communisis investor presentation

Making Customer Communication

Communication, channelled

INVESTOR PRESENTATION18 October 2012

http://www.communisis.com/

Andy BlundellChief ExecutiveCommunisis



Phil DeanManaging Director Creative Services

Tony StrongManaging DirectorGroup Operations

Jo CowlFinancial Controller

Mark StonerManaging DirectorSourcing and Logistics

Introductions

Andy BlundellChief Executive

Nigel HowesFinance Director

Dave RushtonGroup Managing Director

John WellsGroup Commercial Director


Agenda

9.30 – 10.00 Arrival and coffee10.00 – 10.20 Welcome and Introductions – Andy Blundell10.20 – 11.00 Group Overview – Dave Rushton, Nigel Howes11.00 – 11.15 Q&A11.15 – 11.30 Coffee11.30 – 11.50 Design – Phil Dean11.50 – 12.10 Produce – Tony Strong12.10 – 12.30 Deploy – Mark Stoner12.30 – 12.50 Q&A12.50 – 13.00 Closing13.00 – 14.00 Networking lunch

SummaryInvestment case

Management• a strong team with a record of successful delivery

Technology• a reputation for manufacturing excellence and innovative solutions • trusted to deliver personalised communications accurately, securely, reliably and at scale

Competitive position• a differentiated offer

Profitable growth• a record of achievement • market trends that play to our strengths in the UK and internationally • an established portfolio of blue-chip clients • strong new business pipeline

Quality of earnings• two thirds of revenues underpinned by multi-year framework contracts • robust financial discipline

Dividend• a progressive policy and an attractive yield


What we do• Operate in the Business to Business space providing services to consumer-facing clients• Services focus on the design, production and distribution of customer communications• Customer communications are of a marketing, regulatory or transactional nature • Distribution can be in paper or digital formats (email, text, mobile or social media)• UK business with a growing international footprint

ObjectivesTo deliver over the next three years: – a double digit margin on revenue (excluding pass through) – 20% of revenues from non-UK sources

Status• Full list, classified within support services sector

Business overview


http://www.communisis.com/docs/what-we-think/communisis-thought-leadership---the-future-of-customer-communications.pdf


Market Trends: Communisis is well positionedObservationOutsourcing of marketing services

Greater focus on ROI

Increasing value of content

Emphasis on global campaigns and consistency of messaging

Progressive migration from traditional print to digital formats including personalised messaging

Implication Opportunity for providers with broad and deep offering

Growing demand for: • Data services • Personalised messages • Transpromotional output Demand for campaign design • Better communication • Clearer documents Need for suppliers with an international capability

Overcapacity in print Growing demand for digital capabilitiesOpportunity for players with an integrated multi-channel service offering

Dave RushtonGroup ManagingDirector



ScaleRevenues – £200m + – approximately half from financial services with an increased proportion

from retail, telecoms, utilities, charities and government bodies – two thirds underpinned by multi-year framework contracts

Production capability – 1.9m pages per day of personalised (i.e. individual) communication – no tolerance on accuracy – every one has to be right

Group overview


Operations

Group overview


LondonRegulatory communications and Head Office

LeedsDesign and Direct Mail largest facility in Europe

LiverpoolStatements – largest dedicated producer in the UK

Manchester and CreweSecurity Products – dominant UK provider

NewcastleSourcing/Logistics

Bangalore50 software developers based in India

– employ 1500 people– 122 based on-site at 18 client locations

Group overview


Competitors

Design

Data

Cheques

Transactional

Sourcing/Logistics

Direct Mail

Major networks

Experian, Equifax, Call Credit

None of scale

RR Donnelly (US owned)

Williams Lea

DST (US owned), St Ives


Clients – Blue chip portfolio including:

Group overview

Top 5 UK headquartered banks

Top 10 Building Societies

Government bodies

Largest mobile phone operator

Major retailers and supermarkets

High profile charities

Leading gas and water utilities

Global consumer products group

Loyalty cards


Com

mun

icat

ion

Stra

tegy

Soft

war

e Pr

oduc

tion

Cont

ent C

reat

ion

Insi

ght &

Mea

sure

men

t

Art w

ork

/ stu

dio

Data

Ser

vice

s

Prin

t & D

igit

al P

rint

Post

al

Mul

ti- c

hann

el

Cheq

ues

Cam

paig

n / P

rint

Man

agem

ent

Inbo

und

Proc

essi

ng

Supp

ly C

hain

Mar

keti

ng T

echn

olog

y

Logi

stic

s

Bank 1

Bank 2

Retailer

Utility

Mutual 1

Government body

Insurance

Telecoms

Bank 3

Bank 4

Mutual 2

Bank 5

FMCG

Bank 6

Mutual 3

Supermarket

Design

Produce

Deploy

Servicesdelivered

Group overview

Nigel HowesFinance Director



*Based on increase in interim dividendDividend per share (p)

Pre-exceptional operating profit

Analysts’ pre-exceptional operating profit

Revenue

Bank debt Average net debt Total facilities

18

12

14

10

8

4

16

6

2

0

£11.6

£221.2

£9.4

£208.3

£7.9

£193.2

£7.2

4.3%4.7%

5.5%

6.6%

£190.2

240

220

200

180

160

140

120

120

£m

+2%+8%

+6%

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

7

6

5

4

3

2

1

0

%£m

+10%

+16%+10%

+19%

+22%

H2

H2

H1 H1 H1 H1

H2 H2H2

1.29p

2.55p

1.29p

2.88p

1.50p

4.27p

1.65p*

5.00p

7

6

5

4

3

2

1

0

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

pence pence

60.0

50.0

40.0

30.0

20.0

10.0

0.0

£m

2

1.5

1

0.5

0

£22.0£22.7

£15.8£16.8

Adjusted EPS (P) (fully diluted)

Revenue and operating profit

Finance overview





Revenue


18

12

14

10

8

4

16

6

2

0

£11.6

£221.2

£9.4

£208.3

£7.9

£193.2

£7.2

4.3%4.7%

5.5%

6.6%

£190.2

240

220

200

180

160

140

120

120

£m

+2%+8%

+6%

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

7

6

5

4

3

2

1

0

%£m

+10%

+16%+10%

+19%

+22%

H2

H2

H1 H1 H1 H1

H2 H2H2

1.29p

2.55p

1.29p

2.88p

1.50p

4.27p

1.65p*

5.00p

7

6

5

4

3

2

1

0

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

pence pence

60.0

50.0

40.0

30.0

20.0

10.0

0.0

£m

2

1.5

1

0.5

0

£22.0£22.7

£15.8£16.8


Operating margin

Finance overview





Revenue


18

12

14

10

8

4

16

6

2

0

£11.6

£221.2

£9.4

£208.3

£7.9

£193.2

£7.2

4.3%4.7%

5.5%

6.6%

£190.2

240

220

200

180

160

140

120

120

£m

+2%+8%

+6%

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

7

6

5

4

3

2

1

0

%£m

+10%

+16%+10%

+19%

+22%

H2

H2

H1 H1 H1 H1

H2 H2H2

1.29p

2.55p

1.29p

2.88p

1.50p

4.27p

1.65p*

5.00p

7

6

5

4

3

2

1

0

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

pence pence

60.0

50.0

40.0

30.0

20.0

10.0

0.0

£m

2

1.5

1

0.5

0

£22.0£22.7

£15.8£16.8


EPS and Dividends

Finance overview

Communication, channelled*Based on increase in interim dividend

Dividend per share (p)



Revenue


18

12

14

10

8

4

16

6

2

0

£11.6

£221.2

£9.4

£208.3

£7.9

£193.2

£7.2

4.3%4.7%

5.5%

6.6%

£190.2

240

220

200

180

160

140

120

120

£m

+2%+8%

+6%

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

7

6

5

4

3

2

1

0

%£m

+10%

+16%+10%

+19%

+22%

H2

H2

H1 H1 H1 H1

H2 H2H2

1.29p

2.55p

1.29p

2.88p

1.50p

4.27p

1.65p*

5.00p

7

6

5

4

3

2

1

0

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

2009Actual

2010Actual

2011Actual

2012Analysts’

Consensus

pence pence

60.0

50.0

40.0

30.0

20.0

10.0

0.0

£m

2

1.5

1

0.5

0

£22.0£22.7

£15.8£16.8


Bank debt

Finance overview

Communication, channelledCommunication, channelled

2008 Triennialvaluation

Benefit ofliability

reductioninitiatives

Investmentgains net of

interest

Marketmovements

and assumption

changes


Impact ofCentral Asset

Reserve(CAR)


(adjusted for CAR)

£40.7m

£18.6m

£5.1m

£21.3m

£38.3m

£9.8m

£28.5m

Pension deficit

Finance overview


2009 Actual Medium term


4.3% 10%

Better capacityutilisation

High speed colour digitalT300 + T400

Site consolidationRestructuring

Orchestra BristolKieon

YomegoThe Garden Marketing

Postal sortationebilling/statements

Transactional servicesMarketing technology

Integrated service propositions

Design services

Cost reduction Acquisitionsynergies

High marginservices

Progress towards double digit margin

Finance overview


Questions and Answers

Design Produce Deploy


DesignPhil DeanManaging DirectorCreative Services



Customer communication strategy• Campaign planning – print and digital

Content Management• Design and document composition• Software production – websites and mobile applications• Content creation – copywriting, editorial, photo/video/computer-generated graphics• Content communications

Insight and Measurement• Market research• Data analytics• Social media• Search/digital marketing optimisation• Reputation and sentiment • Response handling

Design Services and Capabilities


Design

Digital is the new default

DesignWhy these capabilities are important


We make it personal

DesignWhat makes us different


Content is king

DesignWhat clients value


The complete customer communication services provider. Four agencies in one, with over 120 experts, from strategy and creative to social media and data.

Design Services and Capabilities


Design

Communication strategy

Social strategy and measurement

Digital production

Regulatory communications


DesignHow it all comes together

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Non-print 1

Non-print 2JOB LOCATION:

PRINERGY 3

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It’s never too late to change a life.

Over one million young people in the UK are currently unemployed.

The Prince’s Trust is creating opportunities for better futures in Lancashire.

We’re a youth charity dedicated to creating life changing opportunities for 13 to 30 year-olds and putting their lives back on track. We aim to help 55,000 young people across the UK every year to develop their personal skills and gain confidence.

Whether they’re unemployed, left school with no qualifications or need funding to attend a course or job interview, The Prince’s Trust is on hand to help give young people in Lancashire a future they can look forward to.

Help us bring hope to more young people in Lancashire.

To donate, call 0845 177 0099 or visit princes-trust.org.uk/donate

Unless you donate today, how can we help tomorrow?

Donating is easy.Send it by post:

I enclose a cheque made payable to The Prince’s Trust in the FREEPOST envelope provided.

I would like to pay by Visa/MasterCard/CAF Charity card/Switch/Maestro/AMEX (circle as appropriate).

Card No.:

Expiry date: / CCV Number:

Issue no.:

(Maestro only)

Name of cardholder:

Signature: Date: / /

Set up a Direct Debit:If you would like to give a regular monthly gift, you can set up a Direct Debit. To do this, simply give us a call on 0845 177 0099.

XX/DMXXXX

Title: Forename: Surname:

Address:

Postcode:

Email:

By giving your email address, you consent to us contacting you by email.

Yes, I want to support the young people of tomorrow with a gift of (please tick):

£10 £20 £50 Other

Thank you for supporting The Prince’s Trust.Please complete in CAPITALS and return this donation form to: The Prince’s Trust, FreePOST, 18 Park Square east, London NW1 4ZZ

A donation of just £10 will help a vulnerable young person find their first job or get back into education.

Thank you for supporting The Prince’s Trust. We would like to keep you updated on the news and fundraising activities of The Prince’s Trust Group using the contact information you have supplied to us. You can stop receiving these communications any time you like. Please tick this box if you DO NOT wish to be contacted We won’t pass your details to third parties for marketing purposes.

Your donation can help even more people if you choose Gift Aid.Choosing Gift Aid means that we receive an extra 25p from HMrC for every £1 donated, so we can make every £1 go even further. Thank you.

I would like The Prince’s Trust to reclaim the tax on any donations I’ve made in the last four years, and all future donations until I notify you otherwise.

I confirm I have paid or will pay an amount of UK Income Tax and/or Capital Gains Tax for each tax year (6 April to 5 April) that is at least equal to the amount of tax that all the charities or Community Amateur Sports Clubs (CASCs) that I donate to will reclaim on my gifts for that tax year. I understand that other taxes such as VAT and Council Tax do not qualify. I understand The Prince’s Trust will reclaim 25p of tax on every £1 that I have given on or after 6 April 2008.

PTR-C500049-NWest-Leaf2.indd 1 13/09/2012 14:06

We’re inspiring young people in the North West to turn their lives around.

Last year our 78 xl programmes provided a platform for 608 young people from your region, enabling them to discover their hidden talents, reconnect with education and inspire them to change their lives for the better. Our Team programme helped 1,132

young people in the North West gain the self-confidence they needed to work towards achieving their ambitions.

Most young people leave with renewed enthusiasm and a clear idea of what career path they want to follow.

Last year, 79 per cent of the people we supported got back into education or found employment.

In in odio dui. Nulla facilisi. Nunc nec mauris sed justo lobortis gravida. Maecenas orci enim, consequat nec pharetra ullamcor-per, tempor vitae leo. Curabitur at feugiat mi. Aliquam orci metus, fermentum non vestibulum in, tincidunt at neque. Sed ligula elit, gravida non rhoncus ac, pharetra et felis. Aenean nec mauris sed mauris facilisis vestibulum.

75 per cent of young people re-offend within two years of leaving prison.

By supporting young people, we’re aiming to stop young offenders re-offending.

Working closely with our local partners in Lancashire, such as schools, colleges, businesses and local authorities, we have the expertise to help young people leaving prison become more employable. We give them the opportunity to change their lives for the better, to ensure they stay out of prison and on the right track.

We run various initiatives across Lancashire including Get Started and Get into programmes, which offer training and work placements within a specific industry sector to give young people real experience in a work environment. We also provide financial and motivational support to enable young people to attend courses, set up businesses or gain the confidence they need to get back into work, education or training.

DSN1806c ©The Prince’s Trust 2012 - all rights reserved. The Prince’s Trust is a registered charity, incorporated by Royal Charter, in England and Wales (1079675) and Scotland (SC041198).

“

Aged nine, Dominic Grove was forced to move away from his family. He struggled through school, and was constantly moving care homes.

He became involved in anti-social activities and was regularly in trouble with the police.

Dominic enrolled on our xl programme in Poulton-le-Fylde; a two-year course for young people at risk of underachieving. At first, he refused to work as a team, but he gradually came out of his shell. Filled with confidence, he decided to work towards a career in media. He’s currently studying for a BA Honours in TV and Radio Production at Sleaford University.

Katey england suffered from mental health issues due to a childhood trauma.

From age 17, she was in and out of hospital and fell behind at school. Later, her attempts to get back into education failed.

Katey enrolled on our Team programme; a 12-week personal development course we run at Lancashire Fire and Rescue. To begin with she was quiet and withdrawn, but with support, she completed the course. Katey is currently volunteering with The Prince’s Trust Get into Youth Work programme in Manchester, and hopes to pursue a career in youth work.

One in three young people feel they weren’t supported enough in school.

We’re giving young people in Lancashire a route to a great career.

More young people in Lancashire are discovering their talents every day.

xl really helped me to calm down. Before, I would never have had the confidence to apply to college. Now I feel like I can achieve anything if I put my mind to it. - Dominic Grove

“ I was very negative about myself before I joined the Team programme. Now I’m happier, I feel stronger and I have positive plans for the future. - Katey England

“

To donate, call 0845 177 0099 or visit princes-trust.org.uk/donate To donate, call 0845 177 0099 or visit princes-trust.org.uk/donate



PTR-C500049-NWest-Leaf2.indd 2 13/09/2012 14:06

My name is Lucy Walford and I’m the Head of Programmes at The Prince’s Trust. I’m writing to you today because we need your help to continue working with young people all over Lancashire. Many believe that their future looks bleak, and over 30 per cent of young people who are unemployed don’t think they’ll be able to find work in the next six months.

Last year we helped 5,485 young people across the North West develop the skills they need to get back on track and fulfil their potential. But calls to our helpline are ever increasing and without your support many of those calls will go unanswered.

You can help young people discover their hidden talents.I’m really lucky to have seen first-hand how your donations can change lives. In 2011, our xl clubs and Team programmes helped 2,157 young people in the North West on the verge of exclusion from school, or in a cycle of long-term unemployment, discover their hidden talents.

Take a look at how the xl clubs and Team programmes we run in Lancashire enabled Dominic and Katey to change their lives.

Unless you donate today, how can we help tomorrow?We rely on your help to continue running these programmes and providing vital support for young people. So far, our work has been incredibly effective. In fact, 79 per cent of the young people we helped in the North West last year have found their way back into work, education, or training. I understand it’s tough for everyone at the moment, but your donations can make a difference. Just £10 enables us to give support and advice to five young people calling our helpline.

Help us give hope to young people. Donate today by simply completing the enclosed donation form and sending it back in the envelope provided.

Thank you. Your support means a lot to us.

Yours sincerely,

Lucy Walford Head of Programmes, The Prince’s Trust

PS. You can also donate by calling us on 0845 177 0099 or by visiting princes-trust.org.uk/donate. Please give whatever you can to help us continue working in your community.

The Prince’s Trust18 Park Square East

London NW1 4LHphone: 0845 177 0099

Give young people in Lancashire hope for a better future.

DSN1810B ©The Prince’s Trust 2012 – all rights reserved. The Prince’s Trust is a registered charity, incorporated by Royal Charter, in England and Wales (1079675) and Scotland (SC041198).

NORTH WEST

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PRINERGY 3

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PTR-C500049-Seal-LT.indd 5 17/09/2012 8:34

DSN1805 ©The Prince’s Trust 2012 - all rights reserved. The Prince’s Trust is a registered charity, incorporated by Royal Charter, in England and Wales (1079675) and Scotland (SC041198).

The Prince’s Trust, 18 Park Square East, London, NW1 4ZZ

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PRINERGY 3

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You can give him hope for a better future.

PTR-C500049-Life-Outer.indd 1 30/08/2012 16:32

Mr A SampleAny townAny cityAny CountryAB12 34BC

DesignHow it all comes together


ProduceTony StrongManaging DirectorGroup Operations



Profitable Growth

• Selecting the right partners

• Investment in cutting edge technology and capabilities

• Increasing market share – multiple output channels

• Reducing our clients’ costs and gain sharing the benefits

Customer Intimacy

• Cultivating and nurturing lasting relationships

• Identifying clients’ unique needs and delivering solutions

• Collaborative working

• High levels of client satisfaction

Operational Excellence

• Quality and Service delivery

• Sustainable, repeatable, risk free performance

• Continuous improvement and innovation

• Process efficiency and effectiveness

Employee and Organisational Development

• Employ, develop and retain the best people

• High performing, team based culture

• Focus on ownership, accountability and results

• Learning organisation – feedback

Operations strategyProduce


Choice of servicesProduce

Design and data services

Document composition

Digital colour printing (white paper solution)

Multi-channel delivery

Postal management

Data receipt Data processing Document composition

SMS

Web

Print and enclose

email


Manufacturing capabilities• Four Centres of Excellence

• Dominant position in the UK cheque market with > 94% share

• The largest dedicated Transactional and Direct Marketing sites in Europe

> 400,000 sq/ft

> 4.2m products produced and despatched every day

• Investment in leading-edge manufacturing technology with global strategic partners HP and Pitney Bowes

• 850 highly skilled manufacturing technicians and support staff

• Operational excellence delivering the highest service and quality performance in our sector

Produce


Operational excellenceProduce

Weighted average performance combined

75%99.7%SLA

Reduction in complaints in 2012(five investigations in every 40m products)


Client benefits

• Effective data management delivering aggregate postal savings > £30m pa

• Operational integrity, security, risk and reputation management

• Outsource of non-core compentencies to industry experts

• Advise, collaborate and work in partnership with our clients to deliver highly effective multi-channel communications

• Deliver on promises

Produce


Scale

• Produce 1 in 7 packs delivered in the UK• Print 6bn pages p.a.• Group networked infrastructure allows sites to act as disaster recovery

locations for each otherData driven print items: – End of 2011 – 600m of printed pages were data driven and personalised – End of 2012 – 1.8bn of printed pages were data driven and personalised – 85% of all company communication today still relies on print – 15% of UK corporate spend is attributable to publishing, including

customer statements and direct mail – 75% of statement mail is in bank, credit card, utilities, telecom and

insurance

Produce

Implementing high speed colour for Centrica



4 I’d like more detail

What am I paying for?

Total kWh used 10526.14Total gas kWh used 9795.14Total electricity kWh used 731.00

What’s a kilowatt hour?A kilowatt hour gives you:

orA cooked breakfast for a family of four

Food kept fresh and frozen for a day

Your electricity use in detailmeter: Z99E21886

Daytime23 November 2011 meter read 4626415 February 2012 meter read 46606Actual kWh used 342

Cost of first 201 kWh used at 27.14p £54.55Cost of next 141 kWh used at 14.43p £20.35Daytime electricity used £74.90

Nighttime23 November 2011 meter read 1777815 February 2012 meter read 18167Actual kWh used 389

At a cost of 6.59pNighttime electricity used £25.64

Total electricity used £100.53Dual fuel discount -£3.73

VAT at 5% £4.84

Total electricity including VAT £101.64

Total energy used = £477.97

Your gas use compared to last winter (kWh)

0 3000 6000 9000 12000 kWh

23 Nov 2010 - 07 Feb 2011

23 Nov 2011 - 12 Feb 2012

Your electricity use compared to last winter (kWh)

0 200 400 600 800 kWh

23 Nov 2010 - 07 Feb 2011

23 Nov 2011 - 12 Feb 2012

How does this compare to last year?

Your gas use in detailmeter: G4A50008210901

23 November 2011 estimated meter read 2645315 February 2012 estimated meter read 27327Estimated units used 874Gas units converted into kWh 9795.14

Cost of first 604 kWh used at 4.63p £27.99Cost of next 9191 kWh used at 3.59p £330.42

Total gas used £358.41

VAT at 5% £17.92

Total gas including VAT £376.33

From 15 Feb 2011 to 14 Feb 2012, you used 29826 kWh of gas. If you use the same rate over the next 12 months, we estimate your cost will be £1041 (Based on the following breakdown)

15 Feb 2012 - 14 Feb 2013Period

FixedYour tariff

£1041Cost

£1041

Projected cost of gas over the next 12 months

From 15 Feb 2011 to 14 Feb 2012, you used 2017 kWh of electricity. If you use the same rate over the next 12 months, we estimate your cost will be £233 (Based on the following breakdown)

Projected cost of electricity over the next 12 months

15 Feb 2012 - 14 Feb 2013Period

15 Feb 2012 - 14 Feb 2013

FixedYour tariff

Duel Fuel discount

£248Cost

- £15

£233

Gas is a natural product. One unit does not always produce exactly the same amount of energy. In order to price energy from gas consistently, we convert your units used into kilowatt hours of energy, using the following formula:

1. metric units used 8742. x calorific value 39.45293. x volume correction 1.022644. ÷ metric conversion ÷ 3.65. = kWh 9795.14

Bill redesignProduce

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Are you getting the best deal?We want to make it easier for you to choosethe best possible tariff. The options below showaverage annual costs for a medium band usage household and compares your current tariff to the other tariffs we offer

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You’ll need your customer number: 85 88 08 31 28 35

PayPointTake this bill and pay by cash

Bank or by postMake cheques payable to ‘British Gas Trading Ltd’ write your customer number on the back. Take this completed payment slip with your cheque to the bank, or send to:British Gas,Payment Area 55 Camberley, GU95 1 AB

Credit or Debit card Online or by phone: call us on 0800 107 0224

Internet or phone bankingPay directly to us, our account number is 71584685 and sort code 40-05-30

SMSCall us to register for this handy service

Post officeTake your bill, payment card, and payment slip and make your cheque payable to ‘Post Office Ltd’

Allow 3 working days for payment to clear the bank/Post Office and 5 if you pay by post

Please don’t send cash in the post

Onlinebritishgas.co.uk/paymybill

Call0800 048 0202

Direct DebitIt’s easy, convient and saves you money. Plus collect 800 Nectar points for each account you switch

Your current tariff Your tariff switch options:

Standard tariff• Standard variable• Until 30 June 14Annual cost: £xxxNo exit fee

Online tariff• Standard variable• Until 30 June 14Annual cost: £xxxNo exit fee

6 Where does your money go? Your payment covers much more than just the wholesale cost of gas and electricity. Here’s a breakdown of where your money currently goes*

*Example based on industry average consumption of 16,500 kWh of gas per year and 3,300 kWh of electricity, taking average regional prices. Breakdown figures are indicative as at September 2011 and are based on actual costs from January to September 2011 and forecast costs for October to December 2011. Profit figure based on average profits for gas and electricity supply after tax from 2006 to 2010

EXTERNAL COSTS

OUR COSTS

Bought from wholesale market

Gas

Government obligations & taxesIncluding Green Levies & Social Support

Delivery to your homeRegulated by Ofgem

Operating costs

Profits

56%

21%

10%

8%

5%

38%

26%

19%

12%

5%

Electricity

2

Your winter payment is

What do I owe?

£477.97

Gas total: £376.33Electricity total: £101.64

= 10526.14 kWh

Your estimated energy use this winter is

You’re on our Fixed Price Promise tariffwhich ends on the 30th September Your bill in more detail

See step 4 >

3 How can I get in touch?How do I pay?

Your payment is due by

Save with Direct DebitSwitch to Direct Debit to receive around £67 discount a year off your energy bill

28th March

Where can I get more help?See step 8

Speak to one of our team0800 048 0202Mon-Fri 8am - 8pm / Saturday 8am - 6pm

britishgas.co.uk/securebills

Your estimated meter readings

GasElectricity-Daytime

Electricity-Nighttime

2 7 3 2 74 6 6 0 6

1 8 1 6 7

I want to change how to paySee step 5

1

Ms SampleSample RoadSampleABC 123

Your customer number: 85 88 08 31 28 35

15th February 2012 23rd November - 15th FebruaryBill date: Bill period:

Your winter gas& electricity bill

DeployMark StonerManaging DirectorSourcing and Logistics



Deployment

• Client engagement via our on-site teams

• Supply chain management

• Technology services

• Partner with the best

Deploy


Retail 7

Bank 4

Retail 6

Bank 6

Retail 1

Bank 2

Bank 5

Retail 2

Retail 4

Retail 3

Bank 3

Retail 8

Bank 1

Retail 5

Germany

Italy

FMCGCUSTOMER

France

FMCGCUSTOMER

FMCGCUSTOMER

Onsite teams – 122 employees across 18 sites

Deploy


Supply chain management

Scale• 45,000 tonnes paper – £40m through mills

and merchants

• 850m envelopes – £11m

• £41m on outsourced product

• £30m on post with Royal Mail

• £3m on data – lifestyle and specialist

Deploy


Technology services

• Customer communications management

• Facilitates process streamlining

• Real-time quotes driving choice and cost efficiencies

• Brand management and consistency

MANTLCustomer enabling technology


Partner with the bestDeploy

Integrating the value chain for Barclays



A case in pointDeploy

“Communisis has integrated the value chain and is enabling significant cost savings and cost avoidance to be achieved within this contract” Head of Procurement, Barclays


A case in pointDeploy

• Communisis provided a fully holistic approach to integrating and co-ordinating the separate business functions

• Transforming the way documents are created• Providing a truly integrated print logistics solution to manage stock levels

and distribution schedules seamlessly into the complex branch network• Eroding boundaries between the Bank’s business units• Consolidating the supply

chain and aligning it to the Bank’s corporate objectives

The Investment Case



SummaryInvestment case

Management• a strong team with a record of successful delivery

Technology• a reputation for manufacturing excellence and innovative solutions • trusted to deliver personalised communications accurately, securely, reliably and at scale

Competitive position• a differentiated offer

Profitable growth• a record of achievement • market trends that play to our strengths in the UK and internationally • an established portfolio of blue-chip clients • strong new business pipeline

Quality of earnings• two thirds of revenues underpinned by multi -year framework contracts • robust financial discipline

Dividend• a progressive policy and an attractive yield

Thank you

Communication, channelled MRK00042