Anglian Water Group plc Briefing Pack 21 December 2001.

Anglian Water Group plcBriefing Pack

21 December 2001

Executive Summary

Overview

•AWG plc was incorporated in England and Wales on 29 February 2000.

• Group turnover (including joint ventures) was £1,287.9 million, an increase of 46.6 % on the previous year (2000 – £878.5million).

•Operating profit was £312.9 million (2000 – £345.0 million), with the change from last year mainly due to the impact of the regulated price reductions only partly offset by the impact of their acquisitions.

•Operating profits in the regulated business were £283.4million (2000 – £341.2 million). Total operating costs were £276.7 million (2000 – £271.6 million).

•Non-regulated operating profits rose to 12.4% of the total (2000 – 1.7%)

•Profit before tax, goodwill amortisation and exceptional items have fallen from £231.0 million to £153.8 million.

•Market Capitalisation stood at £1631m year ended 31 March 2001.

•Full year payment to shareholders was 44 pence per share, up 2.3 %Historical Stock Chart

Business Description

Anglian Water is one of the UK’s leading water companies, with a rapidly growing reputation overseas and a strategy designed to deliver a step-change in non-regulated performance.

AWG provides drinking water and wastewater treatment services to 5.8 million customers in the nation through its Anglian Water unit. In light of utility deregulation in the UK, AWG is boosting its emphasis on its international and non-utility businesses, which have grown to account for nearly half of sales. The company enhanced its asset development and management capabilities by acquiring Scottish construction company Morrison in 2000. AWG provides water and wastewater services to another 11 million customers abroad, and it is increasing its presence in Eastern Europe, the Asia/Pacific region, and Latin America.

Business aactivities include Water supply and distribution, wastewater collection and treatment, process engineering, construction, commercial, residential and infrastructure developments and asset management.

AWG is a broadly-based infrastructure and asset management group with offices on three continents, a UK water company rated number one for service by Ofwat, twice as many customers abroad as they have in the UK, non-regulated business accounting for operating profits of 12.4 per cent of the total – and, with the acquisition of Morrison, a development, construction and asset management business, the group now has a £2.7 billion order book in their target markets.

Prime objectives

Their prime objectives are:

•To be the UK water industry’s number one by 2002 (which was achieved in 2001 itself before the targeted timeline);

•A global player by 2007;

•And to grow a thriving facilities management (FM) business

All the while building a business steeped in sustainable principles.

Corporate Strategy

Overview

Anglian Water has recently indicated a change of company name, to AWG.plc, reflecting the expansion of the company's operations beyond its former boundaries in East Anglia. The company has also completed a restructuring of its operations with the intention of 'creating a single integrated structure to remove unnecessary demarcations between their group operations'. However, the new organisation retains the distinction between its worldwide water and wastewater (sewerage) business and its non-regulated operations. The company has indicated a change in focus of its activities, with greater emphasis being placed on participation in non-regulated markets.

Product and Brand Development

One non-core business area, where there has been considerable new product development, is facilities management. Products and services offered under this umbrella include vehicle leasing, environmental services, property and e-commerce, including an Internet shopping and services site.

Market Development

The group has continued to extend the geographic range of its operations over recent years, winning water supply, sewerage and drainage contracts in many parts of the world, including China (28 contracts to date), Thailand, Malaysia, the Philippines, Singapore, Abu Dhabi, Argentina, Chile and Brazil, as well as in many countries in Europe, both east and west. Two concession companies have been established - one for water supply and the other for wastewater services - to position the company to seek profitable opportunities for the provision of these services, both in the UK and overseas.

Advertising Profitability and M&A Activities

Advertising

In 1999, Anglian Water spent more on advertising (over £600,000) than any other UK water supply company, according to ACNielsen MMS data. Unlike most other companies in the sector, where the bulk of spending has been on press advertising, all of Anglian Water's expenditure was on television advertising.

Profitability

Turnover rose to £872.9m, from £829.2m, over the year to 31 March 2000, a 5.2% increase. Profit before tax and exceptional items, for the same period, totalled £230.6m, down 10.6 compared with the figure of £258.0m recorded the year before. The drop in profits is attributable to a voluntary price freeze, adopted by the company in advance of the price determination ruling of OFWAT, an action estimated by the company to have reduced profits by some £30m.

Merger and Acquisitions

The recent acquisition of Morrison, a Scottish construction group, by Anglian Water attracted some critical press comment, on the grounds that there is perceived to be little synergy between the activities of water supply and construction. It remains to be seen to what extent these non-core operations can add value to the operations of the Group.

The acquisition of Morrison plc shortly before half-year end has resulted in an investment of £268.6 million being recorded on the books of Anglian Water Plc. Sustained progress made in FM is set to continue, as the synergies from the merger of Morrison’s and Anglian Water’s complementary interests in this area keep coming through.

Another significant acquisition during the year was that of Aguas Puerto S.A. and of its subsidiary ESVAL S.A., increasing their effective ownership of ESVAL to 49.8 per cent. This acquisition increased AWG plc’s total investment in Aguas Puerto to £142 million, giving them effective management and operational control of ESVAL.

Robin M. GourlayChairman

Richard W. JewsonDeputy Chairman

Chris J. MellorChief Executive

Mike KeohaneDirector Human

Resources

ATony EckfordED - Business Development

Roy A. PointerED- Asset Creation

and Ownership

Elliott M. MannisGroup Finance

Director

Non- Executive Directors

James Cronin Eryl MorrisDavid Challen Jim McKenna

Board Profile – Relationships

Board Profile

Robin GourlayNon-Executive Chairman

Robin Gourlay(61) has been the Non-Executive Chairman since 1994 to date. He is also Chairman of sustainable development committee and Chairman of nominations committee.

BackgroundDeputy Chairman (Feb 1994 to Sept 1994)Non-Executive Director, Anglian Water Plc (Sept 1993 to Sept 1994)Chairman, Rugby Group Plc (1996 to 1999 )Non-Executive Eirector, Astec Plc (1995 to 1999)Non-Executive Director, Beazer Homes Plc (1994 to date)Chief Executive and Managing Director, BP Nutrition (1990 to 1994)Managing Director, BP Group Australia (1986 to 1990)Board Member, Petroleum Institute, AustraliaDirector, Australian Administrative Staff CollegeChairman, Business in the Community, Victoria (1986 to 1990).

Board Profile

Chris Mellor

Chief Executive

Chris Mellor(51) is the Chief Executive from 1998 to date and also a member of sustainable development committee and chairman of executive committee BackgroundGroup Managing Director (1998 to date)Group Finance Director, Anglian Water Plc (1990 to 1998)Head of Finance and Planning, Anglian Water Plc and Anglian Water Authority (1988 to 1990)Director, East of England Investment Agency Ltd (1998 to date)Trustee, Industry in Education (1998 to date).

Board Profile

Tony Eckford

Executive Director - Business Development

Tony Eckford(51) is the Executive Director - Business Development and also a member of executive committee BackgroundManaging Director, Anglian Water International Ltd (1996 to date)Managing Director, Thames Water International (1994 to 1996)Deputy Chairman and Chief Executive Officer (1993 to 1994)Group Managing Director (1991 to 1993)AMEC Process & Energy Group LtdManaging Director, AMEC Offshore Ltd (1986 to 1993).

ANGLIAN WATER PLC

Water and wastewater services

Facilities management

Morrison: Construction, Development

and Asset Management

Other / intersegmenta

l trading

International

Anglian Water Services Limited England

Hartlepool Water Plc England

Powermarque Limited England

Geodesys LimitedEngland

Anglian Water Direct Limited England

Anglian Water (Ireland) Limited Ireland

Kaldnes Miljoteknologi A/S Norway

Morrison plcScotland

Morrison Construction Limited Scotland

Morrison International Limited Scotland

Anglian Water Plc England

Anglian Water Infrastructure Limited

England

Alpheus Environmental Limited England

Anglian Water Direct Limited England

Anglian Water International (NZ)

Limited

Zickert Miljö A /S Denmark

Aguas Puerto S.A. Chile

Empresa de Obras Sanitarias de

Valparaiso S.A. (ESVAL) Chile

Inversiones Anglian Water Limitada Chile

Morrison Homes LimitedScotland

Morrison Development Partnership Limited

Scotland

Morrison International Developments Limited

Scotland

Computer Sciences Corporation

Rutland Insurance Limited Guernsey

Business Profile - Divisions

Turnover Segmental Analysis 2001

Water and Waterwater

52%Morrison27%

Facilities Management

7%

International14%

Water and Waterwater Morrison

Facilities Management International

Turnover By Geographical Origin 2001

United Kingdom

87%

Europe8%

Rest of the World

5%

United Kingdom Europe Rest of the World

Turnover By Geographical Destination 2001

United Kingdom

87%

Europe7%

Rest of the World

6%

United Kingdom Europe Rest of the World

Business Profile - Divisions

Total Group Turnover, 2001: £1,287.9 million

Business Profile – Trading Statement, 2001

• Group turnover (including joint ventures) was £1,287.9 million, an increase of 46.6 % on the previous year (2000 – £878.5million).

•Net debt rose from £1,599.1 million at last year end to £2,388.5 million at 31 March 2001; £527.5 million of this increase is attributable to acquisitions, principally Morrison and ESVAL.

•At 31 March 2001 the group had net borrowings of £2,388.5 million (2000 – £1,599.1 million), an increase of £789.4 million during the year (2000 – £249.0 million).

•International revenues were up 53.0 % to £186.8million, FM revenue was up 46.2 % to £89.9 million. These results were offset by a 5.2 % fall in turnover in the water and wastewater business, to £696.6 million, due to regulatory price reductions and a decline in consumption caused by the continuing move to metered supply.

•Operating profits in the international business were £9.1 million (2000 – £3.3 million loss), and the facilities management (FM) businesses turned in £16.7 million, an increase of 86 % over last year.

•Operating profits from the non-regulated businesses as a whole were £38.7million (2000 – £5.7 million), 12.4 % of the group total compared with just 1.7 % in 2000.

•Earnings per share before exceptional items and goodwill amortisation have fallen by 37.6 per cent from 69.6 pence to 43.4 pence, largely as a result of the impact of the regulated price reductions.

•The board agreed that the final payment to shareholders will be 30.8p per share. The payment was in the form of redeemable shares, issued in July 2001 and redeemed in August 2001. This takes the total payment to shareholders to 44.0p per share (2000 – 43.0p).

•They have a total forward order book (excluding water and wastewater operations) valued at £2.7 billion, providing work through to 2005 and beyond.

Business Profile – Group Financials

Before

Exceptional items and goodw ill

amortisation

2001 Exceptional items and goodw ill

amortisation

Total

Before

exceptional items and goodw ill

amortisation

2000 Exceptional items and goodw ill

amortisation

Total

£m £m £m £m £m £m

Turnover

Continuing operations:

Turnover: total group and share of joint ventures 882.2 – 882.2 878.5 – 878.5

Less: share of turnover of joint ventures – – – (5.6) – (5.6)

882.2 – 882.2 872.9 – 872.9

Acquisitions:

Turnover: total group and share of joint ventures 405.7 – 405.7 – – –

Less: share of turnover of joint ventures (57.0) – (57.0) – – –

348.7 – 348.7 – – –

Group turnover:

Turnover: total group and share of joint ventures 1,287.9 – 1,287.9 878.5 – 878.5

Less: share of turnover of joint ventures (57.0) – (57.0) (5.6) – (5.6)

1,230.9 – 1,230.9 872.9 – 872.9

Operating costs before depreciation and amortisation of goodw ill (757.5) (17.2) (774.7) (390.6) (43.1) (433.7) Depreciation net of amortisation of grants and contributions (166.6) – (166.6) (137.1) – (137.1)

Amortisation of goodw ill – (8.3) (8.3) – (0.4) (0.4)

Total operating costs (924.1) (25.5) (949.6) (527.7) (43.5) (571.2)

Operating profit:

Continuing operations 281.4 (17.1) 264.3 345.2 (43.5) 301.7

Acquisitions 25.4 (8.4) 17.0 – – –

Group operating profit 306.8 (25.5) 281.3 345.2 (43.5) 301.7

Share of operating profit /(loss) in

Joint ventures – continuing operations – – – (0.2) – (0.2)

- acquisitions 5.3 – 5.3 – – –

Associates - acquisitions 0.8 – 0.8 – – – Total operating profit: group and share of joint ventures and associates 312.9 (25.5) 287.4 345.0 (43.5) 301.5

Profit on disposal of businesses – – – – 16.4 16.4

Loss on sale of f ixed assets – (2.7) (2.7) – – –

Profit on ordinary activities before interest 312.9 (28.2) 284.7 345.0 (27.1) 317.9

Interest payable (net) (159.1) – (159.1) (114.0) – (114.0)

Profit on ordinary activities before taxation 153.8 (28.2) 125.6 231.0 (27.1) 203.9

Tax on profit on ordinary activities (27.2) 0.9 (26.3) (40.1) 2.1 (38.0)

Profit on ordinary activities after taxation 126.6 (27.3) 99.3 190.9 (25.0) 165.9

Equity minority interest (5.9) – (5.9) (1.1) – (1.1)

Profit for the financial year 120.7 (27.3) 93.4 189.8 (25.0) 164.8

Dividends – including non-equity – – – (0.3) – (0.3)

Retained profit for the financial year 120.7 (27.3) 93.4 189.5 (25.0) 164.5

Earnings per share – basic 43.4p (9.9p) 33.5p 69.6p (9.1p) 60.5p

Earnings per share – diluted – – 33.4p – – 60.3p

Group and company balance sheet at 31 March

Group Company

2001 2000 2001

£m £m £m

Fixed assets Intangible assets 311.5 15.9 –

Tangible assets 3,961.5 3,551.1 –

Investments

Joint ventures:

– Share of gross assets 278.4 0.2 –

– Share of gross liabilities (263.2) (0.2) –

15.2 – –

Associates 0.9 0.3 –

Other investments 32.4 28.4 1,704.1

Total investments 48.5 28.7 1,704.1

4,321.5 3,595.7 1,704.1

Current assets

Stocks and w ork in progress 169.0 13.5 –

Debtors 547.8 247.5 19.7

Investments 124.2 7.5 –

Cash and deposits 173.6 155.6 –

1,014.6 424.1 19.7

Creditors: amounts falling due w ithin one year

Short-term borrow ings (723.9) (90.0) –

Other creditors (574.8) (307.9) –

(1,298.7) (397.9) –

Net current (liabilities) / assets (284.1) 26.2 19.7

Total assets less current liabilities 4,037.4 3,621.9 1,723.8

Creditors: amounts falling due after more than one year

Loans and other borrow ings (1,962.4) (1,672.2) –

Other creditors (106.3) (99.4) –

(2,068.7) (1,771.6) –

Provisions for liabilities and charges (36.7) (34.2) –

1,932.0 1,816.1 1,723.8

Capital and reserves

Called up share capital 34.5 35.8 34.5

Share premium account 1.8 – 1.8

Capital redemption reserve 118.5 – 118.5

Other reserves 309.9 365.8 1,550.8

Profit and loss account 1,353.7 1,383.0 18.2

Total shareholders’ funds 1,818.4 1,784.6 1,723.8

Equity minority interest 113.6 31.5 –

Capital employed 1,932.0 1,816.1 1,723.8

Analysed as:

Equity 1,925.8 1,807.6 1,717.6

Non-equity 6.2 8.5 6.2

1,932.0 1,816.1 1,723.8

Profit and loss account

1997 1998 1999 2000 2001

£m £m £m £m £m

Turnover

Water supply and w astew ater services 697.7 727.7 749.5 735.5 696.6

International 159.8 138.9 104.9 122.1 186.8

Facilities management 6.9 18.2 29.4 61.5 89.9

Morrison - - - - 363.2

Less inter segment trading (22.2) (28.0) (45.8) (40.6) (48.6)

842.2 856.8 838.0 878.5 1,287.9

Total

- Group 837.1 850.1 829.2 872.9 1,230.9

- Joint Ventures 5.1 6.7 8.8 5.6 57.0

Operating profit (after goodw ill amortisation and exceptional items)

Water supply and w astew ater services 311.3* 358.6 325.9* 298.8* 270.9*

International (24.9) § (7.4) (7.8) § (4.0) § 7.0 §

Facilities management - 1.7 3.9 8.6 15.9

Morrison - - - - 6.7#

Other - (0.1) 0.2 0.4 (12.0)**

Less inter segment trading - (0.8) (1.9) (2.3) (1.1)

286.4 352.0 320.3 301.5 287.4

(Loss)/profit on disposal of businesses (8.2) 0.4 2.2 16.4 -

Profit/(loss) on sale of f ixed assets - 6.0 3.3 - (2.7)

Profit on ordinary activities before interest 278.2 358.4 325.8 317.9 284.7

Interest payable (net) (70.2) (84.2) (98.7) (114.0) (159.1)

Profit on ordinary activities before taxation 208.0 274.2 227.1 203.9 125.6

Tax on profit on ordinary activities (23.1) (29.5) (3.4) (38.0) (26.3)

Windfall tax on utilities - (131.8) - - -

Profit on ordinary activities after taxation for the f inancial year 184.9 112.9 223.7 165.9 99.3

Payment to shareholders 34.5p 39.0p 43.0p 43.0p 44.0p

Earnings per ordinary share - basic 68.6p 41.6p 81.0p 60.5p 33.5p

Earnings per ordinary share before exceptional items 86.8p 87.9p 91.5p 69.5p 40.4p

Balance sheet 1997 1998 1999 2000 2001

Fixed assets 2,787.2 3,034.0 3,258.1 3,595.7 4,321.5

Net current (liabilities)/assets ‡ (129.0) (177.8) (130.9) (46.9) 142.0

Long-term liabilities (103.7) (106.7) (95.2) (99.4) (106.3)

Provisions for liabilities and charges (35.9) (18.4) (25.3) (34.2) (36.7)

Net borrow ings (938.6) (1,148.6) (1,350.1) (1,599.1) (2,388.5)

Capital employed 1,580.0 1,582.5 1,656.6 1,816.1 1,932.0

Business Profile – Anglian Water Plc


Anglian Water is a part of the AWG plc group of companies and one of the leading providers of water and wastewater services in the UK. Located in the east of England, it serves the needs of over five million industrial, commercial and domestic customers.

Key Financials, 2001

Turnover: £1,230.9 million

Profit before tax: £257.4 million.

Operating Margin 22.9%

Operating Income: £281.3 million

Total Current Assets: £1,014.6 million

Services

Water and wastewater services in the UK.

Major markets

The AWG plc group of companies revolves around whole life management of infrastructure assets in the utility, transport and property sectors. Their capabilities include skills and experience in creation, management and operation of assets both within the UK and internationally.

The group is established to retain the strength derived from their public service traditions and focuses on the creation of a single integrated structure to derive maximum benefit from their complementary businesses.

Address:

Anglian House, Ambury Rd.

Huntingdon, Cambridgeshire PE29 3NZ,

United Kingdom

Phone: +44-(0) 1480-323-000

Fax: +44-(0) 1480-323-115

Website: www.anglianwater.co.uk

Table 44 Forecast Capital Expenditure By Anglian Water Services, 2001-2005 Year £ % Change E 2001 274.0 -19% 460.32002 278.5 +2% 467.92003 281.4 +1% 472.82004 283.5 +1% 476.32005 285.0 +1% 478.8 Units: £ million and E million at 2000 prices Note: Year end is March Source: Trade and MSI forecasts

Business Profile – Water and wastewater ServicesBusiness Description

Water and wastewater services: This serves as a sewerage undertaker measuring approximately 27,500 square km and stretches from the Humber in the north to the Thames in the south and from Daventry in Northamptonshire to the east coast;

The Water supply and wastewater service’s turnover in the last year (2000) fell by 5.3 per cent (2000 – 1.9 per cent), largely as a result of the impact of the Final Determination of the Periodic Review conducted by Ofwat, which has had the effect of reducing Anglian Water Services Ltd’s customer bills in the current year.

The percentage of turnover relating to measured customers now stands at 46.6 per cent, up from 42.9 per cent in the previous year, partly because customers continue to switch to metered supply. Operating costs, excluding exceptional items and depreciation, rose from £271.6 million to £276.7million, reflecting inflation and additional obligations, partly offset by efficiency gains as their group re-organisation continued to provide benefits. Anglian Water Services Ltd’s current year capital expenditure was £263 million.

Major Markets

The UK’s largest regional water and wastewater company based on geographic area served. Its overseas operations are presently concentrated in Europe, Asia, Australia,

North and South America and New Zealand. It serves 4.1 million people in the UK and a further 3.1 million with its international operations

The UK is Anglian’s major market, serving 4.1 million people with water and 5.4 people with wastewater services. At present its major international markets are concentrated in Europe and North America

Key financials 2001:

Turnover: £696.6 million

Profit before interest £268.2 million

Net operating assets £3,524.1 million

Country of Incorporation

Activities

Anglian Water Plc Water supply and wastewater services

England Holding company

Anglian Water Services Limited

England Water and wastewater undertaker, regulated principally by the Water Industry Act 1991.

Hartlepool Water Plc England Water undertaker, regulated principally by the Water Industry Act 1991

Principal Group of Companies

Business Profile – Water and wastewater Services

Turnover

696.6

735.5

660

680

700

720

740

2001 2000

Years

£M

Net operating assets

3524.1

3208.3

3000

3200

3400

3600

2001 2000

Years

£m


Profit before interest

268.2

298.8

240260280300320

2001 2000

Years

£m


Business Profile – Morrison


Morrison is the latest addition to awg plc and one of the best known and respected development, construction and asset management companies in the U.K. Morrison employs over 3,000 people across three divisions which cover all sectors of industry from motorways to hotels.

The acquisition of Morrison plc contributed £363.2 million to the AWG group turnover, including joint ventures and £12.9 million to the group operating profit for the six months following acquisition. Morrison is a complex group, and upon acquisition, a thorough review of contract status and costing was carried out, enabling the development of the strategy for the businesses going forward.

In the 6 month period prior to acquisition Morrison recorded a loss before tax of £36.2 million with an associated tax credit of £7.4 million. Losses arose on six projects, five of which are now complete, caused by contractual difficulties and overruns. In addition some property transactions were delayed to the second half of the financial year. A detailed fair value exercise has been carried out on the acquisition balance sheet of Morrison as a result of which £22.9 million of fair value adjustments have been made. Goodwill arising on this acquisition is £235.5 million.

Morrison was the first construction company in Europe to achieve ISO 14001, a qualification which places environmental management in its broader community context.

HEAD & REGISTERED OFFICE:

Morrison House

12 Atholl Cresecnt

Edinburgh

EH3 8HA

Tel: (0131) 228 4188

Fax: (0131) 337 1880




Net operating assets £257.4 million



Activities

Morrison: Construction, Development and Asset Management

Morrison plc(2) Scotland Holding company Morrison Construction Limited

Scotland Building and civil engineering and utility contracting

Morrison Homes Limited Scotland Development of residential estates Morrison Development Partnership Limited

Scotland Construction and the development of land and buildings

Morrison International Limited

Scotland Building and civil engineering contracting

Morrison International Developments Limited

Scotland Development of land and buildings

Principal Group of Companies


Turnover

363.2

0100200300400

2001 2000

Years

£m

Turnover


6.7

02468

2001 2000

Years

£m



257.4

0

100

200

300

2001 2000

Years

£m


Business Profile – International


International

International: This includes long-term concessions, operation and management, process design and contracting, innovative technology and design and build contracts

Turnover, including joint ventures has increased from £122.1 million to £186.8 million, largely as a result of the acquisition of ESVAL Corporation. Results have turned around from an operating loss of £3.3 million to an operating profit of £9.1 million. These comprise contract profits of £19.2 million (2000 –£5.3 million) offset by development costs of £10.1 million (2000 – £8.6 million).





International:

International Business Development

AWG plc

Anglian House

Ambury Road

Huntingdon

Cambs PE29 3NZ

email: [email protected]

fax: 00 44 1480 323 125


International


Activities

Anglian Water International Limited

England International water and wastewater business development services; holding company

Anglian Water International Holdings Limited


Anglian Water Overseas Holdings Limited

England

PURAC AB Sweden Contracting for water and wastewater

treatment processes PURAC GmbH Germany PURAC Pty Limited (1)

Australia

PURAC Limited England PURAC-Anglian Water Treatment System (Beijing) Co Ltd

China

PURAC Water Spolka Z.o.o

Poland

Business Profile – InternationalSeveromoravské Vodovody A Kanalizace Ostrava a.s

Czech Republic Water and wastewater treatment

Vodovody A Kanalizace Jizvní Cvechy a.s

Czech Republic

Vodovody A Kanalizace Beroun a.s

Czech Republic

Anglian Water International (NZ) Limited

New Zealand Management and operation of wastewater projects

Anglian Water (Ireland) Limited

Ireland Management and operation of leakage reduction and wastewater projects

Kaldnes Miljoteknologi A/S

Norway Manufacture of wastewater treatment media; contracting in wastewater treatment processes

Zickert Miljö A /S Denmark Contracting in water and wastewater treatment processes

Aguas Puerto S.A Chile Holding company Empresa de Obras Sanitarias de Valparaiso S.A. (ESVAL)

Chile Water and wastewater treatment

Anglian Water International Holdings Limited y Compania Limitada

Chile Holding company

Inversiones Anglian Water Chile Limitada

Chile Holding company


Turnover

186.8

122.1

050

100150200

2001 2000

Years

£m

Turnover


7

12.4

0

5

10

15

2001 2000

Years

£m



483.1

171.2

0

200

400

600

2001 2000

Years

£m


Business Profile – Facilities Management



Now that all the product businesses have been sold the main fraction left is Purac an engineering contracting company based in the UK. Anglian Water is rapidly growing its internet busienss with a direct sales operation - Anglian Direct - selling white goods. There is also a vehicle leasing and property business.



Activities

Powermarque Limited

England Transport leasing and fleet maintenance

Geodesys Limited England Asset and management services Anglian Water Infrastructure Limited

England Provision of infrastructure services to developers

Alpheus Environmental Limited

England Wastewater treatment

Anglian Water Direct Limited

England Internet shopping and services

MVM Holdings Limited


Ambury Estates Limited

England Corporate property management, facilities, management, architecture and project management and development consultancy

Ambury Investments Limited

England Property management





FM companies have contributed turnover of £89.9 million (2000 – £61.5 million) and operating profit of £16.7 million (2000 – £9.0 million) to group performance. Continued growth has been achieved by the existing businesses during the year, and small acquisitions have increased the portfolio of services provided.

Business Profile – Significant Events

October 31, 2001

AWG praised for its approach to corporate social responsibility. The Association of British Insurers (ABI) has become the latest organisation to recognise the progressive way AWG recognises and reports on its ‘corporate social responsibility’

September 21, 2001

The Board of AWG Plc has decided to restructure the Group within AWG's overall corporate structure. Key objectives of the restructuring include the improvement of operational and financial efficiency, returns to shareholders and improved regulatory transparency.

June 12,2001

Chris Mellor, Chief Executive, AWG said” In the UK regulated business we have already arrived at the number one spot, topping the Ofwat water league table for overall service two years sooner than we targeted. We have consolidated our international presence, with regional offices on three continents, increased operating profits to £9.1 million and our order book stands at record levels. Our FM businesses almost doubled operating profits for a third successive year to £16.7 million.”

April 19, 2001

AWG planned an innovative break-up strategy that could deliver a £1.6bn payout to shareholders in cash or shares. The former Anglian Water group plans to split in two: the regulated water operation would be demerged and AWG would become a construction and services business

August 24, 2000

Chris Mellor, Chief Executive of Anglian Water, said: “In the UK water sector, outsourcing has only just begun. As water companies concentrate on fewer activities, there will be opportunities for groups like ours to construct, operate and maintain a wide range of assets.”

Group


August 20, 2001

An effluent re-use system developed by Anglian Water beat off competition from five other water companies to claim the prestigious Green Apple Award 2001. The process, which saves millions of litres of drinking water per day, was developed by Anglian Water Technology Group for Alpheus Environmental, which owns and operates the system.

May 6, 2001 Anglian Water entered into a strategic Expense Management contract with Deecal International. Deecal’s Scorpion software will be used to electronically intercept and track Anglian’s expenditure on its commercial card programme

April 3, 2001 Anglian Water, in partnership with Mitsubishi, has been invited to enter the final stage of negotiations for the largest water contract currently available in the international water market. Serving the Chinese capital, the US$200 million contract, ‘Beijing No.10’, is to design, build and operate a water treatment plant for twenty years, to provide safe drinking water for 2 million Beijing residents

Anglian Water

November 27, 2001

Morrison Residential Properties Ltd (MRPL) - a joint venture between Morrison Homes Ltd and Bank of Scotland Corporate Banking - today (27 November) announced the sale of its Scottish market rent portfolio to CapitalTech plc. The sale netted MRPL more than £25 million and came as a result of its five-year business plan maturing.

August 24, 2000

The boards of Anglian Water and Morrison announced that they have agreed to combine their businesses through a recommended cash offer to be made by Schroder Salomon Smith Barney on behalf of Anglian Water for the entire issued and to be issued ordinary share capital of Morrison.

Morrison


February 14, 2001

The water and wastewater Services of the AWG group received above average EcoValue'21® ratings. Severn Trent Plc, Vivendi Universal S.A. and AWG Plc received the highest Innovest EcoValue'21® environmental performance ratings based on a research conducted by Innovest Strategic Value Advisors, a New York-based financial research firm

Water and wastewater Services

Group - Share price

As of 20 December 2001

•Change -7.00

•% Change -1.31%

•Open 534.00

•High 550.00

•Low 520.00

As of 20 December 2001

Fundamentals

52 wk High 629

52 wk High Date 25/05/2001

52 wk Low 501.5

52 wk Low Date 19/03/2001

Market Cap 1,490m

Volume 1,350,400

Yield 0.00

Dividend 0.00

Dividend Date NA

P/E Ratio 15.73

EPS 33.50

Exchange London

Anglian Water Group plc Briefing Pack 21 December 2001.

Documents

uk water company

water supply

drinking water

asset management business

anglian water unit

asset management group

uk water industrys number

business aactivities