1. Senior Management Team Away Day Session 1: HMS Business Update Presentation by Paul Worthington Managing Director Friday 19th and Saturday 20th October 2012

2. Introduction and Content First year successes and achievements Dealing with opposition to change 2011/12 Operational Performance HMS Business Plan 3 Year objectives and aims Focuses in 2012/13 Away Day Actions 2011 Moving forward

3. First Year Successes and Achievements Achieving sustained operational performance with average repairs completed in less than 7 days. All Backlog repairs were completed. Out performed Business Plan financial targets Implemented mobile electronic working Increased operational output of staff Gained necessary registrations, NICIEC / Gas Safe / FENSA Achieved ISO 14001 accreditation Implementation of staff development programme ‘Evolution’ Established material procurement arrangements with Wolseley Commenced comprehensive Health and Safety training plan Won LMH Partnership of the Year Award Recent - Independent Review of Governance and Effectiveness

4. Dealing with Opposition to Change Do what we say we were going to do Communicate difficult decisions early and move forward with purpose Be open and communicate as much as possible Be prudent about our provisions Have a solid operational plan and stick to it Remove obstacles to change Be pragmatic

5. 2011/12 Operational Performance Responsive Repair performance showed sustained improvement with Emergency and Urgent repairs surpassing targets at above 99% and Routine Repairs achieving the target in March 2012. Average days to complete all repairs was at 7.5 days at the year end with customer satisfaction rising to above 85%. All backlog repairs were completed. Repairs to Vacant Homes had inconsistent performance with better performance being achieved at year end. Average construction completion <23 Days Maintained Gas servicing compliance. Sustained Gas repair targets at or around 100%.

6. HMS Business Plan Original Business Plan2011/122012/132013/14 Turnover6,32510,71411,158 Profit / Loss-792-111308 Budget2012/13 Income12,496 Profit / Loss7 12/13 Business Plan2012/132013/142014/15 Turnover12,09711,74311,838 Profit / Loss-371225232 Actual2011/12 Turnover9,218 Operational Profit / Loss155 Q1 Forecast2012/13 Turnover15,439 Profit / Loss318

7. 3 Year Corporate Objectives Focus on Efficiency; Meet business plan targets and deliver a positive rate of return. Establish effective procurement and supply chain arrangements. Ensure lean business and operational processes operate in association with effective IT systems. Maximise the use of directly employed labour within all operational areas. Deliver ongoing efficiency savings to maximise profit and commercial performance. Establish financial arrangements that are capable of responding to a changing environment. Establish open and positive relationships with clients.

8. 3 Year Corporate Objectives Focus on Improvement; Provide high performance by fulfilling the expectations of clients and meeting contractual targets. Develop a range of services that offer flexible solutions to meet changing needs, expectations and demands of clients. Ensure compliance with statutory and industry regulators. Provide opportunities for local suppliers and service providers to support the local economy. Develop an environmental strategy that complements the aspirations of the company. Ensure Quality Management practices and systems are in place. Develop a growth strategy that reduces base costs, increases turnover and leads to increasing profits.

9. 3 Year Corporate Objectives Focus on People; Constantly improve levels of satisfaction and raise expectations of clients and customers. Establish and embed effective Safety Management systems and practices. Create a workforce that reflects the diversity of the customer base across the areas in which we operate. Foster a highly skilled and adaptable workforce that matches the operations being delivered. Ensure that employees are motivated and customer driven. Ensure effective communication between customers and staff. Be an active participant in local employment and training initiatives.

10. Focuses in 2012/13 Implementation of additional work streams to match the business plan Develop Growth Strategy for non LMH works Reviewing material specifications VFM costs Move Gas servicing to fully electronic Continue investing in staff development ISO 9001 and ISO 18001 systems and processes Implementing QA and corrective action methodology Review operating costs and create efficiency plans Focus on Health and Safety processes Review governance and company arrangements Develop employment and apprentice initiatives

11. Away Day Priorities 2011 Materials and supplies; poor quality, insufficient stocks, overpriced, no deliveries. Back office; rude staff, out of touch, don’t answer queries, no understanding of who does what. Scheduling; cancelling appointments, not turning up, erratic, too many jobs, not answering phones, not being proactive, poor customer care. Challenge What is different now? Were these the real priorities? What do your teams think?

12. Moving Forward Business viability (Income and Expenditure) Achieving market costs for all work streams Diversifying and establishing ourselves within the target markets Continuing the cultural change journey Resolution of UNITE dispute / Employment Tribunal ongoing Investing in local economy and supply chain Core staff skills, being ahead of the curve Taking growth opportunities Sustaining core performance Achieving 3 year aims and objectives Learning from what we have done well and what we can do better Positive / Open / Meaningful Communication

13. Paul Worthington Managing Director paul.worthington@housing-maintenance.co.uk Tel; 0151 235 2379 www.housingmaintenancesolutions.org