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Our structure

FIT FOR PURPOSE: We have restructured our Group to promote our two core business streams – the Term Servicesprovided by Ringway, and our Contracting & Production activities now trading under the Eurovia brand name.

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Contents

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Section 1 Our business

Section 2 Our strategy

Section 3 Our customers

Section 4 Our people

Section 5 Our environment

Section 6 Our communities

Section 7 Our performance

Foreword2010 brought many challenges, but in spite of the difficult conditions in ourmarkets, which are ongoing, it was a year of many achievements too.

As this report outlines, our approach to corporate responsibility and ourstrategy for the business are ever more closely entwined. That is borne out by our achievement of Silver statusin the CR Index, in just our second year of entry, benchmarked against the leading organisations in the UK.

Despite the economic downturn, we sustained a high level of investment in training, in our apprentice andgraduate recruitment programmes, and in research and development. We pushed the proportion of wastediverted from landfill to over 92%. Assessments against the EFQM business excellence model showed furtherevidence of continuous improvement.

These efforts brought recognition with awards for quality, occupational safety, partnership with clients, andproduct innovation.

We recognise, though, that we cannot afford to be complacent. Our carbon strategy, launched during theyear, maps out the steps we must take to monitor robustly all aspects of our footprint as we strive to reducecarbon in our business. But it will be a hard path, as the severe winter season showed in its impact on our fueland energy use. Nor do we under-estimate the challenge of replacing traditional solutions with our moresustainable and low-energy alternatives.

So we have restructured our Group in two distinct operating areas under the Eurovia banner of our parentcompany. The name signifies our access to world-leading technical expertise and financial resources. It alsobefits the Contracting and Production side of our business, which has an expanding private client base as wellas public sector customers. Our Term Services business, meanwhile, sustains the market-leading reputation ofthe Ringway brand.

We are a leaner and fitter Group with a solid commercial base, sound finances, and a highly skilled andtalented team delivering an increasing range of services to our clients. This gives me confidence that we canlive up to our corporate responsibilities and deliver for our stakeholders through the years ahead.

Scott Wardrop, Eurovia Group Managing Director

CR Report 2010

Our businessAgainst the backdrop of continuing recession and uncertainty, 2010 was achallenging year for Eurovia Group.

In most of our markets our business was squeezed – on the one hand,by falling demand or prices for our products and services, and on theother, by the rising costs of energy and materials. But these challengingconditions have also given rise to opportunities that we are pursuing toadapt our business in ways that promote sustainability and fulfill ourcorporate responsibilities.

Marketplace trendsCompetition intensified during the year as service providers bracedthemselves for public expenditure cuts following the Government’scomprehensive spending review. Local authorities are not only cuttingtheir budgets, they are also changing the basis for letting contracts. Givingprice more weight in tender evaluations reverses the trend of recent yearstowards a higher emphasis on quality. It also increases the risk that biddersundercut costs to retain or win contracts.

Another shift, towards longer contract periods – eg, 7-10 years ratherthan five with possible extensions – will reduce the frequency and numberof tender opportunities. But it is welcome in so far as it fits with ourphilosophy of seeking sustainable returns through longer-termpartnerships and concessions.

More and more of our clients are seeking our support and expertise inmanaging their networks and assets. Our Group is delivering thesefunctions while continuing to build our skills and knowledge in the field ofnetwork management and long-term asset optimisation.

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“Corporate responsibility underpins manyaspects of my job – from how we apply ourbusiness ethics and values in our dealingswith clients, to driving carbon reductionthrough performance assessment. The way weengage with local communities is also highlyimportant and rewarding. In Islington, forexample, we have hosted events to educateschoolchildren about the dangers of carryingknives and we are sponsoring opportunitiesfor people from deprived areas to attend the2012 Olympics.”

Jackie Wellesley, Liaison & Performance Manager, Eurovia Infrastructure Limited

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47,000hours of trainingdelivered in 2010

A fitter structureIn response to these changing market conditions we haveadapted our Group structure and taken a strategicapproach to tendering. Our business strategy, in whichcorporate responsibility is embedded, involvesconsolidating our strong position in core markets whilediversifying into areas with growth potential – especiallylow-carbon alternative technologies and services (see Ourstrategy, page 9).

We began 2010 with a new Group structure that betterreflects our two main business streams – Term Servicesand Contracting & Production – now delivered under theseparate flags of Ringway and Eurovia. We alsostrengthened our management team, appointing highlyexperienced people to lead these two sides of thebusiness.

Contracting & Production covers a wide range ofspecialist services as well as surfacing, roadmarking andinstallation activities, plus the manufacture of asphalt,other highway materials and signing. More than half ofthis business was already with external customers.Adopting the Eurovia brand widens this appeal further,while signalling our division’s access to the world-leadingtechnical expertise of our parent company, Eurovia SA.

The Ringway name remains synonymous withinfrastructure and environment services. Clients andcompetitors alike recognise our strengths as a servicesprovider. Term Services will continue to gain greatadvantage from the values Ringway represents (seeoverleaf) and our reputation for delivery and innovation.

Meanwhile, for our business as a whole, the Eurovianame underscores the financial strength and stability ofthe Group. In an uncertain economic climate, clients canhave confidence in our commitment to service andpartnership over the longer term.

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CR Report 2010

Other developmentsMaking our Group fit for purpose meanstackling its cost base too. Rising pricesfor resources, and particularly oil andbitumen, have posed significant risks forbusinesses in our sector over the last twoyears. This was most acute in asphaltproduction, which has also been hit bythe hike in energy costs and over-capacity.

Following the severe downturn in thismarket, we took the difficult decision toclose down our Roadstone division’splant in Immingham. This was dictated bysharply rising costs and falling output,despite strong relationships with clientsin the region and a committed workforce.

The facility’s equipment will bedismantled and re-used by our parentcompany Eurovia SA elsewhere inEurope.

We have plans to invest in other areas,including plant and personnel. EuroviaRoadstone continues to explore energy-saving opportunities. In Dagenham, forexample, we are promoting best practicein managing carbon emissions throughtraining sessions for operational andtechnical management provided by theCarbon Trust.

We and our shareholders are alsoprepared to invest in acquisitions thatstrengthen our business. Early in 2010 weacquired Highway Infrastructure Servicesand its signs installation operations,which complement our Eurosignsmanufacturing business. The HISacquisition also supports ourcommitment to ‘self-deliver’ serviceswhere this represents the most cost-effective solution (see Our Customers,page 12). The same formula – acquisitionand self-delivery – saw the continuedgrowth during the year of our AirportServices division following its expansionin 2009.

Despite the uncertainty gripping ourmarkets, we ended 2010 in a strongcommercial position: debt-free, cash-positive and budgeting for strongperformance across the business. Ourorder book was bolstered by theextension of five term contracts as weenter the final phase of bidding for twolong-term concessions under the PrivateFinance Initiative – in partnership with oursister company, VINCI Concessions.

Eurovia and VINCIAs our new Group title proclaims, we arepart of Eurovia, the European leader intransport and urban developmentinfrastructure, which employs more than40,000 people generating annualrevenues of around !8 billion.

And through our parent company, weare part of VINCI, the largest constructionand road services group in the world.VINCI employs 180,000 people in morethan 100 countries, turning over !33billion.

VINCI is renowned for its commitmentto sustainable development and sets theframework for our policies. Its approachto corporate governance is based on riskmanagement and accountability. VINCI’sSustainable Development Committeeanalyses the risks associated with all theGroup’s activities. It also oversees regularenvironmental and social reviews, andholds subsidiaries to account for progress

OUR VALUES

Our vision is to be the preferred service provider within our chosen marketsectors. Living our values every day guides our behaviour, sets us apart fromcompetitors, and helps us strengthen our relationships with customers and attractnew ones.

• INTEGRITY – We are straightforward and fair. We do what we say we will do,respect and trust people, and are trustworthy in return.

• VERSATILITY – We embrace change, welcome new situations and craveknowledge from whatever source. We are flexible and adaptable to new methodsand practices.

• OPENNESS – We are approachable. We know that clear communication andinvolvement at all levels within the Group, and with our supply chain partners andour clients, is vital to sustain long-term success.

• RESILIENCE – We are persistent, set challenging goals for our performance, andstrive to build enduring relationships. We see difficulties as opportunities to learn.

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CASE STUDY All out for ANITA

The ANITA project at BirminghamInternational posed majorchallenges, not least the breadth ofskills and resources that had to bedeployed while serving multiplestakeholders from rail stationmanagers to the Highways Agencyand the National Exhibition Centre(NEC).

Ringway Infrastructure Servicessecured this £11 millioncommission under its StrategicHighways Contract with SolihullBorough Council. Funded by the Department for Transport, the scheme (officially openedby Transport Secretary Philip Hammond in May 2011) involved widening and resurfacing adual carriageway, installing the country’s first variable bus lane, constructing a new linkroad to Birmingham International Airport, and other works, including cycleways and buscorridor improvements.

Through Early Contractor Involvement, Ringway seconded a Graduate Engineer toconsultants WSP as Design Co-ordinator, engineering valuable savings. The Group’sTechnical Centre undertook the detailed design of carriageway construction, as otherdivisions made and laid Eurovia’s U-LM thin surfacing, and recycled planings in thefootway and cycleway sub-base layers. Other in-house contributions included thetemporary traffic management arrangements, resin-bonded surfacing for cycleways, whitelining, road studs and anti-skid treatments, variable-message, rotating-prism and staticroad signs, covered cycle stands, and safety barriers.

This comprehensive capability delivered a complete and cost-effective solution,exploiting advantages in programming, consistent safety culture, internal pricing, andspecialist products and expertise.

towards VINCI’s ‘prioritycommitments’. These range fromhealth and safety goals tomeasurement and management ofgreenhouse gas emissions. We in theUK report our performance via Eurovia,including our Scope 1 and 2 carbonemissions.

Governance and CRThe drive to embed corporateresponsibility in all our activities stemsfrom board level. This body sets ourcorporate responsibility strategy (whichis outlined in the following chapter)and tasks individual directors andsenior managers with leading onspecific aspects.

The Group Executive Committee,which is chaired by the GroupManaging Director, oversees how thestrategy is implemented. Corporateresponsibility is translated into policyand practice through a variety ofgroups and channels, including theHealth, Safety & EnvironmentalSteering Committee, People StrategyGroup, Supply Chain Executive, LowCarbon Steering Committee, andCommunity Committee.

The Way We WorkThe Way We Work is our integratedsystem for managing health and safety,

environmental performance, andquality. It combines the managementframework set by our parent companyand our own policies and procedures inone user-friendly tool for all operations.These procedures range from routineoperational matters to emergencyplans and disaster recovery.

Our integrated management systemis accredited to the internationalstandards for quality, environmentalperformance and safety (ISO 9001, ISO14001 and OHSAS 18001). Externalassessors audit the system, which wasrevamped, under the guidance of itsusers, in 2009. The renewal continuedin 2010 as many areas were updated,anchoring its procedures more firmly inday-to-day working.

Through 2010 there was also achange in the process as we moved thebasis of ISO registrations from ourdivisions to Group-wide certification.This is driving greater consistencyacross the Group, highlightinginnovations and areas forimprovement. It also helps targetinternal auditing where it is mostneeded.

The benefits are being reinforcedfurther as we integrate complianceaudits with assessments against theEFQM Business Excellence model (seeOur strategy, page 9).

Philip Hammond openingthe ANITA scheme

Our strategyJust as we refocused our strategy for the business during 2010, we also developedand refined our roadmap for corporate responsibility. The most notable aspect ofthis ongoing process is the extent to which both strategies are now aligned.

As we have previously reported, the Group’s Five Year Plan recognised that corporateresponsibility was fundamental to the long-term sustainable growth of the business.Doing the right thing by people and the planet is the right thing for the business too.There is no trade-off. This reality is borne out by three crucial strands of our businessstrategy – for winning work, streamlining the business, and seizing growth opportunities.

Strategic tenderingWe want to build long-term relationships with clients who are flexible and open like us.This allows us greater scope to innovate and add value in ways that benefit both sidesand our stakeholders, not least the communities we serve.

So we are tendering for strategic contracts that deliver value and support theobjectives of our Five Year Plan while ensuring our service philosophy is closely alignedwith the needs of customers.

We are also investing heavily in Private Finance Initiative bids. Under PFI contracts wecan deliver significant infrastructure investment by leveraging the financial strength ofVINCI. Their typical 25-year term encourages decision-making on the basis of the whole-life costs of developing and maintaining assets – including their carbon footprint.

Our Group is also a firm believer in Public Private Partnership. Through PPPs we canaccelerate the renewal of our customers’ assets, again by exploiting the wider resourcesof our parent and associate companies.

Streamlining Our business and CR strategies converge also when it comes to streamlining thebusiness, cutting costs and adding value.

We use Lean thinking to eliminate waste, minimise bureaucracy and increase efficiency.

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“When developing new business areas andour activities with new clients it is importantto have a strong base from which to build.Our corporate responsibility strategy bringsthis, joining together strong technical andcommercial initiatives with a focus on future-proofing for the environment, communitiesand our nation,s infrastructure.”

Rob Gillespie, Group Business Development Director

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This is realising real cash savings for our customers – for example, through theincreased productivity of road repair gangs. Carbon savings – in the form offuel or resource consumption – usually come hand-in-hand with these financialgains.

We are also streamlining our in-house systems. By combiningcompliance audits with our assessments against the EFQM ExcellenceModel, we are making it easier to plan improvements as well asmaking the most of assessors’ time. The first combined assessmenttook place in our East Midlands division early in 2011. Anotherexample is the integration of our specialists in health and safetyand environmental management in a single support team (seeOur people, page 21).

More generally, we recognise that our pursuit of efficiencyand business improvement is inextricably linked withsustainability. Effective carbon management – for example,in our plant and fleet and in routing of road crews – drivesefficiencies in our operations, delivering financial as well asemissions savings.

Emerging marketsThe third strand of our business strategy – diversificationinto growth areas – is just as closely entwined with our drivefor sustainability.

Emerging markets can point the way to a low-carbon futureas well as business potential. Last year’s report described thecarbon-saving benefits of our first LED-illuminated road signs.We are now working to multiply those benefits through a newpartnership exploiting leading-edge developments in LED andsolar power (see Our environment, page 27).

Other developmentsOur corporate responsibility strategy advanced on other fronts in 2010.

Responsibility for developing and driving the different elements of ourstrategy has, as previously mentioned, been assigned to members of thesenior management. What the strategy means for our customers, people,environment and communities is described in the following chapters.

The work of our Low Carbon Steering Committee continued into its secondyear. This group brings together senior operations people with specialists incommercial and technical matters, environmental management and plant.

92.3% of all waste

diverted from landfill in 2010

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A major output was a new carbonstrategy. Entitled Committed to CuttingCarbon, this maps out the steps we willtake to cut the Group’s carbon emissionsby 5% each year between 2011 and 2014(see Our environment, page 23).

The committee is preparing the groundfor this carbon reduction within ourbusiness by building understanding of theissues and identifying and sharing bestpractice within the Group. Havingidentified the major carbon emitters withinour business, we will develop and trialcarbon reduction initiatives. A ‘carbonblueprint’ tool is also being developed tohelp Divisional Managers deliver the newstrategy and local targets for carbonsaving.

To ensure all carbon-related data isrobust, the committee will also bringforward an auditing process forperformance data in line with VINCI’saudit procedures.

We have carried outan initial review of thenew standard for socialresponsibility, ISO26000. This will beincorporated into ourFive Year Plan and guideour strategy as itdevelops.

Supply chain A strong and flexible supply chain thatcomplements the Group’s in-housecapabilities is crucial to our effectivenessas a service provider.

Our supply chain partners share ourvalues and we expect them to live up totheir corporate responsibilities.

Through ‘early contractor involvement’,we identify value engineeringopportunities, save clients money andminimise disruption to end users. We alsoshare depots and offices, financial‘pain/gain’ on some contracts, andtraining. Eurovia Group recognises andrewards innovation and sustainability inthe supply chain through an awardsscheme and regular briefings andworkshops.

We have introduced Category Managerswho ensure the Group and our clientsreceive best value for key products andservices. The national frameworks and

service level agreements they negotiate,along with the buying power of theexpanding VINCI UK Purchasing Club, aredelivering valuable savings. Thesearrangements not only improve value formoney, they are also generating new ideasand solutions for our strategic bids.

In 2010 we pioneered pre-bidworkshops that allow us to identify andinvolve local suppliers who will be able towork with us from the start of newcontracts (see case study opposite). In thisway we can boost the support we provideto local economies and local authorities’efforts to promote localism.

Our Contract Managers have access toapproved national and local suppliersthrough a Group supply chain database.Performance is assessed in a 360-degreereview process, based on the EFQMExcellence Model used across ourbusiness. Where necessary, performanceimprovement plans are agreed with thesupply chain partner.

During 2011 our eSource database willbe developed to ensure a consistentapproach to environmental, safety,equality and inclusion commitments aswell as cost-effectiveness. It will link oursupply chain performance indicators moreexplicitly to desired outcomes for thecustomer and our business.

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Benchmarking progressLast year we reported that we had formally joined the Corporate Responsibility Index,the leading voluntary benchmarking scheme for UK companies. The Index provides aframework for managing, measuring and reporting on business impact on theenvironment and society. Its scores indicate how far management of the CR agenda hasbeen integrated into the core day-to-day processes of the business.

Our 2009 report set out our target of achieving a 75% score and the ‘Bronze’ ratingattainable by companies in the earlier stages of data collation and public reporting ofenvironmental and social performance. We achieved that target (following publicationof our 2009 report).

In 2010 we went on to make further progress. The Business in the Community CRIassessors have awarded Eurovia Group a score of 83%, lifting us into the Silverperformance band. Its assessment showed improvement in almost all areas of theindex, which ranges from corporate strategy to waste management and communityinvestment.

Our Group’s progression between performance bands is a notable achievement,especially as the index is updated and strengthened each year as participants areexpected to deliver continuous improvement. So we recognise that more work needs tobe done to sustain and increase our score, especially in the challenging market conditionswe now face. We remain committed to delivering real improvements to our clients andcommunities that are aligned with their and our CR objectives.

Carbon disclosureThe Group also continued its participation in the international benchmarking scheme, theCarbon Disclosure Project. It is the third year that we have contributed on behalf of localauthority clients and the Department for Transport. Again, the results showed that ourperformance was above the CDP average for a range of parameters:

• Eurovia Group scored 100% for governance and for strategy and target setting, againstCDP averages of 78% and 71%. For communications, we scored 92% (56% average).

• Our outperformance of the average in other areas reflected the influence of our LowCarbon Steering Committee, carbon strategy, and efforts to measure and monitor ourcarbon footprint. Our scores included: 69% for disclosure (48% average), 78% foremissions (46%), 73% for risk management (46%), and 77% for Scope 1, 2 & 3 carbonfootprint reporting (63%).

CASE STUDY The local linkGroup companies are deliveringadded value and time savings throughEarly Contractor Involvement – and byapplying the same principle to thesupply chain. In 2010 Ringway went astage further, getting potential supplychain providers involved in advance ofbidding for new work.

The supply chain events wereorganised to maximise the scope forlocal small and medium-sizedenterprises (SMEs), as well as national

framework providers, that can complement Ringway’s self-delivery model in waysthat maximise cost-effective service delivery, reduce defects and enhance assets.

A ‘surgery’ day was advertised in the local and trade press, and notified toexisting framework suppliers.

The Group’s supply chain team were joined for the event by Ringway’s RegionalDirector, Bid Manager and the Divisional Manager nominated to run the contract.Held before tender documents were issued, the day began with a “meet andgreet” session for suppliers, followed by open discussion about the contract andone-to-one meetings with suppliers’ representatives.

A follow-up workshop was held mid-way through the tendering process whenthemes from the tender documents were explored.

This process allows Ringway to share its vision with all potential suppliers, tounderstand the challenges and barriers they face, and to foster an open andhonest working relationship from the outset.

SMEs and existing framework suppliers have welcomed this approach, whichshould strengthen Ringway’s capacity to meet highway authorities’ requirements.Local Supply Chain Days are now established Ringway practice, and are beingemulated by other companies.

Our customersIn an era of shrinking budgets and overcapacity, the onus on service providers tosatisfy customer need could not be greater. The success of our strategy hinges on ourability to align our products and services with the needs of our customers.

They and our other stakeholders alsoexpect us to share their commitment tosustainability. This has shaped our strategy(as already described), and informs ourapproach to business improvement,innovation and the supply chain.

Service deliveryThe Eurovia Group approach to servicedelivery is based on teamwork – betweenthe different parts of the Group, with ourclients, and with our supply chain.

Our capacity to ‘self-deliver’ sets usapart from other service providers. We useour specialist in-house expertise andproducts where this is the mostsustainable and cost-effective solution. Italso means our people have the detailedskills and experience to advise clientswithout need for external partners.

We self-delivered over 77% of our termservices work in 2010; up from 70% in2009. This gives us greater control overquality and risk. But our procurementpolicy is flexible and balances the need todeliver best value and avail of

opportunities to support local economieswhile reducing delivery mileage (see Ourstrategy, page 8).

During the year we also improved theway we share our technical knowledge bydeveloping our in-house training. AnInnovation Award winner, our new courseensures all contract teams have a clearunderstanding and can better explain howour products and techniques solve theparticular needs of clients, for example byoptimising whole-life costs and reducingcarbon footprints.

TransformingservicesWe continued to raisestandards of service andvalue for money on ourterm contracts throughservice level agreements(SLAs). InWorcestershire, forexample, several facetsof the highways services

have been transformed. The first SLAproposed by Ringway combined gullyemptying and jetting with assetmanagement planning so that gullies aremanaged more effectively according toneed. Called Drainman, its success hasinspired the Worcestershire Highwayspartnership to develop more cost-effectiveapproaches to road patching, safetybarrier maintenance, and road markings.

In Bracknell Forest, SLAs havetransformed delivery of street cleansing,gulley cleansing and minor footway repairs

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Group excellence rating

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(see case study, page 15). While boosting service efficiency, these initiativesbring added benefits by freeing up road space, allowing the network tooperate more effectively, and raising public satisfaction.

Transforming services can require lateral thinking. In Kent,Ringway’s streetlighting team retained two of the regionalelectricity network company’s personnel to make live connectionsto repaired or new columns. The “rent a jointer” agreement withUK Power Network and the county council eliminated delaysand cut connection costs by 70%. Now we have gone further,gaining official industry approval to carry out live connectionsto unmetered electricity supplies. This means Ringway canrecruit its own jointers, becoming a one-stop shop for theentire installation service. Having proven this approach, wewill roll it out elsewhere.

Real partneringOur Group’s values promote the kind of partnership thatmakes these initiatives possible. This is borne out by ourpeers. In the industry’s 2010 awards for excellence, wefeatured in each of the three entries shortlisted for EffectivePartnership by the Chartered Institution of Highways &Transportation. Worcestershire Highways was the winner (seeright). Ringway was also highly commended for its effectivepartnering in Surrey, and our joint venture Ringway Jacobs wascommended for collaborative working with Transport forLondon.

We also engage with our clients and share knowledgethrough our Client Forum. It allows open discussionbetween service heads in local authorities and oursenior managers on the challenges our clients face andhow we can support them. We share performancedata, float new ideas and agree priorities for furtheraction in the forum, which meets twice a year.

Improving the resilience of transport services inwinter was a key topic at both meetings in 2010.Previous winter service performance was analysed and

Effective Partnership AwardWhat the CIHT judges said: “The submissiondemonstrated a fully integrated and effectivepartnership. The results were a strong record indelivering service improvements. The partnershiphad achieved an imaginative and ambitiousprogramme of service re-configuration and culturalimprovements which have delivered value formoney and customer satisfaction.”

29%drop in servicestrikes in 2010

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CR Report 2010

the lessons factored into planning for whattranspired to be another challenging winterseason. Other issues included localism,fluctuating prices, and carbon labelling.

Maximising valueDelivering more for less is no longer anaspiration for public authorities; it’s anecessity if they are to maintain services andquality as budgets shrink.

We have robust systems to manage andcontrol costs, and to secure value from oursupply chain (see Our strategy, page 10),through strong cost capture, target settingand benchmarking. We earn trust andconfidence through open-book accountingand sharing pain and gains. We also offercustomers certainty and take on risk throughlump sum payments for duties such as floodresponse.

Long-term asset management can reducethe annual cost of maintenance through, forexample, the greater durability of materialsdesigned by the Group’s pavement

engineers in Jean Lefebvre UK. Thissupports the twin aims of authorities seekingboth to: reduce their environmental impact– by using less virgin resources and energyto extract and process them; and to manageroad space better – with fewer roadworksand associated emissions from queuingtraffic. A network built and maintained in asustainable way with sound whole-life valuealso releases financial savings that can bereinvested in improving the asset and theservice to communities.

Business improvementWe are also releasing millions of poundsannually by re-engineering processes withour customers on Lean principles. Using thepower of our tailored managementinformation system eServe (see oppositepage), we are streamlining response tohighway defects and raising productivity,while providing real-time data to customersand reducing our carbon footprint.

As well as championing Lean, we have

been measuring our internal processesagainst the European Foundation for QualityManagement’s Excellence Model forbusiness improvement since 2003, which weare raising to 15% (see Our performance,pages 34-37).

Our EFQM programme drivesimprovement in every part of the business.Our in-house trained assessors reviewperformance, identify areas forimprovement – along with best practice tobe shared with other divisions – and agreeaction plans to be followed. ProjectImprovement Teams (PITs) also carry forwardEFQM-inspired initiatives.

During 2010 eight business units wereassessed. The combined score of 452 forthe Group is a creditable achievement andrepresents a 7% increase on 2009. This takesus a long way towards our target of a 10%rise by 2013, which we are raising to 15%(see our performance, pages 34-37). Since2004, the overall average has increasedsteadily from 287 – marking animprovement of more than 57% in that time(see chart, page 12).

Our achievements have been recognisedby the British Quality Foundation. In 2010Ringway Worcestershire won its annualProcess Improvement award for streamliningthe delivery of reactive highway works byarea response teams. This followed its 2009BQF award for Lean Six Sigma Partnership –a rigorous programme to reduce waste inthe highways service and create value forcustomers.

“More than ever, our success depends on meeting and anticipating our customers, needs. Oursense of corporate responsibility is crucial to this. It cements our common purpose. Weunderstand the pressing need to give taxpayers value for money and to cut the carbon andenvironmental impacts of transport infrastructure by delivering more sustainable services. But we also appreciate that local authorities have wider social and local economic goals sowe want to help make the communities we serve better places to live, whilst at the same timesupporting local business development.”

Chris Connor, Term Services Managing Director, Ringway Infrastructure Services Limited

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Ringway’s term services division in theEast Midlands was also honoured, as oneof only four organisations to receive a 5-Star rating for excellence. This requiresconsistent performance at the highest levelto achieve a score of over 500 in anexternal BQF assessment against theExcellence Model. The division was alsoshortlisted with its client Peterborough City

Council for a Partnership Award.Our progress in embedding Lean

thinking and our clear sustainabilitystrategy were also praised by the HighwaysAgency. The manager of England’smotorways and trunk network last yearchanged the way it evaluates thecapabilities of its suppliers to focus on fivekey areas – leadership, supply chain, cost,

inclusion and sustainability. Its conclusions,following an assessment early in 2011,showed that Eurovia Group was wellaligned with the Agency’s strategy “tobecome a truly sustainable organisation”.

Value of innovationCustomers also value our strong recordon innovation. In May Transport forLondon gave our LED signs its InnovationAward. We also picked up another CIHTprize – its Technological ApplicationAward 2010 – for this product range,which was developed by Eurosigns inWeston-super-Mare. The signs add valueby providing a low-maintenance, low-energy solution that reduces the carbonfootprint of highway signage. We areexploiting the cabon-reducing potentialof LED and solar power further throughour latest venture (see Our environment,page 27).

We recognise and reward theinventiveness of our people through a bi-annual awards scheme. It alternates withour parent’s Innovation Awards for VINCIcompanies worldwide. In 2010 wereceived more than 55 submissions forthe Eurovia Group Innovation Awards inseven categories, including services,equipment and tools, health and safetyand the environment. Ideas ranged froma simple de-icing solution using a dam ofrock-salt bags where water runs across aroad, to an improved patching repairmaterial, Duraphalt Fill, developed inpartnership with our supply chain.

Power of eServeDelivering the outcomes that customerswant involves joining up all the people,systems and processes behind our serviceseamlessly together. This requires free-flowing information and an IT system tocollect and process it. We have developedeServe, our electronic managementinformation system, to do this crucial job.Powerful, intelligent and above all,flexible, eServe can link together dozensof software applications and databases –hosted by us, the client or other partners –to match the needs of each contract andclient. eServe ensures they are integratedin an accessible but secure environment.

In harness with our Masternaut vehicletracking system, eServe supports assetmanagement and greener fleet utilisation.On hand-held devices, eServe mobileallows gangs to receive works orders,navigate to the worksites, transmit ‘before’and ‘after’ photos, and update themanagement system in real time. Linkedto highway authority systems, it facilitatesstreetworks permitting and live feeds tocustomer contact centres and publicinformation online.

In these and other ways eServe helps usthink and act like the client. On PFIcontracts our MIS can provide all thesupporting systems as we effectively takeon the role of highway authority. Itprovides the accurate, real-timeinformation that is critical to networkintegrity and road users’ safety.

CASE STUDY The next levelStreet cleansing, gully emptying and highway patching in Bracknell Forest have all beentransformed under service level agreements (SLAs) proposed by Ringway.

Working together, Ringway Infrastructure Services and the borough council firsttackled its street cleansing service. Resources were costed on an open-book basis, thecontract specification was revised, and payment switched to an annual lump sum.

The new cleansing regime has raised standards ofcleanliness and accelerated removal of graffiti andfly-tipped waste. Along the way Bracknell Forestgarnered its first Britain in Bloom Gold Award formany years.

Similar efficiencies were achieved in gullycleansing after Ringway took over from the council’spreferred subcontractor. Joint audits have confirmedthe service improvements. Again, lump sumpayment gives the council certainty of price and

saves inspection and management time, while also passing the risk of extra flood-relatedworkload to Ringway.

The third SLA has changed the way minor footway defects are reported and repaired.A new dedicated Reactive Patching Unit has generated significant savings that arereinvested in a microsurfacing programme, raising the condition of footways across theborough.

The success of the SLAs gave councillors the confidence to extend the five-year StreetCare contract, which started in 2004, to September 2014.

Our peopleOur primary duty as a responsible employer is to protect and promote the safetyof our people. Of equal importance is our role as an equal opportunities employerwith a strong focus on social responsibility, attracting and retaining talentedemployees, and investing in them to sustain the success of the business. HUMAN RESOURCESDespite the economic downturn, a strategic decision was made to maintain a trainingbudget of £750,000 in 2010. The level of training we give our employees exceeds theindustry average. This reflects our belief that the skills and commitment of our peoplewill determine the future success of Eurovia Group. We also recognise that investment inthe development of employees, as well as their conditions and wellbeing, is essential toattract and retain the high-calibre people we need to serve our customers.

Training & developmentWe provide a wide range of in-house and external training opportunities to help peopleat all levels to build competence and achieve their potential. In 2010 we delivered47,000 hours of training. On average employees undergo 4-5 days’ training per year.This ranges from induction courses and core technical and site-based skills, as well asschemes for apprentices and graduates, through to professional qualifications and ourThrough Career Development programme.

This programme is accredited by the Institute of Leadership and Management (ILM).Managers are encouraged to work towards its Certificate in Management, with 20enrolling in 2010.

We are also registered to LANTRA, and provide in-house training on various nationalhighways sector schemes. Our aim is to achieve registration of all relevant employeesunder the Construction Skills Certification Scheme. By the year end 70% of ouroperational people had been registered.

More than half our workforce have at least one NVQ, some have more, and a further20% are working towards one.

Section

4CR Report 2010

16

“Corporate responsibility is about thesustainability of our business as well as oursociety. It is not therefore something “pinkand fluffy” that is just nice to have; it is abusiness imperative. We need to focus on theenvironment, our social responsibility, and thesocially excluded people in the communities inwhich we work. We know from our employeefeedback that having a positive impact inthese areas can improve our ability to recruitand retain the right people for our business.”Kristine Pollock, Human Resources Director, Eurovia Group

17

Our training team has developed a range of bespoke courses, includingHighways to Excellence – a one-day workshop for employees,subcontractors and clients to discuss how we can all work together as ateam to deal positively with road users and residents – and Unlockingour Sales Potential, which instructs contract staff in thesustainability and cost-benefits of innovative products.

Our Dealing with the Public course explains the importance ofboth verbal and non-verbal communication, and its effects onthe perceptions of road users and residents. We closelymonitor trainees’ satisfaction with courses and review thetraining needs of the individual and the business at Groupand Divisional level.

A current training priority – apart from our ongoing healthand safety training (see below) – is to develop our site-levelmanagers. We are planning a special programme for siteagents and supervisors leading to NVQs Level 3 & 4, amanagement diploma, and either IEng or EngTechqualifications depending on the role carried out by theemployee and the NVQ level they achieve.

HR challengesFrom a human resources standpoint, the economic climateposes particular challenges. Our managers must strive tostreamline operations, reduce overheads, and match staffresources to contractual demands. In 2010 our total headcountfell to just over 1,800, reflecting the end of our Lincolnshire termservices contract, other smaller transfers under the TUPEregulations and some redundancies.

At the same time we and our industry struggle to attract the newrecruits who will take over as our workers retire. A tenth of ouremployees are due to leave us within the next five years. We are facing upto the threat of skills shortages, which are more acute in some regions, in avariety of ways. The following are just some examples of initiatives inprogress.

£37,140donated to goodcauses in 2010

18

CR Report 2010

Young peopleOur in-house schemes for traininggraduates and school-leavers have wonseveral industry awards. Now in its 10thyear, our graduate programme hasdeveloped a new generation of upcomingmanagers across the Group. More than adozen are in middle-manager roles.

This programme has not been affectedby the economic downturn. It currentlyemploys 12 graduates, 11 of whom werescholarship students. There are 14university students now on the scholarshipscheme, which provides sponsorshipduring their studies and work experienceplacements during holidays.

Our graduates and students gain broad-based experience and support from

committed managers across the Groupwho act as mentors. We also have stronglinks with a number of universities andprofessional bodies, such as the Institutionof Civil Engineers, which has awardedprofessional qualifications to graduates onour programme. We are represented onthe advisory board of the University ofSurrey.

Our apprenticeship scheme waslaunched in 2008. The first cohortcompleted the programme in 2010. Wehave small groups of apprentices in theirfirst and second years, and sustained ourrecruitment of apprentices through thedownturn. This is a two-year programmethat combines on-site instruction andexperience with classroom learning at

Askham Bryan Collegein York. In 2011 we willdevelop a secondprogramme in south-west England with ourjoint venture company,South West Highways.

We employ oneapprentice for every£20 million turnover.This does not includeapprentices employedby our joint venturecompanies or the 38trainees who in March201 completed ourTrainee HighwayWorkers scheme, which

targets young people not in education,employment or training (the Government’shigh-priority NEETs).

People focussedHaving earned our Investors in Peoplestatus, over recent years we have steadilyexpanded our people-centred policies.The aim is to make Eurovia Group a betterplace to work, and to support our peoplein a variety of ways.

We offer an attractive benefits packageto all employees, including child carevouchers, flexible working and savingsschemes. During the year we put togethera discount package for retail goods,holidays and many other items, which welaunched in time for Christmas 2010. OurEmployee Assistance Programme providesfree and confidential advice on a widerange of matters from personal finance tofamily concerns. This has been expandedto cover medical matters, general healthand wellbeing. A new programme ofmonthly ‘toolbox talks’ on wellbeingthemes such as tinnitus, smoking, and sunawareness is now running.

These measures are also designed tohelp us retain and attract people. Wemade it easier for potential applicants in2010 with improvements to our dedicatedpeople website. They can now register foremail and SMS alerts about job vacancies,and apply online.

Section

4CASE STUDY Managing site safetyEffective leadership is critical when managing safety. Its importance is reflected in a new course launched inApril 2010 for all employees with day-to-day responsibility for the safety of others. The one-day course is de-signed to give delegates, who range from chargehands to senior managers, a clear understanding of how theyshould manage safety on site. A purpose-made training DVD helps put across the course’s key messages in arealistic and easy-to-understand way.

Delegates learn techniques to motivate colleagues as well as how to plan in detail for safety managementand to monitor performance at each stage of a project, along with the corrective action they may need to take.

The course includes an overview of the legal framework for safety management and incident investigation.Delegates then learn how to use the Group’s Incident Investigation Toolkit to produce comprehensive reportsand recommendations for preventative action.

By the year’s end the Health, Safety & Environment Department had delivered the course to 130 delegates insix divisions, and it was extended to the rest of the Group in spring 2011.

19

Employee involvementWe believe our commitment to corporate responsibilityand employee involvement enhances our appeal.Eurovia employees can take paid leave to undertakevoluntary work on charitable projects, and we matchfundraising (see Our communities, page 29).

We track our employees’ opinions through regularsurveys. Employees also help shape our HR and otherpolicies through their involvement in events, including‘round table’ meetings with the Group ManagingDirector, safety tours by senior managers, suggestionschemes, our Innovation Awards, Lean workshops, and‘team of the month’ awards.

Ringway Buddies is an initiative aimed at helpingpeople transferring to our term services business underTUPE. It was recommended by a project improvementteam tasked with improving the contract mobilisationprocess. Now a Ringway ‘buddy’ supports each newemployee during transfer and the early stages of thecontract. It is proving a particularly effective way ofintroducing people to new processes and ways ofworking.

BenchmarkingWe monitor our HR progress and benchmark throughthe Highway Term Maintenance Association. In 2010 weperformed better than average on sickness absence and

training input, though our voluntary labour turnover ratewas slightly higher.

The HTMA people working group is striving topromote our industry as a career choice. During the yearthis group, which is chaired by our Group HR Director,also improved HTMA approaches on drug and alcoholtesting, adherence to working time legislation, and theuse of mobile phones at work.

We also contribute directly through our SchoolsPartnership, a programme of workshops for pupils runby Eurovia graduates, and through other initiatives (see Our communities, page 30).

Our People Strategy Group, which was set up in 2009,directs all people-related strategies and decision-making. It meets every other month, is chaired by ourGroup HR Director and attended by all senior managers.

Diverse opportunitiesWe are committed to providing equal opportunities forall and want to reflect the communities we serve. It isalso in the best interests of the business that we drawfrom as big a pool of human talent as possible.

The Group promotes diversity in the workforce. Wehave clear policies on equality, diversity anddiscrimination and monitor performance. Following anaudit of over 100 VINCI companies, our Group wascommended for best practice in several areas, includinghow we combat discrimination, support employment forethnic minorities, and foster career development forwomen.

We support the industry’s efforts to increase therepresentation of women in the workforce. Following onfrom 2009, when 38 of our female employees achievedNVQs on a women-specific programme, a further 12gained similar qualifications early in 2010.

Our scheme for training and employing young ex-

offenders, which won a VINCI Global Innovation Awardin 2010, continues to draw support from our clients too.Where possible, we work with local prisons to select andtrain potential recruits (see Our communities, page 30).

HEALTH & SAFETYOver the last decade we have made huge strides insafety management and performance. That progress hasbeen sustained in recent years by a strong safety culturedeveloped and reinforced through behavioural training.

Health and safety is a line management responsibilityand a top priority. Our Group Managing Director chairsthe Health, Safety & Environmental Steering Committeethat drives policy in this area. It is based on robustprocedures integrated within our management system,The Way We Work (accredited to OHSAS 18001).

Our approach to health and safety is also underpinnedby regular behavioural auditing, reporting and analysisof near misses, investigation of incidents, and acomprehensive safety training programme.

Safety trainingOur two-day Managing Safety course, which is externallyaccredited by the Royal Society for the Prevention ofAccidents, is delivered in-house and available to allemployees ‘who put others to work’. We have run 74 ofthese courses over the past nine years with 18 delegatesattending each course.

In 2010 we introduced a new Worksite Safety course.It was developed in-house, along with a supportingDVD. One module covers the use of our IncidentInvestigation Toolkit, which was also developed furtherduring the year. It will provide greater insights into theroot causes of safety lapses and how to prevent them.

Handover: donating £1 per near miss in 2010/11 raisedanother £2,400-plus for road safety charity Brake

20

CR Report 2010

Safety performanceFollowing an improving trend sustainedover many years, 2010 saw a reversal insome key performance indicators.

• The overall measure of incidentsresulting in time off work, the lost timeincident frequency rate (LTIFR), rose to5.55 (per million person-hours) from 5.32.This is an increase of over 4%.

• The frequency of more serious incidents,reportable under the RIDDOR regulations,was also higher at 0.42 (per 100,000 hoursworked) – a 5% rise.

• There was a drop in the number of nearmisses reported at 1,468. The figure fellback by less than 10% from the recordlevels set in the previous two years.

• The falling trend for service strikesaccelerated with a near-30% drop to 161.

The continuing reduction in servicestrikes is welcome, and reflects ourongoing investment in training, cable andpipe detection, and other initiatives topromote safe digging practices.

We continue to encourage near missreporting by donating £1 to the roadsafety charity BRAKE for each report filed.Despite the drop in 2010, which is relatedto the reduction in the size of theworkforce, reporting is at a healthy level inkeeping with the proactive safety culturewe are promoting.

Our commitment to driving down

incident rates is enshrined in our updatedFive Year Plan. We are determined to getback on track by more than halving thelost-time rate to 2.5, and have reaffirmedour goal of a zero RIDDOR rate (see Ourobjectives, page 37). Each division hasbeen tasked to analyse all its incidents in2010, identify patterns and setappropriate objectives. Additional actionsare being agreed following a health andsafety ‘climate survey’.

Reality checkThis comprehensive survey of employeeviews has provided reassurance that theGroup’s safety culture remains strong,while identifying areas for improvement.The climate survey, completed at the endof the year, saw contributions from 90% ofour employees. Over two thirds wereoperatives. The results showed:

• The vast majority of employees are clear

about their health and safetyresponsibilities – 92% strongly agreed that‘I understand the safety rules for my job’;

• Safety is seen as a top priority by most –80% strongly agreed that ‘managementclearly considers the safety of employeesof great importance’;

• Communication on health and safetymatters is viewed very positively – nearlythree in four employees (72%) stronglyagreed that ‘we have an open door policyon safety issues’.

This ‘reality check’ has confirmed thatwe do have a culture of challenging andsupporting each other to improve oursafety performance. But its findings,analysed by job type and division, alsoshow areas for improvement. Small taskgroups are reporting back with prioritiesand action plans for their divisions to beimplemented in the coming months.

Acting on ideasSafety-enhancing innovationsimplemented in 2010 include:

• An improved Euromark heater box formoulds that reduces the risk of fire orinjury to roadmarking operatives;

• A redesigned bitumen boiler for sites,with similar safety and financial benefits;

• An electronic system that allows bettermanagement of workers’ PPE (personalprotective equipment and clothing).

• A centralised system speeding upaccess to COSHH assessments ofmaterials;

• Fitting gully tankers with a bluedirectional arrow sign and ‘wig wag’ LEDlights to increase visibility to drivers;

• A depot ‘branding’ approach toimprove signing of walkways, no-go areasand other potential hazards;

• An improved induction process specificto each site that ensures all staff haverelevant safety and emergency information.

Section

4

21

Involving employees Employees are involved in health andsafety matters in a variety of other ways,including toolbox talks, safety tours of sitesby senior managers, contributions to ourannual safety calendar, our parentcompany’s International Safety Day, and anannual safety briefing.

Sustaining interest is an ongoingchallenge. During the year we refreshedour managerial health and safety meetingsby opening them to employees at alllevels. This new workers’ forum allowspeople to take ownership of the issues thataffect them, and we expect this willreinforce and reinvigorate our safetyculture.

We also gained a Gold Medal Award forOccupational Health and Safety – our ninthsuccessive award – from the Royal Societyfor the Prevention of Accidents.

Employees submitted more entries forour Innovation Award for health, safety andthe environment than for any othercategory. A wide range of innovativemeasures have been implemented (seebox), along with others designed toenhance the safety of the public (see Ourcommunities, page 30).

Other developmentsThe way we provide specialist support toour operations was reorganised bycombining our specialist advisors on healthand safety with their counterparts onenvironmental matters in a single team.

This multi-skilling has allowed us toincrease our efficiency while broadeningthe support provided to the divisions.

Our Vigiroute programme formanaging the risks our people facewhile driving on the roads continues toadvance. We use data on crashes toevaluate in a systematic way the risk forevery driver of a commercial vehicle orcompany car. They then receivetargeted training and support. From2011 this involves an escalation process.After a first crash, the driver receivesclassroom training. In-vehicle training isprovided following a second incident.We are also participating in the Drive forLife campaign (see Our environment,page 25).

This work to manage road risk during2010 was recognised by RoSPA, whichpresented us with its Gold Award.

Our Vigiroute initiative was also highlycommended by the campaigning roadsafety charity Brake. The Group'sHealth, Safety & Environment Manager,David Campbell, was a runner-up forBrake's annual Road Risk Manager ofthe Year Award.

Another transport initiative ispromoting the safety of road users,particularly cyclists. Proximity indicatorsthat detect cyclists on the blind side oftrucks were trialled by Eurovia Roadstonein 2010. They are now being fitted to theentire fleet based at the Dagenham plant(see Our communities, page 31).

0

6

12

8

10

2

4

2004 2007 2008 2009 2010

Lost

-tim

e in

cide

nt fr

eque

ncy

2005 20060

0.4

0.2

0.6

0.8

1.2

1.0 Reportable incident frequency

LTIFR(per 1 million hours worked by employees and supply chain partners)

RIDDOR(per 100,000 hoursworked by employees)

0

200

400

300

100

0

1000

2000

1500

500

2005 2008 2009 2010

Nea

r m

isses

2006 2007

Number of incidents of damage to utility services

Number of near-missH&S incidents

Service strikes

Near misses& Servicestrikes

Incidentrates

Our environmentEurovia Group manages its environmental impacts responsibly and we are committedto action that will curb the carbon emissions that contribute to climate change.

Environmental managementResponsibility for minimising environmental impacts is embedded in our day-to-day activity through TheWay We Work, our integrated management system. It is accredited to the appropriate internationalstandard (ISO 14001). We keep the system under review. Its processes for monitoring sustainability, inparticular, are being developed.

We are improving the way we collect our environmental data – especially energy consumption –following an audit conducted by KPMG on behalf of VINCI. Having previously used an external serviceprovider, we brought the data collection role back in-house and are making other improvements. Thesechanges, including checking carbon emissions data against information from our IMS, make ourenvironmental reporting more robust.

No enforcement action or notices were issued by environmental regulators against our Group duringthe year. The number of environmental incidents was stable at 27 for the year. Having simplified thereporting procedure – in a single, simple form that captures information on safety incidents as well – wehave confidence in the figures and remain committed to minimising their number and impact.

All our depots and appropriate vehicles are equipped with spill kits to prevent contamination ofgroundwater and water courses, and our personnel are trained in their use. The risks of environmentalpollution are also made clear in new ‘gang packs’ providing guidance for crews working on the highway.

TrainingFrom induction through regular ‘toolbox talks’, the training we provide reinforces employees’understanding of our duty of care, typical environmental risks, and emergency procedures. We deliveredmore than 1,100 hours of environmental training in 2010. Although considerable, this is a reduction on2009 when mobilisation for new contracts saw a sharp rise in environmental training.

We updated our training guides to reflect the importance of biodiversity in 2010 and are preparing a newcourse aimed at both managers and operatives. It will use an environmental training DVD we aredeveloping with the Highway Term Maintenance Association.

CR Report 2010

22

“We aim to lead the way in the roadmarkingbusiness by reducing our carbon footprint. Partof my role is to get people engaged in this andother initiatives on corporate reponsibility. I find people want to contribute when theyunderstand the benefits to the business and theenvironment. CR is also about innovating andwe are working closely with our supply chainto develop sustainable products. Our clientsshare our commitment to CR and they arescrutinising our approach more, so it’s essentialtoo for securing work in the future.”Kevin Ward, Member of the Low Carbon Steering Committee

Section

5

23

Climate changeOur stakeholders – from employees and shareholders to customers andgovernment – expect us to curb the emissions that are driving climatechange. Our pursuit of efficiency and continuous businessimprovement only reinforces this pressure for effective carbonmanagement.

As promised in our 2009 report, our Low Carbon SteeringCommittee developed a carbon strategy for 2011-2014.Entitled Committed to cutting carbon, it reaffirms our previouspolicy commitment to a 5% year-on-year reduction from theGroup’s 2008 baseline figure and maps out how we canachieve this (see below.).

Cutting carbonEurovia Group is committed to cutting its own emissions atsource primarily by investing in improving the efficiency ofoperations. We believe this is better for the long-term future ofour business than offsetting emissions from our activities bybuying carbon credits, and it will add value for our customers.We will work towards a low-carbon economy by:• Measuring and managing our greenhouse gas emissions• Investing in carbon reduction improvements and technology• Developing low-carbon products and services• Influencing behavioural change

To achieve our target of a 5% year-on-year reduction inemissions from our 2008 baseline, we must first focus on our keygreenhouse gas emitters: asphalt production and use, fleet andplant use, and depots and offices. By reviewing our activities weare programming our works more effectively with the aid of ournewly deployed management information system eServe (seeOur customers, page 15) and working smarter to benefit theenvironment and our customers. And through innovation we canalso develop low-carbon products and services that will reducethe carbon footprint of our transport infrastructure.

Our strategy also recognises the need to adapt to theconsequences of climate change. We must tailor our servicesand products to deal with increased flooding, greaterunpredictability in the weather, and operating in droughtconditions, for example.

7%rise in the Group,sexcellence rating

in 2010

24

CR Report 2010

Carbon tradingTrading of emissions is mandatory underthe Carbon Reduction Commitment(CRC). It forms a crucial part of thenational strategy to reduce carbonemissions by 80% from 1990 levels by2050.

The Coalition government put back theauction-based scheme’s introduction by ayear to 2012, and removed its revenuerecycling element. This carbon tax willadd directly to the costs of ouroperations and supply chain, particularlyfor energy-intensive products such asasphalt. Many of our clients are alsosubject to the CRC, which will furthersqueeze local authority budgets forhighway maintenance and capitalprojects.

The tax is another incentive to reduceour carbon footprint by investing inenergy efficiency, but it also affordsfurther opportunities for providers ofalternative low-carbon solutions, whichwe must seize.

Energy performanceISO 16001 represents the latest bestpractice in energy management andbuilds on existing national standards andinitiatives. During 2011 we intend toreview the standard’s requirements andassess the benefits of implementing anenergy management system following itsguidelines.

Another option under consideration ismicro-generation, which could reduceour carbon footprint and reliance onfossil fuels. We will investigate thefeasibility of trialling energy micro-generation technology within depotssupporting long-term contracts.

Measuring performanceOur carbon performance is coming undergreater scrutiny as part of the tenderingprocess. Bids for PFI contracts mustpredict carbon emissions over their 25-year life. This requires complexmodelling, taking account of whole-lifecosts and the carbon footprint ofdifferent design options. Carbonperformance is also factored intopayment mechanisms.

Over time, we expect this PFI approachto filter down to term services so thatproviders will be differentiated by theircarbon performance as well as cost-effectiveness. We are trialling bespoke‘carbon calculators’ that can be used onour term maintenance contracts and PFIcontracts to map their carbon impact.

Under the guidance of the Low CarbonSteering Committee, we are alsodeveloping a ‘carbon blueprint’ tool tohelp our management teams understandtheir carbon performance. This will becrucial to implementing carbon reductioninitiatives in our divisions, and is a keyobjective for the coming year.

CASE STUDY LED signs show the wayInnovative LED signs are showing highway authorities the way to cut carbon emissions,traffic disruption and costs. The 12-volt units manufactured by Eurosigns (UK) use up to60% less power than conventional illuminated signs. They also require less maintenancewith no need to replace fluorescent lights, or recycle mercury.

Trials show the units not only have a big impact but they also lend themselves toinnovative installations. In an early BEAR Scotland trial, an internally lit LED sign on theapproach to an accident-prone A68 crossroads performed extremely well in night-timeappraisals. An attitude survey in BEAR’s larger trial in Elgin showed a clear majority ofroad users preferred the level of pure white lighting provided by LED luminaires.

Dudley engineers praised their LED give-way sign for minimising light pollution andconcentrating drivers’ attention. In Solihull, an Eco-Powered LED sign avoided the needfor ducting across a busy sliproad to an A41 roundabout; installation of the cable-lesssign, which uses solar and wind power, saved a couple of weeks’ work and trafficmanagement. Extending mains electricity to signs around Heathrow Airport’s Terminal 1(pictured) would also have been highly disruptive and costly. Eurosigns devised a solutioninvolving solar charge controllers and a bespoke battery/panel carrier. Elsewhere at theairport, a slot-cut solution saved over £1,600 per unit in civil and traffic management costs.

Section

5

25

Carbon labellingOur work to provide customers withdefinitive carbon labels for highwaysolutions continues. This partnershipproject with the Carbon Trust has thebacking of our Client Forum. It willinitially enable the ‘cradle to gate’ carbonfootprinting of a standard hot-mix asphalt– as a ‘control’ or baseline reference –along with more sustainable options.These are: Eurovia’s warm asphaltTempera, plus the structural and storagegrade versions of Foambase, andGripfibre microsurfacing, which are cold-mix products (see overleaf).

Progress was delayed by difficulties inmicro-metering of fuel to the plant’sburner, which is essential to measureenergy usage reliably. Another issue tobe resolved is the CO2 value, if any, ofRAP (reclaimed asphalt pavement) whenused in a cold-mix product such asFoambase.

Transport emissionsOur transport and plant fleets areanother major emitter, but we haveimproved how we measure and monitorour fuel consumption and carbonemissions. Our Plant & Fleet departmentis also driving a series of initiatives toincrease fuel efficiency and reduce ourcarbon footprint.

Our Group makes extensive use ofMasternaut vehicle tracking technology

and Lean thinking in the way we planworks. We eliminate unnecessary mileageby optimising the routes of road repaircrews and winter gritting fleets.

In 2010 we took this further withMasternaut’s GreenerFleet managementtool, which promotes safer and greenerdriving. It tracks driver behaviour andvehicle use, linking this to vehicleemissions and fuel consumption.

On one contract, for example, we cutspending on fuel from £8,000 per monthto £3,500 through a combination ofimproved planning and driver behaviour,using our GreenerFleet and Lean worksplanning tools.

Before the year’s end we begantrialling the next step in fuelmanagement. Three of our vehicles werefitted with Masternaut’s CANbus – adriver and vehicle performance systemthat maps improvement in drivingtechniques using five parameters: harshbraking and acceleration, over-revving,speeding and excessive idling. An in-cabdisplay alerts drivers when these eventsoccur. Early results from the trial showedthat drivers reduced fuel use andemissions by 3.5%. It is hoped thataltering driving styles will also reduceaccidents and vehicle wear and tear.

Other drivers will have an additionalincentive to improve their driving habitsas part of the Drive for Life campaign in2011. Supported by Masternaut andRoyal Sun Alliance, this will include a

Eurovia Group competition for the bestcommercial vehicle driver judged bysafety and environmental performance.There are separate categories for fuel-efficient driving by a young driver,commuting by alternative modes oftransport, and driving knowledge. Theinitiative is part of our Vigirouteprogramme to manage road risk (see Ourpeople, page 21).

Alternative fuelsThe truck fleet is equipped with the latestEuro 5 engines and we use EN590 dieselcontaining 5% biofuel. The Group’s Euro4 vans are progressively being replacedby models conforming to the higheremission standard. Our company carpolicy now promotes fuel-efficientchoices, including two hybrid models.

The trial of a hydrogen cell fitted totrucks on our Kent and London contractsyielded disappointing results. The team isinvestigating an alternative hydrogengenerator that could be retrofitted todiesel vehicles or plant for a new trial.This generator is designed to ensure acleaner burn of the fuel, and promises toreduce carbon and other emissions by upto 40%, while boosting power output andfuel economy.

Resource useMaking best use of the earth’s finiteresources makes increasing sense from

the perspective of the business as well assustainability.

We seek to minimise waste throughSite Waste Management Plans, and workwith waste specialist Reconomy Solutionsto optimise recycling and re-use.

Our network of waste recycling centresprocess highway waste arising from ourhighway contracts. More than 750,000twere generated in 2010 and weincreased the proportion diverted fromlandfill to more than 92%. The materialsinvolved range from topsoil, roadplanings and gully waste to wood,plastics and green waste. Our targetremains to recover 95% of the total by2013.

We strive to put recovered highwaymaterials to productive use in Foambaseand other in-house products. We areworking with the Environment Agency toshow the scope for safely recyclinghazardous tar-bound materials (seebelow).

During 2010 our Gully Group has beenanalysing the environmental and financialimplications of traditional, reed bed andmechanical options for dealing with gullywaste and the associated wastewater.The study covered facilities we operateas well as new and emergingdevelopments. In 2011 the group aims todevelop operational guidance we canuse in conjunction with our clients to planand develop future facilities. It will ensurethat the whole-life costs and

26

CR Report 2010Section

5environmental benefits of gully waste treatment can befully considered in the decision-making process.

Water managementWater is another increasingly scarce resource that weneed to conserve as well as protect.

We have invested in facilities to recycle water usedfor washing down vehicles. On the highway our crewsfollow a standardised procedure to ensure that water isextracted from hydrants in accordance with therequirements of the local water authority.

We have also begun to ‘footprint’ the water we use inproducts as well as our operations. This is now astandard performance measure, and we intend toimprove our monitoring through 2011. PFI biddingrequirements and the particular vulnerability ofsouthern England to water scarcities are driving thiseffort. This could have potentially far-reaching implications for ourcontracts, water-intensive operations and procurement policy.

Sustainable productsOur parent Eurovia invests !7 million in research anddevelopment each year, 70% of which is dedicated to projectspromoting environmental sustainability. Much of our R&Dprogramme in the UK is also directed towards delivering moresustainable solutions for our customers.

Through Jean Lefebvre UK, which has unrivalled expertise intechnology transfer, we enjoy close links to the worldwidetechnical network of our parent companies, and in particular theEurovia SA research centre in Bordeaux, France.

We have introduced to the UK market a range of products thatbenefit the environment, often in several ways: by avoidingcarbon emissions, reducing waste or landfilling, re-using wastematerial, or consuming less virgin raw material.

Production of these products fluctuates depending on thebalance of highway authorities’ maintenance programmes andchanges in the number and mix of our contracts for term services,surfacing, and other major works. Demand for UL-M, our well-established thin surfacing, for example, was buoyant in 2010.However, the reluctant take-up of Tempera – the pioneeringenergy-saving warm asphalt – was highly disappointing (see Ourperformance, page 34).

We recognise that conservatism in the highways sector andbudget cuts are major impediments to the adoption of newsolutions. Our contract teams are being trained to communicatethe carbon- and cost-saving credentials of our range of innovativeproducts more effectively. We will build targets for our greenerproducts into our next business plan, while sustaining ourresearch and development programme.

This is progressing some notable projects that save on carbonand/or virgin materials:

High mark: Water self-sufficient, High Post depotin Wiltshire filters gully waste through straw

bales and a reed bed

27

• Ecolvia is a cold asphaltic concrete surface course produced specifically for low-trafficked carriageways and footways. Its design combines a special emulsion binderwith a pre-determined amount of recycled aggregates.

• We are developing cold-mix processes that exploit hydraulic, emulsion and foamed-bitumen binders.

• The use of Foambase, our proven cold-mix product that also utilises recycledmaterials, is being trialled as a solution for tar-bound materials, which areenvironmentally hazardous and expensive to landfill safely. We are also activelycontributing to the Environment Agency’s national working group on this major issuefor highway authorities.

• We are developing a new generation of illuminated signs in partnership with ZETA –a specialist in LED and solar technology. The new LED units will provide twice the lightfor much lower power consumption. Planned solar solutions will also help highwayauthorities reduce their energy costs and carbon footprint while enhancing road safety(see case study, page 24).

Think greenWe encourage ‘green’ thinking across the Group through our in-house InnovationAwards. The 2010 competition attracted a wide range of entries in the CarbonReduction category. The winner was a low-carbon Christmas campaign that remindedemployees of the small steps they could take to reduce their and our carbon footprint.

Other valuable ideas included a miles-per-defect measure in Worcestershire tomatch productivity with fuel efficiency; adapting microsurfacing technology to reducethe emissions and cost associated with conventional road patching; and usingrecycled plastic discs to control weeds around signposts, avoiding the need forstrimmers or chemicals.

The next generation of Eurovia Group managers are helping to shape our approachto carbon management. Following a presentation on environmental issues at aworkshop for our graduates, they developed a campaign to raise awareness andengage employees at all levels in carbon management. One proposal was to reflectthis priority in a new Group value of Efficiency in how we work and use energy. Thiswill be considered by the Low Carbon Steering Committee.

2006 2009

78.2%

90.4%

93.3%

90.9% 92.3%

20100

600

300

900

12000

Thou

sand

ton

nes

2007 2008

Waste landfilled Secondary materials*

* Secondary aggregates and materials sourced from external providers for use in Group products and schemes

Waste diverted(tonnage and percentage)

2004 2007 2008 2009 20100

60

30

90

150

120

Thou

sand

ton

nes

2005 2006

ULM UltraphoneFibrovia

2006 2009 20100

30

10

40

50

80

70

60Th

ousa

nd t

onne

s

2007 2008

Foambase GriptexGripfibre Tempera

20

Low-carbonproducts

Sustainableproducts

Waste management& recycling

Our communitiesGiven our corporate values and day-to-day duties, it is not surprising that a strongsense of community permeates our culture and workforce. Most of our front-line staffare local people serving their own communities. Public serviceResidents, neighbours and the travelling public are the ultimate customers of theservices we provide each day.

The vital role our people play is most apparent at times of emergency. Our wintermaintenance teams again garnered praise for their dedication and effectiveness insevere conditions. Our crews are also increasingly in action responding to local flooding.

We see at first hand the impact of what we do, both negative – delay, diversions anddisruption, and positive – such as road and footway defects repaired, smoother andsafer surfaces, clearer signing. Our people at all levels tell us that delivering thesebenefits – in safety, workmanship, quality of infrastructure, and the visual environment –is a major source of job satisfaction.

That is why we share with local authorities the view that the roads and streets wemaintain are not just links that are vital for moving people and goods, but also placeswhere people live and work.

Serving customers We plan all our works carefully to minimise disruption, consult locally and give advancenotice. The methods depend on the type of scheme and its scale, and include leaflets,public meetings, radio announcements, weblogs, and ‘surgeries’ for traders andshoppers.

A full-time Liaison Officer fills that role on major schemes in towns – as inLoughborough, for example, where we are building a new link road and improving thearea around the Leicestershire town’s train station as part of the Eastern Gatewayproject, under our Midlands Highways Alliance framework contract.

Section

6CR Report 2010

28

“Corporate responsibility means taking abalanced approach and considering thecommercial, social and environmental impactsfor all we do. Our commitment to communityengagement and volunteering benefits our staffat all levels. Feedback has shown that ourpeople gain and develop skills, get a greatdeal of satisfaction and want to work for abusiness with a sound approach to CR. Thisis particularly true for young people joiningus who see corporate responsibility as a keypart of everyday business.”

Mike Burnett, Chair of Ringway in the Community Committee

29

83%score achieved in

the national CR Index

In Wiltshire, our staff are embedded in villagecommunities as Parish Stewards, tending directly to theroad maintenance priorities of local councillors and people.

Reflecting our commitment to customer service, wepiloted a new course for front-line personnel in 2010. Itcoaches people on the verbal and non-verbalcommunication skills required when dealing with the public.The training has proved so popular and worthwhile that weare rolling it out Group-wide, starting with all newcontracts.

Mutual benefitsOur approach to corporate responsibility recognises thatinvesting in communities is not only worthwhile in itself, italso benefits the business. Staff morale, the company’simage and reputation, team-working and creativity are allboosted through community engagement.

In 2010 we widened the membership of our Ringway inthe Community Committee, which represents the entireGroup. It has redefined and communicated our policy to allour people. The policy gives priority to projects andcharities that reflect our activities by promoting theenvironment, education, health or employment.

All our employees are entitled to two days’ paid leave peryear to volunteer for a registered charity or communityproject that meets those criteria. We match funding raisedby our people for these good causes.

Through Business in the Community and other agencies,we provide volunteering opportunities. For several yearsour Group has supported the Calthorpe Project, acommunity garden and centre near King’s Cross in London.Its new facility for under-5s opened in spring 2010 in abuilding extension part-funded by a £45,000 grant from ourparent company’s charitable trust, The Vinci Foundation.

30

CR Report 2010

We also participate in the BiTC’snational Give and Gain Day. On July 9th2010 over 60 volunteers from EuroviaGroup companies around the countryworked on eight local projects. Colleaguesfrom client authorities and suppliers werealso involved (see opposite page).

Our people gained from the experience,judging by the volunteers’ responses to afollow-up survey. Everyone involved saidthey would be interested in volunteeringagain and would encourage colleagues tojoin them.

Nine out of 10 said the experienceexceeded their expectations. A similarnumber saw the Group’s support for theirproject as a reason to recommend workingfor Eurovia. And three out of four felt theskills and competency developed as avolunteer would be useful in their day job.

Building bridgesSustainability in our business and thewider community link in other ways.

Our award-winning work with young ex-prisoners provides training and jobs, and aroute out of social exclusion and re-offending. It also addresses skill shortagesand redresses the age profile of ourworkforce. Having run schemes withprisons in Kent, Reading, Lincoln andDartmoor, we are developing ourframework with a view to extending thisrecruitment programme to other areas anddisadvantaged groups.

The Eurovia Schools Partnershippromotes careers in construction whilesupporting students’ learning in mathsand science. Now in its seventh year, thescheme is run by graduates on our internal

development programme.They liaise with teachers andrun workshops in team-building exercises, such aspaving, surveying and settingout.

In 2010 the team ran eventsat St Crispins in Wokingham,Gravesend Grammar in Kent,and The Cornwallis Academyin Maidstone. Feedback fromstudents and teachers on thehands-on educational dayswas extremely positive.

Other employees have

become STEM Ambassadors. A RingwaySite Agent and Operative on the MidlandsHighways Alliance’s project inLoughborough are using their skills toinspire young pupils to learn aboutScience, Technology, Engineering andMaths.

Our involvement with schools rangesfrom sponsoring a ‘walking bus’, that getsprimary kids out of cars and safely to class,to hosting educational site visits.

Communication and safetyPeople at all levels buy in to the Group’smission to serve our communities, asentries to the 2010 Innovation Awardsshow. Many were designed to improvehow we communicate with residents androad users, and enhance their safety.

They included: a weblog to keepresidents abreast of roadworks progress;an LED message board fitted to the rearof maintenance vehicles to display theduration of works; a pass allowingresidents quick and easy access through aroad closure to their homes; an improvedpedestrian barrier to protect the public atroadworks; and a more robust supportsystem enabling flector-style bollards tobe re-set when knocked down.

Ringway Jacobs, and other Groupcompanies, have been closely involved inthe roll-out of London’s first blue SuperCycle Highways, part of Transport for

Section

6

CASE STUDY Giving and gaining

Eurovia volunteers put in over 500hours’ work on eight projects on July 9th2010 as part of the Group’s Give andGain Day. The community groups andamenities that benefited includedschools, woodland, wildlife trusts,residential areas and a care home.

The teams, drawn from Groupcontracts around the country, improvedaccess for the disabled at aPeterborough school and a forest parkin South Gloucestershire; erected a new entrance and created hibernacula forreptiles in a Wiltshire nature reserve; improved the gardens of a care home inBracknell; removed bracken and replaced fencing in a Surrey wildlife reserve;and cleaned up a rundown housing estate in Rotherham.

The team from Ringway Infrastructure Services North who spent the day at aschool for disabled children in Lincoln (pictured) typified the feedback fromemployees. “The small amount of time given by us made such a difference to

the school,” one volunteer remarked.The eight volunteers constructed afootway providing wheelchair access toa newly planted garden area, usingdifferent types and colours of blocksand slabs to provide added visualinterest for the autistic children atQueens Park School.

31

London’s strategy to quadruple bike use. Eurovia Specialist Treatmentsproduced and tested the specialist surfacings for TfL. Also with cyclists inmind, in 2010 Eurovia Roadstone trialled a safety system designed toaddress one of the greatest hazards for cyclists in towns – heavy vehiclesturning left.

Fitted to a truck, this uses nearside sensors and cameras and an in-cabdisplay to alert drivers to a potential hazard. When they are activated andthe driver indicates left, an audible warning device also announces:‘Caution! Truck turning left’.

Following the two-truck trial, the system is being installed on the rest ofthe 38-strong fleet at Dagenham, which serves London, Kent, Essex andSuffolk.

Other stakeholdersOur industry and our other stakeholders in local and national government,professional bodies and technical groups share a sense of community too.

Eurovia Group is actively engaged with a variety of organisations thatpromote and influence our sector and its interests. We contributed toseveral working groups of the Highway Maintenance Term Association onimportant issues. These include: working with surveyors and clients todevelop standard price adjustment indices for term contracts; safetybenchmarking; and sharing environmental best practice. Our people alsocurrently chair the Road Surface Treatments Association and the RoadSafety Markings Association.

As a member of the Chartered Institution of Highways &Transportation’s Corporate Partner Scheme, we work together to promoteexcellence in the sector. We are represented on the CIHT’s ExecutiveBoard and Council, and through the institution, seek to inform andengage with government policy-makers.

Our senior managers also engage directly with key clients such as theHighways Agency and local authority leaders to better understand theirconcerns and pressures and how we can apply and extend ourcapabilities. This dialogue will be particularly important in the economicclimate projected over the medium term.

33

2010 TREND COMMENTARY

296.5 !!!!!

392.5 !!!!!

1,813 !!!!! Reduction due to end of Lincolnshire contract and some redundancies.

93% !!!!!

97% !!!!!

100% !!!!!

5.55 !!!!!

0.42 !!!!!

1,468 !!!!! Reduction from record reporting level in 2009 attributable to decrease in workforce. On a per-capita basis, reporting continued to rise.

161 !!!!! Divisional targets backed up by safe-dig guidelines, dedicated CAT detection teams, and awareness-raising through safety briefings and toolbox talks continue to drive down incidents.

27 !!!!! Stable under consistent reporting procedure. Incidents are being captured and controlled. No actionable incidents during year.

1,166 !!!!! Total fluctuates from year to year depending on new contracts/acquisitions. Core refresher training and other programmes delivered as scheduled.

757,574 !!!!! Reduction in number of major schemes completed resulted in less waste being generated. Consistent reporting systems providing more reliable results.

58,263 !!!!! Reflects reduction in activity and changing mix of scheme and routine maintenance works, but more significantly, better segregation and handling of waste through site waste management planning.

699,311 !!!!! Slight increase achieved despite downturn in operations.

92.3 !!!!! Reversed fall in 2009 and made good progress towards 2012 target of 95%.

1,527,565 !!!!!

137,326 !!!!!

4,057,533 !!!!! This is a new indicator based on provisional data. Procedures are being put in place to improve the measurement and monitoring of water usage.

New reporting systems resulting in sharp changes as the reliability of the data improves.

Improved sourcing of secondary aggregates and materials has been sustained and the reporting process has also been strengthened.

Changes reflect variarions in business as contracts run by registered business units ended and new operations are prepared for certification. (Figures are rounded to nearest whole number.)

The results from the re-investigation of incidents at divisional level and a safety climate survey are being analysed and will be used to set objectives to drive incident rates back onto a downward trend.

End of a major contract, reductions in client spend and competitive pricing depressed turnover.

Our performanceSection

7CR Report 2010

32

EUROVIA GROUP INDICATOR DESCRIPTION 2004 2005 2006 2007 2008 2009 2010

Turnover (£ million) Excludes joint ventures. 2010 figure is provisional, unaudited 299 333 324 332.3 343.2 332.6

Turnover (£ million) Includes joint ventures. 2010 figure is provisional, unaudited 406.5 425.6 431.9 392.5

Employees Number of direct full/part-time employees at year-end 2217 2,584 2,450 2,666 2,643 2,507 1,813

IMS registration Proportion of Group business units where The Way We Work integrated management system is registered to relevant standards

ISO 14001 Standard for environmental management 20% 30% 61% 83% 87% 95% 93%

OHSAS 18001 Standard for management of health & safety 4% 19% 61% 78% 83% 84% 97%

ISO 19001 Standard for quality management 48% 59% 89% 96% 96% 100% 100%

Health & safetyLTIFR Lost-time incident frequency rate per million person-hours

worked by Group and supply chain partner employees 11.1 7.85 9.33 7.61 6.73 5.32 5.5RIDDOR Incidents notifiable under RIDDOR regulations

per 100,000 hours worked by Group employees 0.97 0.92 0.77 0.56 0.52 0.40 0.42

Near misses Number of near-miss H&S incidents reported by employees 15 12 66 422 1,603 1,615 1,4

Service strikes Number of incidents of damage to utility services 194 263 318 378 310 228 161

Environmental

Environmental incidents Number of environmental incidents reported by employees 5 3 16 19 43 28 27

Environmental training (hours) Hours of in-house training delivered on environmental matters 862 625 516 2,381 1,267 2,201 1,

Total waste generated Materials arising from all highways-related and other core activities 249,276 517,867 1,157,609 768,178 757,

Waste landfilled Tonnes of waste sent to landfill for disposal 54,449 49,620 77,839 69,962 58,263Total waste diverted Tonnes of waste materials diverted from landfill

for re-use or recycling in-house (eg, in Foambase) 194,827 468,247 1,079,770 698,215 699,311

% waste diverted Proportion of total waste arising diverted for re-use/recycling 78.2 90.4 93.3 90.9 92.3Virgin materials used Total tonnage of materials used from virgin sources

such as primary aggregates 31,600 203,872 255,813 759,354 1,527,565Recycled materials used Total tonnage of secondary materials procured

in addition to those recycled in-house 59,544 66,994 66,995 107,050 137,326Water consumption Estimated total usage of water (litres) 4

Negative trend

Positive trend

No or little change/ new parameter

Cannot be coded as reflectsnature of business/tendersucccess

Project2_Layout 1 03/01/2012 10:05 Page 1

2010 TREND COMMENTARY

65,020 !!!!!

262 !!!!!

53,212 !!!!!

8,175 !!!!! Yearly variations reflect the specifications chosen by clients; 2010 level is a function of the reduction in turnover.

0 !!!!! Disappointing take-up of low-carbon solution since 2009 launch.

16,807 !!!!!

31,720 !!!!!

190 !!!!! Highway authority budget cuts and financial uncertainty have hampered take-up despite widespread recognition of the range's value following successful trials.

New range being developed will boost performance, whole-life and low-carbon benefits further.

36,751 !!!!!

124.0 !!!!!

84,623 !!!!! The change is a function of the reduced number of employees in 2010.

14,656 !!!!!

1,986 !!!!!

38.6 !!!!!

116 !!!!! Reflects reduction in workforce, but under-reporting is the main factor. The figure is for head office staff only. Arrangements in place to improve record-keeping in divisions.

14,187 !!!!!

23,771 !!!!!

452.0 !!!!!

Previous years' figures have been re-calculated to correct anomalies in conversions from square metres to tonnes. Yearly variations reflect market conditions and other factors, as per sustainable products (see above).

Yearly variations reflect the specifications chosen by clients; 2010 level is a function of the reduction in turnover.

Reduction in scale of operations more than offset by impact of severe winter, resulting in increased gritting runs, lower fuel efficiency, and higher energy consumption in asphalt production. Switch to CO2e measure of all greenhouse gas emissions (with higher conversion factor for gas oil) also increased totals compared with 2007 and 2008. Accuracy of reporting continues to improve.

Reflects reduction in workforce, but under-reporting is the main factor. Arrangements in place to improve record-keeping in divisions. Excludes £2,432 donation to road safety charity Brake made after year-end. Overall level of contributions maintained despite loss of personnel and tough trading conditions. Community Committee is encouraging managers and employees at all levels to get involved in more activities in 2011.

Return to upward trend following first-time assessments of several business units in 2009 and ongoing programme of improvements across Group

Reporting procedures continued to improve in 2010

A

By > 10% 7% increase represents rapid progress. A higher target has been set for 2013 (see page 37)

M

P

A

By > 10% 7% increase represents rapid progress. A higher target has been set for 2013 (see page 37)

M

P

35

OBJECTIVE TARGET PROGRESSOur BusinessAchieve pre-tax profit – by 2013 5% Pressure on margins and turnover depressed performance during year but cost savings and new orders

left Group in strong commercial position at year-end Achieve return on capital employed – by 2013 15%Reduce days sales outstanding – by 2013 To < 55 days Target not achieved in 2010, but Group is on course to hit revised target of < 60 days due to fast closeIncrease Group average EFQM score (from 2009 baseline) by 2013 By > 10% 7% increase represents rapid progress. A higher target has been set for 2013 (see page 37)Maintain accreditation of The Way We Work management system and register new contracts and acquisitions to ISO 9001, ISO 14001 and OHSAS 18001 within 18 months

Our PeopleReduce lost-time incident frequency rate (LITFR) in 2010 To < 2.5Eliminate incidents notifiable under the Reporting of Injuries and Dangerous Diseases & Occurrences Regulations (RIDDOR) in 2010 Zero

Decrease voluntary labour turnover by 2013 To 15%Provide placements or employment across Group to disadvantaged persons in 2010 50% of units

Our EnvironmentIncrease the proportion of waste we divert from landfill – by 2012 To > 95% 92.3% achieved, representing good progress towards targetReduce the Group carbon footprint year on year (based on parent company Eurovia SA calculated Scope 1 & 2 performance for 2008) By 5%

Roll out carbon strategy by end 2010 All units Developed in 2010 and launched early 2011, the strategy is now being promoted internally and to clientsReduce fuel consumption of each business unit by 2013 By 10% Systems for recording and reporting fuel use are being reviewed and will be standardised

to provide more robust data Group-wide

Our CommunitiesIncrease total number of volunteering days in 2010 By 10% 21% decrease largely due to under-reporting in divisions.

Reduction in workforce lowered base level of volunteering. Renewed commitment to target in 2011Increase the value of money and support in kind raised for community and charitable causes across each business unit in 2010 By 10%Join the BITC CR index and achieve a high benchmark score for the Group by 2010 > 75%

36

CR targets Progress in 2010

Accreditation levels sustained and Group registration achieved, increasing consistency across business units as divisional certification integrated and transferred by BSI

All businessunits

Steady long-term decline in both indicators reversed for first time. Underlying factors analysed through asafety climate survey and divisional-level investigations. Each division setting priorities for action to returnrates to downward trend

This target was achieved with an initial 75% (Bronze) score for 2009, followed by strong improvement in 2010 to 83% and Silver status

4.5% increase in giving fell short of target due to tough trading conditions and reduction in personnel. Re-committed to target in 2011

Pressure on margins and turnover depressed performance during year but cost savings and new ordersleft Group in strong commercial position at year-end

Yearly comparisons distorted by end of major contracts and reduction in workload. Targets have been reformulated and revised targets set for 2010-2013 (see page 37)

Performance against this measure has not yet stabilised due to ongoing changes and improvements inreporting. Severe winter season and economic climate are also factors. LCSC facing up to challenge todeliver carbon reduction across business

34

Section

7EUROVIA GROUP INDICATOR DESCRIPTION 2004 2005 2006 2007 2008 2009 2010

Sustainable products Products designed with particular environmental benefits

ULM Thin surfacing with reduced aggregate content (tonnes) 69,999 142,004 134,654 66,263 95,104 55,305 65,020

Ultraphone Thin surfacing with additional noise reduction benefits (tonnes) 293 1,073 458 262

Fibrovia Thin surfacing with additional recycled content (tonnes) 5,230 9,632 32,170 80,015 53

Low-carbon products Sustainable products with a significant carbon-saving benefit

Foambase Cold asphalt with high recycled content (tonnes) 10,000 25,941 29,000 13,475 8,1

Tempera Warm asphalt product providing energy savings (tonnes) 1,851 0

Gripfibre High-performance microsurfacing product using cold

technology with modified polymers and fibres (tonnes) 14,973 15,190 11,887 17,296 16,807

Griptex Standard microsurfacing product using cold technology (tonnes) 21,372 22,100 23,400 26,156 31,720

LED signs LED-illuminated signs using low voltage or renewable power (units) 10 250 190

Climate changeScope 1&2 carbon footprint Carbon footprint calculated for the Group (re-stated to exclude

joint ventures) as equivalent tonnes of carbon dioxide for all greenhouse gas emissions (CO2e) in 2009 and 2010; CO2

(carbon dioxide emissions only) in 2007 and 2008 32,033 31,401 33,035 36,751Emission intensity Tonnes of carbon dioxide equivalent greenhouse gas emissions

per £ million turnover (excluding joint ventures) 96.4 91.5 99.3 124.0

Car miles saved by VC/TC Car miles avoided through video/teleconferencing 2,960 73,164 111,403 96,563 86,015 92,166 84,623

Flight miles saved by VC/TC Flight miles avoided through video/teleconferencing 2,562 2,612 3,444 14,656

Hours saved by VC/TC Travel time avoided through video/teleconferencing 1,257 1,981 1,944 2,025 1,Tonnes of CO2e saved by VC/TC Tonnes of carbon dioxide equivalent greenhouse gas

emissions avoided through video/teleconferencing 0.8 18.6 28.3 38.6 34.5 37.2 38

Community and charityNumber of volunteering days Person-days worked on community projects or for registered

charities by Group employees 83 147 116Money raised for donations Value (£) of funds contributed by the company and its

employees to good causes 5,568 12,573 14,

Materials donated locally Value (£) of materials provided at no charge to community projects 19,878 23,757 23,

Business ExcellenceEFQM results Averaged score for Group from assessments of business

units against Business Excellence Model 287.0 317.5 351.3 343.7 425.1 422.3

Negative trend

Positive trend

No or little change/ new parameter

Cannot be coded as reflectsnature of business/tendersucccess

Our performance(continued)

Project2_Layout 1 03/01/2012 10:05 Page 3

2

Our structure

FIT FOR PURPOSE: We have restructured our Group to promote our two core business streams – the Term Servicesprovided by Ringway, and our Contracting & Production activities now trading under the Eurovia brand name.

2010 TREND COMMENTARY

65,020 !!!!!

262 !!!!!

53,212 !!!!!

8,175 !!!!! Yearly variations reflect the specifications chosen by clients; 2010 level is a function of the reduction in turnover.

0 !!!!! Disappointing take-up of low-carbon solution since 2009 launch.

16,807 !!!!!

31,720 !!!!!

190 !!!!! Highway authority budget cuts and financial uncertainty have hampered take-up despite widespread recognition of the range's value following successful trials.

New range being developed will boost performance, whole-life and low-carbon benefits further.

36,751 !!!!!

124.0 !!!!!

84,623 !!!!! The change is a function of the reduced number of employees in 2010.

14,656 !!!!!

1,986 !!!!!

38.6 !!!!!

116 !!!!! Reflects reduction in workforce, but under-reporting is the main factor. The figure is for head office staff only. Arrangements in place to improve record-keeping in divisions.

14,187 !!!!!

23,771 !!!!!

452.0 !!!!!

Previous years' figures have been re-calculated to correct anomalies in conversions from square metres to tonnes. Yearly variations reflect market conditions and other factors, as per sustainable products (see above).

Yearly variations reflect the specifications chosen by clients; 2010 level is a function of the reduction in turnover.

Reduction in scale of operations more than offset by impact of severe winter, resulting in increased gritting runs, lower fuel efficiency, and higher energy consumption in asphalt production. Switch to CO2e measure of all greenhouse gas emissions (with higher conversion factor for gas oil) also increased totals compared with 2007 and 2008. Accuracy of reporting continues to improve.

Reflects reduction in workforce, but under-reporting is the main factor. Arrangements in place to improve record-keeping in divisions. Excludes £2,432 donation to road safety charity Brake made after year-end. Overall level of contributions maintained despite loss of personnel and tough trading conditions. Community Committee is encouraging managers and employees at all levels to get involved in more activities in 2011.

Return to upward trend following first-time assessments of several business units in 2009 and ongoing programme of improvements across Group

Reporting procedures continued to improve in 2010

OBJECTIVE TARGET PROGRESSOur BusinessAchieve pre-tax profit – by 2013 5% Pressure on margins and turnover depressed performance during year but cost savings and new orders

left Group in strong commercial position at year-end Achieve return on capital employed – by 2013 15%Reduce days sales outstanding – by 2013 To < 55 days Target not achieved in 2010, but Group is on course to hit revised target of < 60 days due to fast closeIncrease Group average EFQM score (from 2009 baseline) by 2013 By > 10% 7% increase represents rapid progress. A higher target has been set for 2013 (see page 37)Maintain accreditation of The Way We Work management system and register new contracts and acquisitions to ISO 9001, ISO 14001 and OHSAS 18001 within 18 months

Our PeopleReduce lost-time incident frequency rate (LITFR) in 2010 To < 2.5Eliminate incidents notifiable under the Reporting of Injuries and Dangerous Diseases & Occurrences Regulations (RIDDOR) in 2010 Zero

Decrease voluntary labour turnover by 2013 To 15%Provide placements or employment across Group to disadvantaged persons in 2010 50% of units

Our EnvironmentIncrease the proportion of waste we divert from landfill – by 2012 To > 95% 92.3% achieved, representing good progress towards targetReduce the Group carbon footprint year on year (based on parent company Eurovia SA calculated Scope 1 & 2 performance for 2008) By 5%

Roll out carbon strategy by end 2010 All units Developed in 2010 and launched early 2011, the strategy is now being promoted internally and to clientsReduce fuel consumption of each business unit by 2013 By 10% Systems for recording and reporting fuel use are being reviewed and will be standardised

to provide more robust data Group-wide

Our CommunitiesIncrease total number of volunteering days in 2010 By 10% 21% decrease largely due to under-reporting in divisions.

Reduction in workforce lowered base level of volunteering. Renewed commitment to target in 2011Increase the value of money and support in kind raised for community and charitable causes across each business unit in 2010 By 10%Join the BITC CR index and achieve a high benchmark score for the Group by 2010 > 75%

36

CR targets Progress in 2010

Accreditation levels sustained and Group registration achieved, increasing consistency across business units as divisional certification integrated and transferred by BSI

All businessunits

Steady long-term decline in both indicators reversed for first time. Underlying factors analysed through asafety climate survey and divisional-level investigations. Each division setting priorities for action to returnrates to downward trend

This target was achieved with an initial 75% (Bronze) score for 2009, followed by strong improvement in 2010 to 83% and Silver status

4.5% increase in giving fell short of target due to tough trading conditions and reduction in personnel. Re-committed to target in 2011

Pressure on margins and turnover depressed performance during year but cost savings and new ordersleft Group in strong commercial position at year-end

Yearly comparisons distorted by end of major contracts and reduction in workload. Targets have been reformulated and revised targets set for 2010-2013 (see page 37)

Performance against this measure has not yet stabilised due to ongoing changes and improvements inreporting. Severe winter season and economic climate are also factors. LCSC facing up to challenge todeliver carbon reduction across business

35

OBJECTIVE TARGET WHYOur businessAchieve target pre-tax profit – by 2013 4% To sustain usiness development and growth, satisfy our shareholders, and Achieve target return on capital employed – by 2013 15%Reduce days sales outstanding – by 2013 To < 60 daysIncrease Group average EFQM score – by 2013 (from 2010 baseline) By 15% To improve the business continuouslyMaintain accreditation of The Way We Work management system and register (within 18 months) All business units To ensure we do small things consistently well, manage risks and seize opportunitiesnew contracts and acquisitions to ISO 19001, ISO 14001 AND OHSAS 18001 Combine EFQM assessments and compliance audits in an integrated programme By end 2011 To target internal auditing and to aid improvement action planningAssess the new social responsibility standard BS ISO 26000 and develop an implementation plan By end 2011 To ensure we follow best practice in corporate social responsibilityAssess EN 16001 and develop a proposal for the new energy management standard By end 2011 To ensure we follow best practice, reduce carbon footprint and energy use Improve reporting of environmental data During 2011 To maximise accuracy and verifiability, and inform stakeholders and regulators

Our peopleReduce lost-time incident frequency rate (LTIFR) in 2011 To < 2.5 To protect those we work with and around, and to reduce days lost through injuriesEliminate incidents notifiable under RIDDOR in 2011 ZeroDecrease voluntary labour turnover Year on year To increase productivity, job satisfaction and moraleProvide placements or employment to disadvantaged persons across the Group over the period In 50% of business units To reduce social exclusion, contribute to communities and local authorities’ strategiesProvide employment and training opportunities for young people through apprenticeships Sustain annual intake To invest in local communities, avoid skills shortages and develop our future workforce

Our environment Reduce the Group’s carbon footprint year on year By 5% To reduce impact on the environment and to build a low-carbon business(based on Scope 1 & 2 performance as calculated for 2011)Implement Group’s Carbon Strategy By end 2011 To minimise contribution to climate change and build a low-carbon businessReduce fuel consumption of each business unit by 2013 By 15% To reduce energy use and environmental impact and maximise energy efficiencyIncrease the proportion of waste diverted from landfill – by 2012 To > 95% To reduce waste of natural resourcesReduce the number of environmental incidents in 2011 from 2010 level By 30% To protect the environment and minimise the impacts of our operationsEliminate environmental incidents resulting in prohibition notices or prosecution ZeroDevelop a water use monitoring system and water footprint baseline for 2011 By 2012 To conserve an increasingly scarce resource

Our communitiesIncrease the total number of volunteering person-days in 2011 By 10%Increase value of money and support in kind raised for community and charitable causes in 2011 By 10%Maintain the Group’s benchmark score and Silver status in BITC’s CR Index To 2013 To drive improvement in how we measure CR activities and performance

37

Objectives & targets 2011 - 2013

To protect those we work with and around, and to reduce days lost through injuries

To sustain business development and growth, satisfy shareholders, and maintain a robust, sustainable approach to fiscal management

To boost the contribution we make to communities and enhance employees’ jobsatisfaction, skills and team-building through creative partnerships

To protect the environment and minimise the impact of operations

Eurovia Group UKAlbion HouseSpringfield Road, HorshamWest Sussex RH12 2RWwww.ringway.co.ukFeedback to: Tracey Elms, Group Marketing and PR Manager. E: Tracey.Elms@Eurovia.co.uk

Printed on 9lives paper – 80% post-consumer recycled fibre; 20% totallychlorine-free pulp, sourced from well-managed forests and controlled sources,manufactured by ISO 14001-certified mill.Report produced by Silke & Co: www.silke.co.ukDesign by Tom Thompson Design: www.tomthompsondesign.co.uk

2010 ReportCorporate Responsibility

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