Captains of Industry

2020 Core Deck

2 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Two thirds of Captains expect the economic condition of the country to worsen over the next 12 months

C1. Do you think that the general economic condition of the country will improve, stay the same or get worse over the next 12 months?

Improve Get Worse

100

80 30% Improve 70 60 Stay the same 50

Get worse 66% 4% 40 Don't know 30 20

0 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 20

Base: British Captains of Industry (102); Interviewed Feb – July 2020

3 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only The impact of coronavirus dominates as the most important issue facing Britain, with Brexit and economic uncertainty following C4. What do you see as the most important issues facing Britain today?

Top NETs mentioned 86%

52% 49%

Impact of coronavirus Brexit uncertainty Economic uncertainty

Base: British Captains of Industry (102); Interviewed Feb – July 2020

4 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Over a third of Captains think that business – for their own company- will worsen over the next 12 months, although not to the extent felt in the 2008 recession

C2. Do you think that business for your own company will improve, stay the same or get worse over the next 12 months?

Improve Get Worse

90 2% 80

60 Improve 35% 42% 50

Stay the same 40

Get worse 30 20 Don't know 21% 10

0 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 20

Base: British Captains of Industry (102); Interviewed Feb – July 2020

5 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Economic uncertainty and the impact of coronavirus are the most important problems for companies, followed by a quarter expressing concern regarding maintaining and retaining staff

C5. And, what are the most important problems facing your company today?

Chart showing NETs

59%

47%

25% 18% 16% 11% 11% 12% 10% 8%

Government General Economic Impact of Maintaining & Transformation Brexit Financial regulation & Staff wellbeing economic Other uncertainty coronavirus retaining staff / expansion uncertainty support legislation climate

Base: British Captains of Industry (102); Interviewed Feb – July 2020

6 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Two thirds (66%) show confidence that the government’s economic policy will improve the state of the economy in the long term C3. To what extent do you agree with the following statement? In the long term, this Government's policies will improve the state of the British economy

Agree Disagree

120 2% Strongly agree 14% 100 19%

Tend to agree 80

Neither agree 14% 60 nor disagree 40 Tend to disagree 52% 20 Strongly disagree 0 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 20

Base: British Captains of Industry (102); Interviewed Feb – July 2020

7 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Over half of Captains (54%) agree the government’s industrial strategy will encourage economic growth in Britain

C3. To what extent do you agree or disagree with the following statements? (%)

Strongly Agree Tend to agree Neither agree nor disagree Tend to disagree Strongly disagree No opinion Refused

2020 8 46 27 16 3

3 The government’s 2018 28 43 22 2 4 industrial strategy will 1 effectively encourage economic growth in this 2 country 2017 25 35 31 4 4

2016 3 33 46 13 5

Base: British Captains of Industry (102); Interviewed Feb– July 2020

8 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only There is strong support that regional inequalities should be reduced

C3. To what extent do you agree or disagree with the following statements? (%)

Strongly Agree Tend to agree Neither agree nor disagree Tend to disagree Strongly disagree Government investment should focus on regions such as the North of England to grow those areas and reduce regional Government investment should focus on inequalities regions such as the North of England to grow 34 48 10 7 1 those areas and reduce regional inequalities

Government investment should focus on London and surrounding area given how Governmentimportant investmentit is to the UK should economy focus on London and surround area given how important it is to the UK economy 3 15 21 47 15

Base: British Captains of Industry (102); Interviewed Feb– July 2020

9 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only More than 8 out of 10 Captains think that coronavirus represents a very high/high threat to the UK economy

SR14. What level of threat do you think coronavirus poses to each of the following? (%)

Very high threat High threat Moderate threat Low threat Very low threat No opinion / don't know

The UK economy 56 27 15 1

The world 40 28 23 8

Your business 20 30 32 13 4

Your supply chain 17 25 41 16 1

Your workforce 15 36 31 13 3 1

Your costs 12 31 35 13 8

Your export book 5 16 16 18 14 30

R&D 4 12 25 32 22 4

Base: British Captains of Industry (88+); Interviewed Feb – July 2020.

10 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Over half of Captains (56%) think the government have handled the coronavirus outbreak fairly well

SR15. Overall, how well or badly do you think the government have handled the coronavirus outbreak so far. Would you say? (%)

Very well Fairly well Fairly badly Very badly

Overall, how well or badly do you think the government have handled 2 56 29 13 the coronavirus outbreak so far. Would you say?

Question added from 9th April 2020 Base: British Captains of Industry (52); Interviewed Feb – July 2020

11 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only The coronavirus job retention scheme and deferring VAT payments are the most used government support activities, however, a quarter are not using any

SR16 Have you used or do you plan to use any of the government support activities during the pandemic ?

Currently use

44% 38%

26% 24% 18%

Providing statutory Coronavirus job sick pay for all those Coronavirus Large Business Not planning to use Deferring VAT payment Other retention scheme advised to self Interruption Loan Scheme any isolate

Question added from 9th April 2020 Base: British Captains of Industry (50); Interviewed Feb – July 2020

12 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only 4 in 10 Captains strongly agree that successful handling of the transition period is vital to their business

CEU201A. To what extent do you agree or disagree with the statement “How well the government handles the Brexit transition period is vital to my business” (%)

Strongly Agree Tend to agree Neither agree nor disagree Tend to disagree Strongly disagree

How well the government handles the Brexit transition 40 26 13 18 3 period is vital to my business

Base: British Captains of Industry (102); Interviewed Feb – July 2020

13 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Free movement of goods and skilled labour are the most important things for the UK to try to obtain during negotiations

CEU3. During the negotiations to decide the nature of the future relationship with the EU, what are the most important things for your business for the UK to try to obtain? (%)

Free movement of goods / frictionless trading / access to customs union 47 Freedom of movement / access to skilled labour / clarity on EU national employees 40 Seamless / consistent economic policy / regulation 14 Low taxation / tariffs 13 Certainty / clarity of a deal / on backstop 13 Access to cross-border services union e.g. Police 12 Good trading deal / relationship with the EU / Europe 10 Certainty / confidence of investment on the UK economy 9 Equivalence of financial services between UK & EU 7 Maintaining / retaining EU / qualification standards 7 Maintain financial services market position 7 Minimum paperwork / bureaucracy as possible 6 Top mentions

Base: British Captains of Industry (102); Interviewed Feb – July 2020

14 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Captains who trade internationally perceive mixed opportunities in relation to Brexit for their company, with a fifth (21%) anticipating new market opportunities beyond the EU

CEU201. What opportunities do you see in relation to Brexit for your company?

21%

11% 11% 9% 9% 9% 9% 5%

New markets Increased inward Open up access to Increase in Regulatory Access / sourcing of Reduction in Few opportunities / beyond EU investment skilled workers from domestic demand independence good / products / regulation more problems than outside EU materials opportunities

Top mentions

Base: British Captains of Industry trading internationally (66); Interviewed Feb – July 2020

15 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Majority of Captains expect the government’s focus on industrial policy relevant to Britain to improve as result of leaving the EU, however, they expect the ability to recruit skilled staff to worsen EU10. Do you expect each of the following to get better or worse as a result of the UK leaving the EU? Get much better Get a little better No change Get a little worse Get a lot worse Don't know Government's focus on industrial policy relevant to Government’s focus on industrial policy relevant to 16 59 15 11 Britain Britain Free trade negotiations with major non-EU countries Free trade negotiations with major non-EU 12 50 18 15 4 1 Increasing investment countriesin Britain 7 36 9 34 14 Increasing investment in Britain Increasing exports 5 23 31 33 9 Increasing exports Environmental standards Environmental standards 2 20 52 24 3 Employee rights and protections Employee rights and protections 2 6 63 27 2 Consumer rights and protections Consumer rights and protections 2 3 64 28 3 Ability to retain skilled staff Ability to retain skilled staff 1 10 47 33 9 BarriersBarriers to totrade trade and and tariffs tariffs for for youryour products andand 1 10 34 41 11 3 services services Prices for consumers Prices for consumers 8 22 64 7 Ability to recruit skilled staff Ability to recruit skilled staff 6 29 51 14

Base: British Captains of Industry (102); Interviewed Feb – July 2020

16 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Less than a quarter of Captains (24%) are optimistic that the UK will be able to quickly sign beneficial trade deals with China and the US CEU202. To what extent, if at all, are you optimistic or pessimistic that the UK will be able to quickly sign beneficial trade deals with major powers, such as China and the US? (%)

Very optimistic Fairly optimistic Neither Fairly pessimistic Very pessimistic

To what extent, if at all, are you optimistic or pessimistic that the UK will be able to 3 21 9 42 25 quickly sign beneficial trade deals with major powers, such as China and the US?

Base: British Captains of Industry (102); Interviewed Feb – July 2020

17 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Fewer still (15%) think such deals with compensate for any loss of trade with the EU for the UK as a whole

CEU203. To what extent, if at all, do you think such deals will compensate for any loss of trade with the EU for the UK as a whole? (%)

It will be much better It will be a little better Around the same It will be a little worse It will be much worse I don't think there will be any loss of trade with the EU

To what extent, if at all, do you think such deals will compensate for any loss of 1 14 16 44 24 2 trade with the EU for the UK as a whole? (%)

Base: British Captains of Industry (102); Interviewed Feb – July 2020

18 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Over half of Captains (52%) expect the UK- EU trade deal will come into force at the end of the transition period, but not covering all sectors. A third (35%) expect an extension

CEU 206. What do you think is the most likely outcome at the end of the Brexit transition period?

52%

35%

12%

A UK-EU trade deal The transition period is comes into force The UK exits transition with extended while negotiations Other covering some sectors no EU trade deal continue but not all

Base: British Captains of Industry (102); Interviewed Feb – July 2020

19 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Methodology and Sample Methodology

• This report presents findings of the 2020 study of Captains of Industry, widely acknowledged as the authoritative source of opinion on Britain's business elite

• Participants are Chairmen, Chief Executive Officers, Managing Directors/Chief Operating Officers, Financial Directors or other executive board directors

• Companies are from:

• Top 500 industrials by turnover; and

• Top 100 financial companies by capital employed

• Fieldwork: February – July 2020

• 102 interviews were conducted – majority conducted by telephone/video conferencing due to Covid-19 (9 conducted face to face before lockdown)

• Unless otherwise stated, each question is based on all Captains of Industry answering

• Where results do not sum to 100%, this may be due to computer rounding, multiple responses or the exclusion of don't know or no opinion categories

Sector 2020 Job Title 2020 Classification 2020 Utilities 9 Chief Executive 31 Primarily B2B 49 Mining/Minerals/Natural 1 Chairman 27 Primarily B2C 25 Resources Mix of B2B and B2C 27 Chief Financial Officer 17 Technology/Media/Telec 9 oms Finance Director 6 FTSE 2020 Construction 7 Public Relations/Corporate Affairs 6 Manufacturing 7 Director FTSE 100 16 Transport/Distribution 8 Managing Director 5 FTSE 250 22 Services/Retailing 27 Chief Operating Officer 3 Other listed and 64 Private Financial/Banking/Insura 21 Chief Information Officer 1 nce Other 9 Other 13 Employees 2020 Head Office Location 2020 1-999 17 London 43 1000-4,999 39 Outside of London 57 5,000+ 44

22 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Participating organisations (1)

Company Name Company Name

AO World PLC Mark Higgins Close Brothers Group PLC Mike Biggs Arqiva Ltd Simon Beresford-Wylie CNG Group Ltd Paul Stanley Arup Group Ltd Dervilla Mitchell Coats Group PLC Simon Boddie Associated British Foods PLC George Weston Coca-Cola European Partners PLC Leendert den Hollander Atlantica Yield PLC Francisco Martinez-Davis Computacenter (UK) Ltd Tony Conophy BAM Construct UK Ltd Neil McGruer Cordant Group PLC Phillip Ullmann Bet365 Group Ltd Peter Coates CVS Group PLC Richard Fairman Bibby Line Group Ltd Paul Drechsler Deloitte LLp Nick Owen Biffa Michael Topham Dentsu Aegis Network Euan Jarvie Bovis Homes Group PLC Keith Carnegie E.ON Energy Solutions Ltd Michael Lewis Bowmer & Kirkland Ltd Michael Kirkland Electricity North West Ltd Peter Emery British Broadcasting Corporation Marcus Arthur Electrocomponents PLC Peter Johnson BUPA Joy Linton Endeavour Mining Corp Morgan Carroll Capita plc Sir Ian Powell Euroclear Ltd Chris Elms Clifford Chance LLP Matthew Layton Ferguson PLC Geoff Drabble Clinigen Group PLC Shaun Chilton Firstgroup PLC Matthew Gregory

Showing consenting organisations only

23 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Participating organisations (2)

Company Name Company Name

Gattaca PLC Salar Farzad Lloyds Banking Group PLC Lord Norman Blackwell Glaxosmithkline PlLC Phillip Thomson Logicalis Group Limited Robert Bailkoski Global Media & Entertainment Ltd Lord Allen of Kensington Mears Group PLC Bob Holt Hargreaves Lansdown PLC Chris Hill Mindshare Media Uk Ltd Dawn Dickie Harworth Group PLC Alastair Lyons Mott Macdonald Group Ltd Prof Denise Bower Hastings Group Holdings PLC Toby van der Meer National Express Group PLC Sir John Armitt Hays PLC Paul Venables National Farmers' Union Mutual Insurance Society Ltd Richard Morley Headlam Group PLC Philip J Lawrence National Grid PLC Andy Agg Heathrow Airport Holdings Limited Carol Hui Nisa Retail Ltd Ken Towle Hill & Smith Hldgs PLC Hannah Nichols Pagegroup PLC Kelvin Stagg HSBC Holdings PLC Andy Maguire Pension Insurance Corporation PLC Tracy Blackwell IM Group Ltd Andrew Edmiston Pets At Home Group PLC Peter Pritchard Jaguar Land Rover Automotive PLC Ralf Speth Places For People Group Ltd David Cowans Janus Henderson Group PLC Richard Gillingwater Post Office Ltd Richard Taylor John Wood PLC Eamonn Collins Poundland Group PLC Austin Cooke Just Group PLC Chris Gibson-Smith Pricewaterhousecoopers Kevin Ellis

Showing consenting organisations only

24 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Participating organisations (3)

Company Name Company Name

PZ Cussons PLC Caroline Silver Sthree PLC Mark Dorman Qinetiq Group PLC Steve Fitzgerald Studio Retail Group PLC Paul Kendrick Rank Group PLC Bill Floydd Suez Recycling And Recovery Uk Ltd John Scanlon Rentokil Initial PLC Andrew Ransom Ted Baker PLC Rachel Osborne Rigby Group PLC Steve Rigby The Co-Operative Group Steve Murrells Robert Walters PLC Alan Bannatyne TP Icap PLC Robin Stewart Rothesay Holdco Uk Ltd Andrew Stoker UK Power Networks Holdings Ltd Basil Scarsella RPS Group PLC Ken Lever Universities Superannuation Scheme Ltd Sir David Eastwood Sage Group PLC Sir Donald Brydon Virgin Money David Duffy Shop Direct Ltd Ben Fletcher Weir Group PLC Jon Stanton Sig PLC Andrew Allner Wesleyan Assurance Society Ahmed Farooq Skipton Building Society Robert East Westcoast (Holdings) Limited Alex Tatham Smiths Group PLC Sir George Buckley Yorkshire Building Society Mike Regnier Spirax-Sarco Engineering PLC James Pike SSE PLC Gregor Alexander Standard Life Aberdeen PLC Keith Skeoch

Showing consenting organisations only

25 © Ipsos | 19-085831-01 Captains of Industry 2020 | August 2020 | Version 1 | Internal Use Only Statistical reliability

• Only a sample of the ‘population’ has been • Similar margins for other percentages and sub- interviewed so we cannot be certain that the groups of the respondents are given in the following figures obtained are exactly those we would have tables. It should be remembered that, in any case, found, had everybody been interviewed (the ‘true’ the ‘true’ finding is much more likely to be towards values) the centre of the possible range of responses than towards the margins • For any percentage given, however, we can estimate ‘confidence intervals’ within which the • For similar reasons, apparent differences in results true values are likely to fall. For example, if 19% relating to sub groups may, if small, not necessarily of Captains say their business will improve in the reflect genuine attitudinal differences. We can be next 12 months we can be 95% sure that the ‘true’ 95% sure that differences exceeding those in the value for the population would be between 11 and second table are genuine, or ‘significant’ 27, i.e. a margin of 8 percentage points on each differences side

STATISTICAL RELIABILTY

95% Confidence Interval Sample size 10% or 90% 20% or 80% 30% or 70% 40% or 60% 50% ± ± ± ± ± c.100 (all Captains) 6 8 9 10 10 c.80 (example subgroup) 7 9 10 11 11 c.50 (example subgroup) 8 11 13 14 14

Approximate percentage to which margins relates Sample sizes being compared (sub groups or trends) 10% or 90% 20% or 80% 30% or 70% 40% or 60% 50% ± ± ± ± ± 100 v 99 (e.g. all 2008 v all 2007) 6 8 9 10 10 50 v 50 (example subgroups) 7 9 10 11 11

EXAMPLES OF STATISTICAL RELIABILITY

Name: Name: JULIETTE REBECCA ALBONE KLAHR

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