1. Adrian Cook, Group Head of Procurement
Growing Together
Adrian Cook, Group Head of Procurement
October 2013 – Supplier Presentation

2. Group Procurement and Supply Growing together
Agenda
 Introduction
 Our business
 Babcock Procurement Programme
What we look for in our suppliers
 Closing remarks

3. Group Procurement and Supply Introduction
“A world-class company needs a world-class
supply chain”
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
Two key beliefs
“Companies usually get the suppliers that they deserve”

4. 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

5. 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

6. Babcock International Group Our business – what we do and how we are organised
Marine and Technology
Revenue £1,201.6m
Operating profit £156.9m
Defence and Security
Revenue £820.2m
Operating profit £112.2m
Support Services
Revenue £943.7m
Operating profit £91.2m
International
Revenue £278.0m
Operating profit £24.7m
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
A major support provider to all three UK armed forces delivering training , infrastructure and equipment support
Equipment Support
White fleet and construction vehicle management
Training
Defence infrastructure support
Aircraft engineering and base support
Provider of critical support services to government, local authorities and blue chip companies
Nuclear
Education and Training
Network Engineering: Rail, Power and Communications
Mobile Assets: Emergency Services, Mining and Construction and Airports
Emergency Services and Infrastructures
One of the leading engineering support services companies in South Africa
Power generation support
Power lines
Volvo and DAF truck distribution
Plant hire
Middle East - military aircraft support

7. 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
74% total contract value >£100m
In FY12/13 new bids 40% and rebids 100%
Revenue (£m)
Op profit (£m)
£bn

8. Babcock International Group Procurement Programme – excellence as a standard
Select and manage suppliers that support us in delivering cost savings solutions and ultra reliable service
UK Supplier Spend
£1.4 billion
Our key approach
Category Management
Currently trading with
10,000 + suppliers across
local economies
Expenditure with 350
key trading suppliers £650 million

9. 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.

10. 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
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
Service Value Chain

11. 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