United Utilities Group Plc · LSE:UU.

United Utilities — Investor Day (March 2020)

98 slides from United Utilities's investor day presentation, Mar 2, 2020

  1. Slide 1: Capital markets day 2 March 2020

    Capital markets day 2 March 2020 United Utilities Group PLC

  2. Slide 2: Steve Mogford, Chief Executive

    Capital Markets Day Steve Mogford Chief Executive

  3. Slide 3: A purpose led company

    A purpose led company Our strategic themes, in place since 2011, drive how we work towards delivering our purpose The best At the lowest In a service to sustainable responsible customers cost manner Continuity and stability of approach has provided the platform for transformation in performance for

  4. Slide 4: A strong track record of leading on ESG

    A strong track record of leading on ESG Significant achievements against environment, social and governance 2000 2009 Business in the Business in Community the Community ‘Company of the year’ ‘Company of the year’ AMP3 AMP4 AMP5 AMP6 2001 2014 2019 Established 2005 2006 Early adopter Achieved direct

  5. Slide 5: Our approach from AMP6 to AMP7

    Our approach from AMP6 to AMP7 Our strategy has played out and delivered Accelerated Delivering Sharing investment outperformance outperformance Sustained AMP6 Fast track Created the dividend business plan right culture Accepted the FD and maintained UUG dividend into AMP7 United Utilities • Capital

  6. Slide 6: Summary of UUW's final determination

    Summary of UUW’s final determination A balanced settlement overall Increasing resilience through +1.5% 13.8% Haweswater Aqueduct Resilience Programme (HARP) real reduction in average bills Delivering for 110km long the environment Targeting -1.8% UUG dividend 20% reduction £5.8bn in pollution mainta

  7. Slide 7: Agenda

    Agenda Morning (10.30 – 12.00) Afternoon 1 (12.30– 14.30) Afternoon 2 (15.00-16.30) Steve Mogford Jo Harrison Louise Beardmore Chief Executive Environment and Asset Customer Services and Totex Strategy Director People Director Performance commitments Customer and people James Bullock Strategy and Re

  8. Slide 8: Totex allowance increased from draft determination

    Totex allowance increased from draft determination £5.8bn AMP7 totex allowance AMP7 net totex allowances (£m) 50:50 customer sharing ratio £5,798m £5,564m £475m £508m Weighted average PAYG of 59.6% £5,323m £5,056m - aligned to the natural rate Draft Determination Final Determination £57m HARP allowa

  9. Slide 9: Totex run rate on target

    Totex run rate on target AMP6 investment delivering efficiencies to be sustained into AMP7 Totex1 1,600 1,400 1,200 Capex 1,000 Capex Capex £m 800 600 Opex Opex Opex 400 & & & 200 IRE IRE IRE 0 2015/16 2019/20 AMP7 FD average Source: Company PR19 business plan submission, September 2018 and Final De

  10. Slide 10: Already delivering efficiencies

    Already delivering efficiencies AMP6 focus on innovation, market testing and cost challenge delivering efficiencies required for AMP7 Innovation Market testing Cost challenge Identified as having the most Market Engagement Risk and value assessment embedded culture of innovation Methodology to procu

  11. Slide 11: Summary

    Summary AMP6 strategy has delivered and gives confidence for AMP7 AMP6 strategy has delivered Already implementing plans for AMP7 Relentless Fast Most track focus on embedded status customers culture of achieved Confident of innovation delivering efficiencies Stretching required to meet service targ

  12. Slide 12: James Bullock

    Capital Markets Day James Bullock Strategy and Regulation Director

  13. Slide 13: The Haweswater Aqueduct

    The Haweswater Aqueduct Our largest potable Up to water delivery system 2.6m diameter 110km long Delivery of up to 570 million litres per day to 2.5 million people Through 18 As well as supplying separate off takes Manchester United Utilities • Capital Markets Day 13

  14. Slide 14: The Haweswater Aqueduct

    The Haweswater Aqueduct 16 tonnes of water, carried by gravity every minute It takes 36 hours for water to travel from It fills 1 Olympic swimming top to the pool every 6 minutes bottom United Utilities • Capital Markets Day 14

  15. Slide 15: Haweswater Aqueduct Video

    Haweswater Aqueduct Video Water for the North West

  16. Slide 16: Securing long-term regional resilience

    Securing long-term regional resilience Timeline The Haweswater Aqueduct (HA) Outage findings 1919 - 1955 • Construction of the HA took place The outage identified Construction of HA between 1919 – 1955, during a period two principle risks 1958 - 1974 of material and skill shortages as a Additional r

  17. Slide 17: Securing long-term regional resilience

    Securing long-term regional resilience We prioritised We assessed the options to secure resilience the highest risk • Over 300 options considered Hallbank section of the aqueduct • We engaged with over 2,300 household and non-household identified as most customers to understand their views immediate

  18. Slide 18: Haweswater Aqueduct Resilience Programme

    Haweswater Aqueduct Resilience Programme Direct Procurement for Customers Pathfinder • First major project to be subject to Direct Procurement for Customers approach • Pathfinder project for Ofwat • Secures resilience for UU customers • c£57m initial allowance to enable procurement and planning acti

  19. Slide 19: Direct Procurement for Customers

    Direct Procurement for Customers Progressing the scheme PR19 Business Pre-CAP Construction Contract in Plan Contract Activity Tender Activity Period Operation The Manchester & Need confirmed by Ofwat Contract negotiation and Detailed design and c.25 year financed solution Pennines Resilience in Fina

  20. Slide 20: Russ Houlden

    Capital Markets Day Russ Houlden Chief Financial Officer

  21. Slide 21: Best in class pensions position

    Best in class pensions position Relative valuations should reflect pensions positions 2019 Full normalised IFRS 2 132p/share 1 Full IFRS 4 102p/share Based on 8 analysis presented in our 2019/20 half year results No adjustment 0 0p/share United Utilities • Capital Markets Day 21

  22. Slide 22: Best in class pensions position

    Best in class pensions position Relative valuations should reflect pensions positions Mar-19 IFRS pension surplus / (deficit) (£m) 600 400 £484m 200 Severn £74m £4m South West Welsh Northumbrian Wessex Southern Thames Trent - United Yorkshire Anglian (£96m) (£109m) Utilities (£22m) (£140m) (£187m) (

  23. Slide 23: Best in class pensions position

    Best in class pensions position The importance of self-sufficiency Basis of Typical discount rate United Utilities Objective surplus / deficit applied to liabilities (Mar-19) Intercompany comparison IFRS (full disclosure of Gilts +70/+110 £484m surplus assumptions) Stepping stone to Funding ? £nil s

  24. Slide 24: Best in class treasury management

    Best in class treasury management Track record of delivering significant financing outperformance Financing outperformance1 in AMPs 5 and 6 AMP7 Confident of delivering further outperformance AMP5 AMP6 >£500m >£500m Quantum subject to outturn inflation Further guidance to follow 1 Pre-tax on an actu

  25. Slide 25: £2.2bn financing to raise in AMP7

    £2.2bn financing to raise in AMP7 Existing debt locked in at rates favourable to the AMP7 allowed cost of embedded debt Projected debt portfolio 9,000 8,000 7,000 6,000 Floating rate debt £million 5,000 2.9% 2.6% Fixed rate debt 4,000 2.5% 2.3% 2.3% 2.5% 2.6% 2.6% 2.6% 2.5% 0.2% 0.1% 2.8% CPI-linked

  26. Slide 26: The benefit of our treasury policies and treasury excellence

    The benefit of our treasury policies and treasury excellence We typically outperform the index for new debt by 50-100bps The iBoxx A/BBB 10 yrs+ non-financials index minus 15bps UU funding iBoxx yields compared with UU funding 4.00 Shaded area shows the yield differential between A index minus 15bps

  27. Slide 27: Strong balance sheet underpins financial performance

    Strong balance sheet underpins financial performance Robust capital base giving high degree of resilience and financial flexibility * Under review for downgrade Moody's ratings1 A3 stable outlook Water and * * * wastewater company A3 –ve outlook Baa1 +ve outlook Water only company Baa1 stable outloo

  28. Slide 28: Private placements

    Private placements Targets set c20bps within public bond prices Monitor multiple Targets set Case study 1 currencies and forms for c20bps within best relative value public bond market prices GBP 32,000,000 notional amount Rapid evaluation of emerging Take advantage opportunities through CFO of speci

  29. Slide 29: Public bond issues

    Public bond issues EMTN programme allows quick mobilisation when opportunities present Monitor GBP and EUR Longer dated Case study 2 markets for transaction targeted due to best relative value market conditions and GBP 250,000,000 investor demand notional amount Rapid evaluation of emerging opportun

  30. Slide 30: Strong track record, well positioned for the future

    Summary Strong track record, well positioned for the future Treasury Pensions Treasury policies lead to Track record excellence gives a significant driver of delivering financing of relative value best credit outperformance future cost ratings savings United Utilities • Capital Markets Day 30

  31. Slide 31: Capital Markets Day Q&A

    Capital Markets Day Q&A

  32. Slide 32: Jo Harrison

    Capital Markets Day Jo Harrison Environment and Asset Strategy Director

  33. Slide 33: AMP7 performance commitments

    AMP7 performance commitments Headlines… Developed bespoke commitments through extensive customer and stakeholder research. Incentivising the things that are important to them Robust plans for measures that assess our relative performance with the rest of the industry AMP7 – bigger financial opportun

  34. Slide 34: AMP7: Customer commitments: Outcome Delivery Incentives (ODIs)

    AMP7: Customer commitments: Outcome Delivery Incentives (ODIs) 46 commitments across our full end to end The natural service delivering the Your drinking You have a reliable environment is outcomes that are important water is safe supply of water now protected and to customers with rewards and clean

  35. Slide 35: AMP7: Customer commitments: Outcome Delivery Incentives (ODIs)

    AMP7: Customer commitments: Outcome Delivery Incentives (ODIs) 46 commitments across our full end to end 7 Comparative The natural Measuring against the sector with comparative targets service delivering the Your to -£252m drinking +£128m You have a reliable environment is outcomes that are importan

  36. Slide 36: Ambition and innovation across our performance commitments (PCs)

    Ambition and innovation across our performance commitments (PCs) We have co-developed with our customers some really innovative PCs that are important to them, they are industry leading and with incentives that provide good opportunities for outperformance First in the industry to commit to tackling

  37. Slide 37: Robust plans across our industry comparative and common commitments

    Robust plans across our industry comparative and common commitments ….. …. and we have already started Smarter networks, increased visualisation Accelerated and predictability investment with a flying start Central planning and decision making Systems capability Thinking & Innovation Embedded innova

  38. Slide 38: Ensuring our customers have a reliable supply of water

    Ensuring our customers have a reliable supply of water Performance improvements across our core services now... ...and with extra resilience for the future £ 14:00 Customer minutes lost 12:00 10:00 08:00 Investing in a Predictive Real time data 06:00 04:00 Flying Start analytics & A.I. integration S

  39. Slide 39: Ensuring our customers have a reliable supply of water

    Ensuring our customers have a reliable supply of water Utilising new technologies, as well as data analytics, to find leaks we couldn’t find before and fix them more quickly… 0 Reduction from AMP7 improvement plans 2019/20 (Ml/d) -20 -40 -60 40 Ml/d reduction -80 £9m annual totex savings -100 Leakag

  40. Slide 40: Drinking water in the North West is safe and clean

    Drinking water in the North West is safe and clean £ 3 2.5 Compliance Risk Index score 2 1.5 Investing in a Worlds first Online interactive 1 Flying Start UV-LED self-serve advice Water 0.5 treatment quality 0 System optimisation to Customer self serve New measure therefore no ensure microbiological

  41. Slide 41: ODIs across our wastewater network operations to reduce flooding risk

    ODIs across our wastewater network operations to ensure the risk of flooding is reduced £ 23 Number of sewer blockages 22 reported and cleared (‘000s) 21 20 19 18 Investing in a Customer Blockages 17 AMP5 AMP6 2020/21 2021/22 2022/23 2023/24 2024/25 Flying Start behaviours Over 2,000km of sewer We a

  42. Slide 42: Incentivising a reduction in risk from hydraulic flooding

    Maximising the opportunities by incentivising a reduction in risk from hydraulic flooding Modelled internal incidents 62 £45.9m reward 61 £40.7m penalty £ 60 59 58 Hydraulic 57 Investing flood risk: 56 Internal Over £25m of expenditure to increase sewer capacity including both; Surface water removal

  43. Slide 43: The natural environment is protected and improved

    The natural environment is protected and improved in the way we deliver our services £ 100 Percentage of 98 treatment works 96 compliant with Compliance AMP5 AMP6 2020/21 2021/22 2022/23 2023/24 2024/25 discharge permits Over £50m of investment on sewer enhancement, sewer requisitions and 80 adoptio

  44. Slide 44: Natural Capital = added value for everyone

    Natural Capital = added value for everyone Measures supporting our climate change and circular economy strategies that are changing how the industry and regulators do business! Modelling Natural Flood Management interventions Wyre for multiple benefits and Natural Capital Natural Capital developing

  45. Slide 45: Natural Capital = added value for everyone

    Natural Capital = added value for everyone Encouraging alternative solutions to ensure additional value through ODI outperformance The six Natural Capital Natural £5.5m reward measured Decision making Capital ODI £2.0m penalty ecosystem Including natural capital services valuation in internal New OD

  46. Slide 46: In Summary: Opportunities across the plan to unlock outperformance

    In Summary: Opportunities across the plan to unlock outperformance… Optimised investment plan for multiple benefit Industry leading technologies backed by industry leading innovation culture Systems thinking enabling a data driven proactive approach Projected P10 underperformance payments and P90 ou

  47. Slide 47: Simon Chadwick

    Capital Markets Day Simon Chadwick Digital Services and Central Operations Director

  48. Slide 48: Key Differentiators

    Key Differentiators Water for the North West

  49. Slide 49: Systems Thinking

    Systems Thinking A system is a set of elements that are interconnected and work together to serve a common function or purpose. Systems thinking involves learning about the individual components of a system and how they interact in order to start to identify patterns of behaviour and therefore predi

  50. Slide 50: Capability model design

    Capability model design Our capability model Asset planning defines the 8 key System optimisation Work execution and delivery and provision capabilities required to deliver our Systems Customer experience Thinking operating strategy. Operational Water Water monitoring resources network+ Asset Produc

  51. Slide 51: Systems Thinking Capability Maturity

    Systems Thinking Capability Maturity Operational Monitoring Example 5 4 3 2 1 Maturity level 1 Maturity level 2 Maturity level 3 Maturity level 4 Maturity level 5 Event led human driven Centralised view of Technology enabled, Machine-led system Machine intelligence analytics network status standardi

  52. Slide 52: Gavin Moore, Accenture

    Gavin Moore Accenture United Utilities • Capital Markets Day 52

  53. Slide 53: Securing benefits from Systems Thinking

    Securing benefits from Systems Thinking An example Systems integration at a catchment scale is delivering benefits for our AMP7 plan Our industry leading work with the EA has resulted in five of our defined environmental obligations for AMP7 (WINEP) being set to follow this approach, saving a total

  54. Slide 54: Our Innovation Model

    Our Innovation Model Lab 1 - 3 suppliers awarded contracts Academic Lab 2 – 4 promising ODI related research to scale-up innovations (e.g. blockage prediction) We have an established innovation model that The 4 core components of our innovation model has delivered £445m of total savings through inno

  55. Slide 55: Exploiting Digital Technology

    Exploiting Digital Technology Our technology strategy is focused on leveraging value through the investment made in AMP6. This is now enabling us to exploit this technology across AMP7 to deliver performance & cost benefits. Sensors Data & Analytics Machine Intelligence • An existing fixed sensor ne

  56. Slide 56: Innovation + Digital + Systems Thinking - the showcase

    Innovation + Digital + Systems Thinking- the showcase The West Cumbria project is providing a new water supply to 150,000 customers This major investment in a pipeline and new water treatment works is an ideal opportunity to establish a new benchmark for advanced operation of a water system. WSZ004

  57. Slide 57: Case Studies

    Case Studies Water for the North West

  58. Slide 58: Customer Minutes Lost

    Customer Minutes Lost Blending technology, systems thinking and investment to deliver a step-change in comparative performance Customer Minutes Lost - ODI Penalty/Reward 2018/19 What is the ODI? 12.5 This measure incentivises the delivery of less interruptions to water supplies to customers. This is

  59. Slide 59: Customer minutes lost: industry performance

    The industry has been challenged to improve performance on this important customer measure Customer minutes lost 25 20 Minutes 15 10 5 0 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 Industry average performance AMP7 targets UU performance UU latest performance Unit

  60. Slide 60: Customer Minutes Lost ODI - AMP6 performance

    Customer Minutes Lost ODI- AMP6 performance A 39% improvement and an ODI reward forecast of £17.2m. Well placed for the AMP7 ODI target and supporting overall customer satisfaction 00:18:43 00:15:50 00:12:58 00:10:05 Miutes lost 00:07:12 00:04:19 00:01:26 2015/16 2016/17 2017/18 2018/19 2019/20 Fore

  61. Slide 61: Thinking differently about how we tackle sewer flooding

    We are thinking differently about how we tackle sewer flooding Systems Thinking capability maturity for wastewater 5 4 3 2 1 Maturity level 1 Maturity level 2 Maturity level 3 Maturity level 4 Maturity level 5 Event led human driven Centralised view of Technology enabled, Machine-led system Machine

  62. Slide 62: Predicting Sewer Flooding

    Predicting Sewer Flooding Predicting instead of responding to sewer flooding is where our innovation is focussing High rainfall Sewer Sewer spilling/ leading to sewer spilling/flooding flooding stops once flooding due to blockage blockage removed Traditional Water Company: • Blockage took 3 days to

  63. Slide 63: Meet EDDS (Event Duration and Detection System) our latest AI

    Meet EDDS (Event Duration and Academic partnerships Detection System) our latest AI Combined Sewer Overflow Level Prediction and Near Real-Time Detection of Blockages in Smart Wastewater Systems • Over the last 5 year we have enhanced our • Our capability has come from well sensor network with over

  64. Slide 64: EDDS Performance – Proof of Concept

    EDDS Performance – Proof of Concept Sewer flooding is predicted by EDDS 99% faster than a traditional detection approach Blockage Start Blockage Detected Blockage Removal EDDS: 3 Days • Blockage predicted after 105 minutes vs 3 days with a traditional monitoring process • No false alerts created Det

  65. Slide 65: A strong track record of innovation in leakage

    We have a strong track record of innovation in leakage Customer Leak Finder App Delivering our strategy Utilising new technologies, as Leak well as data analysis, to allow Leak detection Sniffer Dogs us to find leaks we couldn’t repair find before and fix them more quickly… Satellites Leak preventio

  66. Slide 66: Breakthrough innovation co-created for AMP7

    Breakthrough innovation co-created for AMP7 Exploiting digital technology with our advanced mobile sensor network The Innovation – Digital Ear Increased Accuracy & Efficiency Asset Mapping & Visualisation • 3 Mobile Sensors • AI software pinpoints leak • AI software confirms pipe and • Tech from out

  67. Slide 67: Continuing innovation development to maximise business benefit

    Continuing innovation Ways of working Technology development development to maximise business benefit Our first mover advantage has created a strong relationship with an innovative company Integration Optimisation Co-location at From water to wastewater our test centre Co-creation Flooding United Ut

  68. Slide 68: Summary

    Summary • Our mature and proven approach to systems thinking and innovation is externally recognised as being the most advanced in the sector and is a cornerstone of our AMP7 plan. • Combining this with the adoption rate of disruptive digital technologies means we are finding new innovative solution

  69. Slide 69: Capital Markets Day Q&A

    Capital Markets Day y United Water for the North West

  70. Slide 70: Louise Beardmore

    Capital Markets Day Louise Beardmore Customer Services and People Director

  71. Slide 71: Customer Services Strategy

    Customer Services Strategy Great Service Costs Less We have a clear strategy in place delivering new services and capabilities to position us now and in the future… Reducing costs …and at the same time we are Improving responding to the unique Service demographics of our region. Innovating for now a

  72. Slide 72: Driving efficiency – great service costs less

    Driving efficiency – great service costs less AMP7 Efficiency Total efficiencies in AMP6 = £165m Total efficiencies in AMP7 = £57m £106 £97 £96 £95 £93 £90 £m FY20 FY21 FY22 FY23 FY24 FY25 Regulatory costs Efficiency United Utilities • Capital Markets Day 72

  73. Slide 73: Step change in service performance

    SIM Improvements 4 year SIM qualitative scores 2015/16 to 2018/19 Step change in 4.6 service performance 4.5 4.4 4.3 We have delivered an improvement 4.2 in customer service levels by… 4.1 2015/16 2016/17 2017/18 18/19 Cultural focus on the customer United Utilities Industry Average Implementing new

  74. Slide 74: Tackling customer bad debt

    Tackling customer bad debt Driving down bad debt Improving Credit Enforcement Affordability Town Payment plan data sharing schemes action plan optimisation Household regulatory bad debt charge across AMP6 (£) 80 75 75 70 Household regulatory In the last 65 60 bad debt charge (£m) 12 months 60 • New

  75. Slide 75: Customer Services External Recognition

    Customer Services External Recognition Recognised across all areas of Customer Services; complaints handling, vulnerable customer support, 25 customer engagement, collection and debt Awards management to name but a few 15 Customer Services 10 Collections and Debt Management External accreditations;

  76. Slide 76: What's different this AMP

    What’s different this AMP

  77. Slide 77: What's different this AMP for retail

    What’s different this AMP for retail Changes in Ofwat’s approach to retail cost models and performance commitments have increased the focus on retail performance in AMP7. Improved retail cost models now reflect the unique challenges of retail operations in the North West. AMP6 retail AMP7 retail Ofw

  78. Slide 78: Efficiencies in AMP7

    AMIP7: Efficiencies in AMP7 Water for the North West

  79. Slide 79: Delivering cost initiatives

    Delivering cost initiatives Debt Innovation Digital Metering New analytic Artificial Intelligence, Enhanced digital Maximising benefit of capabilities, innovative Increased use of channel capabilities, AMR meters and new affordability schemes robotics, process boosting on-line account flexible meter

  80. Slide 80: Digital - driving down operational costs

    Digital - driving down operational costs Digital channels continue to grow in scale and sophistication. 125,000 Registered for UU app Number of digital billing registrations £17 million Payments made via app to date 1,200,000 1,000,000 8 minutes customer registers for the App 800,000 600,000 4.7 App

  81. Slide 81: ODI opportunities

    ODI opportunities Water for the North West

  82. Slide 82: Customer Services Performance Commitments

    Customer Services Performance Commitments 12 of United Utilities’ performance commitments are focussed on customer services, delivering the outcomes that are important to customers with rewards available for outperformance on specific performance commitments. 4 Common Measuring against sector, with

  83. Slide 83: Tackling levels of void households

    Tackling levels of void households Bespoke Improved data and analytics enabling an efficiently achieved reduction in unbilled homes… Voids Advanced Data Flying analytics partnering start 9.0% Advanced analytics Using land registry Dedicated Percentage of gives us the ability to data provides insight

  84. Slide 84: Keeping bills affordable for all customers

    Keeping bills affordable for all customers Bespoke Bespoke measure, to incentivise UU to increase the volume of customers lifted out of water poverty… Water poverty Tariffs Data Partnering provision 70 Poor pensioners New powers under Working with local Thousand of customers helped helped through ou

  85. Slide 85: Bringing down levels of water use

    Bringing down levels of water use Common Using water meters and communication campaigns to change customer behaviour… Per Capita Lowest bill Water audits Visualising Consumption guarantee water usage Customers fear an Installing water meters Planned online water 0% Household unexpected bill, incenti

  86. Slide 86: Transition from SIM to C-MeX and D-MeX

    Transition from SIM New C-MeX measure to C-MeX and D-MeX Customer Contactor Satisfaction Survey of Customer Experience Survey, survey of any customers who have contacted customer across the North us (similar to SIM) West Old SIM measure 50% 50% Satisfaction Quantitative survey of element, scoring Re

  87. Slide 87: C-Mex Shadow year performance

    C-Mex Shadow year performance Common In Quarter 3 we achieved the highest ever industry score, for the contactor element of CMeX. Satisfaction Survey Building on strong SIM performance, our Quarter 3 customer satisfaction contractor C-MeX scores contactor customer satisfaction scores are significant

  88. Slide 88: Developer experience performance commitments

    Developer experience performance commitments Common Spreading best practise in household Customer Services to improve developers’ experience of engaging with us… D-Mex Organisation Process Volume of transactions by water company structure redesign YTD Moved Developer Redesigning Services teams into

  89. Slide 89: Ensuring non-household properties are accurately billed

    Ensuring our non-household properties are being accurately billed Incentivising retailers to keep customer data accurate and up to date… Bespoke Incentives Gap sites – for retailers Incentive Implementation of Implementation of vacancy incentive Gap Site incentive scheme from April scheme from April

  90. Slide 90: Driving Priority Services offering

    Driving Priority Services offering for Common our customers and the utility sector Registrations remain strong and embedded within core customer touchpoints Our Priority Services proposition has been shaped by insight… There are now more than Leading role in full data c.100,000 Priority Services sha

  91. Slide 91: Well placed for next AMP

    Well placed for next AMP Improving service and reducing costs for customers today and in the future Service Cost ODIs Rapid improvement in Since 2014/15 we have reduced 12 Customer Services ODI’s; service over AMP6 regulatory bad debt by 9 with financial incentives £25m/year C-MeX, Q3 industry leadi

  92. Slide 92: People

    y United Water for the North West

  93. Slide 93: Motivated and engaged

    Motivated and engaged Top 20 Best Places to Work 2020 Rated by employees using Glassdoor High levels of retention Attrition is low, ensuring continuity of skills and business understanding High levels of employee engagement Consistently tracking UK high performance norms United Utilities • Capital M

  94. Slide 94: Trained and capable

    Trained and capable • Opened in 2015 • Only government approved State-of-the-art apprentice training provider in water Training Centres industry • Invested >£3m to deliver industry specific skills • Rated ‘Good’ by Ofsted 40,000 • • Training days delivered in 2018/19 70% delivered in-house Investing

  95. Slide 95: Aligned and motivated

    Aligned and motivated Clear targets and Sharing rewards for objectives for all delivery Targets cascaded from boardroom to All-employee bonus plan unique treatment works and contact centres amongst listed water companies Employees know how they contribute Recognises delivery of business to delivery

  96. Slide 96: Capital Markets Day Q&A

    y United Water for the North West

  97. Slide 97: Closing remarks

    Capital Markets Day Closing remarks

  98. Slide 98: Cautionary statement

    Capital Markets Day Cautionary statement This presentation contains certain forward-looking statements with respect to the operations, performance and financial condition of the group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and d

United Utilities Group — Investor Day (March 2020) on 6ix