member Forum

37 GMUSG and Water Alliance members gathered at the Adelaide

offices of SA Water on 17th March 2015 to network and hear about

advances in Cooper Basin water resource management.

LMA Bettcher - Regional “Preparing for Leadership” Front Line

Management Training

GMUSG supported a program of front line management training

delivered by LMA Bettcher during 2014-15. 4 of 8 participants

graduating on 5th March 2015 were GMUSG members.

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Programs and Member Support

Helping members access support to develop capability, capacity

and market readiness is an effective way to support member

interests and business sustainability. While GMUSG has limited

capacity to undertake initiatives alone, we work with others to

ensure GMUSG members can access services and advice. A

summary of our activities is listed below.

SA Resources Supply-Chain Panels

Together with the Federal Department of Industry – AusIndustry we

offer suppliers an opportunity to meet with a Panel of resources and

energy procurement experts to gain feedback on their company

pitch and marketing approach.

Our Supply-Chain Panel Sessions, held quarterly, accommodate up

to 4 suppliers each session. Each participant meets with the Panel

for 30 minutes including delivery of their 5 minute-pitch. Each

participant gains 25 minutes feedback from panel members and a

detailed report and recommendations.

13 GMUSG members and non-member firms participated this year

with further Panel Sessions planned for December 2015 and

throughout 2016.

We sincerely thank the following Panel members for their

commitment and sound advice.

SA Resources Supply Chain Panel Members

Valdis Evele Evele Consulting Services – Principal

Alexander Kachellek Korvest – Managing Director and SA President, Austmine

Mark Rosser Santos - Manager East Coast Procurement

Simon Telford Colindale Group - Procurement Specialist

Jonathan Nitschke Nitschke Group Pty Ltd – Managing Director

Paul Goiak Department of State Development - Director Industry Participation

Ken Cowen Department of State Development – Pace Manufacturing

Sharron Bird OZ Minerals Prominent Hill Operations, Contracts Superintendent

Bryan Scruby Parsons Brinckerhoff - Head of Department, Procurement

Brenton Emery Santos, Team leader, Eastern Australia Procurement

David Field Santos - Team Leader Procurement, Eastern Australia

Richard Peasgood Beach Energy Ltd - Contracts Manager

Mark Osborne (co-convenor)

Department of Industry – AusIndustry, Business Adviser

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ICN SA Gateway Registration – a review of ICN SA’s online supplier

registration confirmed that more than 90% of GMUSG suppliers are

registered with ICN SA and of those, 88% updated their registration

details within 12 months. We will continue to work with ICN SA to

ensure members remain registered and maintain effective profiles

on ICN’s Gateway.

Communications

Email Alerts and Newsletters – 39 email alerts and newsletters

were used to communicate with members during the year. This will

continue during 2015-16.

Customer and Stakeholder Engagement

Customers and Projects – Engaging with major customers and

prime contractors helps promote GMUSG and member capability.

Examples over the previous 12 months include: -

Sundrop Farms, greenhouse project Port Augusta

Port Bonython Fuels, project Whyalla

Cultana Defence Training Facility Expansion

BP GAB Offshore Exploration – Bristow Helicopters Aviation Base

WPG Tunkillia and Tarcoola Gold Projects

CERES Wind Farm – Yorke Peninsula

Nyrstar, Maintenance Shutdown alliance tender

State Government – GMUSG receives significant support from the

South Australian Department of State Development (DSD) via an

annual grant of $60,000 and ongoing support from the Industry

Participation Office, ICN SA and other divisions within the

Department. GMUSG participates in a range of DSD initiatives on

behalf of members including the Roundtable for Oil Gas and Mining

Industry Participation Office Advisory Council. We also promote the

various programs offered through MIPO and ICN SA.

Federal Government – We continue to work with the federal

Department of Industry – AusIndustry. We jointly convene SA

Resources Supply-Chain Panel sessions and refer members to

Business Adviser facilitated RISCI and Business Review programs.

The department and staff are also significant and consistent

supporters of our annual Conference and Trade Expo.

Regional Development Australia – 3 Regional Development

Australia Boards operate in the Upper Spencer Gulf and surrounding

regions. RDAs have a broad role aimed at facilitating economic

growth in regions and are supported by the three tiers of

Government. We continue to work with the 3 RDAs, share

information and co-host business forums. We also acknowledge

their assistance in planning and delivering our annual conference

and trade expo.

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Upper Spencer Gulf Common Purpose Group (CPG) – The CPG is

an association of the three Upper Spencer Gulf city councils and

RDAs. It should be noted that GMUSG began as an industry cluster

initiative with CPG support until we incorporated and operated

independently around 2004. The CPG continues to support GMUSG

by contributing $10,000 per year to support our work. Our Mayors

are enthusiastic participants at our conferences and provide

significant in-kind support for the event.

New Initiatives 2016

We will deliver 3 new initiatives over the next 12 months as result of

a $60,000 once-off grant from the Department of State Development.

We will: -

1. Major Customer Tour of Upper Spencer Gulf

We will host a 2-3 day Upper Spencer Gulf tour for targeted tier 1

contractors, engineering consultants and procurement

executives. The aim of the tour is to ensure important customers

are familiar with USG member capability. The tour will involve

site visits and networking opportunities in each city

2. Indigenous Business Development

We will be working with our indigenous business members and

others to increase commercial engagement between major

customers and indigenous owned businesses. We want to

match local indigenous business capability with emerging

purchaser intent among major customers.

3. Member Survey

We will conduct a survey of all GMUSG members early 2016 to

improve our understanding of member expectations. We will

also use this opportunity to collect data that will help us measure

the economic health of our sector.

Nyrstar Transformation - early works

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Concluding Remarks

In closing I want to thank our Chairman, Greg Clothier, and GMUSG

Board members for their support and direction through the year.

Board members contribute significant time as volunteers and

undertake executive tasks where necessary to ensure GMUSG can

deliver value to its members.

Once again I thank RDA Far North and particularly Shari Dodd and

Bronwyn Fuller for their valuable administration support through the

year.

GMUSG has developed a sustainable business model underpinned

by a strong member base; profitable annual conference; and

ongoing funding support from State Government. I look forward to

assisting the Board deliver value to members next year.

Mark Malcolm

Manager

PRIORITIES FOR ACTION 2015-16

The following summarises our program for the year ahead: -

Host the 12th GMUSG & SACOME Conference and Trade Expo in Port Pirie 17-18 August 2016

Host 4 Member events in the USG and Adelaide

Co-convene 4 SA Resources Supply-Chain Panels

Deliver 3 SA Government funded initiatives: -

o Upper Spencer Gulf Major Customer Tour

o Indigenous Business Development Program

o Member Survey

Distribute information via regular email alerts and Newsletters

Ensure members are registered and current on ICN SA Gateway

Link members to pre-qualification opportunities

Maintain and update the GMUSG Capability Directory

Broker member access to capability improvement services

Represent GMUSG and member interests among major customers, industry, government and media.

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OPERATING BUDGET 2015-16

BUDGET

Income 2015 - 2016

Misc Income 100

Interest 3,000

DSD Funding (1st of 2-Years) 60,000

Membership 33,000

Conference Income 140,000

Total Income 236,100

Expenses

Printing & Stationery 1,000

Bank Fees & Charges 1,200

Advertising 3,300

Insurance 2,890

Legal, Accounting & Audit 1,300

Management Services 105,862

Administration Services 12,207

Fuel 3,400

Consultant Expenses 500

Miscellaneous Expense 1,000

Travel, Meals & Accommodation 1,900

Workshops, Forums attendance 3,750

Forums/Meeting Expense 2,000

Website & Internet Expenses 10,850

Conference Expenses 100,500

Projects Costs 48,000

Total Expenses 299,659

Net Surplus/Deficit -63,559

NEW MEMBERS 2014-15

Land Access Management Services Pty Ltd RAM Equipment Pty Ltd Carey SA Pty Ltd Narungga Mining and Logistics Company RIS Safety Loadex Hire SA Pty ltd Biz Hub Australia Pty Ltd Tooling and General Heat Treatment Leske Transport Pty Ltd Electrical and Powerline Services Pty Ltd Scaled Management Systems AMY Nominees Pty Ltd New members year to date (July - October 2015) Mechvac Engineering Pty Ltd EP Analysis Pty Ltd Access Training Centre Pty Ltd Lee Quality Solutions Pty Ltd Flinders Crest Services Pty Ltd Maratime Constructions Pty Ltd

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