BANNER SAVINGS - Tomago

1 SPRING EDITION 2016 1 SPRING EDITION 2016 MOBILITY TAKING LEAPS AND BOUNDS GREEN BANNER SAVINGSHEADS UP FORCHARITY2 SPRING EDITION 2016 CEO message 3 Green BANNER SAVINGS make their mark 4 Heads up for charity 5 FEATURE STORY 6-8 MOBILITY TAKING LEAPS AND BOUNDSFun time had by all 9 Better quality and more of it! 10 Ingot chain automation leading the way 11 Beating the winter blues 12 Health & Safety Committee training day a great success 12 Celebrating years of service 13 Jeepers creepers, where d you get those peepers? 13 Maintenance revolution 14A brave new SAP world 15 Bash For Cash always a winner 16 Did you know? 1760 seconds Nat Godwin 17 Six-year safety milestone 18 Tomago s giving back 19 Welcome to Tomago s new starters 19 Light aircraft champions 19 Tomago s key performance indicators 20 CONTENTSSPRING EDITION 2016 3 MATT HOWELL CHIEF EXECUTIVE OFFICERWELCOME TO THE SPRING EDITION OF Tomago NEWS, FEATURING SOME GREAT ARTICLES ON A NUMBER OF INNOVATIONS, SUCCESS STORIES AND SAFETY the first half of the year behind us we are well on track for another very solid set of results.

2 At the time of writing, we achieved a new quality benchmark, with average iron in metal falling to 803 ppm and potline 3 at 758! This is new ground for TAC and certainly doesn t happen by fluke. It is the result of persistent focus and attention to detail by all of our people right through the production chain. It is also being noticed in the marketplace with complimentary feedback coming from our owners and customers. In a global commodities environment of depressed prices and uncertain futures, we are re-establishing our reputation as a reliable supplier of choice, one that can be counted on to performance has been tremendous, with the deficit in the first quarter of the year fully recovered by the end of June and now well on track to finish the year ahead of budget.

3 Even better, our controllable cost performance has been commendable, and we report on this in the article featuring Luke Rankovich and the success we are having with the weekly $10k banked cost reductions. Innovative ideas from all departments have resulted in more than $1 million in SAVINGS across the business, achieving the annual SAVINGS target in almost half the time anticipated. This could not come at a better time, as the Australian dollar aluminium price is still at historical lows and may not recover for some time. We need to make our own luck and create our own future nobody else will do this for will also read about our recent mobility expo where our most creative minds have been exploiting emerging technologies to make it easier and more efficient to do the work we need to do anything from mobile approvals, tablet computing to allow mobile access to control room functions and smart WiFi devices that can monitor equipment condition and performance, just to name a few.

4 We have been very transparent that the future for TAC involves more automation and changing the way we do things. The advantage we have is by working together and implementing changes in a planned fashion, we do not have to resort to the sort of mass retrenchments that many other manufacturing and resources businesses have been unable to avoid. It is essential that we get the best ideas on the table and that means everyone has a role to the best example in recent times of people working together to deliver major change was the successful SAP upgrade. I have experienced a number enterprise business systems upgrades in my career, but this was a textbook example of how to get it right. Hats off to the entire project team for more than eight months of planning and long days and nights executing a major upgrade in such a seamless fashion.

5 The new cloud-based system will support our innovation package as we transform the business to be the best it can possibly be. If recent performances are anything to go by, we have a very bright future indeedEnjoy this edition of TAC news and to all our team and the people who support them, my thanks for your considerable efforts. Best regards, Matt Do you have an interesting story to tell? If you have a suggestion for TAC News please contact Toni Lawson at IS ESSENTIAL THAT WE GET THE BEST IDEAS ON THE TABLE AND THAT MEANS EVERYONE HAS A ROLE TO SPRING EDITION 2016 Innovative ideas from EMPLOYEES have resulted in almost $1 million in SAVINGS across the business, achieving the annual SAVINGS target in almost half the time Accountant Luke Rankovich said the SAVINGS had been achieved in all areas, thanks to some great innovative ideas and reviews of processes and costs that had been undertaken by teams in each department.

6 All of our teams have made a real effort to look at the way things had traditionally been done in their departments and to think about how they could be done differently to create SAVINGS of real value, Luke said. These improvements vary from team to team, but each of them demonstrate how new thinking and a fresh approach to things can make a huge difference in outgoings as well as in efficiency and outcomes. Every week we see teams reporting on SAVINGS through our $10K Green BANNER initiative, which is our way of communicating new processes and SAVINGS across the plant. Recent Green Banners included a new approach to ingot mould cleaning, which has saved the company $60k annually. In the past, Cast Products Operations had always used contractors to clean the ingot moulds a process that was labour intensive, largely inefficient and carried the potential to damage equipment.

7 The team recently trialled an automated cleaning machine that not only eliminated the need for contractors, but also required very little operator input. Additionally, the results indicated the new cleaning process produced a higher-quality $64,000 will be saved annually in Liquid Metal Operations (LMO), where costs are being reduced thanks to an efficiency improvement in the repairs of potline expansion joints. Foot and vehicle traffic over the tending aisles of the potlines cause damage to the expansion joints over time, with these eventually becoming a safety hazard. During recent repairs it became apparent that money could be saved by reducing the contractor involvement and passing the management to the LMO supervisor. At the same time, the contractor also came up with an idea that reduced equipment hire together, these two SAVINGS added up to about $500 per repair and with 128 repairs remaining, the total cost saving is $64,000.

8 We are so close to our target we re only half way in and we ve already saved just under what we set out to do, Luke said. It s a great achievement for everyone. Green BANNER SAVINGS make their markIT S A GREAT ACHIEVEMENT FOR mould cleaning machine in Cast ProductsSPRING EDITION 2016 5It s a no-brainer at Tomago Aluminium when it comes to supporting the Mark Hughes love Beanie Day and once again we outdid ourselves by raising over $3000 to fund research into brain cancer. Not only was it a great chance to raise awareness for an important cause, it also gave everyone an opportunity to flaunt the Mates Looking After Mates beanies given to them in their Men s Winter Health Care was raised at a morning tea, which was hosted at the fire station, as well as through the sale of 100 Mark Hughes Foundation beanies and tins resting at the front gate.

9 $1000 was donated by Tomago Aluminium big congratulations to Danielle Harman who won a $50 gift card for her skill in the Pin Stick the Beanie on Mark Hughes competition. Peter Petryk was also lucky on the day, winning a goodies hamper for correctly guessing the Mark Hughes stats 161 First Grade Games for the Newcastle Knights from 1997-2005. Craig Jones bagged a home safety kit for nailing Mark s nickname Boozy Assistant Nicki Harvey said a great day was had by all. Everyone had lots of fun, she said. This is a really great local charity, doing really good things. It was a cold morning so everyone enjoyed the chance to have a catch up, a hot cuppa and some sweets. Thank you so much to everyone for their support and a big thanks to Kristy Gately and the Security guys for helping organise the event.

10 Heads up for charityMark Westbury and Andrew ThurlowPeter Horsburgh and Brodie FairhallDean Howard, Neil Lindus and Brett TimneyAndrew Thurlow and Kristy GatelyCharlie SaundersA two-week Mobility Expo held at Tomago Aluminium last month showcased the enormous breadth and depth of innovation being adopted across the plant as the business leverages its use of the plant, staff are using commonly available IoT electronics to build our own data sources to reduce unplanned failures and, where possible, eliminate the need for manual said the Expo received extremely positive feedback from the Tomago Aluminium board members and management team who SPRING EDITION 2016 MOBILITY The feedback we had was so positive, we decided to leave the Expo open for two weeks, he said.