United Utilities Group PLC · LSE:UU.
United Utilities — Investor Presentation (May 2022)
37 slides from United Utilities's investor presentation, May 2022
Slide 1: Customer Listening Research Report
Customer Listening Research Report May 2022
Slide 2: What we'll cover today
Preston What we’ll cover today… 1. Background, objectives and method 2. Consumer views of water provision and their environmental priorities 3. Reactions to the four-part plan to improve river health and recreation Warrington 4. Summary of the key findings Kendal Copyright © United Utilities Water L
Slide 3: Background, objectives and method
1. Background, objectives and method
Slide 4: A need for live and unfiltered feedback from customers
A need for live and unfiltered feedback from customers United Utilities made a commitment to Ofwat that as part of its plan to engage and Manchester foster trust among its customers, it would hold a series of listening sessions where members of the Executive and Board could hear live and unfiltered
Slide 5: We ran six focus groups across the five United Utilities regions
We ran six focus groups across the five United Utilities regions We engaged with a good mix of customers and a group of future customers (16-18 year olds) Life-stage Location Dates Other criteria Our United Utilities attendees 2x pre-family Mix of males and females Manchester, 1 3x family Weds 27t
Slide 6: Ofwat standards for high-quality research
Ofwat standards for high-quality research Ofwat have set out requirements for High Quality Research in their Customer Engagement Policy. All water company research and engagement should follow best practice and lead to a meaningful understanding of what is important to customers and wider stakeholde
Slide 7: Consumer views of water provision and their environmental priorities
2. Consumer views of water provision and their environmental priorities
Slide 8: There was a lack of engagement with water
There was a lack Most customers had: • Never had a problem with their water supply of engagement • Never needed to deal with UU beyond paying bills with water • Never directly experienced a ‘pollution incident’ “I turn the tap on and the water’s there – I’m not thinking deeply about it!” Copyright ©
Slide 9: Only a minority were aware of United Utilities' work and responsibilities
Only a minority were aware of United Utilities’ work & responsibilities Amongst the more engaged, there’s recognition that United Utilities is a big business with a lot to look after… • Provide water via an antiquated Victorian infrastructure • Wastewater is a crucial part of water supply • Involved
Slide 10: United Utilities was typically viewed positively
United Utilities was typically “We’re blessed to have United Utilities – the water viewed positively – there’s belief here is fresher and softer that we’re doing a good job compared to London.” Consistently reliable service Lower cost than other utilities Where there have been issues with supp
Slide 11: Only a minority had a few concerns and questions about United Utilities
Only a minority had a few “I pay a lot compared to my daughter’s bill, but why concerns and questions when she’s a family of four? about United Utilities I can’t work that out!” • Why is my bill so high given what I use? • How much profit does United Utilities make? • I can’t change supplier so how
Slide 12: River health was not a top-of-mind environmental concern
River health was not a top- “To be honest with you – of-mind key environmental rivers? Not really, no. I’ve not thought about it.” concern for customers Copyright © United Utilities Water Limited 2019 12
Slide 13: Customers looked to tangible environmental issues in everyday lives
Customers typically looked to the tangible environmental issues with a bearing on or visibility in their everyday lives • Litter • Cars / air pollution • A lack of usable green space in urban areas • Flooding* • Dirty canals “The litter is horrendous all • Use of plastic around Manchester”. *Custome
Slide 14: When prompted, customers agreed river health is important
When prompted, “We don’t know if our rivers are safe to swim in. Locals won’t let customers agreed river their kids paddle – there’s a health is important belief it’s polluted by sewage”. • There are some clearly polluted rivers across the NW • Rivers might be better than they were years ago, but ma
Slide 15: Location has an impact on how customers engage with water
Location has an impact on how customers engage with water Cumbrians were typically Urban customers can be less Those that had been close to more engaged as water can engaged with water-focused flooded areas or knew people be very important to their environmental issues than impacted by flooding were
Slide 16: Future customers (16-18) were sometimes as or more engaged
Future customers (16-18) were sometimes as or more engaged with water, United Utilities and the environment than the adults 1. Learned about the importance of saving water at school “As a generation, we’ve been 2. Learned about the water cycle and the role of brought up with it. Like ‘Planet organis
Slide 17: Reactions to the four-part plan to improve river health and recreation
3. Reactions to the four-part plan to improve river health and recreation
Slide 18: The four-part plan for river health
Ensuring our operations progressively reduce 1. harmful impacts on river health Being open and transparent about our 2. performance and our plans Making rivers beautiful and supporting others to 3. improve and care for them Creating more opportunities for everyone to 4. enjoy rivers and waterways
Slide 19: Reducing harmful impacts on rivers was the most important goal
Reducing harmful impacts on rivers (goal 1) was considered the most important goal Being open and accountable (goal 2) was considered crucial for its success (assuming the comms. are proactive, simple and engaging) Copyright © United Utilities Water Limited 2019 19
Slide 20: Customers urged focus on goals 1 and 2
Customers’ urged United Utilities to focus on goals 1 & 2 rather than an attempting to do all 4 and spreading itself too thinly “It’s impressive, but is it realistic? Should they focus on one thing at a time and get the really important things sorted?” Copyright © United Utilities Water Limited 2019
Slide 21: The four goals made sense as a set and as a flow
The four goals made sense as a set and as a ‘flow’ 1. Take care of the big pollution issues as a priority (goal 1) 2. Make sure you’re accountable for your promises (goal 2) 3. By taking care of goal 1, it creates the platform for better collaborative care of rivers (goal 3) 4. If rivers are healthy
Slide 22: Achieving the goals will boost trust in United Utilities
Achieving the goals will boost trust in United Utilities Pledging to make positive changes to river health and communicate openly about performance suggests United Utilities is looking beyond profits. “They’re saying they’re United Utilities is at least trying to do accountable and they’re something
Slide 23: Being local is key to customer engagement
Being local is key to “Be local, focus on customer engagement communities – it sticks out more when it’s Macro goals and associated efforts and where you live” communication need to grounded in ‘local’. Copyright © United Utilities Water Limited 2019 23
Slide 24: Reluctance to pay more to help achieve the goals
There was a reluctance to pay more to help United Utilities achieve the goals • Bills are high enough • Times are financially tough for a lot of households • United Utilities makes profits, so the money should come from that Copyright © United Utilities Water Limited 2019 24
Slide 25: Reduce harmful impacts on river health
Ensuring our operations progressively reduce 1. harmful impacts on river health a) Deliver a significant reduction in pollution caused by sewer water entering rivers by 2030 b) No serious pollution incidents caused by United Utilities c) Monitor the impact of any sewer water entering the river syste
Slide 26: Goal 1
Goal 1 River health isn’t an issue that is visible and prominent for many as they go about their day-to-day lives. However, once goal 1 was seen and understood, there was a desire for “This should be the benchmark United Utilities to take every action already. Why aren’t they doing to reduce harm to
Slide 27: Goal 1
Goal 1 More engaged customers wanted greater clarity: What do “significant” and “serious” mean? What would a reduction of a third or 50% really mean? How exactly will these goals be achieved? “These are difficult to argue with, What has already been achieved or started? but we need to know more. The
Slide 28: Being open and transparent about our performance and our plans
Being open and transparent about our 2. performance and our plans a) Ensure all sewer water entering rivers from storm overflows is monitored by 2023 b) Provide easy access to timely data when there has been a sewer water discharge c) Publish an annual report on storm overflows d) Provide total tran
Slide 29: Goal 2
Goal 2 There was an expectation that United Utilities will be required to make its actions, achievements and issues public. Transparency was often “This should just be getting done considered essential if the goal of anyway! It’s normal data that companies should be providing. If reducing harmful im
Slide 30: Goal 2
Goal 2 Customers’ advice on openness and transparency was very clear: 1. Go to them - use Instagram and its ‘influencers’, Facebook, TikTok, local newspapers, local news & weather, local radio and door drops “It’s got to be so simple – most 2. Communicate in the places people are using won’t underst
Slide 31: Making rivers beautiful and supporting others to improve and care for them
Making rivers beautiful and supporting others to 3. improve and care for them a) Incentivise farmers to change existing practices to reduce negative impacts on river quality b) Promote responsible development by supporting the removal of the automatic right to connect drains on new housing estates/
Slide 32: Goal 3
Goal 3 River beauty wasn’t often spontaneously mentioned as a top-of-mind environmental concern (unless it was part of a wider concern about litter). However, once these goals were seen and understood there was a desire for United Utilities to take every action to improve rivers collaboratively. “It
Slide 33: Creating more opportunities for everyone to enjoy rivers and waterways
Creating more opportunities for everyone to 4. enjoy rivers and waterways a) Make sure that 95% of customers will be no further than 30 miles from bathing water b) Play our part in creating and promoting additional inland bathing waters in the North West c) Create a number of new water-based clubs (
Slide 34: Goal 4
Goal 4 Access to rivers and waterways is undeniably positive and can make a tangible difference to customers’ enjoyment of the NW. However, access to rivers and waterways is not a necessity and was “If you want to do this sort of thing, not deemed as important as the you can already do it. The main
Slide 35: Goal 4
Goal 4 Our young participants could see how recreation opportunities would directly benefit them. They were looking for new ways to entertain themselves, to relieve boredom. They considered this goal “One of the reasons I don’t do much more relevant and important. is because there isn’t much to do.
Slide 36: Summary of key findings
4. Summary of key findings United U utilities Water for the North West
Slide 37: Summary: river health important when prompted
River health was not a top-of-mind key environmental customer concern, but when prompted, customers agreed river health is important Reducing harmful impacts on rivers (goal 1) was considered the most important goal Being open and accountable (goal 2) was considered crucial for its success (assuming
United Utilities Group — Investor Presentation (May 2022) on 6ix