Kier Group Plc · LSE:KIE

Kier — Investor Day (July 2016)

123 slides from Kier's investor day presentation, Jul 6, 2016

1. Slide 1: Kier Group plc Infrastructure Services Seminar 6 July 2016

   Kier Group plc Infrastructure Services Seminar 6 July 2016 1

2. Slide 2: Haydn Mursell, Chief Executive

   Haydn Mursell Chief Executive Kier Group plc 2

3. Slide 3: Disclaimer

   Disclaimer No representation or warranty, expressed or implied, is made or given by or on behalf of Kier Group plc (the “Company” and, together with its subsidiaries and subsidiary undertakings, the "Group" or any of its directors or any other person as to the accuracy, completeness or fairness of t

4. Slide 4: Today's schedule

   Today's schedule Corporate update Trading, market and Group overview Haydn Mursell / Bev Dew Construction & Infrastructure Services Nigel Brook 10:30 Operations Construction - Infrastructure Sean Jeffery (Part 1) Guest contributor (video) Jim O'Sullivan, Highways England Services – Highways Dave Wri

5. Slide 5: Kier executive presenters

   Kier executive presenters Haydn Mursell Bev Dew Nigel Brook Sean Jeffery Dave Wright Chief Executive Group Finance Executive Executive Executive Director Director Director Director Construction & Construction - Services - Infrastructure Infrastructure Highways Services Area 3 operations team 5

6. Slide 6: Guest contributors

   Guest contributors Jim O'Sullivan Geoff Dobson Chief Executive Chief of Highways England Resource Management Suffolk County Council 6

7. Slide 7: Group update

   Group update Core Market businesses Current conditions and trading & Brexit market position Simplifying Vision Group the 2020 summary portfolio summary 7

8. Slide 8: Current trading

   Current trading Property Residential Construction Services  >15% ROCE  c1,450 Mixed  c£2bn revenue  c£2bn revenue  >10 schemes Tenure units  c2% operating  c5% operating completed  c750 Private margin margin annually units  Order book  Order book  Avg capital  Avg capital c£3.5bn c£5.5bn

9. Slide 9: Market Position and Brexit

   Market Position and Brexit Brexit potential implications Property Residential  75% UK regions  100% regional Property  Non-speculative private player  Non speculative = yield producing focus  Average sale  Modest value, lower individual transaction exposure  >£1bn pipeline price <£250k  Pipe

10. Slide 10: Market Position and Brexit

    Market Position and Brexit Brexit potential implications Construction Services  UK building  Mouchel Construction market good and performing well  85% secured for FY17 less competitive and LA highways strong pipeline  Building – long term frameworks, less competition,  Infrastructure risk profi

11. Slide 11: Group Brexit Summary

    Group Brexit Summary  Largest part of the Group (Services) is least affected  c60% of Group profit  Breadth of activities provides flexibility and resilience  Order book of c£9bn  > 85% secured in Construction and Services for FY17  c50% of Services secured and probable to 2020  Disciplined a

12. Slide 12: Current portfolio

    Current portfolio Property Residential Construction Services Development and Structured Finance Invest Private, Mixed Tenure and Affordable Housing Building, Infrastructure, Build International Highways, Housing Maintenance, Facilities Maintain Management, Utilities, Environmental 12

13. Slide 13: Core businesses

    Core businesses Building Infrastructure Residential Developments and Developments and Structured Finance Structured Finance Kier Living Invest Capital & Investment Construction - Regional Building Infrastructure Kier Living Build Options - Property Facilities Housing Highways Management Maintenance

14. Slide 14: Market position

    Market position Leading UK Leading Top 3 infrastructure regional housing player builder maintenance (Kier + MG + Mouchel) provider with new build capabilities £1.5bn £1.5bn £600m >80% of Group turnover 14

15. Slide 15: Vision 2020: key future portfolio determinants

    Key future portfolio determinants Vision 2020 Ability Fit with to generate Top 3 Cash positive integrated sustainable potential / ROCE > 15% offer profit Market Control / risk Client fit prospects management 15

16. Slide 16: Simplifying the portfolio

    Simplifying the portfolio International Mouchel Environmental (Caribbean) Consulting Strategic fit Sustainable margin / pipeline ROCE > 15% Top 3 market position Risk Management Client Relationship Ongoing - expected to complete during 2017 16

17. Slide 17: Vision 2020 summary

    Vision 2020 summary FY14 FY16 Journey to date Discipline / Risk management T/O £4.3bn Profit growth 10% YoY T/O £3.0bn PBT >£120m Order book visibility significantly improved PBT £88m Net Debt/EBITDA < 1x Net debt stable or reducing Div/Cover > 1.6 Progressive dividend (growth just behind earnings)

18. Slide 18: Group summary

    Group summary Positive On track with Acquisitions FY16 Vision 2020 integrated trading goals Disciplined Focus on Growth and proven our core trajectory track record businesses 18

19. Slide 19: Bev Dew, Group Finance Director

    Bev Dew Group Finance Director 19

20. Slide 20: Cash utilisation

    Cash utilisation 250 120% cash conversion 200 +50 DIVIDEND -50 150 75 100 185 INVESTMENT DIVIDENDS 50 110 INVESTMENT - EBITDA Working Pension, Free cash capital interest & tax flow movement 20

21. Slide 21: Net debt

    Net debt 400 350 300 250 200 < £140m 150 100 50 0 21

22. Slide 22: Working capital - monthly

    Working capital - monthly  Monthly cash cycle 400  Payment made at the end of month 350  Intra-month working 300 capital £90m Swing £90m 250 200 150 100 50 0 22

23. Slide 23: Working capital - annual

    Working capital - annual Annual cash cycle 400 Cycle of £90m driven by work-led seasonality 350 300 Average monthly net debt 250 200 150 100 50 0 23

24. Slide 24: Peak net debt mid Feb

    Peak net debt mid Feb Peak capital structure 400 approaching £350m 350 300 250 200 150 100 50 0 24

25. Slide 25: Peak net debt

    Peak net debt  Peak net debt asset 400 backed  No net debt in 350 Construction and Services divisions 300 250 200 Residential assets 150 100 Property 50 assets 0 25

26. Slide 26: Facilities

    Facilities £720m facilities 800 available as at 30 June 2016 700 600 500 c. £350+ headroom vs peak net debt 400 300 200 100 0 Peak net debt Facilities 26

27. Slide 27: Facilities

    Facilities  Average duration of 400 7 years RCF  85% beyond 4 350 Term Loan years 300 USPP  40% fixed rate Schuldschein 250 200 150 100 £82m/€100m 50 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 27

28. Slide 28: Net debt conclusion

    Net debt conclusion  Vision 2020 metrics re-validated  Net debt to EBITDA 1:1 by 2017 – achieved one year ahead of target  Group cash cycle results in peak net debt in line with assets in mid Feb  Facilities give Group long-term core financial strength and flexibility to invest  Maintenance of

29. Slide 29: Nigel Brook, Construction and Infrastructure Services

    Nigel Brook Executive Director Construction and Infrastructure Services 29

30. Slide 30: Today's operational team presenters

    Today's operational team presenters Sean Jeffery Dave Wright Scott Cooper Executive Director Executive Director Service Director Infrastructure Infrastructure - Highways Highways 30

31. Slide 31: Health and Safety – Accident Incidence Rate (Kier UK)

    Health and Safety – Accident Incidence Rate (Kier UK) 500 450 HSE Benchmark 400 350 297 300 282 281 278 274 245 250 230 209 210 203 200 181 183 150 100 50 0 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Source: HSE Benchmark October 2015 31

32. Slide 32: Market position

    Market position Leading UK Leading Top 3 infrastructure regional housing player builder maintenance provider with new build capabilities £1.5bn £1.5bn £600m >80% of Group turnover 32

33. Slide 33: Market position

    Market position Leading UK Leading Top 3 infrastructure regional housing player builder maintenance provider with new build capabilities £1.5bn £1.5bn £600m Construction Services (Capex) (Opex) Infrastructure Services - includes Highways Maintenance 33

34. Slide 34: Kier's areas of expertise

    Kier's areas of expertise  Breadth Local of capability Authority Strategic (Opex) Highways  Aligned to (Opex) Government spending  Wide skill base Capital £1.5bn In-house Design works (Capex) Design & Consultancy (Mouchel Consulting) Utilities & Waterways (Opex) 34

35. Slide 35: Infrastructure Services

    Infrastructure Services Construction Services 20% 36% 23% 100% Utilities Strategic Highways Local Authorities 7% 1% 1% 12% Infrastructure Waterways Streetlighting Surface Dressing Design Total revenue £0.4bn Total revenue £1.1bn Infrastructure Services accounts for c.30% of Group revenue 35

36. Slide 36: UK Highways market

    UK Highways market Highways England Local authorities and others Total annual highways spend £14bn £14bn £2bn  Kier is largest supplier  4 areas New  c.40% of spend expanded Capex  New procurement opportunity £5bn provides growth opportunities £1bn £2bn Outsourced  c.14% of spend Opex  Healthy

37. Slide 37: Highways England funding

    Highways England funding  Five year funding Capex (Delivery Plan funding) Opex (Delivery Plan & CSR funding) Minor Capex works visibility 4,075  Road Investment £m 3,640 3,321 Strategy (RIS) 2,903 1,101 2,854 Government 1,113 1,080 backed Kier 1,072 1,076 Highways  RIS1 totals 2,974 £17bn over fi

38. Slide 38: Acquisition rationale

    Acquisition rationale JULY 2013 JUNE 2015 NOV 2015 APRIL 2016 Integration of Local Strategic Integration of infrastructure Authority Highways Kier Highway and utility Services focus operations business including highways units and utilities Development of an integrated capability in the Highways and

39. Slide 39: Capital works: Infrastructure projects

    Capital works: Infrastructure projects Over thirty projects across the UK 39

40. Slide 40: Capital works: Highways projects

    Capital works: Highways projects A number of highways projects including:  Mersey Gateway  Smart Motorways – M6  A30 40

41. Slide 41: Opex: Highways England footprint

    Opex: Highways England footprint Maintaining approximately one third of England’s Strategic Highways network Kier hold a Area 13 Area 7 share of one of the four Scottish Area 9 regional Highway contracts Area 1 Area 3 41

42. Slide 42: Opex: Local Authority Highways footprint

    Opex: Local Authority Highways footprint  Lincoln Responsible for  Northamptonshire maintaining  Suffolk over 16,000  Surrey miles of Local  Torbay Authority roads Harrow c.70% of Highways Westminster services not Bexley outsourced Merton Bromley Sutton Source: Credo 42

43. Slide 43: Total Highways footprint

    Total Highways footprint Kier's Highways footprint is Highways England roughly one fifth Local Authority of the UK landmass LoHAC Streetlighting services Scotland Transerv 43

44. Slide 44: Infrastructure Services - order book and pipeline

    Infrastructure Services - order book and pipeline Order book Pipeline Infrastructure capital projects £1.5bn £20bn Strategic Highways £1bn c.£3bn Australia (JV share) £0.5bn c.£1bn Local Authority Highways £0.5bn c.£2bn Total Infrastructure Services £3.5bn + £25bn 44

45. Slide 45: Our risk approach

    Our risk approach JULY 2013 JULY 2015 JAN 2016 Continued Rolled out Services operation of Kier Risk Review Pre-Contract existing processes to Committee Committee robust Mouchel Mouchel implemented controls businesses Pre-contract gateway standards rolled out 45

46. Slide 46: People and skills

    People and skills  Over 1,000 on Kier early career schemes  Significant projects coming on stream requiring skills  Focus on managing the competitive market for early talent  New entrant, graduate and undergraduate placements or post A Level Foundation Degrees  2016 target - Recruiting 230 – 24

47. Slide 47: Outlook

    Outlook Infrastructure Acquisitions Significant Services accelerated market business platform for opportunities growing growth 47

48. Slide 48: Sean Jeffery, Construction - Infrastructure

    Sean Jeffery Executive Director Construction - Infrastructure 48

49. Slide 49: 49

    49

50. Slide 50: Infrastructure – active sectors

    Infrastructure – active sectors Highways Nuclear Energy Water Rail Coastal and Ports Airports 50

51. Slide 51: Infrastructure capital pipeline

    Infrastructure capital pipeline Coastal Water  £20bn & FD opportunity  Strong Energy opportunities in Highways and Rail Nuclear £20bn Highways Rail 51

52. Slide 52: Kier Infrastructure pipeline

    Kier Infrastructure pipeline  Highways  Nuclear  Silvertown  Hinkley  Congleton by-pass  Sellafield  East Leeds Orbital  Wylfa  Rail  Moorside  HS2  Energy  MerseyRail  Spalding power station  Network Rail  Trafford CCGT power station  London Underground  Gateway  Knottingly  Dam

53. Slide 53: Highways

    Highways FAKIER 53

54. Slide 54: Mersey Gateway

    Mersey Gateway  Joint venture with Samsung C&T Corporation and FCC Construction SA  £450m four-year road scheme with six lane toll bridge  9.5 miles in length  Largest moving scaffold system currently in use in the world  Completion early 2018 54

55. Slide 55: Smart Motorways – M6

    Smart Motorways – M6  Highways England project to upgrade highways  Award for packages – one live, three coming on stream  Package 3 awarded in July 2015 to Kier j/v M6 J16 – 19 (tender £129.4m) M6 J13 – 15 (budget £160m) M23 J8 – 10 M20 J3 – 5 (budget £100m) (tbudget £61m) 55

56. Slide 56: A30, Cornwall

    A30, Cornwall  Cornwall – Temple and Higher Carblake  Capital investment project between Cornwall County Council and Highways England  Value £33m  Due to be open early 2017 56

57. Slide 57: Silvertown, London

    Silvertown, London  Integrated offer  Transport for London PFI project  PQQ expected Autumn 2018  Expected start date Q4 2018  Value £700m 57

58. Slide 58: Rail

    Rail FAKIER 58

59. Slide 59: Rail

    Rail  National presence covering broad range of works  Port Talbot  Windsor Road  Parson Street  Chelsea  Kingston  New Cross Gate  Wales and Western frameworks  Signalling  NLCRPR framework  Selby swing  Black Cart 59

60. Slide 60: Crossrail

    Crossrail  Joint venture with BAM Nuttall C300 / 410 and Ferrovial (BFK) Western Running  Biggest engineering project in Tunnels Europe  Value £1.4bn C435 Farringdon 60

61. Slide 61: HS2 Enabling Works & Main Works Contract

    HS2 Enabling Works & Main Works Contract 61

62. Slide 62: Infrastructure Opportunities

    Infrastructure Opportunities Source: Kier 62

63. Slide 63: Jim O’Sullivan, Highways England

    Jim O’Sullivan Chief Executive Highways England 63

64. Slide 64: Dave Wright, Kier Highways

    Dave Wright Executive Director Kier Highways 64

65. Slide 65: What we do

    What we do Manage Maintain Improve Build  Communications with the public  Incident response  Value management  Deliver improvement schemes to and stakeholders  Winter maintenance  Improvement scheme construction carriageway / structures renewal  Management of Roadspace and and delivery and ma

66. Slide 66: Highways clients

    Highways clients Suffolk County Council & Northamptonshire : —"] Roads & 28 County Council 5s highways S Maritime england driving forward Queensland Government 9 Department of Transport and Main Roads . . ‘eo Lincolnshire = Transport = COUNTY COUNCIL for London County Council on = ES <Z 5 Kingston L

67. Slide 67: Total UK highways footprint

    Total UK highways footprint Highways England Local Authority Kier's Highways footprint is roughly LoHAC one fifth of the UK Streetlighting services landmass Scotland Transerv 67

68. Slide 68: Kier Highways England contracts

    Kier Highways England contracts Area 13 Cumbria and North Lancashire Area 7 East Midlands Area 9 Birmingham including the M6 Spaghetti Junction Area 3 Hampshire / Surrey / Wiltshire Area 1 Devon and Cornwall 68

69. Slide 69: Kier Strategic Highways current contracts

    Kier Strategic Highways current contracts Area Order book Expiration Area 1 £25m 2017 Area 3 £300m 2018  5 areas now available Area 9 £400m 2019  No % limit Area 13 £30m 2017 New Procurement Area 7 £50m 2021 Current tenders Recent Area 7 provide £50m design opportunity for contract award future gr

70. Slide 70: Strategic Highways market opportunity

    Strategic Highways market opportunity 4.50 Performance 4.00 Long term To renew and expectations on commitment to Lower Thames Crossing improve the pace, efficient 3.50 Capital Investment (£bn) significant network customer Capital renewals investment 3.00 experience 2.50 Longer term 2.00 investment P

71. Slide 71: Kier Strategic Highways - order book and pipeline (UK)

    Kier Strategic Highways - order book and pipeline (UK) 2017 £1.1bn 2017/18 opportunities  Areas 1 and 2 - £550m £1bn c£3bn  Areas13 and 14 - £500m Order Book Pipeline  NRTS2 - £450m - 2018 2019 2018 £0.9bn+ £1.0bn 71

72. Slide 72: Kier Local Authority Highways contracts

    Kier Local Authority Highways contracts Five contracts plus London Lincolnshire presence Harrow Suffolk Westminster Bexley Merton Bromley Sutton Surrey Torbay 72

73. Slide 73: Local Authority market - London

    Local Authority market - London £2.2bn addressable market up to 2021 to transform London’s roads, including: £1.4bn £350m £450m To maintain Major Highway For cycling, asset enhancements road safety performance to support and keeping including £1bn growth London moving of capital improvements Source:

74. Slide 74: Kier London Highways Alliance Contract (LoHAC)

    Kier London Highways Alliance Contract (LoHAC)  Four area based frameworks for TfL and London Boroughs  8 year term, expires 2022, potential reductions  Open to TfL and all 33 London Boroughs  One provider per area capable of delivering the full range of services  Streamline providers – Pre LoH

75. Slide 75: Kier Local Authority - order book and pipeline

    Kier Local Authority - order book and pipeline 2017 £0.8bn 2017 opportunities  Cambridgeshire - £600m £0.5bn c.£2bn Order Book Pipeline  Devon and Plymouth - £300m 2019 2018 £0.5bn £0.7bn 75

76. Slide 76: Australian Highways footprint

    Australian Highways footprint Roads and Maritime Services, Kimberley New South Wales Transport and Main Roads, New South Wales NORTHERN TERRITORY Main Roads, WESTERN South East Queensland Western Australia AUSTRALIA QUEENSLAND Sydney North Zone Mid West and Gascoyne SOUTH AUSTRALIA Perth Office NEW

77. Slide 77: Australian order book and pipeline

    Australian order book and pipeline 2017 opportunities  Western Australia - £150m £0.5bn c.£1bn  New South Wales - £250m Order Book Pipeline 2019 2017/18 £0.6bn £0.5bn 77

78. Slide 78: Highways England performance (March-May)

    Highways England performance (March-May)  HE operates two types of contracts – Asset Support 1200 ASCs 1010 1024 998 Contracts (ASCs) and Managing Agent Contracts 1000 790 776 848 800 (MACs) 600  Based on Highways England's performance scoring 400 200  Kier ranked first (Area 3) in ASCs 0 Area 2

79. Slide 79: Systems

    Systems  Fully integrated market leading solution  Intelligent costing  Efficient and seamless  Electronic workflow  On track to go live 1 July 2016  For future use by combined Strategic and Local Authority highways  BSI – pioneers UK’s first 11000 alliance arrangement for SMEs 79

80. Slide 80: Awards and certification

    Awards and certification ONE PLANET LIVING CARBON TRUST REDUCING CO2 Investors in Diversity [EIKIER CUSTOMER SERVICE EXCELLENCE The Government Standard 80

81. Slide 81: A591 - Reconnecting Cumbria

    A591 - Reconnecting Cumbria Jan 2016 9 May 2016 81

82. Slide 82: Kier Group plc Analyst / investor seminar July 2016

    Kier Group plc Analyst / investor seminar 6 July 2016 82

83. Slide 83: Geoff Dobson, Suffolk County Council

    Geoff Dobson Chief of Resource Management Suffolk County Council 83

84. Slide 84: A Suffolk County Council Perspective

    A Suffolk County Council Perspective Kier Analyst and Investment Seminar 6th July 2016 Geoff Dobson Director of Resource Management

85. Slide 85: About Suffolk, Facts & Figures, Council Priorities

    • About Suffolk • Some Facts & Figures • Council Priorities • Financial Environment • Devolution • Commercial Council • Our Relationship with Kier

86. Slide 86: Where is Suffolk?

    x) Norwich Great -) Yarmouth (/ LJ TED Eye To London @ 4 Where is Suffolk? Dsuffolk

87. Slide 87: About Suffolk

    About Suffolk Source: www.investinsuffolk.com

88. Slide 88: About Suffolk

    About Suffolk Source: www.investinsuffolk.com

89. Slide 89: About Suffolk

    About Suffolk Source: www.investinsuffolk.com

90. Slide 90: Sone

    £489.50 @ wa ie Sone billion 6@@ 457,100 oe £430 billion at tah energy Suffolk County Council

91. Slide 91: Facts & Figures

    Length of roads we are responsible for No Cold Calling Zones’ established Savings delivered Mlk Municipal waste Facts & Figures sent to landfill 2015/14 47% zoisne 1% u Inaun ntn nee Savings target 2016-18 Suffolk County Council

92. Slide 92: Facts & Figures

    Schools judged to be Good | [ or Outstanding | Conservatne Labour UHI Ueral_—indepancent Green ©) Q 29 x6 80% Facts & Figures March 2014 March 2016 6.7% 6.1% 16-18 year-olds not in year-olds not in e e education, employment we & io i] or training (NEET) County Council

93. Slide 93: A few more Facts & Figures

    A few more Facts & Figures!! Average house price 734,466 233 wo Population ! S22 tun wenn 15146 al 73,248 291 (2013) J Suffolk County Council ‘ver pepktonexpecte tegen by 200

94. Slide 94: Suffolk’s Priorities

    Support those most vulnerable in our communities © Vand skill levels { Support the Local Enterprise Partnerships (LEPs) to increase economic growth &,) Raise educational attainment Develop Suffolk's infrastructure and maintain roads Empower local communities Suffolk’s Priorities | Suffolk County Cou

95. Slide 95: Suffolk’s Finances 2016-17

    Suffolk’s Finances 2016-17 Where does our £492m revenue funding (excluding schools) come from? Education R levenue Services Grant Other Central Support Grant £5.9m Grants £9.7m £68.2m Public Health [ £31.6m jusiness Rates Retention £94.0m Council Tax! £283.0m Suffolk County Council

96. Slide 96: Suffolk’s Finances 2016-17

    Suffolk’s Finances 2016-17 ...And where is it spent? Home toSchool 5. onger Transport Transport s = Corporate & Support £18.3m £12.5m Services £32.3m Other Services £6.5m Fire & Rescue Services £22.4m. Highways & = Adult Care Services ! _ » / £208.8m Transport £21.4m_—— Waste £20.5m a \ Public Healt

97. Slide 97: Capital Investment 2016-17

    Capital Investment 2016-17 Fire Renewals Programme and Suffolk Transformation Lowestoft flood project £1m and Collaboration £3.4m Structual building maintenance £1m Suffolk Heritage Centre in Adult Social Care £0.9m Schools Organisation Review and Major Programmes £17.6m Highways and Transport Progr

98. Slide 98: Financing of Capital Programme 2016-17

    Financing of Capital Programme 2016-17

99. Slide 99: Suffolk’s Budget Gap 2017-18 – 2019-20

    Suffolk’s Budget Gap 2017-18 – 2019-20 • Over £200m savings made to date • Further grant reductions of 25% by 2019-20

100. Slide 100: Financial Challenges

     Financial Challenges • Demography and Demand • Lack of Money (continual • Higher Customer expectations grant reductions) • Fragile Care Market • Capacity – Devolution • National Living Wage – Health and Social Care Integration • Academisation • Brexit • National Funding Formula for Schools – Inflati

101. Slide 101: Norfolk and Suffolk Devolution

     Norfolk and Suffolk Devolution

102. Slide 102: The Devolution Deal for Norfolk and Suffolk

     The Devolution Deal for Norfolk and Suffolk 30 year • £25m over 30 years - £750m for economic growth, fund as % of Combined fund infrastructure and jobs Authority (£m) GVA (2014) • £130m over five years for housing investment to deliver new Norfolk & Suffolk 750 4.23% homes The East (overall) 1350 3

103. Slide 103: Outsourcing, Insourcing and Divestment

     Outsourcing, Insourcing and Divestment • To be a smaller and more effective Council • To put a much greater emphasis on commissioning and have much lower levels of direct service provision. • To improve services whilst spending less money • Over a three year period the Council divested eight differe

104. Slide 104: Commercial Council

     Commercial Council Vv vertas A>=Concertus RTY CONSULTANT Making the difference Schools’ aS Suffolk chools’ uffo Sc! choice norse wo Suffolk ‘2 County Council

105. Slide 105: Commissioning Council, Simpler Council

     Commissioning Council • 70% of our budget is now spent with suppliers • 2000+ contracts Simpler Council

106. Slide 106: Local Authority Procurement Process

     Local Authority Procurement Process • All local authority procurement processes are governed by the Public Contracts Regulations (2015). • The Regulations contain two basic procurement processes: – Open tendering - without use of a pre-qualification questionnaire process – Restricted tendering – usi

107. Slide 107: Procurement Process: Assessing Service Providers

     Procurement Process: Assessing Service Providers • We use the government standard pre-qualification questionnaire which contains questions on: – Legal standards compliance; – Company information; – Financial Information; – References; and, – Technical. • We set evaluation criteria against the essent

108. Slide 108: Suffolk Highway Services Contract

     Suffolk Highway Services Contract Suffolk County Council Mission Statement: ‘We will make a positive difference for Suffolk. We are committed to working together, striving to improve and securing the best possible services’ The ‘early years’ (October 2013 to August 2015): • Great contract mobilisati

109. Slide 109: Ten months of change…

     Ten months of change… • Punitive operational performance measures ditched • Performance management now based on achieving ‘outcomes’ • Most outcomes revolve round ‘customer satisfaction • Kier no longer acting as Suffolk County Council’s financier! • Integrated teams being formed for function-based

110. Slide 110: The not-too-distant future…

     The not-too-distant future… • A holistic, leaner, integrated highways service • True and formally endorsed collaboration – ISO11000 • Long-term perspective (2023) taken, allowing investment • Partners in a circa £50m p.a. business • ‘Suffolk Highways’ delivering services to private clients in Suffol

111. Slide 111: Finally, a bit of Suffolk fun…

     Finally, a bit of Suffolk fun… “Ed Sheerham!” The must-see event of the summer! The streets of Ipswich have been taken over by stunning pig sculptures as part of the highly anticipated Pigs Gone Wild interactive art trail. The 39 large pig sculptures will be auctioned to raise funds for St Elizabeth

112. Slide 112: Thank you…

     Thank you... =" County Council

113. Slide 113: Scott Cooper, Service Director Highways

     Scott Cooper Service Director Highways 113

114. Slide 114: Area 3 Team

     Area 3 Team Scott Cooper Rees Evans Kevin Cotterall Service Director Contracts Director Operations Manager Highways Area 3 Area 3 114

115. Slide 115: Area 3 overview

     Area 3 overview  First contract started in 2008  Current contract: 1 November 2013  Contract period: 5 years (with possible extension to 8 years) Asset 410 employees Miles Route length 321 Road Restraint (Barrier) 569 Carriageway length 778 Bridges / Large Culverts 747 Lane length 1780 Hindhead

116. Slide 116: Area 3 network map

     Area 3 network map OXFORDSHIRE snertora woodtane WILTSHIRE Ef SURREY (24 nr Emetigency Resource for A3) DORSET — cs engleng EIKIER aa So omc Fae mera Beging’

117. Slide 117: Scope of Area 3 contract

     Scope of Area 3 contract  Integrated network management identification of need, design, maintenance, improvement activities, incident management, event management and contingency planning on the all-purpose trunk roads and motorways  All routine road and bridge maintenance works, including winter

118. Slide 118: Area 3 senior management

     Area 3 senior management AN INTEGRATED BOARD Performance Highways England Priorities  Health and Safety  Safety  Cost  Customer  Quality Asset Highways Area 3 Contract Asset Delivery Development England Service Director Manager  Road building  Sustainabillity Manager Director Rees Evans Simon

119. Slide 119: Performance (%)

     Performance (%) Area 3 Position Area 2 Area 3 Area 6 Area 8 Area 9 Area 10 ASC PMF Nov-13 Dec-13 1st 1st 52 44 56 54 N/A N/A N/A N/A N/A N/A 39 46  Collaborative scores Jan-14 Feb-14 1st 1st 36 42 54 49 N/A N/A N/A N/A N/A N/A 31 30 performance framework (Nov 13 - Mar 15) Mar-14 1st 50 54 N/A N/A N

120. Slide 120: Asset delivery - Network control centre

     Asset delivery - Network control centre Primary tasks include:  Single point of contact for HA Regional Control Centre (RCC)  Command and control of incidents  Monitoring and deployment of incident resources  Tunnel operations  Network occupancy (Road Space)  Stakeholder liaison, incl. HA Info

121. Slide 121: Selected supply chain community members

     Selected supply chain community members 121

122. Slide 122: Area 3 team successes

     Area 3 team successes  Highways England Supply Chain Awards 2016  Inclusion for First Military  Supply Chain Management for BS11000 Alliance  Chartered Institute of Highways and Transportation (CIHT) 2016  Supply Chain Management  Health and Safety  BS11000 Accreditation  Area 3 Alliance Mod

123. Slide 123: Kier Group plc Infrastructure Services Seminar 6 July 2016

     Kier Group plc Infrastructure Services Seminar 6 July 2016 123

Kier Group — Investor Day (July 2016) on 6ix