Costain Group PLC · LSE:COST

Costain — Investor Presentation (June 2015)

65 slides from Costain's investor presentation, Jun 5, 2015

  1. Slide 1: Business Briefing 05 June 2015

    Busine ss Brie fing 05 June 2015

  2. Slide 2: Tony Bickerstaff, Group Finance Director

    Busine ss Brie fing 05 June 2015 Tony Bickerstaff, Group Finance Director

  3. Slide 3: Agenda

    Agenda Meeting National Needs Andrew Wyllie Meeting the National Need for Energy John Pettigrew HS2: A Catalyst for Growth across Britain Simon Kirby BREAK Upgrading the highways infrastructure Graham Dalton Being a partner of choice Costain

  4. Slide 4: Andrew Wyllie CBE, Chief Executive

    Busine ss Brie fing 05 June 2015 Andrew Wyllie CBE, Chief Executive

  5. Slide 5: Business Briefing

    Busine ss Brie fing 05 June 2015

  6. Slide 6: Meeting the National Need for Energy

    Meeting the National Need for Energy John Pettigrew National Grid Executive Director, UK

  7. Slide 7: Change in Energy Landscape

    Change in Energy Landscape nationalgrid 14000 12000 : Installed Onshore & Offshore Wind Capacity (MW) 8 8 tll 2009 2010 2011 2012 2013 2014 = installed Wind s 8 & 8 Installed Solar Capacity (MW) i] 2008 2009 2010 2011 2012 2013 2014 alnstalled Solar Installed Fossil Generation Capacity (GW) Electric

  8. Slide 8: Electricity Market Reform

    Electricity Market Reform A package of measures to………….. Incentivise low carbon investment - Contracts For Difference Manage emissions - Emissions Performance Standard - Carbon floor price support Security of supply - Capacity market

  9. Slide 9: Our 2015 Future Energy Scenarios

    Our 2015 Future Energy Scenarios Consumer Gone Green Power prosperity More Prosperity Prosperity Less No Slow Progression Progression Less Ambition Green Ambition More ambition

  10. Slide 10: Changes in Generation landscape

    Changes in Generation landscape Currently New Applicants Plant Type Connected (MW) (MW) Coal / Biomass 20296 280 Hydro 3775 3029 Interconnector 4364 8205 Nuclear 9937 17737 Oil & AGT 800 0 Wind Offshore 4328 32791 Wind Onshore 2953 7144 Gas 28060 21044 Total 74513 90230

  11. Slide 11: Key Investments

    Cumulative investment Key Investments nationalgrid * Multiple drivers of investment scenarios * Significant Capital Delivery activities for every scenario ~ 6% pa RAV growth ~£20bn investment ~ 5% pa RAV growth ~ £16bn investment 2021

  12. Slide 12: Our major infrastructure projects

    Our major infrastructure projects (I/C’s in orange) NSN Link – UK / Norway North West Coast - Interconnector Nuclear connection HVDC Eastern Link - Inter connection with Scotland HVDC Western Link - King’s Lynn - Gas- Inter connection fired power station with Scotland connection North Wales - East A

  13. Slide 13: Conclusion

    Conclusion

  14. Slide 14: Business Briefing

    Busine ss Brie fing 05 June 2015

  15. Slide 15: HS2: A Catalyst for Growth across Britain

    HS2: A Catalyst for Growth across Britain Simon Kirby, CEO, HS2 Ltd Costain Business Briefing Friday 5 June 2015 www.hs2.org.uk

  16. Slide 16: How HS2 will transform Britain

    How HS2 will transform Britain 16

  17. Slide 17: The need for HS2

    The need for HS2 Britain’s two-speed economy: Gross value added per hour worked

  18. Slide 18: HS2's criteria for success

    HS2’s criteria for success CATALYST FOR CHANGE STRATEGIC ANSWER KEY PRINCIPLES ECONOMIC INTEGRATED VALUE TRANSPORT

  19. Slide 19: The planning of HS2

    The planning of HS2 will transform the way Britain thinks about transport

  20. Slide 20: Rebalancing Britain

    Rebalancing Britain

  21. Slide 21: The construction of HS2

    The construction of HS2 will transform the way Britain builds infrastructure

  22. Slide 22: Safety

    Safety 22

  23. Slide 23: Creating jobs and improving diversity

    Creating jobs and improving diversity

  24. Slide 24: A step-change in the industry's skill set

    A step-change in the industry's skill set 24

  25. Slide 25: The operation of HS2

    The operation of HS2 will transform Britain’s economic geography

  26. Slide 26: Expectations for Phase One

    any |0:48 it @ = cons | 0:48 I @ Oui farce | 0:53 Ba ||0:32 eee _ Manchester Liverpool Existin rae lez) Birmingham London Expectations for Phase One

  27. Slide 27: Plans for Phase Two

    Leeds puny | 0:48 -_ | Oar) fing | 0:53 =" or" = Manchester Liverpool Birmingham London Plans for Phase Two

  28. Slide 28: Hopes for East-West connectivity

    Hopes for East-West connectivity

  29. Slide 29: Quote from Sir David Higgins

    “The result should be that London grows sustainably, and the Midlands and the North achieve their full potential.” Sir David Higgins Chairman, HS2 Ltd

  30. Slide 30: Thank you

    Thank you

  31. Slide 31: Business Briefing

    Busine ss Brie fing 05 June 2015

  32. Slide 32: Upgrading the highways infrastructure

    Business Briefing – Meeting National Needs Upgrading the highways infrastructure Graham Dalton – Chief Executive 5 June 2015

  33. Slide 33: England's Strategic Road Network

    England’s Strategic Road Network • 7,139km of motorway and trunk road • Used by 4 million drivers every day • 3% of roads in England • Carrying a third of all traffic and two thirds of all freight in England • 141bn vehicle km in 2014 up 2.4% on 2013 • Port container throughput of 22,000 TEU per day

  34. Slide 34: Roads reform & strategic road investment

    Roads reform & strategic road investment Delivery Plan, Management Plan, Our response Operational Metrics Manual, Strategic Business Plan Route Strategies Government’s Road Investment Strategy  Strategic Outcomes  Enablers  Enhancement projects  Overview  Performance Indicators  Overview  Str

  35. Slide 35: Highways England

    Highways England  Company limited by shares  Owned by government  Operating with commercial freedom  With clear accountability  Monitored by the Office of Rail and Road (ORR) & Transport Focus  Introduces longer term certainty for the company and suppliers  Remains a heavily outsourced busine

  36. Slide 36: Vision and ambition

    Vision and ambition What we will achieve  Delivering a better experience for our customers and stakeholders Strategic outcomes  Supporting economic growth  A safe and serviceable network  More free flowing network  Improved environment  Accessible and integrated network 36

  37. Slide 37: Significant and growing investment

    Significant and growing investment £10m / day Short term  Protect and continue to build upon reputation Medium term  Realise the opportunity of long term funding commitment and flexibility  Meet new performance expectations (pace and efficiency)  More effective portfolio & supply chain managemen

  38. Slide 38: Key suppliers

    Key suppliers  Amey Limited  Balfour Beatty Group  Carillion PLC  Ch2m  Colas  Costain Group PLC  Morgan Sindall Group PLC  Mouchel Group PLC  Royal BAM Group  Skanska UK PLC 38

  39. Slide 39: What do we need from our suppliers?

    What do we need from our suppliers?  Safety - a step change for workers and customers 39

  40. Slide 40: What do we need from our suppliers? Reduced customer impact

    What do we need from our suppliers?  Reduced customer impact 40

  41. Slide 41: What do we need from our suppliers? Productivity

    What do we need from our suppliers?  Productivity M5 J7 – Sunday 1 March 1024 tonnes / 2.7km with one paver gang 41 © FunXite

  42. Slide 42: In conclusion

    In conclusion  We have a five year plan  We have committed funding  We will work closely with our supply chain to deliver it 42

  43. Slide 43: Being a partner of choice

    Busine ss Brie fing BEING A PARTNER OF CHOICE

  44. Slide 44: Unique strategy

    Unique strategy Infrastructure Securing a future energy supply… …maintaining a safe and reliable water supply Natural Resources …upgrading the transport infrastructure

  45. Slide 45: Delivering results

    Delivering results Record, high quality order book Increase in profit 4 35 30 3 £3.5bn 25 £28.7m £3.5bn £3.0bn 20 £27.4m 2 £2.5bn £2.4bn 15 £24.5m 1 10 5 £24.1m 0 0 2011 2012 2013 2014 2011 2012 2013 2014 Total value of dividend pay-out (£ million) 12 10 8 £6.3m £4.7m Final 6 £4.4m £4.7m Interim 4 2

  46. Slide 46: Delivering a broad range of integrated services

    Delivering a broad range of integrated services Smart motorw ays Adv ising clients on asset enhancement Managing Mobicloud to improv e site efficiency Cutting the cost of carbon capture London Bridge Station Adv ising on HS2 Perenco Dimlington Centrica Barrow

  47. Slide 47: Expansion in highways

    Expansion in highways Construction Maintenance Technology Pre-construction and Statutory Process

  48. Slide 48: Specialist design & advisory services

    Busine ss Brie fing BEING A PARTNER OF CHOICE SPECIALIST DESIGN & ADVISORY SERVICES

  49. Slide 49: Specialist design and advisory services

    Specialist design and advisory services

  50. Slide 50: Dimlington Terminal Upgrade

    Dimlington Terminal Upgrade Project capital cost Maintained current processing 60% capacity reduction Delivered within legislative deadline Improved terminal energy efficiency Incumbent Costain Contractor

  51. Slide 51: Dimlington Terminal Upgrade

    DimlingtonTerminal Upgrade Completed without interrupting terminal operation, saving £millions per day in lost revenue Built strong relationship with new customer Currently undertaking further gas terminal projects

  52. Slide 52: Delivering on our promises

    Busine ss Brie fing BEING A PARTNER OF CHOICE DELIVERING ON OUR PROMISES

  53. Slide 53: Delivering on our promises

    Delivering on our promises • Rail journeys to increase to 3 billion annually by 2020 • Need high speed, high capacity rail and to improve connections • Costain has project life-cycle capability • Complex challenges • Solved by talented delivery teams and specialists

  54. Slide 54: Reading Station redevelopment

    Reading Station redevelopment • Busiest station outside of London • 17 million passengers annually • 5 new platforms constructed • Remained operational throughout

  55. Slide 55: London Bridge Station redevelopment

    London Bridge Station redevelopment • One of the busiest stations in London • Approximately 52 million passengers per year • Will increase capacity by 40%

  56. Slide 56: London – North West Electrification Programme

    London – North West Electrification Programme • 2,000 miles electrification programme • Design, supply, test, commission • Frequent services, greater capacity • Better connecting the nation

  57. Slide 57: Crossrail

    Crossrail • Paddington New Yard – programme critical • Awarded 13 contracts on Crossrail • Projects range from System-wide works, station builds and utility works • Partner of choice

  58. Slide 58: Driving efficiencies in long-term relationships

    Busine ss Brie fing BEING A PARTNER OF CHOICE DRIVING EFFICIENCIES IN LONG-TERM RELATIONSHIPS

  59. Slide 59: Severn Trent Water Framework

    Severn Trent Water Framework

  60. Slide 60: Strensham water treatment works

    Strensham water treatment works

  61. Slide 61: Delivering technology-led solutions

    Busine ss Brie fing BEING A PARTNER OF CHOICE DELIVERING TECHNOLOGY-L ED SOLUTIONS

  62. Slide 62: Nuclear waste – long term storage

    Nuclear waste – long term storage

  63. Slide 63: Plasma waste vitrification

    Plasma waste vitrification Ar, Np, 02, H,0: Feed system | offgas Cathode Coupling zone Reaction conte” re ; ¥ Copper cold crucible Discharge

  64. Slide 64: Crucible of simulated nuclear waste

    Crucible of simulated nuclear waste

  65. Slide 65: Business Briefing 05 June 2015

    Busine ss Brie fing 05 June 2015

Costain Group — Investor Presentation (June 2015) on 6ix