UK Outsourcers Roundtable March 2012

7/27/2019 UK Outsourcers Roundtable March 2012

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March 2012

David Taylor

Smith

Group COO and

Regional CEO,

UK and Africa

UK

Outsourcing

Roundtable


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Contents

1. Current UK business

2. Recent wins and mobilisations

3. Current pipeline

4. Longer term opportunities

5. Perspective on the market


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G4S UK, Ireland & AfricaUK & Ireland Largest security solutions company

Leading cash solutions company

1.6bn turnover in 2011

Over 55,000 employees

Over 10,000 customers

75 years of service

Market leadership One of the UK Governments largest providers Leading provider of justice services Largest meter services company Market leader in Ireland, Isle of Man, Jersey and

Guernsey

Vision:

To become the market leader in securing and managing critical services

and facilities for the UK Government and businesses across the UK


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David Taylor-Smith

Group COO &Regional CEO

Regional structure

Richard Morris

Group MD G4S Care & Justice Services (UK)

Doug Hewitson

Group MD G4S Secure Solutions (UK)

Stuart Curl

Regional CFO

UK & Africa

Julian Duxfield,

Regional HR Director

Paddy Toyne-Sewell

Regional Corporate Affairs Director

UK & Africa

Peter Neden

Regional Business Development Director

UK & Africa

Niall Feely

Group MD - Ireland

Kim Challis

Group MD Government & Outsourcing

Services

Regions/Businesses

Chris Chapple

Group MD G4S Risk Management

Andy Baker

Regional President - Africa

Bob Taylor

Group MD Integrated Services & Islands

James Dinsdale

Group MD Cash (UK)


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Annual revenue by business sectorand Government department*Sector

Government

1,824 million 974.8 million

* Excludes Ireland

Home Office

MoJ

YJB

FCODoH

DWP

MoDDoE

GovernmentOther

Olympics

FinancialInstitutions

Consumers

Major CorporateIndustrials

Retail

Lesuire & Tourism

Ports & Airports

Transport &Logistics

Private Energy &utilities

Government

Other


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Top 25 customers based on 2012turnover


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Sector strategy - Government

Health

Courts

2013

Justice

Immigration

Foreign Office

Global presence / IA

Criticalprocesses

DWP

Secure

FM

Secure

Solutions

Olympics

Education

Police

Security

Management

Defence

MannedSecurity

Plus

Deliver the basics Growth, profit and service

Deliver great service and avoid serious incidents

Increase expertise and innovation

Win rebids

Beat the economic situation

Consolidate, build and acquire Use existing Government positions as a platform to

implement strategy - move to secure outsourcing

Enter new areas of Government outsourcing

Proactive response to new CSR opportunities

Further develop BPO capability

Effective organisation Effective lean organisational structures, processes

and values

Implement G4S Way big bidding

Acquire and develop people

Be a brand / thought leader


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WinsCommerical

32%

WinsGovernment

68%

2011 2012 Losses (ACV) total: 89.9m Government/Commercial

2011- 2012 wins (ACV) total: 549m

Government/Commercial

Government v Commercialwins/losses 2011-2012

LossesGovernment

98%

LossesCommercial

2%

DoH2%

DoWP9%

FCO13%

LOCOG36%

MoJ29%

Police5%

UKBA6%

2011 2012 wins by Government Department


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Scottish PECSC&J

ACV 25m / TCV 250m

10years

Court escorting

UK recent contract wins

HMP BirminghamC&J

ACV 24m / TCV

360m

15years

HMP OakwoodC&J

ACV 18m / TCV270m

15years

Ministry of Justice FMIS/SSUK

ACV 35-60m/TCV up to 300m5 years

Total FM to 340 MoJ buildings

COMPASS

C&JACV 30m / TCV 211m

7years

Transport &

Accommodation ofAsylum Seekers

ESFGAOS

ACV 5.5m / TCV

16.4m

3years

Support families with

multiple problems

Welfare to WorkGAOS

ACV 42m / TCV 255

7years

Support for theunemployed

AvivaGAOSACV 5m / TCV 25m

5years

RBSCash

ACV 16m /TCV 45m

3+2 yearsCash solutions

Virgin AtlanticACV 3.3m

TCV 11m

3 years

Aviation security

Lincolnshire PoliceACV 23m

TCV 230m

10 years

Middle/back office

services

Olympics (excl ODA)c200m

Ends: Nov 2012

Olympic venue security


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MOJ FM contract - 35-60m Capability to compete with larger FM players

Security heritage / capability highly relevant

Significant savings to client

Prisons (Birmingham and Featherstone) -

42m 20% saving over HMPS provision

Start of a programme

Smooth mobilisation allays political fearsCOMPASS - 30m

Re-establishes UKBA as major G4S client

E-Auction used

Prime contractor model attractive

Scotland PECS - 25m Firm presence in Scotland

Maintains prisoner escorting

credential

Lincolnshire police - 23m 10 year gestation

Significant step to outsource so

much of back office driven by

money Acquisition style procurement

Mobilisation going well

Work Programme - 42m Significant core contract with DWP

Payment by Results

High profile

Prime contractor modelWorkless Families - 5.5m Demonstrates growth potential from

core contracts

Major contract wins 2011-2012


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London 2012 Olympics


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London 2012Olympic & Paralympic Games2012 Olympic Games

4 billion global audience

10,500 athletes

205 countries

26 sports

8 million tickets

20,000 media 70,000 volunteers

2012 Paralympic Games

1.8 billion global audience

4,200 athletes

162 countries

20 sports

471 medal events

2 million tickets

Across both games, 4,700 medals!


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Significant increase in scope December 2010: Project 10k = find 2,000 personnel,

manage 10,000 framework agreement

August 2011: Project 21k = find 12,022 personnel,

manage 21,000 very tight deadline to deliver complex submission

rapid mobilisation of project team November 2011: Project 24k = find 10,400 personnel,

manage 24,000 deep dive collaborative approach

Now: find 10,400, manage 23,700 Project Management Organisation operational

Recruitment exercise underway over 50,000applications already

Dedicated training centre in East London

Already 1,500 employees providing security to LOCOG


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UK bidding pipeline

Government pipeline

Commercial pipeline

Government /commercial pipeline split (ACV)

DECC, 2 m DoH, 25 m

DWP, 75 m

FCO, 22 m

HMRC, 10 m

Home Office, 290 m

MoD, 2 m

MoJ, 233 m

Olympics, 2 m

UKBA, 78 m

Other, 5 m

YJB, 15 m

Commercial,

1,132.0 m

Government ,

767.4 m

Private Energy &

Utilities, 156 m

Major Corporates &

Industrials, 75 m

Financial

Institutions, 60 m

Ports & Airports,

85 m

Mixed, 520 m


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Government pipeline specific 10m+Bid Name ACV (m) Govt Dept Term (yrs)

est Midlands / Surrey Police BPO 215.0 m Home Office 7

Criminal Fines Compliance 100.0 m MoJ 7

DWP - Personal Independent Payments 60.0 m DWP 7

Visa Outsourcing 50.0 m UKBA 7

EM 40.0 m MoJ 5

Prisons -Yorkshire (Lindholme, Moorland & Hatfield) 35.0 m MoJ 15

Prisons - Northumberland (Castington, Acklington) 23.0 m MoJ 15

Police - Northern Ireland 20.0 m Home Office 3

est Midlands new Custody Suites 20.0 m Home Office 1

Harmondsworth & Colnbrook 18.0 m UKBA 5

NPIA - Home Office - London (Region 1) 17.5 m Home Office 10

NPIA - Home Office - North West (Region 6) 17.5 m Home Office 10

Brighton & Sussex NHS 13.5 m DoH 5

Medway STC 12.0 m YJB 1.2

Prisons Onley 12.0 m MoJ 15

Community Probation PBR Pilot (Wales, Staffs, West Mids) 10.0 m MoJ 4

NI Work Programme 10.0 m DWP 3

HMRC - personal ID assurance 10.0 m HMRC 3

UKBA Case management 10.0 m UKBA 4

FCO Oakley - Decant 10.0 m FCO 1


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Longer term prospects - examplesMoJ

Prisons

Probation

Court Enforcement

FM

DWP

Fraud

FM

MoD

MGS

Selective FM

Home Office

Border operations

Case work

Compliance

FM

Police

Lincolnshire Framework

Custody

Back Office

Training

FM

Health

Transport

Pathology

FM


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Market perspective UK Government represents more opportunities than threats

Outsourcing is seen as key by some departments - MoJ/DWP

Commercial skill is variable

Focus on outcome orientated contracts Payment By Results (PBR)

Partnerships becoming increasingly important (voluntary / public sector)

Price is a key determinant in re-bids. Price & competence on 1stgeneration bids

More aggressive client behaviour margins under tighter scrutiny

Sensitive approach to political priorities

Mutuals / JVs

SMEs

PbR

Localism

Expect new players e.g. prisons


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Q&A

UK Outsourcers Roundtable March 2012

Documents

Transcript of UK Outsourcers Roundtable March 2012