united-utilities-annual-report-2015

UNITED UTILITIES GROUP PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2015Stock Code: UU.unitedutilities.comREASONS TO INVEST• We have a clear vision to be a leading North West service provider and oneof the best UK water and wastewater companies• Our management team has extensive commercial, operational andregulatory experience• Our wholesale revenue and asset base is linked to RPI inflation• Clarity on allowed returns through to 2020• We’ve made significant improvements in customer service and operationalperformance, with more to come• Externally recognised responsible business credentials• We’re delivering customer and environmental benefits through substantialcapital investment, which drives long-term growth in the regulatory capital value• Track record of regulatory outperformance; exceeded our 2010–15 targets• We have a robust capital structure: stable A3 credit rating• Our sustainable dividend policy targets a growth rate of at least RPIinflation per annum to at least 2020• Total dividend per share of 37.70 pence for 2014/15Integrated reportThis annual report has been prepared in accordance with the principlesset out in the International Framework published by the InternationalIntegrated Reporting Council in December 2013.ONLINE ANNUAL REPORThelping life flow smoothlyImportant informationOur annual report is available online at:corporate.unitedutilities.comCautionary statement:The Annual Report and Financial Statements (the Annual Report) contains certain forward-looking statements withrespect to the operations, performance and financial condition of the group. By their nature, these statements involveuncertainty since future events and circumstances can cause results and developments to differ materially from thoseanticipated. The forward-looking statements reflect knowledge and information available at the date of preparation ofthis Annual Report and the company undertakes no obligation to update these forward-looking statements. Nothing inthis Annual Report should be construed as a profit forecast. Certain regulatory performance data contained in this AnnualReport is subject to regulatory audit.Terms used in this report:Unless expressly stated otherwise, the ‘group’, ‘United Utilities’ , ‘UU’ or ‘the company’ means United Utilities Group PLCand its subsidiary undertakings; the ‘regulated business’, ‘regulated activities’ or ‘UUW’ means the licensed water andwastewater activities undertaken by United Utilities Water Limited (formerly United Utilities Water PLC) in the NorthWest of England.Strategic reportUnited Utilities at a glanceOppositeReasons to invest 01Our highlights 2014/15 02Chairman’s and Chief ExecutiveOfficer’s statement 06Our vision and strategy 10How we create value 14Our responsible approach to doingbusiness 20Our operating environment 22Key achievements 2010–15 30Our key performance indicators2010–15 32Our performance 2014/15 34Our plans for 2015–20 46Our key performance indicators2015–20 50Principal risks and uncertainties 52GovernanceCorporate governance report 56Board of directors 58Letter from the Chairman 60Nomination committee report 68Audit committee report 76Corporate responsibility report 82Remuneration committee report 84Directors’ report 104Statement of directors’responsibilities 111Financial statementsIndependent auditor’s report 114Consolidated income statement 118Consolidated statement ofcomprehensive income 119Consolidated and companystatements of financial position 120Consolidated statement ofchanges in equity 121Company statement of changesin equity 122Consolidated and companystatements of cash flows 123Accounting policies 124Notes to the financial statements 127Shareholder informationShareholder information 164Look out for these iconsRead more online atcorporate.unitedutilities.comRead more information inStrategic ReportRead more information inGovernanceRead more information inFinancial StatementsRead more information inShareholder InformationSHAREHOLDER INFORMATION FINANCIAL STATEMENTS GOVERNANCE STRATEGIC REPORT01