Growing Together

1. Growing Together Adrian Cook, Group Head of Procurement October 2013 – Supplier Presentation

2. Group Procurement and Supply Growing together • Agenda •  Introduction •  Our business •  Babcock Procurement Programme • What we look for in our suppliers •  Closing remarks

3. Group Procurement and Supply Introduction “A world-class company needs a world-class supply chain” • Supply Chain is key to delivering for our customers • 2 objectives for role: • Design and implement a shared supply chain where purchase needs are common across the Group • Develop across Babcock a team of procurement and supply chain professionals who share and drive best practices • Two key beliefs “Companies usually get the suppliers that they deserve”

4. Babcock International GroupOur business - a strategy for growth Our objective is to develop from our position as the UK’s leading engineering support services company and grow in both the UK and overseas, so delivering superior and sustainable returns for our shareholders • We will continue to develop by implementing our strategy • Market leading positions • Working with customers who own large and strategically important assets • Customer focused long-term relationships • Integrating engineering and technical expertise • Balancing the risk and reward between ourselves and the customer • Maintaining an excellent safety record

5. Babcock International GroupOur business – customers’ interests at forefront of our minds • Our business model and proven track record in handling key strategic assets means major organisations trust us to deliver. Infrastructure Integrating engineering skills for complex technical programmes and vital services + + = Equipment In challenging, regulated environments • Delivering value for money outcomes • Reliably • Cost effectively • On time • Safely Education and Training Babcock trusted to deliver

6. Babcock International GroupOur business – what we do and how we are organised Marine and Technology Revenue £1,201.6m Operating profit £156.9m Defence and Security Revenue £820.2m Operating profit £112.2m Support Services Revenue £943.7m Operating profit £91.2m International Revenue £278.0m Operating profit £24.7m • UK’s leading naval support business with a unique role supporting the Royal Navy • Naval base management • Submarine and warship support • Technology: engineering, design, system integration and platform management • Equipment support • Training • Commercial marine and offshore energy • A major support provider to all three UK armed forces delivering training , infrastructure and equipment support • Equipment Support • White fleet and construction vehicle management • Training • Defence infrastructure support • Aircraft engineering and base support • Provider of critical support services to government, local authorities and blue chip companies • Nuclear • Education and Training • Network Engineering: Rail, Power and Communications • Mobile Assets: Emergency Services, Mining and Construction and Airports • Emergency Services and Infrastructures • One of the leading engineering support services companies in South Africa • Power generation support • Power lines • Volvo and DAF truck distribution • Plant hire • Middle East - military aircraft support

7. Babcock International GroupOur business – growth record and prospects Record of successful past Signs of successful future Ten years of growth: Revenue and Operating profit • Bid Pipeline of £15.5bn end FY12/13 • 74% total contract value >£100m • In FY12/13 new bids 40% and rebids 100% Revenue (£m) Op profit (£m) £bn

8. Babcock International GroupProcurement Programme – excellence as a standard Our key approach Category Management Select and manage suppliers that support us in delivering cost savings solutions and ultra reliable service UK Supplier Spend £1.4 billion Currently trading with 10,000 + suppliersacross local economies Expenditure with 350 key trading suppliers£650 million

9. Babcock International GroupProcurement Programme – how we are organised We combine Business Level Procurement focus with Group Level Category Management and Leadership The strength of our approach is built upon: Organisation around our customers Dedicated, local procurement Adopting common high standards Sharing practices and supplier selection Fleet HR Gen Eng Plant Hire FM IT & Corp Mobile Assets Cavendish Nuclear Network Engineering Education Training Naval Bases Land and Sea Warships etc.

10. Babcock International GroupWhat we look for from our suppliers • Our customers’ interests are always at the forefront of our minds • The strength of our reputation with our customers is based on: • Working safely • Delivering contract requirements • Meeting deadlines • Working within agreed cost parameters • Adding value • Improving productivity and efficiency • Being easy to do business with The strength of your reputation with us is based on: Working safely Delivering contract requirements Meeting deadlines Working within agreed cost parameters Adding value Improving productivity and efficiency Being easy to do business with Service Value Chain

11. Babcock International GroupClosing remarks •  Opportunity to share in success and grow with us •  World class describes performance not size •  We want your account with Babcock to be the one you are most proud of retaining • We sell cost savings solutions and need suppliers to share in their development and delivery •  Nothing is more important that safety and service