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Growing Together Adrian Cook, Group Head of Procurement October 2013 – Supplier Presentation1.

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Presentation on theme: "Growing Together Adrian Cook, Group Head of Procurement October 2013 – Supplier Presentation1."— Presentation transcript:

1 Growing Together Adrian Cook, Group Head of Procurement October 2013 – Supplier Presentation1

2 Agenda  Introduction  Our business  Babcock Procurement Programme  What we look for in our suppliers  Closing remarks Group Procurement and Supply Growing together

3  Supply Chain is key to delivering for our customers  2 objectives for role:  Design and implement a shared supply chain where purchase needs are common across the Group  Develop across Babcock a team of procurement and supply chain professionals who share and drive best practices  Two key beliefs Group Procurement and Supply Introduction “Companies usually get the suppliers that they deserve” “A world-class company needs a world-class supply chain”

4 Babcock International Group Our business - a strategy for growth We will continue to develop by implementing our strategy Market leading positions Working with customers who own large and strategically important assets Customer focused long-term relationships Integrating engineering and technical expertise Balancing the risk and reward between ourselves and the customer Maintaining an excellent safety record Our objective is to develop from our position as the UK’s leading engineering support services company and grow in both the UK and overseas, so delivering superior and sustainable returns for our shareholders

5 Babcock International Group Our business – customers’ interests at forefront of our minds Infrastructure Equipment Education and Training Our business model and proven track record in handling key strategic assets means major organisations trust us to deliver. + +=+ += Integrating engineering skills for complex technical programmes and vital services In challenging, regulated environments Delivering value for money outcomes  Reliably  Cost effectively  On time  Safely Babcock trusted to deliver

6 Support Services Revenue £943.7m Operating profit £91.2m Support Services Revenue £943.7m Operating profit £91.2m Marine and Technology Revenue £1,201.6m Operating profit £156.9m Marine and Technology Revenue £1,201.6m Operating profit £156.9m Defence and Security Revenue £820.2m Operating profit £112.2m Defence and Security Revenue £820.2m Operating profit £112.2m International Revenue £278.0m Operating profit £24.7m International Revenue £278.0m Operating profit £24.7m Babcock International Group Our business – what we do and how we are organised UK’s leading naval support business with a unique role supporting the Royal Navy Naval base management Submarine and warship support Technology: engineering, design, system integration and platform management Equipment support Training Commercial marine and offshore energy UK’s leading naval support business with a unique role supporting the Royal Navy Naval base management Submarine and warship support Technology: engineering, design, system integration and platform management Equipment support Training Commercial marine and offshore energy A major support provider to all three UK armed forces delivering training, infrastructure and equipment support Equipment Support White fleet and construction vehicle management Training Defence infrastructure support Aircraft engineering and base support A major support provider to all three UK armed forces delivering training, infrastructure and equipment support Equipment Support White fleet and construction vehicle management Training Defence infrastructure support Aircraft engineering and base support Provider of critical support services to government, local authorities and blue chip companies Nuclear Education and Training Network Engineering: Rail, Power and Communications Mobile Assets: Emergency Services, Mining and Construction and Airports Emergency Services and Infrastructures Provider of critical support services to government, local authorities and blue chip companies Nuclear Education and Training Network Engineering: Rail, Power and Communications Mobile Assets: Emergency Services, Mining and Construction and Airports Emergency Services and Infrastructures One of the leading engineering support services companies in South Africa Power generation support Power lines Volvo and DAF truck distribution Plant hire Middle East - military aircraft support One of the leading engineering support services companies in South Africa Power generation support Power lines Volvo and DAF truck distribution Plant hire Middle East - military aircraft support

7 Babcock International Group Our business – growth record and prospects Revenue (£m) Op profit (£m) Ten years of growth: Revenue and Operating profit Record of successful pastSigns of successful future £bn Bid Pipeline of £15.5bn end FY12/13  74% total contract value >£100m  In FY12/13 new bids 40% and rebids 100%

8 Babcock International Group Procurement Programme – excellence as a standard UK Supplier Spend £1.4 billion Currently trading with 10,000 + suppliers across local economies Select and manage suppliers that support us in delivering cost savings solutions and ultra reliable service Expenditure with 350 key trading suppliers £650 million Our key approach Category Management

9 Babcock International Group Procurement Programme – how we are organised We combine Business Level Procurement focus with Group Level Category Management and Leadership The strength of our approach is built upon:  Organisation around our customers  Dedicated, local procurement  Adopting common high standards  Sharing practices and supplier selection Mobile Assets Cavendish Nuclear Network Engineering Education Training Naval Bases Land and Sea Warships etc. FleetHRGen Eng Plant Hire FMIT & Corp

10 Our customers’ interests are always at the forefront of our minds The strength of our reputation with our customers is based on:  Working safely  Delivering contract requirements  Meeting deadlines  Working within agreed cost parameters  Adding value  Improving productivity and efficiency  Being easy to do business with Babcock International Group What we look for from our suppliers Service Value Chain The strength of your reputation with us is based on: Working safely Delivering contract requirements Meeting deadlines Working within agreed cost parameters Adding value Improving productivity and efficiency Being easy to do business with

11 Babcock International Group Closing remarks  Opportunity to share in success and grow with us  World class describes performance not size  We want your account with Babcock to be the one you are most proud of retaining  We sell cost savings solutions and need suppliers to share in their development and delivery  Nothing is more important that safety and service


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