Business Plan

2017 - 18

CONTENTS

• About us

• Why we are different

• Group financial performance

• Our five year plan

• Key business aims: Finance and Customer

• Key business aims: Process and People

• Governance

• Meeting our stakeholders’ ambitions

Property design and management services nps.co.uk

About us

Our purposeTo provide innovative end to end property solutions

that generate outstanding value for our customers

Our roleTo design property solutions and manage property

services across all sectors

Our visionTo be the property consultant of choice in the UK,

recognised for delivering outstanding solutions

Our values• Quality

• Innovation

• Respect

• Trust

Our aims• Achieve sustainable and profitable growth

• Expand our customer base and meet our clients’

needs

• Make a positive impact on the communities in

which we serve

• Always deliver high quality services efficiently

• Maintain a culture where our people thrive and

reach their full potential

Why are we different?

Property design and management services nps.co.uk

Our business

model for the

private sector marries efficiency

with innovation to

deliver

outstanding value

Our unique Joint

Venture business

model for the

public sector provides direct

benefits to our

partners and the

communities we

serve

We achieve

impressive

commercial success whilst

remaining in

public sector

ownership

We respect and

support all our

clients, partners and people

We take personal

responsibility for

our actions and

deliver on our promises

As part of the

Norse Group we

can offer a wide

and cohesive

range of services that deliver

leading quality

and value

Group financial performanceIn 2017, the Group will seek to improve its operational profit to 5.0%. This will improve the return to its shareholders and allow the necessary investment in the company to continue to develop new and cost effective services.

Turnover Earnings before tax

• Return on capital employed in excess of 10%

(excluding pension)

• Current ratio in excess of 1

• Gross operating profit in excess of £3.5m

Performance indicators

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0.5

1

1.5

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2.5

3

3.5

Mill

ion 2016 - 17

2017 - 18

2018 - 19

0

20

40

60

80

100

120

Mill

ion

2016 - 17

2017 - 18

2018 - 19

Income breakdown

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

2017 - 18

Aspirational:£15,147,000 (20%)

Probable:£26,129,000 (35%)

Secured:£33,544,000 (45%)

Our five year plan

The Norse Group has five key objectives to which we will contribute over

the next five years:

• Deliver sustainable and profitable growth

• Build a balanced client base

• Increase the return to our shareholders

• Maintain the operating margin

• Deliver a significant investment programme within the Group

• Actively controlling our management overheads

We aim to grow the business by 30% over the next three years through:

• Developing new markets and services including housing

• Increasing our exposure in the private sector

• Actively controlling our management overheads

Property design and management services nps.co.uk

QUALITY

INNOVATION

RESPECT

TRUST

Our values

Property design and management services nps.co.uk

FINANCEAchieve profitable and sustainable growth

Our 2016 objectives• Maintain the operating margin and deliver increased return to our shareholders

• Deliver a Group turnover target in excess of £73m

• Pre-tax profit £4.495m (before volume discounts)

• Gross profit 6.16% (before volume discounts)

• Achieve a balance sheet total of £9.1m (excluding pension and minority interests)

• Achieve cash at bank of £3.4m

How we did We achieved a profit margin of 1.5% (before volume discounts, exceptional items and pensions)

£1.7m was returned to shareholders and Joint Venture partners

Turnover of £91m achieved for NPS Group trading companies

Pre-tax profit achieved of £1.4m (before volume discounts, exceptional items and pensions)

Balance sheet total of £0.2m (excluding pension and minority interests)

What we will do in 2017• Increase profit margin to 5%

• Generate retained profits for the NPS Group of greater than £2m

• Increase return to shareholders and Joint Venture partners

• Deliver Group turnover of £75m

• Generate positive cash position

Policy and strategy

Estate management, planning and

valuation

Building maintenance and statutory compliance

Building design and construction

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CUSTOMERExpand our customer base and meet our clients’ needs while making a

positive impact on the communities in which we serve

Our 2016 objectives• Build a balanced client base and meet our clients’ needs while making a positive impact on the

communities in which we serve

• Achieve a client satisfaction rate of 98%

• Achieve a tender success rate of last least 30%

• Secure at least one new joint venture

• Increase private sector work by 20%

• Promote the Norse Group CR strategy – The Norse Way

How we did We achieved 98.3% customer satisfaction

We achieved a tender success rate of 52% for PQQs and 33% for ITTs

We successfully launched a new joint venture with Peterborough City Council

We have successfully achieved c1,500 prospected (unqualified) leads in the south east of the UK

We have successfully launched and implemented the Norse Group CR strategy – The Norse Way –

with initiatives such as the National Wellbeing Week promoting lifestyle changes, Dementia Friendly

training sessions, and aim to reduce energy usage targets by 5% by 2019

What we will do in 2017• Continue to build a balanced client base and meet our clients’ needs while making a positive

impact on the communities we serve

• Achieve a client satisfaction rate of 98%

• Maintain a tender success rate of at least 30%

• Secure at least one new joint venture

• Increase private sector work by 20%

• Continue to develop and promote the Norse Group CR strategy – The Norse Way

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PROCESSContinue to deliver high quality services efficiently

Our 2016 objectives• Maximise existing investment in BIM and secure further targeted Level 2 capability

• Achieve ISO status against the 2015 revised standards; achieving quality accreditation for new JVs

within twelve months of start up

• Manage the transition from OHSAS 18001 to ISO 45001

How we did Secured further targeted BIM Level 2 capability by 25% increase in software licences

Invested and implemented alternative modern productivity software tools that ad value through

mobility and accessibility for staff

Achieved successful transition to the 2015 ISO standards and have been audited externally

against the new standards with no non-conformance issues

We remain poised to adopt the new ISO 45001 standards as soon as they have been

internationally agreed

What we will do in 2017• Broaden our skills and knowledge base to secure further targeted BIM Level 2 capability

• 30% of the Group design function is able to deliver projects to BIM Level 2

• Ensure 100% compliance that zero major conformances are issued against the ISO 9001 2015

revised standards

• Achieve quality accreditation for new JVs within 12 months of start up

• Transition from OHSAS 18001 to ISO 45001

Policy and strategy

Estate management, planning and

valuation

Building design and construction

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PEOPLEBe the employer of choice within the property industry

Our 2016 objectives• Invest over £420k into talent development initiatives

• Sponsor at least twenty apprentice, intern and student placements nationally

• Implement the new Reward and Recognition strategy

• Increase the proportion of qualified professionals by 1.5%

• Increase the number of employees who undertake agile working by 1%

How we did We invested £366k into talent development initiatives

We recruited five graduates and sponsored five interns, two student placements, eighteen

apprentices and 48 work experience placements

We successfully implemented a Group-wide Reward and Recognition programme

We increased the proportion of professionally qualified staff by 1.84%

We increased the number of employees undertaking agile working by 6%

What we will do in 2017• Implement a development strategy to maximise the value of the apprenticeship levy

• Sponsor thirty apprentice, intern and work experience placements nationally

• Continually enhance our market leading Reward strategy

• Increase the number of employees who undertake agile working by 4%

• Increase the proportion of qualified professionals by 1.5%

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Governance

Shareholder committee

This cross party group of members meets every quarter to review the activities of the Norse Group and to advise on the future strategy of the company. In addition, it provides a conduit to all members, ensuring they are made aware of the Group’s activities.

Other governance

We also report to individual shareholder cabinets on the progress of joint ventures. External financial audits are undertaken by PwC UK

Board of Directors

Mike Britch

Group Managing

Director

NPS Group

Dean Wetteland

Managing Director

Norse Commercial

Services

Karen Knight

Managing Director

NorseCare

Tom McCabe

Executive Director

Norfolk County

Council

Ian Mackie

Councillor

Norfolk County

Council

Property design and management services nps.co.uk

Our structure

Norfolk County Council

Norse Group Ltd

NPS Property Consultants Ltd NorseCare Ltd Norse Commercial Services Ltd

NPS Barnsley Ltd

NPS Humber Ltd

NPS Leeds Ltd

NPS London Ltd

NPS Newport Ltd

NPS North West Ltd

NPS Norwich Ltd

NPS Peterborough Ltd

NPS South West Ltd

Broadland Growth Ltd

Hamson Barron Smith Ltd

Hearth UK Ltd

International Aviation Academy Norwich Ltd

Norse Development Company Ltd

Norse Energy Ltd

Barnsley Norse Ltd

Devon Norse Ltd

Enfield Norse Ltd

Eventguard Ltd

Great Yarmouth Norse Ltd

GYB Services Ltd

Medway Norse Ltd

Medway Norse Transport

Newport Norse Ltd

NEWS Ltd

Norse Eastern Ltd

Norse Environmental Waste Services Ltd

Norwich Norse (Building) Ltd

Norwich Norse (Environmental) Ltd

Norse South East Ltd

Norse Transport Ltd

Suffolk Coastal Norse Ltd

Suffolk Norse Ltd

Suffolk Norse Transport Ltd

Waveney Norse Ltd

Wellingborough Norse Ltd

Property design and management services nps.co.uk

Meeting our

stakeholders’ priorities

Excellence in EducationWorking for a well-educated Norfolk where people are prepared for real jobs with good wages and prospects

Real JobsMaking Norfolk a place where businesses are able to grow or want to relocate to, because we are so well connected

Improved Infrastructure

Supporting vulnerable peopleIncluding helping people earlier before their problems get too serious.

Property design and management services nps.co.uk