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Serco in Confidence

Steve Butcher | Managing Director, Rail

17 June 2014

Customer Focused Operations

Serco in Confidence

Content of Presentation

Introduction

Who are Serco

What drives Customer Service in our operations

Our current Operations and Experience

Why partners are so important

Summary

Serco in Confidence

A leading service company in our chosen

markets

Serco in Confidence

Our core business: Delivering essential

services around the world

UK & Europe

60%

Africa, Middle East, Asia

& Australasia

18%

The Americas

22%

Founded in 1929

Operate in 50 countries

700+ contracts

130,000 staff

NZ$10bn turnover

15 years operation in NZ

NZ’s first PPP- Auckland

South Corrections Facility

25 year operations

Serco Global Services (BPO)

Serco Front Line Services

Serco in Confidence

Serco In Transport

Serco in Confidence

Transition management……..Contract mobilisation……Organizational & cultural

change…….. Procurement & Subcontract Management……Employee and

community engagement……..Effective working with unions

What is typical in our operations

Operations

Train service operations

Station operations

Customer service, ticketing and fares

Major Special Events management

Control centre management

Passenger demand management

Security management

Stakeholder relationship

management

Maintenance

Asset management planning and

deployment

Rolling stock light and heavy maintenance

including overhauls and refurbishments

Stations and depots full facility

management

Track and structures, signaling and

traction power maintenance

Investment project management

Overhaul & Projects

Serco in Confidence

Our Rail Transportation Experience

Mersey Rail (42m passenger trips pa)

Northern Rail (93m passenger trips pa)

Dubai Metro (110m passenger trips pa)

Docklands Light Railway (100m passenger trips pa)

Dubai Airport Automated People Mover

Palm Jumeirah Monorail

Great Southern Railway Australia

Now awarded in 2014 - Scottish Sleepers

Serco in Confidence

How we have delivered.

Integrated plans with local authorities and Network Rail the

infrastructure owner early in the franchise

Joint performance and investment improvement plans – getting

them aligned from the start

Early major timetable changes and implementation to support

passenger growth and increased levels of performance

Increased passenger numbers in both Merseyrail and Northern

Rail, mainly car to rail shift

Community engagement process – adopt a station, community

ambassadors, Network Rail and local authority Road Shows at

local community events and main stations

Serco in Confidence

How we have delivered

Revised major event management

− Successful Olympics delivery

− Aintree Races and Mathew Street festival events in Liverpool (increased

performance levels – increased patronage to events)

Management of major Football events throughout the UK

− Manchester United

− Liverpool

Joint Investment Projects, whilst increasing performance –

Customer satisfaction Levels

− Line speed upgrades

− Station and customer facilities upgrades

− Rolling Stock refurbishments

− New Rolling Stock Introduction

Serco in Confidence

How we have delivered.

Staff and Community Involvement events

− Charity sponsored events

− School awareness – safer railways

− Train naming

Early Communication of plans – vision with authorities and

Network Rail (seen up joined up throughout)

Serco in Confidence

Merseyrail

Best performing train operating

company in the UK

Delivery of enhancements on

behalf of the client

– Introduced refurbished trains

– Increased capacity

– Ridership growth to 42m/year

Created a more secure

environment for staff and

customers

Significantly increased employee

satisfaction

Performance measure 95.33%

Fleet Availability 100%

Serco in Confidence

Merseyrail

Serco in Confidence

Merseyrail

Serco in Confidence

Key characteristics

Self-contained urban network with

Local Authority Client over 25-years

75 miles of track, 6.5 miles of which

are underground

One of the most intensively used

networks in the UK

Over 800 daily services Monday to

Saturday

67 stations, 66 of which are

managed by Merseyrail; 5

underground stations

Fleet of 59 class 507 / 508 electric

3xCar trains

Serco in Confidence

The Present

Since the start of concession

Significant growth in passenger numbers

Enhanced performance

Enviable rates of passenger satisfaction

(highest overall score - NRPS Autumn 2013 - NPS, Autumn 2012, best

regional operator - NPS Spring 2012)

Increased fleet reliability (miles per casualty)

Better stations and trains

Safer environments

Higher train presentation scores

More compelling CSR offering

Serco in Confidence

Increased Passenger Growth

Serco in Confidence

Enhanced Performance

Serco in Confidence

Enviable Rates of Passenger Satisfaction

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Increased Fleet Reliability

3000

4000

5000

6000

7000

8000

9000

10000

11000

12000

13000

14000

15000

MIL

ES P

ER 5

MIN

DEL

AY

(M

pC

)

Fleet Reliability

Period MpC MpC MAA

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Heightened Safety

Overall, the Merseyrail network is a much safer than ten years ago

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Corporate Social Responsibility

40 station adoption schemes (six in 2009)

Charity of the year initiative − staff have raised £550,000+

over last decade

Close partnership with Archbishop Beck school

Merseyrail Sound Station, targeting NEETs

Set up a ladies’ football team with Bootle

football club

Train naming

Serco in Confidence

Firsts

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Profile

Commended for our management of high profile events, such as Aintree –

major football events – Matthews Street Festival

Winner of numerous awards over recent years − won in Large and Overall

Station of the Year category (National Rail Awards 2013)

Favourable media coverage and popular with stakeholders

Considered an ‘employer of choice’

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Northern Rail

‘Steady state to success story’

The story so far...

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290 trains

4,800

employees

462 stations

Over 93 million

passenger

journeys per

year

2,600 train

services per

day

Serco in Confidence

Northern Rail

47% passenger growth during Serco

Franchise (since 2004) to over 93m

passengers per year

Train service performance increased from

83.7% to 91.5%

60% improvement in fleet reliability

And….the cost to Government has

significantly reduced.

Serco in Confidence

Northern – The Story So Far

Franchise began December 2004 and

extended March 2014 for a further 2

years

‘Steady-state’ contract, however:

− £130m investment

− 47% passenger growth

− HLOS delivery

− improved PPM performance

− improved fleet performance

− new services and stations introduced

Serco in Confidence

Some Northern Successes

Additional

peak

capacity

Leeds –

Nottingham

new service

Class322

rolling stock

introduction New depot at

Allerton

Buckshaw

Parkway new

station

Serco in Confidence

PPM Performance

Serco in Confidence

Northern Fleet Reliability

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Current Operations – Review

Docklands Light

Rail 99.33% availability, 99.36% punctuality

MAA, 97.08% customer satisfaction

Ridership growth from 17m per year at

start to over 100m in 2014

Patronage peaked in Olympic Year to

127M

Commissioned 47 new rolling stock

vehicles, opened 3 extensions including

Woolwich Extension early and extended

fleet from two to three twin-cars with

station platform modifications while

maintaining service

Dubai Metro

Appointed by Dubai Government (RTA)

to provide early operator involvement

(March 2008) followed by full O&M

services (September 2009)

99.99% Availability (8 months at 100%)

99.97% Punctuality (6 months at 100%)

9/9/9 successful service launch

Integrated management and

stewardship of this all assets

Successfully re-awarded in 2013 until

2021

Serco in Confidence

Current Operations – Review

Makkah Metro

Advised on all aspects of operation &

maintenance for 18.7 km metro

Supported CRCC and MOMRA

preparations for Hajj pilgrimage

Management of recruitment and training

programme for 2,000 staff

Development of operational rules,

procedures & processes

Palm Jumeirah Monorail

Appointed to provide Operations &

Maintenance services for Palm Jumeirah

Monorail – the first driverless monorail in

the middle-east region

5 year concession from July 2010

Maintenance, security, control centre,

facilities management, customer

services, procurement and supply chain

management

99.8% Punctuality – 99.9% Availability

now 100% on both since takeover

Serco in Confidence

Current Operations – Review

Al Sufouh Transit

System Part of Dubai’s mass transit system (metro lines, transit system lines and bus lines)

connecting Al Sufouh to the Dubai Marina area

14km track length, 11 stations, 2 tracks, 1 Depot, 2 interchanges (intersect with Metro &

Monorail)

Full Mobilization – testing etc

Recruitment of all staff – frontline staff locals

Serco in Confidence

So... What makes this happen

Partners who are like minded

Client

– We want to be good custodians of your railway

– Aligned objectives – passion for improvement

– Open debate – putting the Customers first every time

– Ensuring real value for money for everyone – This about long term

relationships.

Community

– Taking the railway to the heart of the community

– Ambassadors – adopt a stations, usher groups

– Allowing the Community to feel part of the decision making

– Involving everyone from a young age

Serco in Confidence

So... What makes this happen

Infrastructure Owner

– One common process for operations – common goals

– Sharing best practice throughout

– Set high targets with each other

– Open debate on improvements, investment, performances and

asset management

– Get rid of the history early

Customer

– Always have them at the centre of everything

– Talk and communicate – let them see you care

– Be honest – even when it’s painful

– Invite real feedback – and act

Serco in Confidence

Summary

Great railways never stop changing – you have to keep up

Economic growth really is about great service

Partnership is the key to success – Long term.

Always look forward – change is a must

Local content is key – be a firm part of the community we

serve

Be consistent, open and honest

Serco in Confidence

Thank-you

Steve Butcher

Managing Director Rail

steve.butcher@serco.com