Serco Group Plc · LSE:SRP

Serco — Citi Support Services Conference 2008

15 slides from Serco's conference presentation, Mar 28, 2008

  1. Slide 1: Serco Group plc Presentation to Citi Support Services Conference

    Serco Group plc Presentation to Citi Support Services Conference Presented by Clive Barton, Group Marketing Director 28 March 2008 Advise | Design | Integrate | Deliver

  2. Slide 2: Agenda

    Agenda „ Our business „ Expanding market opportunities „ Our vision and strategy „ Track record and 2007 performance „ Outlook 2

  3. Slide 3: Our business

    Our business „ 40 years’ experience in people-led change management – redesigning organisations to deliver service transformation – improving processes and empowering people „ Skills applicable to many markets and sectors „ Strong public service ethos focused on delivering the best for our customers

  4. Slide 4: Examples of our services

    Examples of our services „ We improve patient care with our health services „ We rehabilitate offenders in our prisons „ We protect borders through technology „ We provide swift, safe travel with our trains and transport systems „ We help young people learn in the schools and training centres we man

  5. Slide 5: Expanding market opportunities

    Expanding market opportunities „ Public sector is under pressure to improve existing services and reduce costs „ Governments also under pressure to respond to new and increased challenges – Climate change, migration, security, congestion, economic development „ Opportunity to reduce complexity for c

  6. Slide 6: Our vision

    Our vision „ To be the leading service company in our chosen markets „ Our delivery of this vision is underpinned by – strong values – long-term relationships – world-class systems, processes and people „ These are built on our reputation for – continuous improvement – organic growth – value creatio

  7. Slide 7: Our strategic objectives

    Our strategic objectives „ Build a balanced portfolio of market facing businesses „ Maintain high rebid and new win rates „ Make strategic acquisitions for new skills or market entry „ Develop new models in existing and emerging markets This enables us to grow sustainably because we: „ Strengthen ou

  8. Slide 8: Balanced portfolio of market facing businesses

    Balanced portfolio of market facing businesses 2007 Revenue by market „ Service not sector driven: core skills applicable across sectors and markets 26% 34% „ Not constrained by sector or geography 23% 17% „ Gives exposure to rapidly growing markets Civil Government Science Defence „ Reduces our exp

  9. Slide 9: Maintaining high rebid and win rates

    Maintaining high rebid and win rates „ High win rates maintained through building close customer relationships and addressing customers’ evolving needs „ Contract directors empowered to respond to customer needs through innovation and continuous improvement – supported by a robust risk management an

  10. Slide 10: Strategic acquisitions

    Strategic acquisitions „ Primary focus is on organic growth „ Acquisitions to gain entry to chosen markets – RCI significantly broadened footprint in the US defence market f delivered major wins such as LOGCAP IV and Sea Enterprise „ Acquisitions to broaden skills and capabilities – ITNET brought si

  11. Slide 11: Developing new models

    Developing new models We develop new ways of working to respond to emerging market opportunities and developing customer needs, such as: „ creating bespoke products through cross-divisional collaboration „ working with external partners in joint ventures „ bringing together skills from public, priva

  12. Slide 12: Track record of growth

    Track record of growth Revenue Adjusted profit Free cash flow before tax 98 2,811 123 2,548 85 105 2,260 74 87 1,637 56 1,556 69 £m £m £m 63 47 2007 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2003 2004 2005 Note: adjusted profit before tax is profit before tax and amortisation of acquire

  13. Slide 13: 2007 highlights

    2007 highlights „ Revenue growth of 10.3% driven by buoyant UK and international markets „ 30 basis points of margin improvement with adjusted PBT up 17.3% „ Free cash flow increased 14.3% „ Strong bidding performance – won more than 90% of rebids and one in two new bids – £3.6bn of contracts signed

  14. Slide 14: Outlook

    Outlook „ UK and international markets continue to generate increasing opportunities „ Significant contract wins and £27bn pipeline of opportunities underpin positive outlook „ Confident of double digit revenue growth for foreseeable future „ Expect further margin improvement in both 2008 and 2009 1

  15. Slide 15: Serco's distinctive strengths

    Serco’s distinctive strengths „ Serco has: – 40 years’ experience of people-led change management – significant exposure to rapidly growing markets – deep public-service ethos and culture – robust risk management and corporate governance – excellent reputation for assured service delivery – proven a

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