Costain Group PLC · LSE:COST
Costain — Investor Day (November 2014)
73 slides from Costain's investor day presentation, Nov 5, 2014
Slide 1: Costain Group PLC: Meeting National Needs
Costain Group PLC Meeting National Needs 5 November 2014
Slide 2: Itinerary
Itinerary 08:30 - 10:30 Crossrail @ Paddington 10:45 Train departs for Reading 11:20 - 12:30 Thames Water @ Reading 12:30 Coach departs for Maidenhead 13:15 - 15:30 Costain @ Maidenhead (lunch from 13:15) 15:30 Coach departs for Maidenhead Station / train to London 2
Slide 3: Welcome and introductory comments
Welcome and introductory comments Andrew Wyllie, Chief Executive
Slide 4: Costain capital markets day: Crossrail Ltd
Costain – capital markets day 5th November 2014 Andrew Wolstenholme Chief Executive Crossrail Ltd
Slide 5: Delivering benefits: High Capacity Metro Railway
Delivering Header herebenefits max 30 characters High Capacity Metro Railway
Slide 6: Crossrail
Crossrail Header route here max 30 characters
Slide 7: Crossrail route and contract packages
Crossrail Header route here max 30 characters North East NR works (Costain) Pudding Mill Lane portal (CSJV) Royal Oak Portal (CSJV) Paddington New Yard (Costain) Eleanor Street Paddington Main Works (CSJV) shaft Civils (CSJV) Bond Street Station (CSJV) System-wide, traction power and non-traction po
Slide 8: 42 km of new tunnels
42 km of new Tunnels = Paddington Station © @ @ &
Slide 9: Managing the tunnelling risk
Managing the tunnelling Header here risk max 30 characters
Slide 10: Stations 50% complete
Stations Header 50% herecomplete max 30 characters
Slide 11: Bond Street
Bond Street Header here max 30 characters
Slide 12: Paddington
Paddington Header here max 30 characters
Slide 13: On time, on budget
On time, here Header on budget max 30 characters
Slide 14: Delivering a railway
Delivering Header herea railway max 30 characters
Slide 15: Test and Commission: a complex programme
AHeader complexhere programme max 30 characters 2012 13 14 15 16 17 18 Property OSD & Urban Realm Acquisition Test and Commission Surface Works Trial Operation Systems Civils and Tunnelling Stations Rolling Stock & Depot Crossrail TOC
Slide 16: Sustainability
Sustainability Header here max 30 characters Economic Economic • 75,000 business opportunities • £42bn GDP benefit • 97% of contractors based in the UK • Over 1000 operational jobs • 3 in 5 contractors based outside London • Enable 57,000 new homes • Over 60% SMEs • Secures London’s place as a world
Slide 17: Delivery phases
Delivery Header Phases here max 30 characters Shenfield Ilford/ Seven Kings Stratford Reading & Maidenhead Abbey Wood Heathrow terminals Paddington Liverpool St. 2016 2017 2018 2019 2020 Feb May May Dec May Dec Stage 2: Stage 3: Stage 4: Stage 5: Reading / First Stage 1: Liverpool S. (high level) to
Slide 18: Infrastructure: the next years, National Infrastructure Plan
Header here -max Infrastructure The 30 nextcharacters 20 Years National Infrastructure Plan £375bn Pipeline Energy and transport see the highest investment 40 Priority Projects
Slide 19: Moving London Forward
Moving HeaderLondon Forward here max 30 characters
Slide 20: Costain's involvement with Crossrail
Costain’s involvement with Crossrail Darren James, Managing Director: Infrastructure Isabel Coman, Project Director
Slide 21: Costain and Crossrail
Costain and Crossrail > Key delivery partner on scheme through to completion in 2018 > Broad range of integrated services including: > Railway systems integration Traction Power > Power supply > Civil engineering > Utilities > Design and commissioning > Extensive & varied involvement over 13 contrac
Slide 22: Crossrail Paddington
Crossrail Paddington Integral hub for Crossrail • Inter-connections with mainline, underground, TfL and Heathrow Express services • Up to 24 trains per hour between Paddington and Whitechapel during peak periods • Each train carrying maximum of 1,500 passengers Construction stats • 250,000m3 of spoi
Slide 23: Safety Briefing
Safety Briefing
Slide 24: En route to Reading
En route to Reading Darren James, Managing Director: Infrastructure
Slide 25: Thames Water: introductory comments
Thames Water: introductory comments Andrew Wyllie, Chief Executive
Slide 26: Delivering AMP6
Delivering AMP6 Martin Baggs – CEO Thames Water
Slide 27: The UK's largest water and sewerage company
The UK’s largest water and sewerage company Banbury River Cherwell Ri ve rL ee River Coln Oxford ames River Th e High Wycombe Swindon Slough 14 million wastewater River Ken Reading customers 9 million water customers net 66,500 miles of sewer Guildford ey network er W Riv 2,600m litres of wa
Slide 28: Our five-year plan for 2015-2020
Our five-year plan for 2015 – 2020: £8.0bn of Totex Highlights Reduce risk of flooding: 2,127 properties Start work on Thames Tideway Tunnel, to prevent tens of millions of tonnes of pollution Fit 900,000 ‘smart’ meters to locate leaks and encourage customers to save Reduce leakage by 59 million lit
Slide 29: Our aims and approach
Our aims and approach Our aims haven’t changed: • The very best in health and safety performance • Delighting our customers • Delivering exceptional value for money It’s our approach that’s changed: • Innovation • Sustainability • Collaboration
Slide 30: Our AMP6 strategy
Our AMP6 strategy • Implement the largest alliance in the water sector, to deliver £2.0bn – £2.5bn of investment across 923 needs. • Develop ground-breaking partnerships which fully align with the delivery of the Thames Water outcomes. • Fair risk and reward that reflects Thames Water performance an
Slide 31: Our strategic alliance partners
Our strategic alliance partners Best industry team to deliver major infrastructure Costain (CVA JV) Veolia (CVA JV) Atkins (CVA JV) Skanska (SMB JV) Balfour Beatty (SMB JV) MWH (SMB JV) MWH UK IBM
Slide 32: Key alliance milestones - on track
Key alliance milestones – on track 14 May 2013 ECI contracts signed All parties verified and Mid to August 2013 signed up to business plan August 2013 to Mobilise for AMP6 delivery March 2015 with efficiency embedded Sign up to FD and sign December 2014 delivery contracts April 2015 Commence constru
Slide 33: Building for 22nd Century London
nd Building for 22 Century London
Slide 34: Introducing the Thames Tideway Tunnel
Introducing the Thames Tideway Tunnel A major UK infrastructure project with an estimated cost of £4.2bn Vital to London’s future and a priority for the Government and Ofwat Financed by private sector investors and benefiting from an enhanced regulatory framework and Government support Competition l
Slide 35: Why does London need the tunnel?
Why does London need the tunnel? Population increase in London in the last century... ... creating two problems: 1. Overloaded sewer network; discharging into 1860 the river via Combined 2 MILLION 1910 Sewer Overflows (CSOs) 2. Overloaded sewage 4 MILLION treatment works; discharging directly into t
Slide 36: London Tideway Improvements
London Tideway Improvements 5
Slide 37: Geology
Geology Carnwath Abbey Mills Acton Storm Road Kirtling Chambers Pumping Tanks Riverside Street Wharf Station West Central
Slide 38: World class construction companies
World class construction companies West • Bam Nuttall, Balfour Beatty, Morgan Sindall JV • Costain, Vinci, Bachy JV • Dragados, Samsung JV • Ferrovial Agroman, Laing O’Rourke JV Central • Bam Nuttall, Balfour Beatty, Morgan Sindall JV • Costain, Vinci, Bachy JV • Ferrovial Agroman, Laing O’Rourke JV
Slide 39: The IP at a glance
The IP at a glance Debit Equity Secretary of State (if debit financing used) 100% ownership Government Support Package Ofwat Thames Water Utilities Limited (TWUL) Infrastructure project licence Provider revenue collection/operator of sewer network/TWUL works System Integrator Construction Insurers P
Slide 40: Investment highlights of the IP
Investment highlights of the IP A unique opportunity to invest in a new UK regulated utility company ~£1bn equity opportunity Bespoke regulatory framework reflecting project specific features, based around familiar building blocks cost of capital bid by investors and fixed up until project accep
Slide 41: Timetable
Timetable System Acceptance Handover date Complete construction System Commissioning Start construction IP Licence award Signature of Contracts IP Procurement DCO granted DCO submitted Main Works Procurement Start public consultation Ministerial statement
Slide 42: Legacy
Legacy Environment • Dramatic reduction in discharges – from more than 50 to only three or four in a typical year Health and Safety • Three Zeros commitment • Introduce leading lorry and cycling safety initiatives Economy • Use river transport to remove 90 per cent of spoil • Engage local businesses
Slide 43: Physical legacy
Physical legacy Blackfriars: Blackfriars: before after
Slide 44: Slide 44
Slide 45: Costain's involvement with Thames Water
Costain’s involvement with Thames Water Alex Vaughan, Managing Director: Natural Resources Graham Keegan, Chief Operating Officer: Thames Water AMP6 Framework
Slide 46: Introduction to eight2O: The Thames Alliance
Introduction to eight2O: The Thames Alliance Creating better results together 46
Slide 47: Leading the changing approach in the water sector
Leading the changing approach in the water sector The Challenge > 923 needs into customer benefits > Minimum programme size of £2.2bn over 5 years and growing > A further five years into AMP7 in our gift > Deliver efficiency challenge set by the regulator > Totex and outcomes 47
Slide 48: Delivering value for Thames Water
Delivering value for Thames Water Asset Management Contract > Fully integrated with our customer > Incentivised to perform against regulatory standards > We are using innovation and technology to drive efficiency > We are connected from regulator to customer 48
Slide 49: Welcome & introductory comments
Welcome & introductory comments Tony Bickerstaff, Finance Director
Slide 50: Engineering Tomorrow: unique and well-positioned strategy
Engineering Tomorrow: unique and well-positioned strategy Working with customers to meet essential national needs > Costain is the UK’s engineering solutions provider with a unique focus on the major Ensuring the customers meeting national needs in energy, lights stay on… water and transportation. >
Slide 51: This morning's IMS
This morning’s IMS > Trading in line > Strong, record order book: £3.3bn > Over £900 million of revenues secured for 2015 (2013: over £700 million secured for 2014) > Good long-term visibility with over £2.2 billion of revenues secured for 2016 and beyond. > Comprises over 90% repeat order business
Slide 52: The market opportunity
The market opportunity Tim Bowen, Corporate Development Director
Slide 53: Significant investment providing opportunities in targeted sectors
Significant investment providing opportunities in targeted sectors RAIL HIGHWAYS POWER Sector Priority area for the government to stimulate economic UK road networks are under significant pressure, with Securing the UK’s future energy needs while meeting growth and to meet future demands for an addi
Slide 54: Significant investment providing opportunities in targeted sectors
Significant investment providing opportunities in targeted sectors OIL & GAS WATER NUCLEAR PROCESS Sector Significant activity in UK upstream market driven by Committed spend continues in the UK water market as Government is committed to safely decommissioning investment in offshore deep drilling an
Slide 55: Clients are awarding longer term, larger contracts and extensions
Clients are awarding longer term, larger contracts and extensions 55
Slide 56: A unique formula for success
A unique formula for success Darren James, Managing Director: Infrastructure
Slide 57: Focused on requirements of major customers
Focused on requirements of major customers Simple business model to deliver innovative integrated solutions > Unique focus on major customers Infrastructure Natural Resources > Customer aligned divisional structure > Central resource allocation to prioritise Over 90% repeat orders and optimise asset
Slide 58: Wide range of integrated services
Wide range of integrated services Advisory and Concept Smart motorways Development Advising clients on asset enhancement Asset Optimisation and Specialist Design Support Managing Mobicloud to improve site efficiency Cutting the cost of carbon capture Reading railway station Complex Project Technolog
Slide 59: Reputation for excellent delivery and award-winning work
Reputation for excellent delivery… Long term relationships with 90% repeat orders on the back of excellent delivery Brighton Amp 3 Amp 4 Amp 5 Amp 6 & Hove National Multi- Reading London Electrification disciplinary Station Bridge Programme Frameworks Highway MAC Managed Technology Schemes Contracts
Slide 60: Collaborating on
Collaborating on Alex Vaughan, Managing Director: Natural Resources
Slide 61: Delivering results
Delivering results Skilled & Experienced Team Operating to Knowledge Sharing and Innovation One Team Delivering Results Management Opportunity Rigour Selection Contract Leaders Executive Reports Investment Panel Customer Focus Key Account Plans 61
Slide 62: Driving innovation and technology throughout our services
Driving innovation and technology throughout our services MARIO TaKaDu Carbon Capture RECAP Absorber Column Design COamp Asset Management Platform Building Information Modelling Wireless Monitoring Geographical Information Nuclear waste management Plasma Waste Vitrification ESDAL – Electronic Delive
Slide 63: Strategic level collaboration
Strategic level collaboration Co-located teams Combined team Strategic alliance Open relationships Common objectives Business transformation Shared targets Perenco Dimlington Evap D Eight20 EDF Hinkley London Bridge Managed Motorways Collaboration, common objectives, complex solutions, target cost c
Slide 64: Collaborative contracts
Collaborative contracts > >90% of order book on a target cost basis > Early Contractor Involvement (ECI) appointment > Professional services basis > Full understanding of scope > Fee agreed (overheads and profit) as a % of cost > Target Cost agreed > Part of customer’s overall budget > Shared incent
Slide 65: Strength in depth
Strength in depth
Slide 66: Ijeoma Ifedi
Ijeoma Ifedi > Senior Process Engineer > MEng (Hons) Chemical Engineering with Industrial Experience (2008) > Shortlisted for The Young Chemical Engineer In Industry Award (2014) Bradwell FED Treatment Project > Contributed to the development, commissioning and optimisation of the innovative dissolu
Slide 67: James Bulleid
James Bulleid > Highways Technology Director > MEng (Hons) Engineering and Management, CEng (MICE), Prince2, ILM5 > IMechE Best Student Award, ICE President’s Commendation, CECA Young Engineer of the Year, Construction News Rising Star of the Year, NEF Innovator of the Year Highways Technology > In-
Slide 68: James Forward
James Forward > Design Manager > Chartered Civil Engineer (2010) > Association of Project Management Professional (2014) Hinkley Point Nuclear Power Station – Marine Works > Managing the design for the marine works contract to construct the tunnels required to provide cooling to the power station. >
Slide 69: Claire Baker
Claire Baker > Sustainability Solutions Manager > BSc Physical Geography with Music from Keele University (2009), MSc Climate Change Management from Birkbeck , University of London (2012 – Part Time), Associate Member of the Institute of Environment Management and Assessment, Member of the Energy In
Slide 70: Focused on requirements of major customers
Focused on requirements of major customers Simple business model to deliver innovative integrated solutions > Unique focus on major customers Infrastructure Natural Resources > Customer aligned divisional structure > Central resource allocation to prioritise Over 90% repeat orders and optimise asset
Slide 71: Q&A
Q&A
Slide 72: Summary
Summary Andrew Wyllie, Chief Executive
Slide 73: Costain Group PLC: Meeting National Needs
Costain Group PLC Meeting National Needs 5 November 2014