Strictly Private and Confidential

A Presentation to IUSExploring Value Creation Opportunities Within The Power Engineering

Environment

Presented by Dave Johnson

12 September 05

Agenda

About Experientia Engineering

About the Market

Opportunities to work together

Immediate need for SAPs

Experientia Provides Resource Liquidity In A Complex And Changing World Where Flexibility, Speed And Quality Are Key. From Comprehensive Consulting Engagements To Highly Specialized Services Such As Engineering Services, Outsourcing Solutions and Interim Management, Experientia Works In Partnership With Clients To Optimize Performance And Produce Sustainable Sources Of Value.

Our Unique Offer To The Market Place Is The Creativity, Speed And Effectiveness With Which We Assist Organisations. Experientia Optimise Economies Of Scale, Installing The Most Appropriate Business Model And Remuneration Schemes With Highly Energised And Motivated Management. Our Transparent Communication Coupled With Our Extensive Analysis Abilities Enable Us To Offer An Outsourced Solution That Continues To Add Value.

About Experientia Group

The Exp Group of Companies

Experientia

Diagnostic Services

Experientia Consulting

Services

“The Need”“The Defined

Answer”

Exp Interims

Utility Interim Staffing Solutions

“The Solution”

Exp Outsourcing Solutions

Utility Field Services

Exp Engineering - Contract Engineering Solutions

We At Experientia Engineering Understand The Importance Of Our Senior Authorised Electrical Engineers.Distribution Engineering Is A Critical Skill And Service Not Only For Our Clients But The Economy And A The Country As A Whole. For Many Years The Electricity Distribution Companies Have Reduced The Number Of SAPs In Their Business In A Cost Cutting Drive. In Some Instances Skills Gaps And Succession Planning Have Been The Casualty. We Have The Solution, At Experientia We Understand The Unique Skill Sets Of Our Saps, Their Value And How To Support Their Needs And Requirements In Professional Development And Learning.

Our Mission - To Be The Best Senior Authorised Engineers In The Country

Our Values- Safety Is Our Job Our Core Our Number One Value- Engineering Excellence- Client Satisfaction- Rewards That Match Results- Continuous Personal Development- Care And Support For Our Colleagues And Associates- Profitability And Business Success Through Value For Money Services

Our Mission

The Exp Engineering Offer And How It Integrates With Our Clients Requirements

Exp Offer Our Clients

DesignProject

Planning & Mgmt

Onsite Mgmt Prep

& Negotiation

Outage & System

Planning inc Canvass

Expertise

Switchgear Manufacturing

Cable Laying

Overhead Line

Jointing u/g

Elec Fitting

Onsite SAP provision (Electrical & Safety Mgmt)

Onsite Project Mgmt

Client Liaison and Management

Vegetation Management

Multi Utility-Connections

Part of the Experientia GroupFocusing wholly on SAPs APs and Project Manager in Power EngineeringOver 20 UK Clients Working with all the DNOsCurrently 35 SAPs in our teamA high brand integrity Creative and innovative performance reward systemsSafety and Customer service focusA professional service culture

Experientia Profile

Strictly Private & Confidential 8

Field Service Products – Metering

Pay for Performance Flexible Meter Reading

- Cyclical/Scheduled Reads

- Unscheduled / DG8 or Specials Reads

Meter Installations

Meter Pad Fixing

Meter Changing

Providing flexible resources at your fingertips, Experientia offer the following metering services to the utility sector, all of which can be tailored to meet your unique needs.

All our metering staff are rigorously trained and understand the specific requirements of reading/installing meters whether located inside or outside of properties.

Our Business Model

We Are Not Bound By Historic Terms and Conditions We Can Reward Our SAPs Flexibly Performance Based

We Train New SAPs Extensively (We Grow Our Own) Based In Nottingham In The Centre Of The Country Serving The Country We Reward Our Team Well But Expect Nothing Less Than Total Commitment To Experientia And Our

Clients We Understand That SAPs Value The Intangibles As Much As The Tangibles. Learning, Training, Respect

And Delivering On Promises, Feeling Valued And Professional Back Office Support. We treat our SAPs as professionals and expect nothing less in return The country is dramatically short of SAPs in both Power Distribution and Rail With the exception of the likes of IUS the most independent Power Engineering firms are poor quality

The stage is set for UK dominance by the right firm

Our Experienced Engineers are Fully Equipped and Available At Short Notice

Agenda

About Experientia Engineering

About the Market

Opportunities to work together

Immediate need for SAPs

30

40

50

60

70

80

90

100

110

120

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Eastern

East Mid

London

Manweb

Midlands

Northern

Norweb

Seeboard

Southern

Swalec

Sweb

Yorkshire

Hydro-Elec

ScotPowerConsolidate

The Number Of Professional Electrical Engineers In The UK Has Been Slashed Over The Past Ten Years

Cost Reductions Have In The Past Driven A Less Than Well Thought Through Staff Reduction Plan

Cost

Associated Issues That Have Left A Difficult Position

Succession Planning If It Happened At All Only Occurred At The Executive Level The Criticality Of Some Roles (SAPs) Was Overlooked And Undervalued Demanding Price Reviews And Cost Reduction Programmes Have Demanded What Is Core To Reduce

To The Highest Level Activities All Else To Be Outsourced As Part Of An Aggressive Cost Reduction Programme Massive Consolidation And Shareholder Expectations Really Have Stretched The Limits On Minimum

Resource Planning The Reality Of The Business Is Its Easier To Train A Distribution Finance Director Than It Is To Train An

All Round Electrical SAP Forward Thinking companies are partnering with SAP providers to ensure they have first pull on the SAP

resource

Criticality ZoneAge

High

Low

Unplanned Failure Rates

CablesTransformers

Switchgear

We Understand The Asset Age Profile Is Still Escaping Us, System Investment Is Still Critical

Both Rail Spend and DNO is increasing dramatically

Let Us Help Manage, Maintain, Repair And Renew Your Critical EHV And HV Assets

A Recent PWC UK Power Report Cited The Following Critical Issues

The UK Generation And Distribution Businesses In The UK Are In Danger Of Being Pushed And Pulled By Unclear Regulatory Strategies And High Shareholder Expectations

There Is A Real Chance That Skill Shortages Could Lead To Power Outages, A Situation That The UK Domestic And Commercial Customer Base Has Little Or No Experience Or Understanding

Cost Reduction Strategies Are Finite And Shareholders And Government Need To Understand That The UK ESI Is At Or Close To Minimum Cost To Serve

The Next Five Years Will Be The Most Crucial For The Industry

The UK Has A Massive SAP Shortfall

There Are Currently 1312 SAPs In England, We Estimate A Current Shortfall Of Between 300 And 400 Authorised And Experienced Engineers. This Equates To Ten Years Of Ten RECs Missing Approx 2-3 New SAPs Per Annum.

Agenda

About Experientia Engineering

About the Market

Opportunities to work together

Immediate need for SAPs

What Do we offer IUS

Obviously a solution to the SAP AP and PM needs in a safety and CS focused way

Access to all the DNOs as clients

The keystone resource in winning work throughout the UK

The opportunity to in effect exclude some competitors

A trusted partnership

Absolute quality in fully equipped trained and audited staff

An opportunity to experiment with new reward schemes

S SM T W T F

07.00

21.00

Days of the Week

13.00

This Is What You Need

This Is What You Have

Historic terms and conditions are a constant barrier to high productivity We are not bound by these constraints

The Relationship Grid

SupplierCustomer

Long TermDeal

Target

Pote

ntia

l Val

ue C

reat

ion

Criticality / Importance

Low

High

Partnership Alliance

Joint Venture Vehicle

Together

A very powerful brand

A forward thinking management team

High ambition

Industrial Staff

An Open Mind

A Good Base Of Staff

A New Culture Of Managing Staff (Total Flexibility)

A New Flow Of Young Staff

An Unconstrained T&Cs Business

Well Respected Name In The Industry

A Powerful Selling Machine

We Can Dominate The Market

Solve the immediate Staff Need

Move to a new Staff reward system

Enter new geographic areas

Grow market share

Clients Have: Experientia Have:

Together

Agenda

About Experientia Engineering

About the Market

Opportunities to work together

Immediate need for SAPs

Experientia Engineering Cost Analysis

PM SAP3 SAP2 SAP3

1 Base Hourly Rate £15.00 £20.00 £23.00 £25.002 NI £3.00 £4.00 £4.60 £5.003 Vehicle £4.17 £4.17 £4.17 £4.174 Vehicle Insurance £0.30 £0.30 £0.30 £0.305 IT & Mobiles £0.22 £0.22 £0.22 £0.226 PI Insurance £1.10 £1.10 £1.10 £1.107 Other Insurances £0.60 £0.60 £0.60 £0.608 Tools and equipment £0.25 £0.25 £0.25 £0.259 Managemment & Admin £2.10 £2.10 £2.10 £2.1010 Safety (Training etc) £1.30 £1.30 £1.30 £1.3011 Training & Development £1.30 £1.30 £1.30 £1.3012 Office £1.10 £1.10 £1.10 £1.1013 Marketing & Brand development £0.50 £0.50 £0.50 £0.5014 Sub total £30.94 £36.94 £40.54 £42.94

15 Margin @10% £3.09 £3.69 £4.05 £4.29

16 Total per hour £34.03 £40.63 £44.59 £47.23

17 Total Per day £272.24 £325.04 £356.72 £377.84

SAPS Available for IUS @ Central Networks

Frank Gilmore 11kV SAP Ex EME

Dave Mc Glenn 11kV – EHV Ex CEE

Paul Wilson 11kV-EHV SAP Ex EME

Albert Solini 11kV SAP Ex EME

Robert Clay LV Authorised Ex Eastern

Alan Mair 11kV – EHV Ex CEE

Tim King 11kV SAP Ex EPN Eastern