Network Rail Infrastructure Limited Interim Results 200607 1

Contents • The half-year in review: – safety – performance – savings – investment

Safety • Rail has overtaken air as the safest form of transport • SPAD

Safety – rail is now the safest form of transport Fatality risk (as a

SPAD risk (signals passed at danger) SPAD risk has seen a 90% reduction since

Broken rails – at record low levels Number of broken rails in the first

Performance • Continued improvement in punctuality – Best train punctuality for seven years: •

Performance PPM – calendar year to date Best October for eight years PPM average

Performance 100% ¢ PPM now at seven year high Current MAA is 2. 4

Performance Train delays reduced by 29% for the half-year over the past four years

Savings • Operating and maintenance costs continue to be reduced and significant efficiencies made

Savings – this graph illustrates the savings made over the past 2½ years Pre-efficiency

Investment • Continued high levels of investment and work volumes • £ 1. 5

Investment – enhancements Over £ 600 million to be spent this year on enhancing

Financial highlights 1 April to 30 September 2006 (£m) 2005 (£m) Revenue 2, 884

The challenges ahead • Deliver for customers – meeting passenger and freight users expectations

Moving into profit Actual Forecast Average profit over period £ 210 m

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Network Rail Infrastructure Limited Interim Results 2006/07 1 April – 30 September 2006 27 November 2006

Contents • The half-year in review: – safety – performance – savings – investment • Financial highlights • Challenges ahead

Safety • Rail has overtaken air as the safest form of transport • SPAD risk has reduced by 90% since 2001 • Broken rails reduced to another record low

Safety – rail is now the safest form of transport Fatality risk (as a multiple of rail) Per passenger km Source: RSSB

SPAD risk (signals passed at danger) SPAD risk has seen a 90% reduction since 2001 Mar 01 Source: RSSB Mar 02 Mar 03 Mar 04 Mar 05 Mar 06

Broken rails – at record low levels Number of broken rails in the first half of each year since 1999 256 178 152 105 85 79 Target 59 performance 40

Performance • Continued improvement in punctuality – Best train punctuality for seven years: • 89. 5% of trains ran on time over the half-year • Network Rail has reduced its delay minutes for the half-year over the past four years by 29% • Moving annual average (MAA) now at 88. 1% • Predicting 90% MAA a year earlier than previously forecast – now forecast during 2007/8

Performance PPM – calendar year to date Best October for eight years PPM average over the halfyear: 89. 5%

Performance 100% ¢ PPM now at seven year high Current MAA is 2. 4 points higher than this time last year 95% 90% PPM Punctuality ¢ Pre-Hatfield MAA P 7 ’ 00/01 – 86. 1% Network Rail took over – MAA at 78. 6% 85% 80% Current MAA 88. 1 75% 70% 65% 60% 55% 00/01 01/02 02/03 Period Result 03/04 04/05 MAA 05/06 06/07

Performance Train delays reduced by 29% for the half-year over the past four years million minutes 6. 26 5. 46 4. 77 4. 47

Savings • Operating and maintenance costs continue to be reduced and significant efficiencies made – over £ 1. 1 bn taken out of the cost of running the railway in the past 2½ years – equivalent to 25% efficiency saving • On course to deliver ORR target of 31% by 2008/9

Savings – this graph illustrates the savings made over the past 2½ years Pre-efficiency Actual £ millions Total saving of £ 1. 1 bn £ 546 m saving £ 558 m saving

Investment • Continued high levels of investment and work volumes • £ 1. 5 bn invested in renewals and enhancements in the half-year • Over £ 600 million to be spent this financial year on enhancements

Investment – enhancements Over £ 600 million to be spent this year on enhancing the railway – some examples Scotland & Wales schemes: • Edinburgh Waverley • Airdrie to Bathgate • Platform extensions Small / medium 3 rd party schemes: • New stations – Liverpool Parkway • Station improvements – Salford, St Helens, Wembley • Projects for 2012 Safety schemes: • Level crossing improvements • SPAD mitigation work • Handrails and non-slip surfaces • Thameslink scheme development • Final parts of the Southern power upgrade Improving station access for the disabled Continuing West Coast improvements King’s Cross station improvements Small / medium schemes: • New depot at Bristol • New platforms at Marylebone & Bristol • New station entrances at Streatham Common & West Malling • Platform extension at Beckenham Junc

Financial highlights 1 April to 30 September 2006 (£m) 2005 (£m) Revenue 2, 884 1, 900 Capital expenditure 1, 480 1, 388 Operating profit 1, 199 263 Fixed assets (railway network) 27, 234 24, 564 Net debt 17, 929 16, 750 (510) (466) Profit (loss) before tax 747 (108) Profit (loss) after tax 523 (109) Net interest payable

The challenges ahead • Deliver for customers – meeting passenger and freight users expectations • Grow the railway – almost £ 2. 5 bn to be spent on enhancement schemes over the next 2½ years – move ahead with route utilisation strategies - two completed, three out in consultation, six underway, eight to start – big schemes to deliver: • West Coast (Trent Valley, Rugby, Nuneaton) • Thameslink upgrade • Drive for even better safety and train performance • Continue huge renewals programme • Continue the drive for savings and value

Network Rail Infrastructure Limited Interim Results 2006/07 1 April – 30 September 2006 27 November 2006

Moving into profit Actual Forecast Average profit over period £ 210 m