1. International Conference of Road Safety at Work February 16 – 18, 2009 Paul Gallemore European Head of HSEQ Sustaining Safety in Hard Times / Times of Recession

2. Contents › Introduction to Wolseley › Building an Effective Business Case for Fleet Safety › Engaging key Internal and External stakeholders › Identifying the “Biggest Bang for your Buck” › Our Fleet Safety Journey › The Sustainable Benefits › Highlighting Success and Continuous Improvement

3. Operations in 30 countries Over 5,300 branches worldwide 70,000 Employees £16.9 billion of sales 22,500 Vehicles (Cars and Trucks) At least 25,000 Drivers At least 5,000 Collisions (3 rd Party) Wolseley – Some Facts & Figures

4. Moral Financial Duty of Care Legal Building an Effective Business Case

5. Collisions, Injuries, Ill health, damage etc. Lost time Extra wages, overtime payments Damage to products, plant, buildings, tools, vehicles, equipment Sick Pay Fines Loss of contracts or customers Legal costs Site clean up costs Management investigation time Excess on any claims Loss of business reputation Insurance Costs Uninsured Costs £1 £8 - £36 Source: Health and Safety Executive - HS(G) 96 - The Cost of Accidents at Work

6. Building and Effective Business Case Example - Wolseley UK Collisions (05/06)

7. Ignorance Who cares as long as we don’t get caught Reactive Safety is important, we do a lot every time we have an accident Compliant We have systems in place to manage most risks Business Risk We actively look for problems and work on reducing risks Integration Safety is always one of our top priorities Increasing Effectiveness Increasing trust and Accountability Engaging Key Stakeholders

8.  Health safety and environment  Transport fleet  Car fleet  HR  Training  Branch & Operations Manager’s  External: Insurance broker (Willis), Insurer (Zurich), Risk management advisors (IDS), Fleet suppliers (GE) and Accident management (FMG) Focused Fleet Safety Steering Group, including participants from: Quarterly meetings with sub-groups to focus on fleet safety programmes Engaging Key Stakeholders

9. Zurich audit outcomes2004 %2006 %All fleets Fleet safety policy398473 OHS policy and risk assessment477868 Legal compliance608876 Organisational leadership and culture488172 Journey/mobility planning627277 Driver recruitment and induction748670 Driver management618065 Driver wellbeing427362 Vehicle management588376 Claims reporting and investigation436964 Marketing and community involvement368246 Reversing497064 Cash for cars608062 Agency drivers506073 Overall537868 Identifying the Biggest Bang for Your Buck

11. 04/0505/0606/07070808/09 Established Fleet Safety Steering Group Fleet Safety Audit Gap Analysis Appointed Fleet Safety Champion Identified the Moral, Legal and Financial Case Developed Fleet Safety Action Plan Launched Fleet Safety Policy & Handbooks Driver Pledge, Policy, Risk Assessment Driver Focus Groups and Driver of the Year Quarterly Driver Newsletter Launched On-line Driver Assessment and Training Benchmarking with Other Organisations Random Drug and Alcohol Screening Separate Car and Commercial Focus Groups Post Collision Investigation Calls Focus on Grey Fleet Drivers Our Fleet Safety Journey

12. Instigated where a Company Car collision has resulted in: an injury to a 3 rd party personal injury to an employee caused over £1,000 of damage Carried out by ex-police trainers Conversation highlights key “risk” factors leading up to the collision Helps to Identify the root cause of the collision and any further training requirements Our Fleet Safety Journey Post Incident Calls

13. Our Fleet Safety Journey

14.  Monthly Essential Safety Theme to all WUK locations focusing on ‘Fleet Safety’  Fleet Safety Seminars hosted by IDS  Road Safety Training in Local Schools  Tyre & windscreen checks at Head Offices  Alcohol Awareness Workshop run by Zurich  Reverse parking only and “Dress Down” day at Head Offices – all proceeds in aid of Brake  FSSG meeting held during the week  D.C’s and branches promoted road safety with campaigns targeted at their local communities  Brake’s petition lobbying for 20mph zones around schools and homes signed by employees and students attending workshops  Online driver assessment reminders sent  Press releases in trade and local press Our Fleet Safety Journey

15. The Benefits of SAFED Fuel Efficiency - Using fuel more efficiently means:  lower costs  improved profit margins  reduced emissions  improved environmental performance Reduced fuel consumption by 1,000 litres per year will:  save an operator £700 a year (assuming a price of 70 pence per litre, excluding Taxes)  save 2.6 tonnes of carbon dioxide emissions a year For more information see UK DOT Good Practice Guide 2100 The Sustainable Benefits Focus on Safe and Fuel Efficient Driving Safer Driving / Safer driving means:  less injuries and fatalities on our roads  less accident damage to vehicles  less unproductive downtime for vehicle repair  reduced insurance premiums

16. The key benefits for focusing upon Fleet Safety 1.Significant Cost Savings 2.Efficiency Improvements 3.Better customer service 4.Fewer Injuries, Collisions and lost workdays 5.Lower claims, Lower administration costs, Lower insurance premiums 6.Improved Performance Management 7.Consistent & Timely External/Internal Reporting 8.Improved Internal Operational Control 9.Brand Enhancement / Protection 10.Achieve Operational Excellence 11.Improved Compliance with Legal and Reporting standards Highlighting Success

18.  Year on year reduction in injury (35%) and Collision rates (45%) since 2004  1,000 collisions avoided in 07/08, equal to £1.5 million of direct costs and significantly more indirect costs avoided  Occupational H & S and Fleet Safety programme has received national and international recognition Highlighting Success

19.  Car Policy Review & Handbook Update  Focus on Grey Fleet  Post Collision Investigation Call  Internal Audit on Car Fleet Department  External Zurich Audit  Safe Driver of the Year 2009  National Road Safety Week 2009  Further Benchmarking via working parties and DfBB  Separate Car & Commercial Focus Groups Next Steps

20. › For more information, contact:  paul.gallemore@wolseley.co.uk  01926 705622  harnam.singhnijjar@wolseley.co.uk  01926 705320 › Or visit www.wolseley.co.uk Thank You