Network Rail Infrastructure Limited Preliminary Results 200607 24

Network Rail Infrastructure Limited Preliminary Results 2006/07 24 May 2007

Overview ¢ Financial highlights – ¢ ¢ Investment – Profits turned into investment – £ 3. 3 bn capital expenditure in the year Safety – ¢ Record £ 1 bn profit Safest form of transport Performance – 88. 1% trains on time over the past year

Safety

Safety ¢ Despite Grayrigg, the railway remains the safest form of transport in the UK: – Broken rails at record low, 40% down on last year – 91% reduction in risk from trains passing red lights (2007 compared to 2001) – Zero workforce fatalities in the year – first time since records began – Lowest levels of misuse at level crossings for 10 years

SPAD risk (Signals passed at danger) 120. 00% 500 450 100. 00% 334 400 350 80. 00% SPAD risk as percentage of benchmark 300 250 Number 60. 00% 200 of 40. 00% 150 SPADs 9% 20. 00% 100 50 0. 00% 0 2001 2002 2003 2004 2005 % of Benchmark ¢ 2006 2007 Total SPADS SPAD risk has seen a 91% reduction since 2001 Source: RSSB

Safety today ¢ Rail ¢ Air – ¢ Bus/coach – ¢ 1. 5 times the risk 1. 8 times the risk Car – 15 times the risk Source: RSSB

Investment

Investment 3. 3 bn 3. 5 Investment (billions) 3 2. 5 Threefold increase in investment over the past 10 years 2 1. 5 1 1 bn 0. 5 0 96/97 06/07

Work Volumes ¢ Huge volumes of work to rebuild the railway ¢ Well over double the rate of just seven years ago 366% increase in switches and crossings: 476 units replaced vs 130 seven years ago 212% increase in ballast: 528 miles renewed vs 249 200% increase in rail laid: 639 miles vs 321 miles

Performance

Performance ¢ Substantial punctuality improvement ¢ 88. 1% of trains on time for the year ¢ Highest level for seven and a half years (since October 1999) ¢ Network Rail’s stakeholders and customers also recognise our achievements, for example: – ORR Chief Executive Bill Emery said in February (Q 3 Network Rail monitor): “Network Rail has achieved very significant reductions both in infrastructure failures and in levels of delay in the last three years. ”

National performance PPM Punctuality 100% 95% Pre-Hatfield MAA P 7 ’ 00/01 – 86. 1% 90% Network Rail took over – MAA at 78. 6% 85% 80% Current MAA 88. 1 75% 70% 65% 60% 55% 2000/2001/2002/2003/2004 Period Result ¢ 2004/2005/2006 MAA = 88. 1 (1. 7 points higher than this time last year) 2006/2007

Performance - over 20% increase in train services since privatisation Now almost 20, 000 trains per day At privatisation just over 16, 000 trains per day

Performance - PPM financial year Percentage of trains on tine 88. 1% average PPM for the year

Performance (Network Rail delay minutes) Last year of Railtrack First year of Network Rail Target performance

Performance - Delay minutes (millions) Infrastructure caused delays 12 10. 5 m 10 2. 1 m 8 8. 4 m infrastructure delays down by 8% External factors (eg. cable theft) 10. 5 m 2. 8 m 7. 7 m 6 4 2 0 05/06 06/07

Financial Highlights

Financial highlights 2006/07 £m 2005/06 £m 5, 795 3, 837 Opex (excluding depreciation) (2, 462) (2, 431) Depreciation (1, 055) (938) 2, 278 468 102 78 Net interest payable (902) (778) Tax (443) (21) Profit / (loss) after tax 1, 035 (253) Turnover Operating profit Property sale profits / revaluation Nebt debt increased marginally from £ 18. 2 bn to £ 18. 4 bn

Revenue – access charges and grants ORR original determination of revenue for CP 3 5. 3 bn £ millions 5. 1 bn 3. 5 bn 5. 4 bn Impact of deferral – actual revenue during CP 3 5. 5 bn 5. 2 bn 5. 6 bn 5. 2 bn

Savings ¢ Costs continue to be reduced and significant efficiencies made – – – 24% efficiency savings made over past three years A £ 1. 3 bn saving in the costs of running the railway On course to meet the ORR target of 31% by ’ 09

Profits into investment ewal ail n e r track Merseyr w e N on e m e sch New park 358 spa c at C ove e car ntry ins as a r t oal twice c bo ed – star m u J oduc Euro intr as a g lon New rail bridge in Hartlepool New platform at Bristol Parkway New footbridge at Codsall, nr Wolverhampton Refurbishment of Leven Viaduct, Cumbria

Summary § Railway remains the safest form of transport in UK § Punctuality at highest level for almost eight years § Profits are being reinvested in the railway § Doubling average yearly spend on enhancements over next two years § Detailed plans for 2009 -2014 will be published in the autumn

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