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Highlights and approach

2006 Headlines

• We have made significant improvements in safety since 2002, whilst experiencing considerable growth

Accident Frequency Rate

• We measure our accident frequency (AFR) rate to judge our progress, ie number of reportable injuries per 100,000 hours worked
• Overall our 2006 AFR stands at 0.25, a 24% improvement on 2005

Since 2002

• Overall AFR is down 58%, employee numbers up 92%.
• All operating companies AFR down 41%, employee numbers up 24%.
• UK operating companies AFR down 40%, employee numbers up 31%.
• US operating companies AFR down 67%, employee numbers down 3%
• Significant joint ventures AFR up 11%, employee numbers up 642%
• Our UK performance is ahead of the HSE’s Revitalising Health & Safety targeted 5% year on year.

Fatalities

• We were greatly saddened by eight fatalities: three in the US and one in Australia in our wholly-owned operations, and four that occurred in our minority joint venture business in Dubai.

Safety Management Audit

• All UK businesses, with the exception of Hall & Tawse, a part of Mansell, and new acquisitions, are now certified to the internationally recognised safety management standard OHSAS 18001.
• Outside the UK, OHSAS 18001 certification has been achieved in Hong Kong, Germany, Malaysia, Italy and Sweden.

Safety - Our Approach

We aim for zero accidents and injuries.

Preventing injury and ill-health, and maintaining a first class safety and health culture are key objectives of our business. Caring for the safety, health and well-being of our employees and everyone affected by our activities is of critical importance to us.

We have a Group Health and Safety Policy, and detailed Expectations for Managing Health and Safety across the Group.

We take a structured, risk-based approach to managing health and safety and have clear Group requirements, long term objectives and strategies to achieve these by 2010.

Each operating company has well established safety management systems and strives continuously to improve health and safety performance. We share good practice across operating companies, and where appropriate establish common policies and procedures.

To provide additional assurance and an independent view on our safety management, our operating companies are increasingly certified to OHSAS 18001, awarded by DNV after independent audit.

In 2005, we set long term objectives for our operating companies, and established our Groupwide strategy and priorities.

Objectives

• Zero fatalities each year
• Zero permanently disabling injuries each year
• Accident free, with a ceiling on AFR in each business of 0.2 by end 2010.