Growing Together
Adrian Cook, Group Head of Procurement
October 2013 – Supplier Presentation
1
Group Procurement and Supply
Growing together
Agenda

Introduction

Our business

Babcock Procurement Programme

What we look for in our suppliers

Closing remarks
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Group Procurement and Supply
Introduction
 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
“A world-class
company needs a
world-class
supply chain”
“Companies
usually get the
suppliers that they
deserve”
 Two key beliefs
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Babcock International Group
Our business - a strategy for growth
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
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
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Babcock International Group
Our business – customers’ interests at forefront of our minds
Our business model and proven track
record in handling key strategic assets
means major organisations trust us to
deliver.
Infrastructure
Integrating engineering skills
for complex technical
programmes and vital services
+
In challenging, regulated environments
Equipment
+
Delivering value for money outcomes




=
Reliably
Cost effectively
On time
Safely
Education
and
Training
Babcock
trusted to deliver
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Babcock International Group
Our business – what we do and how we are organised
Marine and Technology
Revenue
Operating profit
£1,201.6m
£156.9m
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
Defence and Security
Support Services
Revenue
£820.2m
Revenue
Operating profit
£112.2m
Operating profit
A major support
provider to all three
UK armed forces
delivering training ,
infrastructure and
equipment support
£943.7m
£91.2m
Provider of critical
support services to
government, local
authorities and blue
chip companies
£24.7m
One of the leading
engineering support
services companies
in South Africa
•
•
Power generation support
Power lines
•
Volvo and DAF truck
distribution
Plant hire
•
Education and Training
•
White fleet and construction
vehicle management
Training
•
Network Engineering: Rail,
Power and Communications
Mobile Assets: Emergency
Services, Mining and
Construction and Airports
Emergency Services and
Infrastructures
Defence infrastructure support
Aircraft engineering and base
support
Operating profit
£278.0m
Nuclear
Equipment Support
•
•
Revenue
•
•
•
International
•
•
•
•
Middle East - military aircraft
support
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Babcock International Group
Our business – growth record and prospects
Record of successful past
Signs of successful future
Ten years of growth:
Revenue and Operating profit
Bid Pipeline of £15.5bn end FY12/13
3,500
400
3,000
350
250
2,000
200
Op profit (£m)
Bid Pipeline Progression
16
12
1,500
150
1,000
100
£bn
Revenue (£m)
300
2,500
 74% total contract value >£100m
 In FY12/13 new bids 40% and
rebids 100%
8
4
500
50
0
0
0
FY 09
FY 10
FY 11
FY 12
FY 13
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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Babcock International Group
Procurement Programme – excellence as a standard
UK Supplier Spend
Select and
manage
suppliers that
support us in
delivering
cost savings
solutions and
ultra reliable
service
£1.4 billion
Currently trading
with
10,000 +
Our key approach
Category Management
Excellence
in
High
Calibre
Teams
suppliers across
local economies
Expenditure with 350
key trading suppliers
£650 million
Procurement
Trusted,
Effective
Processes
Useful,
Action-Orientated
Insight
Expert Supply Category Management
Supply Strategy
Business
Alignment
Supply Base
Optimisation
Risk
Management
Strategic Sourcing
Business
Requirements
Market
Analysis
Supplier
Selection
Supply Management
Contract
Management
Supplier
Performance
Management
Supplier
Relationship
Management
Structured, collaborative supplier relationships
&
Supply Management
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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
Fleet
HR
Gen
Eng
Plant
Hire
FM
IT
& Corp
Mobile
Assets
Cavendish
Nuclear
Network
Engineering
Education
Training
Naval
Bases
Land
and Sea
Warships
etc.
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Babcock International Group
What we look for from our suppliers
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
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
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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
www.babcockinternational.com