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OUR PENNON APPROACH
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PENNON WATER SERVICES A NATIONAL NON-HOUSEHOLD RETAIL STRATEGY OUR - - PowerPoint PPT Presentation
PENNON WATER SERVICES A NATIONAL NON-HOUSEHOLD RETAIL STRATEGY OUR - - PowerPoint PPT Presentation
PENNON WATER SERVICES A NATIONAL NON-HOUSEHOLD RETAIL STRATEGY OUR PENNON APPROACH DELIVERING GROWTH BY LEVERAGING THE STRENGTH OF THE GROUP MERGING WATER SIGNIFICANT OPPORTUNITY TO BUSINESS SERVICES COMPETITIVE CREATE INDUSTRY TO CREATE
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CREATING A CREDIBLE NATIONAL PLATFORM
BRINGING TOGETHER FIVE EXISTING INCOME STREAMS
- Merger of South West Water and Bournemouth
Water provides opportunity for larger, efficient retailer
- Generating annual £136m of turnover, £3m of net margin (determined by Ofwat)
- Current success with customer switching in Scotland
- Out of area successes with Industrial customers at Fawley and Teeside – retail services and complementary value-added
activity
- Integration of existing businesses delivers operating synergies of c.10%
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OUR STRATEGY TO RETAIN AND GROW
DELIVERING A UNIQUE CUSTOMER PROPOSITION
STRATEGY TO RETAIN EXISTING CUSTOMERS AND GROW THROUGH CUSTOMER ACQUISITION NATIONWIDE LOW RETAIL MARGINS SO CUSTOMER RETENTION IS KEY
- Building foundation of strong retail relationships
ADD VALUE THROUGH MARGIN ENHANCING SUPPLEMENTARY SERVICES
- Flow monitoring
- Leak detection and repair
- Water hygiene services
- Water management services
CUSTOMER PROPOSITION BUILT ON SIMPLICITY AND TRANSPARENCY
- Tariffs and services to help customers save water and save money
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UNDERSTANDING THE OPPORTUNITY
THE LARGEST COMPETITIVE WATER MARKET IN THE WORLD
NET RETAIL MARGINS
2.5%
Determined by OFWAT NHH CUSTOMERS
1.2m
Estimated nationally VALUE ADDED
c.£100m
MARKET REVENUE
£2.5bn
FURTHER MARKET OPPORTUNITIES THROUGH VALUE- ADDED SERVICES
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LEVERAGING PENNON’S NATIONAL FOOTPRINT
COMPETITIVE ADVANTAGE THROUGH VIRIDOR’S 30,000 CUSTOMER BASE
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- Commercial customer relationships and culture already exist
- Offers benefits to group and customers
- Routes to market
- Operating synergies
- Joint customer proposition to secure Group position – savings
- n water bills can offset waste collection costs
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OPPORTUNITY TO CREATE INDUSTRY LEADER
LEVERAGING PENNON GROUP’S NATIONAL FOOTPRINT
- Existing Viridor base provides enough scale to move
PWS to top five position
- Viridor key relationships:
- T
- p 14 local authority customers present
- pportunity worth £54m revenue
- Local authorities provide platform for growth
- Establishing scale creates efficiency and
strengthens position ahead of potential household competition
7 50 100 150 200 250 Thames Water Severn Trent Water United Utilities Yorkshire Water Anglian Water Welsh Water Northumbrian Water Pennon Water Services Affinity Water South East Water Southern Water Wessex Water Bristol Water
- S. Staffordshire Water
Portsmouth Water S&SE Water Dee Valley Water NHH Customers (k) Viridor base
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OUR PENNON APPROACH
DELIVERING GROWTH BY LEVERAGING THE STRENGTH OF THE GROUP
GROUP CUSTOMER BASE NATIONWIDE PROVIDES OPPORTUNITIES FOR:
- competitive advantage
- efficiency
- increased returns
CREDIBLE RETAIL PRESENCE IN 2017 AHEAD OF POTENTIAL HOUSEHOLD COMPETITION
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Water business services (SWW & BW) Waste management customers (Viridor) OPPORTUNITY TO CREATE A NATIONAL RETAILER
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OUR PENNON APPROACH
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DELIVERING GROWTH BY LEVERAGING THE STRENGTH OF THE GROUP
ALREADY WINNING CUSTOMERS OUT OF AREA – SCOTLAND, FAWLEY , TEESIDE 30,000 VIRIDOR CUSTOMERS EQUATING TO C.90,000 ACCOUNTS MERGING WATER BUSINESS SERVICES TO CREATE PLATFORM FOR NATIONAL GROWTH STRONG STRATEGY AND UNIQUE CUSTOMER PROPOSITION OF SUPPLEMENTARY SERVICES SIGNIFICANT COMPETITIVE ADVANTAGE THROUGH VIRIDOR CUSTOMER BASE OPPORTUNITY TO CREATE INDUSTRY LEADER
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