Copyright © United Utilities Water Limited 2015

Steve FraserManaging Director

UU’s current investment plans for AMP6

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About United Utilities?

• We’re the North West’s water company. Hot showers, cups of tea, toilet flushes… Every morning, our core product gets used by 7 million customers

• FTSE 100 – based in Warrington, Cheshire

• Our investment programme for the next five years is focused on delivering value for all our stakeholders, with a strong focus on delivering a great service to all our customers

• Customers’ bills won’t rise above inflation for the rest of the decade

United UtilitiesOur approach to AMP6

32%Fewer

interruptions to water supply

4,700Fewer properties

flooded

+50 Beaches with cleaner water

1.8mLow income customers

helped by 2020

21Customer Challenge

Groups

250kCustomers engaged

5%Reduction off bills

on average

Customers favour ‘steady state’ over improvements

Ongoing customer stakeholder panels holding companies to account

£44bnTotal investment

2015-20

Customer’s priorities underpin AMP6 business plans

What’s changed in AMP6?

• We need to deliver our promises to customers and regulators

• We need to deliver capital projects to time, cost and quality

• We need to deliver cost savings in line with initiatives

• Customer billing and cash collection in line with targets

• We need to gain new out-of-area customers and value add services contracts

AMP6 delivery model

• Specifying outcomes• Earlier contractor involvement in Design & Build contracts• Engineering effort focused on root cause of asset problems

and technical support for day to day operational activities• Standardising an NEC3 suite of contracts with a strong

technical and commercial assurance

Supply Chain

Mott MacDonald

Bentley

CH2M Hill and VolkerStevin

Balfour Beatty and

MWH

Laing O’Rourke, Imtech and

Atkins

Delivery partners work load split between direct allocations (40%) and mini competition (60%)

Construction Delivery Partners Engineering service provider (ESP)

AllianceAlliance Partner for networks extended for second AMP cycle

Competitive market place

Competitive market tenders forecast to undertake 30% of capital projects (>£250k).

AMP6 delivery modelWorking with suppliers

AMP6 Davyhulme modernisation project

New FTFT Inlet Works

Refurbish existing Inlet

Works

De-commASP1

Refurbish part ASP2

ASP3

Project key facts• Project LBE and sanction £187.5m• Design & Build contract awarded to Laing O’Rourke/Imtech JV• Project currently in week 22 of 181 and on schedule • Project completion July 2018• First tender issued requiring “Design for Manufacture and Assembly” as

primary solution• Full BIM solution aligned to new operating model

Drivers for Change

Environmental Legislation• Reduction in ammonia consent from March

2015. Operational mitigation plan in place until the Modernisation project complete in 2018

Growing Population• Population increase from just over 1m to 1.3m

forecast by 2036Ageing Assets• Main treatment processes due significant

investment over the next 25 years

AMP6 West Cumbria Pipeline Project

AMP6 Blackpool outfall pipe

Drivers for Change• Bathing water standards continue to keep getting tougher

Project key facts• New outfall pipe, weighing 2,000 tonnes and twice the length of the old one, to allow excess

storm water to disperse further out to sea• Installation of giant underwater storm water tank and pumping station at Anchorsholme Park• Total investment of £125m along the Fylde coast to increase the capacity of the town’s sewer

system

Copyright © United Utilities Water Limited 2015

Q & A

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