Dee Valley Group plc

Dee Valley Group plc Annual General Meeting Financial Results Presentation -Year ending 31 March 2015

23 July 2015

Your local water company

Agenda• Introductions & Speakers - (JS)

• Investing in Dee Valley Group Plc (JS)

• Business Overview (IP)

• FY14/15 Operational and Customer Service Highlights (IP)

• FY14/15 Financial Highlights (AB)

• Q&A

Introductions & Speakers'The Board of Dee Valley Group welcome you to the 2015 Annual General Meeting.

With the 2015-2020 price review process now behind us and having secured long term funding for our new,

ambitious five-year Business Plan, we can look forward to delivering a constantly improving and efficient service

that brings benefits to all of our customers, shareholders and the wider environment.'


Jon Schofield

Chairman of the Board


Ian Plenderleith

Chief Executive


Andrew Bickerton

Finance Director & Company Secretary

Philip Holder

Non-executive Director & Chairman of the Audit Committee

David Weir

Senior Independent Non-executive Director and Chairman of the Remuneration Committee

Kevin Starling

Non-executive Director

Investing in Dee Valley Group Plc Operations and regulatory environment• Infrastructure asset owner within a relatively stable regulatory environment

• Operating risk - Operational, service performance and tariff affordability is upper quartile on many measures

• Regulator confidence - 97% of our AMP6 Business Plan expenditure was approved by Ofwat, including our largest ever capital programme

Solid financial performance• Strong, predictable financial performance and cash flow - underlying financial performance for FY14/15 broadly consistent with the prior year

• Dividend yield of 4.4% for 2015 (sector average of 3.9%)

• 32% increase in RCV across AMP6, the highest in the sector (sector average 8.6%)

• Stable financing and liquidity with £30m funding package secured for AMP6

Business Over view - Background Business LocationEllesmere

Port

Mold/

Yr Wyddgrug

England

Key Industry Metrics• One of 18 independent Water only and Water and Sewerage companies in England and Wales

• Seven water only companies, DVW being

the smallest

• One of only two water companies governed by

Chester

the Welsh Assembly

• Not subject to retail competition from 2017

Wales



Llangollen

Wrexham/ Wrecsam

Oswestry



Our Regulators Company Over view• Company with 835 square km supply area

• 2,000km mains network with 6 water treatment works and 28 pumping stations supplying 63 million litres of water

per day

• 116,000 household and 8,000 non

household customers

• 167 Employees

• Key towns of Wrexham & Chester

Operational Performance Water Quality at the customers' tap• Mean zonal compliance 99.88%, down from 99.93% in 2013*

• Discolouration contacts 2.27 per 1,000

customers, reduced from 4.90 in 2013*

Security of Supply• Number of bursts - 247, up from

189 in 2013/14

• Interruptions to supply - 0.17hrs per property served, top half in the industry

• Leakage - 9.76 ML per day, down from

10.15ML per day, still industry leading

*Water quality indicators are measured by calendar year

Customer Ser vice & Community Customer Ser vice• Ofwat qualitative SIM ranking - 8th in

2014/15, up from 10th in 2013/14

• Customer complaints reduced by 29%

year on year

• Vulnerable customers - third highest penetration of WaterSure tariff in the industry

• Weekly direct debit payment option -

first in the industry to offer this product

Community

• Over 4,000 children have taken part in our water

cycle/efficiency education programme

• Water quality awareness programmes with hospitals, nursing homes and schools

Our People and Culture To deliver on our commitments we must also invest in our people.• Key initiatives introduced this year:

• Focused career development, performance management and training

• Departmental restructure to better align responsibility and accountability

to deliver

• The first employee survey for

Dee Valley Group in many years

• Company wide briefing sessions

• Employee Forum

Our AMP6 Performance Commitments• Provide excellent water quality and security of supply

• Reducing the number of discolouration contacts per 1,000 population from 2.27 to 1.01 (FY17/18)

• Achieve upper quartile performance for interruptions to supply

• Maintain our industry leading performance for leakage

• Provide a high-quality customer ser vice

• Continue to improve our customer service rating (SIM) from 8th in 2014/15

• Continue to reduce the number of customer complaints - down 29% in 2014/15

• Continue to provide a value for money ser vice

• Maintain low bills - our bills are the fourth lowest in the sector

• Help customers reduce consumption from 133 litres/ day to 127 litres/ day in FY19/20

• Implement a social tariff

• Delivery of our largest ever, targeted investment programme

• Long-term funding secured to support this investment.

• Delivering financial outperformance in accordance with our dividend policy

FY14/15 Financial Highlights

Underlying financial performance broadly consistent with the prior year:

Revenue:

£24.6m

(+3.4%)

Adjusted profit from operations1:

£7.5m

(+2.0%)

Adjusted earnings per ordinary share1:

75.3p

Full year dividend:

62.5p

4.4% yield

Capital investment:

£6.8m

AMP5:

£34.1m

RCV:

£71.2m

Share price of 1,359.0p

at 21 July 2015,

an increase of 11% from

31 March 2015 (1,222.50p)



1. Prior year earnings exclude the non-recurring pension scheme curtailment gain of £1.3m

To continue reading this noodl, please get the original version here.

distributed by