Serco Group plc · LSE:SRP

Serco — DKW conference (April 2005)

16 slides from Serco's conference presentation, Apr 11, 2005

  1. Slide 1: Serco Group plc

    Serco Group plc 11 April 2005 Kevin Beeston Executive Chairman

  2. Slide 2: Profile

    Profile ƒ Delivering managed public services for over 40 years ƒ Broad portfolio of international government clients ƒ Track record of high contract retention and strong organic growth ƒ Low capital requirement business ƒ Political and economic imperatives are expanding addressable markets

  3. Slide 3: Where we operate

    Where we operate

  4. Slide 4: Segmental analysis

    Segmental analysis Sectors Civil government 33% Defence 30% Private sector 8% Transport 22% Science 7% Geography North America 6% UK 74% Asia Pacific 9% Europe and Middle East 11% 2004 turnover £1,636.8m including joint ventures

  5. Slide 5: Track record of growth

    Track record of growth 1,637 1,556 1,326 Turnover £m Including joint ventures 1,141 958 Compound growth rate 25% 808 688 572 462 368 289 219 176 126 82 59 47 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04

  6. Slide 6: Clear differentiators

    Clear differentiators ƒ Most companies offer narrow technically focused expertise ƒ Serco offers management expertise applicable across many sectors ƒ Market shifting to bundled and integrated services ƒ Increasing barriers to entry – track record and financial strength important ƒ Continuous innova

  7. Slide 7: 2004 Preliminary results – financial highlights

    2004 Preliminary results – financial highlights Growth Underlying Growth Turnover £1,636.8m 5.2% 14.0% Profit before tax* £73.9m 10.3% 16.4% Earnings per share* 12.20p 10.6% Dividend per share 2.63p 12.4% Free cash flow £55.8m 18.7% *before amortisation of intangible assets

  8. Slide 8: 2004 Preliminary results - operational highlights

    2004 Preliminary results - operational highlights ƒ Rebid win rate maintained at over 90% ƒ Continuing to win 1 out of 2 new bids ƒ Order book at 31 December 2004 stood at record £12.7bn ƒ £4.7bn bids submitted and under evaluation ƒ Over £16bn of potential future opportunities identified ƒ 61% of u

  9. Slide 9: Strategy

    Strategy ƒ Organic growth the priority ƒ Acquisitions used to obtain ƒ New capabilities ƒ Market access ƒ Highly selective and analytical approach to capital allocation

  10. Slide 10: Sales funnel

    Control Sales funnel Through Process – Sales Funnel Identify / Shape OJEC Submit ITT Black Submit Preferred develop Sales Market published response issued Hat tender bidder Opportunity UNIVERSE ABOVE IN BEST OF CLOSE FEW CONTRACT C U O N N I Gate 1 Gate 2 Gate 3 Gate 4 Gate 5 T V Go-Get/No Shortlist

  11. Slide 11: Acquisitions – high strategic value, minimal risk

    Acquisitions – high strategic value, minimal risk High strategic value ƒ Improved access to large and growing markets ƒ Strengthened offering in public sector and commercial markets ƒ Enhances skills and capabilities Minimal transaction risk ƒ Integration process normal business for Serco ƒ Similar

  12. Slide 12: ITNET

    ITNET ƒ Leading provider of IT services to UK local authorities ƒ Acquisition completed in February 2005 ƒ 2004 unaudited revenues of £209m ƒ Adds capability in local government business transformation market ƒ Collaborative working has already begun bringing revenue synergy

  13. Slide 13: RCI

    RCI ƒ Leading provider of business process management and IT services ƒ Acquisition completed in March 2005 ƒ 2004 unaudited revenues of $289m ƒ Top 100 supplier to US Department of Defense ƒ Transforms our competitive position in the US ƒ Cross fertilisation of skills and transference overseas in t

  14. Slide 14: The enlarged group – 2004 proforma turnover

    The enlarged group – 2004 proforma turnover Sectors Defence 32% (30%) Civil government 34% (33%) Private sector 10% (8%) Transport 18% (22%) Science 6% (7%) Geography UK 71% (74%) Asia Pacific 8% (9%) Europe and Middle East 9% (11%) North America 12% (6%)

  15. Slide 15: Fuelling organic growth

    Fuelling organic growth ƒ Acquisitions add cross selling capabilities ƒ Extending relationships ƒ Synergies at contract level ƒ Leveraging capability

  16. Slide 16: Looking forward / Questions and Answers

    Looking forward Outlook ƒ Encouraging UK and international market conditions ƒ Record order book ƒ Margin improvement ƒ Continued growth Questions and Answers

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