Commercial FM Growth Strategy. Jeff Flanagan

Transcription

1 Commercial FM Growth Strategy Jeff Flanagan

2 The Commercial Business Unit Interserve always in private sector FM BBC won prior to Initial acquisition Combined private sector FM in excess of 900m turnover Private sector revenue split between Commercial BU and Industrial BU Public:Private Sector focus within support services now approx 50:50 All main service lines : cleaning, security, catering, hard services, energy Private Sector focus : Transport, Retail, Education Catering, Corporates

3 Why Initial? compelling strategic rationale A complementary Facilities Services Business with operations principally in the UK Created top 3 player by revenue and balance between public and private sector clients Enhanced growth platform in large and attractive markets Market for private sector outsourcing nearly double that of the public sector Builds on strong core business consistent with strategy Addition of private sector soft service focus complements public sector hard service led TFM Synergy opportunities Operational efficiencies and cost savings together with new revenue opportunities Enhanced management and client relationships Both organisations have complementary strong management and a track record of solid customer relationships.

4 Initial facilities a reminder of what we bought 542.2m revenue and operating profit 25.6m (2013A), representing a margin of 4.7% c25,000 employees - 22,000 based in UK and Ireland - 3,000 based in Spain Broad customer base within the private sector Comprehensive range of facilities services Analysis of Turnover Multi Service 32% Cleaning 26% Other 31% Professional Services 25% Technical, Catering, Security & TFM 42% Largest customer 50m pa London Underground 85% private sector, 15% public sector Local Government 15% Healthcare 14% Transport 15%

5 Revenue ( m) Interserve now one of the largest providers of support services in the UK 2,500m Leading FM suppliers 2,000m 1,500m 1,000m 500m 0m Source: Credo

6 Integration update Cost savings delivered : Streamlining operational management Removal of duplicate functions Procurement savings arising from economies of scale Other headlines : New opportunities created for our customers, shareholders and people Key personnel retained from both organisations and sector expertise retained Stronger more balanced portfolio of customers in both public and private sectors Integration delivered on plan and on budget

7 Commercial addressable market 16.4bn Other 20% Hard Services 19% IFM 12% Security 21% Cleaning 28% Opportunity exists in IFM, Bundled and Single Service Source : Credo

8 Service Growth Rates % Growth rates TFM represents a strong growth market 6 UK Outsourced FM Market 2 Source : Frost & Sullivan -2 Single Growth Rate Multi-Service Growth Rate TFM Growth Rate

9 A selection of our clients

10 Private sector strategy Real customer service focus Sector based approach Operational and structural realignment Focus and subject matter experts Single to integrated service offering Service line and geographic expansion TOM Target Operating Model COE service line centre of excellence Innovation

11 Transport specialists Network Rail Sector expertise and excellence 5 year contract worth 15m pa 17 stations, 400 Operational site portfolio Cleaning excellence and logistics strength Sector opportunity - full soft services portfolio imminent Network rail currently procure around 5bn of outsourced service lines

12 Shopping centres Grown by 30% because able to offer an integrated service Market is demanding responsiveness and a sector specific approach Managing agents and property owners Services - Cleaning, Security and M&E Wider market reputation is growing Current pipeline: JLL, Westfield and Hammerson Land Securities, CBRE and PruPim

13 Eden Catering in the Education Sector Strong Brand combined with UFSM Currently servicing 260 Primary and 35 Secondary Schools Rejuvenation in the marketplace Market opportunity 30% outsourcing penetration Great people with a vibrant food proposition Award-winning sustainable and healthy food provision My Eden software

14 BBC IFM Customer Experience 5 year contract worth 150m all buildings and services except catering Broadcasting House in London, Media City in Salford, Pacific Quay in Glasgow Broadcast continuity is mission critical - over 45% of all UK TV output Mobilised on 1 April 2014, with the transfer of 1,100 staff under TUPE from three different incumbent FM suppliers Vision of Customer Experience key Substantial additional works and projects

15 Sony International IFM in 27 countries since February 2015 Offices, R&D facilities and retail sites Hybrid solution Managing agent & self delivery Strong customer service focus and value add Opportunities through additional buildings and services in Europe and UK

16 B&Q the power of customer relationships Service excellence and customer trust Expansion of cleaning and then catering Manage all coffee locations Reputation strong Further opportunities for IFM at HQ and in-store services

17 The opportunity Integrated FM Sector Specialisation Technical Customer Experience Cleaning Retail and Commercial Customer International Security National reach Outstanding people Catering