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Investor Presentaiton

Historical financial performance Tideway published its first annual report in July 2016 and half-year results to September 2016 were published in December 2016. Costs Tideway capitalises costs for assets under construction and revenue is reported as deferred income during the construction phase. At 30 September 2016, costs of £325.0m were capitalised within the asset under construction on the statement of financial position. This represents £163.8m of costs during the period and £161.2m for the prior period to 31 March 2016. • • • - - Main works costs Main works costs are split between the three regional contracts West, Central and East for the design and construction of the main tunnel, the system integrator contract and the Volker Stevin marine contract. The costs incurred in the period include contractors' staff, design, consents and preliminary costs to support mobilisation, site preparation activities at key sites across the project and also to support the "Right Start" readiness programme. Other direct costs Third party costs for the management, monitoring and mitigation of the impact of construction on third parties and safety training costs. Indirect costs The largest indirect costs are resource costs of £29.9m; other indirect costs include information systems, premises and insurance. Excluded costs Excluded costs to 30 September 2016 are £17.1m which largely reflects financing costs. Analysis of costs and cash outflows Costs £m Timing difference £m Cash outflows £m 104.1 (3.6) 100.5 42.6 1.2 43.8 Direct costs Indirect costs Total allowable costs 146.7 (2.4) 144.3 Total excluded costs 17.1 14.7 31.8 Total 163.8 12.3 176.1 Cum as of 31/03/16 161.2 Total 325.0 Allowable costs £m Main works costs 100.9 Other direct costs 3.2 Direct costs 104.1 Resources 29.9 Other indirect costs 12.7 Indirect costs Total 42.6 146.7 16
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