1. Phil Lynch Senior Business Development Manager Business Retail United Utilities & John McMullen Compliance Manager, Glenmorangie

2. 2 2 International Low Carbon Heat & Water Conference 2016 23 rd February 2016 Heat & Water: Efficient Use

3. LVMH Group of Companies - 2 -

4. The interaction with the environment is extremely important to Glenmorangie Ardbeg and Glenmorangie Distillery have been producing whisky at their locations for 200 years and almost 175 years respectively Simply complying with environmental legislation is no longer an option The environment is a central part of our brands and is key to our interaction with the local community Permission to Operate - 3 -

5. What does sustainability mean to The Glenmorangie Company? The Glenmorangie Company Ltd were accountable for 96% of LVMHs total COD output (we represent 2% - 3% of the total turnover), We needed a robust solution to improve our wastewater discharge whilst allowing us to concentrate on what we are good at – making whisky! Aligned with a robust solution we needed a partner that could not only deliver the solution but also “sign-up”, to the long term sustainable ambitions that Glenmorangie have set for themselves.

6. DEEP Dornoch Environmental Enhancement Project The Glenmorangie Story

7. The interaction between academia -industry- government to foster research, innovation, economic competitiveness and sustainable development. The Triple Helix Principle A dynamic partnership with a shared vision A dynamic partnership with a shared vision

8. Glenmorangie Dornoch Environmental Enhancement Project ( DEEP) Long term commercial partnership with UUBS to deliver and operate an Anaerobic Digestion solution Partnership with Heriot Watt and Marine Conservation Society to enhance the environment in the Dormoch Firth New AD plant purifies 95% of Chemical Oxygen Demand (COD) in our waste water and displaces fossil fuels DEEP restoration project – uses the remaining 5%

9. Community Authenticity Significant Exciting

10. Organisational commonality and synergy UK’s largest listed water company Health and safety record is 0.11 incidents per 100,000 hours worked Regulated by OFWAT, DEFRA, EA, DWI and WICS FTSE 350 Climate Disclosure Leadership Index – Disclosure score 99 Performance Band A Dow Jones Sustainability Index score of 84% One of the World’s best known brands Health and safety record is 0.26 incidents per 100,000 hours worked Regulated by SEPA, HSE, HMRC FTSE 350 Climate Disclosure Leadership Index Dow Jones Sustainability Index Reputation and Brand Health and safety Operate in regulated environments Reducing environmental impact Long-term commitment to sustainability

11. United Utilities Business Solutions - Scotland United Utilities Group PLC is the largest listed FSTE 100 water company in UK – £1.7Bn turnover – c5500 employees Manage supply of around 1,700 million litres of water every day to 3.2 million homes and 200,000 businesses in the NW of England United Utilities Scotland – one of the largest water retail providers in Scotland, supplying more than 3000 sites Own and operate 567 waste water treatment works, 20 AD facilities, 93 water works and 179 catchment reservoirs Ranked in the top 10% of leading companies worldwide – Dow Jones Sustainability World Index (DJSI 82%) Hold a Platinum Plus standard for ‘The business in the community’ (BitC) Corporate responsibility index Retained membership of the FTSE4Good Index – measured performance on companies against globally recognised corporate responsibility standards

12. SPRIN G INFLO W BOILER GAS BALANC E AD WWTP SOIL ENHANCER GLENMORANGIE OUTFALL Future: Heat recovery CHP District heating Hydropower Water reuse DISTILLER Y MAINS

13. The partnership approach Co-operative and partnership working Understand the client’s drivers and goals RULES: HSE are paramount Transparency on data and risks Holistic approach on needs, risks and costs Clarity on responsibility, service and commitments Legal and regulatory obligations HOW MANAGED: Define water stewardship Identify and mitigate risks Management of the supply chain (civils, construction, M&E, process) Demonstrate continuous improvement

14. SOIL ENHANCER TARGET - water consumption management SituationTargetPath Reduce water consumption Optimise water use in heating and cooling Site water audit De-complex waste water make-up Asset inventory Optimise steam management Heating optimisation Wash-water optimisation Cooling tower cycles Reduce non-process use Chemical dosing optimisation Reduce mains water use Sub-metering Consider storm water re-use Non-process use audit Grey water and storm water reuse River abstraction reinstatement 5- 8 % + Reduction in water costs BALANC E AD WWTP

15. Summary “Water stewardship across a site promotes responsibility and control, this is the first step to innovation and efficiency” Listen and understand clients drivers Engage and commit to a long term plan Open and transparent ethos Ensure experience and skill set are right Demonstrate long-term asset planning Health, safety and the environment is paramount Organisational commonality and synergy - brand Sustainability driven by experience, data, compliance and innovation through technology Commercially driven by an Incentive Partnership Model We share a common goal for excellence in asset management