our loyal clients, whom we have had the privilege of working with during the past 30 years.

In three decades there have been many times of change and growth, and this year is one such pivotal time for me personally. I have five grandchildren, and the concept of being a granddad has a parallel in business for me these days: I see my role shifting from needing to discipline and micro-manage like a father would, to one in which I can offer guidance and wisdom like a grandfather, without having to become involved in the nitty-gritty of the day-to-day events.

My goal: as executive chairman I have indicated my intention to shift to being the non-executive chairman. (I will no longer push myself to be at the office by 7 am and home by 7 pm!) I will continue to act as a mentor to the new leadership and will help where I can with the wisdom and experience gained over these 40 years in construction. I am pleased that every one of our leaders has

bought into the values of the Power Group, especially that of being Unashamedly Ethical. While our company’s purpose is about upliftment, it goes beyond that: we have taken a firm stance to be a positive beacon when it comes to ethics.

We are poised to enter various parts of the rest of Africa, where we will embrace the opportunities to enhance the lives of people through infrastructure development. So we see exciting times ahead. From turnkey housing to the inroads we are pro-actively making into renewable energy and the plans to serve our purpose elsewhere on the continent, we are ready to play our part in the great plan that God has for Africa.

Africa’s time is now, and I am privileged to be living at this time in history.

May God grant us great peace, wisdom and favour. May His hand of Blessing continue to prevail over this

“rainbow nation”. May He hear our prayers, forgive our sins and heal our land. (2 Chronicles 7:14)

As we celebrate the past 30 years, we are reminded once again of our 100-year plan, and how this plan is about making a lasting impact on the lives of everyone who is touched by the activities of the Power Group. This is important, because, while our accomplishments are often expressed in concrete and asphalt and roads and buildings, we are ultimately about people and their well-being.

Looking back, I give thanks to the people who together make up the Power Group. In particular, our leadership team for the uncompromising ways in which they have held their demanding positions. To André du Preez, partner and colleague for over 29 years and who has just entered his “refirement” as he puts it, thank you for your friendship, your loyalty and dedication. To Glenville Cullum (retired end 2012), Vaughn Forrester-Jones and Leon Meyer (both deceased), my thanks for being part of the core leadership team at the start, along with the various directors, senior managers, and site agents, who have played a significant part in the foundation phase of the Group.

I am truly excited about the next phase in the life of “Power” with Poens Venter, CEO Construction and Stefan Bothma, CEO Developments, taking the lead with a dynamic team supporting them. We wholeheartedly support the objectives of the National Development Plan and I believe that we can make a significant difference in the lead-up to the plan’s target date of 2030.

A huge thanks too, to every member of our staff, and to the bankers, suppliers, consultants, professional teams and especially

“It’s about people... making a difference” by Graham Power, Executive Chairman, The Power Group

Our leaders look back...

Our history

Power’s longest serving staff members!

Our recent awards

Flash Back, Fast Forward...

Special Edition P O W E R L I N E S A P R I L 2 0 1 3

In this issue:

On this journey, Goodbyes from André du Preez

“Engineering is my first love. I grew up with it. My dad was an engineer and I knew from an early age that I wanted to achieve something in civil engineering. It’s about being creative and quite literally laying the foundations for the future. It’s about making a real and lasting difference to the lives of others.

I’ve been part of the Power Group since 2000, and it’s been an exciting ride, with many highlights and a few good learning experiences.

I’m blessed that in my role as CEO I get to enjoy the best of both worlds: the engineering side and the strategic aspects of the operations on the one hand, and the people and business side of things on the other: the human relationships – the interaction between leadership and staff and how we relate to our clients, suppliers and all our other stakeholders.

A few of the highlightsMy decision to get closer to the Construction Division has been one of the defining events of my career. Other highlights include our involvement in the Gauteng Freeway Improvement Project, a major achievement in which Power Construction broke into the “big league” of road construction. Then there is the N1 project near Richmond, where we really mastered the art of road making, delivering work of unmatched quality. And of course, in 2011, when I was promoted to CEO; this was a dream come true as I had always aspired to being in the top executive of Power.

HurdlesYes, there have been challenges along the way. My time as CEO has coincided with one of the toughest periods in construction, with low margins, tight competition and a harsh trading environment. Even our greatest assets - our staff - have been under constant threat of being poached by those who realise the value of the calibre of the people of Power. Fortunately, loyalty and commitment are some of the qualities of our brilliant and hard-working employees; it is a joy to work with a team like this.

OpportunitiesWe are being presented with opportunities that will help us establish Power as a prominent national player. The rest of Africa is becoming a feasible territory in which to expand and fulfil our vision. The prospects of renewable energy and of

turnkey housing are looming great for the Group.

Our peopleThe phrase ‘The whole is greater than the sum of the parts’ comes

to mind. The Power Group exists and is stronger because of its people. That is why I am wholeheartedly into nurturing a caring, professional environment. We put a lot of time into ensuring the

wellbeing of our people, and I am passionate about delivering results through our many learnerships and other initiatives.

We are known in the industry for our excellent training programmes, which are well-balanced to provide social, leadership and technical skills.

I want to thank each one of our Power family members - our staff and our stakeholders - for the loyalty and support

I have experienced along the way.

I am committed to persisting along the path that Graham Power set out on, 30 years ago. Let’s continue on this

exciting journey together!”

together.Poens Venter, CEO of Power Construction

We’ve come a long way, says “first employee”Stefan Bothma, Power Developments CEO

“During 1991, I was employed as the first staff member of Power Properties. At the time, Power owned various properties - most of which had been obtained by ‘taking discounts on civil contracts’.

Our first breakthrough came in 1996: we secured a R22-m contract to build the temporary accommodation camp for Saldanha Steel.

We identified as a major business opportunity the government’s subsidised housing scheme introduced by the late Minister Joe Slovo. The Power Group was perfectly positioned for this... we had both the development and construction skills. The first subsidised housing project was in Bongulethu and Bridgetown, Oudtshoorn.

Power Building was established during the Oudtshoorn project. “Oom” Basie van Wyk was appointed to head up the building division. The building activities were structured around a big material store, and all work was done by community based small contractors after receiving training in the various building trades. The Power Developments site staff managed the distribution of building materials, production and quality control. We soon became one of the leading subsidised housing developers and received several regional and national awards.

Another highlight was our involvement at Thesen Islands: started in 2000 with Power Developments as the biggest shareholder in the development. Once again our development skills and the experience of Power Construction played a big role in the success of the project.

During 2001 Power Developments was appointed as the developer of the Delft subsidised housing project next to Cape Town Airport. The project comprised bulk and internal services for 6 320 erven and houses.

Power Developments played a major role in the Group’s opening of a regional office in Gauteng by commencing our first Gauteng project in Fourways during 2002.

In years to come Power Developments completed various industrial, residential and commercial projects. A few of these are D’urbanvale, a development of 845 residential erven in Durbanville; Saxenburg Park 1 and 2, consisting of 291 industrial erven; and the Atlantis Shopping Centre on the West Coast.

The recent recession had a negative impact on most property companies and we were no exception! Thanks to the various product lines in the Power Group we managed to weather the economic storms. We have made good progress in selling off projects not in line with our new business focus of turnkey housing and the expansion of our retail and office portfolios.

Our biggest asset is our positive, loyal and extremely competent staff… I am excited and look forward to a bright future for the Power Group.”

Recollections and reflections of a Power pioneer

Goodbyes from André du Preez

“Power is experiencing a phase that all family businesses face at some point, and that is the retirement of its start-up generation of employees. There are people in Power today who have been working together for many years (a few of them for even longer than the 30 years of Power’s existence!). For myself, the time has come to officially say goodbye to Power and its wonderful people.

I have decided to enter my retirement as contemplated and planned for since the latter part of the 90s. The more recent idea of extending this to 2014 came as a result of our succession plan in 2011, we felt additional time would assist in the final phase of the ‘handover’. I am due to have a three-month vacation from March, and to return at the end of June. I feel that during this period, the leadership team would have settled into their roles and responsibilities, and would not require my further direct influence any longer. I am however, quite prepared to assist as a coach/mentor to anyone requiring personal support/advice. I am confident that we have selected and groomed the leaders who have the ability to take this organization and its people to unprecedented heights. I would like to take this opportunity to wish Graham and Poens Venter and his team all of the best for the future.

When I think back over my 29 years in Power, I remember the early days of learning many lessons, and working out methods of improving our work processes and quality. We were really innovative in those days! I remember the ‘router’ machine we developed on the Faure reservoir to limit concrete wastage. We even worked out that the best way to remove a blocked sewer test plug from a problem sewer line was with our company- issued .38 special revolver! We designed the first precast sewer manhole for wet excavations. (It was afterwards that Everite, and then other concrete product suppliers latched onto the idea!) We also manufactured our own kerbs as a result of poor supply at the time.

I remember the projects where we faced major challenges, and I look back with pride at all the completed projects (or monuments, as I call them) that we as a team, have established all over the country. Here I think of early days at the V&A Waterfront, Plattekloof, N1 City, Somerset Mall, Thesen Islands, Coega Harbour, Century City, the different casinos, various golf estates, and many others. My first project after being appointed in February 1984, was Kleingeluk in Stellenbosch, where we installed services for MultiBou, and I will certainly never forget the way we saved the life of one of our first employees, Jackson Kabalo, who

had became submerged in an excavation.

I think of all the relationships that have been built, inside and outside of the organization, and realize how instrumental they have been in much of the

success of Power. Teambuilds, business plans, Power Bou’s, rugby weekends, site braais, Wednesday meetings (some lasting till 3 in the morning!), braais with Witblitz in springbok horings, hunting at Bergplaats, Bauma Shows, and many others are reasons that I will really miss the people of Power. The

team spirit, belief, pride and camaraderie will never be found in any other organization, of that I am sure.

The last year has been really difficult, and it is no secret that it was probably the toughest in the history of the company, but we are really excited about what the future holds.

I would really like to thank Graham for allowing me to be part of this amazing process. We have been working together for more than 34 years now, and I appreciate his confidence in me. I would also like to thank everyone else for their belief, trust and amazing support over the many years. Also, thanks to those who

have allowed me to play a part, big or small, in their lives within Power!

I am looking forward to my period of ‘refirement’, and also trust that the personal relationships that have developed within the organization will continue in the future.”

Paul Thiart looks back - and ahead...Paul Thiart, Divisional Executive, Power Construction

“What a privilege it has been … being part of this organization for the last 30 years. I have seen so many talented and dedicated people join us during this time. All without which Power Construction would not have grown from a small “two-bakkie operator” to one of the biggest privately owned contractors in the country.

While we all know that the operational contractors form the backbone of any construction company, I want to pay tribute to our service departments. These are: Technical (tenders), Finance, Plant, Organisa-tional Development and SHEQ. Thanks to their support we have been able to grow to our full potential.

We are currently going through the third economic downswing in our 30-year existence, and by far the most severe. The good news is that the industry seems to have turned and we have a healthy order book for the next book year. I am very excited about our involvement with the renewable energy projects, and most specifically the windfarms, where we are constructing the civil infrastructure of three out of a total of eight approved in the first round in the country.

Highlights over the 30 years would include establishing the first regional office in George in 1989/90, serving as a director for a period of 13 years, my involvement in the Thesen Islands project in Knysna, and more generally the opportunity to mentor the next-generation leaders. I have also enjoyed my leadership role at the Knysna and Port Elizabeth regional offices with wonderful people who have also been with the company for many years.

I thank God for affording me the opportunity to work in such an environment, for the many friends made over the years, for the mentoring from other leaders in Power, and my lovely wife Ronel and three stunning daughters Lizanne, Tanea and Paula - for their belief in me, and

their support. I am planning to take a short three-week break in July after 30 years of uninterrupted service,

and I am looking forward to some quality time with my family.

I have no doubt that the next genera-tion of leadership has what it takes to

lead this Company on its way to fulfilling the 100-year dream”.

When did you start with the company? I started at Power 1985, so I’m 28 years at the company.What was your first job at Power? I started as a pipe layer with Vaughn Forrester-Jones.

What is your job description now? I’m an operator of any of the rollers at Power for the paving unit.What do you like about working at Power? For all these years I have been working I have been always treated great at Power.

Do you have any message for new employees at the company? To all the employees - they must be honest and always work hard.Any achievements at Power? Just a few certificates and Operator of the Year. I can’t remember when I got it.

Any other message to the people at Power? We should all work together and build a great company. From strength to strength.

When did you start with the company? I started at Power 1985, so I’m 28 years at the company.What was your first job at Power? I started as a pipe layer with Vaughn Forrester-Jones.

What is your job description now? I’m an operator of any of the rollers at Power for the paving unit.What do you like about working at Power? For all these years I have been working I have been always treated great at Power.

Do you have any message for new employees at the company? To all the employees - they must be honest and always work hard.Any achievements at Power? Just a few certificates and Operator of the Year. I can’t remember when I got it.

Any other message to the people at Power? We should all work together and build a great company. From strength to strength.

Christopher Kondile Still going strong after 28 years!!One of our longest serving members offers a few wise words.

Of course, our involvement in turnkey housing once again gives expression to our vision: to positively impact the lives of people in Africa through the develop-ment of infrastructure!

Stefan Bothma, who heads the newly formed Turnkey Housing Division, sees turnkey housing as a “major opportunity” for the following reasons:1) The growing housing shortage2) Government’s National Development Plan includes an emphasis on housing delivery

3) RSA banks are willing to provide 90% to 100% bonds in this market4) Work creation for the construction teams within the Power Group and5) The ability to deliver a cost-effective product via integrated planning processes.

In most cases, these types of developments take place on government land. Also counting in our favour is the fact that government and local authorities prefer a one-stop service from reputable developers and contractors.

Turnkey Housing...A great opportunity forrealising our vision.

The Power Group has been a major player in the government’s Housing Subsidy Scheme since its introduction by the late Minister Joe Slovo.

Our involvement in subsidized housing has been expanded to include a much wider concept. In Integrated Turnkey Housing, implementation of projects results in the development of entire new communities – including new school, church, commercial and recreational facilities. The housing component of such developments includes subsidized houses.

The Power Group is well positioned for this type of work. Our project management, development and construction skills equip us to take up a project from start to finish, competently and cost-effectively.

The Power Group’s tag line is “Unashamedly Ethical”. This phrase embodies both our ethos of providing work of the highest quality and best value to our clients, as well as expressing our goal to make a significant contribution to the lives of people in Southern Africa.

Within the Power Group, ethical living is not only a matter of policy; it runs through every aspect of our company ethos.

It was out of Graham Power’s personal commitment to ethics, values and clean living that the Power Group set off on this course. It has not always been an easy road; there are many who are threatened by a company that seeks to engage in a just and transparent manner. The result is that we have had to work harder to continue to grow our company. However, along the way we have won the trust and respect of both clients and other players in the industry. Our leadership and staff work hard to uphold these standards.

In an organization the size of the Power Group there are bound to be some mistakes and failings. The manner in which we deal with such mistakes is as much a testimony of our ethical intentions as our desire to uphold impeccable values. The group has a number of committees that develop and implement ethics policies, as well as monitor complaints. There is even an ethics “hotline” to which staff or clients can lodge complaints or share a concern anonymously. There is also an anonymous online form on our website. Such matters are always treated seriously and investigated thoroughly and wherenecessary, disciplinary steps are taken.

One of the greatest joys is that Power’s stance of being Unashamedly Ethical has contributed towards the formation of the global Unashamedly Ethical campaign - see www.unashamedlyethical.com

The principle is quite simple – the Power Group is not just here to make money. Our calling and task is to contribute to the transformation and wellbeing of society. The result is a healthy company with happy customers!

30 years of making a difference by Dr Dion Forster

From the very beginning of the Power Group there has always been a keen under-standing that our task is not only to provide services and infrastructure

for the nation – we are engaged in a far bigger task…

8 April 1983: FoundedGraham Power starts his company as a conventional civil contractor, with one bakkie, 3 casual labourers andadministrative help of his wife, Lauren,from their smallholding in Sir Lowry’s Pass.

1986: Blackheath office opens In the 3rd year of the company, the head office moves from Elandskloof to new premises in Wimbledon Road, Blackheath.

1989: George office opensThe first regional office is established, with Paul Thiart, relocating to George.

1991: Power PropertiesStefan Bothma takes up the reins in 1991. Today the company is better known as Power Developments.

1992: KhayelitshaThe unique R30.75-m “Village 5” township development with 4 100 fully serviced plots is said to be the first development in South Africa in which the contractors themselves undertook a major portion of the capital risk.

1995: East Cape office opensThe second regional office is established in the Eastern Cape, with Jacques du Preez,the late Vaughn Forrester-Jones, and Glenville Cullum as director of the region.

1996: Century CityPower Construction completes 20infrastructure contracts at the R2-billion Century City development.

1997: Hughmic ConstructionFormed in 1997 as the first Empowerment Joint Venture with Chano Hughes and Abel Michel, in the Western Cape.

1998: Sibakulu ConstructionThe second Empowerment Joint Venture in the Eastern Cape, with Dumisa Mcetywa, Mike Ndube, Glenville Cullum and Jacques du Preez.

2000: Thesen IslandsOne of the largest marina developments in South Africa, with a R100-m civil component, in 6 phases.

2001: DelftBulk earthworks and installation of all civil services for 6 320 erven to the value of R116m.

RTSC and Power-Up EventsThe RTSC event held in 1996, discussedthe Road to the Future. In 2001 a similar event, the Power-Up, is attended by 350 employees, from all levels. The realisationof the 100-year dream is initiated.

2002: Power RoadsBlitz Asphalt changes to Power Construction Roads, headed by Dieter Vietze, Louwtjie Louw and Poens Venter.

2005: André du Preez appointed as CEOMD André du Preez becomes CEO of the Power Group’s Construction Companiesand also of Power Plant, on 1 January 2006. André joined the Group as a director and shareholder in 1984.

2005: New Core IdeologyAnd a renewed sense of purpose: “To improve the quality of life in Africa throughinfrastructure development.” Management formulates a new ideology for the Group – encapsulating the Purpose, Vision and Values.

2005: N2 Gateway/SobambisanaKhayalethu Projects and Power Develop-ments, members of the Sobambisana Consortium, win part of the tender for Cape Town’s multibillion-rand N2 Gateway Project. It involves the building of high-density, low-cost housing units along the N2 and in District 6. 2005: North office opensFirmly entrenched in Gauteng, Power opens a third regional office building in Centurion, headed by Francois Voigt.

2006: Nikamandla ConstructionThe third Empowerment Joint venture in the Group, specialising in the rehabilitation of roads, with Grant White and Gerard Gilbert at the helm.

2007: Power restructures The Group is rationalised and streamlined from 12 companies into two: Power Construction and Power Developments. Power to the people. One of the most visible demonstrations of the Power Group’s commitment to the bettering of the lives of people has been the co-ownership offer in 2007 to all its employees with five years’ service or longer.

2008: Gauteng Freeway Improvement Project (GFIP) As part of the Siyavaya Joint Venture (with Group 5, Liviero, Umso Construction and Bophelong Construction), Power is awarded Work Package A as well as Work Package E, with the goal to have both completed for the 2010 Soccer World Cup. Power is later awarded Work Package H.

2011: ISO 9001 Quality AssurancePower complies with ISO 9001. The new Power Quality Management System replaces the old “Power Ways”. The company can now tender where ISO 9001 certification is a requirement.

2012: Poens Venter appointed as CEOFormer MD Poens Venter takes up the reins as CEO of Power Construction.

2012: Turnkey HousingPower’s involvement in subsidized housing expands to embrace the idea of turnkey projects, where implementation of projects results in the development of entire new communities.

2012: Renewable energy projects to propel us aheadPower Construction successfully tenders for the “balance of plant: civil construction” projects at 3 windfarms in the government’s renewable energy programme: Hopefield, Kouga and Dorper, each project worth between R100 m and R150 m to Power Construction.

2013: André du Preez retiresAfter 29 years of loyal and dedicated service to the Power Group, André du Preez (one of the founders) retires at the end of March 2013.

BackBackflash

fastforwardforward

Power scoops PMR magazine’s Best of Breed in Construction Award - underlining the Group’s commitment to the well-being of the environment and the communities in which it operates.

SAFCEC Presidential “Best Project” Award recognises Power Construction’s outstanding work at Thesen Islands, particularly Environmental Impact, Marine Technical Challenges and Job Creation. Thesen Islands receives the SAICE award for the Most Outstanding Civil Engineering Achievement of 2005.

Graham Power is named the Business Leader of the Year by Die Burger and Kaapstad Sakekamer.

Govan Mbeki Awards Certificate of Acknowledgement to Power Construction for its contribution to housing for the poor.

Power Construction receives the PMR Bronze Award for the Southern Cape Region, for Companies and Institutions doing the most in their sectors in a 12 month peroid to stimulate the economic growth and development.

Power Construction Roads receives the Regional Award for the most Outstanding Civil Engineering Achievement in the field of Technical Excellence, for the project “Safety Improvements”: Kaaimans Pass. Awarded by the Southern Cape Branch of SAICE.

Power Construction is named corporate winner of the National Productivity Awards in South Africa, by Productivity SA.

Graham Power receives an award in the category for Social Affairs and Services from the City of Cape Town at the Cape Town Civic Honours Ceremony.

Koeberg Interchange project (a JV between Power Construction and Group Five) wins the prestigious “Construction World Best Projects 2011” competition. The GFIP Freeway Package E project is awarded a Special Commendation.

Power Construction receives the PMR Golden Arrow award for the West Coast Region.

Marlene Cronje is voted South Africa’s Most Influential Woman in Business and Government for the Building, Construction and Materials sector by CEO Communications.

Graham Power receives the first Entrepreneurial Leader of the Year Award in Vancouver, Canada. The award is sponsored by the Entrepreneurial Leaders Organization (ELO) and the World Evangelical Alliance (WEA), recognising individuals who have exemplified Christian ethical behaviour in the marketplace and have had a significant impact not only in the business community but society at large, locally and internationally.

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The Power Group is no stranger to industry accolades. For three decades the efforts of our talented people have been recognised and rewarded – each award bearing testimony to the commitment of individuals to the collective good of the Group and the betterment of the broader community. Here are a few of the most recent achievements honoured…

Talents awarded...

Loyal, committed and part of our “family” for at least 25 years each, the following people of Power have recently been recognised for long service:

In it for the long run Every day brings opportunities to livewith purpose and vision

Our Purpose:To improve the quality of life in Africa throughinfrastructure development.

Our Vision: To be recognised and respected asthe first choice supplier of civil, development and building services as we lay the foundation for growing successful businesspartnerships in realisingour 100-year dream.

Wimbledon Road, PO Box 129, Blackheath 7581 Tel: +27 (0)21 907 1300, Fax: +27 (0)21 905 2284Email: general@powergrp.co.za www.powergrp.co.za

BRANCHES:Gauteng: Tel: +27 (0)12 621 8000, Fax: +27 (0)12 661 8627 Knysna: Tel: +27 (0)44 302 5500, Fax: +27 (0)44 302 5529 Port Elizabeth: Tel: +27 (0)41 463 1782/3, Fax: +27 (0)41 463 1786

PURPOSE

VISION

Ethi

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Abs

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Carin

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r peo

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25 YEARSAlbert Begemann Ntsikelelo BrukheFundile Buwa Phineas Gwegwana Mapanona Mgwebi Slati Mqamu Ponose Mtuyedwa William Mvubu Mwezi Ndandanei Kukusana Paka Shadrak Siyali Monde Tshayisa Johan Van Zyl

26 YEARSJohn Bedingham Michael Gcame Eric Kondile Melvin Mazele Abel Mweli Elvis Ngxathu Timba Nqamu Xolani Ntose Fundisile SomkobaDieter VietzeFrancois VoigtAndré Zandberg

27 YEARSGlenville Cullum Percy Knight Mzwabantu Mazele Johnson Sokhiya

28 YEARSChristopher Kondile Marius Phantsi

29 YEARSJacques Du Preez André Du Preez Louwtjie Louw Fanie van der Westhuizen

30 YEARSGraham Power Paul Thiart

It’s been a long and eventful journey… from the back of a bakkie to the forefront of construction and engineering. A journey which has has transformed what began as one man’s vision and determination into a close group of

people embracing a collective vision and shared purpose. A journey that has covered three decades, conquered many challenges, celebrated countless achievements…

taking nearly seven and a half thousand workdays, offering opportunity and empowerment to generations of South Africans and creating a caring environment for hundreds of employees.

It is a never-ending, uphill, downhill, fun, serious, challenging,rewarding, incredible journey made possible through the enduring commitment of our people…

and the limitless Grace of God.