TA L K I NG
BIZ WI T H
TENNIS AUSTRALIA
w w w.businessreviewaustralia.com
VIADUX
CIVMEC
ECHO GROUP
AND MORE...
September 2017
TOP10
Young Australian business leaders INSIGHT
Z T E S U P P LY I N G T H E
BOOM SMARTPHONE
Exclusive interview with ZTE Australia MD Daniel Zhao
IN PARTNERSHIP WITH
11 – 12 OCTOBER 2017
MELBOURNE CONVENTION & EXHIBITION CENTRE
Australia’s most comprehensive
CLEAN AND RENEWABLE ENERGY EVENT
FREE-TO-ATTEND EXPO & CONFERENCE 4,617
AT TENDEES AT L AST EVENT
*
120+
INDUSTRY SPEAKERS
Register now at
6X
100+
CONFERENCE STREAMS
E XHIBITORS
Co-located with
Organised by
ALL-ENERGY.COM.AU *CAB Audited by AMAA
FOREWORD WELCOME TO SEPTEMBER’S Business Review Australia. This month we feature a host of topics and companies, from smartphones and boardroom diversity to large utilities projects and young entrepreneurs. More and more young entrepreneurs are making their way in the country, and our top 10 looks at some of the most promising businesspeople making waves in their industry. One such industry is technology, and Australia’s smartphone market is nearing saturation, or peak smartphone as ZTE Australia’s MD Daniel Zhao states. In our lead feature, we discuss ZTE’s plans to further penetrate the market with its own phones, and how this sits with its core business of supplying to the big smartphone players.
businessreviewaustralia.com
Also featured is Grant Thornton Australia’s Diversity Leader Nicole Bradley, who asks ‘when will gender diversity at leadership levels be ‘the norm’ instead of the ‘strived for’?’ Bradley identifies three key issues that need to be addressed in order to make genuine progress. Other exclusive insights this month come from energy specialists Civmec and First Solar, while all things construction are discussed with water infrastructure firm Viadux. We also look into the world of sport with an exclusive interview with Tennis Australia’s Craig Tiley, in charge of raising the profile of tennis in the country and making sure the Australian Open remains among the most popular slam on the calendar. Enjoy the read!
bizclikmedia.com 3
CONTENTS
F E AT U R E S
36 Tennis Australia
INSIGHT
06 Closing the gap TECHNOLOGY
14
52 Viadux
Supplying the smartphone boom TOP 10 LIST
22 00
Headline for the article
Top 10 young Australian business leaders
74 Civmec
C O M PA N Y PROFILES PUBLIC SECTOR 36 Tennis Australia
CONSTRUCTION 52 Viadux 64 Echo Group
ENERGY
64
74 Civmec
Echo Group
96 SKYE - Crown Group
HOSPITALITY Holdings Pty Limited
FOOD & BEVERAGE 106 Allergen Bureau Association
106
Allergen Bureau Association
96
SKYE - Crown Group Holdings Pty Limited
INSIGHT
CLOSING THE GAP W r i t t e n b y : N I C O L E B R A D L E Y, DIVERSIT Y LEADER, GRANT THORNTON AUSTR ALIA
CLOSING THE GAP
Nicole Bradley, Diversity Leader, Grant Thornton Australia, asks: When will gender diversity at leadership levels be ‘the norm’ instead of the ‘strived for’? WE KNOW THERE is a genuine desire for corporate Australia to close the gap when it comes to gender diversity. Our study shows the number of organisations with no women in senior leadership roles is actually decreasing in Australia. While this is great to see and clearly the business case for gender diversity is well recognised; progress is still too slow. Government, businesses and individuals need to be more diligent in addressing the systemic issues that hinder progress. These systemic issues are as prevalent today as they were decades ago when gender diversity increasingly featured on the corporate agenda. Our study found when it comes to women holding senior leadership roles, Australia sits at 23 percent, behind the global average of 25 percent. The largest gap found in Australia was right at the top, CEOs. At just three percent, following five years of decline, Australia has slipped well below the global average of 12 percent
when it comes to female CEOs. A decline in gender diversity at leadership levels is an alarming fact for corporate Australia. Diversity is key in managing business risk, closing the gap has never been more important against a backdrop of global economic and political uncertainty as well as most industries facing significant disruption. Businesses are leading in an environment of volatility, uncertainty, complexity and ambiguity. The only thing that is certain is uncertainty and business models need to change. When it comes to perceptions of risks and how to deal with them, men and women view things through different lenses. Using diversity to make better decisions at a senior level will help business when it comes to navigating in unchartered waters. Teams without diversity are at a much greater risk of going down a path without considering all the options or coming up with better answers to complex problems. 7
INSIGHT
Be bold for change – making gender diversity ‘the norm’ While most acknowledge the business case for gender diversity, clearly corporate Australia is grappling with why it’s still an issue and can’t seem to smash the glass ceiling. So what are the issues to address that will create the biggest impact on accelerating gender equality in leadership roles across corporate Australia? 8
September 2017
1 – Let’s address the talent pipe line Gender equality is about access to the same rewards, resources and opportunities regardless of gender. We tackle the issue by first addressing the talent pipeline. We do this by ensuring women are exposed to a broad base of experience across the organisation including operational experience. ANZ has specifically designed a program to equip future female leaders with
CLOSING THE GAP
the right experience to progress to the top. It’s Accelerated Banking Experiences for Women program provides talented women with a generalist banking career and developed pathway to leadership positions. When addressing the pipe line, organisations and individuals need to own up to existing unconscious bias. Recognise it and remove unconscious bias out of hiring and advancement decisions. BHP Billiton established an Inclusion and Diversity Council which sought to identify and mitigate bias in behaviours, systems, policies and
processes as one of its key priorities. Simply put barriers to advancement and unconscious bias need to be addressed. 2 - Tackling workforce participation This comes down to creating an organisational culture accepting of both men and women sharing parenting responsibilities. Everything from flexible roles to both genders taking up primary carer parental leave. Our firm set a new industry standard for paid parental leave last year; offering 26 weeks paid leave to primary carers. Accessible to both men and women within 9
INSIGHT our organisation; it seeks to encourage workforce participation and allow our people to achieve their personal and career goals. To further encourage flexibility, all the roles within our organisation are flexible, leaving our people to develop working arrangements that suit the needs of the individual, our clients, their team and our firm, while allowing them to balance work and personal commitments. BHP Billiton’s Inclusion and Diversity Council also sought to support an inclusive work environment by embedding flexibility in the way the company works. It also sought to change its charter to include the words “We are successful when our teams are inclusive and diverse.” 3 - Government’s place in the gender agenda When it comes to examples of Government good practice for
10
September 2017
progressive gender equality initiatives, Norway sets the standard. Its Government implemented mandatory parental leave and quotas for boards. This alone saw amazing results almost immediately. Our survey shows the countries with the highest proportion of senior roles held by women were Russia (47%), Indonesia (46%), Estonia (40%), Poland (40%) and Philippines (40%). Some of the great initiatives implemented by Governments in these countries include government supported maternity leave, government quotas on female participation in electoral districts, equal education requirements for boys and girls, and regulation around equality of pay. Closer to home, we really need to see Government support delivering solutions to childcare accessibility and affordability and efficient tax benefits to parents. And looking how we can use quotas in boards and parliamentary representation to accelerate change. It’s great to see our Government implementing initiatives to encourage female participation in STEM subjects
CLOSING THE GAP
‘Our study found when it comes to WOMEN
HOLDING SENIOR LEADERSHIP roles, Australia sits at 23 percent, behind the global average of 25 percent’
11
INSIGHT
12
September 2017
CLOSING THE GAP
and need to ensure these types of programs continue in the future. 4 - Work collectively to make it happen - be bold and take action Both globally and across corporate Australia there are great examples of initiatives that appear to be having some impact, but more can be done collectively to start moving the top line figure for women in
senior leadership positions. It really comes down to Government and businesses being more bold and taking action because it’s an issue that’s been relevant, debated and supported for years with little change. We need to work together to be bolder and accelerate change. If we don’t, the World Economic Forum predicts that we won’t actually reach gender equality until 2186.
For more information about the ANZ and BHP Billiton case studies referenced in the article, download a copy of a joint report from CEW and Bain & Company, ADVANCING WOMEN IN AUSTRALIA: ELIMINATING BIAS IN FEEDBACK AND PROMOTIONS For further information about our survey, download a copy of the latest Grant Thornton report, Women in Business 2017: New perspectives on risk and reward.
13
TECHNOLOGY
SUPPLYING
THE SMARTPHONE
BOOM ZTE Australia MD Daniel Zhao talks to Business Review Australia about his priorities for the year ahead and how he is keeping a close eye on key market trends. Wr i t t e n by : TO M WA D LOW
TECHNOLOGY
AUSTRALIA IS ON the verge of ‘peak smartphone’. Last year saw penetration rates reach 84 percent, with Deloitte estimating that Australian consumers interact with their smartphones 480 million times a day, up by around 10 percent on 2016. Though Deloitte believes the market will plateau somewhat, it still expects the replacement side of the equation 16
September 2017
to perform well. If the 16 million smartphone users upgrade on average every three years, we can expect around five million in replacement sales annually. Deloitte thus concludes that the smartphone will remain attractive for the foreseeable future. Riding, and to an extend driving this wave is ZTE. The global phone manufacturer, which has produced smartphones for the likes of Vodafone,
S U P P LY I N G T H E S M A R T P H O N E B O O M
“One of the big things for the smartphone and telecommunications market in Australia is the 5G network” – Daniel Zhao, ZTE Australia MD
Telstra and Optus in Australia since 2004, has spearheaded some of the country’s most notable development in this field. Enter Daniel Zhao, Managing Director of ZTE Australia since May 2016. An experienced telecoms industry player with 13 years under his belt, Zhao is all too aware of the impressive work that he is tasked with continuing.
“Since coming to Australia, we’ve brought over 100 models to the market and sold more than 12 million devices,” he points out. “Over the years, ZTE Australia has been instrumental to the introduction of various key telecommunication devices for the Australian market.” Such milestones include the first Telstra branded clam shell handset, 17
TECHNOLOGY
the first device that was launched on Telstra’s NextG network; Telstra’s first country phone, which provides superior signal performance in Australian regional and rural areas; Telstra’s first waterproof and dust resistance ruggedised device; and Telstra’s first phone designed specifically for seniors. Best of both? “Whilst we have long-term partnerships with the leading mobile network providers, we have also started to bring our complete range of affordable smartphone products to consumers via our retail partners,” Zhao continues. “We’ve recently unveiled our flagship smartphones, the AXON 7 and AXON 7 Mini which
18
September 2017
are available exclusively at JB Hi-Fi.” Indeed, ZTE has teamed up with some heavyweight industry players to deliver to AXON 7. This includes collaboration with Designworks, a subsidiary of BMW which helped inspired the phone’s sleek design. Dolby is also a key partner, this time on the audio front. Zhao also emphasises the biometric set-up. “Another unique feature is the location of our fingerprint sensor,” he says. “Rather than resting solely on the front, we’ve placed it on the back where your finger naturally rests. This provides not only more space for a larger screen and speakers on the front, but also results in a more aesthetically pleasing handset.” This begs the questions as to how
S U P P LY I N G T H E S M A R T P H O N E B O O M
ZTE balances its interests regarding its own phones versus those it makes for the likes of Vodafone, Telstra and Optus. Is there a conflict of interest? For Zhao, it is simply another exciting revenue stream and means to delivering its Australian ambitions. “Our brand has built its reputation on manufacturing devices for telecommunication providers, including Telstra, Optus and Vodafone,” he explains. “As such, we’ve had long-term, successful partnerships and continue to do so. We remain committed to working with our valued
partners to manufacture devices primarily for the pre-paid market, while also introducing a wide range of our own branded handsets to meet the consumer demand. “Ultimately, our overarching goal is to provide affordable high-quality handsets to the Australian market. By continuing our partnerships and rolling out our own branded devices, we’re able to accomplish this in many ways.” Looking ahead So what does Zhao see in the coming years for ZTE and the Australian smartphone market? While
19
TECHNOLOGY
Research and development centre in Chongqing, China
20
September 2017
S U P P LY I N G T H E S M A R T P H O N E B O O M
the dust may only just be settling on the rollout of 4G around the world, 5G has quickly made it onto our radars. For Zhao, this is an exciting development to follow and influence. “As consumers are aware, the market is always changing so technology companies, like ZTE, must constantly evolve as well,” he says. “One of the big things for the smartphone and telecommunications market in Australia is the 5G network. We’ve announced the first 5G phone in the world and look forward to having 5G deployed in Australia.” With 5G a case of watch this space, Zhao also comments on the ‘smartphone peak’ observation made by the likes of Deloitte. He is eager
to emphasise, as Deloitte also does, the potential for further growth and diversification in the sector, in part driven by strengthening competition. He concludes: “When we first came to Australia in 2004, we saw endless opportunities to grow our footprint. That outlook is still relevant for our growth strategy today. Australian consumers want the best and most advanced devices, and we want ZTE to be a top-of-mind technology provider by offering them our innovative, next-generation smartphones. “In the next five years, we’d like to continue being a main player in the Australian phone market and ultimately growing our market share.”
21
TOP 10
10
TOP
YOUNG AUSTRALIAN BUSINESS LE ADERS
We’re always looking for breakout leaders in the business world, but these young entrepreneurs really shine. Some exceptional qualities allowed them to wow the Australian (and global) business world before they even turned 30. Here are 10 we have chosen to highlight Edited by: ANDREW WOODS
TOP 10
Beni Doolah
Founder, FivePointFour MEAL DELIVERY IS growing leaps and bounds across the world, and that growth isn’t showing any signs of slowing down. Beni Doolah is making a difference in the lives of thousands of individuals with his nutritious meal delivery service, FivePointFour. These low carb, low sugar, low fat and high protein meals are affordable and delicious, plus feature the incredibly
24
September 2017
10
convenient home delivery plan. The name comes from the five days a week of delivery availability and the four different macronutrient options provided: weight loss/low carb, active/exercising, muscle gain or vegan/plant-based meals. These young entrepreneurs share similar values: a passion for growth, helping and uplifting others and staying true to their Aussie roots while growing their business internationally. Keep watching - you never know when you will see their products on a store shelf or television advertisement near you.
TOP 10 YOUNG AUSTRALIAN BUSINESS LEADERS
Ryan Ebert
Founder, PHW Group, Healthlogic WITH THE WORLD’S aging population, healthcare offers a huge growth opportunity for the right business. Ryan Ebert started Healthlogic in 2016, and this new physiotherapy company is already making a name for itself. This self-funded venture is prepping to open a third clinic, while PHW Group is now servicing multiple cities across Australia
9
with the support of more than fifty employees and contractors. Ebert’s philosophy remains firmly rooted in customer service, noting that entrepreneurs should always have a “how can I help you” mentality.
25
TOP 10
Robbie Ball and Brandon Ellis Co-Founders, Uncle Jack
WATCHMAKERS HAVE BEEN in business for hundreds of years, but it took two 20-something Aussie’s to truly change the game. They started Uncle Jack out of a bedroom, and grew it to a million-dollar business within the first year. Today, you’ll find these smart watches in over 40 countries with expansion planned in the future. The team relies on expansive digital marketing efforts, including working with influencers and celebrities to raise awareness of the product lines. The tactic is working, as the brand plans to exceed a stellar growth rate of 40% in the coming year.
8 26
September 2017
TOP 10 YOUNG AUSTRALIAN BUSINESS LEADERS
Aimee Marks
Founder, TOM Organic AIMEE MARKS HAS a true passion for the environment and women’s health, and has combined them into a successful personal care business for the last eight years. TOM Organic reduces the overall environmental impact of traditional tampons and sanitary pads while providing women with ethical and thoughtful choices for feminine care products. The recent addition of twins to Marks’ family has her investigating ways to expand her business into baby and young child care lines as well.
7
TOP 10
Peter Moriarty
Founder and Managing Director, itGenius NAMED ONE OF Australia’s top 10 entrepreneurs under 30 by Smart Company is only one of Peter Moriarty’s many accolades. His full-service technology consultancy started when he was a mere 15 years old by working with friends and family on their thorny tech problems. Currently, itGenius is focused on ushering organizations into the era of cloud computing - moving data and infrastructure off of decades-old servers and into the new cloudbased paradigm that is dominating the computing world. Peter is a Small Business Cloud Computing expert, and the growth of the organization has been strong enough that it has caught the attention of Google - which has begun mentoring the team.
28
September 2017
6
Lucy & Rosie Thomas Co-Founders / co-CEOs, Project Rockit
AS FORMER VICTIMS of bullying in the school system, Lucy and Rosie Thomas decided one day that enough was enough - and together they founded Project Rockit. They have now shared their stories around the globe, and actively speak at anti-bullying rallies and youth leadership conventions everywhere. The Project Rockit team members are taking personal responsibility to show young people that
5
they are all worthy of respect, acceptance and the ability to share their creative expression. Both entrepreneurs have received acclaim throughout Australia with awards such as Westpac’s ‘100 Women of Influence’, while the League of Extraordinary Women named Rosie the 2015 Female Social Entrepreneur of the Year.
29
TOP 10
Richard Chua Founder and Academic Director, Talent 100
RICHARD CHUA IS an Aussieborn entrepreneur with a passion for 21st century education. With a goal of making worldclass education available for all students in Australia, Chua is currently pursuing his MBA at Harvard University after achieving a near-perfect Australian Tertiary Admission Rank (ATAR) of 99.95. Several years spent at Google in the United States allowed him to rack up the accolades with features in Smart Company, The Australian Financial Review and SMH. Students and mentors work together at Talent 100, and the results speak for themselves: more than 30% of its graduates receive an ATAR greater than 99, giving them the ideal springboard to pursue their dream professions and degrees.
30
September 2017
TOP 10 YOUNG AUSTRALIAN BUSINESS LEADERS
Daniel Flynn Co-Founder, ThankYou
WITH A GOAL of ending global poverty simply by providing consumers with better choices, Daniel Flynn is truly making a difference. With products in more than 5,500 outlets in Australia, Thankyou offers a holistic approach to combating poverty throughout the world by providing sanitation services, water and food. Flynn has earned numerous awards,
including the Victorian Young Achiever of the Year in 2013, and he was also a recent finalist for Australian of the Year. To date, Thankyou has donated over $3.7mn towards its goal of ending global poverty, plus feeding over 90,000 people, providing safe water to nearly a quarter of a million individuals and supporting proper hygiene and sanitation for over 300,000 in need.
3 31
TOP 10
Jo Burston Founder, Rare Birds
BURSTON DESCRIBES HERSELF as a serial entrepreneur and a natural leader, and we agree. Her most recent business opportunity is Rare Birds, an inspirational and connection platform for women entrepreneurs around the world. With her goal to grow 1,000,000 female entrepreneurs worldwide in 10 years, she is laser-focused on creating a space where women feel as though they can change the world.
2
32
September 2017
33
TOP 10
Jack Delosa
Founder and CEO, The Entourage Education Group WHEN YOU THINK of disruption in education, the name Jack Delosa is top of mind. His organization, The Entourage, now boasts over 300,000 members and continues to grow rapidly. With a global goal of improving traditional education, The Entourage was recently recognized by BRW Magazine as the fourth Best Place to Work in Australia. Slated as Australia’s leading educator of business owners and aspiring entrepreneurs, the practical business programs offered by this education powerhouse continue to support other business leaders throughout the world. Delosa’s leadership and passion have grown the business from a modest start to one which has a true global focus.
34
September 2017
1
35
grand slam The
GAME
Written by: John O’Hanlon Produced by: Justin Nelson
TENNIS AUSTRALIA
Craig Tiley, the CEO of Tennis Australia, in a rare interview, talks at large about his leadership approach, his vision for the organisation he heads, and the potential tennis has to capture the imagination of a new generation
W
hy does tennis fascinate? What lies behind its soaring popularity? Clearly it has a lot to do with the game’s gladiatorial nature; the spectacle of individual athletes contending for the big prizes and kudos of the top tournaments. At that level you could hardly call it a team sport, but as we have slowly begun to realise, star players only arise if there’s the right infrastructure - if children can get involved early on, and young people access good facilities and coaching. Craig Tiley doesn’t seem to mind that he never made the big time as a player, having been a bit long in the tooth when he started playing in his native South Africa – at just 12! “I had coaches that were very passionate about coaching and teaching and I learned as much about the passion as the
38
September 2017
technique,” he admits. “I was not a good enough tennis player to make a career of it but I didn’t mind that because I learned so many other things.” Well, you don’t get to captain the national Davis Cup team if you aren’t a mean player: that and the ‘other things’ he picked up about tennis are part of what makes him perhaps the highest profile leader in the sport today. The Australian Open, with its 112-year history, starts the tennis year with a bang in January. Tiley has been running this event as Tournament Director since 2007 and since 2013 has combined this with the role of CEO of Tennis Australia (TA), the national governing body for the sport comparable to the Lawn Tennis Association in the UK. His path has not involved filling in too many
SPORT
Cardio Tennis
application forms, something he puts down to three principles he has embraced: “First, remember you are going to meet the same people at different points in your career and theirs, so treat them as you have them treat you. Second, the easiest way to get something done is to work extremely hard at
it. Third, be persistent.” His habit is to form a mental picture of his goals – as coach of the University of Illinois University tennis team he pictured holding up the National Collegiate Athletic Association (NCAA) trophy and being called to the White House, both of which came to pass. Later on he
businessreviewaustralia.com
39
TENNIS AUSTRALIA
was to receive the US National Coach of the Year award also. The picture that grew in his mind after he joined TA as Director of Tennis was visionary. “I saw an Australian Open that looked like one of the world’s best entertainment events as well as a major sporting event.” The kind of event that Disney might envisage, he thought. It’s not a textbook approach to management, but a logical one that has served him well, and that vision is what he has worked towards. Remember, he is persistent. “This job is one where you cannot work in the shadows. It is very open and transparent. People read and hear about the decisions you are making.” The stresses and the pressures of the job are accentuated because of its public nature. It helps that Australia is mad about tennis. Tennis is the number one participation sport there. The Open draws around 550 players with about 450 full-time staff and 9,000 part-time staff employed by TA during the Open. Globally, it
40
September 2017
is followed by more than a billion fans. A lot of bucks stop at the CEO’s desk. “I am proud that the Australian Open is considered the most successful and biggest sporting event in Australia, and is right up there globally.” It is increasingly considered the benchmark for other events, an achievement he puts down to extraordinary teamwork. “My job as a leader is putting a good multinational team together. I am truly proud of these people.” Transforming the Open Let’s look at the facts. In Tiley’s four years at the helm, TA’s revenues have more than doubled, from AU$150mn to more than $350mn. This accelerated growth was achieved partly, he admits, by unlocking much value that had been created in previous years, but most of it has been down to a bolder style. “We have taken some big risks because we knew there could be big rewards,” he says. The biggest risk was to reinvent the organisation. The first step
SPORT
was to buy back the broadcasting rights for the Australian Open from domestic media rights partner Channel 7. Now TA is the only one of the four Slam organisers to bring its broadcasting in-house. “We started to control end to end production of our content, so we could make decisions on how it was going to be distributed globally. That unlocked the potential of all our national and global media rights partners, because now we could customise that content very specifically to those markets, whether
language, who is playing, or time of play.” This at once allowed TA to optimise its financial return. The cost of the rights buyout was recouped inside of two years. International broadcasters were happy to pay TA handsomely to receive fully-customised content which they don’t have the luxury of getting anywhere else. With many businesses moving to outsource non-core activities, it’s a different model, but bringing expertise in-house allows TA to control and monetise media rights, sponsorship, supply rights and add
businessreviewaustralia.com
41
http://www.clubspark.com.au
London
Melbourne
value and innovation via entertainment. It goes further than insourcing – for example, an R&D centre has been set up to coordinate with all Australian universities on innovations that can boost the bottom line. Tiley, a ‘citizen of the world’ himself, has gone international to hire the best commercial, media rights and entertainment people. “I have specifically designed the leadership teams around a very international model. We have looked out rather than in.” The transformation of TA from being a tennis federation into a midsize ASX-listed business, which is not only a tennis business but also an entertainment business, is in full progress. With production and broadcasting brought under control, the way is open to bring in wider entertainment events focused on music, kids, and food. The last of these is a no brainer in Melbourne, which has a strong culinary culture. “We brought in some of the best chefs and the best restaurants and put them right on site,” Tiley says. “We know that if you add music you are going to draw a big market so we have become a music promoter, with 80-plus bands and acts.” Of course all
Craig Tiley, CEO Craig Tiley is recognised as one of Australia’s most innovative and forward thinking chief executives. His charismatic and passionate nature together with his business acumen has leveraged him to the forefront of sports administration and the leader behind Australia’s largest and most successful international sporting event. Tiley has been Tournament Director of the Australian Open since 2006 and was appointed CEO of Tennis Australia (TA) in 2013. His relationship with the playing group and relentless focus on improvement has transformed the Australian Open into the players’ favourite Grand Slam and Australia’s favourite sporting event, bringing 728,000 people through the gates annually, delivering more than AU$300mn in direct economic benefit to Australia and reaching a global audience of more than 350mn.
businessreviewaustralia.com
43
POULTRY PALACE
Poultry Palace is 100% supplied by Hazeldene & is acknowledged throughout the industry for our quality. All products are Halal certified & the unique breeding of poultry allows enhanced levels of magnesium, zinc, selenium together with Vitamin A & E. Our poultry boned and pa packed for your sites gives your business the Farm-to-Plate platform.
Contact us for all product enquiries: Tel: (03) 9369 5199 | Fax: (03) 9369 2911 Email: anne@poultrypalace.com.au See our products at: www.poultrypalace.com.au
www.facebook.com/poultrypalace
Accurate, up to date data, anywhere, anytime Sport Marketing Australia is delighted to have been working with Tennis Australia as technology partners during the past 9 years in developing an effective program based database management system. SMA provides the Omni Sports Management System, which is a fully customised web-based software application designed to suit the unique business rules of individual sporting organisations. It is designed for sports administrators to streamline operations and manage data, while providing an efficient way for members and officials to register, add and update their own data.
Phone +61 2 66521112 Email craig@sportsmarketing.com.au Go to www.sportsmarketing.com.au
SPORT
“I have specifically DESIGNED THE LEADERSHIP TEAMS around a very international model” – Craig Tiley, CEO that can’t be done in-house, so music promoters are brought in. Delaware North has been delivering catering services since 2013, and companies like Nickelodeon and, yes, Disney, ensure that the entertainment is a fit for the younger fans. “We know that if we don’t introduce kids before the age of 15 to tennis they may never engage with it,” adds Tiley. The principal asset Rapid growth in revenues has allowed Tiley to increase headcount without breaching his vow never to increase the employment cost by more than 14% of total revenue. He’s seen too many top-heavy sports federations. With a diverse and multicultural workforce of around 450, he has a refreshing approach to maximising productivity and job satisfaction. Inclusion, diversity and equal opportunities are more than
buzzwords: Tiley is a global advocate for opportunities for women and ensuring inequity in pay and gender is brought to an end. “We are one of the few organisations outside the UN that has adopted the Women’s Economic Empowerment principles. The UN devised a test to monitor gender equity around pay, performance and opportunity. Tennis Australia was the pilot organisation in Australia and Southeast Asia, and we helped to get six or seven other organisations to join us in pilots.” Working conditions at TA are illuminating. In place of maternity leave both men and women may take time off and return to the same job. There are rewards for taking annual leave, as Tiley adds: “In Australia everyone gets four weeks’ leave. I want our people to take their leave and get a break, so if they take their four weeks within
businessreviewaustralia.com
45
SPORT
12 months they get an extra week.” One day a year the workplace stops and the time is devoted to health and wellbeing with dentists, skin and eye doctors coming on site and lectures and workshops on things like depression and stress. On top of that, there are generous bonuses for performance – needless to say a high proportion of staff qualify. Clock-watching is a thing of the past. Working from home is allowed in many circumstances - the organisation will pay set up and maintenance costs to equip the employee’s home with all the devices and connectivity to intranets and website business portals they need. A key aspect of this transformation is the growth of the popularity of the Australian Open overseas, particularly in China. Tiley explains: “To ensure that we fully embrace the opportunities of global growth we have opened up several international offices including in Europe and Hong Kong which will allow us to focus on engaging local markets and
forming strong strategic and commercial partnerships.” Growing the game This year there were no Australians left after the first week of Wimbledon, but Craig Tiley is not despondent. The tradition speaks for itself and that evening he was at the annual TA barbecue celebrating 30 years since Pat Cash took the title and 50 since John Newcombe’s success. “The challenge today is there are many more nations playing the sport
“I am proud that the AUSTRALIAN OPEN is considered the MOST SUCCESSFUL AND BIGGEST SPORTING EVENT IN AUSTRALIA, and is right up there globally” – Craig Tiley, CEO
businessreviewaustralia.com
47
TENNIS AUSTRALIA
Tennis Australia Ann West - Head FitBit of Integrity and Compliance
Jacquie Mangan General Counsel
Anna Caple - General Manager Performance
Darren Pearce Director of Media and Communications
David Roberts - Chief Operating Officer
Paul Cammack - Director of Participation
Richard Heaselgrave Commercial Director
Tom Larner - Director of Events and Facilities
SPORT
and tennis is competing with many other activities for good talent. We have to do well in these events and provide the kids with aspiration to choose tennis as their sport. It is great non-contact exercise, highly social, attracts girls and boys alike. These are great values but we haven’t been very good at taking away the barriers. One of these is access to facilities and their cost. Second, the governance of tennis worldwide is very complicated. Third, I don’t think we are doing enough innovation. Those are three things we absolutely have to resolve or we’ll become
a sport of low participation and dwindling relevance.” Tennis is well behind when it comes to data capture and analysis. It needs to take lessons from retail and use technology to find out about its consumers and what they want, just as they do in the shopping Sport. “If we can do that we can adjust our programmes and products to suit them. We need to match today’s technology and behaviours so you can use your mobile phone to book a court, communicate with your partner, pay direct, show up and have the gate open for you.”
TENNIS AUSTRALIA
In fact, both TA and the UK’s Lawn Tennis Association (LTA) have accessed technology that can do that through a company called SportLabs. 400 clubs in Australia trialled it last year, he says, and recorded an average 30% increase in revenues as a result The right equipment helps access too. “We have to look at balls and strings and racquets, and formats too. We can now have equipment to even it out so we can enjoy it better.” Rather like a golf handicap, he agrees, but achieved through modified equipment. A modified tennis format branded as Hot Shots is now played in 75% of Australian schools as part of their PE programme. It can be set up on any surface, and uses three types of ball and a choice of net and racquets geared to the player’s level. Around 3,000 Australian children are playing this variant of tennis, Tiley says, of whom many will progress to the competition game as they get older – though Hot Shots is very popular among adults too.
50
September 2017
Tiley is impatient to see less convoluted, more collaborative global governance in tennis, and does all he can to promote it. For now though, TA is developing as a benchmark for the rest. The Australian Open is different from the other Grand Slams in that its venue Melbourne Park is owned by the State of Victoria which invests in its development, with TA paying a percentage of revenues. It’s a good deal for the state as during the 20-year current agreement period from 2016 to 2036, it’s estimated that the economic impact will amount to more than $6bn. That makes the current investment of $1bn in redeveloping Melbourne Park very good value for the state - it has provided the site with three stadiums with retractable roofs, 50 tennis courts and a site that can manage 85,000 people a day. “We had a million people this year,” says Tiley. “We are building a new function centre, a new broadcast centre, a new player area that is under construction now and we are putting in another 5,000-seat court
SPORT
in the precinct.” An eight story administrative centre, Tennis HQ, has already been constructed as part of the current redevelopment that will complete in 2021. When he took on the top job at TA, Tiley sat down with his senior executives to set down the values of the organisation - the formula he had brought with him fitted perfectly: “Excellence: every time I do anything it has to be first class. Loyalty: to your cause and to each other. Teamwork: do it together as a team. Humility: keep your ego in check.” His coaching background was doubtless as
good a preparation for running a successful business as any MBA, he concludes. “In any leadership role your attitude should be that you can’t know everything, so surround yourself with people who know more than you do. My job is to provide them with a pathway so they can excel.”
businessreviewaustralia.com
51
Safeguarding Australia’s most valuable resource Humans can survive three weeks without food, but can only last up to five days without water. Viadux CEO Michael Negri reveals how the company is sustainably quenching Australia’s thirst
Written by: Niki Waldegrave Produced by: Jeff Debicki
VIADUX
V
iadux is a progressive and responsive distributor of water network solutions for the civil, industrial and irrigation sectors of the Australian economy. As Australia’s largest distributor of water and civil pipe systems, it boasts major pipelines around the country for potable – i.e. drinkable – water. From the dam where the water is collected, to the water running to your tap, the chances are, it has passed through Viadux products at some point in time. Earlier this year, the government dedicated $2 billion to the Water Infrastructure Loan Facility and in 2016, set aside $500mn to build and augment existing water infrastructure via the National Water Infrastructure Development Fund. The government also unveiled plans for the 270km Broken Hill Water Security Project, set to be complete by the end of 2018. Viadux CEO, Michael Negri, says it’s great news for Australia – it’s a dry country and we need security of our precious water and there has been a huge decline of government spending in key water infrastructure over the last few years.
54
September 2017
CONSTRUCTION
“The thing is, water’s not sexy, you know?” he says. “It’s not something that people ‘feel’, and it certainly doesn’t win votes at the election. Whereas people ‘feel’ a new road, or can see what happens from a major spend on a new freeway, or how roads with potholes are fixed. “But nobody ‘feels’ good or bad about water until it disappears – and then it’s too late. The amount of water we lose through poor infrastructure is phenomenal, so it’s critical for Australia to continue to spend money on water infrastructure, and protect this important resource “And we’re just starting to see that money coming through now and over the next five years, where the government is starting to spend on infrastructure and major pipelines again.”
Michael Negri CEO
“WE CALL OURSELVES ‘WATER
PEOPLE’, BECAUSE WE FOCUS ON ONE PRODUCT: WATER” – Michael Negri, CEO at Viadux
In the pipeline Viadux has some exciting new contracts with major water utilities and large contractors, including the 60km water pipeline from Orange to Carcoar with Leed Engineering which it is due
businessreviewaustralia.com
55
Your business comes first With market-leading research and intelligence
The Market Intelligence Co. is a leader in customised business-to-business and industrial market research and intelligence. We are passionate about achieving the best possible results for you, results you can depend on, results that drive your business into the future. Our range of research solutions and services include: • Customer Engagement, Satisfaction, Loyalty (incl. benchmarking) • Employee Engagement, Satisfaction, Loyalty (incl. benchmarking) • Stakeholder Engagement, Satisfaction, Loyalty • Brand Health & Positioning • Communication Effectiveness
• Net Promoter Score® (NPS®)* • New Product/Service Feasibility • Supply Chain/Channel Performance • Market & Industry Analysis • Segmentation & Profiling • Usage & Attitude • Mystery Shopping
*Net Promoter Score® and NPS® are registered trademarks of Satmetrix Systems Inc., Bain & Company and Fred Reichheld.
Australia
New Zealand
p +61 2 8336 8000 e enquiries@market-intelligence.com.au
p +64 275 513 988 e enquiries@market-intelligence.co.nz
www.market-intelligence.com.au
www.market-intelligence.co.nz
company needs data to grow, improve “ Every and provide better service - but if it isn't quality
information, then it's not really providing any great value. While advances in technology have enabled businesses to survey or interact with their customer market like never before, it takes a specific skillset - and a fresh set of eyes - to extract the right information that will genuinely provide a competitive advantage.
”
Angela Orsaris is the Managing Director at The Market Intelligence Co.; a leading Australian-owned company, with local and overseas operations, that specialises in business-to-business and industrial market intelligence and research. With more mo than 30 years’ experience in market research, Angela has seen the growth and use of customer, market and business intelligence, experiencing first-hand how businesses work with the information they receive. "We want to help our clients understand their business, customers, employees, and/or market better, so they can grow and improve - but that's much more than just data or supplying a metric. It is actually trying to understand the motivations and drivers behind those metrics so that they can better understand their customers, employees and work with them to provide better products and/or services.” The Market Intelligence Co. assists Viadux in increasing its customer and employee engagement (including NPS® and e-NPS®).
Angela Orsaris, Managing Director
Angela is a firm believer that engaged employees are at the heart of every good business, which leads to engaged customers, which in turn leads to increased shareholder return. The Market Intelligence Co. conducts many Mar projects each year for a diverse range of clients from industries such as building & construction, logistics & transport, infrastructure, government, energy, ICT, medical equipment, wholesale, mining & minerals, and industry & membership associations. as
What can we do for you? We assist Viadux in increasing its customer and employee engagement www.market-intelligence.com.au
www.market-intelligence.co.nz
VIADUX
Chris Clarke General Manager Sales and Customers to finish supplying in September. Viadux has a strong alliance with Saint-Gobain PAM, the world’s leading Ductile Iron pipe manufacturer to sell their ductile iron pipes in Australia Viadux is now pushing innovative products from their suppliers such as the recently launched Zinalium, a groundbreaking new product, into market. “It’s a real change for the industry,” adds Negri, “and we’re the only people in the country doing it. It’s a factory-applied, active corrosion
58
September 2017
Debbie Debono General Manager People & Culture protection system for ductile iron pipe and removes the need for sleeving, which is a high additional cost of laying Ductile Iron pipes. “It basically extends the service life of your pipeline and reduces on-site handling, saving time and money by eliminating the requirement for polyethylene sleeving.” Challenging the norm With 15+ years profit and loss accountability in Fletcher Building (Stramit), Boral and the Negri Group
CONSTRUCTION
Luke Dutton General Manager Products & Markets – responsible for annual turnover from $20m to $500m – Negri has an entrepreneurial spirit. “My approach to business comes from running a number of family businesses,” he says, “What’s really important to me is engaging, building and inspiring our people while challenging the status quo.” He claims one of the key challenges for the industry is to continue innovating whilst minimising energy
Mark Dalwood Chief Financial Officer
usage, and doing things that improve the overall well-being of the planet. “We’ve spent the last couple of years restructuring the business to be lower cost,” he adds, “making it more customer-centric and focusing on our people; having an engaged workforce who want to come to work and deliver for our customers. “We call ourselves ‘water people’, because we focus on one product: water. We care about how it gets
businessreviewaustralia.com
59
VIADUX
around the country but we’re pipe agnostic – we don’t really mind whether it’s plastic pipe, metal pipe or whatever sort of pipe. Negri, who coaches AFL in his spare
“What we want is the best solution for our customers” – Michael Negri, CEO at Viadux
time and is also a director for a centre for people with intellectual disabilities, says some key changes have been investing in Viadux’s people, who are now far more engaged, and have bought into the executive team’s vision of the organisation. There has also been a major focus building strong relationships with suppliers and clients such as Sydney Water, Water Corp, SA Water,
Are you a leader people want to follow ? Being a great leader is not something everyone is born with, but it IS something everyone can learn. At Flourish, we thrive on helping senior business people develop those exceptional leadership skills & have over 15 years experience doing that with some of Australia’s leading businesses. We’d love to help you become that leader, and in so doing, create a successful business that your team love working in and are proud to be part of.
Contact Nikki Hobin 0412 388 053 nikki@flourishconsultancy.com.au
www.flourishconsultancy.com.au
Coaching | Consulting | Training | Facilitation
CONSTRUCTION
John Holland, Comdain Infrastructure and Leed Engineering. Diversified The next 18 months will see a big push into irrigation and industrial products, places where water is moved to benefit the community. “A big push in 2017 has been into irrigation,” he adds. “We see ourselves as a growing competitor
in that space, and we hope to bring the same customer centric approach to service in to that sector. We hope the government continues to look to invest in the changing of open channels to piped systems, to save on evaporation losses. “Then, later in the year and through 2018, we’ll have a stronger presence in the industrial plastics market for
businessreviewaustralia.com
61
VIADUX
“THE AMOUNT OF WATER WE LOSE THROUGH POOR INFRASTRUCTURE IS PHENOMENAL, SO IT’S CRITICAL FOR AUSTRALIA TO CONTINUE TO SPEND MONEY ON WATER INFRASTRUCTURE” – Michael Negri, CEO at Viadux
treatment plants, and areas which need high specification plastics. These are areas such as water treatment plants, viticulture and aquaculture.” Negri says his proudest achievement to-date is taking Viadux, which was a loss-making business when he joined two years ago, to a profit, without significant loss of people.
62
September 2017
CONSTRUCTION
“When I took over in 2015, the organisation was not in a great financial position, like a lot of the water businesses,” he reveals. “We’ve worked very hard over the last two years to make it a profitable business with a bright future, one that we can all be proud of. “It’s really impacting the culture of the organisation to what we hope people feel is a much more customercentric organisation that’s focused on doing the right things by its customers and its people. And that flows into the profitability of the business.”
businessreviewaustralia.com
63
to the Written by: Niki Waldegrave Produced by: Josef Smith
E C H O G R O U P / C H E R RY E N E R G Y S O L U T I O N S
There’s an energy revolution going on and Echo Group CEO Erik Zimmerman and COO Ben Wright tell Niki Waldegrave how its businesses are at the forefront of it
W
hen Erik Zimmerman watched A Crude Awakening, a documentary on the planet’s dwindling oil resources in 2006, his life would never be the same.
By day, he was the head of learning at ANZ Bank. By night, he was an entrepreneurial energy crusader, meeting up with the Alternative Technology Association and solar engineers asking how he could put solar on every roof in the country. That question occupied his mind 24/7 until he got the lightbulb moment – bulk buy solar neighbourhoods. So, in 2007 Zimmerman extended his mortgage by $365k, left ANZ and launched his company, Rezeko (Eko Energy). “My parents thought I was nuts,” he laughs, “But I think businesses that answer a question are always a great place to start.” The gamble paid off, and by the time he sold Rezeko’s business
assets to AGL in 2011, it was the third biggest solar company in Australia, with 8000 installations and a turnover of more than $30 million. Now he’s the CEO and joint director of Echo Group – along with Ben Wright, founder of upmarket fruit and vegetable business, The Market Runners – focusing on Australia’s booming energy movement, from solar panels to energy efficient lighting, with exclusive manufacturing relationships across Asia Pacific and SE Asia. “When we invested in Littil, it was a small LED lighting business but had the look and feel of the solar market 10 years earlier,” says Zimmerman, “where the prices were due to come down,
“The of what we have is in the we have in the business” – Erik Zimmerman, Chief Executive Officer
66
September 2017
ENERGY
paybacks were very strong and the technology was evolving fast.” Echo Group houses Cherry Energy Solutions, Littil LED, Unilumin Australia, Jim’s Energy, SiteTech Solutions, SiteMedia Solutions, Jim’s Site Solutions and the new trade sales division SiteSales. Cherry was launched in 2013 due to constant requests to both supply and install, and is Australia’s only specialist provider of five integrated energy efficiency solutions – LED lighting, Solar PV Systems, Energy Storage, Energy Monitoring and, residential Energy Broking. With Australians paying the
highest electricity prices in the world – they’ve increased 214 per cent faster than inflation – there has never been a better time to invest in energy efficiency, especially solar. “The reality is, energy prices have increased at a compound rate of 8.4% over the last decade with most people paying 25 cents a kilowatt hour,” he explains, “but you can make energy with solar for 10 cents a kilowatt hour, inclusive of funding and financing costs.” “There really is no logical reason why you wouldn’t go solar.” Zimmerman says the three main ways to save money on energy
$100 million Echo Group annual revenue
w w w. b u s i n e s s re v i e w a u s t r a l i a . c o m
67
THE WORLD’S LEADER IN SOLAR TECHNOLOGY
Hanwha Q CELLS (NASDQ: HQCL) is one of the world’s largest and most recognized photovoltaic (PV) manufacturers for its high-performance, high-quality PV cells and modules. This reputation is backed by a global network which spans more than 40 countries across Europe, Asia-Pacific, Americas and Africa. LEARN MORE Hanwha Q CELLS Australia Pty Ltd Unit 1402, 20 Berry Street North Sydney, NSW 2060, Australia 1 800 Q CELLS q-cells-australia@q-cells.com
www.q-cells.com/au
FOR Q CELLS, PV TECHNOLOGY IS NOT JUST A PRODUCT – IT’S A KEY DRIVER OF SUSTAINABLE ENERGY TODAY AND FOR FUTURE GENERATIONS. Q CELLS’ solar modules are engineered in Germany and built to provide high yields and outstanding reliability in a diverse range of real climates around the world. With over 200 scientists and researchers in Germany, Korea, Malaysia and China, Q CELLS continues to innovate at the forefront of the global solar industry. Q CELLS’ presence in Australia traces back to 2010 as one of the earliest drivers of solar technology in the market. With a strong local presence – sales, support, technology and engineering services – Q CELLS has
a strong history of unrivalled support and quality products for Australians. As of the end of 2016, Q CELLS powers over 10% of the Australian solar market, making it among the one of the top two solar module suppliers in Australia.
ENERGY
Erik Zimmerman Chief Executive Officer Erik Zimmerman has worked for leading global companies such as Sara Lee, Unilever, ANZ and AGL and he has been working in the energy efficiency and solar markets since 2007. In 2011, he sold his solar business, Rezeko (EKO Energy) to energy retailer AGL to further develop the Echo brands. bills are to use less energy (which typically means upgrading to LED lights), making your own energy (with solar), and paying less for energy (by broking a better deal with retailers). Cherry boasts one of the best customer bases in Australia, with installations in every genre, including retail groups like Spotlight, Woolworths and Specsavers, service stations, schools, food manufacturers and head offices, such as BMW in Melbourne. “The thing we have in common with all our customers is high energy bills,” adds Zimmerman, “and a desire to be a part of this new energy transition. I’m proud we’ve
w w w. b u s i n e s s re v i e w a u s t r a l i a . c o m
69
E C H O G R O U P / C H E R RY E N E R G Y S O L U T I O N S
built a good reputation amongst some of Australia’s leading brands, and that they have the confidence to have us as a sustainability partner.” Chief Operating Officer Wright says he’s proud not only of the holistic model of reducing clients and partners’ operating and energy costs – on average, Cherry’s customers save 55% on energy bills – but also the sustainability aspect. “No matter how focused you are on the bottom line,” he says, “it’s nice to be able to do something
that protects the environment and benefits future generations.” Echo also boasts a formidable supplier network, not least in when it comes to solar cell technology. “Echo Group carefully selects suppliers with only high quality, Tier 1 energy efficiency products, including solar module from Hanwha Q CELLS [Nasdaq: HQCL],” Zimmerman adds. “German engineered, Hanwha Q CELLS is the world’s largest and most recognised solar cell and module manufacturer and provides a 12-year product warranty with a 25 year linear performance warranty.” Echo’s head office is a 1,440sqm facility at Geddes Street in Mulgrave, Victoria and, under the highlytrusted Jim’s brand, it recently won the Strathbogie Solar Bulk Buy Program in collaboration with the Yarra Energy Foundation. There is also a lot of interest from other rural residential areas in Victoria.
“There really is no logical reason why you wouldn’t go solar” – Erik Zimmerman, Chief Executive Officer 70
September 2017
ENERGY
Ben Wright Chief Operating Officer Ben Wright worked for leading Australian health care provider Ansell and founded the upmarket fruit and vegetable business ‘The Market Runners’. He has also held senior positions in Australia and New Zealand and has been a driving force within the Echo Group since its conception. Zimmerman says Jim’s is an incredibly well regarded, trusted brand and is the largest franchise organisation in Australia. It’s a brand that people trust because it’s backed up by a million-dollar warranty fund. “I’m back doing these regional bulk buys again and it’s taking me down memory lane,” states Zimmerman. “There’s an energy revolution going on and we aim to be at the forefront of that.” “Our immediate priorities are to ensure that we become a truly national business. The second priority is what we call ‘Total Solar’ – to move to large and
w w w. b u s i n e s s re v i e w a u s t r a l i a . c o m
71
E C H O G R O U P / C H E R RY E N E R G Y S O L U T I O N S
industrial scale solar with Cherry and leverage the Jim’s brand in the residential solar sector. “The third is around systems. As we grow, we need to be more sophisticated in supporting systems so we’re investing in ISO 9001, ERP (Economic and Regulatory Programme) and others to help the business function better.” In a market of such explosive growth, Cherry Energy Solutions often finds itself competing against low cost or low quality competitors, Energy Smart Schools at Northcote High School
72
September 2017
who won’t necessarily be around in five to 10 years, so it’s essential to stay ahead of the curve. “It’s a highly disruptive environment and with disruption, you’re either the disruptee or the disruptor,” says Wright. “Our intent is to be the disruptor, and to do that you need to stay ahead of the product and funding trends. If you stop moving, you fall behind.” With fascinating technology in some of the peripheral energy efficiency categories, both directors
ENERGY
insist we’re moving into an era of “hyper-efficiency” in LED as it continues to make great strides in terms of cost and effectiveness. Battery storage is also expected to be a major future market, with prices coming down by about 29%. “We’re seeing tremendous growth in that area,” adds Zimmerman. “About 700 systems a month are being installed in Australia residentially. And pairing batteries with solar, you can make and store energy day and night and release it when it’s most needed. You become your own mini power plant.” Is his wish still to have solar on every roof in Australia? “Absolutely,” he says. “We fundamentally support this transition to new energy and our corporate mission is to bring these technologies within reach of every home, every business, and every
school in every community. “We want to be with our customers every step of the way, simplifying the message, bringing them within reach from a pricing point of view, and bringing new technologies to market.” They insist the businesses’ success, ultimately, comes down to the workforce, which currently stands at 90 people but is set to double in the next five to 10 years. “A business is an idea but for that idea to become a reality you need a committed group of people,” adds Zimmerman. “The results we’ve achieved would not have been possible without our team, who have worked tirelessly, and our aim is to grow the leaders of tomorrow from within.” “The power of what we have is in the people we have in the business.”
w w w. b u s i n e s s re v i e w a u s t r a l i a . c o m
73
DIVERSIFICATION
and EXPANSION
at CIVMEC Written by: John O’Hanlon Produced by: Josef Smith
The Australian multi-disciplinary contractor is scaling up at an impressive rate to consolidate its position as the go-to provider of all types of infrastructure, at the same time targeting new markets
CIVMEC
S
ince early 2016 when we last spoke to Pat Tallon, the energetic CEO of Civmec, the company seems to have grown almost as much as in the whole of the seven years since it came into existence. Well, not quite, but if the plans he is pursuing come to full fruition, that really could be the case at least in another year as far as the order book is concerned. It hasn’t been an easy year. Over the last 12 to 18 months the market appeared to be slowing down as investment declined and the Australian resources industries in particular suffered a number of knocks. Over that time Civmec has been doing the usual
76
September 2017
ENERGY
prudent things, like casting around for the contracts that were still being put out for tender and doing what it could to develop its market. One thing it did not do was to retrench. As Tallon explains: “We took a calculated risk and retained much of our overhead, in particular our people. We didn’t want to lose the skills and qualities of our experienced teams, so we retained those people and set them to work on estimating and project winning, targeting four or
five jobs that we liked the look of.” If Civmec didn’t win the work, perhaps that decision might have been a set back, but they did secure the projects, and now has the healthiest order book in its history, with jobs totalling around $580mn secured. The sweet thing, he adds, is that having refused to mothball any of its capacity or lay off staff, it has all the resources needed to meet its contractual commitments and can even add to the order book as opportunities arise
businessreviewaustralia.com
77
EcoFilter® by
The New Standard in Odour & Emissions Control The EcoFilter Advantage: •
Biotrickling filter that provides biological, environmentally-friendly treatment
•
Removes organic and inorganic odours
•
No secondary odour removal polishing step required; EcoFilter does it all
•
Sustainable technology, using no hazardous chemicals
•
Consistent, reliable performance
•
Very low operating costs
bioairsolutions.com
ADV
When Civmec and Black & Veatch needed odour control to meet the stringent requirements for Woodman Point, they turned to EcoFilter® by BioAir. For a project as large as the expansion of Woodman Point WWTP, Civmec and Black & Veatch couldn’t take any risks with odour control. They chose a company focused on process design, a company experienced with large-scale installations, a company with hundreds of successful installations in countries all over the world. They chose BioAir Solutions.
VERT
BioAir’s EcoFilter® biotrickling filters have set new standards for the removal of inorganic and organic odours, allowing for complete odour control with a single biological reactor. EcoFilter’s proven odour and emissions treatment capabilities consistently exceed expectations in Australia at waste-to-energy facilities, breweries, and municipalities across the country. And because every BioAir system is supported by a local team, our customers can always rely on the high degree of care for which BioAir is known.
250+
12
100%
Installations Worldwide
Countries
Performance Success
With a focus on science and research, BioAir continuously develops and improves its growing roster of odour and air emission control technologies, allowing BioAir to support municipalities and industry by solving the most challenging odour and emission control problems. BioAir’s diverse treatment technologies allow for the best available solution for each unique application, assuring performance success and guaranteeing customer satisfaction.
bioairsolutions.com
CIVMEC
The Forgacs facilities in Newcastle are quite close to Sydney, with about 24 hectares of waterfront land, and there is a lot of infrastructuretype work in Sydney at the moment
80
September 2017
ENERGY
without increasing its overhead at all. All that could translate into a significant upside in the current financial year. With between 2,500 and 3,000 jobs in Western Australia supported by its activities, Civmec is bound to be well regarded by the state administration, particularly its new Premier, Mark McGowan, appointed in March this year – he won with a 10% swing in votes, with employment a key target. Last year we were talking about the steelwork Civmec was installing at Perth’s stunning new stadium. Civmec’s scope was completed on time to an extremely high quality, though a lot remains to be done before the facility is ready to open. New pipeline Let’s have a look at some of the projects that are now current – they all have a story to tell. Foremost is probably the award in November last year to Civmec in a 50/50 joint venture with Black & Veatch (B&V, one of the leading wastewater treatment engineers in the world) to design and construct a major
Pat Tallon CEO Patrick John Tallon was appointed to our Board on 27 March 2012. He is responsible for the development and performance of the Group, including building culture and leadership. Over the past 28 years, Tallon has accumulated significant knowledge and experience in all aspects of the construction industry and has been involved in many major oil and gas, mining and infrastructure projects.
businessreviewaustralia.com
81
CIVMEC
1,600 upgrade to the Water Corporation of Western Australia’s Woodman Point Wastewater Treatment Plant. This job ticks a lot of boxes. It is the first time Civmec has taken on a job for this client – it is a local project and this is critical infrastructure for the region, treating wastewater for about 680,000 people living south of the Swan River. The upgrade will see its capacity increased to 180mn litres a day. There’s a lot of water infrastructure investment needed in Australia, so this could lead to a major new segment for the company, as Tallon adds: “It is also an EPC alliance project which is somewhat different from our standard contractual model: herein this situation there’s a target price put on the job and the joint venture partners are very focused on bringing in the project under that budget.”
82
September 2017
Number of employees at Civmec
Many of Civmec’s long standing clients are in mining, and currently some 60% of the current order book stems from this sector. “We are doing a large job for Rio Tinto in Queensland,” Tallon says. “Rio Tinto is expanding output from one of the world’s premier bauxite deposits following approval of the $1.9bn Amrun project.” It involves a full package of work, including civil engineering, fabrication, electrical work and the like. The steelwork will be fabricated at Civmec’s Henderson facility on Australian Marine Complex – the largest undercover fabrication facility in Western Australia – and shipped to Queensland from there. More recently the company was awarded an expansion project at Alcoa’s Pinjarra Alumina Refinery,
ENERGY
just 80 kilometres south of Perth. It’s another EPC contract, involving the engineering, procurement, delivery, construction, integration, commissioning and performance testing of a filter facility, materials handling system and associated supporting infrastructure at the site. Over the next 18 months Civmec will be integrating the world’s largest plate and frame filters at Pinjarra with the rock conveyor system. Another ground-breaking project in more ways than one is at Altura’s
James Fitzgerald Executive Chairman
businessreviewaustralia.com
83
Civil and Engineering Structural Mechanical
Mining and Res
Mappi DPH Surveys is ‘ahead of the mark’ after a growth filled year.
sources
ing and Design
www.dphsurveys.net.au
Ahead of the mark DPH Surveys are specialists in providing end to end mine site and civil infrastructure solutions. The privately-owned company, head quartered in Perth WA, secured the Woodman Point WWTP contract, a joint venture between Civmec, Black & Veatch and the Water Corp, marking an exciting period of growth within the company. g
‘It has been a tremendous 12 months for the company. We’ve got a talented team who have all played instrumental roles in our continued growth,’ David, the Managing Director and founder of DPH Surveys said, ‘it has been truly awing to set some pretty heavy p goals and achieve them.’ DPH Surveys employees also worked closely with Civmec on other projects including the South Hedland Power Station and Brockman Fuel Hub, delivering the civil and structural mechanical packages.
‘We make sure that we do the job right, play to each team member’s strengths and keep to the client’s schedule. That’s why clients like working with us,’ David said when speaking of past projects, mainly in Western Australia’s Pilbara region. Their portfolio of projects in the region port include the Roy Hill Terminal Yards, Newman Orebody 24, Cape Lambert Stock Yards and Port Hedland Inner Harbour projects. As DPH Surveys reaches completion of the previous 12 months’ milestones, David and his team are looking ahead to new goals. Which he says include developments in UAV and other technologies that can be utilised for providing a better survey service, renewable energy projects and increasing the civil and mine site inc infrastructure portfolios.
www.dphsurveys.net.au
CIVMEC
Rod Bowes
Justine Campbell
Kevin Deery
Charles Sweeney
88
Terry Hemsworth
September 2017
Damian Kelliher
ENERGY
We have already built a precast concrete workshop which allows us to do prestressed items like bridge beams so we can target major infrastructure project in New South Wales and Queensland – Pat Tallon, CEO Pilgangoora opencast lithium mine in the Pilbara. Civmec has secured a package of civil works there, and Tallon is hopeful that more packages will follow. Lithium, he says, is an up and coming mineral much in demand from the technology industries, especially for use in batteries. All in all, Australian mining is looking up at last, with newer minerals like lithium coming along, and traditional gold mining coming back as world gold prices rise – in June, a joint venture with Amec Foster Wheeler and Civmec won a $298mn contract to build out the Gruyere Gold Project 200km east of Laverton in Western Australia. The scope of work includes the engineering, procurement and construction of the process plant and associated infrastructure. “All of
these contracts,” says Tallon, “apart from Amrun which is on a prime subcontract basis, are EPC jobs, and that alone puts us in a different space from where we were last time we talked.” Lithium, gold, even iron ore, is making a comeback, he adds. “Our regular clients in the iron ore space, like BHP Billiton and Rio Tinto, are doing feasibility studies and looking at large packages of work that will come on in the outlook period. We have a strong relationship with both clients so are hopeful we will be in the running for some of those packages.” Setting sail As we reported last year, Civmec acquired the Forgacs property and facilities at Tomago, Newcastle and the name of Forgacs, Australia’s largest privately owned shipbuilder.
businessreviewaustralia.com
89
CIVMEC
We don’t want to be a company that talks a lot: we prefer to let the market judge us by what we are delivering – Pat Tallon, CEO The successes we have been talking about above might look like plenty to be getting on with, but the potential for Civmec’s new subsidiary Forgacs Marine and Defence are huge as the Australian Defence Department pushes forward a series of new ship acquisition and maintenance programs. “Our motivation for the acquisition was actually twofold,” explains Tallon. “The Forgacs facilities in Newcastle are quite close to Sydney, with about 24 hectares of waterfront land, and there is a lot of infrastructure type work in Sydney at the moment. We’re going to use these facilities to develop on the east coast and we are currently expanding them. We have already built a precast concrete workshop which allows us to do prestressed items like bridge beams so we can target major infrastructure projects in
90
September 2017
New South Wales and Queensland.” The fabrication facility is being expanded too, new equipment is being brought in and the aim is to create a similar site to the Henderson yard. The other motivation behind the acquisition is to be able to bid for some of the upcoming work announced by the Navy in an $89 billion programme. Tallon continues: “The government is committed to several defence shipbuilding programmes, one being Pacific patrol vessels, one offshore patrol vessels (OPVs), and they also intend to order nine new frigates and 12 submarines.” The first package off the blocks is the OPV contract and if Tallon can’t secure that it will not be for want of capability or effort. Three ship design firms were shortlisted by the government to deliver 12 vessels ‘to undertake constabulary
ENERGY
missions and the OPV will be the primary ADF asset for maritime patrol and response duties’. In April 2016, the three contenders for the $3bn OPV project were named, Damen of the Netherlands, Fassmer of Germany and Lürssen of Germany. Civmec/Forgacs had discussions with all three. Forgacs ended up singing a memorandum of understanding (MOU) with ASC, the government owned shipbuilder, to bid in partnership for two of the three designers, Damen and Lürssen. The winner will start construction in 2018 with the first vessel delivered in 2021
– and as long as the design of either of those companies wins out, Forgacs, in partnership with ASC will be involved in constructing them, initially in South Australia and transitioning to their facilities at Henderson in Western Australia. This would take Civmec into a new league, though one for which it is thoroughly prepared. And as the government’s wish is for a continuous build and maintenance deal, it could bring in work for decades to come. Staying on track Both client and partner will be able to check daily progress of
businessreviewaustralia.com
91
CIVMEC
92
September 2017
ENERGY
their project and track every component in the process while the project management team will be able to track every man-hour spent via its proprietary Civtrac platform. “We can find out straight away if we are on schedule or behind and control our costs that way,” explains Tallon. “Nothing on the market was robust enough for us so we developed our own. It was a big factor in winning the confidence of the ship designers we are now working with. It does not guarantee that everything on your project goes well all the time but it gives you the power to know as soon as it does not and address it. If you can spot something slipping when you are at the early stages, you can generally catch it before it goes too far The government has also announced that all future shipbuilding for defence will either be completed around Adelaide, or at Henderson as the second major shipbuilding precinct. The entire Australian submarine fleet and half its surface ships are based at the Royal Australian Navy’s largest fleet base, Fleet Base West, also called HMAS Stirling, on the shores of Careening Bay on Garden Island, close to Perth, so the Henderson facility is perfectly situated to serve it being only 10km away. Accordingly, Civmec is going to invest $80mn in building a second facility alongside its existing Henderson yard that will allow it to build ships and carry out maintenance, under cover, 24/7, 365 days a year. “It’s state of the art, as good as any in the world,”
businessreviewaustralia.com
93
CIVMEC
Tallon declares, on the authority of the top global consultants. “The building will be around 205m long by 130m wide. That’s a similar area to the existing facilities but it will have significant height, up to 60m, so you will be able to get a ship and all its superstructure in there
94
September 2017
for repair and maintenance.” The land has already been secured and work started. A large sandblasting and painting facility is being added, but for many purposes the existing yard can support the shipbuilder with steelwork, plate cutting and the like – there
ENERGY
will be no capacity tight spots. A compact summary is difficult – Pat Tallon is a hands-on leader and he expects his team to be the same way. “I ask God for a few extra hours each day,” he quips when asked how that is possible given the way the business has grown.
“We don’t want to be a company that talks a lot: we prefer to let the market judge us by what we are delivering.”
businessreviewaustralia.com
95
ROOM SERVICE SKYE Hotel Suites is Crown Group’s first foray into the boutique luxury hotel business. Director Wayne Taranto tells Niki Waldegrave how the brand inspires and invigorates the soul
Written by: Niki Waldegrave Produced by: Justin Nelson
S K Y E H O T E L S U I T E S ( PA RT O F C R O W N G R O U P H O L D I N G S )
E
xpanding its high-end luxury living, Crown Group has launched its new five-star offering, SKYE Hotel Suites, in bustling western Sydney suburb, Parramatta. The flagship Arc development – which is mixed use, so one portion residential, the other, hotel – is an architectural masterpiece. Designed by Koichi Takada Architects and Allen Jack + Cottier in a 28-storey luxury residential and commercial development known as Parramatta’s ‘Vertical Village’, it boasts 519 apartments and 72 luxury studios, one and two-bedroom hotel-style suites. All are furnished with bespoke fittings and it also has a stateof-the-art fitness centre, resort-style pool and sauna, conference room facilities, alfresco dining and a retail piazza. The bar on level 26 will provide 270-degree views of Sydney’s skyline and the base of the building offers old world charm as, when excavating, they discovered the
98
September 2017
archaeological space of the Wheat Sheaf Hotel from the 1840s. As well as an underlying convict hut, wheelwright’s workshop and 1,400 artefacts ranging from plates, medicine bottles, old cutlery, bottles and glassware that were used in the actual pub, they discovered – and restored – the old cellar. Inspired, Director of Hotels and Suites, Wayne Taranto, persuaded Crown Group CEO, Iwan Sunito, to operate a traditionalbased restaurant within the complex, paying homage to its roost. Husk & Vine, a modern Australian-style menu, with Mediterranean and Middle Eastern influence, opened in June. “We’ve got the original planks of the hotel cellar which sits right next to the archaeological space,” explains Taranto. “The name came about with the husk being the core of the ingredient and referring to the old Wheat Sheaf Hotel, the correlation between wheat and husk. “And the Vine came about from
H O S P I TA L I T Y
businessreviewaustralia.com
99
S K Y E H O T E L S U I T E S ( PA RT O F C R O W N G R O U P H O L D I N G S )
H O S P I TA L I T Y
having a very boutique wine list that complimented the food that we’re offering in the menu.” Foodies flock in to sample delights from ambassador chef Stephen Seckold, formerly of Flying Fish, while locals and historians are seduced by the heritage centre that has been created on-site. “The plan is that over time, we’d like to showcase and glass canvas some of the artefacts,” he adds. “Not only in the heritage centre, but in our lobby and our common areas of the building.” The suburb, which was recently named the most liveable in NSW and is forecast to grow in population by 40% by 2031, has a strong community. So much so, that when building was in the final stages, an elderly local walked into the lobby, handed the concierge team a key and said, “you may need this”. Taranto, says concierge asked him what it’s for, and the man said he was handed this key through generations, and was aware it opened an old hotel in Parramatta,
Wayne Taranto, Director of Hotels and Suites
but didn’t know where it was. “He said, ‘when I heard that you’d found this hotel, I knew that this is it, the actual key that opened the entry to the door of that hotel’. He was right, it fits the original door of the Wheat Sheaf.” Taranto was poached from Accor, where he was general manager, by Crown Group CEO, Iwan Sunito, with the mandate to establish the hotel group, establish the brand, SKYE, and launch the first hotel. He’s been involved from concept to launch, and engaged influential Sydney
businessreviewaustralia.com
101
S K Y E H O T E L S U I T E S ( PA RT O F C R O W N G R O U P H O L D I N G S )
We achieved some amazing financial milestones and made the top 25 golf courses in the country – Wayne Taranto, Director of Hotels and Suites 102
September 2017
designer Nic Graham (behind from QT Hotels) and hospitality consultancy SITE, who interpreted the archaeological space to convert the old world into the new world. The complex has been heaving during its first few months, and Taranto aims to keep the momentum going. With a capacity of around 200, large rooms can be broken down into smaller ones. And a gigantic space hovers above the beautiful courtyard, which overlooks the pool deck – perfect for conferences and weddings. Primarily catering to the corporate market Monday to Thursday, weekend clientele is very much driven by leisure, events and activities happening in the local area. A stone’s throw from Olympic Park and ANZ Stadium, it’s a no brainer for those wanting something more luxurious than Airbnb when going to see upcoming concerts such as Ed Sheeran and Bruno Mars or sports matches such as the Bledisloe Cup. SKYE is also introducing and
H O S P I TA L I T Y
$100mn Annual revenue at Skye Hotel Suites
(part of Crown Group Holdings)
pioneering new technology, including intuitive tablets, which guests can use for free anywhere in the hotel, and the SkyeHotels app, which includes the ability to upload a mobile key, access the car park, hotel facilities and see what’s happening in the local area. “Some people like a traditional check-in,” he explains, “but others like that seamless experience
like with airlines where it’s all via kiosk, and you can download your boarding pass to your phone and go straight to the gate. “We’re applying that same principle to the hotel for those who are time poor and like to go straight to their room.” The plan is to add three more
businessreviewaustralia.com
103
S K Y E H O T E L S U I T E S ( PA RT O F C R O W N G R O U P H O L D I N G S )
Some people like a traditional check-in, but others like that seamless experience like with airlines where it’s all via kiosk, and you can download your boarding pass to your phone and go straight to the gate – Wayne Taranto
central locations by 2020 – 73 luxury apartments on Clarence Street, so a prime CBD location – and the third property, 95 apartments and a 500 feet auditorium in Green Square, Botany Road.
104
September 2017
“We’d like to become a global group,” adds Taranto. “We have two more great sites and moving forward, our focus will be the east coast of Australia, and then to branch out overseas
H O S P I TA L I T Y
and take SKYE Hotels global.” Taranto says he’s formed some “incredible friendships” in his 24-year hospitality career, and recalls his proudest achievement in 2010 when he was managing Rydges Capricorn Resort in Yeppoon, Central Queensland. “We achieved some amazing financial milestones and made the top 25 golf courses in the country,” he says. “We won a raft of awards and I eventually left because I received a promotion back here in Sydney.
“There was a five kilometre stretch of road leading in and out of the resort and when I left, they gave me a guard of honour the whole way to farewell me out of the resort for the last time. I’ll never forget that as long as I live.”
businessreviewaustralia.com
105
MEMBERS WORKING TOGETHER FOR THE BETTER OF THE FOOD INDUSTRY Written by: Ray Murphy
107
ALLERGEN BUREAU
The key is to success is members working together precompetitively for the betterment of the food industry The Allergen Bureau is a wonderful example of cooperation amongst competitors in the food industry, with national and multi-national food manufacturing and marketing companies, suppliers, importers, exporters, retailers and consumer groups sharing information on managing the risks of food allergens in industry in the interests of consumers. The Members of the Allergen Bureau include icons of the food industry in Australia and New Zealand – and globally - who have given the Allergen Bureau the strong foundation upon which it has built its reputation with business, food industry groups and government food authorities. However, food allergen issues have to be managed as an industry and it is very important for small to medium food manufacturing and retailing businesses to add their voice to the Allergen Bureau. Small to medium businesses and other large businesses in the food
108
September 2017
industry involved in manufacturing, supply or sales involving food allergens, are encouraged to join the Allergen Bureau. See our list of Full and Associate Members HERE. The Allergen Bureau Working Groups provide a collaborative approach to addressing allergen issues at the pre-competitive stage. Following on from the success of the Allergen Labelling Exemptions Working Group, several Working Groups have been identified to help take forward key areas of development. These Working Groups, and the responsible Allergen Bureau Director, are: • VITAL Phase 1 – Risk Review (Kirsten Grinter, Nestle Australia Ltd) • VITAL Phase 2 – Risk Communication (Labelling) (Julie Newlands, Unilever Australia Ltd) • VITAL Phase 3 – Certification (Robin Sherlock, DTS-FACTa) • Cross-contact risk review anomalies (Kirsten Grinter, Nestle Australia Ltd)
FOOD & BEVERAGE
Kirsten Grinter President
Kirsten has been involved with the Allergen Bureau since its inception in 2005. Kirsten’s experience with allergen issues from manufacturing, regulation and through to contact with consumer groups gives her a unique perspective with regard to the needs of the food industry and the allergic community. Kirsten considers that working in partnership for a whole of industry approach is the key to driving allergen management initiatives and key for the industry to remain a competitive and successful food industry globally. Her current role is as Regulatory and Scientific Affairs Manager Nestlé where she has responsibility for a team of people who together manage regulatory and scientific affairs across the vast Oceania Business.
Robin Sherlock
VP & Honorary Treasurer
Rob has a background in medical laboratory science and has more than 25 years’ experience in clinical microbiology and food science. She has had extensive experience in the area of food allergen analysis and brings a broad knowledge of the food industry – as well as the analytical issues – to her role as a Director. Her role within The Allergen Bureau includes collaborating with the VITAL Scientific Expert Panel to further ensure that key allergen management decisions within the Allergen Bureau are shaped and supported by the best available science. Rob is Technical Manager of FACTA (DTS Food Laboratories), a NATA accredited allergen testing facility which provides analysis, allergen management training, risk assessment tools and consultation around allergen control within food manufacturing, food service and associated supply industries.
businessreviewusa.com
109
ALLERGEN BUREAU
Dr. Tom Lewis Chief Executive
Tom was part of the initial industry working group that conceived the idea for a pre-competitive industry group to address food allergen management issues in Australia and New Zealand that was to become the Allergen Bureau. Tom was central to the establishment of Allergen Bureau, which called on his communication, project management and facilitation skills combined with his knowledge and understanding of the Australian food industry. Through his consultancy business, RDS Partners, Tom has provided executive services to the Allergen Bureau since it was first formed in 2005. Tom is drawn to roles that involve assisting organisations and industry sectors work together to imagine and achieve shared objectives – with a particular interest in working alongside regional food producers and manufacturers.
Georgina Christensen VITAL Coordinator
Georgina Christensen is the VITAL Coordinator for the Allergen Bureau and has been in this part-time role for nine years. This position was created to meet the increasing demand for information and support for the VITAL Program managed by the Allergen Bureau. In this role, Georgina answers enquiries from the local and international food industry about implementing the VITAL Program and develops support materials for the VITAL Program. Georgina has extensive experience in the food industry, including in food regulations and also in product development and quality assurance positions with multi-national food companies. Georgina is passionate about clear and consistent allergen labelling on food products to assist those with a food allergy to make informed food choices.
110
September 2017
FOOD & BEVERAGE
Allergen Bureau Working Groups are resourced and lead by Allergen Bureau member company volunteers and an Allergen Bureau director provides support to each Working Group. Participation on a Working Group links you in with a range of enthusiastic, diverse and passionate food industry people from across our broad stakeholder groups. Global influence and growth The growth in the incidence of food allergens is an international phenomena. The Allergen Bureau draws on and disseminates information from all over the world on food regulations and the latest scientific research on food allergens including emerging food allergens. While originally an organisation
representing the ANZ food industry, international promotion and acceptance of Allergen Bureau initiatives has seen a number of international organisations support us through membership. In addition, the VITAL Program, VITAL Online and the science of the VSEP has seen even greater international collaboration and utilisation of Allergen Bureau resources. VITAL Training Providers provide another link to the global food industry.
businessreviewusa.com
111