Pennon Group Plc · LSE:PNN
Pennon — Investor Day (October 2015)
46 slides from Pennon's investor day presentation, Oct 20, 2015
Slide 1: Analyst Investor Day Viridor (Manchester)
ANALYST INVESTOR DAY VIRIDOR (MANCHESTER) SUSAN DAVY GROUP DIRECTOR OF FINANCE, PENNON IAN McAULAY CHIEF EXECUTIVE, VIRIDOR 19/20 OCTOBER 2015
Slide 2: Pennon Video
PENNON VIDEO Viridor Transforming waste”
Slide 3: Welcome
WELCOME UK WASTE MARKET BRIEFING 22 JULY 2015 WATER BRIEFING: DELIVERING AND OUTPERFORMING OUR K6 PLAN 24 SEPTEMBER 2015 ANALYST INVESTOR DAY: VIRIDOR (MANCHESTER) 19-20 OCTOBER 2015
Slide 4: Viridor is a leading UK renewable energy, recycling and waste management business
VIRIDOR IS A LEADING UK RENEWABLE ENERGY, RECYCLING AND WASTE MANAGEMENT BUSINESS A MARKET LEADER WELL – POSITIONED TODAY AND FOR THE FUTURE : Value-enhancing ERF portfolio Forecast to deliver substantial growth over the long-term c£100M to EBITDA in 2016/2017 Earnings enhancing for Pennon Gro
Slide 5: Our purpose and values
OUR PURPOSE AND VALUES GIVING THE WORLD'S oe =:
Slide 6: Transforming waste
Transforming waste”
Slide 7: Achieving our purpose will benefit our customers, stakeholders and employees
ACHIEVING OUR PURPOSE WILL BENEFIT OUR CUSTOMERS, STAKEHOLDERS AND EMPLOYEES
Slide 8: Unrivalled expertise delivering the right strategy for each business
UNRIVALLED EXPERTISE DELIVERING THE RIGHT STRATEGY FOR EACH BUSINESS FOCUSED ON CREATING VALUE FOR SHAREHOLDERS
Slide 9: Driving trends and strategic priorities
DRIVING TRENDS AND STRATEGIC PRIORITIES
Slide 10: Our strategy is built on three driving trends
OUR STRATEGY IS BUILT ON THREE DRIVING TRENDS
Slide 11: Future UK waste arisings remain relatively stable
FUTURE UK WASTE ARISINGS REMAIN RELATIVELY STABLE AND MUST BE TREATED WITH A 2020 VISION IN THE WASTE HIERACHY (MEETING EU TARGETS) UK WASTE ARISINGS WE ARE THEREFORE WELL POSITIONED TO PERFORM IN ALL OUR MARKETS.
Slide 12: Our strategically located network of social infrastructure
OUR STRATEGICALLY LOCATED NETWORK OF SOCIAL INFRASTRUCTURE DELIVERS ESSENTIAL ENERGY RECOVERY, RECYCLING AND RESOURCE MANAGEMENT SERVICES, AND COMMUNITY BENEFITS ACROSS THE UK.
Slide 13: We have identified a strategic rationale and priorities for our key service areas
WE HAVE IDENTIFIED A STRATEGIC RATIONALE AND PRIORITIES FOR OUR KEY SERVICE AREAS ENERGY LANDFILL Transforming waste”
Slide 14: Transforming waste
Transforming waste”
Slide 15: Transforming waste
Transforming waste"
Slide 16: Transforming waste
Transforming waste"
Slide 17: Viridor Transforming waste
Viridor Transforming waste”
Slide 18: Viridor is targeting 15% ERF market share
VIRIDOR IS TARGETING 15% ERF MARKET SHARE
Slide 19: Balance of evidence strongly supports Viridor's assessment of under capacity
BALANCE OF EVIDENCE STRONGLY SUPPORTS VIRIDOR’S ASSESSMENT OF UNDER CAPACITY 2020 AND 2025 ERF CAPACITY PROJECTIONS VIRIDOR CONSISTENT AND CONFIDENT THAT THERE WILL BE UNDER CAPACITY IN THE UK MARKET
Slide 20: Case study: Trident Park ERF fuel loading
CASE STUDY: TRIDENT PARK ERF FUEL LOADING 20% merchant exposure enables plant flexibility and short-term price optimisation while balancing risk FROM MERCHANT PROJECT TO LONG-TERM CONTRACTED FACILITY
Slide 21: Total combustible residual waste arisings around Runcorn ERF
TOTAL COMBUSTIBLE RESIDUAL WASTE ARISINGS AROUND RUNCORN ERF ESTIMATED TO BE UP TO 1.5MT WITHIN 30 MILES RADIUS 1.5mt 0.76mt 0.25mt RUNCORN ERF 10 miles 20 miles 30 miles
Slide 22: A structured approach to R&D and innovation
A STRUCTURED APPROACH TO R&D AND INNOVATION WILL HELP DRIVE FUTURE PROFITABILITY AND GROWTH
Slide 23: Achieving our purpose will benefit our customers, stakeholders and employees
ACHIEVING OUR PURPOSE WILL BENEFIT OUR CUSTOMERS, STAKEHOLDERS AND EMPLOYEES
Slide 24: Welcome to Greater Manchester: a world class resource management model
WELCOME TO GREATER MANCHESTER A WORLD CLASS RESOURCE MANAGEMENT MODEL
Slide 25: Health and safety is at the heart of everything we do
HEALTH AND SAFETY IS AT THE HEART OF EVERYTHING WE DO. ALL VISITORS TO SIGN AN INDUCTION FORM AND EVERYONE WILL BE PROVIDED WITH PPE
Slide 26: Health and safety on site
HEALTH AND SAFETY ON SITE: PLEASE STAY IN YOUR GROUPS WITH YOUR ESCORT DO NOT USE YOUR BE AWARE OF MOVING IN THE EVENT OF AN MOBILE PHONE VEHICLES AND EMERGENCY THE SITE ON SITE. CONTRACTORS SIREN WILL SOUND. MOVING AROUND VACATE THE BUILDING THE SITE CARRYING AND GO TO THE MUSTER EQUIPMENT. POINT W
Slide 27: Thank you for your time. Enjoy your visit
THANK YOU FOR YOUR TIME. ENJOY YOUR VISIT
Slide 28: Greater Manchester PFI (GMPFI) overview
GREATER MANCHESTER PFI (GMPFI) OVERVIEW RICHARD JENKINS REGIONAL MANAGING DIRECTOR
Slide 29: Greater Manchester Waste PFI signed 8th April 2009
IN THE BEGINNING THERE WAS A CONTRACT – GREATER MANCHESTER WASTE PFI SIGNED 8TH APRIL 2009 25 YEAR INTEGRATED CONTRACT TO DELIVER GMWDA MWMS WITH A VALUE OF £3.8B VIRIDOR LAING 50:50 JOINT VENTURE INVESTMENT OF £400M INTO NEW INFRASTRUCTURE IN GREATER MANCHESTER SECOND SPV (TPSCO) A VENTURE
Slide 30: Contract facilities provide platform of service and future innovation
CONTRACT FACILITIES PROVIDE PLATFORM OF SERVICE AND FUTURE INNOVATION 20 – HWRCS 7 – TRANSFER LOADING STATIONS 5 – MBT PLANTS (4 WITH AD AND RAIL CONNECTIONS) 4 – IVC PLANTS 2 – GREEN WASTE SHREDDING FACILITIES 1 – MRF 1 – THERMAL RECOVERY FACILITY (TRF)
Slide 31: Runcorn ERF: a Northern Powerhouse
RUNCORN 1 ERF: A NORTHERN POWERHOUSE
Slide 32: A 2020 vision for the Greater Manchester Waste PFI partnership
A 2020 VISION FOR THE GREATER MANCHESTER WASTE PFI PARTNERSHIP
Slide 33: Shared 2020 vision between the partners
WE HAVE DEVELOPED A SHARED 2020 VISION BETWEEN THE PARTNERS TO DELIVER A WORLD CLASS RESOURCE MANAGEMENT SOLUTION FOR GREATER MANCHESTER PARTNERSHIP PRINCIPLE IS AN INTEGRAL AND EMBEDDED PART OF THE CONTRACT
Slide 34: Key 2020 vision success factors have been identified
KEY 2020 VISION SUCCESS FACTORS HAVE BEEN IDENTIFIED KEY ACTION TO ENSURE CONTINUOUS IMPROVEMENT: RECYCLING 50%+ LANDFILL DIVERSION 90%+ OPTIMISED FACILITIES FINANCIAL RETURN FOR ALL PARTIES GLOBAL BEST PRACTICE
Slide 35: Delivering world class services through a shared and deliverable vision
DELIVERING WORLD CLASS SERVICES IN THE EVER CHANGING LEGISLATIVE AND ECONOMIC ENVIRONMENT THROUGH A SHARED AND DELIVERABLE VISION – TRUE PARTNERSHIP
Slide 36: The Client Perspective
The Client Perspective 20th October 2015 David Taylor Greater Manchester Waste Disposal Authority
Slide 37: About Greater Manchester Disposal Authority
About Greater Manchester Disposal Authority 2.6m population 1m households 1.1m tonnes p.a. of municipal waste 9 Collection Authorities
Slide 38: Our Aim is Zero Waste
‘Our Aim is Zero Waste’ Greater Manchester’s Integrated Solution 50% recycling by 2016 60% by 2025 Zero waste to landfill Achievements to 2014/15 •42% Recycling •71% Landfill diversion
Slide 39: Where have we come from
Where have we come from In 2004/05 Landfill 80% Recycling 15% Recovery 5%
Slide 40: Achieving Zero Waste
Achieving ‘Zero Waste’ Reduce The Partnership Reuse Behavioural Recycle/Compost Technical Technical Behavioural Solution Solution Energy Recovery Disposal
Slide 41: Our 4 bin collection system
Our 4 “bin” collection system
Slide 42: Importance of Behavioural Change
Importance of Behavioural Change • Around three quarters of our kerbside collected waste may be recycled by our 75% system
Slide 43: Communications and Engagement
Communications and Engagement Audit Target Support
Slide 44: Challenges Ahead
Challenges Ahead Continued austerity measures CSR late 2015/early 2016 2020 Vision sets a framework for this Lack of waste policy for England Defra focus is short term to meet 2020 recycling targets
Slide 45: The Circular Economy
The Circular Economy Transforming waste"
Slide 46: Thank You
Thank You David Taylor david.taylor@gmwda.gov.uk www.gmwda.gov.uk www.recycleforgreatermanchester.com