Iconic projects and recent wins £70m project win £1.5bn project win HK$2.9bn project win US$305m project win 2019 2019 2019 2019 Edinburgh Futures The Central Track Alliance Homantin luxury The second phase of Institute refurbishment contract spanning London residential project in construction for The and extension, North West, London North Kowloon, Hong Kong Wharf development in University of Edinburgh East and East Midlands routes Washington DC 2015 2016 2017 2018 Beauly to Denny – the Caltrain – the electrification Hinkley Point C – the first LAX Automated People electricity transmission line of a 52-mile long rail nuclear power station in Mover – improving journeys brings clean energy from corridor is our largest a generation for 80 million passengers who remote wind farms to the grid contract in the US to date pass through each year 2014 2009 2004 1986 Heathrow Airport Terminal M25 – our joint venture was We acquired our Hong Kong We began work on the 2B – one of the largest awarded the 30-year DBFO joint venture Gammon, and Channel Tunnel and entered airside projects in the contract which we still started work on the Castle Peak the US market with the airport's history opens operate today Road Improvement acquisition of Heery 1945 1949 1950 1976 Loch Sloy Dam – our Woodhead Tunnel 3 – our Staythorpe Power Station – Mina Jebel Ali Port, Dubai – greatest civil engineering tunneling experts start work one of our first projects the world’s largest man-made challenge to date, constructing on what was the longest rail for the newly nationalised harbour at the time. We began the 49-metre high dam tunnel in the UK at the time power industry to exit the Middle East in 2015 2019 Half year results 1930 1926 1917 1909 Balfour Beatty was founded in January 1909 and (HY19) this year we celebrate 110 years of shaping the future. £13.2bn order book Grampian Hydroelectric Lochaber Hydroelectric Our first hydroelectric Our first contract, Scheme – the first major Works – at 15 miles long, project, constructing an 8km powering trams in Luton Our first contract, powering trams in Luton and hydroelectric project to it was the longest tunnel viaduct from Loch Eilde Mor and Dartford Dartford, was worth £5,000. supply power to the public in the world at the time to Blackwater reservoir underlying revenue (FY18) Today, Balfour Beatty is a leading international £7.8bn infrastructure group providing innovative and efficient infrastructure that underpins our daily lives, supports (HY19) communities and enables economic growth. £1.2bn Investments portfolio We finance, develop, build and maintain complex infrastructure such as transportation, power and employees utility systems and social and commercial buildings. 26,000 Our main geographies are the US, UK and Hong Kong. How our Group works together Infrastructure Investments Our businesses drive operational and financial P ts ro ni fit y u ab benefits from each other and enhanced er le iv ts De w el en li o d m ve rk r st r returns when Investments, Construction o e y fo f v sk r k in i r ll d o rt s e o s li and Support Services deliver as one. w u v p e e p p l r u p y b s o a r u t s l t n i l f i i i n o t k s Our Investments business optimises r v s P e y s r t e m v i value through the disposal of operational e l n e Favourable working capital t s D assets whilst also continuing to from construction business invest in new opportunities. funds investment projects, which generate a return in their own right Construction Support Services Services Operational benefits Cro e ss- bas selli er Financial benefits ng across custom Knowledge transfer Construction Services Support Services Infrastructure Investments The Construction Services businesses Support Services designs, upgrades, The Infrastructure Investments in the UK, US, and in joint venture in manages and maintains critical national business is a recognised leader in Hong Kong, are top tier and all operate infrastructure, and its capabilities public private partnerships (PPP) and across the infrastructure and building complement both Construction Services other developments in the UK and the sectors. and Infrastructure Investments. US. Its activities generate additional construction and services work for other parts of the Group. What we do: What we do: What we do: – Civil engineering – Design, build, upgrade and maintain – Develop and finance both public – Building water, gas and electricity networks and private infrastructure projects – Ground engineering – Highways network management, – Operate a portfolio of long-term – Mechanical and electrical operation and maintenance infrastructure projects installation – Rail design, renewals and technology – Develop and maintain a large – Refurbishment and fit-out network of military housing – Rail engineering facilities across the US HY19 Order book and Strong and diverse chosen markets Investments portfolio The UK Government’s infrastructure investment authorised spending for a five year period. £13.2bn Order book at HY 2019 commitment is targeted to rise from 0.8% There are further opportunities being created, from 2015/16 to over 1% of GDP by 2020/21. for example with the number of state-backed gs in d il UK Notwithstanding political uncertainty, there infrastructure bonds (over US$200 billion u B gs Construction in is a strong pipeline of major projects in multi-state transportation bonds, over US$35 d il 46%UK u B Construction both transport and energy. From 2020-25 billion of education bonds in California) and C iv il 46% the second Road Investment Strategy for increases in: US public-private partnership s UK Support 42% C iv i Services Highways England has a record budget of schemes; state gasoline taxes; and local county US Construction ls 42% UK Support £25 billion for the Smart Motorways Alliance sales taxes dedicated to local infrastructure. 12US% Construction Services and the Regional Investment Programme. At Gammon (HK$) Gammon, our 50:50 joint venture in Hong 12% Heathrow, the High Court’s recent ruling that Kong, has a material share of the attractive £1.2bn*Gammon Investments (HK$) portfolio at HY 2019 the Government’s national policy statement, UK 44% Hong Kong market. Both the Buildings and supporting Heathrow expansion, was lawful Civils markets have significant opportunities UK 44% moves the expansion of Heathrow a step closer. upcoming, including: two new terminal In the US, with blue chip repeat customers buildings and other works associated the Group’s Buildings opportunities are robust. with the third runway at the international In Civils, the 2015 FAST Act (Fixing America’s airport; a ten year housing target; a ten year US 56% Surface Transportation), a US$305 billion hospital development plan; and continued US 56% transportation bill, was signed, providing investment in transportation infrastructure. * Directors’ valuation Build to Last When we deliver buildings and infrastructure, we expect them to survive the test of time. For Balfour Beatty to remain at the forefront of our industry we need to continuously improve efficiency, lead innovation and always operate safely. These are the drivers of value for our customers. Improved efficiency means smarter working, elimination of waste and creating a lean supply chain to deliver better value for our customers. This allows us to invest in developing our expertise. Having the finest experts allows us to extend what we are capable of building and drives improvements in everything we do; this means our customers can trust us to deliver on all that we promise, including safety. Safety is never compromised. We Build to Last. Cumulative annual cash flow^(£m) Lean Expert Employee engagement index (%) 200 2019 c. £400m improvement 2018 Deliver value to our 0 Ensure we have the best 70 (200) 65 2014* customers by improving (400) engineering, design and 60 operational efficiency and (600) project management (800) 55 eliminating waste right Dec Mar Jun Sep Dec capabilities. 50 ^ includes other disposals FY 2015 FY 2016 FY 2017 FY 2018 HY 2019 through the supply chain. *adjusting for sale of Parsons Brinckerhoff. Includes all other disposals We want to make sure that our customers get the best value for We deliver world-class buildings and infrastructure for our customers their money; we need to be relentless in driving out unnecessary by constantly driving innovation. Our strongest differentiator is our costs and work with our customers to ensure their money is spent engineering and project management capabilities. Having the best in the best way possible. Providing customers with better value for talent supported by the strongest supply chain creates a virtuous circle their money drives our competitiveness and provides Balfour Beatty that ensures we win the best and most exciting projects to deliver. with the capital to invest back into developing our expertise. Trusted Safe Lost Time Injury Rate^ Customer satisfaction average (%) 0.3 0.29 100 > 50% reduction Be the construction partner We must ensure the health 0.2 90 of choice for our customers and safety of everyone 0.1 0.14 80 and supply chain by who comes into contact 0 70 2014 2015 2016 2017 2018 HY2019 delivering on our promises. 2014 2015 2016 2017 2018 HY19 with our activities. ^excluding international joint ventures Customers must have confidence in our ability to deliver and to Health and safety is at the heart of everything we do – we must do what we say we will do. A robust risk framework ensures that protect our employees, our supply chain partners, our customers and challenges are mitigated and projects are delivered in the right way. the public. Construction is an inherently dangerous business and Satisfied customers provide us with the opportunities and projects without the highest standards of safety, we don’t have a licence for the future.