2018

Annual Group HSQE Report

This report covers the period from the 1st January 2018 to the 31st December 2018 and utilises data from ALE group business units, including contractor performance data where appropriate.

Prepared By: Gary Hewitt Global Health, Safety, Quality and Environmental Manager

31st December 2018Date:

Board of Directors All ALE Regional HSQE Managers/Advisors External Stakeholders

Distribution:

Executive Summary

Message from Group Managing Director

Highlights

Performance

Moving Forward

Key Areas

Global Recognition for Safety

Looking Forward

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Contents

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Annual HSQE Report

HEADLINE HSQE NEWS:• Over 5.8 million man hours – increase of 25%

over 2017

• Continued expansion of ISO certification in ALE’s branches globally

• Continued growth in the wind services sector

• ALE actively increased management internal assurance activities by over 400%

• Over 40% reduction in first aid events compared to 2017

• 25% reduction in near misses achieved through active risk management

• ALE developed and delivered the successful Supervisor Development Programme

Executive SummaryWelcome to ALE’s Annual HSQE Report, providing a summary of our HSQE performance throughout 2018. The business has continued to mature in 2018 and this has resulted in some very positive indicators which will enable us to build on a Smarter, Safer, Stronger 2019.

Lead

ing

Ind

icat

ors Lagging

Ind

icators

Management Audits : 124

95 : Near Misses

Internal Audits : 241

37 : First Aid

External Audits : 51

13 : Medical TreatmentsSite Inspections : 272

6 : Restricted Cases:

Training Events : 140

7 : Lost Time Events

HSQE Observations : 3,546

0 : Fatality

2018

“ALE’s safety standards have continued to be recognised with several globally acclaimed safety awards for safety practice, communication and risk management...”

“To continue to ensure our people are well protected, we have invested heavily in developing the skills of key personnel. This has continued to add value and ensure we remain ‘Best in Class’ and build on our clients’ confidence...”

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Annual HSQE Report

2018 has been a successful, yet challenging year for us. Like many others within the heavylifting industry, we have witnessed the major downturn in the oil and gas sector. Because of the size of our business and our track record of leading innovation and change, we have been quick to react and adapt.

By diversifying into renewables, we have expanded to a different client

group and plant base, invested in new equipment and upskilled our people in new areas – all whilst focusing on ALE as a projects and solutions-led company.

We have seen a 300% increase in the renewables sector, which represents a real success story for us; we have grown a reputation in renewables as one of the forerunners to supply the full TCI package. Our acquisitions and joint ventures have supported this by allowing us to secure contracts in local wind markets and expand with enhanced services.

We have continued to deliver innovative solutions throughout other sectors, from completing unique bridge installations in Australia and Argentina, to managing high-profile turnkey transportations of refinery pieces in Saudi Arabia, space satellites in Argentina and a polar research vessel in the UK. We have also pushed the engineering boundaries to break national and world records, and developed bespoke systems.

To continue to ensure our people are well protected, we have invested

heavily in developing the skills of key personnel. This has continued to add value and ensure we remain ‘Best in Class’ and build on our clients’ confidence in our risk management and project delivery.

These are just some of the accomplishments that have been achieved over the last 12 months with the hard work of the ALE Group and the continued determination to protect our people through our enhanced learning and development functions. As we move into 2019 and beyond, our key focus will be on ALE’s business assurance to continue to maintain focus to deliver the consistent high standards expected globally.

Group Managing Director Message

HighlightsAs ALE recognises the crucial role that Supervisors play in ensuring that projects are carried out safely, on time, within budget and to a high standard, our in-house Supervisor Development Programme was rolled out across multiple countries in 2018. Consisting of workshops and practical sessions, the programme has now benefited a range of Supervisors around the globe, with courses taking place in Europe, Africa, the Middle East, the Americas, and more scheduled in South East Asia and Australia.

ALE’s safety standards have continued to be recognised with several globally acclaimed awards for safety practice, communication and risk management with the European Association of Abnormal Road Transport and Mobile Cranes (ESTA), awarding ALE’s Route Survey Tool for its safety and innovation. The Specialised Carriers and Rigging Association (SC&RA) also awarded ALE with the Haulage Job of The Year Award for their landmark transportation project, where six 22MW power plant engines were transported from Italy to the Santa Ines Refinery Development in the state of Barinas, Venezuela.

As the distance was so vast, covering almost 1,000 combined land and nautical river miles, the project was split into three phases over three years with many routing and logistical challenges.

ALE continued to deliver on their environmental commitments throughout the year. 2018 saw no impact on the environmental aspects of the organisation and they were able to continually improve to ensure our global impact is minimised.

ALE has continued to innovate, breaking records and providing world-leading engineering solutions. ALE’s heightening of the prototype of one of the world’s highest wind towers was achieved with an innovative methodology that limited the use of cranes and used low-height gantries to jack-up the whole structure. This self-erecting tower system breaks all logistical barriers to install towers at any hub height. This methodology made it feasible to continue raising the tower sections even if weather conditions became hostile, as the lateral guidelines along the gantry frames constrain the lateral movements and keep the tower vertical.

Another milestone was ALE’s installation of the world’s first self-installing telescopic offshore wind turbine, a challenging project that required a bespoke solution. ALE’s R&D department and ESTEYCO S.A. developed a unique horizontal guidance system with Wi-Fi to enable the manoeuvres to be performed with wireless equipment and controlled from a boat located away from the tower, reducing risk and increasing safety on the project.

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Annual HSQE Report

Performance Moving Forward

Key Areas:

Analysing the previous five-years of successful strategies and lessons learned, there is a clear downward trend in the severity of incidents and an overall reduction of over 0.4 per 200,000 man hours in lost time incidents is evident.

ALE’s targets and objectives have been consolidated to look ahead to the next five years. We regularly review HSQE performance across our many branches and operations. This helps to set the strategic vision of the business and certifies that ALE continues to be consistent across all aspects of its operations.

ALE will continue to be devoted to reducing injury events which are as always, a key area of vital importance. ALE will focus on the wide variety of business activities from expanding ISO certification in new areas and driving innovation in the business, through to increasing business assurance activities from senior management to operational staff.

ALE’s focus is to continue this downward trend as we aim for zero harmful events and will continue with our risk management strategies, management and Supervisor leadership, and robust reporting methodologies.

• Increase activities to develop the quality of the supervisory function

• Numerous corporate and social activities to further integrate ALE into local communities

• Focus on internal business assurance activities to ensure customer satisfaction across ALE’s operating sphere

• Continued drive to reduce harm to ALE’s key assets – it’s people

• ALE’s inherent focus to drive innovation to reduce risk throughout its equipment and solutions, as well as implementing smarter processes

Lead the industry in attaining global certification in ISO: 45001

Occupational health initiatives

Increased environmental awareness activities

TRIFR1.60

1.20

0.80

0.40

0

2014 2015 2016 2017 2018

LTI Rolling Average0.70

0.60

0.50

0.40

0.30

0.20

0.10

0.0

2014 2015 2016 2017 2018

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Annual HSQE Report

ALE’s safety efforts were recognised and awarded with a ‘Safety Excellence’ award whilst executing the relocation and removal of two cranes at a manufacturing plant in the UK. To ensure safety and stability during this operation, which was taking place amongst other live plant operations, ALE utilised their in-house engineering to carry out a comprehensive study to determine stability and the centre of gravity. By utilised a lifting system with a mechanical locking system, as opposed to a hydraulic system, they provided a safer methodology and reduced risk. The client was so impressed by the crew’s safe mentality and professionalism shown throughout that they were presented the team with the award.

ALE was selected as the Best Contractor Company who demonstrated the best safety performance whilst working at the Port of Tanjung Pelepas in Johor, Malaysia.

ALE was contracted to perform the relocation and shuffling works of nine port cranes, weighing 1,850t each. When delivering each crane, ALE always made safety the top priority. Every crane had to be transported through the wharf and lowered down into its new position. The project was completed four days ahead of the expected schedule provided by the client.

ALE was recognised with the ‘Excellence in Safety Performance’ award for the work performed for the Sakhalin-1 project on Sakhalin Island, Russia. The three-year project involved the offloading, transportation and installation of process and drilling modules, with weights of up to nearly 3,000t.

ALE’s overall contribution was recognised with a plaque for ALE’s “Commitment to outstanding safety, security, health, environmental and execution excellence toward completion of a world-class project.”

ALE won an award for outstanding safety awareness, after impressing a client with their communication and time management whilst performing three load-outs in South Korea as part of the Johan Sverdrup project.

Global Recognition for Safety2018 has been another successful year for ALE with awards for innovation and safety. Utilising smart technology to develop the world’s first Route Survey Tool and winning two awards for innovation in its field. We also received client recognition for our safety practices, communication and risk management on specific projects.

Looking AheadThe review details how, despite the challenging year in the industry, safety and risk reduction has not been compromised and remained the company focus. The overall reduction of lost time incidents and downward trend in harmful events is a positive story and demonstrates our ability to adapt and take on risk management strategies, and robust reporting methodologies. The multiple accolades from clients and industry bodies also showcases how we aligned innovation and safety together to drive the business forward.

“ALE also received client recognition for their safety practices, communication and risk management on specific projects.”

There were numerous contractors working on the project and the client was particularly impressed with ALE’s levels of communication. The client praised how we had managed the tight schedule and site deadlines without compromising on safety. ALE was awarded recognition for its critical safety performance

whilst demonstrating excellent standards and capabilities during the heavy transportation and lifting of a radar satellite, SAOCOM 1A and supporting components in Argentina. Using their long-standing experience, ALE worked with the most stringent risk management and quality control requirements throughout.

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