International Conference of Road Safety at Work February 16 – 18, 2009

1. International Conference of Road Safety at WorkFebruary 16 – 18, 2009 • Sustaining Safety in Hard Times / Times of Recession • Paul Gallemore • European Head of HSEQ

2. Contents • Introduction to Wolseley • Building an Effective Business Case for Fleet Safety • Engaging key Internal and External stakeholders • Identifying the “Biggest Bang for your Buck” • Our Fleet Safety Journey • The Sustainable Benefits • Highlighting Success and Continuous Improvement

3. Wolseley – Some Facts & Figures Operations in 30 countries Over 5,300 branches worldwide 70,000 Employees £16.9 billion of sales 22,500 Vehicles (Cars and Trucks) At least 25,000 Drivers At least 5,000 Collisions (3rd Party)

4. Legal Building an Effective Business Case Moral Financial Duty of Care

5. Insurance Costs £1 Uninsured Costs £8 - £36 Source: Health and Safety Executive - HS(G) 96 - The Cost of Accidents at Work Building an Effective Business Case • Collisions, Injuries, Ill health, damage etc. • Lost time • Extra wages, overtime payments • Damage to products, plant, buildings, tools, vehicles, equipment • Sick Pay • Fines • Loss of contracts or customers • Legal costs • Site clean up costs • Management investigation time • Excess on any claims • Loss of business reputation

6. Building and Effective Business Case Example - Wolseley UK Collisions (05/06)

7. Engaging Key Stakeholders Integration Safety is always one of our top priorities Business Risk We actively look for problems and work on reducing risks Increasing Effectiveness Compliant We have systems in place to manage most risks Reactive Safety is important, we do a lot every time we have an accident Increasing trust and Accountability Ignorance Who cares as long as we don’t get caught

8. Engaging Key Stakeholders Focused Fleet Safety Steering Group, including participants from: • Health safety and environment • Transport fleet • Car fleet • HR • Training • Branch & Operations Manager’s • External: Insurance broker (Willis), Insurer (Zurich), Risk management advisors (IDS), Fleet suppliers (GE) and Accident management (FMG) Quarterly meetings with sub-groups to focus on fleet safety programmes

9. Identifying the Biggest Bang for Your Buck

10. Identifying the Biggest Bang for Your Buck

11. Our Fleet Safety Journey Driver Focus Groups and Driver of the Year Benchmarking with Other Organisations Fleet Safety Audit Gap Analysis On-line Driver Assessment and Training Random Drug and Alcohol Screening Appointed Fleet Safety Champion Separate Car and Commercial Focus Groups Established Fleet Safety Steering Group Driver Pledge, Policy, Risk Assessment Post Collision Investigation Calls Identified the Moral, Legal and Financial Case Launched Fleet Safety Policy & Handbooks Focus on Grey Fleet Drivers Developed Fleet Safety Action Plan Quarterly Driver Newsletter Launched 04/05 05/06 06/07 0708 08/09

12. Our Fleet Safety Journey Post Incident Calls • Instigated where a Company Car collision has resulted in: • an injury to a 3rd party • personal injury to an employee • caused over £1,000 of damage • Carried out by ex-police trainers • Conversation highlights key “risk” factors leading up to the collision • Helps to Identify the root cause of the collision and any further training requirements

13. Our Fleet Safety Journey

14. Our Fleet Safety Journey • Monthly Essential Safety Theme to all WUK locations focusing on ‘Fleet Safety’ • Fleet Safety Seminars hosted by IDS • Road Safety Training in Local Schools • Tyre & windscreen checks at Head Offices • Alcohol Awareness Workshop run by Zurich • Reverse parking only and “Dress Down” day at Head Offices – all proceeds in aid of Brake • FSSG meeting held during the week • D.C’s and branches promoted road safety with campaigns targeted at their local communities • Brake’s petition lobbying for 20mph zones around schools and homes signed by employees and students attending workshops • Online driver assessment reminders sent • Press releases in trade and local press

15. The Sustainable BenefitsFocus on Safe and Fuel Efficient Driving • Reduced fuel consumption by 1,000 litres per year will: • save an operator £700 a year (assuming a price of 70 pence per litre, excluding Taxes) • save 2.6 tonnes of carbon dioxide emissions a year • The Benefits of SAFED • Fuel Efficiency - Using fuel more efficiently means: • lower costs • improved profit margins • reduced emissions • improved environmental performance • Safer Driving / Safer driving means: • less injuries and fatalities on our roads • less accident damage to vehicles • less unproductive downtime for vehicle repair • reduced insurance premiums For more information see UK DOT Good Practice Guide 2100

16. Highlighting Success • The key benefits for focusing upon Fleet Safety • Significant Cost Savings • Efficiency Improvements • Better customer service • Fewer Injuries, Collisions and lost workdays • Lower claims, Lower administration costs, Lower insurance premiums • Improved Performance Management • Consistent & Timely External/Internal Reporting • Improved Internal Operational Control • Brand Enhancement / Protection • Achieve Operational Excellence • Improved Compliance with Legal and Reporting standards

17. Highlighting Success

18. Highlighting Success • Year on year reduction in injury (35%) and Collision rates (45%) since 2004 • 1,000 collisions avoided in 07/08, equal to £1.5 million of direct costs and significantly more indirect costs avoided • Occupational H & S and Fleet Safety programme has received national and international recognition

19. Next Steps • Car Policy Review & Handbook Update • Focus on Grey Fleet • Post Collision Investigation Call • Internal Audit on Car Fleet Department • External Zurich Audit • Safe Driver of the Year 2009 • National Road Safety Week 2009 • Further Benchmarking via working parties and DfBB • Separate Car & Commercial Focus Groups

20. Thank You • For more information, contact: • paul.gallemore@wolseley.co.uk • 01926 705622 • harnam.singhnijjar@wolseley.co.uk • 01926 705320 • Or visit www.wolseley.co.uk