apn outdoor group limited | abn 57 155 848 589 2016...

2016 Sustainability ReportAPN Outdoor Group Limited | ABN 57 155 848 589

| APN Outdoor Group Limited | Sustainability Report 2016

CONTENTS

APN Outdoor’s approach to sustainability – CEO’s statement

3

Part I: General standard disclosures

4ESG Materiality Assessment 4

Our operations 6

Our contribution to our industry 10

Our key stakeholders 12

Our values 14

Part II: Specific standard disclosures

15Economic impacts and compliance 15

Environmental management 17

Our people 19

Our suppliers 22

Appendix 1 – Sustainability data

23

Appendix 2 – Additional information

25GRI core content index 25

APN Outdoor entities 26

Further information 26

THE CENTRE FOR ATTENTION

Page 1

APN Outdoor 2016 Sustainability Report

Back to contents page


ELITE SCREENS, ALL TRAFFIC ENTRY, SYDNEY AIRPORT, SYDNEY



Page 3

APN Outdoor’s approach to sustainability – CEO’s statement

APN Outdoor is committed to transparency and creating sustainable long term value for its shareholders. Through innovation and continuous improvement it is our vision to be the leading and most progressive media organisation in Australia.

I am pleased to present the 2016 Sustainability Report for APN Outdoor.

This report provides an overview of APN Outdoor's performance in the wider context of sustainability during the 2016 calendar year.

The preparation of this report is guided by the Global Reporting Initiative’s (GRI) G4 Sustainability Reporting Guidelines. The GRI Sustainability Reporting Guidelines have been adopted by the Company to measure and understand APN Outdoor’s most critical impacts and opportunities as it relates to the environment, society and the economy.

This report has been prepared in accordance with the GRI’s ‘Core’ reporting option and is divided into two sections: Part I includes items reported under the GRI’s General Standard Disclosure recommendations; and Part II includes APN Outdoor’s Specific Standard Disclosures on aspects that are determined to be material to the Company.

Attracting and retaining the most talented and skilled employees, in addition to employee health and safety, are our main priorities. To support retention and talent development the Company staff are placed on leadership and technical training programmes throughout the year.

To ensure the safety of our people, APN Outdoor has developed a Work Health and Safety Injury Management System that complies with the requirements of AS/NZS 4801:2001.

APN Outdoor has also identified other potential exposures to Environmental Social and Governance (ESG) risks and opportunities that are deemed either of medium or low material importance to the Company and its stakeholders. APN Outdoor’s approach to addressing those risks and opportunities is further analysed throughout this report.

APN Outdoor is satisfied that it remains in a position to create sustainable, long term value for shareholders in context of its ESG risks and opportunities and ensure that its activities support the continued prosperity of all Company stakeholders.

Yours sincerely,

Richard Herring Chief Executive Officer APN Outdoor



ESG Materiality Assessment In order to define the content of the 2016 Sustainability Report, APN Outdoor has followed the GRI’s Reporting Principles for Defining Report Content.

In accordance with the GRI G4 Guidelines, APN Outdoor has identified the material issues or ‘aspects’ that reflect the significant economic, environmental and social impacts of its business

to various stakeholders. APN Outdoor has proceeded to identify and prioritise those aspects that are most important to the organisation and then validate them. As a result, APN Outdoor has shortlisted aspects that are regarded to be significant to its key stakeholders and are therefore disclosed in this report.

The identified key material aspects and their boundaries are presented in the table below.

Part I: General standard disclosures

MATERIAL ISSUE GRI MATERIAL ASPECT BOUNDARY 1 SECTION OF THE REPORT

Employee Retention and Loss of Talent

Employment, Labour/Management Relations, Training and Education, Labour Practices, Grievance Mechanisms, Equal Remuneration for Women and Men and Non-Discrimination

Internal (Employees) Our People

Employee Health and Safety

Occupational Health and Safety

Internal (Employees) Our People

Supply Chain Management

Supplier Environmental Assessment and Supplier Assessment for Labour Practices

External and Internal (Suppliers and Impacts on the Company)

Our Suppliers

Legal Non-Compliance Anti-Corruption, Anti-Competitive Behaviour and Compliance

Internal (Impacts on the Company and Employees)

Economic Impacts and Compliance

Environmental Impacts Products and Services, Compliance and Grievance Mechanisms

External and Internal (Community and Impacts on the Company)

Environmental Management

Economic Impacts Indirect Economic Impacts

External and Internal (Communities, Suppliers, Employees and Impacts on the Company)

Economic Impacts and Compliance

Social Impact of the Business

Grievance Mechanisms for Impacts on Society and Marketing Communication

External (Communities) Economic Impacts and Compliance

1 'Boundary' refers to the description of where impacts occur for each material aspect. In setting the Aspect Boundaries, APN Outdoor has considered impacts within and outside of the organisation.

These are aspects of high materiality to APN Outdoor and its stakeholders. These are aspects of medium materiality to APN Outdoor and its stakeholders.These are aspects of low materiality to APN Outdoor and its stakeholders.



Page 5

Employee retention and loss of talent is a risk that companies in the outdoor media segment face. This is a high priority for APN Outdoor, which strives to recruit and retain the highest calibre talent. The Company’s efforts are highlighted in the ‘Our People’ section of this report.

At APN Outdoor, employee health and safety is of critical importance. The Company has developed its own Work Health and Safety (WH&S) Injury Management System to ensure the health and safety of everyone in the APN Outdoor team, our sub-contractors and our visitors. The Company’s WH&S Committee meets quarterly to review workplace health and safety matters and the Board is provided with regular reports on WH&S matters. APN Outdoor has a dedicated WH&S manager and the membership of the WH&S committee includes the CEO, COO and CFO. Further details around WH&S matters are disclosed in the ‘Our People’ section of this report.

The Company has both local and international supply chains. APN Outdoor actively tries to mitigate any potential risks that may relate to the environmental and social practices of our suppliers.

Further information around the Company’s efforts to mitigate risks in its supply chain can be found in the ‘Our Suppliers’ section of this report.

Legal non-compliance is a risk most organisations face. APN Outdoor has a zero tolerance approach to unethical business practices and this is reflected in the Code of Conduct issued to all staff on induction and included on our intranet. We follow the standards as guided by the Advertising Standard Bureau (ASB) and the Australasian Association of National Advertisers (AANA). Further information about the Company’s efforts to ensure compliance and mitigation of any relevant risks is provided in the ‘Economic Impacts and Compliance’ section of this report.

APN Outdoor has also identified topics with low material impacts to the Company and its stakeholders including: the economic impacts of the Company, which relate to infrastructure investments and developments; social impacts of the business, which is a low risk area for APN Outdoor’s operations; and data protection risks to which APN Outdoor has minimal exposure.



Our operationsAPN Outdoor Group Limited is a publicly listed company on the Australian Securities Exchange2.

Our locationsThe Company operates in Sydney, Melbourne, Brisbane, Adelaide, Perth and Auckland and its headquarters are located in Pyrmont, Sydney.

APN Outdoor also owns a printing facility, GSP Print, which is located in Sydney.

Queensland

South Australia

Western Australia

Victoria

ACT

New Zealand

New South Wales

Billboards

KEY:

RailTransit Airport

2 A list of all entities included in the organisation’s consolidated financial statements is provided in Table 2 of the Appendix.

Summary of APN Outdoor’s key site locations

Part I: General standard disclosures (continued)



Page 7

PRODUCT HIGHLIGHTS FY16 REVENUE

Roadside Billboards › Metro focus › Broad range including large and small format options › Focus on high quality displays

$160 million

Transit › Variety of differentiated panel options › Expertise in complex logistic operations › Internal and external rights › New mobile customer offering

$100 million

Airport › Highly desirable advertiser location › Multiple consumer contact points › Variety of digital and classic opportunities › External and internal rights

$44 million

Rail › Unique commuter audience › Long commuter dwell time › High demand network in Sydney, Melbourne, Brisbane, Adelaide and Perth

› Newly launched digital platform

$27 million

ELITE SCREENS, PACIFIC HIGHWAY, SYDNEY

AIRPORT, DIGITAL ARRIVALS, T1 SYDNEY AIRPORT, SYDNEY RAIL, XTRACKTV, TOWN HALL, SYDNEY

TRANSIT, FULL BACK, SYDNEY

Our products and services



The Company is active in outdoor advertising and its portfolio includes Digital and Classic Billboards, Transit, Airports and Rail. The Company’s aim is to achieve and maintain a leadership position in all of these categories:

BillboardsThis includes both classic and digital offerings. Billboards span major arterial roads, motorways and local communities in metro markets, reaching the increasing number of consumers that travel on the road. APN Outdoor’s billboards are recognised for their premium quality, strategic locations and excellent presentation of advertising. Of equal importance to advertisers is the national balance to ensure equal audience penetration across the Australian and New Zealand markets.

Digital billboards are primarily high definition LED screens, enabling the advertiser’s message to be transmitted remotely. Known as Elite Screens, these sites operate 24/7 and offer clients unmatched impact and exposure.

While much of the attention is on digital billboards, our quality classic billboards have performed credibly and have exhibited year-on-year revenue growth.

TransitAPN Outdoor holds contracts providing bus and tram advertising to the majority of fleet operators around Australia and operates in all capital cities. This places the Company in a strong leadership position within the Australian transit space. This category includes panels on the outside and inside of trams and buses.


TRANSIT, MEGASIDE, SYDNEY



Page 9

RailAPN Outdoor holds contracts with most of the major rail operators in Australia and New Zealand. APN Outdoor rail advertising spans railway stations across Sydney, Melbourne, Brisbane and Perth, with more than 880 panels in our rail portfolio. Not only do these panels reach the unique rail commuter audience but some panels are also positioned on roadside locations. XTrackTV, a digital billboard format with live video and audio transmission, successfully launched in October 2014 and consists of high quality LED screens positioned across the track and platforms.

AirportsAPN Outdoor holds a leadership position with a comprehensive trans-tasman airport advertising portfolio that includes contracts for Sydney, Perth, Canberra, Auckland and Christchurch airports. High profile static sites and digital screens dominate these precincts. The panels and screens are located outside and inside of airport terminals.

Our customers are both media agencies and direct clients. The majority of APN Outdoor’s revenue is not underpinned by contracts with advertisers and therefore performance is heavily reliant on APN Outdoor’s continuing relationships with media agencies.

We work proactively with our clients bringing them new ideas and opportunities facilitated through our digital signage.

Our workforceAs at 31 December 2016, APN Outdoor has 239 permanent and 19 casual employees working across Australia and New Zealand.

Installation, repairs and maintenance activities are undertaken by contractors who are independent to the Company. These contractors adhere to the policies and procedures of APN Outdoor and their processes are audited annually. No employees are covered by collective bargaining agreements.

A breakdown of the Company’s workforce by gender, age and location can be found in Tables G4-10(a) (b) and (c) of the ‘Sustainability Data’ section of this report.



Our contribution to our industry

APN Outdoor is committed to driving the outdoor advertising industry forward through consistently investing in research, innovation and cutting-edge digital developments.

To support its strong contribution to the industry, APN Outdoor has established strategic alliances with a number of industry bodies, media partners and community organisations.

Some of APN Outdoor’s industry partnerships include:

Outdoor Media Association (OMA)The Outdoor Media Association, which is the national industry body, is vital to the growth of outdoor advertising in Australia. It represents the majority of the country’s outdoor advertising businesses, as well as creative material production facilities and media display asset owners.

As one of the largest members of the OMA, APN Outdoor assumes a leading role in the association. Our Chief Executive Officer, Richard Herring, was Chairman of the OMA from 2011 to mid-2014 and was responsible for leading the Board in determining and developing a strategy for the outdoor industry. As at the date of this report Richard Herring remains a Director of the OMA.

Outdoor Media Association of New Zealand (OMANZ) APN Outdoor is a member of the OMANZ, a not for-profit professional industry body that represents New Zealand’s major outdoor media display companies.

Measure of Outdoor Visibility and Exposure (MOVE) APN Outdoor is a founding member and active supporter of MOVE. Launched in 2010, MOVE is Australia’s first and only audience measurement system for Outdoor advertising.

Media Federation of Australia (MFA) and Next Generation (ngen) The Media Federation of Australia (MFA) is the peak body representing media communication companies. Since APN Outdoor’s inception in 2004 the Company has been a keen supporter of the MFA, the Next Generation programme (ngen) for professionals with less than five years’ experience, and the MFA 5+ program for the more experienced.

Media partnerships To celebrate all things happening outdoors the Company sponsors organisations that celebrate this ethos with us. Over the last ten years APN Outdoor’s partnerships have included:

› Australian Olympic Committee › Sydney Festival › Sydney Opera House › St. George Open Air Cinema › The Australian Ballet › The City of Sydney › The NSW Waratahs › Emirates Australian Open of Golf › The PGA of Australia › Opera Australia




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Case study: APN Outdoor supports the Australian Olympic Team

In January 2016, APN Outdoor became the Official Outdoor Media Partner of the Australian Olympic Team and has signed on as a Team Partner until the Tokyo Olympic Games in 2020. The partnership marks the first time the Australian Olympic Team has joined forces with an outdoor media provider and is indicative of the growth and anticipated trajectory of the medium.

With Australians spending more time out and about, outdoor media provides a globally consumed platform that compliments the universal appeal of the Olympic Games as well as the platforms provided by existing media partners.

Embarking on a long term partnership, APN Outdoor and the Australian Olympic Committee had the joint vision of sharing the Olympic Spirit with the Australian community in a way they had not previously been explored.

Engaging APN Outdoor as a media partner allowed the Australian Olympic Team to communicate with Australians when they were out and about, on the road and in their local communities. The ability to showcase and congratulate Australian athletes, from their moment of selection to their results straight from Rio, and share this in near real time with the fans and supporters back in Australia, added an exciting element to the 2016 Australian Olympic campaign.

APN Outdoor’s prime locations, innovative digital screen technology and creative marketing campaigns meant all Australians could celebrate with their Olympic Team.

© Getty Images



Our key stakeholders

Stakeholder engagement is used to support the Board and senior management in identifying and managing APN Outdoor’s economic, environmental and social impacts, risks, and opportunities.

APN Outdoor has identified and regularly engages with the following stakeholder groups:

InvestorsAPN Outdoor’s approach to investor relations is led by the CEO and CFO and supported by an external investor relations consultancy.

As part of an overall policy of open disclosure, the Company ensures that all material communications are made available to the market. The Company has a Shareholder Communication Policy as well as a Disclosure Policy, both available on the Corporate Governance section of the APN Outdoor website.

EmployeesEmployee retention and loss of talent is a risk that companies in the outdoor media segment face. This is a high priority for APN Outdoor, which strives to recruit and retain the highest calibre talent.

The Company undertakes a team “health check” on an annual basis using online survey tools. All staff across the business are given the opportunity to provide feedback as part of this process.

In addition, the business runs HR policy refreshers on a bi-annual basis coordinated by an external HR firm. All staff must attend and this is an opportunity for staff to raise any concerns or queries they have around the Company’s various Human Resources policies.

The Company also runs a formal performance review and goal setting process. During these sessions employees have the opportunity to provide feedback to their managers with respect to the culture of the organisation.

The senior leadership team have ‘People’ as a key performance indicator for their short term incentive (annual bonus) scheme. Performance is assessed against criteria including staff engagement and performance management.

LandlordsAPN Outdoor relies on having access to a range of outdoor advertising sites to maximise network reach. APN Outdoor typically gains access to its sites through short and long term leases. We have a direct and meaningful relationship with our landlords, including ensuring whether arrangements are on commercial terms that are acceptable to both the Company and the landlord.

Advertising agenciesThe majority of APN Outdoor’s revenue is not underpinned by contracts with advertisers. Performance is heavily reliant on APN Outdoor’s relationships with media agencies.

The Company works proactively with agencies bringing them new ideas and opportunities facilitated through its digital signage.

Government and local councilsState and local regulations have a significant impact on the outdoor advertising industry.

When it comes to safety of roadside signage and overarching planning systems, APN Outdoor works closely with state and local government regulators to promote safe, high-quality signage and advertising, particularly in the context of new and emerging technologies.

Installation contractorsAPN Outdoor works closely with its contractors to ensure accountability against the same policies applicable to our business.

APN Outdoor has a zero tolerance approach to unethical business practices and this is reflected in the Code of Conduct issued to all staff on induction and that remains accessible on the Company intranet.




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Our valuesOur vision is to be the leading media organisation in Australia. The values that guide our operations are presented below.

The Board of Directors, as the Company’s highest governance body, ensures that the above values are reflected in APN Outdoor’s operations.

APN Outdoor has developed a Code of Conduct under which the Company commits to operating its business honestly and fairly, and in a manner that strictly complies with all applicable laws and regulations.

Receptiveto change

WHS focus Customerfocused

Results driven Integrity Innovative Opencommunication

Global teamplayer

MISSIONCommitted to driving the Outdoor industry forward and is constantly investing in research, innovation

and cutting-edge digital developments to produce improved results for its advertisers.

To be the most progressive leadersin Outdoor advertising acrossAustralia and New Zealand.

Receptiveto change



Global teamplayer




Receptiveto change



Global teamplayer




Receptiveto change



Global teamplayer







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Economic impacts and compliance Infrastructure investments – CatchAPN Outdoor has developed an innovative new offering for in-transit bus users, an investment that extends beyond the Company’s operations.

Developed by APN Outdoor in 2016, CATCH allows in-transit bus users to interact with rich content and personalised offers from our partners based on FREE WiFi. Users are able to access news, sports, weather, offers & entertainment through their mobile phones or tablet. Through CATCH, the Company provides bus commuters with free internet access via sponsored WiFi. There is no bandwidth, streaming or data constraints for viewing of video content for CATCH’s users.

APN Outdoor worked closely with several of its partners, including Lifestyle by Foxtel, SKY NEWS, SNACKABLETV, Save & Win Offers, and State Transit, to deliver the best entertainment content for its users.

Data protectionData protection and confidentiality is a key priority of APN Outdoor. The Company has a public Privacy Policy to help mitigate risks associated with privacy and data security issues.

APN Outdoor relies on significant IT infrastructure and systems to operate the Group’s business. Core technologies and other systems and operations could be exposed to damage or interruption from system failures, computer viruses, cyber-attack, power or telecommunication providers’ failure, fire, natural disasters, terrorist acts, war or human error. These events may cause one or more of the core technologies to become unavailable.

Additionally APN Outdoor will use technologies which involve the collection of individual personal information. Through the ordinary course of its business, the Group may be exposed to cyber-attacks.

There is a risk that, if a cyber-attack is successful, any data security breaches or the Group’s inadvertent failure to protect confidential information could result in a loss of information integrity, breaches of the Group’s obligations under applicable laws or client agreements, system outages and the hacking of the Group’s digital assets and/or systems, each of which may potentially have a material adverse impact on the

Group’s reputation and financial performance.

APN Outdoor has a disaster recovery plan and tests back up procedures to ensure minimal business interruption in the event a technology failure was to occur.

The Company conducts external reviews of system security, data protection and IT infrastructure and acts on the recommendations put forward following the external review.

A review of Cyber risks was conducted in 2016 and the issue will continue to be reviewed.

Content regulationThe content of advertisements is regulated at a Federal level through a combination of industry self-regulation schemes and Federal laws governing misleading and deceptive conduct. Although the content regimes apply to the displaying advertiser rather than APN Outdoor, the Company will generally conduct an internal review of an advertisement prior to being displayed to ensure compliance with the industry codes. APN Outdoor will also seek recommendations from the Outdoor Media Association.

Compliance with laws and regulations is of paramount importance for APN Outdoor, which strives to operate in an ethical and transparent way. In 2016, all employees participated in training programs focussed on the Competition and Consumer Act 2010 and HR compliance. This training covers all staff and is followed up by team discussions around the issues which arise.

With respect to this topic, the senior management team (Board, Key Leadership Team and General Managers) all attend training facilitated by Gilbert and Tobin, the Company’s legal advisors on an annual basis.

Recorded incidentsDuring the reporting period there were no incidents of corruption, non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship reported and no legal actions for anti-competitive behaviour, anti-trust and monopoly practices filed.

The Company did not receive any fines for non-compliance with laws and regulations.

Part II: Specific standard disclosures



Local communitiesAPN Outdoor respects the local communities in which it operates. When complaints arise the Company strives to deal with them in an efficient and respectful manner.

Certain media assets developed and operated by APN Outdoor such as roadside billboards, are subject to State or Local Government town planning controls and consents. Prior to granting any consents, the relevant State Government or Local Government (Council) will gauge the public’s objections and complaints or support for the proposed asset. Public submissions are carefully considered as part of the town planning assessment process and may cause for an application to either be refused, modified or approved.

Complaints from the public may also be received at any time for any of APN Outdoors’ assets. These would typically relate to the content of the advertising copy being displayed, illumination levels at night or perceived road safety issues. If received, these complaints are carefully dealt with by senior managers who determine the nature of the complaint and whether any corrective action is required. In most cases complaints or objections are successfully resolved directly with the complainant. Complaints regarding advertising copy content are always dealt with by senior management and if required may be referred to the OMA, and/or via the AANA Code of Ethics administered by the Advertising Standards Bureau, to ensure the copy is appropriate for display in the community.

Part II: Specific standard disclosures (continued)

AIRPORT, CANBERRA AIRPORT, CANBERRA



Page 17

Environmental management Companies in the outdoor media sector are relatively low emitters of greenhouse gas emissions compared to other industries and in general, the Company is not regarded to be exposed to environmental or climate-related risks that could materially affect its operations or stakeholders.

The use of energy and potential for environmental impact is for most assets, for example billboards, typically assessed as part of a regulatory town planning process that evaluates any physical or public amenity issues, including illumination, energy use, road safety, noise and waste disposal. Any potential impacts are carefully assessed and mitigated as required. Assets that are not subject to town planning regulatory process may also be subject to certain building codes or other regulatory assessments prior to development.

At APN Outdoor we care about the world around us and as such have established certain standards that promote the use of environmentally friendly processes and materials. At a minimum APN Outdoor ensures compliance with all Australian relevant legislation and regulations. APN Outdoor’s environmental standards include the following:

› The use of LED technology in our Elite screens resulting in more efficient energy consumption

› The implementation of computer-to-screen technology to remove hazardous substances from pre-press processes at our print business, GSP

› A focus on re-use and recycling where possible. For example, 90% of chemicals utilised at GSP in the pre-press area are recycled

› Reduced PVC content in banners by more than 30%

› The ongoing monitoring and evaluation of our suppliers’ impact on the environment

In 2017, the Company will be running a carbon footprint project across the APN Outdoor business. The Greenhouse Gas Assessment will identify and assess the direct and indirect emissions that occur as a result of the organisation’s activities. Key benefits of the project include:

› Minimising potential risk and exposure to the low carbon economy.

› Highlighting inefficient processes and systems, thereby helping to cut operating costs.

› Identifying the annual carbon footprint for carbon neutrality, setting a baseline for reductions such as those consistent with climate science.

APN Outdoor has an Environmental Management System (EMS) that complies with the requirements of ISO 14001:2004.

In 2016, the Company did not receive any fines or grievances for non-compliance with environmental laws and regulations.

BILLBOARD, LUX COLLECTION, HOMER STREET, SYDNEY



Case study: GSP Print

GSP is the production company for APN Outdoor. They are Australia’s leading provider of high quality and cost effective printing, finishing and logistics for outdoor and point-of-sale advertising campaigns. Located in Sydney and with over 20 years of experience, GSP uses cutting edge equipment at their 5,000 square metre facility.

GSP Print, with the assistance of the Printing Industries Association of Australia (PIAA), are implementing and promoting environmentally sound printing practices by achieving independent certification and accreditation at Level 3 of Sustainable Green Print (SGP). SGP is the industry’s environmental certification program run by the PIAA for the print and graphic communications industry. All SGP certification is audit driven and comprises comprehensive Environmental Management System (EMS) documentation (worksheets, guides, and templates) and a support network.

As part of GSP EMS, GSP has set up a committee that meets monthly to review all waste & water management issues, policy documents and monitor overall environmental sustainability performance.


90% of the chemicals utilised at GSP in the pre-press area are recycled.

90%



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Our people

APN Outdoor recognises that its people are its major asset and the ability to attract, develop and retain the best personnel is critical to the growth of the business. The growing scale of the business provides career opportunities for team members and further supports the capability for the Company to attract and retain the best available talent.

Everyone at APN Outdoor brings their own experience, ambition and unique personality to the job. A few things that all team members have in common are professionalism, integrity, accountability, insight and spirit that underpin everything we do.

APN Outdoor runs an annual Spirit Awards program to celebrate the team members who exemplify these behaviours and push themselves beyond their comfort zone.

The Company also encourages each and every team member to take a Spirit Day, which is an extra day of annual leave, to pursue a passion in the great outdoors.

Spirit Day does not only benefit our staff but it also contributes to our community. For example, in 2016 our team members volunteered with not-for-profits organisations including Ted Noffs and Miracle Babies.

Investing in people The benefits provided to our employees are designed to attract and retain the highest calibre talent.

APN Outdoor also has a corporate superannuation fund that provides insurance and health care benefits, amongst others.

Senior management participate in a long term share ownership plan (LTIP). Details about the benefits provided through the LTI plan are disclosed in the Company’s 2016 Remuneration Report.

APN Outdoor works closely with the Australian Institute of Management (AIM) and the majority of staff are placed in AIM training programmes throughout the year.

The Company also worked with a number or external education providers in 2016. These programs were designed to enhance employee skills in leadership, management, governance, finance, accounting and systems training. Training courses were provided in Sydney, Melbourne, Adelaide, Brisbane and Western Australia.

DiversityAs the Company grows we strive to recruit new staff from diverse backgrounds to support our operations. APN Outdoor acknowledges the positive outcomes and corporate benefits that can be achieved through a diverse workplace, including the ability to attract, retain and motivate Directors, officers and employees from the widest possible pool of available talent. The Company’s focus on diversity, which expands beyond gender and includes, but is not limited to issues of age, ethnicity, marital or family status, religious or cultural background, sexual orientation or preference, disability and mental impairment are highlighted in its Diversity Policy, which is available on the Company website.

During the reporting period there were no incidents of discrimination recorded.

In 2016, the Company hired 76 new employees from different backgrounds and age groups. 58% of the new hires were women. Detailed data in relation to the Company’s new hires by gender, age and location are available in table LA1 in the ‘Sustainability Data’ section of this report.

Details around the ratio of average annual salary and remuneration of women to men by employee category can be found in Table LA13 of the ‘Sustainability Data’ section of this report.



Parental leave entitlements Work-life balance plays an important role in employee retention and APN Outdoor recognises the importance of encouraging employees to take parental leave without having such absence impact their career potential.

Eligible employees are entitled to take up to 12 months of unpaid parental leave from work, with the right to request an additional 12 months of unpaid leave. Parental leave can be taken when:

› An employee gives birth;

› An employee’s spouse or defacto partner gives birth; or

› An employee adopts a child under 16 years of age.

All employees are entitled to parental leave subject to the following criteria:

› Have 12 months or more of continuous service: before the date or expected date of the birth if the employee is pregnant; or before the date of the adoption; or when the leave starts (if the leave is taken after another person cares for the child or takes parental leave); and

› Have or will have responsibility for the care of a child and complies with any requirements to provide documentation to the Company.

Casual employees may also be entitled to parental leave provided:

› They have been employed on a regular and systematic basis for an ongoing period of employment with the Company for at least 12 months immediately preceding the date they are to commence parental leave;

› There is a reasonable expectation of ongoing employment on that basis; and

› They have complied with the requirements to provide documentation to the Company.

In 2016, eight female employees took parental leave, with three returning back to work within the year and five remaining on parental leave.

As at 31 December 2016, 100% of employees that had received parental leave and returned to work after their leave ended were still employed twelve months after their return to work.

Corporate social responsibility The Company is committed to supporting the communities in which it operates. Our Corporate Social Responsibilities program provides outdoor media campaign support for not-for-profit groups such as the Cerebral Palsy Alliance, Sydney Children’s Hospital and the Australian Literacy and Numeracy Foundation. We also offer a significantly benevolent rate for registered charities to access our media platform.

In 2016, the Company donated more than $1 million to charitable causes across Australia in cash and advertising.

During the year APN Outdoor supported 44 organisations including the Cancer Councils of NSW, Queensland, Victoria, South Australia and Western Australia, as well as the RSPCA in Queensland, the Australian Red Cross Blood Service and the Salvation Army.

Work health and safetyAPN Outdoor will do all that is reasonably practicable to protect workers, contractors and visitors against the risk of injury or illness. Our goal is to eliminate all workplace accidents or work-related illness by promoting health, safety and welfare in all areas of the business.

The Company will make appropriate resources available to ensure compliance with prevailing Work Health and Safety (WHS) legislation and ensure that the workplace is safe and without risk to the health and welfare of all persons.

The Company has developed a Work Health and Safety Injury Management System (WHSIMS), which is available to all workers on the intranet and a printed copy is available to all contractors working for APN Outdoor. The Work Health and Safety Injury Management System is managed by the WHS Director for Australia and New Zealand who carries responsibility for maintaining and carrying out periodic reviews of the system to ensure it remains relevant and appropriate to the business. The Company’s WH&S Management System complies with the requirements of AS/NZS 4801: 2001.




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Case study: APN Outdoor’s hazard register

APN Outdoor maintains a hazard register which is a key platform for WH&S risk management.

The purpose of this database is to monitor all known or reported WH&S hazards against billboards reported by APN Outdoor’s contractors and installers.

When specific hazards with a high risk score are identified the Company sets out a plan to address those hazards in an appropriate and timely manner.

APN Outdoor has established its own Work Health and Safety Committee, which meets quarterly to ensure the health and safety of everyone in the APN Outdoor team, our sub-contractors and our visitors. The Company consults with its workers regarding the consultative arrangement that best facilitates the exchange of information and ideas and provides the best representation for the workforce. This process was underlined by the WHSIMS that was developed by APN Outdoor.

The consultative arrangement ought to be in accordance with one, or a combination of, the following :

› Work health and safety Committee; › WHS Representative/s; and › Other Agreed Arrangements i.e.:

a. Monthly WHS memo

b. Monthly WHS governance forums & conference calls

c. Quarterly WHS corporate governance meeting

d. Safety notices

e. Emails

f. Site meetings

The following factors are considered to ensure that APN Outdoor’s consultative arrangements properly represent our workers (employees, contractors, sub-contractors and labour hire) and relate to:

› The hours worked

› The pattern of work (e.g. part-time, seasonal or short-term)

› The number and grouping of workers

› Geographic location of workers (including mobile workers and those working from home)

› The different types of work and levels of responsibility

› Gender, ethnicity, age or other relevant diversity characteristic

› The types of hazards and associated risks workers are exposed to at APN Outdoor’s workplace or in work-related activities

› The mode and nature of interaction amongst our workers.

A WH&S memo is sent out to all contractors on the 20th of each month. These memos provide crucial information and updates to contractors around important WH&S topics.

In 2016, there were two worker compensation claims launched for incidents that occurred during work functions. Both claims are, at the time of this report, open. There were no legal claims against APN Outdoor filed in 2016. Details about injuries recorded during the reporting period and other WH&S data can be found in Table LA6 of the ‘Sustainability Data’ section of this report.

3 APN Outdoor has elected to use “Other Agreed Arrangements”.



Our suppliers

APN Outdoor supports the communities in which is operates.

SUPPLIER DESCRIPTION

Digital Billboard Construction

APN Outdoor has three main providers based in China for digital screens.

The Company makes purchases through Australian agents and constructs its digital and classic screens using Australian building and construction companies.

Production and Print

The Company prints at GSP Print Pty Ltd, a Sydney based subsidiary of the APN Outdoor Group.

Installation A key supplier to the APN Outdoor business is the installers which are locally based in each state. All installation suppliers are Australian companies.

Landlords and Rent

APN Outdoor relies upon having access to a range of outdoor advertising sites to maximise its network reach. The Company typically gains access to its sites through short and long term leases with site owners. We have a direct and meaningful relationship with our landlords including ensuring that arrangements are on commercial terms that are acceptable to both the Company and the landlord.

APN Outdoor has established a process to screen its major suppliers in relation to issues such as WH&S and environmental performance, manufacturing performance, accountability & governance framework. Due diligence is initiated as early as possible in the development of a new relationship with a supplier.

The Company’s General Manager – Operations is responsible for performing on location inspections of major suppliers. In 2016, the General Manager – Operations performed five supplier visits to China in order to review issues such as labour practices, environmental compliance, and quality of product. There were no negative environmental or labour practices identified in the supply chain during these inspections.


RAIL, CROSSTRACK, REDFERN STATION, SYDNEY



Page 23

G4-10 a) Total number of employees by employment contract and gender

CONTRACT TYPE FEMALE MALE GRAND TOTAL

Permanent 116 123 239Casuals 7 8 15Grand Total 123 131 254

G4-10 b) Number of full time employees according to location

LOCATION FEMALE MALE TOTAL

New South Wales 84 80 164Queensland 5 8 13South Australia 2 4 6Victoria 10 16 26Western Australia 2 5 7New Zealand 13 10 23Total 116 123 239

G4-10 c) Total number of employees by gender, age and location

FEMALE MALE GRAND TOTAL

New Zealand 13 10 2318-30 8 1 930-40 4 7 1140-50 1 2 3GSP 4 21 2518-30 1 4 530-40 0 6 640-50 2 5 750-60 0 6 660+ 1 0 1GSP 13 12 2518-30 4 0 430-40 2 4 640-50 4 5 950-60 3 3 6APN Outdoor 86 80 16618-30 43 13 5630-40 34 28 6240-50 7 21 2850-60 2 15 1760+ - 3 3Grand Total 116 123 239

Appendix 1 – Sustainability data



LA1) Total number of new employee hires by age group, gender and region & total turnover rate.

NEW SOUTH

WALES VICTORIASOUTH

AUSTRALIA QUEENSLANDWESTERN

AUSTRALIA NEW ZEALAND

18-30 years Female 18 4 1 2 1 4Male 5 1 0 0 1 1

31 - 40 years Female 9 1 0 1 0 0Male 7 1 1 1 0 3

41 - 50 years Female 2 0 0 0 0 0Male 3 2 0 2 0 1

51+ years Female 1 0 0 0 0 0Male 2 1 0 0 0 0

Turnover Rate 32%

LA6) Type of injury and rates of injury

INDUSTRY GROUP OFFICE NEAR MISS FIRST AID INJURY

MEDICAL TREATMENT

INJURYRETURN TO

WORK INJURY

CONFIRMED OCCUPATIONAL

ILLNESS

Advertising Services Australia 0 1 1 2 0Advertising Services New Zealand 0 0 0 0 0Printing & Printing Support Services GSP 1 2 0 0 0

INDUSTRY GROUP OFFICELOST TIME

INJURY (LTI) FATALITIES

TOTAL RECORDABLE

INJURYALL REPORTED

INJURIES DAYS LOST LTI

Advertising Services Australia 2 0 3 3 14Advertising Services New Zealand 0 0 0 0 0Printing & Printing Support Services GSP 1 0 1 3 9

LA13) Ratio of average annual base salary (excluding commissions) and remuneration of women to men by employee category

CATEGORY FEMALE MALE RATIO

Commercial, corporate, campaign delivery and other 78,779 114,164 69%Printing 58,229 59,582 98%Sales 76,974 94,752 81%Senior Management 290,384 320,799 90%

Appendix 1 – Sustainability data (continued)



Page 25

GRI CODE DESCRIPTION PAGE

G4-1 Statement from the most senior decision-maker 3G4-3 Name of the organisation 6G4-4 Primary brands, products and services 7-9G4-5 Location of headquarters 6G4-6 Number of countries where the organisation operates 6G4-7 Nature of ownership and legal form 6G4-8 Markets served 6G4-9 Scale of organisation p.9 & 2016 Annual

ReportG4-10 Workforce 9G4-11 Employees covered by collective bargaining agreements 9G4-12 Description of supply chain 22G4-13 Significant changes during the year 2016 Annual ReportG4-14 Precautionary principle 3G4-15 Externally developed principles or initiatives to which the organisation

subscribes or which it endorses 10G4-16 Principal associations to which the organisation belongs 10G4-17 Entities included in the organisation’s consolidated financial statements

and in the boundary of this report 26G4-18 Process for defining the report content and the Aspect Boundaries and

implementation of the GRI principles 4G4-19 Material aspects identified 4G4-20 Aspect boundaries – internal 4G4-21 Aspect boundaries – external 4G4-22 Restatements of information provided in previous reports N/AG4-23 Significant changes in the Scope and Aspect boundaries N/AG4-24 Stakeholder groups engaged by the organisation 12G4-25 Basis for selection of Stakeholders 12G4-26 Approaches to Stakeholder engagement 12G4-27 Key topics and concerns that have been raised through Stakeholder

engagement 12G4-28 Reporting period 3G4-29 Date of previous report 2015 Annual ReportG4-30 Reporting cycle 3G4-31 Contact point for questions regarding the report 26G4-32 GRI Index with respect to the “in accordance” option chosen 25G4-33 External assurance for the report N/AG4-34 Governance structure 2016 Annual ReportG4-56 Description of values, principles, standards, and norms of behaviour such

as codes of conduct and codes of ethics 14

Appendix 2 – Additional information

1) GRI core content index



2) List of APN Outdoor entities included in the organisation’s consolidated financial statements

NAME OF ENTITY COUNTRY % OF CONTROL

APN Outdoor Group Limited Australia 100%APNO Group Holdings Pty Limited Australia 100%APNO Finance Pty Limited Australia 100%APN Outdoor Pty Limited Australia 100%Eastcott Investments Pty Limited Australia 100%Cody Link Pty Limited Australia 100%Valtoff Pty Limited Australia 100%Everfact Pty Limited Australia 100%Everfact Unit Trust Australia 100%APN Outdoor (Trading) Pty Limited Australia 100%Adspace Pty Limited Australia 100%TMS Outdoor Advertising Pty Limited Australia 100%Nettlefold Outdoor Advertising Unit Trust Australia 100%Nettlefold Advertising Pty Limited Australia 100%National Outdoor Advertising Pty Limited Australia 100%Buspak Advertising Group Pty Limited Australia 100%Total Cab Media Pty Limited Australia 100%Universal Outdoor Pty Limited Australia 100%TaxiMedia Pty Limited Australia 100%SOL Australia Pty Limited Australia 100%Australian Posters Pty Limited Australia 100%The Australasian Advertising Company Pty Limited Australia 100%GSP Print Pty Limited Australia 100%iOM Pty Limited Australia 100%APN Outdoor Holdings (NZ) Limited New Zealand 100%APN Outdoor Limited New Zealand 100%

3) Further informationFor any enquiries regarding the content of this report please contact:

Wayne Castle Company Secretary P: +61 2 8569 3000

Appendix 2 – Additional information (continued)


apn outdoor group limited | abn 57 155 848 589 2016...

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